Regional Presentation

Norbert NeuChair

Agenda

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

Strategy

• Strategic Review 2010-2015

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

Strategy plan consists of:

Mission Statement Vision Statement 7 Strategic Objectives 49 Tasks Mainly delivered

2010 2011 2012 20130

0.5

1

1.5

2

2.5

3

3.5

Nexia facts

Financial performance 2010-2013

US$2.1 US$2.3 US$2.8 US$2.9

4% increase

US

dolla

rs (b

illio

n)

21% increase

9.5% increase2% increase

Audit Committee Output (1)

• Appointment of Audit Director (Mohammed Yaqoob)• NIMo – the enhanced version of NIMo launched 2012• Mentoring Scheme

Audit Committee Output (2)

• Online 2013 annual audit, tax and PII survey

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

Tax Committee Output (1)

• Appointment of Tax Director(Mike Adams)

• Nexia International Tax Academylaunched

• Continuing strong support for EMEA tax group,

Asia/Pacific tax group and GMTS conference• First ever tax resource

survey launched

Tax Committee

Tax Committee Output (2)

• International Tax Handbook chapters kept up-to-date on website

• Tax members contributing to cross-border database

Tax Committee

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

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

Business Development Output (1)

• CrossBorder database• Nexia proposal guidance • Nexia proposal template

Business development highlights

Business Development Output (2)

• Other tools include:– “About Nexia” presentation– “Tender alert” emails

Business development highlights

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

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

Obligations of membership (2)

Non compliant firm procedure

Performance Management (1)

What impact has it had?

27 firms left over last four years.

Performance management (2)

Obligation Non compliance/non response October 2010

Non compliance/non response October 2013

Fee income survey 96 19

Non payment of fees 51 3

Complaints 6 1

Website global directory 80 11

Audit questionnaire 85 32

Conference participation 15 1

Branding NEW

How are we doing?

Performance Management (3)

How have we performed over the past 5 years?

• Improved quality of services of members• Improved responsiveness of members

Where do we go from here?

On-going improvements

• Quality• NIMO• Coverage• Ranking

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?

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

Chief Executive’s Report

Kevin Arnold

Nexia International – Executive Director’s Report 14 April 2012 - London

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

Start Points & Stats

Scope

Nexia International – Executive Director’s Report

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

Annual Conference 2013, Shanghai

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.

Annual Conference 2014

• 13 – 18 October 2014• Hotel Arts• Audit forum, Special

Interest Groups/workshops• Accompanying partner

programme

Barcelona, Spain

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

• increased networking opportunities: over 1,000 Nexia members attended conferences, meetings, or seminars in 2013

Miscellaneous Benefits

Implementation of the Strategic PlanThe last five years

Meetings and networking events 2013

Board Meeting and Committee Meetings 52SIG meetings 60 ETG Meeting, London, UK 80Umbrella Group Meeting, London, UK 13EMEA Regional Conference, Marrakech, Morocco 110PDT: New Partners, Madrid, Spain 12Central & Eastern Regional Conference, Lviv, Ukraine 40International Tax Conference, Rome, Italy 112Tax Training Course, Leiden, The Netherlands 14EMEA Tax Group Meeting, Malta 61Umbrella Groups Internal Meetings 400GMTS Meeting, Bucharest, Romania 33NC&S America Regional Conference, Costa Rica 75AP Young Leaders + Advanced Young Leaders, Kuala Lumpur, Malaysia 20AP Tax Conference, Kuala Lumpur, Malaysia 25AP Regional Conference, Kuala Lumpur, Malaysia 40International Conference, Shanghai, China 214

Total 1361 attendees

• 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 PlanThe last five years

Scope

Turbulence in Mid-Tier Networks

Nexia International – Executive Director’s Report 14 April 2012 - London

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.

Scope

Scale of our Network

Nexia International – Executive Director’s Report 14 April 2012 - London

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

Nexia facts

Regional composition: 2013

North & Central America, 50%

revenue

South America, 1% revenue

Europe, Middle East & Africa,

41% revenue

Asia Pacific, 8% revenue

Nexia facts

World fee data 2014Rank Name Fee Income

($m)Growth rate (%)

1 Deloitte 32,400.00 42 PwC(1) 32,088.00 23 Ernst & Young 25,892.00 64 KPMG(1) 23,420.00 25 BDO (1)(2) 6,453.10 76 Grant Thornton International 4,519.00 87 RSM International (3) 3,714.10 -78 Baker Tilly International 3,404.20 39 Crowe Horwath International

(4)3,168.20 3

10 Nexia International 2,918.00 311 Moore Stephens International 2,682.10 1712 PKF International (5) 2,523.00 -613 Kreston International 1,944.60 -114 HLB International 1,678.60 715 Mazars 1,377.20 6

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.

Nexia facts

Regional ranking: Asia PacificRank Name Revenue ($m) Staff

1 PwC 11,640.00 45,6242 Deloitte 10,943.00 41,1253 KPMG 3,900.00 32,0424 Ernst & Young 2,934.00 29,8935 BDO 1,099.20 13,9346 Crowe Horwath International 765.80 10,8497 Baker Tilly International 658.40 7,4158 RSM 574.90 10,0009 Grant Thornton International 567.00 8,339

10Moore Stephens International 500.70 9,266

11 Kreston International 378.20 6,71112 PKF International 310.00 2,98713 HLB International 291.90 4,93314 Nexia International 250.50 4,60915 Reanda International 112.90 1,700

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

Agenda

• marketing update• communications update• business development update

• South Korea: 6th

• Japan:10th

Nexia’s position in Asia

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

Rank Name Revenue ($m) Staff1 Ernst & Young* (1) 10,750.00 58,8352 KPMG* 7,880.00 42,5443 PwC 1,481.00 17,4064 Deloitte 1,300.00 19,2265 BDO 194.90 3,9076 Grant Thornton International 169.00 3,7847 RSM 98.70 2,4198 Crowe Horwath International 96.20 2,6189 Moore Stephens International 77.30 2,708

10 Baker Tilly International 75.80 1,75411 SMS Latinoamerica 67.80 1,91312 Russell Bedford International 56.00 1,53713 Kreston International 53.80 1,68114 PKF International 51.00 1,40215 Nexia International 47.50 1,371

Agenda

• marketing update• communications update• business development update

Nexia’s position in S America

Brazil :10th

Nexia facts

Regional ranking: Middle East & AfricaRank Name Revenue ($m) Staff

1 KPMG* 11,640.00 80,5942 Ernst & Young* (1) 10,943.00 84,2243 PwC 1,074.00 11,5784 Deloitte 900.00 9,3745 Grant Thornton International 135.00 2,7626 BDO 124.40 2,4987 PKF International 95.00 2,8728 Baker Tilly International 88.80 1,5699 Mazars 87.50 2,196

10 RSM International 59.40 1,40411 Crowe Horwath International 52.70 1,07512 Moore Stephens International 48.80 1,31413 Kreston International 46.20 1,20214 Nexia International 43.60 1,05115 HLB International 34.80 977

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.

Agenda

• marketing update• communications update• business development update

Nexia’s position in Africa

South Africa : 8th

Nexia facts

Regional ranking: EuropeRank Name Revenue ($m) Staff

1 PwC 12,638.00 67,9312 KPMG* 11,640.00 80,5943 Ernst & Young* (1) 10,943.00 84,2244 Deloitte 10,300.00 62,4525 BDO 2,475.00 19,7426 Grant Thornton 1,778.00 12,9367 Nexia International 1,162.40 8,3038 Baker Tilly International 1,131.10 8,1959 Mazars 1,003.50 7,623

10Moore Stephens International 979.90 8,140

11 HLB International 829.30 6,43112 Crowe Horwath International 772.50 7,03413 Kreston International 670.50 6,62214 RSM 579.20 5,05915 PKF International 550.00 5,212Source:

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.

Agenda

• marketing update• communications update• business development update

Nexia’s position Europe

• Germany: 5th

• UK: 7th

• The Netherlands: 9th

• Russia: 9th

Nexia facts

Regional ranking: North AmericaRank Name Revenue ($m) Staff

1 Deloitte 15,000.00 70,7042 PwC 11,547.00 41,6973 Ernst & Young* (1) 10,750.00 58,8354 KPMG* 7,880.00 42,5445 BDO 2,559.60 16,3086 RSM 2,401.90 13,0147 Grant Thornton International 1,871.00 10,7228 PKF International 1,517.00 8,3289 Crowe Horwath International 1,481.00 7,838

10 Baker Tilly International 1,450.10 7,91311 Nexia International 1,414.00 7,79712 Moore Stephens International 1,075.40 5,65313 Kreston International 795.90 3,87614 HLB International 487.20 3,00815 UHY International 206.50 1,086

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

Nexia facts

Country ranking 2014: USRank Name Fee income

($m)Growth rate (%)

1 Deloitte 13,894.00 62 PwC 11,042.00 93 Ernst & Young 9,100.00 114 KPMG 6,140.00 75 BDO (1) 2,072.00 96 PKF International (2) 1,393.00 97 Crowe Horwath International (3) 1,390.60 38 RSM International (4) 1,366.60 69 Nexia International 1,359.20 3

10 Grant Thornton International 1,322.90 911 Baker Tilly International 1,182.30 -112 Moore Stephens International 1,041.50 1213 Kreston International 782.10 -1414 HLB International 445.40 815 UHY International 196.80 2

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.

Nexia facts

Country ranking 2013: USRank Name Fee income

($m)Growth rate (%)

1 Deloitte 13,067.00 92 PwC 10,157.00 153 Ernst & Young 8,200.00 94 KPMG 5,753.00 75 Crowe Horwath International 1,345.40 46 Nexia International 1,313.40 657 RSM 1,283.40 08 PKF North America 1,275.00 109 Grant Thornton International 1,216.90 8

10 Baker Tilly International 1,188.40 -1411 Moore Stephens International 931.10 012 Kreston International 906.10 613 BDO 618.00 814 HLB International 411.80 -5115 UHY International 188.20 1

Source:IAB Country Survey 2013: US market gets fast and furious. Network fee table.International Accounting Bulletin (IAB), 25 February 2013.

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 – 25th to 28th 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

Marketing and business development

Dal Cheema - Nexia International

• 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

• 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

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.

• EU compromise on audit reform – will be covered by a later presentation.

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.

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

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

Any questions?