MERCER’S GLOBAL SERVICES 0 Cost Effective and Competitive Expatriate Management Do you face below concerns?  Do you transfer more and more employees from different nationalities and countries, not only parent company nationals? Are you expanding the number of destinations?  Are employees with international experience among the best performers in your company?  Do you aim to have a forward-looking international compensation policy?  Have you measured your expatriate allowances competitiveness?  Do your expatriates keep on challenging their Goods & Services allowance?  Do you have appropriate data to match with your international assignment objectives? Do you have transparent data to answer to your expatriate queries?  Do you need adequate calculators to ease your expatriate management administration? More and more companies are looking for transparent, consistent, equitable and cost effective data to build expatriate compensation packages and assess competitive allowances for all origins and all destinations. Mercer global solutions save our clients money by providing information and solutions with extensive reports, surveys, interactive calculators, flexibilities and different options, large coverage and information databases, Mercer has a unique and comprehensive capability to provide on-going services that can only be provided by the world’s largest human resource consulting firm.

MERCER’S GLOBAL SERVICES 1 A Quick Look Goods & Services (G&S) or Cost of Living Allowances (COLA) * 1:10 Mercer recently measured the actual G&S allowance or COLA among a group of the world’s leading multinational firms in the US and Europe The importance of the COLA is not how high or how low it is, but knowing what your position should be and how it is communicated to the employees is important. If you do not take care to align these you may end up over paying significantly or underpaying. The impact of the COLA policy differences are magnified at the higher level positions you transfer abroad. Based on:  same salary  same host / home combination  same family size Variation in net value of COLA Based on a Frankfurt to Paris, €100,000 gross base salary and family of four Comparative annual value of Cost of Living allowance *In this document, we use "Cost of Living Allowance (COLA)" and "Goods and Services (G&S)" terms interchangeably

MERCER’S GLOBAL SERVICES 2 A Quick Look Goods & Services (G&S) or Cost of Living Allowances (COLA) Comparison of potential differences

MERCER’S GLOBAL SERVICES 3 Mercer’s Audit Proposal How do COLAs compare based on different provider and consumer assumptions? Depending on the methodology and data used, you may be paying up to EUR 200,000 more than you should in expatriate compensation and allowances. SAMPLE (Amounts in $USD) Realize the differences that exist! Depending on the approach used, you may be overpaying by EUR 30’000 per expat per year in core allowances: Mobility premium, Housing, COLA, etc.

MERCER’S GLOBAL SERVICES 4 Mercer’s Audit Proposal Are your expat packages at a high cost, average or low cost level? Comparison of over-base allowances for typical transfer to Mercer Reference Benchmark sample of leading MNC’s

MERCER’S GLOBAL SERVICES 5 Why Mercer? Your trusted advisor experience more than 50 firms transition to Mercer every year A team of global consultants with more than 20 years of experience