1. ESTP Course Desk Profiling – Hands-on Profiling Global Enterprise Groups with the Interactive Profiling Tool (IPT) Biliana Branska-Lateva Eurostat

2. Recurring definitions and abbreviations eDamis: a system allowing transfer of data between various national, EU institutions and Eurostat MNE: Multinational Enterprise Group EGR: the EuroGroups Register, the register of the largest MNEs acting in the EU (+EFTA) countries. The EGR is managed by Eurostat and updated by the EU+EFTA National Statistical Institutes GDC: Global Decision Centre, in IPT another term for the UCI GEG: Global Enterprise Group, another term for the MNE GEN: Global Enterprise TEN: Truncated Enterprise LEU: Legal Unit UCI: Ultimate Controlling Institutional unit: the unit that is at the top the ownership chain of a foreign-owned enterprise and is not controlled by any other institutional unit Country of UCI: the country where the UCI resides Partnering country: country which hosts affiliates of the Group under profiling but which is not the country of the UCI PT: Profiling Template: Excel-csv file that includes all the variables of interest for profiling. These variables can come from the EGR or can be gathered during the profiling process PR: Profiling Report: the report in which the country of the UCI and the partnering countries indicate all the necessary information needed to understand how the profiling has been performed.

3. The profiling methodology used as a basis in IPT Profiling is a method to analyse the legal, operational and accounting structure of a global enterprise group in order to establish the enterprises within that group and their links and establish the most efficient structures for the collection of statistical data a top-down method, looking at group level first involves agreement with the group (intensive) and agreement across profiling countries implemented in two modes: intensive and light (depending on the complexity of the group) the profiling process differs slightly in these two modes

4. Overview of intensive profiling: 3 main steps Intensive profiling is undertaken by the country of the UCI and supported by partners target: the largest groups with complex organization (with several activities in several countries) There are three main profiling process steps: desk profiling, performed by the country of the UCI group LEU perimeter is updated initial delineation of the GENs and TENs conceived contact with the group, performed again by the country of the UCI group LEU perimeter is confirmed and established the GEN is confirmed by the Group validation of the LEUs and TEN at national level, performed by the partnering countries the LEU perimeter at national level is confirmed the TEN proposed by the county of UCI is checked for suitability for statistical observation and dissemination

5. Overview of light profiling Light profiling is undertaken by the country of the UCI target: light profiling targets the medium groups (smaller and less complex than those targeted by intensive profiling) Eurostat has prepared a list of suggested groups Main profiling process steps: profiling mainly results from desk activities, performed by the country of the UCI validation by the group is not necessary TEN validation by partnering countries is a simpler procedure than in intensive profiling

6. Profiling before the IPT fully manual process with coordination on Eurostat side initial source of data is EGR system the data exchange between UCI country, partnering countries and Eurostat was realized as information transferred in Excel/flat files using eDamis system as secure data exchanging channel. files exchanged were the Profiling Report (PR) and Profiling Template (PT): the PR explains how the profiling has been performed (UCI + partner complete) the PT lists all the variables of interest for profiling; these can originate from the EGR or can be gathered during the profiling process (UCI + partner complete) timeline: profilers in the year 2013 worked on final frame 2011 (T-2), as data was still collected for year 2012.

7. Profiling with the IPT The IPT is an interactive tool for exchange, update and visualisation of profiling information The IPT prototype: will be only accessible by all participants of the profiling process will have the possibility: to retrieve data from EGR Core to read data from profiling files (templates and reports) and also to enter and update data manually timeline: profiling should start around March when reports are disseminated (however it could be started at any point of time) profilers should be able to work on the data from the previous year (T-1) even though the data can be still collected

8. Profiling with the IPT: goals and value added Main goals: allow profiling teams to smoothly exchange information during the profiling process centralize information on the GENs and the TENs for the group under profiling process release information on profiling to the users Expected improvements (value added): better visualization of profiling process easier data exchange between countries participating at a profiling process faster responses within a profiling workflow significant reduce of profiling time visualization of the result of a profiling process better quality of the data by elimination of manual data merge automatic provision of current data to interested countries automatic notification sent after initialisation and changes in the data change of the Eurostat role from active participating in profiling process to supervisor basis for further use of collected data

9. Profiling with the IPT: setting expectations The IPT prototype was developed in 2015 by Eurostat and a contractor with the valuable support of national experts (INSEE), who worked on business functionality tests and proposed necessary improvements The IPT application is still a prototype! Current progress: the prototype is installed in test environment since beginning of 2016 with its main functionality available and some tests still ongoing Future aspects: the prototype is planned to be in production for profiling activities (with 2015 as reference year) by mid-March 2016 the first actual test will begin shortly after, when NSIs will start using it to do profiling as part of the 2015 ESBRs individual grants NSIs will test and report issues discovered as well as suggest further improvements the feedback collected will serve to improve the prototype and establish its value to stakeholders the experience gathered during the next profiling cycles with the IPT prototype will lead to its finalization and to the complete fully-functional IPT application A new ESSnet (CENEX), beginning in May will help support profiling countries with their profiling activities and in particular their experience using the IPT; the CENEX will gather profiling countries experience, comments and suggestions for improvement

10. The EGR and IPT IPT uses the EGR system as initial source of data: EGR IS for identification of legal units within the group EGR CORE for securing data on group structure and legal unit information Similarities: EGR works with similar data and provides similar to the profiling results (information about group structure) Differences: the differences are in the stakeholders of both processes and in the data structures: EGR uses concepts of Enterprises, where profiling uses Global Enterprises and Truncated Enterprises

11. Business actors: description NSI BR: NSI Business Register staff – persons responsible for providing information and updates in the EGR system Profilers: UCI NSI profiler: Profiling team of the country of the UCI. They are responsible for the profiling and initialization of the process. They define the global enterprises (GEN) and the derived truncated enterprises (TEN). They propose the TEN to the partnering countries and are responsible for the final delineation of the GEN and TEN Partnering country profiler: Profiling teams in a country where the global enterprise group (GEG) under profiling has affiliates, but not the UCI. They are responsible for confirming the TEN and LEU information at country level Users: Statisticians that use enterprises in the statistics' production. Mainly SBS statisticians, but it could be also FATS and STS Eurostat: EGR or profiling team in Eurostat

12. Business actors: description

13. IPT actors: roles, rights and access 3 roles (profiler, user, super user) specific role- and country- dependent rights; restricted access based on these Role-dependent rights: UCI NSI profiler (a member of the UCI profiling team): is the profiling process owner can initiate and modify a profiling process can upload previous profiling files (PR, PT) can upload LEU files to consolidate Group LEU perimeter can modify GEG information and decide on suitable GEN structure can propose TEN structure at country-level can accept change requests coming from partner countries or counter propose can close the profiling process has the right to re-assign the profiling process to another member of the team Partnering country profiler: can modify a profiling process (once partner profiling starts) can make proposals (change requests) for LEU and TEN changes at country level

14. IPT actors: roles, rights and access (continued) Role-dependent rights (continued): User: has access with limited right of consultation: access to general information on GEG level able to consult data according to country access: Super-user: Eurostat is in the role of administrator can create a profiling process on behalf of profilers can assign the role of UCI profiler to a non-UCI country The confidentiality rules in force concerning exchanges of individual data will be respected (in line with previous Eurostat presentation)

15. The profiling process in IPT: UCI profiler actions Review of GEG: UCI profiler confirms with the EGR that the country of UCI is correct Prepare input for profiling: relevant information extracted from the EGR UCI profiler can start this preparatory action even before having to use IPT Start UCI profiling: create new profiling process using previous profiling data merged with EGR CORE group data (for follow-up profiling cases) or only EGR Core as input data (new profiling cases) review all units check the legal units in the group perimeter in the country of the UCI compare with a list of LEUs obtained directly by the GEG (or in desk research) add and update LEUs update global information on the group create global enterprises (GENs) and link them with LEUs create first proposal for truncated enterprises (TENs) Finish UCI profiling Send data to partnering countries' profiling teams

16. The profiling process in IPT: partner profiler actions Partnering country profiling teams carry out the next step of profiling with the following actions: Start partnering country profiling partnering countries introduce their information after UCI profiling check the legal units in the group perimeter in the partnering country check information on the TEN provided by the UCI profiler include national information on the TEN Finish partnering country profiling Send updated data to UCI profiler (in the form of Change Requests) for validation and verification change requests represent a proposal from the partnering country profiling process data on TEN- and LEU-level is managed by the UCI profiler it does not change automatically with the receipt of change requests from partnering profilers

17. The profiling process in IPT: final agreement actions Updated data received from partnering countries: UCI profiler receives the updated version of TEN and LEUs for validation and verification Updated data reviewed: UCI profiler reviews the updated data Agreement with the updated data: UCI profiler completes profiling Disagreement with (some parts of) the updated data: UCI profiler prepares counter-proposal UCI profiler sends data to partnering countries next iteration of partner country profiling started process continues until UCI and partnering countries agree on the delineation of the TEN and GEN special rule in place for when a profiling process can be completed by the UCI country

18. Profile a GEG: the interface of IPT

19. Profile a GEG: the interface of IPT (continued) The profiling process is at the heart of IPT A profiling process is unique and characterised by: a group EGR ID (GEG_EGR_ID) reference year There can be only one profiling process for a particular year for a particular group. The flow of the profiling process is based on a clear defined workflow: profiling requested profiling initialised GDC profiling running partnering profiling running intensive profiling completed /light profiling completed

20. Profile a GEG: profilers' flow of events Initial flow: preparation of input for IPT Basic flow: perform profiling operations online Alternative flow: create profiling process based on profiling report and profiling template Envisaged, not yet developed, would facilitate profiling with the IPT in the future: perform UCI profiling operations offline perform partnering country profiling operations offline

21. Profile a GEG: preparation of input for IPT UCI country profiler: collects information on the group structure and the complete perimeter of LEUs (from contact with the group, desk profiling, NBR, admin data, etc.) prepares profiling information consults EGR IM to find the group identifiers starts a profiling process in IPT: action selected in IPT: 'create new profiling' data provided when prompted: GEG_EGR_ID = group ID reference year = initial data source selected 1.profiling process status in IPT changes to 'profiling requested' and then to 'profiling initialised’

22. Profile a GEG: profiling process initialization UCI profiler selects initial data source: UCI profiler is prompted to choose what data will be used as initial profiling source EGR data only, or EGR data merged with previous profiling data (PR and PT) if the group has not been previously profiled offline (with the help of PR and PT) the option to choose is: 'previous profiling merged with EGR CORE data' this will lead to initial data being requested from the EGR Core only if the group has been previously profiled offline (with PT and PR) the option to choose is: 'input files merged with EGR CORE data' UCI profiler will be able to find and upload the previous PR and PT for the group EGR CORE will prepare information about the structure of the group (list of LEUs with their LEIDs) as identified by GEG ID and reference year EGR CORE will use data from the Consolidation Area, as the profiler always needs to work on the most recent data which is stored there Data received from EGR Core is synchronised with information from the uploaded PR/PT in IPT 2.profiling process status in IPT changes to 'profiling initialised’

23. Profile a GEG: perform profiling operations online

24. Profile a GEG: profiling process initialization (continued) 1.profiling process status in the IPT is at 'profiling requested' If the process is created by Eurostat: it is possible to assign another user as the owner of the process in a role of UCI NSI profiler examples: if EGR does not reflect correctly the country of UCI, when the UCI of the GEG is located outside the EU and a EU country wants to profile the group, when a UCI country refuses to start profiling due to lack of resources and another country sees the group as significant and would like to profile it result: point 2 below If the process is created by a non-UCI country (the UCI country of the requested group is not the same as the country of the profiler): administrator approval is required (Eurostat) if approved, the request is sent to EGR for initial data result: point 2 below if not approved: profiling cannot be initiated 2.profiling process status in IPT changes to ‘profiling initialised’

25. Profile a GEG: profilers' flow of events Initial flow: preparation of input for IPT Basic flow: perform profiling operations online Alternative flow: create profiling process based on profiling report and profiling template

26. Profile a GEG: perform profiling operations online 2.profiling process status in IPT is at ‘profiling initialised’ UCI profiler elects to ‘start UCI profiling’ 3.profiling process status in IPT changes to ‘GDC profiling running’ UCI NSI begins profiling the GEG structure: Adding new LEUs and identifying them: profiler checks and updates the legal units in the group perimeter (‘manage LEUs’ field) profiler can upload in IPT a list of LEUs (coming from the UCI of the group, desk research) uploaded LEUs need to be identified in EGR IS (some may require manual identification) EGR IS sends back to IPT the identified LEUs with assigned LEID variable unidentified LEUs are also stored in IPT and used in the profiling process profiler can add new LEUs and identify them in EGR IS many times during profiling

27. Profile a GEG: perform profiling operations online (cont.) UCI NSI continues profiling the GEG structure: Retrieving group information from EGR CORE: IPT requests and receives group information from EGR CORE for the identified LEUs the profiled group data in the IPT is updated with the information from EGR CORE as a result, there can be five types of LEUs: LEUs are in the collected profiling information and in EGR CORE under the same group (OK) LEUs are in the collected profiling information and in EGR CORE but under different group (Diff_GR) LEUs are in EGR and not in the collected profiling information (OUT_PROF) LEUs are in the collected profiling information and exist in EGR IS but are not in EGR CORE (OUT_EGR) LEUs are in the collected profiling information and do not exist in EGR IS therefore they did not get a LEID_ID and cannot be compared with EGR (OUT_IS) IPT merges the filled data with the existing version, checks if all mandatory fields are completed and completes profiling profiler can retrieve GEG information and structure and information about LEUs from EGR CORE many times 4.profiling process status in IPT changes to ‘partnering profiling running’

28. Profile a GEG: perform profiling operations online 4.profiling process status in IPT is at ‘partnering profiling running’ Partnering profiler checks the legal units in the group perimeter in the partnering country checks information on the TEN provided by the UCI profiler includes national information on the TEN sends the updated data back to the UCI profiler in the form of a change request UCI profiler does not agree with the updated data: sends back to the partnering profiler a counter- proposal agrees with the updated data: IPT merges filled data with the last version, checks if all mandatory information is included and completes the phase of profiling for that particular partnering country UCI profiler can decide to complete the profiling process when with intensive profiling status: when all intensive profiling criteria are fulfilled with light profiling status: when the intensive profiling criteria are not met 5.profiling process status in IPT changes to ‘profiling completed’

29. Profile a GEG: profiler consultation of GEG

30. Profile a GEG: profiler consultation of GEG (continued 1) UCI profiler can: consult and modify data at GEG level Partnering country profiler can: only consult data at GEG level

31. Profile a GEG: profiler consultation of GEG (continued 2) Variables collected at GEG level: GEG_EGR_ID1369 GEG_NAMEMEDBRICOLEC GEG_GGH_LFORMPrLC GEG_UCI_EGR_ID2112026366 GEG_UCI_NAMEMEDBRICOLEC GEG_UCI_COUNTRY_CODEFR GEG_UCI_NAME_S_CODEGEG_AR GEG_PERS_EMPL16837 GEG_PERS_EMPL_S_CODEGEG_AR GEG_PERS_EMPL_Q_I GEG_TURNOV3905 GEG_TURNOV_S_CODEGEG_AR GEG_TURNOV_RYEAR2013 GEG_TURNOV_CUR_CODEEUR GEG_TURNOV_Q_I GEG_NACE_CODE2751 GEG_NACE_CODE_S_CODEGEG_AR GEG_NACE_CODE_RYEAR2013 GEG_NUMBER_LEU26 NSA_PROF_CODEFR PROF_TYPEIntensive

32. Profile a GEG: profiler consultation of GEN

33. Profile a GEG: profiler consultation of GEN (continued 1) The consultation of GEN is 2 steps process: 1.IPT displays a list of GENs within the group with the following information for each GEN: GEN identification number GEN name GEN NACE code 2.IPT provide the possibility to select one of the GENs for detailed consultation. The following information is shown: the whole information on the GEN the countries where GEN is acting (with the corresponding number of TENs) information on TENs confirmation UCI profiler can: consult, modify and delete data at GEN level Partnering country profiler can: only consult data at GEN level

34. Profile a GEG: profiler consultation of GEN (continued 2) Variables collected at GEN level: GEN_EGR_ID136902 GEN_NAMEMEDBRICOLEC_OTHER GEN_PERS_EMPL GEN_NACE_CODE GEN_SEC_NACE_PERS_EMPL GEN_NACE_PERS_EMPL GEN_TURNOV GEN_TURNOV_CUR_CODE GEN_SEC_NACE_CODE GEN_S_CODE GEN_RYEAR

35. Profile a GEG: profiler consultation of TEN

36. Profile a GEG: profiler consultation of TEN (continued 1) UCI profiler can: consult, modify, link LEUs and delete data at TEN level Partnering country profiler can: consult data at TEN level propose changes to LEUs at TEN level

37. Profile a GEG: profiler consultation of TEN (continued 2) Variables collected at TEN level: TEN_EGR_IDTEN_NAMECountryStatusNumber of legal units DE211202636601DE_MEDBRICOLEC_ROBOTSGERMANY(DE) 2 Current GDC version TEN_PERS_EMPL2810 TEN_PERS_EMPL_S_CODEGEG_AR TEN_PERS_EMPL_RYEAR2013 TEN_NACE_CODE2751 TEN_NACE_S_CODEGEG_AR TEN_NACE_RYEAR2013 TEN_TURNOV574301 TEN_TURNOV_TYPEC TEN_TURNOV_S_CODENSA_FATS TEN_TURNOV_RYEAR2013 TEN_TURNOV_CUR_CODEEUR

38. Profile a GEG: profiler consultation of LEUs

39. Profile a GEG: profiler consultation of LEUs (continued 1)

40. Profile a GEG: profiler consultation of LEUs (continued 2)

41. Profile a GEG: profiler consultation of LEUs (continued 3) UCI profiler can: consult, modify, manage LEU linking Partnering country profiler can: consult data at TEN level propose changes to LEUs and LEU linking

42. Profile a GEG: profiler consultation of LEUs (continued 4) Variables collected at LEU level: LEU_EGR_ID3226619087 LEID_ID LEU_NAME B & L DEUTSCHLAND GMBH TOTO KFA HERRN TOTO LEU_NSA_ID167220264 LEU_DUNS_ID566237861 LEU_BVD_ID LEU_NACE_CODE2751 LEU_NACE_CODE_DESCRManufacture of kitchen robots LEU_NACE_CODE_S_CODENSI_DE LEU_NACE_CODE_RYEAR2013 LEU_PERS_EMPL2905 LEU_PERS_EMPL_S_CODENSI_DE LEU_PERS_EMPL_RYEAR2011 LEU_STA_CODEA LEU_STA_CODE_S_CODEDnB LEU_STA_CODE_RDATE2011 LEU_STATUS LEU_ENT_LINK ENT_NSA_ID ENT_DATE_COMM ENT_DATE_CESS ENT_COUNTRY_CODEDE ENT_PERS_EMPL ENT_PERS_EMPL_S_CODE ENT_PERS_EMPL_RYEAR ENT_PERSONS_EMPLOYED _IMP ENT_PERSONS_EMPLOYED _AVERAGE ENT_NACE_CODE ENT_NACE_CODE_S_CODE ENT_NACE_CODE_RYEAR ENT_TURNOV ENT_TURNOV_CUR_CODE ENT_TURNOV_S_CODE ENT_TURNOV_RYEAR LEU_MIN_CONTROL_I LEU_TYPE_CONSOFC LEU_CONSO_PERCENTAGE100

43. Thank you for your attention! Questions? Comments? For later questions or comments: ESTAT-Profiling@ec.europa.eu