Being a catalyst for change Doing the right thing

www.pwc.lu

2015 Annual Review

Our business at a glance

Our market position

Who has joined us

Our revenues

Supporting entrepreneurship

Our people

2,600 people

Over 12,000 people applied for a job with us this year

Over 850 people joined us this year

Tax

EUR337 millions

Gross revenues 2015

Audit

41%Advisory

24% 30%+7%

#1 PwC’s Accelerator is the first international platform designed to help companies go global faster and smarter

Other audit services

5%

Table of contents

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In conversation with John Parkhouse, our CEO

Creating a responsible business

Proud to be at PwC

Leading by example

Becoming a category of one 1

In conversation with John Parkhouse, our CEO

Being a catalyst for change

Our vision is clear: to be truly distinctive in the value we bring; in the experience our clients receive; and in the solutions we provide. How we achieve this is equally clear – through a relentless focus on making PwC a great place to work; and through evolving a culture of constant challenge to make everything we do better – and in doing so, ensuring we are doing the right thing by our clients; our people and with the community. Only by fielding the best teams; by constantly challenging and transforming what we do; and by doing so with a guiding purpose based on establishing trust and solving problems, will we become distinctive.

A great team, not a team of greats

At PwC, we are fortunate to attract some of the top talent available – from anywhere. We pride ourselves today in having one of the most forward thinking people cultures in the market as well as one of the most globally diverse workforces – with 58 countries represented. But this is not enough for the world of tomorrow. We will continue to transform our workplace to create an environment which encourages building distinctive teams through trust, flexibility and establishing a real sense of purpose across the firm.

Making transformation our “fil rouge”

The world is undergoing major change. At PwC, we have a long history of transformation and innovation and this will be fundamental to our success tomorrow. Our focus will be not only on what we can bring to our clients, but also on integrating the right technology to solve our clients’ problems.

I am delighted as newly elected CEO to welcome you to our 2015 Annual Review. We performed well over the last year. Our revenues grew by 7% to EUR337 million – a strong performance that reflects continuous demand for our expertise and services across a great variety of international and local clients.

2015 has been a memorable year for PwC in many ways. First, we moved to Crystal Park, bringing together our People in a welcoming and sustainable environment. We’ve also changed our management team, giving our firm other perspectives. In addition to these changes, we all experienced the impact of the document theft, notoriously known as LuxLeaks. It is a real credit to our community in Luxembourg that we have not only weathered the storm, but have emerged as leaders in the international tax debate as well as retaining strong growth across the economy. It is truly in difficult times such as these, that we can feel the unique spirit of Luxembourg. Through all this, the country remains strong and vibrant and it is with a high degree of optimism that I look forward to the opportunities which the coming years will bring.

* Projection to 1 January 2016.

In conversation with John Parkhouse, our CEO

Doing the right thing

As the 6th largest employer in Luxembourg, we have a responsibility to not only contribute to supporting Luxembourg’s growth, but also to making a positive impact on the broader community. We already have many initiatives aimed at supporting the social fabric as well as significant investment in Luxembourg as a hub for business. Going forward, we will further increase our systematic focus on providing distinctive value to Luxembourg; our aim is to bring sustainable value to the community by aligning our skills and interests in areas where PwC can truly make a positive impact – where we can be a positive catalyst for change.

Luxembourg is in itself a unique community – a fantastic place to live and do business. Our vision is to develop distinctive talent; to lead transformation of our sector and to relentlessly support the continued development of Luxembourg as a powerful brand – to help ensure Luxembourg remains distinctive and in so doing, to become distinctive ourselves.

Our Management Team

Steven LibbyChief Transformation Officer

Jean-François KroonenAdvisory

Rima AdasManaging Partner, Network Business Development

Wim PiotManaging Partner, Tax

José-Benjamin LongréeClients and Markets

Anne-Sophie Preud’hommeCompliance & Risk

Catherine RückelStrategy

Christophe PittieAudit & Assurance

Marc SchernbergPeople

Patrice WaltzingFinance and Operations

Becoming a category of one 3

Along with my Leadership Team, I will endeavour to implement the firm’s strategy into daily operations to the benefit of our clients and our People.

Creating a responsible business

Supporting the national growth

Our firm is an integral part of the country’s highly successful professional and business support services sector, which contributes to gross domestic product. Our commitment to promoting Luxembourg as a centre of excellence remains steadfast. Our economy has been solid. Luxembourg has kept its AAA rating. Luxembourg is undoubtedly an enabler for business. We relentlessly continue to make sure that Luxembourg is known for its concrete value proposition. The country provides a central location from which companies can manage their operations in Europe. It is also the location of choice for firms working in Big Data and turns out to be an attractive proposition for recruiting talent from around the world. Thanks to PwC’s Accelerator, top-flight technology companies have set up in Luxembourg.

Being the number one professional services firm in Luxembourg means more to us than size and reputation. It’s also about taking a leading role on the issues that affect our clients and markets, from digital transformation to tax reform. As an example, we provided public commentary on the obsolescence of the global tax system, long before the Luxleak scandal broke. The world is changing and our focus over the last year has been to continue to adapt, transform and diversify our business. To keep pace with the evolving economic landscape we’ve refreshed our processes and solutions. Embracing change has allowed us to help our clients to solve new and increasingly complex problems, so they can grow, employ new people and invest.

PwC’s Accelerator has been helping to accelerate and streamline the international expansion of +30 companies from ten countries to create sustainable value.

Creating a responsible business

Embracing regulatory changes

Supporting banks and investment firms leaping into new operating models

Further to the financial and banking crisis, the fight against the tax shortfalls has become a hot topic for all the governments all around the world. In this respect, new regulations are being implemented, i.e. FATCA and CRS. Luxembourg government actively participated in turning the international political intentions into reality for greater transparency. The country is now fully compliant with the new OECD standards, which have set up rules for a well-balanced equilibrium between transparency, compliance and client’s needs for a high level of privacy protection. We’ve come up with suited solutions, including FATCA reporting, to help players be fully compliant.

Contributing to the tax debate

Tax remains an important and emotive topic, and we are delighted to see that the conversation and public commentary on the obsolescence of the international tax framework stimulated the debate for greater transparency. The OECD’s BEPS action plan turns out to be the greatest effort to update the international tax system and boost transparency. We think the BEPS package is an important step in the overdue need to restore broad-based confidence in the international tax system. Since the first signs of emergence of this plan, we’ve engaged with the marketplace to provide technical information. Part of the challenges of the BEPS plan we‘ve raised is the additional complexity, vagueness of the rules and the limited progress in addressing the digital tax issues.

Part of the OECD’s plan is dedicated to transfer pricing. Since 2011, Luxembourg has been committed to transparency by expanding its legislation on transfer pricing. On 1 January 2015, the Luxembourg Government reiterated its commitment to increasingly regulate transfer pricing by passing a new law on transfer pricing. This new regulation clarifies the obligations of information and documentation for all transactions (e.g. goods, services, financial transactions and intellectual property) made between associated companies. We’ve hired transfer pricing experts from all over the world to strengthen our team to more than 20 people and help Luxembourg-based companies comply with new requirements.

We audit 5,424 sub-funds*

International Tax Review awarded us as Luxembourg Transfer Pricing Firm of the Year 2015

The largest audit market share in the fund industry

Our Transfer Pricing practice recognised

Becoming a category of one 5

Asset management represents more than half of our workforce. Our ambition is to build trust in this community by helping our clients with their business issues all along a vehicles’ life cycle. *Monterey

Proud to be at PwC

Empowering our People

As the sixth largest private employer in the country, we feel we have a responsibility to provide a working environment that fosters the continued personal and professional development of our employees.

Our People told us that they value the opportunities we give for them to progress. Most of their development comes from on-the-job training and challenging client missions. We support them in this through a range of flexible learning programmes. This year, our People spent an average of nine days in training. In total, this represents nearly nearly 195,000 hours, from 180,000 last year. We also encourage our People to develop their professional skills by participating in external training courses, preparing for and taking exams or writing a thesis. This year, 346 of them have enrolled in professional qualification curriculum and 271 have taken individual training leaves.

In the spirit of staying on the move, we also give our talents the possibilities to change departments thanks to our internal mobility programme. They can discover alternative career opportunities while getting to know new people and new industries.

This year, 55 of our People moved abroad while 44 professionals from all over the global PwC network decided to see what our Luxembourg office is all about.

Our People are the essence of our firm. They have a fundamental role to play in helping us become a category of one. To achieve our performance ambitions, we need to attract, develop and retain a highly talented group of people. We go to great lengths to create an environment that provides opportunity, growth and new experiences so that every individual can reach their full potential.

Proud to be at PwC

Mens sana in corpore sano

We know that our talents can create maximum value for our clients only if they’re content and fulfilled in their professional and personal life. Therefore, taking care of their health is a top priority for us. Our “Mind Your Self” programme offers various workshops based on four pillars - Mental, Emotion, Body and Relations, delivered by certified external trainers. Thanks

Making difference our strength

We believe that investing in a broad range of skills, experiences and backgrounds puts us in a stronger position to understand and meet the needs of our clients. This year we have continued to recruit a more diverse range of talent, in particular to encourage more women and attracted people from 58 different countries.

We want to see a greater cultural and gender diversity in our business. Through the work we have done to create a strong pipeline of talent, we are making progress. This year, nearly 46 % of our People were women. We’ll continue to focus on setting and monitoring gender and diversity targets at all levels.

166 People were promoted to managerial roles

170 people minded about themselves

This represents the rate of people engaged based on their satisfaction, intention to stay with us, pride and recommendation as a great place to work

Our “Women & Men @PwC” initiative form an integral part of our corporate culture.

We recruited 850 people from around the globe.

Rewarding talent Valuing gender diversity

Top recruiter

Mind Your SelfPeople engagement

74%

to our gym facilities available in our new building, we’ve launched a new programme called Sport @PwC, offering five different classes, from yoga to cross-training.

166 Experienced people

418 Graduates

202 Trainees

61 Students

Becoming a category of one 7

46%

54%

Doing business responsibly

We know that sustainability is a journey, not a destination. The destination is a better future for coming generations, in a safer and cleaner environment. Through our services, we try to underpin ethics, transparency and trust in a broader business context and contribute to economic development.

We think Corporate Responsibility can add value to our brand. It can also give us a purpose and the trust we need. While it’s our duty as a firm to drive and enable corporate responsibility, it’s our duty as individuals to make it successful. So, we’ve based our strategy on our strengths and opportunities and apply our skills to deliver both business and social value. To make this strategy real, we are committed to:

Doing the right thing – behaving responsibly on issues that are central to our business, to the environment and to society; and

Being a catalyst for change – using our skills, voice and relationships to influence and work with others to make a difference, generate change and create a lasting impact on the world around us.

Leading by example

In 2015, our sustainability practice was recognised

Green Advisory Award

Sharing our insights by being members of industry associations

Building trust in society

When it comes to ‘building trust’, we typically think about trust in the capital markets. But we also play a vital role in building trust in society, a more inclusive and far-reaching goal. We contribute to solving important challenges that extend into societal issues beyond our clients’ immediate needs.

Improving our environmental performance

Our clients, our people and other stakeholders expect us to minimise our impact, and as a responsible business whose operations ultimately rely on natural resources, we want to do everything we can.

So, minimising the environmental impact from our operations is one of our main sustainability objectives and our strong relationships with our clients, people, and suppliers leave us well placed to achieve this.

As a professional services firm our environmental impact comes mostly from carbon emissions generated by business travel. Our Commuting@PwC solution encourages either the use of public transportation or blended transportation methods (private and public).

Becoming a category of one

Leading by example

Over the course of the year, we released our 2020 thought leadership series, where we assess ‘The Future of Financial Services’. This initiative aims to identify future challenges for our clients and activities to support them in overcoming these.

Supporting tomorrow’s entrepreneurs

Taking up the mobility challenge

Decreasing our energy and waste impact

Volunteering

Being at the forefront of the biggest issues shaping the future landscape for financial services Carsharing - We hit more than

8,000 usages from the Q2 2013 to Q3 2015.

All our people have access to M-Pass. 11 new bus lines and 8 train lines are part of the network.

Our People volunteered 600h in communities in Cambodia, Benin and Togo.

We participated in the “Fit for life ” programme and introduced different aspects of personal and professional lives

to secondary school students.

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Saving Resources

Down

21%

Down

31%

Down

43%

excellent73%

PwC Luxembourg (www.pwc.lu) is the largest professional services firm in Luxembourg with 2,450 people employed from 55 different countries. It provides audit, tax and advisory services including management consulting, transaction, financing and regulatory advice to a wide variety of clients from local and middle market entrepreneurs to large multinational companies operating from Luxembourg and the Greater Region. It helps its clients create the value they are looking for by giving comfort to the capital markets and providing advice through an industry focused approach.

The global PwC network is the largest provider of professional services in audit, tax and advisory. We’re a network of inde-pendent firms in 157 countries and employ more than 195,000 people. Tell us what matters to you and find out more by visiting us at www.pwc.com and www.pwc.lu.

© 2015 PricewaterhouseCoopers, Société coopérative. All rights reserved. In this document, “PwC Luxembourg” refers to PricewaterhouseCoopers, Société coopérative (Luxembourg) which is a member firm of PricewaterhouseCoopers International Limited (“PwC IL”), each member firm of which is a separate and independent legal entity. PwC IL cannot be held liable in any way for the acts or omissions of its member firms.

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