Balancing Digital Aspirations While Addressing Risk Management Fundamentals: Observations From Citi Treasury Diagnostics

41 TECHNOLOGY FUNDAMENTALS: USAGE OF TREASURY PLATFORMS 62% 24% 14% 10% Despite 68% of respondents reporting using a TMS/ERP treasury module, more than half report that their enabling technology does not support financial risk management or cash forecasting. 19% of those surveyed do not have an ERP. Only 36% report TMS accessed from all locations. SizeMatters: While 90%of companies with revenues greater than 25bnUSD have deployed TreasuryManagement Systems, 62%of those under 2bn in size have not. TMS Usage ERP Consolidation System Access TMS No TMS Single Instance ERP Multiple ERP System GL at Business Unit Accessed by all locations Accessed by central corporate treasury and main RTC Accessed by central corporate treasury only 19% 81% 31% 68% 48% 36% 32% 33% 33% Processes Supported by TMS or ERP Treasury Module 84% Cash operations/ liquidity management Short term borrowing/ financing Cash forecasting/ planning Bank relationship management 76% 71% 56% 62% 70% Treasury controls and accounting Investing Supplier payments Financial risk management Trade/bank guarantee issuance 31% 35% 49% 20% Intercompany loan admin/ in-house banking TreasuryManagement SystemUsage by Company Size TMS No TMS Less than $2 billion $2 — 10 billion $10 — 25 billion Greater than $25 billion 38% 76% 86% 90%