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

16 TREASURY POLICY: LEVEL OF CENTRALIZATION Treasury Policy Review Frequency KPIs used to measure/monitor Treasury performance Don’t use KPIs At least annually and during significant market movement or an M&A transaction At least annually Less frequently than once per year 68% 32% 19% 49% Less frequently than once per year At least annually and during significant market movement or an M&A transaction 78% 22% 73% 27% At least annually 88% 12% 90% of companies have Centralized Policies with 51% also reporting either central and regional treasury execution of those policies. 49% of those surveyed exhibit local execution of policy. 77% of companies exhibiting Centralized Policy creation and either central or regional execution utilize KPI to measure and manage performance. Only 66% of those with decentralized policies utilize KPI to manage performance. 68% now review treasury policy at least annually and/or during market movement. Those that do, correlate well with utilization of KPI. Centralization of Policies and Execution KPIs used to measure/monitor Treasury performance Don’t use KPIs Centralized policies; Central execution Centralized policies; Regional execution Centralized policies; Local execution Decentralized policies; Local execution 23% 23% 24% 34% Centralized policies; Central execution Centralized policies; Regional execution Centralized policies; Local execution Decentralized policies; Local execution 10% 45% 6% 39% 90% 77% 77% 76% 66%