1. Regional Presentation Norbert Neu Chair

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

3. Strategy Strategic Review 2010-2015

4. 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

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

7. Nexia facts Financial performance 2010-2013 US$2.1 US$2.3 US$2.8 US$2.9 4% increase US dollars (billion) 21% increase 9.5% increase 2% increase

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

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

10. 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

11. 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

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

13. 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

14. 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

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

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

17. 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

18. 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

19. Obligations of membership (2) Non compliant firm procedure

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

21. 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?

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

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

24. 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?

25. 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

26. Chief Executive’s Report Kevin Arnold Nexia International – Executive Director’s Report14 April 2012 - London

27. To provide a brief update on recent developments and Strategic Plan Implementation since November 2013. Chief Executive’s Report Nexia International – Executive Director’s Report

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

29. 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

30. Annual Conference 2013, Shanghai

31. 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.

32. Annual Conference 2014 13 – 18 October 2014 Hotel Arts Audit forum, Special Interest Groups/workshops Accompanying partner programme Barcelona, Spain

33. International Tax Conference 2014 4 – 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

34. 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

35. 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

36. 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

37. Scope Turbulence in Mid-Tier Networks Nexia International – Executive Director’s Report14 April 2012 - London

38. 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.

39. Scope Scale of our Network Nexia International – Executive Director’s Report14 April 2012 - London

40. 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

41. Nexia facts Regional composition: 2013

42. Nexia facts World fee data 2014 RankNameFee Income ($m) Growth rate (%) 1Deloitte32,400.004 2PwC(1)32,088.002 3Ernst & Young25,892.006 4KPMG(1)23,420.002 5BDO (1)(2)6,453.107 6Grant Thornton International4,519.008 7RSM International (3)3,714.10-7 8Baker Tilly International3,404.203 9Crowe Horwath International (4) 3,168.203 10Nexia International2,918.003 11Moore Stephens International2,682.1017 12PKF International (5)2,523.00-6 13Kreston International1,944.60 14HLB International1,678.607 15Mazars1,377.206 Source: IAB World Survey 2014: Networks fee data. International Accounting Bulletin (IAB), January 2014. (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.

43. Nexia facts Regional ranking: Asia Pacific RankNameRevenue ($m)Staff 1PwC11,640.0045,624 2Deloitte10,943.0041,125 3KPMG3,900.0032,042 4Ernst & Young2,934.0029,893 5BDO1,099.2013,934 6Crowe Horwath International765.8010,849 7Baker Tilly International658.407,415 8RSM574.9010,000 9Grant Thornton International567.008,339 10Moore Stephens International500.709,266 11Kreston International378.206,711 12PKF International310.002,987 13HLB International291.904,933 14Nexia International250.504,609 15Reanda International112.901,700 Source: IAB World Survey 2014: Regional Analysis. International Accounting Bulletin (IAB), January 2014. (1) EY regional spilt does not include US$1,202m fee income and 6,856 staff from EY Japan

44. Agenda marketing update communications update business development update

45. Nexia facts Regional ranking: Latin America Source: IAB World Survey 2014: Regional Analysis. International Accounting Bulletin (IAB), January 2014. * 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)10,750.0058,835 2KPMG*7,880.0042,544 3PwC1,481.0017,406 4Deloitte1,300.0019,226 5BDO194.903,907 6Grant Thornton International169.003,784 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

46. Agenda marketing update communications update business development update

47. Nexia facts Regional ranking: Middle East & Africa RankNameRevenue ($m)Staff 1KPMG*11,640.0080,594 2Ernst & Young* (1)10,943.0084,224 3PwC1,074.0011,578 4Deloitte900.009,374 5Grant Thornton International135.002,762 6BDO124.402,498 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 International34.80977 Source: IAB World Survey 2014: Regional Analysis. International Accounting Bulletin (IAB), January 2014. * 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.

48. Agenda marketing update communications update business development update

49. Nexia facts Regional ranking: Europe RankNameRevenue ($m)Staff 1PwC12,638.0067,931 2KPMG*11,640.0080,594 3Ernst & Young* (1)10,943.0084,224 4Deloitte10,300.0062,452 5BDO2,475.0019,742 6Grant Thornton1,778.0012,936 7Nexia International1,162.408,303 8Baker Tilly International1,131.108,195 9Mazars1,003.507,623 10 Moore Stephens International979.908,140 11HLB International829.306,431 12Crowe Horwath International772.507,034 13Kreston International670.506,622 14RSM579.205,059 15PKF International550.005,212 Source: IAB World Survey 2014: Regional Analysis. International Accounting Bulletin (IAB), January 2014. * 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.

50. Agenda marketing update communications update business development update

51. Nexia facts Regional ranking: North America RankNameRevenue ($m)Staff 1Deloitte15,000.0070,704 2PwC11,547.0041,697 3Ernst & Young* (1)10,750.0058,835 4KPMG*7,880.0042,544 5BDO2,559.6016,308 6RSM2,401.9013,014 7Grant Thornton International1,871.0010,722 8PKF International1,517.008,328 9Crowe Horwath International1,481.007,838 10Baker Tilly International1,450.107,913 11Nexia International1,414.007,797 12Moore Stephens International1,075.405,653 13Kreston International795.903,876 14HLB International487.203,008 15UHY International206.501,086 Source: IAB World Survey 2014: Regional Analysis. International Accounting Bulletin (IAB), January 2014. * 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

52. Nexia facts Country ranking 2014: US RankName Fee income ($m) Growth rate (%) 1Deloitte13,894.006 2PwC11,042.009 3Ernst & Young9,100.0011 4KPMG6,140.007 5BDO (1)2,072.009 6PKF International (2)1,393.009 7 Crowe Horwath International (3)1,390.603 8RSM International (4)1,366.606 9Nexia International1,359.203 10Grant Thornton International1,322.909 11Baker Tilly International1,182.30 12Moore Stephens International1,041.5012 13Kreston International782.10-14 14HLB International445.408 15UHY International196.802 Source: IAB Country Survey 2014: Uptick in US cause for optimism. Network fee table. International Accounting Bulletin (IAB), 21 February 2014. (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.

53. Nexia facts Country ranking 2013: US RankName Fee income ($m) Growth rate (%) 1Deloitte13,067.009 2PwC10,157.0015 3Ernst & Young8,200.009 4KPMG5,753.007 5Crowe Horwath International1,345.404 6Nexia International1,313.4065 7RSM1,283.400 8PKF North America1,275.0010 9Grant Thornton International1,216.908 10Baker Tilly International1,188.40-14 11Moore Stephens International931.100 12Kreston International906.106 13BDO618.008 14HLB International411.80-51 15UHY International188.201 Source: IAB Country Survey 2013: US market gets fast and furious. Network fee table. International Accounting Bulletin (IAB), 25 February 2013.

54. 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 2015. Highlights for 2014

55. Marketing and business development Dal Cheema - Nexia International

56. 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

57. 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

58. 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 http://www.nexia.com/AuditCommittee to make yourself aware of the what is available. http://www.nexia.com/AuditCommittee EU compromise on audit reform – will be covered by a later presentation.

59. 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 (myaqoob@nexia.com) is always available to assist with any audit related matters.myaqoob@nexia.com

60. 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

61. 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

62. Any questions?