KPMG True Value webinarThe Sustainability P&L

Moderator: Raajeev B BatraSpeakers: Arjan de Draaijer and Santhosh Jayaram

25 October 2016

© 2016 KPMG Lower Gulf Limited and KPMG LLP, operating in the UAE and Oman, member firms of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

Document Classification: KPMG Confidential

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A short history of KPMG’s True Value

20142013 2015 2016 2017

2015Holcim publishes firstever integrated P&L statement

2016True Value of Mitsubishi Elevators

2016KPMG supports launch of Natural Capital Protocol

2015KPMG (with WBCSD) publishes Social Capital in decision making

2014KPMG publishes A New Vision of Value

2013True Value of Ambuja Cement

2015VolvoTrue Value ofelectric buses

2015VodafonepublishesEP&L

2014Dutch Railwayspublishes social impact

2015True Value Safaricom M-PESA payment system

*The logo and brands are the intellectual properties of the respective owners

© 2016 KPMG Lower Gulf Limited and KPMG LLP, operating in the UAE and Oman, member firms of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

Document Classification: KPMG Confidential

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Why? How?

The why and how of True Value

Quantify positive and negative externalities in financial terms

Assess rates of internalization and thelikely impact on future earnings

Develop business cases that drivestrategy by capturing value, creatingopportunities and reducing risks

1DRIVE STRATEGY

— Provide fact-based quantitative analysis to buildnext generation strategies

— Increase future revenues— Reduce and/or avoid future costs— Identify risks to future earnings— Improve internal decision-making

INCREASE INFLUENCE

— Build objective base for advocacy with policy makers and stakeholders

— Improve investor relations by describing integrated costs and benefits in financial terms

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3

Case studies

© 2016 KPMG Lower Gulf Limited and KPMG LLP, operating in the UAE and Oman, member firms of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

Document Classification: KPMG Confidential

5

Ambuja Cement

“Such a 360-degree strategy to drive sustainability can enable us to maximize future profitability along with inclusive growth” – Ajay Kapur, CEO

DRIVESTRATEGY

INCREASE INFLUENCE

Ambition Business impact

• Lead the Indian cement industry• Cement leadership position

within the Holcim group

• Set clearer targets• Integrate targets into strategy

• Lead the green building segment

• Improved communication with all stakeholders

• Mid-term scenario based planning

• True value as part of capital investment decisions

© 2016 KPMG Lower Gulf Limited and KPMG LLP, operating in the UAE and Oman, member firms of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

Document Classification: KPMG Confidential

6

Ambuja Cement

© 2016 KPMG Lower Gulf Limited and KPMG LLP, operating in the UAE and Oman, member firms of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

Document Classification: KPMG Confidential

7

Ambuja Cement

© 2016 KPMG Lower Gulf Limited and KPMG LLP, operating in the UAE and Oman, member firms of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

Document Classification: KPMG Confidential

8

Ambuja Cement

STEP 3 / Prioritize future investments to create societal as well as corporate value.

© 2016 KPMG Lower Gulf Limited and KPMG LLP, operating in the UAE and Oman, member firms of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

Document Classification: KPMG Confidential

9

Volvo Buses

DRIVESTRATEGY

INCREASE INFLUENCE

Ambition Business impact

To become the world leader in sustainable transportation

Targets for sustainable transportation, shared values and responsible behavior

Shifting to fully electric buses in cities, starting in Gothenburg

True total cost of ownership

© 2016 KPMG Lower Gulf Limited and KPMG LLP, operating in the UAE and Oman, member firms of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

Document Classification: KPMG Confidential

10

True total cost of ownership (True TCO)

https://home.kpmg.com/content/dam/kpmg/pdf/2015/10/volvo-group-kpmg-true-value-case-study.pdf

© 2016 KPMG Lower Gulf Limited and KPMG LLP, operating in the UAE and Oman, member firms of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

Document Classification: KPMG Confidential

11

Vodafone (NL)

“If we are to be a leader in our sector, we need to assess our company not only on the traditional financial ratios, but on the value we create for society at large.” Rob Shuter, CEO Vodafone NL

DRIVESTRATEGY

INCREASE INFLUENCE

Ambition Business impact

Improve transparency for stakeholders

Help customers to save 25 times the amount of carbon Vodafonegenerates though own activities

Use results to support sales of new products and services

Use insights to sharpen risk strategies and make better investment decisions

https://www.vodafone.nl/_assets/downloads/algemeen/environmental_profit_and_loss_account_2014_2015.pdf

© 2016 KPMG Lower Gulf Limited and KPMG LLP, operating in the UAE and Oman, member firms of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

Document Classification: KPMG Confidential

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Dutch Railways (NS)

DRIVESTRATEGY

INCREASE INFLUENCE

Ambition Business impact

• To be a leader in transparency• Started measuring True Value in

2013

By 2018, NS wants to source all electricity from wind farms and cut energy use by a third

First company in Netherlands to publish monetized information in its annual report in 2014

Use True Value to inform investment decisions

© 2016 KPMG Lower Gulf Limited and KPMG LLP, operating in the UAE and Oman, member firms of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

Document Classification: KPMG Confidential

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Some NS statistics

https://home.kpmg.com/content/dam/kpmg/pdf/2015/06/ns-dutch-railways.pdf

Q&A

kpmg.com/socialmedia kpmg.com/app

© 2016 KPMG Lower Gulf Limited and KPMG LLP, operating in the UAE and Oman, member firms of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

The KPMG name and logo are registered trademarks or trademarks of KPMG International.

The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.

Thank youRaajeev B BatraPartnerHead of Risk Consulting

KPMG in the UAE and Omanraajeevbatra@kpmg.com

Arjan de DraaijerPartner | Climate Change and Sustainability

KPMG in the Netherlandsdedraaijer.arjan@kpmg.nl

Santhosh JayaramPartner | Climate Change and Sustainability

KPMG in Indiasanthoshj@kpmg.com