© Copyright Citibank, N.A. 2017

Treasury and Trade Solutions | Treasury Advisory Group

Uncertainty…And Opportunity

Top Treasury Priorities for 2017

Webinar | 14 February 2017

Treasury and Trade Solutions | Treasury Advisory Group

Speakers Jason Batman

Managing Director, Asia Pacific Product Sales Head, Treasury and Trade Solutions, Citi Email: jason.batman@citi.com

Tel: +852 3419 8737

Jason Batman is the Regional head of Product Sales at Treasury and Trade Solutions, based in Hong Kong. Previously, he

was the Sector Head for large multi-national corporate clients within the Industrials, Energy, Power & Chemicals sector. Prior

to joining the regional sales team, he was an experienced senior member of the cash sales team supporting multinationals

and top tier local corporate customers in Australia.

Jason has over 25 years of banking experience and has been with Citi for the last 20 years. Jason has been a multiple

winner of Citi’s prestigious Global Chairman’s Club award, and winner of Cash management deal of the year in 2009 and

2010.

Ron Chakravarti

Managing Director, Global Head, Treasury Advisory and Market Management,

Treasury and Trade Solutions, Citi Email: ron.chakravarti@citi.com

Tel: +1 212 816 6909

Based in New York, Ron leads a global team responsible for delivering treasury advisory and designing best practice

solutions for Citi’s Treasury and Trade Solution’s corporate and institutional clients. His prior experience includes positions in

treasury consultancy, transaction banking product management, and corporate banking based in Asia, Europe, and the US.

Andrea Vanara

Director, Head, Asia Treasury Advisory, Treasury and Trade Solutions, Citi Email: andrea.vanara@citi.com

Tel: +65 6657 3282

Based in Singapore, Andrea is responsible for leading the delivery of advisory to Citi’s Asia Pacific clients in the areas of

treasury operations, working capital management, risk mitigation, and treasury technology. He joined Citi in July 2015 with

extensive corporate treasury experience managing financing, liquidity, cash management, FX, interest rate and commodity

risk management, bank relations, and asset/liability management. Prior to joining Citi he was most recently at Fiat Chrysler

Automobiles (FCA Group).

1

Citi Treasury Diagnostics

Built on Six Aspects of Treasury Operations

Liquidity

Management

Working Capital

Management

Risk

Management

Subsidiary Funding

and Repatriation

Policy and

Governance

Systems and

Technology

Identify Where You Stand Relative to Peers—Learn What Counts as Best in Class

Benchmarks Benchmarks Relative Performance Detail

Performance Risk Management +/-

4.33.6

3.6

2.4

2.4 4.9

2.6

1.0

1.7

My Score

Peer Group

Universe 3.0

2.9 4.33.6

3.6

2.4

2.4 4.9

2.6

1.0

1.7

My Score

Peer Group

Universe 3.0

2.9 4.33.6

3.6

2.4

2.4 4.9

2.6

1.0

1.7

My Score

Peer Group

Universe 3.0

2.9 4.33.6

3.6

2.4

2.4 4.9

2.6

1.0

1.7

My Score

Peer Group

Universe 3.0

2.9 4.33.6

3.6

2.4

2.4 4.9

2.6

1.0

1.7

My Score

Peer Group

Universe 3.0

2.9 4.33.6

3.6

2.4

2.4 4.9

2.6

1.0

1.7

My Score

Peer Group

Universe 3.0

2.9 4.33.6

3.6

2.4

2.4 4.9

2.6

1.0

1.7

My Score

Peer Group

Universe 3.0

2.9 4.33.6

3.6

2.4

2.4 4.9

2.6

1.0

1.7

My Score

Peer Group

Universe 3.0

2.9

My Relative Performance

Process Area Against Peer Group Against Universe

Liquidity/funding risk Worse Worse

Interest rate risk Worse Worse

Foreign Exchange

(Transactional) Better Better

Among the key sources for this analysis are insights gleaned from our global treasury benchmarking platform for

clients, Citi Treasury Diagnostics.

2

Winner, Celent

Model Bank Award

2017 Drivers and Priorities

2017 Drivers and Priorities

Improving

growth and

business

sentiment…

…but

Geopolitical

Uncertainty

…and Shifts

in Policies,

Financial

Markets

…leave

Potential for

Surprises

1.

Adapt to Tax

Impacts

2.

Evolve Risk

Management

Approaches

3.

Recalibrate

Liquidity

Planning

4.

Build

Financial

Flexibility

5.

Transform

Technology

Culture

Unprecedented Change… …New

Opportunities and Vulnerabilities

Treasury Priorities

Market Drivers

3 2017 Drivers and Priorities

Drivers

Improving Growth Market Volatility

Policy Shifts Downside Risks

Source: Citi Investment Research and Analysis, January 2017

↓ Anti-establishment political

movements

↓ International tensions and

potential trade wars

↓ Cyber threat vulnerability

Monetary

Conditions

Fiscal

Stance

Gradual Tightening:

Impact on financial health?

On Path to Loosening:

Impact of tax reforms?

Market Volatility

Source: Bloomberg

Nov’16: US Elections Perceived risk

of EM

remains high

after elections

Jun’16: UK

Referendum (Brexit)

China

Euro Area EM AE

Source: Citi Investment Research and Analysis, January 2017

U.S. LHS:

RHS:

4 2017 Drivers and Priorities

Priorities

Priority 1: Adapt to Tax Impacts

Current and anticipated changes in global tax landscape impact physical and

financial supply chains of MNCs

Are you preparing for end-to-end impacts of changes?

Review

subsidiary

funding

practices

Ensure

adequacy of

Treasury tax

compliance

processes

Plan for

longer term

impacts of US

tax reform

Understand

Trading Model

impacts for

treasury

Reassess

Treasury

structures,

processes

Image sourced from Microsoft Office Clip Art

5 Priorities

Priority 2: Evolve Risk Management Approaches

Events could drive large swings in financial markets, including currencies,

with unintended disruption to corporate earnings

Do you have a well-designed, integrated risk framework in place?

Reallocate

resources by

risk-based

measures

Operationalize

non-impactful

risks

Consider

“risk” of undue

conservatism

Reassess risk

management

policies

Invest in

infrastructure:

measurement,

management

Image sourced from Microsoft Office Clip Art

6 Priorities

Priority 3: Recalibrate Liquidity Planning

Non-discretionary environmental impacts could materially change liquidity

profiles: quantity, currencies, sources and uses, and carrying costs

Are you identifying consequential outcomes…individually and cumulatively?

Stress-test

liquidity plans

under

cumulative

impacts

Continue re-engineering

liquidity structures for adequacy

Review funding

sources and mix

Scenario plan

for sovereign

moves in

trade, capital

controls

Image sourced from Microsoft Office Clip Art

7 Priorities

Priority 4: Build Financial Flexibility

Equity investors again place a premium on financial strength and flexibility

Are you optimizing your balance sheet to support efficiency and growth?

Deploy W/C financing

strategies in support of

growth

Create transparency of W/C costs to businesses

Review capital

structure strategies

Assess sustainability of subsidiary

funding strategies

Take ownership of business W/C optimization

Image sourced from Microsoft Office Clip Art

8 Priorities

Priority 5: Transform Technology Culture

Technology is driving innovation and disruption: from corporate business

models to treasury and finance operations

Is your treasury technology innovation and adoption keeping pace?

Invest in

technology

for evolving

financial

supply chain

Consider

implications

of FinTech in

financial

services

Ensure

vigilance and

playbook for

Cyber

Threats

Partner with

Business and

Tax to assess

infrastructure

needs

Identify gaps

in treasury

technology

topology

Image sourced from Microsoft Office Clip Art

9 Priorities

Conclusion: Dynamic Reprioritization

Improving

growth and

business

sentiment…

…but

Geopolitical

Uncertainty

…and Shifts

in Policies,

Financial

Markets

…leave

Potential for

Surprises

1.

Adapt to Tax

Impacts

2.

Evolve Risk

Management

Approaches

3.

Recalibrate

Liquidity

Planning

4.

Build

Financial

Flexibility

5.

Transform

Technology

Culture

Unprecedented Change… …New

Opportunities and Vulnerabilities

Treasury Priorities: Dynamic Reprioritization

Market Drivers

10 Priorities

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