Regional Presentation Norbert Neu Chair

Agenda 1.How have we done since 2010? 2.Where do we go from here?

Strategy Strategic Review

Strategic Plan Help members grow their business - organic growth Increase international referrals Improve members’ benefits - the reasons for joining and staying Implementation Update consists of: Underpinning Themes - The Bench Mark Questions

Strategy plan consists of:  Mission Statement  Vision Statement  7 Strategic Objectives  49 Tasks  Mainly delivered

Nexia facts Financial performance US$2.1 US$2.3 US$2.8 US$2.9 4% increase US dollars (billion) 21% increase 9.5% increase 2% increase

Audit Committee Output (1) Appointment of Audit Director (Mohammed Yaqoob) NIMo – the enhanced version of NIMo launched 2012 Mentoring Scheme

Audit Committee Output (2) Online 2013 annual audit, tax and PII survey

Audit Committee Output (3) QCRs: – on-going cycle of FSRs every 3 years and LSRs every 6 years – advance and pre-admittance QCRs as required – all significant failings are followed up to ensure agreed actions are implemented – repeat defaulters are referred to the Board for appropriate action, including termination of membership – Membership of 12 members terminated since 2010 (not inc 2014) Representation at Forum of Firms (FoF) and European Group of International Accounting Associations and Networks (EGIAN) meetings

Tax Committee Output (1) Appointment of Tax Director (Mike Adams) Nexia International Tax Academy launched Continuing strong support for EMEA tax group, Asia/Pacific tax group and GMTS conference First ever tax resource survey launched Tax Committee

Tax Committee Output (2) International Tax Handbook chapters kept up-to-date on website Tax members contributing to cross-border database Tax Committee

Marketing Committee Output (1) Appointment of Marketing and Business Development Manager (Dal Cheema) Winners of ‘Rising Star Network’ of the year award 2013 Production of the Global Risk Management Report Marketing highlights

Marketing Committee Output (2) New look for the Global Insight e-newsletter Social media fact sheets and guidance Doing Business guide template Website has been updated to make it more user friendly and interactive Marketing highlights

Business Development Output (1) CrossBorder database Nexia proposal guidance Nexia proposal template Business development highlights

Business Development Output (2) Other tools include: – “About Nexia” presentation – “Tender alert” s Business development highlights

PDT Output Performance Development Support Tools Guide to PDF support tools Successfully launching the PDF Competency questions for hiring professional staff Job appraisal form (with examples) Appraisal and development review form (with examples) Career Development Plan (with examples) ….and of course continuing to run development courses

Obligations of membership (1) database established and performance record reviewed regularly by Chief Executive Officer and Regional Chairs performance record reviewed each year by Board of Directors and regular non-compliance could lead to expulsion Non compliant firm procedure

Obligations of membership (2) Non compliant firm procedure

Performance Management (1) What impact has it had? 27 firms left over last four years.

Performance management (2) ObligationNon compliance/non response October 2010 Non compliance/non response October 2013 Fee income survey96 19 Non payment of fees51 3 Complaints6 1 Website global directory80 11 Audit questionnaire85 32 Conference participation15 1 Branding NEW How are we doing?

Performance Management (3) How have we performed over the past 5 years? Improved quality of services of members Improved responsiveness of members

Where do we go from here? On-going improvements Quality NIMO Coverage Ranking

Where do we go from here? Strategic questions (1) Starting points – Multiple representation – Nexia branding not obligatory Scope of services offered and types of members – Tax and/or audit only? Other members (law firms, consulting firms)? – (Formal) cooperation with legal and/or consulting network?

Where do we go from here? Strategic questions (2) Nexia’s role in business development – No business by Nexia “as such” – Reactive? – Supportive? – How much risk are we prepared to take? How can Nexia assist firms to develop their advisory business? Future of SIGs – Structures and memberships – Coordination of activities – Support – Role within Nexia, especially in relation to committees

Chief Executive’s Report Kevin Arnold Nexia International – Executive Director’s Report14 April London

To provide a brief update on recent developments and Strategic Plan Implementation since November Chief Executive’s Report Nexia International – Executive Director’s Report

Start Points & Stats Scope Nexia International – Executive Director’s Report

Annual Conference 2013, Shanghai Nexia’s most ambitious conference to date: Sunday to Sunday activities Successful pre and post conference tours SIG/Doing Business in China very well attended

Annual Conference 2013, Shanghai

Firm of the Year 2013 Awarded to Bartolomé Mafla of Nexia Auditores (Panama) Awarded in recognition of his outstanding effort to advance the Nexia brand in Central America and the Caribbean region.

Annual Conference – 18 October 2014 Hotel Arts Audit forum, Special Interest Groups/workshops Accompanying partner programme Barcelona, Spain

International Tax Conference – 7 June 2014 The Langham Hotel Special Interest Groups meetings Workshops on: – Tax avoidance – Structuring investments in the Asia Pacific region – Transfer pricing Accompanying partner programme Hong Kong, SAR

increased networking opportunities: over 1,000 Nexia members attended conferences, meetings, or seminars in 2013 Miscellaneous Benefits Implementation of the Strategic Plan The last five years

Meetings and networking events 2013 Board Meeting and Committee Meetings 52 SIG meetings 60 ETG Meeting, London, UK 80 Umbrella Group Meeting, London, UK 13 EMEA Regional Conference, Marrakech, Morocco 110 PDT: New Partners, Madrid, Spain 12 Central & Eastern Regional Conference, Lviv, Ukraine 40 International Tax Conference, Rome, Italy 112 Tax Training Course, Leiden, The Netherlands 14 EMEA Tax Group Meeting, Malta 61 Umbrella Groups Internal Meetings 400 GMTS Meeting, Bucharest, Romania 33 NC&S America Regional Conference, Costa Rica 75 AP Young Leaders + Advanced Young Leaders, Kuala Lumpur, Malaysia 20 AP Tax Conference, Kuala Lumpur, Malaysia 25 AP Regional Conference, Kuala Lumpur, Malaysia 40 International Conference, Shanghai, China 214 Board Meeting and Committee Meetings 52 SIG meetings 60 ETG Meeting, London, UK 80 Umbrella Group Meeting, London, UK 13 EMEA Regional Conference, Marrakech, Morocco 110 PDT: New Partners, Madrid, Spain 12 Central & Eastern Regional Conference, Lviv, Ukraine 40 International Tax Conference, Rome, Italy 112 Tax Training Course, Leiden, The Netherlands 14 EMEA Tax Group Meeting, Malta 61 Umbrella Groups Internal Meetings 400 GMTS Meeting, Bucharest, Romania 33 NC&S America Regional Conference, Costa Rica 75 AP Young Leaders + Advanced Young Leaders, Kuala Lumpur, Malaysia 20 AP Tax Conference, Kuala Lumpur, Malaysia 25 AP Regional Conference, Kuala Lumpur, Malaysia 40 International Conference, Shanghai, China 214 Total 1361 attendees

increased networking opportunities: over 1,000 Nexia members attended conferences, meetings, or seminars in 2013 Increased interest in committee participation. Audit Committee has six applicants for one position. Miscellaneous Benefits Implementation of the Strategic Plan The last five years

Scope Turbulence in Mid-Tier Networks Nexia International – Executive Director’s Report14 April London

Network Turbulence BDO-PKF (UK, Australia, China, South Africa) HLB- dealing with loss of Clifton PrimeGlobal-dealing with loss of Reznick and LittleJohn Moore Stephens-one firm approach RSM-one firm approach; McGladrey’s position Crowe/RSM in China RSM/Baker Tilly in UK.

Scope Scale of our Network Nexia International – Executive Director’s Report14 April London

Nexia facts 2013 fee income: US$ 2.9bn + 4% 604 offices + 4% 2,739 partners and principals + 5% 23,131 total staff + 4% 106 countries + 3% Organisational and financial growth 2013

Nexia facts Regional composition: 2013

Nexia facts World fee data 2014 RankNameFee Income ($m) Growth rate (%) 1Deloitte32, PwC(1)32, Ernst & Young25, KPMG(1)23, BDO (1)(2)6, Grant Thornton International4, RSM International (3)3, Baker Tilly International3, Crowe Horwath International (4) 3, Nexia International2, Moore Stephens International2, PKF International (5)2, Kreston International1, HLB International1, Mazars1, Source: IAB World Survey 2014: Networks fee data. International Accounting Bulletin (IAB), January (1) Other includes advisory revenues (2) BDO revenue includes $1.4bn from alliance firms (3) RSM International revenue include $44.9m from alliance firms (4) Crowe Horwath International revenue includes $754m from alliance firms (5) PKF International revenues include fee income of firms the network has lost prior to year- end due to members operating on a six-month cancellation notice.

Nexia facts Regional ranking: Asia Pacific RankNameRevenue ($m)Staff 1PwC11, ,624 2Deloitte10, ,125 3KPMG3, ,042 4Ernst & Young2, ,893 5BDO1, ,934 6Crowe Horwath International ,849 7Baker Tilly International ,415 8RSM ,000 9Grant Thornton International ,339 10Moore Stephens International ,266 11Kreston International ,711 12PKF International ,987 13HLB International ,933 14Nexia International ,609 15Reanda International ,700 Source: IAB World Survey 2014: Regional Analysis. International Accounting Bulletin (IAB), January (1) EY regional spilt does not include US$1,202m fee income and 6,856 staff from EY Japan

Agenda marketing update communications update business development update

Nexia facts Regional ranking: Latin America Source: IAB World Survey 2014: Regional Analysis. International Accounting Bulletin (IAB), January * The figures for KPMG and Ernst & Young includes North America. (1) EY regional spilt does not include US$1,202m fee income and 6,856 staff from EY Japan RankNameRevenue ($m)Staff 1Ernst & Young* (1)10, ,835 2KPMG*7, ,544 3PwC1, ,406 4Deloitte1, ,226 5BDO ,907 6Grant Thornton International ,784 7RSM98.702,419 8Crowe Horwath International96.202,618 9Moore Stephens International77.302,708 10Baker Tilly International75.801,754 11SMS Latinoamerica67.801,913 12Russell Bedford International56.001,537 13Kreston International53.801,681 14PKF International51.001,402 15Nexia International47.501,371

Agenda marketing update communications update business development update

Nexia facts Regional ranking: Middle East & Africa RankNameRevenue ($m)Staff 1KPMG*11, ,594 2Ernst & Young* (1)10, ,224 3PwC1, ,578 4Deloitte ,374 5Grant Thornton International ,762 6BDO ,498 7PKF International95.002,872 8Baker Tilly International88.801,569 9Mazars87.502,196 10RSM International59.401,404 11Crowe Horwath International52.701,075 12Moore Stephens International48.801,314 13Kreston International46.201,202 14Nexia International43.601,051 15HLB International Source: IAB World Survey 2014: Regional Analysis. International Accounting Bulletin (IAB), January * The figures for KPMG and Ernst & Young includes Europe. (1) EY regional spilt does not include US$1,202m fee income and 6,856 staff from EY Japan.

Agenda marketing update communications update business development update

Nexia facts Regional ranking: Europe RankNameRevenue ($m)Staff 1PwC12, ,931 2KPMG*11, ,594 3Ernst & Young* (1)10, ,224 4Deloitte10, ,452 5BDO2, ,742 6Grant Thornton1, ,936 7Nexia International1, ,303 8Baker Tilly International1, ,195 9Mazars1, , Moore Stephens International ,140 11HLB International ,431 12Crowe Horwath International ,034 13Kreston International ,622 14RSM ,059 15PKF International ,212 Source: IAB World Survey 2014: Regional Analysis. International Accounting Bulletin (IAB), January * The figures for KPMG and Ernst & Young includes Africa/Middle East. (1) EY regional spilt does not include US$1,202m fee income and 6,856 staff from EY Japan.

Agenda marketing update communications update business development update

Nexia facts Regional ranking: North America RankNameRevenue ($m)Staff 1Deloitte15, ,704 2PwC11, ,697 3Ernst & Young* (1)10, ,835 4KPMG*7, ,544 5BDO2, ,308 6RSM2, ,014 7Grant Thornton International1, ,722 8PKF International1, ,328 9Crowe Horwath International1, ,838 10Baker Tilly International1, ,913 11Nexia International1, ,797 12Moore Stephens International1, ,653 13Kreston International ,876 14HLB International ,008 15UHY International ,086 Source: IAB World Survey 2014: Regional Analysis. International Accounting Bulletin (IAB), January * The figures for KPMG and Ernst & Young includes Latin America. (1) EY regional spilt does not include US$1,202m fee income and 6,856 staff from EY Japan

Nexia facts Country ranking 2014: US RankName Fee income ($m) Growth rate (%) 1Deloitte13, PwC11, Ernst & Young9, KPMG6, BDO (1)2, PKF International (2)1, Crowe Horwath International (3)1, RSM International (4)1, Nexia International1, Grant Thornton International1, Baker Tilly International1, Moore Stephens International1, Kreston International HLB International UHY International Source: IAB Country Survey 2014: Uptick in US cause for optimism. Network fee table. International Accounting Bulletin (IAB), 21 February (1) BDO's revenue includes $1.3bn from alliance members (2) PKF International revenues include fee income of firms the network has lost prior to year-end due to members operating on a six-month cancellation notice (3)Crowe Horwath's revenues include $708.8m non exclusive/ correspondent or alliance member firms (4) RSM revenue includes McGladrey revenues. McGladrey Alliance revenues are in associations table.

Nexia facts Country ranking 2013: US RankName Fee income ($m) Growth rate (%) 1Deloitte13, PwC10, Ernst & Young8, KPMG5, Crowe Horwath International1, Nexia International1, RSM1, PKF North America1, Grant Thornton International1, Baker Tilly International1, Moore Stephens International Kreston International BDO HLB International UHY International Source: IAB Country Survey 2013: US market gets fast and furious. Network fee table. International Accounting Bulletin (IAB), 25 February 2013.

People Development Team New Managers and Senior Managers Courses running April / May 2014 in Barcelona – 30 delegates Refreshed New Manager course New Partner Programme running Amsterdam – 25 th to 28 th June New Managers course for the North and Central America region – planned for November this year Performance and Development Framework – new tools launched and now on website IFRS – new contract signed with W Consulting with considerable cost savings – contract in place through to June Highlights for 2014

Marketing and business development Dal Cheema - Nexia International

Risk management report updated app Fast fact sheets Social media guidelines Describing Nexia guidelines People finder Nexia link Brand guidelines CrossBorder enhancements Marketing and business development update

PowerPoint proposal template Proposal template training video roles and responsibilities document new look and feel for the Nexia website interactive section for the International Tax handbook webinars – topical and business development related training (pending board approval) Coming soon

Audit Committee The Audit Committee is fully committed to ensuring that all independent member firms maintain high standards over the conduct of their audit work. One recent major initiative is the mentoring process and over the last few months there have been very encouraging signs that it has began to provide substantial positive results. The Audit Director endeavours to keep all the audit related pages of the Nexia website updated. Please do visit the audit section at to make yourself aware of the what is available. EU compromise on audit reform – will be covered by a later presentation.

Audit Committee The NIMo database is crucial in demonstrating to regulators how the network complies with local and international independence requirements. ALL member firms MUST visit the NIMo webpage at least every 3 months, REGARDLESS of the client services provided and click on YES or NO as appropriate. Where member firms have failed to live up to expectations, even after extensive efforts to support and assist, then such firms have been referred to the Board and membership terminated where deemed appropriate. The Audit Committee update will provide more details regarding the above together with other matters of interest. Yaqoob is always available to assist with any audit related

Services Business Advisory Group – Shahab Haider Legal Services Group - Beatrice Onicajarka Valuations Group - Andreas Blum IT & Internal Audit Group - Ingo Koehne Insolvency, Restructuring and Turnarounds - Greg Palfrey IFRS – Torsten Janssen Transaction Services Business start-up and Financial Outsourcing SIG

Services Tax specific groups: Global Mobility Tax Services – Sten Günsel Transfer Pricing - Rajesh Sharma Indirect Taxes - John Voyez Global Real Estate - Henning- Günther Wind Private Wealth Group - Mike Beattie SIG

Any questions?