EMEA Tax Group Meeting Warsaw 2015 Mike Adams Tax Director NEXIA TAX UPDATE

EMEA Tax Group - Warsaw Results and IAB rankings Highlights for 2014 Goals for 2015 Business Groups Future Events NEXIA TAX UPDATE EMEA Tax Group - Warsaw

Results 2014 fee income: US$ 3.1bn + 5% 614 offices 2,751 partners and principals 23,150 total staff 112 countries EMEA Tax Group - Warsaw

Results Financial performance US$2.3US$2.8US$2.9 4% increase US dollars (billion) 21% increase 9.5% increase US$3.1 5% increase EMEA Tax Group - Warsaw

Combined fee income by region 2014

Nexia Service Lines EMEA Tax Group - Warsaw

Network Data World fee data 2015 RankNameFee Income ($m) Growth rate (%) 1Deloitte34, PwC33, EY27, KPMG24, BDO(1)7, Grant Thornton International4, RSM International(2)4, Baker Tilly International3, Crowe Horwath International(3)3, Nexia International3, Moore Stephens International(4)2, PKF International(5)2, Kreston International2, HLB International1, Mazars1, Source: IAB World Survey 2015: Networks fee data. International Accounting Bulletin (IAB), January (1) BDO revenue includes $1.6bn from alliance firms (2) RSM International revenue includes $52.9m from alliance firms (3) Crowe Horwath International revenue includes $880.7m from alliance firms (4) Moore Stephens International revenue includes $50.7m from alliance member firms (5) PKF International revenues includes $801.7m from alliance member firms EMEA Tax Group - Warsaw

Regional ranking: Europe RankNameRevenue ($m)Staff 1PwC 13, ,807 2KPMG* 12, ,983 3EY(1)* 11, ,564 4Deloitte 11, ,707 5BDO 2, ,332 6Grant Thornton International 1, ,012 7Nexia International 1,240.18,024 8Baker Tilly International 1,097.37,821 9Mazars 1,068.07,814 10RSM International 1,034.88,205 11Moore Stephens International ,115 12HLB International ,133 13Crowe Horwath International ,968 14Kreston International ,702 15PKF International ,729 Source: IAB World Survey 2015: Regional Analysis. International Accounting Bulletin (IAB), January * The figures for KPMG and EY include Africa/Middle East. (1) EY reported data for India in EMA, and EY Japan $1,098m fee income and 7,266 staff are not included in the regional spilt EMEA Tax Group - Warsaw Network Data

Regional ranking: Middle East & Africa RankNameRevenue ($m)Staff 1KPMG* 12, ,983 2EY*(1) 11, ,564 3PwC 1, ,486 4Deloitte ,071 5 BDO210.53,689 6 Grant Thornton International146.42,891 7 Mazars94.22,387 8 Baker Tilly International90.91,579 9 PKF International68.51, RSM International65.81, Crowe Horwath International63.41, Nexia International63.12, Moore Stephens International53.01, Kreston International46.11, HLB International33.71,054 Source: IAB World Survey 2015: Regional Analysis. International Accounting Bulletin (IAB), January * The figures for KPMG and EY include Europe. ((1) EY reported data for India in EMA, and EY Japan $1,098m fee income and 7,266 staff are not included in the regional spilt EMEA Tax Group - Warsaw Network Data

Regional ranking: Latin America Source: IAB World Survey 2015: Regional Analysis. International Accounting Bulletin (IAB), January * The figures for KPMG and EY include North America. (1) EY reported data for India in EMA, and EY Japan $1,098m fee income and 7,266 staff are not included in the regional spilt RankNameRevenue ($m)Staff 1EY*(1) 11, ,411 2KPMG* 8, ,181 3Deloitte 1, ,383 4PwC 1, BDO208.74,256 6 Grant Thornton International185.73,958 7 Baker Tilly International112.62,053 8 RSM International110.02,610 9 Crowe Horwath International95.22, Santa Fe Associates87.61, Moore Stephens International SMS Latinoamerica69.61, Kreston International55.41, Nexia International54.61, PKF International52.81,451 EMEA Tax Group - Warsaw Network Data

Regional ranking: North America RankNameRevenue ($m)Staff 1Deloitte 16, ,420 2PwC 12, ,375 3EY* 11, ,411 4KPMG* 8, ,181 5 BDO 2, ,495 6 RSM International 2, ,601 7 Grant Thornton International 1, ,069 8 Crowe Horwath International 1,615.78,538 9 PKF International 1, , Baker Tilly International 1,509.37, Nexia International 1,468.57, Moore Stephens International 1,079.45, Kreston International , HLB International , UHY International ,059 Source: IAB World Survey 2015: Regional Analysis. International Accounting Bulletin (IAB), January * The figures for KPMG and EY include Latin America. EMEA Tax Group - Warsaw Network Data

Regional ranking: Asia Pacific RankNameRevenue ($m)Staff 1PwC 5, ,337 2Deloitte 4, ,819 3EY(1) 4, ,317 4KPMG 3, ,867 5BDO 1, ,656 6Crowe Horwath International ,777 7Baker Tilly International ,601 8RSM International ,474 9Grant Thornton International ,267 10Moore Stephens International ,923 11Kreston International ,864 12HLB International ,959 13ShineWing ,555 14Nexia International ,405 15PKF International ,171 Source: IAB World Survey 2015: Regional Analysis. International Accounting Bulletin (IAB), January (1) EY reported data for India in EMA, and EY Japan $1,098m fee income and 7,266 staff are not included in the regional spilt EMEA Tax Group - Warsaw Network Data

Nexia Service Lines EMEA Tax Group - Warsaw Average Fee Split – Top 10 Networks (%) NEXIA Audit & Accounting Tax Advisory

Service line fee split : Audit & Accounting NameRevenue ($m)Growth % PwC 15, Deloitte 13, EY 11, KPMG 10, BDO 4, RSM 2, Grant Thornton International 2, Baker Tilly International 1, Crowe Horwath International 1, Moore Stephens International 1, EMEA Tax Group - Warsaw Network Data

Service line fee split: Tax NameRevenue ($m) PwC 8,813.0 EY 7,224.0 Deloitte 6,500.0 KPMG 5,270.0 BDO 1,474.6 RSM 1,260.7 Grant Thornton International Baker Tilly International Crowe Horwath International Nexia International EMEA Tax Group - Warsaw Network Data

Service line fee split: Advisory NameRevenue ($m) Deloitte 14,400.0 PwC 10,002.0 KPMG 9,090.0 EY 8,866.0 Grant Thornton International 1,749.6 BDO 1,544.8 Crowe Horwath International Baker Tilly International Nexia International RSM EMEA Tax Group - Warsaw Network Data

EMEA Tax Group - Warsaw Results and IAB rankings Highlights for 2014 Goals for 2015 Business Groups Future Events NEXIA TAX UPDATE EMEA Tax Group - Warsaw

Tax Highlights 2014 Networking and training – tax conference in Hong Kong – 3 EMEA tax group meetings – 1 Asia Pacific tax group meeting – South American monthly tax group conference calls started – Nexia tax academy advanced international tax course SIG meetings – GMTS conference in Prague – transfer pricing training in Hong Kong – Meetings at tax and annual conferences EMEA Tax Group - Warsaw

Publications – online International Tax Handbook continuously updated – updated edition of European Holding Company Analysis (27 countries) – special edition of TAX Link on the issues generated by the digital economy – 61 other tax articles in TAX Link and Global Insight Guidance – tax pages of members website refreshed – key contacts in specialist areas identified – guidance on production of a practice tax manual – guidance on probable format of tax quality control reviews EMEA Tax Group - Warsaw Tax Highlights 2014

EMEA Tax Group - Warsaw Results and IAB rankings Highlights for 2014 Goals for 2015 Business Groups Future Events NEXIA TAX UPDATE EMEA Tax Group - Warsaw

Tax Goals for next 12 months Repeat the success of the 2014 networking and training events – International Tax Conference: Copenhagen, 4 – 6 June 2015 – EMEA Tax Group meetings: Warsaw, Copenhagen, Helsinki – Asia/Pacific Tax Group meeting: Seoul – South America: continue with group conference calls – Run the level 1 Tax Academy course at Leiden Become involved in the pre-admission process Refresh the external content of the Nexia website that relates to tax services Produce 5 th edition of International Tax Guide and a further Extended Edition of European Holding Company Analysis Continue to work with the six “tax” Special Interest Groups to enhance their effectiveness EMEA Tax Group - Warsaw

Results and IAB rankings Highlights for 2014 Goals for 2015 Business Groups Future Events NEXIA TAX UPDATE EMEA Tax Group - Warsaw

NEXIA TAX UPDATE Oversight: Tax Committee Global Mobility Tax Services Indirect Taxes Legal Services Private Wealth Real Estate Transfer Pricing Business Groups EMEA Tax Group - Warsaw

NEXIA TAX UPDATE Oversight: Advisory Services Steering Group Business Expansion and Financial Outsourcing Governance, Risk & Compliance Services Transaction Services Turnaround, Reconstruction & Insolvency Valuation Services Oversight: Audit Committee IFRS Business Groups EMEA Tax Group - Warsaw

NEXIA TAX UPDATE Standard template for website: Home page, Charter and Business plan Core Team Publications and articles Events and meetings Contacts Case studies Discussion site Business Groups EMEA Tax Group - Warsaw

Results and IAB rankings Highlights for 2014 Goals for 2015 Business Groups Future Events NEXIA TAX UPDATE EMEA Tax Group - Warsaw

NEXIA TAX UPDATE Transfer Pricing webinar International Tax Conference Tax Training Future Events EMEA Tax Group - Warsaw

FUTURE TAX EVENTS 25 February at 08:00 and 14:00 GMT Essential information to enable you to assist your clients with the regulatory requirements Login details to primary contacts next week Transfer Pricing webinar EMEA Tax Group - Warsaw

FUTURE TAX EVENTS 25 March: Unconscious bias at the workplace 29 April: Simple ways to improve your proposals and presentations 27 May: Practical tips on audit documentation 23 June: Real Estate Planning: structuring inbound Real Estate in both the UK and the US 29 July: How you can prove that you are your client’s best option 26 August: Audit issues 30 September: The best way to generate fees once you have won the work Future webinars EMEA Tax Group - Warsaw

FUTURE TAX EVENTS 4 – 6 June, Copenhagen Similar format to last year. Transfer Pricing training: Wednesday 3 June Client Panel: What do they expect from their tax team? BEPS and its implications, Research & Development reliefs, the consequences of Indirect Share Transfers International Tax Conference EMEA Tax Group - Warsaw

FUTURE TAX EVENTS 9 – 11 July, Leiden, The Netherlands Level 1 course Key concepts, Introduction to Tax Treaties and tax residence, Business Profits, Dividends, Interest and Royalties CPE/CPD credits can be arranged If your firm might be interested, please let me know Tax Training EMEA Tax Group - Warsaw

FUTURE TAX EVENTS Details yet to be finalised but probably will be held in September/October/November GMTS Conference 2015 EMEA Tax Group - Warsaw

Results and IAB rankings Highlights for 2014 Goals for 2015 Business Groups Future Events NEXIA TAX UPDATE EMEA Tax Group - Warsaw

NEXIA TAX UPDATE Mike Adams +44 (0) Thank you EMEA Tax Group - Warsaw