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

8 There is broad client interest in “all things digital” in treasury and finance, including automation, emerging technologies, and data- led insights. However, as this study will show, we should not lose sight that many companies still need to progress fundamentals in Treasury and their broader Finance organization. Depending on factors such as treasury maturity, legacy infrastructure, appetite to automate and aspirations for the role in which treasury will play, new playbooks for treasury are emerging. We introduce the Citi Digital Treasury Index for companies based on our Citi Treasury Diagnostics responses to provide tangible guidance to help clients in their journey to digitalization. Offering playbooks for treasury, dependant on current treasury maturity level and future digital aspirations. • Playbook One: Best Practices Treasury: Strengthening Fundamentals. At many companies, shoring up fundamentals remains the core focus for Treasury — advancing the centralization journey, becoming more effective at managing cash and risk, and extracting operational and financial efficiency. — Moving from people-dependent processes and dispersed accountability to centralized remit, process-based function, and core automation deployed. KEY FINDINGS AND INSIGHTS (cont.) Chapter 3: Emerging Playbooks for Treasury • Playbook Two: Digitalizing Treasury: Advancing Data & Digitalization. Companies that are advancing the data and digitalization journey tend to be those that have already meaningfully progressed on fundamentals, as that helps provide opportunity, internal credibility, and funding. — Building data and talent core, further digitalizing processes, transitioning to utilizing data insights to augment decision-making. • Playbook Three: Growth Enabling Treasury: Value-Added Business Partnership. Those seeking to better understand their future digital destination for Treasury and the transition journey; Shift in focus from measuring the past to deduce/infer what is most likely to happen in the future. — Prediction of future outcomes enabling provision of business insights to support growth and creation of value.