1. Global Update Kevin Arnold Executive Director

2. Introduction

3. Image Problem Poll conducted by Kingston Smith: “….half the people polled believed that the overriding personaliity trait associated with accountants is that they are boring.” “Only 4% thought accountants were fun.” Source: accountancy magazine.

5. Guiding Themes My Role : –Help members to grow their business. –Improve members’ benefits-the reasons for joining. –Increase international referrals. –How?

6. Guiding Themes Think and Act internationally-be proactive. Networking : Confidence: Referrals. Culture of responsibility-not entitlement.

7. Guiding Themes Doing Business together (and having fun doing it!) Quality: –Transparency –Communication –On time

8. Guiding Themes Importance of ‘Buy In’ to Strategic Plan. Firms must ‘Walk the Talk’ What can you do for Nexia?

9. Global Update To provide a brief update on issues and events since April 2009.

10. Scope Membership Development. Scale of our Network Member Involvement-Conferences and Committees. Recent Board Decisions-the Issues.

11. Scope Membership Development.

12. Membership Terminations: 2009-10 Urbano Ventocilla (Peru) Shanghai Fuxing Mingfang (China) VSI-KO (Bulgaria) ROSCO Corporation (Russia) K.A.C. (Ukraine) Bodden Anglin (Cayman Islands)

13. Member Losses 2009-10 Anderson Roscoe (Australia) SCI Kakofegitis & Co. (Cyprus) Alfery & Partners (Czech Republic) SC Revisorerne (Denmark) Audit & Compliance (Luxembourg) Revidentia HB (Sweden) Abdulrrazaq Waly Sait (Saudi Arabia) Hudsons (Canada) Nunez Rosas y Asociados (Mexico)

14. Member Gains 2009-10 VGD (Slovakia) Cautela Pros (Slovenia) DAYA (Spain) Euroaudit (Azerbaijan) Rehmann (U.S.A.) Miller Cooper (U.S.A.) Katz Sapper & Miller (U.S.A.) GTM (U.S.A.) Bernhoeft Contadores (Brazil)

15. Scope Scale of our Network.

16. Organisational & Financial Growth 2009 2009 Fee Income: US$2.11bn - 5% 590 Offices + 12% 2,272 Partners+4% 20,600 Total Staff +10% Gained 9 members in 2009-10

17. Financial Performance: 2007-2009

18. TOP SIX GROWTH RATES: 2009

19. Networks & Association Fee Income Performance 2009 BKR International - 2% Mazars International -5% HLB International -7% Kreston International -5% PKF International -6% KPMG -11% Nexia International -5%

20. Regional Composition: 2009

21. Service Portfolio: 2009

22. Financial Statements April 2009 Net assets £ 650k (+30%) Current assets £856k (+7%) Liabilities and provisions £218k (-30%) Total revenue £1.609m(+29%) Expenditure £1.467m (+45%) Net surplus £148k vs. budgeted deficit of £112k

23. SO WHAT?

24. We now have over 590 offices world wide. We have over 20,000 staff. We are financially sound and well set up to develop. Nexia International remains a ‘Top 10’ international network.

25. 25 Note: Ranks are based on Revenue of firms in Tier 2.1 and Tier 2.2 Source:World Accounting Intelligence; H4 Partners Analysis RankFranceGermanyItalySpain United Kingdom 1 PraxityBDOPraxityBDOGrant Thornton 2 KrestonNexiaBDOGrant ThorntonBDO 3 Grant Thornton PKFPraxityNexia 4 Baker TillyMoore StephensBaker TillyHorwathBaker Tilly 5 HLBRSMMoore Stephens PKF 6 NexiaPKFNexiaKrestonMoore Stephens 7 RSMPraxityHLBNexiaHLB 8 PKFBaker TillyKrestonRSM 9 Moore StephensHLBRSMBaker TillyKreston 10 BDOKrestonGrant ThorntonPKFPraxity 11 Leading Edge Alliance Horwath HLBHorwath 12 Horwath Leading Edge Alliance

26. Scope Member Involvement-Conferences.

27. 2009 Training Initiatives Young Leaders Programme: Europe + Asia Pacific Young Managers Programme: Europe Nexia Academy: Germany Innovation Olympics: ANZ

28. Asia Pacific/European Young Leaders Programme Hosted in Beijing & Athens respectively Drew participants from 17 countries Focus on honing leadership capabilities and business development skills

29. European Young Managers Programme Hosted in Milan 20 participants from 11 countries Meet other Managers from across the network Improve core management skills Look at ways of working more effectively across international frontiers Improve verbal/written skills in English

30. Nexia Academy First Nexia Academy established in Germany Improve quality of training available to employees within national member firms Enable employees to expand network of contacts between firms

31. Annual Conference: Prague Biggest conference attendance in Nexia’s history with:  220 Delegates  100 accompanying guests  67 countries represented

32. Annual Conference: Prague

33. International Tax Conference: New York  100 delegates  25 accompanying guests  countries represented

34. International Conference: New York

36. ANZ Regional Conference – April 2010 ‘Sharing Success’ Outside facilitators. Record Attendance- full participation. Best Practice?

37. Future Conferences

38. 2010 Conference Schedule Asia Pacific: Mauritius 22-22 May International Tax Conference: New York, 12-15 May South America: Quito, Ecuador (13-15 June) Annual Conference: Dubai, 10-14 November

39. Board activity: major issues 2009-10 Done  International Risk Review  Removal of Referral Fees  Amended Constitution  Improved Financial Reporting  Recruitment of Executive Director

40. Board activity: major issues 2009-10 To Do  Review/reorganisation of Nexia Structure  Amalgamation of Europe and MEA regions  Network/Association Review  Strategy Development

41. Amalgamation of Europe + Middle East & Africa regions  Consistent with international structure of peer organisations, networks & associations  Enables Nexia to strengthen resources/capacity of Middle East & Africa firms through access to European resources on quality/training & education and marketing  Continue to maintain regional identity of Europe/Middle East/African groups within larger structure  Decision to be taken at November Council meeting

42. Network/Association Review  Substantial discussion of Nexia positioning with input from Audit Committee & legal advisers  Board endorsed global positioning as a network – and behaving as if a network  Audit Committee tasked with assessing and introducing procedures to ensure compliance with independence requirements

43. Network/Association Review  Board agreed to allow U.S. Members – and other jurisdictions where beneficial – to position themselves as an association within (only) their own country.  Consequences  National peer review (plus “Executive Review” of issues not considered through national review), provided that national review is of a sufficient level of quality to satisfy the requirements of the Nexia QCR programme  Reference to “network” may be dropped

44. 2010 – 2015 Strategic Plan

45. Purpose  Understand where Nexia is currently positioned in terms of its strengths and weaknesses  Establish a vision of where we want to be in 3-5 years time  Identifying a clear set of measurable, achievable objectives and tasks  Identify and provide resources to achieve them

46. Strategy sub-group appointed by Board  Norbert Neu (Chairman, Germany)  Tom Marino (Director, USA)  Jeremy Boadle (Director, UK)  Henry Tan (Director, Singapore)  Kevin Arnold (Executive Director, UK)  Roy Hoffman (Advisor, USA)

47. Process: 2009  Strategy Sub-group made initial presentations to March’09 & May ‘09 Board meetings  June 09 – Sep 09: Members complete Strategic Planning Questionnaire  09 Annual Conference: Delegates review and discuss Questionnaire results

48. Process: 2010  Feb - Apr: SWOT Analysis  Strategy sub-group to prepare Summary Paper to be reviewed at May Board meeting  Summary presentation to be made at regional conferences  June – October: Strategic Plan prepared & approved by Board  November Annual Conference: Strategic Plan launched

49. Draft Mission Statement “ Nexia International is a leading worldwide network of independent, high quality and innovative firms who aim always to provide clients with the highest standards of national and international audit, accounting, tax and advisory services in a seamless, personal and tailored manner”

50. Draft Strategic Objectives: 1  Enhance Nexia’s profile internationally by providing advice to firms on methods to demonstrate a high level, seamless approach to their local marketplace

51. Draft Strategic Objectives: 2  Review and disseminate individual member firm’s responsibilities in helping Nexia to achieve its mission

52. Draft Strategic Objectives: 3  Establish a referral database system designed to improve and assist referral business flows across the network

53. Draft Strategic Objectives: 4  Review and where necessary improve and develop our presence in major financial centres

54. Draft Strategic Objectives: 5  Create more opportunities to bring members closer together to enhance the benefits of membership

55. Draft Strategic Objectives: 6  Raise the level of confidence between members by establishing and maintaining processes to encourage the improvement of member firm performance in all areas

56. Draft Strategic Objectives : 7  Encourage the continued development of specialist forums and committees in order to improve knowledge sharing opportunities throughout Nexia.

57. Comments or Questions?