PwC Annual Report 2014/2015

Transcription

www.pwc.nl
Annual Report
2014/2015
Contents
Foreword
Key statistics
Report of the Supervisory Board
Contents
Report of the Board of Management
Financial statements
Information about PwC
Appendices
Foreword from our Chairman Key statistics
3
7
Interview: A workplace for finding those hidden connections
9
Report of the Supervisory Board 11
Interview: Technology with a fiscal mind set
17
Report of the Board of Management19
PwC Netherlands
About the Report of the Board of Management
Creating value
Stakeholders and materiality
Our strategy and achievements Risk factors Governance and remuneration
Expectations for the future
20
21
22
23
28
51
53
59
Interview: ‘It’s logical behaviour, but we don’t always do it’
58
Financial statements Holding PricewaterhouseCoopers
Nederland B.V.60
1. Consolidated financial statements
2. Company financial statements
3. Other information
62
84
92
Interview: Entrepreneurship with social focus
101
Information about PwC103
PwC in the Netherlands has more than 4,400 people operating from twelve
offices and from three different perspectives and lines of service: Assurance,
Tax & HRS and Advisory. We deliver sector-specific services and we seek
innovative solutions, not only for national and international companies but
also for public sector and civil society organisations.
‘PwC’ is the brand name under which member firms of
PricewaterhouseCoopers International Limited (PwCIL) operate and deliver
their services. Together these firms make up the global PwC network, within
which some 195,000 people in 157 countries share their ideas, experience
and solutions in developing new perspectives and meaningful advice.
In this report, the terms ‘PricewaterhouseCoopers’ and ‘PwC’ also refer to
Holding PricewaterhouseCoopers Nederland B.V. and, depending on the
context, its consolidated Dutch group companies. Collectively, these are
also referred to as ‘PwC Netherlands’, ‘PwC NL’ or ‘the Group’.
Our legal structure
Corporate Governance
The Board of Management
Code of Conduct and complaints procedure
Our framework for quality and risk management
Our approach to sustainability
Breakdown of our organisation (in number of people)
104
106
110
112
113
117
119
Interview: Decision-making with both sides of the brain
120
Appendices122
Five-year summary of financial results
Remuneration Report Holding PricewaterhouseCoopers Nederland B.V.
Scope of this Annual Report
GRI table 4.0
Glossary
Acknowledgements
GRI
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123
124
129
131
139
140
Contents
Foreword
Key statistics
Appendices
Foreword from
our Chairman
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Foreword
Key statistics
Appendices
Foreword from our Chairman
A well-known saying from our grandparents’ generation was ‘the
tougher the better’, and I have heard our children’s generation say
‘right, let’s go for it’. Two sayings from past and recent years that so well
characterise the year we have just been through. It has been an eventful
year: the critical messages from society about professional service
organisations, the debate about the role of the tax adviser, and the
AFM’s reporting of deficiencies in our audit files.
In addition to this, we are also experiencing a great deal of activity
in the market facing areas of our organisation: the integration of
Strategy& into our global network (and thereby increasing our
relevance to our clients), the growth in Consulting, the ongoing success
of the Deals practice and the growing importance of technology on our
service offering and delivery. Not to mention, of course, the new clients
that we have been able to welcome as a result, amongst other things, of
audit firm rotation in the PIE segment. At the same time, we are being
increasingly successful in translating our purpose (which is to build
trust in society and solve important problems) into what we do and
what we plan to do.
In transition
We are an organisation in transition on a number of fronts: governance,
international integration, audit business model and cultural and
behavioural patterns. As a firm, we are proud of the successes we have
achieved.
At the same time, we recognise only too well that we are not there yet.
Transforming a culture and a modus operandi will take time, but we
are working very hard to get it done. Our entire organisation is aware
that society is changing and changing fast. Expectations are also rising
apace. The way that supervisory bodies, politicians and the public react
to a whole host of issues is so different from what it was just a few years
ago. Ultimately, we must together restore trust in society. It is absolutely
essential that a new balance be found.
A social dimension
We need to increase our capacity for change. Alongside the technical
aspects of our profession as tax adviser, auditor or consultant, we
must also learn to understand what society thinks of us. Our primary
responsibility is the technical quality of what we do but, without a social
dimension, our audits and advisory services do not deliver the value to
our clients that they deserve. Our auditors, consultants and tax advisers
are becoming increasingly better attuned to the environmental factors
and trends that continue to impact our clients’ strategies. In all that our
tax advisers and auditors do (and, more importantly, in how they do it),
we need to reflect the perspectives of, for instance, the tax authorities,
the AFM (the Netherlands Authority for the Financial Markets), the
Dutch Central Bank and other stakeholders.
Greater transparency
The key to restoring trust is a greater level of transparency as to what
your organisation stands for and how you balance the differing interests
of the various stakeholders, and this includes sharing the dilemmas that
arise. Transparency lays the foundation for trust. Only by being as open
as possible about PwC’s internal affairs can we win back that trust. This
applies not only to us, but also to the clients that we audit or advise.
Because the world is changing so quickly, we must all be in a position to
justify what we have done and why, and within the context of an ever
evolving set of norms and values. Transparency is one of the best ways
to handle this.
In this spirit of transparency, our annual financial statements are
therefore fully in line with current thinking on integrated reporting and
with the GRI4 reporting guidelines. Together with the Transparency
Report, we believe that this provides the level of transparency that you
may expect from us.
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Foreword
Key statistics
Restoring credibility
During the past year, we have implemented virtually all of the measures
recommended for the audit profession by the sector report, and we
are in the process of wrapping up the final few. These sector measures
are important in terms of restoring credibility in the sector, and we are
convinced that they will contribute to quality improvement. At the same
time, we also realize that, despite all we do to avoid them, mistakes
will continue to be made and businesses will continue to go bankrupt,
and that the auditor will be called to account for his or her role therein.
Within the sector, we need to open up the debate on the boundaries
and preconditions that need to be put in place and within which this
accountability can be discharged with a greater level of transparency.
Since 2004, we have been preparing our Annual Report at the level of
PricewaterhouseCoopers B.V., a wholly owned subsidiary of Holding
PricewaterhouseCoopers Nederland B.V.
The most significant change to our governance, of course, is the
installation of the Supervisory Board. The Board has been in place as
our internal supervisory body since 1 May this year - and this has been
quite a change. The debates we have with the supervisory directors are
actually quite different from the debates we used to have in the past
with the Local Oversight Board. With the arrival of the Board, society
now has a very prominent place within our organisation.
Moments that matter
During this past year, we have initiated a cultural change movement
around the six key moments in the day-to-day practice of a professional
services organisation (‘Moments that Matter’). These key moments are
the following: the real relationship with the client, the real relationship
with society, the real relationship with your colleague, the real team
performance, the real evaluation discussion, and the real follow up on
the feedback received. It is a movement that underscores our aspiration
to really change our culture, more looking out rather than in, and more
listening and opening up to others – behaviour in line with the here and
now, as well as with our roles as tax adviser, consultant and auditor.
At this point, I would like to express my thanks to our SB members for
the time and energy that they are prepared to invest in our organisation,
each from his or her own individual professional background,
experience and expertise. The Board of Management is convinced
that the Board is contributing to the relevance that our organisation
has in society and that it will contribute to the trust of society in our
organisation.
In line with the measures recommended in the sector report, we have
installed our Supervisory Board at the level of our top holding company,
Holding PricewaterhouseCoopers Nederland B.V., and as from this year
we are also publishing consolidated annual financial statements at this
level.
Appendices
In addition to PricewaterhouseCoopers B.V., Holding
PricewaterhouseCoopers Nederland B.V. also has a number of other
interests in Dutch and foreign entities that operate for the benefit of the
global PwC network. Our share in the global acquisition of Strategy&
is also held at this level, pending the integration as from 1 July 2015.
The investments in these entities are therefore included in this Annual
Report. As in previous years, the substantive impact of these interests on
our results is minimal.
In our approach to corporate responsibility, we are focusing on providing
support to social enterprises, and you can read in this Annual Report how
we are going about this. More than a hundred start-up businesses with
a social mission submitted their business plans in the context of PwC’s
annual business plan competition, and PwC specialists are helping the
three winners bring their social enterprise dreams to life.
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Foreword
Key statistics
In three years’ time, we will have been operating in the Netherlands
for 125 years. Adapting to today’s realities is something we have done
throughout all those years. And, right now, we need self-reflection
more than ever before - and more rigorously than ever before. I see
around me that, while we are finding this difficult, we are also finding it
worthwhile – and it provides the energy we need to see us successfully
through this transition.
The challenge before us is to embrace the new, and not to hold on to
too much of the old. We will have transformed our entire organisation
within a couple of years and, in to achieve this, we need to concentrate
on increasing the learning capacity and adaptability of our organisation,
on openness and accountability towards society, and on technology and
team-crafted solutions.
Our people make the difference
Everyone in PwC has been tested this past year in terms of their agility
and resilience, a reflection on the raison d’être of our profession and on
their own individual roles in society. Our people have faced up to these
challenges with their heads, their hearts and their spirits. This was
clear from the staff satisfaction survey, in which we scored higher than
ever before and which is among the very highest throughout our global
network.
Appendices
On that note, I would like to express my great appreciation to all PwC
people for the fantastic work they have done and for the value added
they have contributed to our clients. This year, again, we have been able
to solve many important problems and contribute to the trust that the
world may have in our clients.
We hope you enjoy reading our Annual Report and that it contributes
to your understanding of our organisation. If you feel you are
missing anything or that some things could have been set out more
transparently, please let us know. The contact information is on the final
page of this report.
With best wishes,
Peter van Mierlo
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Foreword
Key statistics
Appendices
Key statistics
Client satisfaction slightly higher
See page 42-44
PwC NL revenues higher
on slightly lower results*
Client satisfaction
700
600
500
400
300
697.3
671.6
200
100
0
157.7
2014/2015
Net revenue
(€ millions)
Operating profit
(€ millions)
162.1
291.9
2014/
2015
7.9
2013/
2014
7.7
2014/
2015
7.7
2013/
2014
7.7
Tax & HRS
2014/
2015
8.3
2013/
2014
8.2
2014/
2015
8.2
2013/
2014
8.1
Advisory
2014/
2015
8.3
2013/
2014
8.1
2014/
2015
7.8
2013/
2014
8.1
See page 46
Tax & HRS results stable
285.3
69.1
2013/2014
et revenue (€ millions)
N
Operating profit (€ millions)
Profitable growth in Advisory
250
200
200
150
150
55.6
2014/2015
Assurance
2013/2014
Assurance results reduced by investment
in quality and PIE rotation
350
300
250
200
150
100
50
0
Recommendation
240.5
100
50
0
240.3
63.4
2014/2015
64.5
2013/2014
Net revenue (€ millions)
100
164.9
145.9
50
0
36.2
2014/2015
27.8
2013/2014
et revenue (€ millions)
N
* The five-year summary of our financial results is on page 123.
Key statistics
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Contents
Foreword
Key statistics
Staff numbers increasing
2014-2015 2013-2014
Partners
Professional Staff
Support Staff
Total
260
253
3.281
3.063
904
924
6%
20%
80%
86%
86%
2014/2015
Proud to
be working
at PwC
PwC offers good
opportunities for
personal development
22%
See page 32
74%
84%
82%
Appendices
2013-2014
74%
14-15
PwC recommended
as an attractive
employer
6%
2014-2015
4,445 4,240
Outstanding results of the staff satisfaction survey
72%
14-15
13-14
13-14
Training hours stable*
Per FTE
2014/2015
109
2013/2014
Per FTE
2013/2014
108
See page 38
* The definition of the number of training hours has changed since 2013/2014. The comparative numbers have been adjusted.
Key statistics
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Contents
Foreword
Key statistics
Appendices
A workplace for finding
those hidden connections
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Contents
Foreword
Key statistics
Big data is one of today’s
buzzwords. Everybody wants
a bit of it – or at least has the
feeling that they should want
a bit of it. So a team from PwC
has created the Data Experience
Lab, a physical workplace where
both clients and colleagues can
make their first (and also later)
acquaintance with big data.
The Lab is a space not like any other in
PwC’s Amsterdam head office. What really
stands out is an enormous video wall which
the ‘lab technicians’ can use to project their
data experiments. There are hip seating
arrangements – the word ‘chairs’ doesn’t really
do them justice – in which folks can sit or hang
out either on their own or in pairs. And just to
complete the picture, the Lab is not just for big
data experimentation – there’s also a 3D printer
and virtual reality glasses.
Setting the scene
Project manager Gunilla Verbeke,
econometrician and data analyst, says the lab
is not called Data Experience Lab for nothing.
Those gadgets are there to reinforce the
experience. ‘It sets the scene for thinking into
the future. We were looking to create a space
that is both technological and creative, because
we want to encourage people to think outside
their own boxes.’
Sponsor and PwC partner, André Mikkers,
likens it to a showroom: ‘If you buy an Italian
car, the showroom has marble floors and you
get top-quality espresso. Atmosphere is critical
for showing a product off to its best.’
PwC Jaarbericht
Annual Report
2014/2015
2014/2015
Appendices
Simple comparisons
Transform yourself, too
Mikkers uses simple comparisons to
underscore the importance and usefulness of
big data. ‘If you’re selling ice cream, the link
between the outside temperature and your
turnover is likely to be very clear very quickly.
When you drill down into (and then link) a
wide variety of data sources, other linkages
quickly come to the surface. For instance,
maybe sales of ice cream are also linked to
matches played by the Dutch national football
team. If so, then the ice cream salesman
knows what he has to do – get enough ice
cream in store when an international game is
coming up.’
André Mikkers is the leader of PwC’s forensics
practice and Gunilla Verbeke is part of his
team. Verbeke: ‘We’re already using big data a
lot in our forensics practice. So it’s natural that
the idea of the Data Experience Lab was born
here.’
Mikkers adds that the lab is important for the
entire PwC organisation. ‘People everywhere
are dealing with big data, but generally
speaking the majority of them are not yet
doing much with it. That applies to clients
– but also to us. This lab helps you make the
digital transformation needed.’
Working with the right tools
Big data, therefore, brings to the surface things
that are not immediately apparent. ‘In fact, it
represents data that is generally not yet being
utilised’ says Gunilla Verbeke. ‘Our lab makes it
possible to look at and analyse your own data
and then link it in to other sources. Here you
can work with tools that bring things to the
surface that you didn’t know were there.’
Mikkers: ‘We have a computer here with the
computing power of about 700 laptops – and
we have access to 5,500 sources of data. These
are all open source and until now have had
little attention.
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Foreword
Key statistics
Appendices
Report of the
Supervisory Board
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Foreword
Key statistics
Appendices
Organisation
Following the issue of the ‘In the Public
Interest’ report by the Future Accountancy
Profession Working Group, PwC has installed
a Supervisory Board (‘SB’) as of 1 May 2015.
In line with the Report’s recommendations,
this has been embedded into the organisation
at the level of the top holding company
of which the audit firm is a part, Holding
PricewaterhouseCoopers Nederland B.V. (the
Company).
The roles, jurisdiction and responsibilities of
the SB are set out in the SB’s Charter, which is
available on the website. The SB is responsible
for supervising the Board of Management
(BoM) and it monitors and advises the BoM. In
addition, a number of BoM decisions require
the SB’s approval, including the appointment
and dismissal of partners who act as external
auditors and the determination of (or changes)
to the remuneration policies and practices for
partners and the remuneration arrangements
for the BoM.
Composition and role
The SB is a new phenomenon for PwC and
was installed two months before the end of
the financial year. As of 1 May 2015, the SB
comprised six members: Jan Maarten de Jong
(Chair), Naomi Ellemers, Frits Oldenburg,
Cees van Rijn, Yvonne van Rooy and Nout
Wellink (Vice-chair). Annemarie Jorritsma
joined in September as the seventh member.
The responsibilities of the SB also include the
evaluation of the performance of the BoM and
its individual members, the joint signing of the
annual financial statements, the approval of
the appointment process for submission to the
General Meeting, the approval of the policies
for quality and the anchoring of these in the
organisation.
The Supervisory Directors are appointed
for a period of up to four years and may be
reappointed for a second period of up to four
years. All Supervisory Directors are independent
within the meaning of Art 3.5 sub c jo 3.6 of
the Board’s Charter, and they have no conflicts
of interest. Further information regarding the
roles of the SB and the Company’s corporate
governance structure is provided in the
‘Information about PwC’ (page 106- 111).
The SB is focuses also on the firm-wide aspects
that affect quality, independence, audit
integrity and the interests of stakeholders
therein. The SB sees itself not only in a
supervisory role but also in a sounding board
role and is well aware that the main driver for
its installation was the public debate around
the role of the auditor. In the light of these
developments, it is critical to increase trust
in society, and the SB can contribute to this
through its independent supervisory role, its
advisory role and the accountability it provides
through its report on its activities for the past
financial year.
The SB particularly monitors the safeguarding
of the public interest in the audit work,
and this role is discharged by the Board’s
Public Interest Committee. The members of
the SB who are not members of the Public
Interest Committee are also well aware of
this particular SB role. The work of the SB
also extends to Tax & HRS and Advisory.
Collaboration between the three lines of
service, to the extent permitted, would seem
to be essential in terms of obtaining a good
understanding of the challenges facing PwC’s
clients, to be able to provide effective advice or
to perform a quality audit.
This first Report of the SB not only covers the
two month period that the SB was in place
in 2014/2015 (May and June 2015) but also
provides insight into the activities of the SB
up to the preparation of this Annual Report in
September 2015.
Members of the SB
Jan Maarten de Jong (Chair)
(Born 1945, Dutch nationality, Male)
Appointment: 1 May 2015
First term expires: 2019
Other positions
- C
hair of the Supervisory Board of
KBL European Private Bankers S.A.,
Luxemburg
- M
ember of the Supervisory Board
of the Frans Hals Museum
- M
ember of the Board of Stichting
Preferente Aandelen ASML
Naomi Ellemers
(Born 1963, Dutch nationality, Female)
Other positions
- P
rofessor at Utrecht University
(Her primary position)
- M
ember of the Royal Netherlands
Academy of Arts and Sciences
- C
orresponding Fellow of the British
Academy for the Humanities and Social
Sciences (FBA)
- M
ember of the Board of the Praemium
Erasmianum Foundation
Up to 1 May 2015, the supervisory role was
filled by the Local Oversight Board, which
consisted of six partners from the Lines of
Service and an independent Chair. The SB
expresses its thanks for, and appreciation
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Contents
Foreword
Key statistics
of, the work the Local Oversight Board has
done in this role and the SB is pleased to
take it over. With the installation of the
SB, the Local Oversight Board became the
Partner Council, the body within Coöperatie
PricewaterhouseCoopers Nederland U.A.
that represents the collective interests of the
partners and provides advice on germane
issues that are presented for approval.
Activities to date
The SB was installed as of 1 May 2015 and,
during the remaining two months of the
financial year, was actively involved in PwC’s
affairs. Pending publication of the definitive
legislative and regulatory requirements, the
SB resolved to act in accordance with the
Company’s statutes and the draft SB Charter,
and it has drafted charters for its committees.
Induction, Education and Training programmes
By way of induction, a number of information
meetings were organised for SB members and
there were, on request, meetings between SB
members and individual officers. The areas
of focus included the strategic goals of the
Assurance, Tax & HRS and Advisory Lines of
Service and Markets, quality management
systems, interests of stakeholders in the audit,
the PwC network (and the related structures
and areas of focus and risk, including
Enterprise Risk Management), Human Capital,
remuneration policies, the nature and scope
<naam>
of the Compliance Office’s reporting, the
improvement agenda, and the framework of
standards and legal requirements.
The SB also approved the partners who may act
as external auditor within PwC as from 1 July
2015. It decided to appoint a seventh member to
the SB and it approved the budget for the current
year 2015/2016 and the claw back scheme
for partners who are external auditors. It also
familiarised itself with the People Survey and
the reasons for and consequences of the further
streamlining of the network of PwC member
firms and it dealt with the policy for partners’
private investment holdings. It was updated by
the BoM on the integration of the Netherlands
element of Strategy& into the local Advisory
practice and on the extension of the four country
European collaborative association between the
PwC member firms in the Netherlands, Germany,
Austria and Belgium (‘the four country European
collaborative association’) to include the member
firm in Turkey.
In addition, led by an external adviser, the SB
has discussed its own expectations and the
establishment, design and implementation
The SB has made arrangements to be regularly
of its roles and responsibilities. As the SB was
updated as to developments around the audit
installed only two months before the end of
profession and PwC. For instance, the SB was
the financial year, the familiarisation process
involved in the drafting of PwC’s input to the
was focused in 2014/2015 on the Induction
consultation process regarding new legislation
programme. The Education and Training
and policy requirements and in PwC’s responses
programme will be worked out in 2015/2016,
Van links naar rechts: Ruud Dekkers, Pieter Veuger, Janet Visbeen, Maarten van Ginkel,
to the findings of the external supervisory body,
in the form of ongoing training and education,
Jan Maarten van der Meulen, George de Soeten en Hans Bod.
based on the experiences of the first few months. the AFM.
Through its Audit Committee, the SB was
closely involved in the year’s annual reporting.
The Audit Committee consulted with the CFO,
the Internal Audit Department and the external
auditor, amongst others. Through its Public
Interest Committee, the SB was also involved
in the audit firm’s Transparency Report. In lieu
of a SB Report, the Public Interest Committee’s
Report has been included in the Transparency
Report.
During the period up to the preparation of
this Annual Report, the SB has dealt with the
remuneration arrangements for the BoM and
has discussed the Board Report 2014/2015
with the Compliance Officer, together with
ongoing claims. The SB has also discussed
the independence sanctions and the planned
further integration between the member firms
within the four country European collaborative
association. The Markets portfolio-holder in the
BoM has presented to the SB the outcome of
audit firm rotation within the PIE segment.
Composition
The composition of the SB has been designed
to ensure that the combined experience,
expertise, diversity and independence of the
members collectively meet the profile set out
in Appendix B of the SB’s Charter. The Board
brings together a wide range of experience
from the various external supervisory, public
service, leadership and academic roles of its
members. The SB’s committees have been set
up by, and are composed of members from, the
Board itself.
Appendices
Yvonne van Rooy
Other positions
- C
hair of de Nederlandse Vereniging van
Ziekenhuizen (the Dutch Association of
Hospitals) (Her primary function)
- M
ember of the Supervisory Board of
Nationale Nederlanden Group
- C
hair of the Supervisory Board of Philips
Electronics Nederland B.V.
- M
ember of the Board of Stichting
Administratiekantoor Koninklijke Brill N.V.
- M
ember of the Board of Instituut GAK
(Foundation Institute GAK)
- M
ember of the Board of the Royal
Concertgebouw Orchestra (RCO)
- M
the Gemeentemuseum Den Haag (The
Municipal Museum of The Hague)
- M
ember of the Curatorium Beschermers
Nationaal Monument Kamp Vught
(Protectors of the Camp Vught National
Monument)
- M
Fonds Nationaal Kunstbezit (the National
Artistic Heritage Foundation)
- M
ember of the Advisory Committee of
Nexus Institute
- M
ember of the Board of the Confederation
of Netherlands Industry and Employers
(VNO-NCW)
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Key statistics
Time allocation for BoM responsibilities
A limited portfolio of audit engagements
is permitted and this requires the approval
of the SB.
Evaluation of the SB, its members
and its committees
Given the installation of the SB so soon before
the end of the year, the SB will not evaluate
its performance and the performance of its
individual members and committees until the
end of the current year 2015/2016 (for the
first time).
and the Finance Department and has had a
private discussion with the external auditor
(in the absence of the CFO). It has discussed
the results for 2014/2015, the draft annual
financial statements and the management
letter with the IAD, and has submitted a
recommendation regarding the appointment of
the external auditor. All members of the Audit
Committee attended these meetings.
Committees
The SB has four committees: Audit Committee,
Remuneration Committee, Selection and
Appointment Committee and the Public
Interest Committee. The roles of these
committees are set out on pages 106 and 107
of this Annual Report.
The SB will meet as often as is needed and at
least six times a year. The full Board met twice
during the final two months of this year. The
SB’s committees meet four times a year unless
there is a need for fewer meetings.
Remuneration Committee
The Remuneration Committee comprises
Yvonne van Rooy, Jan Maarten de Jong, Nout
Wellink and, as from 1 September 2015, also
Annemarie Jorritsma.
The Committee met once in May and, with
all Committee members present, met with
the Chair of the audit firm to discuss the new
claw back scheme being introduced as from
1 July 2015 for partners who act as external
auditor. The Committee subsequently apprised
the SB on how the claw back scheme works,
the process involved and the involvement of
the SB in the process. It was agreed that the
claw back scheme would be evaluated by the
Remuneration Committee on an annual basis.
Audit Committee
In 2014/2015, the Audit Committee comprised
Cees van Rijn and Frits Oldenburg. Annemarie
Jorritsma joined the committee on 1 September
2015. During the Committee’s two months
of operation in 2014/2015, the Chair of the
Committee discussed, amongst other things, the
budget for 2015/2016, the financial reporting
and a planned investment. Since then, the Audit
Committee has met twice (in 2015/2016). It
has met the Internal Audit Department (IAD)
Since the year-end, the Remuneration
Committee has addressed the proposed
remuneration of the members of the BoM and,
after approval by the SB, the remuneration
proposals for the BoM will be submitted to the
General Meeting for adoption in October. The
Remuneration Committee has also discussed
the process surrounding the evaluation and
remuneration of partners, which took place
in July, August and September 2015, and
was advised in this by the Partner Council
(previously the Local Oversight Board), which
had already been involved in the evaluation
of the annual process as part of its previous
supervisory responsibilities.
Remuneration Report
The Remuneration Report, put together by
the Remuneration Committee and adopted
by the SB, is included as an appendix to this
Annual Report 2014/2015 (see pages 124128). It addresses, amongst other things, the
2014/2015 remuneration arrangements for
partners and the BoM (including the claw
back scheme for partners who act as external
auditor), the changes to the remuneration
arrangements for the BoM as from 1 July 2015
and the remuneration of the members of the SB.
Selection and Appointment Committee
The Selection and Appointment Committee
comprises Jan Maarten de Jong, Naomi
Ellemers and Frits Oldenburg. During the
Committee’s two months of operation in
2014/2015, it met twice with all members
in attendance at each meeting. Matters on
the agenda included the proposal at add
Annemarie Jorritsma as the seventh member
of the SB and the new partner candidates
as of 1 July who will be acting as external
auditor within the audit firm. This latter
involved consideration of the selection itself
(in which culture, behaviour and openness
to change played a greater determining role
than in the past), the process the candidates
went through, and the BoM’s deliberations
thereon. The Committee was also informed
as to the goals that had been presented to the
candidates.
Appendices
Frits Oldenburg
Other positions
- O
f-counsel at FG Lawyers (His primary
position)
- M
ember of the Board of the Vrouwe
Groenevelt’s Liefdegesticht Foundation
- M
ember of the Board of the North and
East Gelderland District of the Dutch Red
Cross
- M
ember of the Board of the Dutch Asthma
Foundation
Cees van Rijn
Other positions
- M
ember of the Board of Governors of
the Leids Universitair Medisch Centrum
(Leiden University Medical Centre)
- M
ForFarmers Group
- M
Detailresult Groep N.V.
- M
Plukon Food Group B.V.
- M
Incotec Group B.V.
- M
Koninklijke Coöperatieve Bloemenveiling
FloraHolland U.A.
- M
UTZ (a sustainable farming certification
organisation)
- M
ember of the Board Stichting
Continuïteit SBM Offshore
GRI
14
Contents
Foreword
Key statistics
Since then, at its two meetings in September,
the Selection and Appointment Committee
agenda has included the resignation schedule
of the SB, the composition of the SB’s
committees following the appointment of
the seventh SB member, advice regarding
the evaluation of the Compliance Officer, the
drafting of a profile for BoM members and
preparations for the evaluation meetings with
SB members.
Public Interest Committee
In line with the Code for Audit Firms, PwC
set up a Public Interest Committee in 2013
alongside the previous internal supervisory
body. Measure 2.5 of the report issued by
the Future Accountancy Profession Working
Group states that safeguarding the public
interest is an essential part of the duty of the
SB as a whole. In line with this recommended
measure, the function of the Public Interest
Committee has been integrated into the
SB. As from 1 May 3015, the Public Interest
Committee comprises Nout Wellink, Naomi
Ellemers, Yvonne van Rooy and Cees van
Rijn. Since the installation of the SB on 1 May
2015, the Public Interest Committee met once
during the financial year, with three of the
committee members present together with
the Chair of the audit firm, the Compliance
Officer, the Deputy Compliance Officer, the
National Office Business Unit Leader and the
member of the Assurance Board responsible
for Change. The matters covered included
the current developments around the audit
profession and the Assurance Line of Service,
the status of progress in the transformation
programme designed to effect cultural and
behavioural change, the amendments to the
quality management system, the Q3 reporting
from the Compliance Office, and Assurance’s
strategic risk profile.
In its meeting during the first quarter of the
new financial year, the Committee addressed,
amongst other things, the draft Transparency
Report, the Q4 reporting from the Compliance
Office, independence sanctions, quality review
results, and how quality was reflected in the
evaluation of Assurance partners and directors
in FY15.
The Public Interest Committee provides a
report of its activities for the entire financial
year FY15 in the Transparency Report of
PricewaterhouseCoopers Accountants N.V.
The past year
Since its installation as of 1 May 2015, the SB
has been updated, either in its formal meetings
or in the induction meetings, on the issues that
have affected PwC. This was provided by the
BoM, other individual officers within PwC NL
or by its committees. The following matters
were addressed:
PwC Strategy& (Netherlands) B.V.
The acquisition of the Strategy& organisation
(previously Booz & Company, Inc.), as part
of PwC’s global strategy, provided PwC some
time ago with expertise and competencies
that it did not have in house. Preparations
have been made in recent months to transfer
PwC Strategy& (Netherlands) B.V. to
PricewaterhouseCoopers Advisory N.V. and
thereby combine the strategy consulting
groups of these two entities.
Network Alignment
The plans of the Network Leadership Team
to achieve further network alignment within
the network of PwC member firms has led to a
network structure of two clusters (previously
three) and to an update of network standards.
The four country European
collaborative association
Turkey is an upcoming market with high
growth expectations, and the Turkish PwC
member firm is one of the leading professional
service providers in this market. To maintain
this leading position and develop it further, it
is not surprising that the Turkish member firm
looked to join the collaborative association
in place between member firms in Germany,
Austria, Belgium and the Netherlands.
Strategy, risk management and
the financial reporting process
The member of the BoM responsible for quality
has explained the PwC Network Risk & Quality
Framework to the SB (including the network
standard Ethics & Compliance, de R&Q
structure and the Enterprise Opportunities
and Risk Management situation), the process
by which opportunities and risks are identified
and adequately managed, and the engagement
acceptance procedures in place within PwC.
The representatives of Assurance, Tax & HRS
and Advisory in the BoM have informed the SB
as to the strategic priorities in their respective
Lines of Service (as has the Markets portfolioholder) and the Human Capital portfolioholder has informed the SB as to PwC’s People
strategy (including talent management,
Appendices
Nout Wellink (Vice-chair)
Other positions
- C
hair of the Board of Governors
of the University of Leiden
- N
on-executive director of the
Bank of China
- C
hair of the Wim Drees Foundation
- Chair of the Bontius Foundation
- C
hair of the Stichting Architectuur
Prijs Achterhoek (the East Gelderland
Architecture Prize Foundation)
Annemarie Jorritsma
(Appointed 1 September 2015)
Other positions
- C
hair of the Supervisory Board of the
RealNext Foundation
- M
ember of the Supervisory Board of the
NBTC Holland Marketing Foundation
- C
hair of de Nederlandse Vereniging van
Participatiemaatschappijen (the Dutch
Private Equity and Venture Capital
Association)
- C
hair of Koninklijke Nederlandsche
Heidemaatschappij
- C
hair of the Board of Stichting Verkiezing
Overheidsmanager van het Jaar (Selection
of Manager of the Year Foundation)
- C
hair of the Council of European
Municipalities and Regions (CEMR) (until
December 2015)
- C
hair of the Jury for Businesswoman of
the Year
- C
hair of the Auditteam Voetbal en
Veiligheid (Audit Team Football and Safety)
GRI
15
Contents
Foreword
Key statistics
diversity and the cultural change movement
‘Moments that Matter’). A status update on
the PwC strategy ‘From Purpose to Strategy
Execution FY14-FY16’ has brought the SB
further up to speed.
The budget for the current year FY16 has been
explained to, and approved by, the SB. Also
discussed was the perceived pressure of work,
particularly among Assurance staff, and the
market forces underlying this pressure and
the policy for partners’ private investment
holdings including the extent to which
collective investing should be permitted.
Appendices
Annual Report
After discussion of the Annual Report and
financial statements, the SB concludes that
these present a fair view and have been
prepared on a basis consistent with prior
years. We can look back on a year of good
results. The SB wishes to thank all PwC
people who, through their efforts, expertise
and commitment, have contributed to the
ongoing restoration of public trust in the audit
profession.
Amsterdam, 25 September 2015
The Supervisory Board
Drs. J.M. de Jong (Chair)
Dr. A.H.E.M. Wellink (Vice-chair)
Prof. Dr. N. Ellemers
A. Jorritsma (as from 1 September 2015)
Mr. F.W. Oldenburg
Mr. Drs. C.J.M. van Rijn
Mr. Y.C.M.Th. van Rooy
GRI
16
Contents
Foreword
Key statistics
Appendices
Technology with
a fiscal mind set
GRI
17
Contents
Foreword
Key statistics
PwC partner Jochem Veltman
and senior manager Emiel
Terpstra are the driving forces
behind the Financial Drawing
Board, a tool that provides clients
with quantitative insight into
the fiscal consequences of their
strategic and other decisions. It is
technology developed with a fiscal
mind set. ‘An application like this
changes the way we work, and
also the way the client works.’
Jochem and Emiel are both tax advisers.
Jochem still is, but Emiel is now also an IT
specialist. In eighteen months, he has learned
programming - a slow process, a rollercoaster
of frustrating troughs and euphoric peaks.
His goal was to be able to work alongside the
PwC IT specialists on the software that would
eventually become the Financial Drawing
Board. Emiel: ‘Because I speak the languages
of the tax adviser and the IT specialist I can act
as a bridge in the development team and cut
out any static on the line.’
Working through a variety
of scenarios
The Financial Drawing Board is software that
affords quantitative insight into the fiscal (and
therefore also the financial) consequences of
the array of decisions available to the business.
It makes clear what the consequences to the
business are of, for instance, regulatory or
structural changes. Jochem: ‘To date, it hasn’t
been possible to get a quick overview of what
the various consequences are of the various
decisions the business is facing. Excel and
PowerPoint afford only relatively static insight
as to how things stand at any specific point in
time. This software of ours makes it easy to
assess a wide variety of future scenarios.’
Quite literally, a drawing
board technique
The technique here, quite literally, is a drawing
board technique. The application makes it
possible, on site, to draw a model and add
data to it, and the software then computes the
consequences. It provides all the tools you will
need. Jochem: ‘This is not an end solution in
itself, but we can easily develop and tailor it
to our own and our clients’ specific needs. We
get requests on a weekly basis to extend the
Financial Drawing Board with more and more
applications, and these come from all corners
of our practice. This is a nimble approach, it
works very well, and it brings many of our
specialisms together in one process.’
Emiel: ‘We developed the application
in a laboratory environment and we are
now working on it further in practice. We
appreciate of all the feedback we get, and
we’re making use of this as we move forward.
We have a new release every fortnight, so
it’s handy that we’re managing the software
directly ourselves. This means that we can
continuously update it as fresh logic comes in.’
The key to this success
Emiel: I’m convinced that the key to this
success is that we have been in a position to
do the technical development ourselves. You
can explain to a software developer what you
want and what our business is, but that’s a
difficult path to tread. This way, we have no
static on the line. It also makes it easier to
persuade colleagues of the opportunities that
technology offers. When you look at things
from a different perspective – in this case
the IT perspective – then you see all sorts of
opportunities.’
Appendices
Jochem: ‘It’s a support tool to the process technology to support our work, an enabler if
you like.’
A more integrated approach
Jochem and Emiel are both convinced that,
for the tax practice, the impact of technology
is only going to increase in the coming years.
Jochem: ‘If we don’t move with what’s going
on around us, then I fear we will be out of
business in a couple of years. Look at what’s
happened to the taxi and hotel sectors and
the speed at which change is happening.
If we don’t do it, others will.’
Emiel: ‘An application like the Financial
Drawing Board changes the way we operate –
and also the way the client operates. No longer
do we sit down only with the tax director
– but now also with treasury and legal. This
promotes a much more integrated approach
than we are used to.’
Jochem: ‘We don’t all need to learn to
programme, but everyone does need to
become familiar with the technology.’
Emiel (laughing): ‘In that context, it’s
sometimes a bit of a challenge to describe what
the Financial Drawing Board can not do. It’s
not the Holy Grail and it’s not an all bells and
whistles solution set, but it does provide a level
of control.’
GRI
18
Contents
Foreword
Key statistics
Appendices
Report of
the Board of
Management
GRI
19
Contents
Foreword
Key statistics
Appendices
Joining forces internationally,
in Europe and in EMEA
PwC in the Netherlands
PwC the Netherlands
Assurance
Tax & HRS
Assurance focuses on the audit
of information and processes,
and provides assurance thereon.
The audit of financial statements
constitutes the majority of
our Assurance practice, with
the remainder consisting
of assurance on processes
and numerical (non-financial)
information and advice on
accounting issues.
Tax & HRS assists companies,
individuals and organisations
with their tax strategies,
planning and compliance,
and provides a wide variety of
specialist HR advisory services
in the areas of remuneration
structures, pension plans and
cross-border deployment as
well as legal advisory services.
Advisory
Advisory focuses mainly on
transformation processes arising,
for instance, from strategic
changes or from improvements
in business processes and
systems. Advisory also provides
services in the area of mergers
& acquisitions, from strategy
determination through to
assistance with business (unit)
integration or carve out, and
provides crisis management
services to clients affected by
fraud, disputes or inadequate
cyber security.
Firm Services
Firm Services includes the
departments that provide support
to those managing the business
and to those providing services
to clients. The group includes
specialists in the areas of marketing
and communication, training
and professional development,
human resources, procurement
and IT, finance and our general
counsel, spokesperson and
press officers. Our internal IT
specialists were transferred to
PricewaterhouseCoopers IT
Services B.V. during this past
year (see page 104).
We work very closely with the member firms
in Germany, Austria, Belgium and (since 1 July
2015) Turkey. The driving force behind this
pooling of forces within Europe is improved
client service. It also leads to more effective
knowledge sharing and increased investment
and innovative power.
In addition to this, the regional collaboration has
been strengthened, as from 1 July 2015, at the
EMEA level (Europe, Middle East and Africa).
The four country collaborative association of
PwC member firms is a sub-region within EMEA.
Knowledge sharing within eight industry groups
Industrial Products
Technology, Media & Telecom
Retail & Consumer
Transport & Logistics
Financial Services
Private Equity
Energy, Utilities & Mining
Public Sector
The Netherlands
4.445
The Netherlands
12
people
Offices
PwC in the Netherlands
GRI
20
Contents
Foreword
Key statistics
Appendices
This Annual Report addresses the aspects of our strategy that are of most interest to our stakeholders.
It follows the framework developed by the International Integrated Reporting Council.
We report at the level of Holding PricewaterhouseCoopers
Nederland B.V. for the financial year ended on 30 June 2015.
The Annual Report will be published and filed in early October
after the General Meeting of the members of Coöperatie
PricewaterhouseCoopers U.A.
Since 2004, PwC has prepared its annual financial reporting in the
Netherlands at the level of PricewaterhouseCoopers B.V. As PwC
installed a Supervisory Board at the level of its top Dutch holding
company during this past year, we are now publishing our annual
report at this level. This means that the results include not only
those of PricewaterhouseCoopers B.V. but also those of Holding’s
subsidiary, PricewaterhouseCoopers Deelnemingen B.V. Where this
affects the results, disclosure is provided.
To create value for our stakeholders, it is essential for us to know
what issues are important to them and, to ascertain that, we have
carried out a so-called materiality analysis (see page 23-24). In
this report, we focus on those aspects that are of the greatest
significance to our strategy and to our stakeholders.
The GRI table in the appendix (on page 131) sets out the matters
that are relevant to our stakeholders and strategy based on this
materiality analysis. The table follows the G4 version of the Global
Reporting Initiative (GRI) guidelines, and it lists the pages where
information concerning each indicator can be found.
G4 requires that an analysis of the impact per indicator be
performed in order to determine the scope of the report. We make
it clear that the scope of this report is PwC in the Netherlands.
In other words, all information about our policies, strategy,
procedures and systems, and about the associated indicators,
relates to our own organisation (see page 129-130).
G4 identifies two optional levels of reporting that meet the
requirements of the guidelines: the Core option and the
Comprehensive option. This report applies the Comprehensive
option. The GRI table sets out which G4 information has been
audited by our external auditor. There have been no significant
changes in terms of size, structure, ownership or supply chain
within PwC Netherlands.
The majority of the quantitative information contained in this
report has been specifically measured. Any information that has
been obtained by other means (for instance by extrapolation)
is identified as such. To the extent possible, all quantitative
information in this report is accompanied by comparative
information for the prior year.
We instructed our external auditor to provide a reasonable level of
assurance on the Report of the Board of Management (excluding
‘Expectations for the future’), the Information about PwC and the
appendices to this Annual Report. The external auditor’s assurance
report, including details of the work carried out, is presented on
pages 94-100.
Integrated reporting
Integrated reporting is a form of reporting
that links the entity’s strategy, governance
and financial performance with the societal,
sustainability and economic context in which it
operates. Our aim is to provide our stakeholders
with greater and better insight into how we
implement our strategy and how this impacts
society. We will continue to develop this format
of reporting in future years, recognising that
measurement of our social impact will continue to
be a challenge and an ambition. We are currently
working on developing an integrated dashboard
to help us manage more effectively on the basis
of impact.
Creating value: How we create value and retain
relevance for our stakeholders
Our stakeholders: Who our stakeholders are and
how we dialogue with them
Our strategy and achievements: What our
strategic ambition is, how we plan to achieve it,
and what we have already achieved
Governance and remuneration: How our areas
of key strategic focus are anchored into our
organisation
Expectations for the future: Our ambitions
for the longer term and the opportunities and
uncertainties we see in the market and in society
as a whole
GRI
21
Contents
Foreword
Key statistics
Appendices
Creating value
Our purpose as PwC is to contribute to a greater level of trust in society and to
solve important problems. It is the yardstick for all we do and set out to do. We
promote this purpose internally and externally and it is part of the dialogue we
have with our stakeholders. They are the ones who will ultimately determine
whether we live up to it.
External
factors
(megatrends)
&
Solve
important
problems
Our
clients
Greater trust in financial
markets
Contribution to the
public debate
Contribution to development
Social Enterprise sector
Reliable financial and
non-financial information
Create
value for
Our
people
Our impact
Society
Build
trust in
society
Our strategy
Clients
Expectations
stakeholders
(society, our
clients, our
people)
Our mission
Society
People
Onze purpose
Creating value
Better insight for internal
and external stakeholders
Higher efficiency and
effectiveness
Development
Appreciation
Social involvement
GRI
22
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Foreword
Key statistics
Appendices
The dialogue we have with our stakeholders is extremely important. They are,
after all, the ones who determine whether we have delivered on our ambitions
to be of relevance to society, to our clients and to our people. They determine
the key elements of our strategy and our annual reporting, and their messages
are very clear.
Wide group of stakeholders
Our stakeholder group is wider than simply our portfolio of clients and our people. Our
services affect more than only those we audit, advise or employ. This applies not only to
Assurance. The societal context in which we provide our services is becoming increasingly
critical and significant.
We have identified our most important stakeholders on the basis of two questions: Who are
the stakeholders on whom we have the greatest influence and who, in the other hand, are the
stakeholders who have the greatest influence on us? It is with this group that we get into a
very focused dialogue. The table on this page provides a summary.
Stakeholder dialogue in the form of:
The most important issues
for stakeholders
People
• One-on-one discussions with Works
Council representatives
• Staff satisfaction survey
•
•
•
•
•
•
Quality
Client satisfaction
Governance
Physical and mental well-being
Talent management
Role in the public debate
Clients
• One-on-one discussions
• Client satisfaction surveys
•
•
•
•
•
•
•
Quality
Transparency
Integrity
Talent management
Client satisfaction
Innovation
Society
• Discussions with the AFM, Eumedion,
VBDO, VNO-NCW, VNG, politicians and
supervisory directors
• Sector surveys
• Reports and surveys from VBDO,
the AFM, the Court of Audit, the UN,
parliamentary papers, working groups
• Media and social media surveys
•
•
•
•
•
•
•
•
•
Quality
Transparency
Independence
Governance
Diversity
Innovation
Impact of our services on society
GRI
23
Foreword
Key statistics
Reconfirmation of our materiality matrix
2012/2013 was the first year we prepared a materiality matrix. This
was based on internal surveys requesting respondents to indicate how
important specific issues were for them and for their most important
stakeholders. In this materiality matrix, we identified (and we still do
identify) the level of importance attributed to the individual issues, and
we report further on the more important and material ones.
Stakeholders
In 2013/2014, we had our internal and external stakeholders reassess
this materiality matrix. Did they still recognise these as key issues?
Were there any missing that should have been there? Were there issues
highlighted as material that were not that important?
This year, we have again reassessed the matrix through dialogue with
internal and external stakeholders. Members of the BoM, or other
partners specialist in the stakeholder’s sector, were involved in all
discussions. In addition, we used analyses of media and social media
input regarding PwC, we looked at how our sector colleagues deal with
the issues we had identified as most relevant for our stakeholders, and
we made use of reports and surveys published this year by social and
other groupings and organisations.
Last year’s issues still the most relevant to our stakeholders
The dialogue and analysis did not result in any significant change to the
matrix this year. The most noteworthy change is that governance has
been added as an issue. The importance of robust governance and a
balanced set of checks and balances came up both in the dialogue we had
and in the media and sector analyses. The addition of governance to the
materiality matrix has not increased the scope of reporting from what we
provided in prior years. The outline of, and developments in, our
governance arrangements always attract significant attention.
Appendices
Materiality matrix PwC
Transparency
Client satisfaction
Relevance for stakeholders (internal and external)
Contents
Talent management
Innovation
Quality
Integrity
Independence
Governance
Role in the
societal debate
Financial results
Internal working relationships
Discrimination
Energy
Regional
economic role
Waste
Local community
involvement
Transport
Emissions
Local procurement
Human rights
Bio-diversity
Societal
impact
of our
services
Creating employment
Sustainable
procurement
Political
contributions
Diversity
Physical and
mental wellbeing
Complaints arrangements
Water
Raw materials
Relevance for our strategy
Business
GRI
24
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Foreword
Key statistics
Appendices
Very clear messages from stakeholders
We pulled together the more important messages and dilemmas coming from the dialogue we
had with our stakeholders. Not all stakeholders gave us the same messages, indeed some were
contradictory to each other, but the messages we receive do help us to strike the right balance
when dealing with the issues and dilemmas we encounter.
As last year, it was clear that the dialogue was very much driven by the issues of the day. Most of
the messages revolved around the quality of the audit (a debate that has continued throughout
this past year), and a regular topic of discussion was our tax practice and our position on the
debate around tax avoidance schemes and taxation ethics in general.
The table that follows sets out how we continue to address the messages we receive from
stakeholders. For us, it is important that we be a firm that offers a variety of client service
expertise. While the debate about quality and social impact and relevance comes through most
strongly in relation to Assurance and, to a lesser degree Tax & HRS, we do not ignore Advisory.
Key messages from stakeholders
How PwC is addressing these
Concentrate on the quality of the service offerings
and delivery
In general, quality comes through from all
stakeholders as the most material issue for PwC.
Quality, integrity and independence form the
bedrock of our service offerings and delivery. Our
stakeholders stress that these are right at the heart
of our social relevance. If PwC does not meet
expectations, then its social relevance disappears.
Quality rules the day in the decisions we make
For us, quality is more than just complying with legislation and regulation. It is critical also in how we meet the needs of society in general, how we add value
to our clients, and how we manage the professional and personal development of our people. Each and every major incident that hits our sector, and the
tough conclusions from the AFM report about failures in the audit files, have pushed quality higher and higher up the our agenda and the agendas of our
stakeholders. For us, quality is a condicio sine quo non, a sort of fundamental ‘article of faith’. Quality has always been our most important driver, but the
major incidents described in the media and the tenor of the AFM report have damaged society’s trust in our quality. It is up to us to repair that damage.
The dominant themes for the year we are now reporting on have been the implementation of the measures for improvement from our own ‘Alert!’ programme
and from the report submitted by the Future Accountancy Profession Working Group. We provide further information on the progress we are making on these
on our website and in our Transparency Report.
Quality has been the driving force behind our allocation of resources, both in terms of time and money. Particularly in Assurance, we have invested
considerably in quality. In a number of cases, we have withdrawn from clients and chosen not to participate in tenders in order to make time available to
provide the guidance and coaching our people need as they perform and document their audit work.
We recognise that we still have some way to go before trust in our work is fully restored, and we continue to be open about what we do, how we do it, how
we report it, and how we are accountable for it. Our purpose (to contribute to a greater level of trust in society and to solve important problems) keeps us
sharply focused on our role in society.
Be clear about what you do
Stakeholders emphasise the importance to our
services of transparency. They all believe that
PwC must communicate loud and clear about
the services we deliver, the way we do it, and the
dilemmas that we are confronted with. They want us
to be transparent in this, so that it is clear what the
impact of our work is and how it serves the public
interest.
We are making progress, but we cannot do it alone
We aim to be transparent about the services we deliver, how we deliver them, and the issues we encounter, but we cannot do that entirely on our own.
A good example of this is the new audit reporting format that we worked with in the 2014 annual audits. This reporting is now including an increasing amount
of detail about the key issues arising in the audit (the key audit matters).
Working with the new audit reporting format is a learning process in which the enterprise, its supervisory board and the auditor have a collective role to play
if it is to be a success. In fact, the report new style must lead to managing and supervisory directors providing more insight into the more important issues
discussed with the auditor and how these issues are dealt with. We expect that this collective learning process will continue in future years. The committee
that monitors compliance with the Dutch Corporate Governance Code also has a role to play in this.
GRI
25
Contents
Foreword
Key statistics
Appendices
Key messages from stakeholders
PwC response
Play an active role in the public debate
Our stakeholders are convinced that a strong
contribution to the public debate is good for the
health of our sector, and they believe that we must
therefore make a strong contribution to the debate.
This is an integral part of PwC’s role in society and
an area where PwC can differentiate itself. We must
be more proactive in this, not just in small gatherings
for professional colleagues but also much more
prominently to a wider audience.
This is also a learning process
In the past, our organisation – and this applies to the entire sector – was too much inwardly focussed and not sufficiently communicative. We were not used
to providing transparency as to what our work did cover and what it did not cover. This contributed to a breakdown in trust and it has taught us that we need
to communicate much more clearly. The audit reporting new style mentioned above is an example of this.
Do not lose sight of your social impact
Stakeholders want to know how we contribute to
the public interest and what substantive difference
we can and do make. It is therefore important that
we continue to reassess what the long-term social
impact of our work is.
Our purpose is the yardstick for all we do
We are very well aware that, although we are engaged by clients, it is society as a whole that is often the ultimate stakeholder. That means that we must take
stock of the social consequences of the services we provide, the impact they have and the damage that can be caused should we err.
We have gone on public record several times this past year, both in the media and through our own channels, with our positions on the developments in the
sector, and we will continue to do this while always being sensitive about the quality and quantity of our communications. As described in this section, we
will also be having dialogue with the political, social and other institutions and organisations.
Last year, we defined a purpose for ourselves, our raison d’être, and this was ‘to contribute to a greater level of trust in society and to solve important
problems’. This purpose stems from what clients, society and our people want and expect from us. They are the ones who will ultimately determine if we
succeed in this, and it is therefore very important that we maintain the dialogue with them.
With this in mind, we took the decision last year to support the social enterprises sector. We do this by providing our know-how and expertise to add value.
At the same time, we get the chance to update our knowledge of social enterprises. They are focused on innovation designed to make a specific social
impact of one form or another, and they can therefore also serve as an example to us.
Self-remediation capacity remains essential
Stakeholders expect PwC to come up with its own
solutions for improving the quality of its service
offerings and delivery. They are generally positive
about the steps we have taken to achieve this.
The installation of a supervisory board was well
received by the stakeholders. Having said that, they
expect PwC to ensure that there continues to be a
sufficient level of innovation to maintain those quality
standards and to maintain the necessary integrity in
the business culture.
We have initiated a cultural change movement and strengthened our governance
The most significant challenge facing Assurance is strengthening and maintaining a sense of urgency about our organisation’s learning capacity. We review our
files and we increase the depth, breadth and number of the systematic root cause analyses we perform as and when issues arise from these reviews. We report
these through to those working in the field, we incorporate them into our training programmes, and we place a lot of emphasis on guidance and coaching.
Just because it is permissable does not mean you
should do it
Many stakeholders believe that auditors, tax
specialists and other advisers are not sufficiently
attuned to the outside world. Not only the letter
of the law but also the spirit of the law and
public opinion about the law are important when
formulating advice and performing audits. A
concrete example of this is the tax advice we give.
What do we recommend to our clients? And do we
reflect enough on the social context - and on the
needs of the client’s stakeholders?
The social context is becoming more and more important for us
We make clear in this annual report that the social impact of our service offerings and delivery is becoming more and more important and it is clear that
our stakeholders are looking over our shoulders. We need to reflect the interests of our clients and the interests of society as a whole - and theses are not
necessarily always the same. In our audit practice, the interests of society are paramount.
A learning organisation seeks a framework in which learning and development can best come to fruition. This requires, for instance, that people be prepared
to be open to critical input and to provide such input to others. These aspects are incorporated into the cultural change movement that we launched this
past year, ‘Moments that Matter’.
The Supervisory Board also contributes to the learning and self-remediation capacity of our organisation. The Board has an oversight role, but can also act
as a form of social mirror for us.
Our other disciplines also reflect social context in the advisory services they provide. We view a piece of advice that does not reflect this as a bad piece of
advice. We always alert clients to the potential reactions from stakeholders to specific decisions they make and the related risks involved. This can come
up not only in a fiscal context but also, for instance, in a transformation process focused on profit maximisation that does not address the related impact on
people and the environment. Furthermore, we have made an international commitment, through our Global Tax Code of Conduct, as regards the limits on
what advice we provide.
GRI
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Contents
Foreword
Key statistics
Material issue
Addressed on pages:
Quality
5-7, 30-33, 51-52, 53-54, 56, 113-116
Integrity
34, 36, 37, 51-52, 54, 55, 112, 113-116
Independence
30-34, 51-52, 55, 113-116
Governance
5, 31, 51-52, 53-55, 106-111
4-7, 26, 41, 46
Transparency
4-7, 25-26, 32
Client satisfaction
46, 51-52
Talent management
32, 37-38, 48, 51-52, 53, 55
Innovation
17-18, 32, 49-50, 51-52
Societal impact of our services
4-7, 22, 23-26, 39-40, 51-52, 53, 101-102
Diversity
39-40, 51-52
Financial results
7, 42-44, 46, 51-52
40, 32, 51-52
Appendices
Management approach
The Board of Management (BoM) uses both qualitative and quantitative indicators to measure
progress on strategic achievement. The BoM has carried out a number of progress measurements
during the past financial year, addressing what had been achieved on ongoing elements since the
previous measurement, what new initiatives had been started, and what still needed to be done.
This process is then discussed with the partners during the General Meeting.
The BoM is responsible for the formulation of our values and aspirations, our strategy and its
achievement. The six members of the BoM each have their own individual portfolio with specific
areas of responsibility. One of the members is specifically tasked with responsibility for quality
assurance and risk management. He leads the Quality & Risk Coordination Group, which comprises
representative from Assurance, Tax & HRS and Advisory, together with specialists in the areas of
independence, legal affairs, legislation and regulation and compliance. All Boards and Business
Units include a partner specifically tasked with the assurance and ongoing improvement of quality.
As part of our quality and risk management strategy, we have a Compliance Officer and an
Independence Officer. Having a Compliance Office in place is a requirement of the Law on the
Supervision of Audit Firms (‘Wta’), but we have extended the Office’s responsibility to cover the
entire PwC organisation and not only the audit practice. The Compliance Officer reports directly to
the SB and to the LoS Boards and the BoM. The Independence Officer reports to the BoM.
All LoS Boards and Business Units also have a partner or member of management tasked with
HC responsibilities. Our central departments, Human Capital and Learning & Development, report
monthly to the LoS Boards and/or to the BoM. The Finance department reports on a monthly basis.
The BoM has further support in a number of specific strategic areas such as corporate
responsibility, diversity, innovation, the PwC Experience, integrity (Code of Conduct) and business
transformation. Each of these areas has a partner or director supporting the development and
execution of policy. They report directly to the (portfolio holder in the) Board of Management and, as
part of the annual business planning cycle, they present a plan to the BoM and periodically report
back on progress.
GRI
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Contents
Foreword
Key statistics
Appendices
Our strategy and achievements
Our strategy focuses
on the five objectives,
and this moves the
value creation process
forward
Investing
in strategic
competencies
5
1
Building on the
quality of our
service delivery
2
Transforming our
organisation
Delivering the
PwC Experience
4
3
Taking the
opportunities
the market offers us
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Contents
Foreword
Key statistics
Reflection of the material issues in our strategic goals
This summary sets out how the issues most relevant to our
organisation, as determined in dialogue with our stakeholders, are
reflected in our strategic goals. We also identify those success factors
that are critical to achieving these goals. The progress we make on
these determines the extent to which we achieve our strategic goals.
We also identify the risks attached to these strategic goals. On pages
51 and 52, we set out the impact of the potential consequences of
these risks and how we mitigate them.
Appendices
Continuous improvement in the quality of our service offerings
and delivery is paramount in our strategy. That applies not only to
Assurance, but indeed also to Tax & HRS and Advisory. Our aim for
profitable growth is not an end in itself, but is essential for generating
the resources needed to generate investment to achieve the levels of
quality we are aiming for.
1
Material issues
Strategic goals
Critical success factors
Key risks
• Quality
• Independence
• Integrity
• Transparency
• Talent management
• Governance
Building on the quality
of our service offerings and
delivery
Continuous improvement in and testing of our approach to
quality and our risk management systems
• N
ot complying with all legislative and regulatory requirements and our own internal quality
standards
A governance environment and organisation that encourages
and facilitates our ambitions for maximum quality
• Undesirable or unethical behaviour by partners, directors or other staff
A talented workforce continually schooled in both the hard and
the soft aspects of our service offerings and delivery
• Reduced attraction of PwC as an employer
• Diversity
• Social impact of our service offerings
and delivery
• Role in the public debate
• Physical and mental well-being
Delivering the PwC
Experience
Building an inclusive culture based on encouragement and
collaboration
• B
uilding and creating an organisation that is not a (or is an insufficient) reflection of
society
Building an externally focused culture in which social
involvement is the norm
• Not recognising social developments (or not on a timely basis)
An impactful CR approach
• A CR programme that does not match our know-how and expertise
Knowledge sharing and thought leadership
• Lack of vision or lack of a basis therefor
Sensitivity for our people, their personal development and their
well-being (valuing their contribution)
• Too little appreciation of our people
• Reduced well-being
Goals for profitable growth to generate funds for investment
• Insufficient revenue and profitability
X-LoS service offerings and delivery that address our clients’
key issues
• A silo mentality between our service lines
Robust dialogue that matches our clients’ strategic agendas
• Insufficient understanding of client needs, resulting in worsening client relationships
Continuous improvement to our work flows
• Greater dependence on technology
• Violation of client confidentiality (cyber security issues).
Building an agile organisation able to meet changing
stakeholder needs and a resilient organisation ready to deal
with (unexpected) economic developments
• Too long a lead time between product development and going to market
Innovating to improve our service offerings and delivery and to
meet the needs of our clients and society as a whole
• Outdated offerings, reducing our relevance to clients and society
• Financial results
• Client satisfaction
Taking the opportunities the
market offers us
• Financial results
• Social impact of our service offerings
and delivery
Transforming our organisation
• Innovation
Investing in strategic
competencies
2
3
4
5
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Contents
Foreword
Key statistics
Building on
the quality
of our
service
delivery
1
Quality is not an option, we need it to survive.
For us, quality goes further than simply
compliance with legislation and professional
requirements. It is also a question of how we
meet the needs of society, add value to our
clients, and manage the professional and
personal development of our people – and that
applies to all lines of service
Implementing our quality improvement
programme, ‘Alert!’, and the recommendations
of the ‘In the Public Interest’ report published
in September 2014 by the Future Accounting
Profession Working Group have been the
dominant factors for our audit firm this past
year. This has specifically required change in
aspects of culture and behaviour, and thereby
also a reinforcement of the softer aspects of
quality.
Critical success
factors
What we have done and achieved this past year
Continuous
improvement in and
testing of our approach
to quality and our risk
management
• Implementation of the recommendations made by the Future Accountancy
Profession Working Group and our own quality programme, ‘Alert!’
• Introduction of real time reviews
• Broader and deeper root cause analyses
• More time and more people invested in the audits
• Investment in technology and standardisation
• More selectivity in client service choices
• Better communication about the work we do
• Completion of the regular testing procedures
A governance
environment and
organisation that
encourages and
facilitates our ambitions
for maximum quality
• Installation of the Supervisory Board
• Introduction of the claw back scheme for Assurance partners
as from 1 July 2015
• Launch of the cultural change movement ‘Moments that Matter’
(see ‘We deliver the PwC Experience’)
• Embedding change in the Assurance Board
• Ongoing implementation of ‘PwC Professional’
(see ‘We deliver the PwC Experience’)
• Extra focus on the Code of Conduct (see ‘We deliver the PwC Experience’)
A talented workforce
continually schooled
in both the hard and
the soft aspects of our
service offerings and
delivery
• Intensification of recruitment activities
• Training updated with the changes to our professional and stakeholder
expectations (see ‘We deliver the PwC Experience’)
• Further gains in staff satisfaction levels
• Implementation of a competitive salary and bonus package
Appendices
The focus for the coming years will continue
to be on the further embedding of quality
measures.
Organisation and governance
Implementation of the measures proposed by the
Future Accountancy Profession Working Group
Op 25 September 2014 the AFM published its
report into the file reviews it had performed at
the Big 4 audit firms. The findings were – and
are – totally at odds with our aspirations to
deliver distinctive quality. It was the first time
that we had faced such review findings. Also
on 25 September, the Future Accountancy
Profession Working Group, comprising a
number of younger partners from the firms
serving public interest entities, published its
report ‘In the Public Interest’, recommending
53 measures to improve the quality and
independence of the audit.
We have been robustly implementing the
recommendations, including measures in
the areas of governance, remuneration and
evaluation, culture and learning ability of the
audit firms.
Our website (www.pwc.nl) provides an
overview of the implementation of the
recommendations made by ‘In the Public
Interest’, and our audit firm’s Transparency
Report addresses extensively how we have
approached this and what we have achieved.
GRI
30
1
Contents
Foreword
Key statistics
Members of the Supervisory Board
appointed as of 1 May 2015
In line with the Future Accountancy Profession
Working Group’s recommendations, we have
installed a Supervisory Board. While the
primary driver for the installation of the Board
was the public debate around the role of the
auditor, the responsibilities of the Board cover
our entire practice, including Tax & HRS and
Advisory. Six members were appointed as of
1 May 2015, three of whom were previously
members of our Public Interest Committee
(which has now) been incorporated into the
SB. A seventh member has been appointed as
of 1 September 2015.
Extensive information about the composition
and responsibilities of the SB are set out in
‘Governance and remuneration’ (on page 53)
and in ‘Information about PwC’ (on page 106107).
Remuneration policies amended
where necessary
The remuneration methodology we had in
place was already focused on rewarding
quality. Where necessary, we have amended
this to be in line with the ‘In the Public Interest’
report. For instance, as from 1 July 2015 a
claw back scheme is in place for partners in the
audit practice. We address this in more detail
in ‘Governance and remuneration’
(on page 54).
Embedding change in the management
structures of Assurance
Last year, we appointed a member of the
Assurance Board to be specifically responsible
for the transformation that our audit practice is
going through, leading the team implementing
the improvement measures within the audit
practice as well as innovation within our audit
practice.
Extending the PwC Experience with
‘Moments that Matter’
We have launched a firm-wide roll out of
‘Moments that Matter’, a cultural change
movement that focuses specifically on our
behaviour at the very times when it has
the greatest impact on the environments in
which we operate. ‘Moments that Matter’
is an extension of the PwC Experience, a
programme that is fundamental to the way in
which we interact with our clients, society and
each other. This is explained in further detail
on page 36.
Introduction of real time reviews
We have introduced real time reviews (RTRs)
into the Assurance practice. The real time
reviewers are involved in the entire audit
cycle from planning to completion. It is both a
learning and a coaching process. The results
do not affect the evaluation or remuneration
of the audit team members reviewed. This is
different from the more traditional forms of
review we have that look back, after the event,
to assess the quality of the work done by the
teams and that are reflected in the individuals’
evaluations.
The RTR helps audit teams to ensure that
the audit assignments meet all the necessary
standards. Has the environment being audited,
including the client’s internal control system,
been properly documented? Does the audit
plan fit the client? Is the audit work performed
in line with standards? Are the decisions being
taken the right ones, and are they properly
documented in the audit file? The audit teams
are then in a position to follow up on any
findings and incorporate them real time into
the audit file.
We started the RTRs at the end of 2014, as
most of the audit engagements were already in
progress. As from 2015, the RTR teams will be
in place from the outset of the audits and will
feed back to the audit teams as each phase of
the audit progresses. We ran 39 RTRs during
the 2014 audit cycle and we will be increasing
this to 150 for 2015.
The RTRs are a labour intensive process, with
eighty hours being budgeted per engagement
for this coming year. The RTR team also
develops and delivers training to the practice
and, on larger engagements, supports the
Quality Review Partner (QRP) who carries out
the engagement-specific quality control. There
are currently 18 people in the review team,
and we are aiming to expand.
Strengthening the learning ability of the
organisation through root cause analyses
We analyse the findings coming from the RTRs
and other reviews, and we have broadened
and intensified these analyses. For instance,
we have introduced sessions in which groups
of partners, directors and (senior) managers
drill down into the underlying causes, and
the results of individual analyses and group
sessions are combined with information
coming from other sources such as the
People Survey (see page 32).
We have identified a number of generic
causal links that can impinge on quality and
we are incorporating these into our training
Appendices
programmes, issues such as the time and
attention dedicated to coaching and on site
review and to collaboration with specialists
from within the PwC network both in the
Netherlands and internationally.
More time invested in the audits
Another quality improvement measure
has been the increase in the involvement
of partners and directors in the audit
engagements, with the aim of improving
the coaching and guidance provided to the
audit teams. The time spent by partners and
directors on audit engagements increased this
past year by 14%.
More people invested in the audits
For us, investment in quality means investment
in people. We had 369 new staff join the
Assurance practice this year, not only starter
intake but also experienced intake. We have
also contracted people in from our global
network and we have increased the so-called
‘flexible workforce’ supporting our audit
practice during the peak period (see also
page 48).
More selectivity in our decision-making
The focus on quality and increasing the time
spent on engagements means that we need
to be more selective in the choices we make.
In a number of cases, we have chosen not
to participate in certain tenders and have
withdrawn from certain audit clients.
Investment in technology and standardisation
We are moving forward with the
implementation of new technology in the audit
practice. For instance, we are making greater
use of data analysis to identify inconsistencies
GRI
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1
Contents
Foreword
Key statistics
in financial statements and we are using a tool
that maps an organisation’s transaction flows.
We will be continuing such investments in the
future.
We are also working towards a much greater
level of standardisation within our audit
work. Working in a consistent fashion reduces
the likelihood of error, and the efficiency
it can generate allows more time for the
more complex issues affecting the financial
statements. Standardisation also allows us to
transfer work to specialist delivery centres
(see page 48).
Investment in technology and in future
proofing our service delivery is a key issue
also for Tax & HRS and Advisory, as further
explained on page 43 and 49-50.
Better communication about the work we do
This year we have played an active role
in the shareholder general meetings of
listed companies and financial institutions.
Consistent with our aim to better fulfil our
reporting responsibilities, and thereby also
our responsibilities to society, our auditors
have provided details of the work done during
nearly all the AGMs involved. Another example
of better communication is the new auditing
reporting format that became mandatory for
2014 annual audits. In this new form report, the
auditor now provides details of the key issues
arising during the audit.
Attracting and retaining talented people
Our Human Capital policies are focused on
recruiting talented people and investing in
their development. We offer challenging
work, many development opportunities and
competitive terms of employment. Following
the tight labour markets in a number of sectors,
we have again, as of 1 September 2015,
increased our salary budgets (by between 5
and 9.5%), giving us the opportunity to invest
more, particularly in sectors where the war on
talent is being felt.
Excellent results from the People Survey,
but still areas for improvement
We see that our people are looking for
inspiration and passion in their professional
environment. We are working on being that
kind of organisation. We go into this in more
detail in the following paragraph.
One way of measuring to what extent we have
been successful in being an attractive employer
is the People Survey, which allows our staff to
tell us, anonymously, what they like about us
and where there is room for improvement. Last
year, 78% of our staff completed the survey,
3 percentage points more than the year before.
One of the more important elements of the
survey is the People Engagement Index, a
tool that measures the attractiveness of PwC
as an employer. This indicator was up by 5
percentage points to 81%. The survey also
highlights some clear areas for improvement.
Our efforts in the area of talent management
are highly regarded, but we need to continue to
focus on coaching, feedback, retention of talent
and mobility. We also need to communicate
our vision and mission better to our people.
A lot asked of our people this past year
We have asked a lot from our people this
year. As mentioned above, they have invested
more time on their audits following our
investments in audit quality. First year audits
always require much more time than normal,
and a great deal of time and energy has
been invested in the proposal processes. The
pressure of work was also high in our other
lines of service – Advisory, for instance, which
had strong growth this year. (See also our
financial results on pages 42-44.)
Appendices
optimally deploy talent and on our flexibility
in dealing with ongoing significant shifts
in the PIE segment as audit firm rotation
continues. As an example, the strong growth in
our Financial Services practice means will be
needing more and more people, some of whom
we aim to bring in from elsewhere in our
practice and get them trained up in this sector.
Our strong recruitment drive, therefore,
continues unabated and, where possible, we
will press on with plans to transfer routine
work flows to so called delivery centres,
and we will continue to have our ‘flexible
workforce’ available in the peak period
(see page 48). Bringing in flex-workers and
outsourcing routine work are both part of our
plan to improve quality by freeing up more
time for the audit teams to deal with the
complex issues in the audit.
In the Assurance practice, we are again
expecting to have to deal with the
consequences of audit firm rotation, with new
clients coming in and existing clients leaving.
Our future success is dependent on the extent
to which we are able to attract, keep and
Staff satisfaction survey
2014/2015
2013/2014
I would recommend PwC as a great company to work for
80%
74%
I’m proud to be working at PwC
86%
84%
I expect to be still with PwC in twelve months’ time
80%
76%
I am very happy with PwC as an employer
76%
69%
81%
76%
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1
Contents
Foreword
Key statistics
Turnover by evaluation rating and experience level (%)
Evaluation
Experience
2014/2015
2013/2014
Outstanding/Very good
13.4
10.2
Good
19.1
18.3
Room for improvement/ Unsatisfactory
34.0
22.0
0-3 years
10.8
13.1
3-6 years
18.4
18.8
> 6 years
20.7
20.4
Turnover still on the high side
We are seeing that turnover among our
outstanding/very good-rated people is
increasing, and we are pushing ahead with
efforts to be the inspiring organisation that
we wish to be. For people performing below
the norm or not able to fulfil the expectations
of their role, we have a fair process of career
evaluation counselling.
Testing
Satisfactory results of internal reviews
Testing the technical quality of our work is part
of our quality control and risk management
processes. An extensive description of these is
provided on pages 113-116). An important such
test is the ECR, which is carried out by partners,
directors and managers independent of the
engagement being reviewed. The objective of
the ECR programme is to test the quality of
the engagements performed and the level of
compliance with the applicable procedures
and requirements and to identify areas for
improvement. An unsatisfactory review rating
can affect the remuneration of the partner or
director involved (see also page 53-54).
Assurance is also regularly reviewed by our
external supervisory body, the AFM, and by other
institutions. The AFM is carrying out a review
this year into, amongst other things, the progress
made on implementing the improvement
measures promulgated by our professional
body, but it did not carry out a file review.
Tax & HRS and Advisory also have their own
ECR processes. These are generally limited to
formal compliance aspects and are therefore
not as in-depth as the Assurance ECR process.
Each Tax & HRS partner and senior director
has two or three engagements selected
annually for review.
The Advisory ECR process this year covered
one file per partner and senior director. Of the
73 Advisory engagements selected, one did
not meet the required standard and there were
some instances of incomplete or non-timely
compliance with risk management procedures,
though the overall quality of the individual
engagements was not brought into doubt. In
addition to this, Advisory was also satisfactorily
audited by Lloyds this year in the context of
its ISO 9001:2008 re-certification and the
certificate was renewed for three years.
Appendices
Tax & HRS had 268 engagements selected for
review. Nineteen (6%) (2013/2014: 6%) of
these were found not to be in full compliance
with our global policies, for instance in areas
such as late filing of documentation. The
findings were shared with the practice via
newsletters and Business Unit meetings. As for
Advisory, the overall quality of the individual
engagements was not brought into doubt.
1
Results of the internal and external file reviews in Assurance
Number of
engagements
Review by:
reviewed
FY15
FY14
PwC network (Engagement Compliance Reviews)
37
38
AFM
0
10
The US supervisory body (the PCAOB)
0
3
ADR (the National Audit Office for local
6
7
government welfare payments)
Inspectorate of Education
17
11
Dutch Healthcare Authority (NZa)
5
4
Other ad hoc external reviews
13
11
Total
78
84
Number of
reviews with
findings
FY15
FY14
0
6
4*
0
0
0
0
0
0
0
Of which, ECR
non-compliant
FY15
FY14
0
1
3
-
0
2*
0
12
-
0
4
* The engagements with findings have been subjected to an ECR.
Engagements reviewed internally (ECR) in Tax & HRS and Advisory
Line of Service
Number
FY15
Tax & HRS
Advisory
Not meeting our
standards
FY14
FY15
FY14
300
268
19
16
73
82
1
3
The ECR processes of Advisory and Tax & HRS are not as in-depth as the Assurance ECR process.
Each Tax & HRS partner and senior director has two or three engagements selected anually for this
review. The Advisory ECR process covers one file per director and senior-director.
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A number of legal cases pending
We are involved in the legal aftermath of a
number of bankruptcies. The more important
of these relate to Econcern, LCI Technology
and a number of Fairfield funds that have
incurred losses because of the Madoff fraud.
In this last case, there are two civil cases
pending in New York and two in Amsterdam.
On 3 September 2014, the Amsterdam Court
dismissed one of the claims in its entirety,
though appeal is still possible.
The liquidators and a number of investors in the
Econcern case have filed four almost identical
complaints with the Court of Auditors. PwC
is being held liable by the liquidators and a
number of investors/shareholders for alleged
damages suffered as a result of what they claim
was an incorrect unqualified auditor’s report
on the 2007 annual financial statements of
Econcern. On 13 October 2014, the Court
decided on the case and issued a temporary
suspension order on the two auditors involved
(one of whom is still an external auditor with
PwC) for a period of one month. We have
notified this court decision to the AFM. The two
auditors involved have lodged an appeal against
this decision with The Trade and Industry
Appeals Tribunal (CBb), as have three of the
four plaintiffs. The appeal is still pending.
Appendices
PricewaterhouseCoopers Accountants N.V. and
a former partner of PricewaterhouseCoopers
Belastingadviseurs N.V.
Fine AFM
The AFM notified us on 13 August 2015 that
it intends to impose a fine based on the results
of the review it performed in 2013 and 2014
of ten of our audit files relating to financial
statements for the years 2012.
1
Other
No complaints have been filed regarding
client privacy or loss of client data.
There is a criminal investigation pending
in Belgium into the tax affairs of a former
client. The authorities will decide sometime
during the current financial year whether
to indict the various parties involved,
including PricewaterhouseCoopers
Accountants N.V., PricewaterhouseCoopers
Belastingadviseurs N.V., possibly
an external auditor associated with
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Key statistics
Delivering
the PwC
Experience
2
The PwC Experience represents the way in
which we strive to interact with clients and
colleagues and to differentiate ourselves in the
market. Building trust in the way we behave,
manage relationships and communicate is
crucial to this.
We have also moved forward with giving
greater substance to our leadership model,
‘PwC Professional’, in our training and internal
communication. The PwC Professional sets out
the know-how and expertise we need to get the
best out of the PwC Experience.
We have enriched and given more clarity to the
PwC Experience this year by launching what we
call ‘Moments that Matter’, a campaign that that
focuses in on the moments when our behaviour
can really make a difference to our stakeholders.
It is now up to us to ensure that the
programmes we have set in motion are
properly followed through in the coming years.
Appendices
Culture and behaviour
Greater recognition of culture and behaviour
We are moving our cultural change movement
forward through initiatives like the PwC
Experience, PwC Professional and Moments
that Matter. These initiatives have been
inspired by our ambition to fulfil our purpose
and implement our strategy and from the
inherent conviction that that we must remain
Building an inclusive culture based on
encouragement and collaboration
• Launch of the cultural change movement ‘Moments that Matter’ and the process of getting it anchored into our
processes and systems
• Increased focus on the Code of Conduct by rolling out a tailored workshop
• Greater visibility for the Confidential Counsellors
• Updated training programmes directed at change in our profession and stakeholder expectations
• Firmer objectives for the proportion of women in the appointment of new partners and directors
• Further roll out to a wider internal group of the ‘Multicultural Professionalism’ workshop
• Focus on diversity, including a special ‘diversity week’
Building an externally focused culture
in which social involvement is the norm
•
•
•
•
•
Sensitivity for our people, their
personal development and their wellbeing (valuing their contribution)
• Further roll out of the wellness programme, ‘Fit for Future’
• Implementation of a competitive salary and bonus package (see ‘Building on the quality of our service offerings
and delivery’)
• Coaching of social enterprises in the context of the Social Impact Lab
• Partnership with Ashoka, a global network of social enterprises
• More CR time for more people
Knowledge sharing and thought
leadership
• Active programmes for individual target groups, such as supervisory directors and CFOs
• Publication of inspiring articles and research on the consequences of megatrends, including those from the
Chief Economist Office
Active stakeholder dialogue (see ‘Stakeholders and materiality’)
Installation of the Supervisory Board (see ‘Building on the quality of our service offerings and delivery’)
Incorporation of our leadership model, ‘PwC Professional’, into our HC systems
Updated training programmes directed at change in our profession and stakeholder expectations
Active participation in the public debate
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relevant to our stakeholders not just now but
also into the future. We must move towards
a better and quicker way of identifying and
discussing dilemmas and risks in the area of
culture and behaviour.
The PwC Experience is becoming more and more
relevant, as the social context in which we work
becomes more and more important – as is focus
on the individual and looking to the future.
That is why ‘Moments that Matter’ was born
We launched ‘Moments that Matter’ to breathe
new life into the PwC Experience and to give
substance to the increasing focus on culture
and behaviour. Using the input we received
from stakeholders as a guide, we have defined
six moments in the contact among our people
and between our people and our clients when
we really do make a difference, or at least can
make a difference.
These six moments are linked through to the
PwC Experience pyramid. Getting a good
handle on moments that are important to our
stakeholders is crucial in being able to really
understand their needs and expectations.
Identifying these moments provides us with
a good view of the type of behaviour that
actually makes an impact and adds value,
and Moments that Matter is a tool to help us
get started and working with that behaviour.
Identifying and then living the Moments that
Matter helps us achieve the culture we are
striving for.
At the moment, we are working on tailoring
Moments that Matter in terms of our
interaction with society, led amongst other
things by the results of our dialogue with
stakeholders including the dialogue with civil
society institutions (see page 23-24).
Leadership team sessions on values
consciousness
The extent to which awareness of behaviour
– Moments that Matter – becomes anchored
within the organisation depends largely
on the tone from the top. Board members,
partners and directors are essential to any
cultural transformation. Often the culture
of an organisation is the mirror image of its
leadership’s values. Whatever leadership
role you have, you pass the values that are
important to you and the convictions that you
have on to your people through what you say,
how you behave and how you act.
Explicit
follow up on
feedback we
have received
from our
clients
Having a
robust dialogue
with our clients
at times when
we feel
vulnerable
Being there
when your
client is
encountering
difficulties
In that context, the members of the Board
of Management, the LoS Boards and the
Business Unit Leaders have participated in
sessions designed to help them understand
their values and further develop their value
awareness.
Set up of an Ambassador’s Network
to facilitate the transformation process
We have set up an Ambassador’s Network
of fifty people to push Moments that Matter
through into all levels of our organisation.
These fifty PwC people are taking stock of
experiences and stories and are getting the
transformation dialogue going in their teams
and Business Units (see page 58-59).
Appendices
Since October 2014, the six Moments that
Matter have been communicated far and wide
within the organisation, amongst other things
through interactive webpages on the intranet,
screensavers, posters and a ‘guidebook’ that
provides inspiration, information and tips to
help staff get going with their moments.
Further anchoring of the PwC Experience
into our systems
To encourage people to apply the PwC
Experience and Moments that Matter seriously
in practice and to get them built into our
culture, we have anchored them into our
processes and systems. The performance
evaluation systems, for instance, now include
an evaluation of the individual’s contribution
Appreciation
of working
together and
team interests
over individual
interests
Having a
real and honest
conversation
about
performance
with proper
preparation
Sincere
interest in
each other, being
an involved
colleague
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to team success, including the evaluation
discussions for partners and directors. In our
client feedback, we request input as to whether
we have demonstrated behaviour in line with
Moments that Matter.
We will be taking further steps to anchor the
PwC Experience and Moments that Matter in
the coming year.
Extra focus on the Code of Conduct
Addressing behavioural aspects requires
reference to the Code of Conduct and, in
this context, we introduced a dilemma-game
workshop into the Assurance Summer School
in 2014. This game confronts participants
with situations that could come up in practice
and sets them thinking about how they might
react. We are in the process of rolling this out
across all Business Units.
Development of new e-learning
This year, we have developed new e-learning
for the Code of Conduct. This is mandatory for
all new starters and was rolled out initially in
Assurance. The rest of the staff will follow in
2015/2016.
Greater visibility for the Confidential
Counsellors
Our Code of Conduct sets out how we are
expected to behave and act. This includes a
complaints and notifications procedure as
well as a network of Confidential Counsellors
whom staff can contact when they have
complaints in the personal arena or suspicions
of professional misconduct. There were
19 such Counsellors in place as at 30 June
2015.
We believe that the infrastructure supporting
the Code of Conduct is working well. The
number of complaints in recent years has
been very low. In 2013/2014, the Complaints
Committee did not receive any notifications
and the Business Conduct Committee received
one notification. As an organisation of more
than 4,400 people and on the assumption that
all forms of human behaviour will be apparent
in such a large population, we were concerned
as to whether the processes surrounding the
Code could really work in practice. This set
us thinking about the role of the Confidential
Counsellor as a key cog in the wheel of the
complaints and notifications procedure. Are
they the right people? Do people know how to
find them?
We have updated the profile for our
Counsellors, put them through training for
the role, and tasked them with proactively
promoting themselves and their role within
their Business Units. They are expected to have
an annual meeting with their Business Unit
Leader to discuss the culture prevailing in the
BU with an HC professional in attendance.
In 2014/2015, two people filed a complaint
with the Complaints Committee and there
were no notifications to the Business Conduct
Committee (see page 55).
Global Code of Conduct
Our Global Code of Conduct is currently being
updated and this will be introduced later in
this current year. Amongst other things, the
new code will address the use of social media.
Learning and development
Incorporation of ‘PwC Professional’
into our HC systems
In our leadership model, ‘PwC Professional’,
we set out last year the behaviour and the
skills and competencies that our people must
demonstrate in order to live up to the PwC
Experience. These are not only technical
skills, but also attributes such as authenticity
and the ability to work together with others
irrespective of cultural differences and physical
limitations. In this context, ‘Whole leadership’
is an important building block in PwC
Professional.
Appendices
We have incorporated the principles of
the PwC Professional into our recruitment
processes, training programmes and staff
evaluation systems this year. For instance,
our people prepare a self-assessment along
the lines of the model to identify where their
strengths and challenges lie. This forms the
basis of the evaluation meetings with their
managers and provides direction in the
choice of learning needs, training and other
opportunities for development.
We have invested much energy into internal
awareness of the PwC Professional, amongst
other things through staff meetings, our staff
magazine (including special editions), posters
in lifts and on the intranet.
Whole leadership
I lead myself and others to make a
difference and deliver results in a
responsible, authentic, resiliant,
inclusive and passionate manner.
Business acumen
I bring business knowledge,
innovation, and insight to create
distinctive value for clients and PwC.
Technical capabilities
I apply a range of technical
capabilities to deliver quality and
value for clients and PwC.
Global acumen
I operate and collaborate effectively
with a mindset that trancends
geographic and cultural boundaries.
Relationships
I build relationships of high value
which are genuine and rooted in trust.
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Developments within our profession and
changing stakeholder expectations incorporated
into our learning and education programmes
Naturally, these changing requirements and
expectations are fed back into our training
programmes.
To ensure that the changes and findings being
implemented are immediately reflected in
our training programme, the Learning &
Development department participates in
the Assurance team that is implementing
the recommendations made by the Future
Training hours (average per FTE)*
Partner
Professional
staff
Support staff
Total
Number of participants in the management development
programmes
2014/2015
Appendices
2013/2014
Assistant managers
188
239
Managers
106
278
Senior managers
71
69
Female leadership
42
34
International PwC programmes
22
45
The significant reduction in the number of managers participating in the management development programmes
is the result of a change to the trajectory. A number of the managers who were due to start this year will now be
starting in the current year.
Female
External training
27
54
9
39
Internal training
58
76
14
56
Development and
presentation of training
8
9
1
6
Dissertation and
post-graduate research
0
2
0
1
93
141
24
102
External training
6
50
24
43
Internal training
38
70
10
60
Development and
presentation of training
13
10
3
10
Dissertation and
post-graduate research
0
0
0
0
57
130
37
113
Total
Male
Total
Training hours
2014/2015
2013/2014
Average per FTE
109
108
External training
171,532
169,208
Internal training
241,215
230,538
Development and presentation of training
34,085
35,580
Dissertation and post-graduate research
2,608
3,290
* The definition of the number of training hours has been updated this year to include a number of other
programmes including new programmes. The comparative numbers have been amended to reflect this
update. Last year, we reported 91 hours of training per FTE, in line with the previous definition.
Accountancy Profession Working Group in
our organisation. The focus of the training
programmes in Assurance, therefore, has been
on behaviour (for instance, in terms of how to
engage in robust dialogue within the team and
with clients) and on innovation (for instance,
data analysis). The results of the real time
reviews (see page 31) will also be getting due
attention in the training programmes. Partners
and directors have participated in a workshop
to increase the effectiveness of their review
role and thereby further improve the quality of
the files.
The training ‘Tell it as you see it’ that was given
as part of the Summer School last year, has
been followed up with further training focused
on the need for auditors not only to highlight
and report matters but also to open them up
for discussion.
The ongoing improvement in and changes to
our training programme is not restricted to
Assurance. The tax profession, as an example,
is also undergoing change. The role of the
adviser is becoming broader than simply
the specialist service being provided, and
the profession is becoming more and more
digitalised (as outlined further on page 43).
Our training programmes are supporting these
changes by focusing on issues such as broadbased (non-technical) skills and competencies
and the use of digital tools.
Digitalisation of our training material
We are in the process of digitalising as much of
our training material as we can, one advantage
being that the know-how being made available
is there right when the individual needs it and
another being that the less that is included in
the classical training sessions the more room
there then is for the exchange of experiences
and views.
More and more international liaison
Where we can, we are streamlining our
learning and development programmes
internationally. This helps advance a ‘one way
of working’ approach within the global PwC
Network.
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Within the four country European
collaborative association (Germany, the
Netherlands, Austria and Belgium), we are
in the process of setting up an Academy to
develop and deliver joint training modules.
The national programmes will remain in
place to deal with the differing professional
requirements in the various countries. To a
large extent, regulation is professionally and
nationally based.
Diversity
Aiming for more women in senior positions
We strive for an inclusive culture in which
everyone, irrespective of cultural background
and sexual orientation, can feel comfortable
and valued. Diversity is important to us
because we believe strongly that the quality of
what we do is enhanced when issues are dealt
with by people with differing perspectives,
that it makes us better attuned to the outside
world, and that it is critical to our recruitment
of talent.
Our aim is to have more women at the partner
and director levels. Currently, the higher up
the seniority level we look the (significantly)
lower the proportion of women we have.
Aiming for more diversity in our
management bodies
At 1 July 2013, the Board of Management
comprised one woman and five men (i.e. 17%
female). The aim is to reach the 30% indicated
in the Law on Supervision and Management.
In that context, the BoM is actively looking for
female candidates to fill key positions in our
organisation, with the aim of providing them
with the strategic and management experience
needed to generate sufficient female potential
for consideration in future appointments to
the Board of Management. The Supervisory
Board (as from 1 September 2015) comprises
three women and four men, which represents
a balanced mix. The Boards of Assurance,
Tax & HRS and Advisory are monitoring the
progression of women in their respective
practices. For instance, they are working on
steps to improve progression when it looks
like slowing and they are actively monitoring
those women who could move up to more
senior positions, such as director and partner.
We offer our female talent a variety of career
options, including female leadership training
for managers and senior managers and a
number of coaching trajectories.
Fine-tuning our objectives
As from 1 July 2015, our aim is that
women represent 25% of all new partner
appointments. We have achieved this this year,
as six of our twenty new partners are women
and 11 of the 38 new directors are women.
Equal pay for men and women
A key indicator in an inclusive culture is
consistency of evaluation between men and
women, and also equality of remuneration.
Last year for the first time, we carried out
a detailed analysis and concluded that the
weighted average salary (excluding bonus)
was virtually the same for men and women at
all staff levels, after reflecting the number of
years’ experience within each level and direct
entry starters.
We have carried out the same exercise this
year, and concluded that there was minimal
Turnover percentage (total) (%)
2014/2015
Appendices
2013/2014
16.2
Turnover percentage (men and women) (%)
Men
Women
2014/2015
17.1
2013/2014
< 30 years
11.4
13.2
30 - 50 years
21.3
22.1
> 50 years
14.7
9.0
< 30 years
13.1
15.3
30 - 50 years
20.2
18.9
> 50 years
16.1
5.4
Turnover percentage (cultural background) (%)
2014/2015
2013/2014
Dutch
16.4
16.3
Western
16.4
19.7
Non-western
15.1
18.1
Part-time work (%)
2014/2015
2013/2014
Percentage of men in part-time work
12.1
12.4
Percentage of women in part-time work
40.5
42.7
Women
475
143
Men
604
44
Parental leave
Number of employees who have a right to parental leave
Number of employees who have taken parental leave
Percentage of employees who have returned after parental
leave and are still with PwC after twelve months
difference from the previous year. Only at
the senior director level did the differences
increase (on average by -4.8%), which is
consistent with what we found in 2013/2014,
caused by significant differences in the number
of years of experience.
65
75
Involvement of an increasingly wider group
in ‘Multicultural Professionalism’
Our approach to diversity is not focused solely
on gender, but also on cultural background
and sexual orientation. The need to appreciate
and value the differences between each
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other is a central element of our training
programmes. We start from the premise that
everyone has a number of preconceptions
from seeing the world through their own eyes.
The aim of our training is to encourage people
to look at things from a different perspective
and thereby generate understanding and
appreciation for the other.
We started the ‘Multicultural professionalism’
training last year and we have moved it further
forward this year, with 1,305 people following
the training as part of the regular learning &
development programme (2013/2014: 103).
Our aim is that all of PwC will have followed
it soon.
We have also moved forward this year with a
pilot in which a group of partners and directors
regularly get into one-on-one discussions
with some of our talented people from a nonwestern background. This is not meant to be a
coaching/coached relationship, but rather that
both parties learn from each other.
Our global organisation organised a special
diversity week in June last year, and we
held a number of the activities here in the
Netherlands, including a debate between
two members of the BoM and some staff
members on the subject of diversity within
our organisation. We also held an internal
publicity campaign during this week.
Sick leave
Sick leave (%)
High participation in the vitality programme
The work we do is demanding and the pressure
is high, particularly at peak times (see also
page 32). Compared to the Netherlands
average, our sick leave absenteeism rate is
rather low, though comparable with our
peers. That said, we do see the long-term
absenteeism rate increasing vs. the short-term
rate.
Sustainable deployment of our staff is
therefore high on our agenda. Last year, we
introduced a wellness programme (Fit for
Future) designed to help our people stay ly
and mentally healthy. An element of this
programme is a digital tool with which staff,
independently and anonymously, can monitor
their well-being and health. They also have
the option to call upon a digital coach to help
bring about behavioural change in the areas
of sleeping, exercising, eating, smoking and
drinking. Almost 40% of our staff has signed
up for this programme. The questions that
people who actively use the online tool have
generally relate to weight and diet, stress and
sleep.
In addition to this, all our people receive a
check-up invitation once every four years,
which includes a discussion with a lifestyle
adviser focusing on sustainable deployment.
This year, 716 received an invitation. The
2014/2015
2013/2014
3.3
3.1
response rate is high – almost 50% actually
had the check-up.
To encourage wellness among our people,
all of our offices have fruit available twice a
week in the refreshment areas. In Amsterdam,
we are running a yoga pilot in the office and
Eindhoven is experimenting with in-company
corporate fitness.
Our development programme also includes
focus on physical and mental health. A number
of modules incorporate the ‘corporate athlete’
workshop that provides participants with some
insights into improving energy management
and performance capacity.
Social involvement
Partnership with Ashoka, a global network
of social enterprises
Since last year, we have been focusing our
corporate responsibility efforts on social
enterprises, entities with primarily a social
focus but operating with a healthy business
model, and we have intensified this further
this year. In April we set up a partnership
with Ashoka NL, a parent entity that supports
social enterprises worldwide and that had not
been active in the Netherlands to that point.
Through and with Ashoka, we intend to get
involved in this sector on an international
basis. For a number of years, we have had
an association with Social Enterprises NL, a
platform that brings Dutch social enterprises
together and represents their interests. We see
the advent of social enterprise as an important
development and we aim to promote our
know-how and expertise within this sector.
Appendices
We believe that we can make significant social
impact by making the know-how and expertise
of our people available to this sector and we
are doing this on a pro bono basis during
normal working hours. This is taking the form
of advisory engagements for individual, often
start-up, organisations, offering master classes
and carrying out research.
Strong increase in the interest to
participate in our Social Impact Lab
During the past year, we have provided
year long intensive coaching to three social
enterprises in the context of our Social Impact
Lab. They were selected from a ‘challenge’ in
the summer of 2014 from a group of about
fifty business plans that had been submitted
(see also page 101-102), and this year we have
selected three more social enterprises in the
same fashion for a similar trajectory. We were
aiming to increase the number of submissions
for the challenge, and with 104 submissions
we were successful in this.
The winning start-ups – GEEF Café,
BookSpecials and &Thijs – are eligible not
only for coaching but also for financing if this
is needed, and they can make use of our office
facilities.
• &Thijs reduces the barriers for family access
to youth support programmes and handles
issues resulting from government austerity
cuts in youth support that have meant
reduced financial and other support for
parents.
• BookSpecials is a platform where wheelchair travellers can swap experiences to
help other disabled people benefit from the
mass of information available, and thereby
simplify the booking process.
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• G
EEF Café is a restaurant concept in which
the guest determines what he or she pays
and where voluntary work is offered in
exchange for a meal.
Increased number of people and hours
on CR projects
Our goal was to have 700 PwC people and
25,000 hours involved on CR projects. We
were partially successful in this, in that we
invested more time (27,488 hours) but with
fewer people (545, representing 13% of our
workforce). The majority of these hours was
spent on social enterprises, and there were
forty people (about 2,600 hours) involved in
the Transparency Prize, awarded annually
to the community organisation with the best
annual report. For the coming year, we have
set a goal of at least 15% of our people being
involved in CR initiatives.
which PwC was involved did make a leap
forward in the professionalization of their
operations. A number of them now have better
access to finance and have recruited more
people.
This work has also had an impact on us. Those
who have been involved in a project indicate
that the scope of their skill sets has been
enhanced, they have become more motivated,
they have extended their networks, and they
have increased their social awareness.
We are carrying out two more research
projects with Nyenrode into social enterprises
and the opportunities and threats in this
sector. One is looking at the success factors for
social enterprises and the other at their legal
situation. These will be published during this
financial year.
Inclusion of social enterprises in our business
Where possible, we aim to use social
enterprises as suppliers. Taxi Electric arranges
the vast majority of our taxi journeys in
Amsterdam (see also page 117). Fruitful Office
supplies the fruit that is provided twice a week
in the refreshment areas of all our offices. And
our Procurement department has organised
two master classes for social enterprises to
help them understand how things work on the
other side of the fence.
Regularly in the public eye
and our opinions sought
In section 2 (‘Stakeholders and materiality’),
we see that our stakeholders are looking to us
for our views and opinions on social issues.
We regularly make our views and opinions
public on topical issues and issues relevant to
the sectors in which we are active, for instance
through thought leadership position papers
and research papers (these days also on social
media).
CR initiatives with an impact on social
enterprise and on ourselves
In liaison with Nyenrode University, we have
carried out research into the impact of our
CR approach, the effect that our projects have
on social enterprises. Amongst other things,
this revealed that the majority of entities with
We are regularly in the press with our positions
on reform of the audit profession and we are
regularly asked for our views on issues such
as the anticipated tax reform, the investment
climate in the Netherlands and the public
debate surrounding tax avoidance.
Appendices
Last year, we appointed PwC partner and
professor, Jan Willem Velthuijsen, to the
position of Chief Economist. He is our
champion and coordinator of research into
the effects of major global trends on markets
and sectors, and the research we did into the
effects of these megatrends on the agrifoods
sector came from his office. The Chief
Economist Office also provides support to
proposal processes and client programmes
(see page 45).
We also have programmes focused on
knowledge sharing and debate with
supervisory directors, CFOs and tax directors.
We are a member of various networks and
professional organisations, we talk with
policymakers and politicians, and of course
with supervisory bodies. This brings us, and
keeps us, in contact with the outside world,
and it provides opportunities to share our
positions publicly and to hear the views of
others.
2
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Foreword
Key statistics
Taking the
opportunities
the market
offers us
3
To achieve our purpose – to build trust in
society and solve important problems - we
need profitable growth to generate funds
for investment. And to grow, we need to
differentiate ourselves in the market place
through the quality of our service offerings
and delivery, through the way in which we
do business, through the development of
strong client relationships, and through the
development of innovative solutions to client
issues. In our teams, we bring know-how
together from our entire organisation in order
to deliver a multi-disciplinary approach.
We will continue in the coming years to keep
attuned to the agendas of our clients, in
particular making good use of the feedback
requested from clients.
Lower profitability on slightly higher revenue
Our profitability has seen some turbulent
times in recent years. In 2010/2011 and
2011/2012, profitability fell as a result of the
loss of revenue following the financial crisis. In
the years that followed, we were able to bring
our cost base into line with the lower revenue
levels.
For the first time in a number of years,
revenues were slightly up last year and
we have seen this trend continue this past
year. Revenue finished up at € 697 million
(2013/2014: € 672 million), an increase of
3.8% mainly in Advisory but also in Assurance
while Tax & HRS remained flat.
Goals for profitable growth
to generate funds for
investment
• Lower profitability on slightly higher revenue
• Investments in software and hardware and in Taxolutions and Strategy&
• Modest revenue growth in Assurance but lower profitability following
investments in quality
• Revenue and profitability flat in Tax & HRS
• Profitable growth in Advisory
• Differing sector growth trends with contraction in some sectors
• Renewed focus on family business
• Increased efficiency and (ultimately) cost savings (see ‘Transformation
of our organisation’)
X-LoS service offerings
• Investment in new and innovative service offerings in all lines of service
and delivery that addresses
(see also ‘Investment in strategic competencies’)
our clients’ key issues
Robust dialogue that
matches our clients’
strategic agendas
Appendices
Operating profit fell in 2014/2015, following
of investments in audit quality and set up costs
on new client engagements in Assurance partly
offset by profitable growth in Advisory. Our
cost base has increased as the workforce has
increased across all lines of service and as a
result of investments in IT and technology.
Increased investment levels
In addition to the increased resources
allocated to clients (as investment in quality),
investments in fixed assets also increased this
year. € 8.7 million (2013/2014: € 4.3 million)
was invested in tangible fixed assets, the vast
majority being the purchase of hardware and
software, and € 5.4 million was invested in
intangible fixed assets in connection with
the acquisition of Taxolutions B.V., being the
intellectual property rights for the Taxmarc
software and the related goodwill (see also
pages 43 and 50). Furthermore, we invested
€ 14.2 million (2013/2014: € 7.1 million) in
financial fixed assets, € 13.7 million of which
was in connection with PwC NL’s share of the
global acquisition of Strategy& (of which
€ 4.6 million is payable in future years).
Set out below are the results of the various
lines of service and a number of specific market
related issues.
• R
esearch by the Chief Economist Office into the effects of megatrends
on our clients’ businesses
• Far fewer client feedback requests than last year
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Foreword
Key statistics
Results of Assurance
Volume growth generated by investment
Drilling down into the results of Assurance,
we see that net revenues from external clients
amounted to € 292 million, an increase of 2%
on prior year in monetary terms, despite an 8%
increase in hours spent. Operating profit fell to
€ 56 million (2013/2014: € 69 million).
The fall in profitability is largely the result
of set up costs incurred on new audit clients
following the mandatory audit firm rotation
in the PIE segment. A first year audit always
involves a massive investment in time and
resources and this is not recoverable in the
market. In addition, as mentioned earlier, we
have invested significantly in audit quality,
and this has required more time to be spent on
engagements. We have also invested significantly
in digitalisation and in the use of big data in the
audit (see page 49).
Assurance results
(€ millions)
55.6
69.1
2014/2015
2013/2014
291.9
285.3
Operating profit
Net revenue from external clients
2014/2015
Costs were up in Assurance. We have taken on
more new people, and the so-called flexible
workforce that we deploy during the peak
period was larger than prior year (see also pages
32 and 48).
We have had growth in the services transferred
to our Risk Assurance Business Unit (which
includes IT audit and the audit of non-financial
information). As digitalisation and automation
move forward at our clients, we are seeing a
greater need for systems audit. The CMAAS
Business Unit (that deals with highly specialist
reporting and valuation issues in the financial
statement audit) also did well this year.
Resultaten Tax & HRS:
Revenue Tax & HRS flat
Tax & HRS’ net revenue remained flat at € 241
million and operating profit fell slightly to € 63
million (2013/2014: € 65 million).
Fast-changing stakeholder group for Tax & HRS
Tax & HRS is having to deal with many more
stakeholders than in the past. Taxation is
no longer the domain only of tax directors,
specialist advisers and inspectors. Fiscal affairs
in general and (aggressive) tax planning and
(alleged) state subsidies in particular are
coming under the microscopes of society in
general and of politicians. Both the OECD and
the European Union are working on plans to
counter tax avoidance (BEPS). The European
Commission has submitted a proposal for the
exchange of information between national
tax administrations on rulings agreed with
multinational organisations and the OECD has
proposed that all multinationals report the
countries in which they report profits and how
much they pay (country by country reporting).
2014/2015
Appendices
2013/2014
Tax & HRS results
(€ millions)
This social and political development has
put taxation on corporate agendas and in
boardrooms, moving the subject of taxation
beyond traditional tax planning and into the
realms of brand management, reputation
and corporate responsibility. Companies are
expected to be in control of all their fiscally
related affairs, comply with all legislation and
regulation, and be transparent about it all.
Increasing use of technology in the tax practice
A further significant development that is
changing the profession for good is the
use of technology in the tax practice (see
pages 17-18). Processes and controls are
becoming more and more automated and data
analysis is making it possible to search for
inconsistencies.
We expect – in fact we are already seeing –
that, on top of their own technical specialisms,
our people are more and more working
together and sharing information to better
provide the client with a broader base of
advice – from formulating a tax strategy to
implementing technology-supported tax
control frameworks and compliance solutions.
In this regard, we are seeing Tax & HRS
and Advisory acting jointly more and more
regularly.
Further Tax & HRS investment in tools
Tax & HRS has made further investments in
technology this year. We acquired Taxolutions,
the owner of Taxmarc, as of 1 January.
Taxmarc is an add-on to SAP systems that
provides businesses with a complete overview
63.4
64.5
2014/2015
2013/2014
240.5
240.3
Operating profit
2014/2015
of all their
transactions and how2013/2014
much, and
where, VAT or other indirect taxes need to be
paid. Taxmarc also provides an automated
framework that tests the consistency and
accuracy of VAT transactional input. We
see this application as an example of how
improving the quality of the underlying fiscal
data can significantly improve the quality
and speed of the reporting and tax return
processes. We will continue to invest in similar
innovation in future years.
Results of Advisory
Strong growth in Advisory
Advisory has had a very good year, with a
13% increase in revenues from external clients
(to € 165 million) and a 30% increase in
operating profit (to € 36 million (2013/2014:
€ 28 million).
Our Deals & Forensics Business Unit profited
from a much improved mergers & acquisitions
2013/2014
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Foreword
Key statistics
market and from the investments that we have
made in recent years in the areas, amongst
others, of corporate finance and integration
services. There was also growth in our fraud
investigation and other crisis management
services (Forensics and Technology Solutions).
Growth was also achieved in the
consulting practice, mainly from major
transformation engagements covering the
strategy formulation phase through to the
implementation thereof. Consulting was also
boosted last year by the global acquisition
by PwC of Strategy&. The two have operated
as separate entities for this past year, but are
already working closely together on bringing
in and serving new clients. Strategy& has
been integrated into the national firms of the
PwC network as from I July 2015, though still
retains an element of global management. The
results of Strategy& will be consolidated as
from this date.
Advisory profiting from economic recovery
and the influence of megatrends
The growth in Advisory comes, on the one
hand, as a result of the economic recovery as
Advisory is more economy-dependent than Tax
& HRS and Assurance and, on the other hand,
also from Advisory’s ability to adapt quickly to
clients’ need for support in the transformation
processes that they need to undergo to cope
with major global trends. Our Deals practice is
also regularly involved in these transformation
engagements as focus needs to be fine-tuned
and business restructuring often goes hand
in hand with disposals and acquisitions of
businesses and/or business units. Last year,
we distilled these trends down into five
megatrends: the shifting balance of economic
power, demographic change, technology
breakthroughs, increasing urbanisation and
climate change, and raw material shortages.
These megatrends are driving innovation
and they offer great opportunities to new
businesses, but they often play havoc with the
business plans of existing businesses. Very
visible are the consequences of digitalisation.
When we talk of transformation, we often
mean adapting to the consequences of these
megatrends. While Advisory’s engagements
this year were directed towards cost reduction
and restructuring, we are starting to see more
requests for future proofing in an increasingly
fast changing, globalised and digitalised
environment.
2014/2015
2013/2014
Investment in digitalisation
As in Tax & HRS and Assurance, Advisory is
also investing in the digitalisation of its service
offerings and delivery. Forensics, in particular,
is making great use of data analysis and we are
looking into partnering with others in this area
(see also page 50).
2014/2015
2013/2014
Advisory results
(€ millions)
36.2
2013/2014
164.9
Firm-wide developments
Turbulence in the PIE market from
audit firm rotation
As in the prior year, we have had to deal with
another turbulent year, driven primarily by
legislation requiring listed companies and
financial institutions, as from 2016, to change
their auditor every ten years. Most of these
Public Interest Entities (PIEs) are, or were until
recently, already within this time frame with
the same auditor for some time. The legislation
includes a transition period of three years, but
our experience is that most companies did not
wish to delay.
Audit firm rotation means that we had to
withdraw from some clients and welcome some
new clients, and not only in the Assurance
practice. The law also prohibits any firm from
providing advisory services (including tax
services) to clients where its audit firm is the
statutory auditor. As and when we win an audit
engagement, other lines of service may perform
no more work at that client. The opposite
applies also – withdrawing from an audit client
that offers opportunities for advisory work.
In June 2015, the Dutch Cabinet announced
legislation that will extend the PIE requirements
to a number of public and semi-public
institutions, including housing associations,
large pension funds and universities. This will
have an impact on our business in this sector.
27.8
2014/2015
145.9
Appendices
Differing trends across sectors
Looking at performance in the various
sectors, we see differing trends.
On the one hand, revenues in Retail &
Consumer were much higher as a result of
a substantial advisory project in this sector.
The increase in Private Equity results from
the stronger mergers & acquisitions market
and the growth of our Financial Services
practice following a new audit engagement
and support to a number of clients in
the implementation of new regulatory
requirements.
On the other hand, we saw falls in revenues
following the loss of a number of audit
clients as a result of audit firm rotation
and the completion of a large advisory
project. Revenue in the Public Sector has
again fallen slightly as a result of ongoing
government austerity measures and policy
changes.
Financial
Services
Industrial
Products
-8%
+7%
Transport &
Retail &
Logistics
Consumer
(T&L)
+33% (R&C)
-7%
-1%
Energy,
Utilities &
Mining
Technology,
Media &
+1% Telecom (TMT)
Public
Sector (PS)
-1%
Private
Equity
+38%
Operating profit
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Key statistics
Cash flows and financing
Cash and cash equivalents amounted to
€ 10 million at balance sheet date (30 June
2014: € 88 million) and our solvability rate was
18.5% (30 June 2014: 15.5%). The reduction
in cash resources arises primarily from the
reduction of the debt to shareholders and from
the investments we have made. The Group
has no debt to financial institutions and the
financial position of our business remains
solid.
When assessing financing needs, we also
take account of contributions from partners.
At balance sheet date, these aggregated
€ 148 million (30 June 2014: € 153 million),
representing some € 584,200 per partner
(30 June 2014: € 627,800).
Financial instruments
Our strategy is to maintain exchange, interest,
credit and liquidity risks at acceptable levels
and, where necessary, to make use of financial
instruments primarily to cover exchange risk.
The exchange risk arises primarily on positions
and transactions in US dollars and pounds
sterling. Significant positions are covered by
hedge contracts, while interest, credit and
liquidity risks are not covered by financial
instruments but primarily by the use of internal
control measures.
A more detailed description is included in
‘Other information’ in financial statements
(pages 80-81).
Changing mix of audit clients
Now that most of the PIEs have selected their
new auditors, the time has come to take careful
stock of the situation. As a generality, we have
seen that our overall market position has not
improved or deteriorated, but the mix has
certainly changed. On the one hand, we have
gained large new clients in the financial sector
while, on the other hand, we have lost a number
of large AEX and Mid Cap listed companies.
Assurance has achieved some good wins among
the smaller listed companies.
The PIE rotation process has adversely affected
our results for the past year through transition
costs and set up costs in new audit appointments.
Renewed focus on family business
We have re-focused our practice this year
towards family business in the unlisted midsized and large segment. These are clients
that we previously serviced from our regional
office network. It remains an important
market segment for us and we see more
than enough opportunities for growth, for
instance in areas such as financing, growth,
succession, increasingly complex regulation
and internationalisation.
We are aiming to focus much more than
previously on the owner’s agenda and on
helping bring the shareholder and family
strategies (often families that have run these
companies for generations) and the business
strategies into closer alignment with each
other. We will also be focusing on Private
Equity parties that participate in this segment.
There is much attention being given to family
business across our entire global network,
including within the four country European
collaborative association, and we will be
developing our service offerings also on an
international basis through collaboration and
sharing of know-how. A good example of this
is the development of a ‘family wheel’ app that
puts together the owner’s strategic agenda.
Better understanding of
our clients’ strategic agendas
In the previous section, we looked in
detail into the internal aspects of the PwC
Experience, our approach to building trusted
relationships and dialogue, and the cultural
change movement ‘Moments that Matter’ that
takes is to a deeper level (see also page 36).
Our purpose is to build trust in society and
solve important problems, thereby creating
value for our clients. We put the strategic
agendas of our clients at the centre of our
service offerings and then come up with firmwide propositions to help them achieve these
Demographic
and social
change
Shift in global
economic
power
Appendices
strategies. Strong, trusted client relationships
are critical in this. We can only really help
our clients when they have trust in us, trust
in our know-how and skills but also trust in
the personal relationships that we have with
them. We have a development programme that
supports our lead engagement partners in this
process.
We set up the Chief Economist Office last
year. It leads and coordinates research into
the effects of major global megatrends on
markets and sectors (see page 41). Since
then, a number of pieces of research have
been published. Not only do these fit into our
strategy in the area of thought leadership,
but they are also clearly designed to generate
insight into the agendas and future agendas
of clients. Our partners have participated
this year in workshops on the megatrends,
and the Chief Economist Office is involved in
client relationship programmes and proposal
processes.
Rapid
urbanisation
Climate change
and resource
scarcity
Technological
breakthroughs
PwC has formulated five megatrends, irreversible global trends that are changing the world and that have
an enormous effect on society and on business models. Some pieces of research on this from our Chief
Economist Office are available at www.pwc.nl/publicaties.
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Foreword
Key statistics
Top position in the Brand Health Index
for technical quality
That we do well in the ‘hard’ aspects of our
work but have areas for improvement in the
‘soft’ areas was confirmed in the survey that
we commission every two years into our brand
health. This survey assesses the perceptions
that clients, potential clients and business
contacts have of us and of our three direct
competitors. The conclusion of this survey
was that we retained the number 1 position
that we achieved two years ago. On indicators
such as involvement of the right experts and
contribution to clients’ success, we scored
significantly better than our competitors did.
On others (for instance, listening to the client
or being easy to work with), we scored only
slightly better or were rated equally.
Client feedback results
Number
Appendices
Fewer client feedback requests than last year
It is important to us to have an honest
discussion with clients about how they view
us, and we request feedback on not only the
substance and technical quality but also the
way in which our people have conducted
themselves. We aim for one such evaluation
meeting a year with each client and we
discuss the findings internally to push through
suggestions for improvement.
We aim to send out an evaluation request after
the completion of each individual engagement.
However, we have noted that we sent out far
fewer requests this year than in prior year.
We believe that one of the reasons for this is
the transition to a new account management
system.
Client satisfaction
3
Recommendation
2014/2015 2013/2014 2014/2015 2013/2014 2014/2015 2013/2014
Assurance
466
836
7.9
7.7
7.7
7.7
Tax & HRS
216
443
8.3
8.2
8.2
8.1
Advisory
163
206
8.3
8.1
7.8
8.1
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Foreword
Key statistics
Transforming our
organisation
4
The transformation of our organisation has
two dimensions to it. In the first place, it is
directed at the organisation itself, to ensure
that it is as efficient and flexible as possible
in terms of responsiveness to an environment
that is changing ever more quickly and ever
more radically and in terms of resilience to
sudden economic jolts and turmoil. Secondly,
it is directed at the services we provide and
offer and how these are affected by, for
instance, digitalisation. This is addressed in
the following section (page 49-50).
the principles of Activity Based Working.
This is an operating model without dedicated
personal workspace. Instead, people look for
the spot that best suits the work they are doing
at the time. The key driver here is to encourage
greater levels of collaboration within our
workforce. Research indicates that people find
such a working environment more inspiring and
attractive than the traditional office layout, and
this is borne out by the experiences of entities
that have moved to some form of this new
approach.
In this context, staff mobility is a particular
area that we need to focus on in the coming
year.
The move towards Activity Based Working,
however is, extremely far reaching. It requires
behavioural change and a different, more
digitalised, approach to how we do things. We
have brought in specialists from our People &
Change practice to help.
Pilot for Activity Based Working
We started last year in our Rotterdam office
with some internal reconfiguration following
Continuous improvement
to our work flows
•
•
•
•
Building an agile
organisation able to meet
changing stakeholder
needs and a resilient
organisation ready to
deal with (unexpected)
economic developments
• Doubling of our flexible workforce
• Encouragement of mobility (but not sufficiently successful)
• Greater collaboration within the four country European collaborative
association and within the EMEA region
Set up of ‘Activity Based Working’ pilot in Rotterdam office
Outsourcing of facilities services in our office network
Increased outsourcing of routine work to our delivery centres
Participating in initiatives, also internationally, to refresh and streamline
our service offerings and delivery (see also ‘Investment in our strategic
competencies’)
Appendices
Activity Based Working also requires some
significant up-front investment, though in
time we hope to recover these costs through
reduced floor space needs. Floor space usage is
already reducing as a result of flexible working
habits (location and time).
Outsourcing of facilities services
We have outsourced the majority of our
facilities services to ISS B.V., a major player
in this area, involving the transfer of about
eighty of our employees to this company.
Amongst other functions, these include all
front desk, mailroom, repair and maintenance
and printing department staff. The staff kept
all their entitlements and they were given
employment guarantees.
One driver for this is that we are not expecting
to have enough work for such a large group
of employees. We will gradually be needing
less and less office space and many internal
processes will probably become more and
more digitalised. By outsourcing to ISS,
we have safeguarded the staff’s ongoing
deployment. The outsourcing will also deliver
cost savings.
Further deployment of our flexible workforce
We brought in about one hundred temporary
staff during the early months of this calendar
year to assist Assurance during its peak audit
period. Some sixty of these people came from
secondment agencies and the remainder came
from within our global network.
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Foreword
Key statistics
Mobility within PwC Netherlands (in people)*
Assurance
Tax & HRS
Advisory
Firm Services
2014/2015
55
44
15
25
2013/2014
74
26
17
12
Mobility within the four country European
collaborative association (in people)**
Assurance
Tax & HRS
Advisory
Firm Services
2014/2015
12
21
2
1
2013/2014
14
12
9
1
Mobility internationally (in people)***
Assurance
Tax & HRS
Advisory
Firm Services
2014/2015
102
38
12
1
2013/2014
52
38
25
2
* Mobility between business units, including business units in other lines of service
** Incoming and outgoing secondments with Germany, Austria and Belgium
*** Incoming and outgoing secondments with other territories (including Germany, Austria and Belgium), including
temporary incoming secondments from abroad during Assurance’s peak period
In prior year, we brought in a much smaller
group, 25 people and all from the PwC network.
The temporary staff supported our teams on a
number of audits. To assure the necessary level
of quality, we ran the selection process ourselves
and the temporary staff were given one week of
induction training before being deployed.
Increased outsourcing of routine work to
specialist delivery centres
In the Assurance practice, we are working
to outsource routine audit work to specialist
delivery centres. These are organisations within
our global network that perform this specific
type of work efficiently and to a high standard of
quality. In this past financial year, we outsourced
some 6% of our audit work to delivery centres in
the Netherlands, Germany, Poland and India.
Insufficient levels of mobility
Our experience is that mobility is an important
contributor to the flexibility and versatility of
our organisation, and this applies to all types
of mobility: between business units, within
our four country European collaborative
association (comprising the organisations
in the Netherlands, Germany, Austria and
Belgium) and within our global network.
Temporary and permanent secondments are
a key tool in the development of our people,
offering them new skills and experiences not
only in terms of working methods but also in
terms of mind-set, and this is an important
contributor to collaboration within our
international networks. Our experience is
that people who have been what we call ‘on
secondment’ come back with a positive mind
set. Mobility and international experience
are also important elements of our leadership
model (see page 37).
We believe that our level of mobility is too
low and we have been promoting greater
levels of mobility this year. There is regular
contact with all Business Unit Leaders with
a view to identifying potential candidates
for secondment. However, we have not met
expectations in terms of increasing the rate
of mobility. We have seen an increase in
international mobility, but this is largely due
to the temporary deployment of overseas
colleagues during the peak audit period. We
believe that this is mainly due to Advisory and
Assurance not wanting to see people leave
given the significant pressure of work this past
year (see page 32) and pressures also on the
recruitment front.
Appendices
Turkey joined this collaborative association
as of 1 July 2015.
Greater international collaboration
also at other levels
We are combining forces also at other levels
of the global network, with the PwC member
firms in the EMEA region (Europe, Middle
East and Africa) agreeing to work more closely
together as from 1 July 2015.
This is directed primarily at combining forces
in the market place, service offerings and
delivery to cross-border clients, knowledge
sharing and joint investment programmes.
The larger scale and improved alignment will
give us greater presence in our markets and in
terms of technology.
4
Further integration within the four country
European collaborative association
The focus of the collaborative association
between the member firms in the
Netherlands, Germany, Austria and Belgium
is on cross-border clients and, in this context,
we are working cross-border on ‘one way
of working’. In Learning & Development,
steps were also taken, last year and this, to
harmonise the four independent national
programmes.
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Key statistics
Investing
in strategic
competencies
5
If we are to continue to differentiate ourselves
as a firm, we need to invest in the development
of new and innovative service offerings and
delivery. On the one hand, we must help
our clients create value by supporting them
in transformation processes they need to
undergo to cope with the effects of the global
megatrends (see page 45) and, on the other
hand, we must improve our own service
offerings and delivery through digitalisation.
a threat. Technology blurs the boundaries of
our sectors and markets and it attracts new
entrants. Therefore, it is imperative to stay
attuned to technological developments, where
possible on an international basis.
We have progressed further this year with
the development and introduction of new
initiatives, in particular in the area of
digitalisation. We do this as far as possible
on an internationally coordinated basis, as
investments like these can only be managed
on a large scale. We are also working with
technology partners.
Investment in multi-competency service
offerings and in specialists
Our experience is that the issues clients
are facing as a result of mega trends
require solutions involving a wider range
of competencies and approaches. We are
therefore investing in solutions that, where
permitted by legislation and regulation, cover
several lines of service. A good example of
this is the service offering we have developed,
‘Operate Globally’, which is focused on helping
global organisations identify their optimal
structures.
Digitalisation offers plenty of new
opportunities and it enables us to improve the
quality and efficiency of our existing service
offerings and delivery. We are very well aware
that, if we do not respond on a timely basis to
these changes, digitalisation could become
Another example is our Digital Consulting
offering. Digitalisation involves a different
kind of behaviour and different consumer
demand, as a result of which business models
and strategies need to change - usually very
quickly. Digitalisation has a multitude of
Kritische succesfactoren
Wat hebben we gedaan c.q. bereikt het afgelopen jaar
Innovating to improve
our service offerings and
delivery and to meet the
needs of our clients and
society as a whole
• Investeringen in (multicompetence) dienstverlening
• Investeringen in specialistische dienstverlening
• Investeringen in digitalisering van nieuwe en bestaande proposities
door alle takken van dienstverlening
• We zijn gaan samenwerken met technologiepartners (o.m. Google)
• We hebben een Data Experience Lab opgericht
• We hebben innovatieve ideeën extra aandacht gegeven en begeleid
Appendices
different angles and therefore requires the
deployment of differing competencies and
specialisms (an example is provided on
page 120-121).
Furthermore, we are continuing to invest
in specialist services, including services in
the areas of accounting, risk management,
compliance and legislative and regulatory
matters.
Investment by all lines of service in
digitalisation of new and existing propositions
Assurance, Tax & HRS and Advisory have all
moved forward this year with the digitalisation
of their propositions. Assurance, for instance,
is continuing to work on the development and
implementation of the data enabled audit. In
annual audit season waves, PwC’s audit teams
are being proactively coached in the optimal
usage of new data analysis methods. Wave 1
was focused on the 2014 financial statement
audits, Wave 2 is picking up also the audit
of non-financial information (such as CO2
emissions), and Wave 3 will likely be extending
the scope to include the opportunities afforded
by big data.
As extensively set out in section 3 (‘Taking the
opportunities the market offers us’ on page 43),
Tax & HRS are also making increasing use of
technology tools and big data in their service
offerings and delivery (an example is provided
on pages 17-18).
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Foreword
Key statistics
Advisory is investing, amongst other things,
in more software for the analysis of large
volumes of data, for instance to support forensic
investigations.
Partnering with technology partners
The introduction of digital tools and the use of
data in our service offerings and delivery mean
that the need to seek partnering arrangements
with technology partners is greater than it
was in the past. One of these arrangements
that was initiated this year is between Google
Inc. and our global organisation. In merging
our expertise with Google’s we are aiming to
develop offerings to help businesses in their
transformation processes.
We are also in discussion with a number of
other and smaller businesses that develop
technology that could be of interest to PwC.
These can involve a wide variety of structures:
strategic alliance, acquisition or purchase of a
licence. Tax & HRS acquired Taxolutions this
year. This company owns a tool (Taxmarc)
that facilitates error-free processing of BTW on
transactions (see pages 42, 43).
Appendices
Encouraging innovative ideas
We are striving to encourage an innovative
culture and to avoid having good ideas fall by
the wayside because of lack of time. We make
time available for the development, testing
and championing of innovative propositions,
and we encourage a sense of collaboration
within our network to invest and bring new
international offerings to market.
Within our four country European
collaborative association with Germany,
Austria and Belgium, we have launched a joint
platform designed to share new and refreshed
services offerings, boost innovation, and
manage new ideas. This year for the first time
this year, we held an Innovation Challenge at
this collaborative association level, designed
to stimulate and encourage. (We had already
done this earlier in the Dutch firm). There
was a total of forty innovations submitted,
of which twenty came from the Netherlands.
The ultimate winner was a Dutch proposition
to avoid and mitigate a wide variety of risks
inherent in cyber security, including nontechnical risks.
Set up of the Data Experience Lab
We have installed a Data Experience Lab in
our Amsterdam office, an experimentation
environment to encourage clients and
colleagues to get to know the opportunities
that big data provides. The Lab makes it
possible to look at and analyse your own
data and then link it in to other sources. An
extensive piece about the Data Experience Lab
is provided on pages 9-10.
5
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Foreword
Key statistics
Appendices
Risk factors
In determining and implementing our strategy, we naturally take account of the risks that affect us the most.
If we allow these risks to materialise, then we eventually we lose our relevance to clients and to society as a
whole, so we are constantly monitoring developments and trends as they evolve, both in society in general and
in the environments in which we operate. We have a Risk Council that monitors our risks on a periodic basis
and brings forward recommendations for fine-tuning.
1
The accompanying table summarises these key risks, links them to our strategic goals and critical success factors, indicates where
there have been changes to the risks since prior year, indicates the potential impacts of the risks should they materialise, and lists
the key measures we have taken to mitigate the risks.
Strategic goals
Key risks
Potential impacts of the risk
Key measures to mitigate the risks
Building on the
quality of our
service offerings
and delivery
Continuous improvement in and
testing of our approach to quality
and our risk management systems
• N
ot complying with all legislative and
regulatory requirements and our own
internal quality standards
• Loss of social relevance and raison d’être
• Financial damage from liability claims
• Implementation of the quality improvement programme, ‘Alert!’,
and of the recommendations of the Future Accountancy
Profession Working Group
• Incorporation of our knowledge of ongoing developments in
international tax legislation and regulation into one Knowledge
Centre
A governance environment and
organisation that encourages
and facilitates our ambitions for
maximum quality
• Undesirable or unethical behaviour by
partners, directors or other staff
• Reputational damage from negative publicity
• Sub-standard service quality
• Independent supervision by the Supervisory Board
• Q
uality paramount in partner and staff evaluation and
remuneration
• C
ode of Conduct with complaints and notifications
arrangements
A talented workforce continually
schooled in both the hard and the
soft aspects of our service offerings
and delivery
• Reduced attraction of PwC as an employer
• Inability to perform complex audits and deliver
advisory services to the high standards needed
• T
alent management focused on people development
through ‘PwC Professional’ and other programmes
• Competitive terms of employment
=
Increased
=
Unchanged
Decreased
Risk factors
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Foreword
Key statistics
Appendices
Strategic goals
Key risks
Potential impacts of the risk
Key measures to mitigate the risks
Delivering the
PwC Experience
Building an inclusive culture based
on encouragement and collaboration
• B
uilding and creating an organisation that
is not a (or is an insufficient) reflection of
society
• Lower quality client solution offerings
• R
estricted access to recruitment market
potential
• P
roactive approach to diversity focused on an appreciation of
differences
• More attention to behaviour and culture in training programmes
Building an externally focused
culture in which social involvement
is the norm
• Not recognising social developments (or
not on a timely basis)
• Insufficient response to stakeholder messages
• Active stakeholder dialogue
• Active participation in the public debate
• A CR programme that does not match our
know-how and expertise
• Little or no social impact
• R
educed social involvement on the part of our
staff
• F
ocus on social enterprises, supporting them with know-how
and expertise
Knowledge sharing and thought
leadership
• Lack of vision or lack of a basis therefor
• Loss of PwC brand authority
• Investment in research, including academic research, by the
Chief Economist Office, participation in a knowledge institute for
the audit profession, post-graduate study and professorships
• Sector and industry thought leadership meetings and meetings
for specific target groups such as supervisory directors and CFOs
Sensitivity for our people, their
personal development and their wellbeing (valuing their contribution)
• Too little appreciation of our people
• Reduced well-being
• Higher staff turnover
• Loss of talented people
• Sustainable deployment programmes
• Competitive terms of employment
• Talent management
Goals for profitable growth to
generate funds for investment
• Insufficient revenue and profitability
• Insufficient funds for investment in quality,
people and technology
• L
oss of market leadership/non-achievement of a
leading market position
• F
inancial planning and control cycles and monthly progress
reporting
• Strategy achievement monitoring
• Inorganic growth where necessary
X-LoS service offerings and delivery
that addresses our clients’ key
issues
• A silo mentality between our service lines
• Insufficient ability to be distinctive in the market
• E
ncouragement of collaboration by putting the client and social
agendas at the heart of what we do
• E
ncouragement of collaboration in the goal setting and
evaluation processes
Robust dialogue that matches our
clients’ strategic agendas
• Insufficient understanding of client needs,
resulting in worsening client relationships
Continuous improvement to our
work flows
=
=
=
=
• Loss of clients
• Requesting and following up feedback from clients
• Strengthening of account management
• G
reater dependence on technology
• Violation of client confidentiality (cyber
security issues)
• Reputational damage
• Financial damage from liability claims
• Investment in systems, technology and processes to get work
done more efficiently
• Investment in information security
Building an agile organisation able
to meet changing stakeholder needs
and a resilient organisation ready to
deal with (unexpected) economic
developments
• Too long a lead time between product
development and going to market
• Degradation of competitive position
• Reduced attractiveness as an employer
• J
oint investment at international levels (Global, EMEA and the
four country European collaborative association).
• P
artnering with others, including technology partners
Innovating to improve our service
offerings and delivery and to meet
the needs of our clients and society
as a whole
• O
utdated offerings, reducing our relevance
to clients and society
• W
eakening of our social relevance and
competitive position
• Insufficient agility and resilience to properly
respond to the disruptive technological
developments and/or behaviour of new market
entrants
• Investment in specialists and in technology and systems
• Application of new technology, including digital, in our service
offerings and delivery
=
Increased
=
Unchanged
=
Investing
in strategic
competencies
=
Transforming our
organisation
=
Taking the
opportunities the
market offers us
2
3
4
5
Decreased
Risk factors
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Key statistics
Appendices
Governance and remuneration
Governance
Supervisory Board in place since 1 May
At the Holding PricewaterhouseCoopers
Nederland B.V. level and in line with the
recommendations of the Future Accountancy
Profession Working Group, a supervisory
board (SB) of external members has been
installed as of 1 May. The supervisory
responsibilities of SB therefore cover all our
activities. The role of the SB is as set out
in Principle III.1 of the Dutch Corporate
Governance Code, i.e. to supervise the
interests of the entire organisation while
reflecting the relevant societal aspects
of the business including the quality and
independence of the audit. The SB plays
an important role in the appointment and
remuneration of management and partners.
What is also important is that the SB reflects
back to us how society sees us and what society
expects of us and that we reflect this feedback
in the decisions we make.
The SB makes binding proposals for the
appointment of the members of Holding’s
Board of Management (which may be rejected
only by a qualified majority) and it formulates
guidelines for the time that board members
need to be allocated in order to discharge their
managerial responsibilities. The SB is also
responsible for the appointment and dismissal
of partners in the audit practice, approval
of the policies for quality and how these are
embedded within the organisation, approval of
the remuneration process for members of the
BoM, partners and staff, determination of the
remuneration of the Board of Management,
and appointment and evaluation of the
Compliance Officer.
The SB comprises Jan Maarten de Jong
(Chair), Nout Wellink (Vice-chair), Naomi
Ellemers, Frits Oldenburg, Cees van Rijn,
Yvonne van Rooy and, as from 1 September
2015, Annemarie Jorritsma (see also page
106-107).
Incorporation of the Public Interest
Committee into the SB
In line with the Code for Audit Firms with a
PIE Licence, we have had a Public Interest
Committee since 1 July 2013. Since 1 May
2015, this committee has become a core
committee of the SB. Up to 1 May, two
members of the Local Oversight Board (now
the Partner Council – see below) were also
part of the Public Interest Committee. The
Committee focuses on how the public interest is
safeguarded in the audit process and it acts in a
sounding board and in an advisory role for the
management of the audit firm. The Report of
the Public Interest Committee is included in our
Transparency Report.
Other SB committees
In addition to the Public Interest Committee,
the SB also has an Audit Committee and a
Selection and Appointment Committee
(see also page 106-107).
Local Oversight Board replaced by
the Partner Council as of 1 May
As of 1 May 2015, the LOB has become
the Partner Council, which represents
the collective interests of the members
of Coöperatie PricewaterhouseCoopers
Nederland U.A. and provides advice on issues
that are presented to the Coöperatie’s GM for
approval (see also page 108). Following the
installation of the SB, the oversight role of the
LOB ceased.
The Remuneration Committee of the LOB
has been involved in the entire 2014/2015
partner evaluation and remuneration process
(the BMG&D process). It oversees that quality
and quality improvement have been properly
reflected in the determination of partner
remuneration. As from 1 July 2015 (i.e. from
the start of the new financial year year), this
role has been assumed by the Remuneration
Committee of the SB.
Furthermore, the claw back scheme for
Assurance Partners is effective as from this
date (see below), thereby meeting our goal
to increase the remuneration system’s focus
on quality having a significant role to play
in the determination of remuneration, as
recommended by the ‘In the Public Interest’
report.
Remuneration
Quality at the heart of remuneration
Given the public importance of our work,
our remuneration system for partners and
directors is designed such that quality,
independence, our Code of Conduct and
compliance with internal and external rules
and regulations have a significant impact on
remuneration.
The process of partner evaluation and
remuneration is set out in the diagram on
page 54.
The evaluation and remuneration of directors
follows a similar methodology as for partners,
except that they are evaluated by the Business
Unit Leaders.
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Key statistics
The evaluation and remuneration process for partners runs as follows:
Start
of the
financial
year
End of the
financial
year
Determination of
the partner’s role
Mapping
Determination
of objectives
• The Line of Service
Board or the Market
Leader submits a
proposal to the Board
of Management.
• The Board of
Management
determines the role/
responsibility of
the partner for the
coming year, based
a recommendation
from the Remuneration
Committee of the SB*.
• F
ollowing the
recommendation from
the Remuneration
Committee of the
SB*, the Board of
Management allocates
the partner to a
particular mapping
category and to a
particular position
within that category.
Evaluation
Rating
Remuneration
• An assessment is
made at the end of the
year of the extent to
which the partner has
met his/her objectives
in the areas of Clients
(including Quality &
Risk), People and
Firm/Strategy.
• Performance is
evaluated during the
BMG&D (Evaluation,
Mapping, Goal setting
& Development)
meeting on the basis
of a self-evaluation
prepared in advance by
the partner (the partner
report).
• T
he evaluation leads
to a rating (from 1 to
5) for performance in
each of the areas of
Clients, People and
Firm/Strategy, each of
which are reflected in
the remuneration for
that year.
• T
he Line of Service
Board or the Market
Leader makes a
recommendation to the
Board of Management,
which then determines
the rating of the
partner on the basis
of a recommendation
by the Remuneration
Committee of the SB*.
• T
he outcome of this
process results in a
profit share in the form
of a variable management fee that reflects
the role, specific
responsibilities and
individual performance
during the financial
year.
• In consultation
with the Primary
Reviewing Partner,
the partner
determines his/her
personal objectives,
including specific
quality objectives and
within the context of
the strategy of the
organisation.
* As the SB was installed only as of 1 May 2015, the Partner Council was asked to play a role in this process.
Partner remuneration dependent on financial
and non-financial performance criteria and
responsibilities
The aggregate amount of partner and director
remuneration varies with the financial
performance of PwC NL. The partner
remuneration is based on a points system in
which the Euro value per point is determined
as the profit available divided by the aggregate
number of points in circulation.
The points allocated to partners are 50% fixed
as responsibility-based (‘mapping’) and 50%
variable as performance-based (‘rating’). A
regular good performance means full partner
entitlement to the variable 50% element, and
a positive or negative outcome to the annual
evaluation process can lead to an adjustment
to the variable 50% element. The variable
element is determined based on individual
partner performance in the areas of Clients
(weighting: 50%), People (weighting: 25%)
and Firm/Strategy (weighting: 25%). The
evaluation of engagement quality is covered
in the area of Clients. An individual partner
rating of unsatisfactory on quality can
therefore significantly affect the amount of the
remuneration.
We also reward quality positively. A partner,
director and team rating of above average on
quality can result in additional remuneration.
No additional remuneration
for ‘regular’ conduct
‘Regular’ conduct (i.e. the conduct that we can
expect of everyone) need attract no additional
remuneration. We refer to this as ‘baseline
expectations’. Baseline expectations represent
conduct in line with our Code of Conduct,
Appendices
complying with all applicable internal and
external regulatory requirements and with
proactive involvement within the firm.
Non-compliance with baseline expectations
can negatively affect total remuneration by
25-50%.
Claw back
A claw back scheme, approved by the SB, has
been put in place for audit partners as from
1 July 2015, with a claw back period of six
years. Under this scheme, one sixth of the
individual partner’s remuneration is put to
one side for transfer to a foundation that is in
the process of being set up. If it transpires that
the external auditor has issued an incorrect
opinion for which the auditor is culpable and
which has resulted in damage, the auditor
loses entitlement to part or all of the deferred
remuneration.
Remuneration of the BoM
The methodology set out above also applied
to the Board of Management for the year
2014/2015.
As from 1 July 2015, the remuneration
arrangements for the BoM are being brought
in line with the ‘In the Public Interest’ report.
As from that date, the members of the
BoM will receive a fixed non-profit related
remuneration and a variable element not
exceeding 20% of the fixed amount that is to
be based on the achievement of long-term
goals set by the SB within the context of the
organisation’s societal role. Determination of
the remuneration of the members of the BoM
will be the responsibility of the SB as from
2015/2016.
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Key statistics
2014/2015
2013/2014
Δ%
153.9
605.8
156.1
639.7
-1.4
-5.3
584.2
627.8
-6.9
Staff bonuses (€ millions)
29.3
30.3
-3.3
Average salary cost per FTE (€’000)
Average bonus per FTE (€’000)
72.2
7.6
71.8
8.0
0.6
-5.0
Management fee, salary and emoluments
Available for distribution to partners (€ millions)
Average partner management fee* (€’000)
Average financing per shareholder at year end
(€’000)
*
Payments are made from the management fee relating to items such as goodwill rights, pension contributions,
social security and disability contributions, life insurance premiums, etc.
Sanctions policy
Under our policies for quality, any instance of
non-compliance with external and internal
requirements or unacceptable behaviour can
ultimately result in sanctions. Depending
on the nature and severity of the case, these
vary from a written warning or reprimand
to suspension and dismissal or, for partners,
to termination of the association agreement.
Any reprimand is reflected in the evaluation
process and can have a negative effect on
remuneration.
Our sanctions policy provides a summary of
the sanctions available and the bodies to which
infringements are to be referred. These bodies
include the Complaints Committee and the
Business Conduct Committee (BCC) (both
emanating from the Code of Conduct – see also
page 112) and the Independence Sanctions
Committee. These committees do not raise
sanctions themselves; they submit their
proposals to the BoM.
During the past financial year, based on
the Independence Sanctions Committee’s
advice, seventeen sanctions were imposed
for independence infringements, of which
twelve were written warnings and five were
reprimands. The written warnings all related
to non-registration or late registration of
purchases and/or sales of financial interests.
The reprimands related to the holding of
restricted financial interests.
Since 2014/2015, in addition to our system of
sanctioning and in order to increase awareness
of the importance of timely registration,
we have introduced a system of sending
notifications to reviewed partners, directors
and future directors, for instance reminding
them of the need for timely input of updates
and new information to the system that records
their investment holdings. The classification
of sanctions has changed as part of this hew
notification approach. If the previous approach
had been used, there would have been 54
written warnings and six reprimands.
The BCC, the body that monitors potential
suspicions of misconduct, received no
notifications this past financial year. The
Appendices
Evaluation of staff based on performance and behaviour
The remuneration process for staff relies heavily on regular two-way feedback. Our remuneration
system is based on two elements: performance and competency, each of which is rated on a scale
of 5 to 1.
Competency (which is the basis for salary increases) relates to the performance level of the
individual and the level of technical competency the individual has achieved. Performance (which
is the basis for the bonus) relates to aspects such as commitment, flexibility, team spirit, proactivity
and sense of responsibility (both to colleagues and to PwC) or some other unusual achievement.
Along the same lines as for the partners and directors, all staff set out their objectives for the
coming year in liaison with their immediate superior. Half way through the year, based on individual
appraisals and other feedback, they determine the progress to date and, at the end of the year,
they assess to what extent the objectives have been met.
Staff evaluation is carried out by the individual’s immediate superior. Staff also have access to
a career coach with whom they can discuss their ambitions and motivational factors and the
progress they need to make to achieve their goals.
The Works Council is involved in establishing the terms of employment for staff. A Works Council
committee, comprising representatives from all Lines of Service and a Chair, negotiates with the
Board on these conditions. Where pension arrangements are concerned, both the Works Council
and our HC department often draw on the advice of specialists within the organisation.
2014/2015
2013/2014
Relationship of the highest remuneration within PwC NL to the median of the total
remuneration within PwC NL (including partners) *
Factor
34.7
32.8
Percentage increase (-decrease) in annual income
-2.7
-4.85
Relationship of the highest remuneration within PwC NL to the average of the total
remuneration within PwC NL (including partners) *
Factor
20.6
19.1
Percentage increase (-decrease) in annual income
-1.3
2.53
* Based on annual income, including bonuses and excluding non-monetary elements of remuneration such
as private use of mobile telephone, lease car and expense allowances
Complaints Committee, the body to which
our people can submit complaints when
they believe that they have been subjected to
behaviour that they believe to be humiliating,
discriminating, intimidating or aggressive,
handled two complaints this year.
As stated on page 37, we have given particular
attention this year to de Code of Conduct
and the related infrastructure for reporting
complaints.
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Foreword
Key statistics
Appendices
Our ambition is to fulfil our purpose: to build trust in society and
solve important problems. In order to achieve this, we must move
forward with investment in high-value, innovative, technologysupported service offerings and delivery. Profitable growth is not an
end in itself but a means of generating the investment funding
necessary to bind the best people to our organisation in order to
achieve this ambition.
Continued investment in the quality of the audit
Restoration of public trust in the quality and independence of the audit remains
our top priority, and we have been robustly implementing the recommendations
set out in the ‘In the Public Interest’ report issued by the Future Accountancy
Profession Working Group. We have also been investing in the quality of the
audit and audit files by investing more time and people in our audit work. The
rotation of audit engagements in the PIE sector has also involved a level of high
investment this past year. In this current year, we expect these investments to
continue.
Investment in service offerings to help clients in their transformation processes
The first very tentative indications of economic recovery that we reported last
year have continued, as has the investment appetite of our clients. At the same
time, we see that they need support in the transformation processes they are
having to go through as a result of the so-called global megatrends. This means
an increasing demand for integrated service provision from our tax and other
advisory practices that need to cover a wide spectrum of issues such as strategy,
risk management, accounting, technology and transactions. We are responding
to this by developing multi-competency services and investing in the people and
know-how to achieve this.
One condition of developing successful propositions is that we drill down into
the challenges our clients are facing. Their strategic agenda must be right at the
heart of what we do. Another condition is better collaboration across our various
lines of service. Both our Learning & Development programmes and the cultural
change movement, ‘Moments that Matter’, that we set in motion this past year
will be supportive of this.
Continuing our progress on culture and behaviour
One of the pillars of our strategy is maintain the impetus of the PwC Experience,
including building and maintaining relationships and behaving in the manner
we aspire to in a secure and inclusive culture. We will continue to focus on
culture and behaviour, not only through the cultural change movement that we
have launched, Moments that Matter, but also in our learning programmes, in
our coaching and in our evaluation processes.
More investment in technology
We recognise the increasing importance of technology to the quality and
relevance of our service offerings and delivery, not only in terms of the
substantive innovation of these services but especially also in terms of
reinvigoration and renewal in the interaction and collaboration with our clients.
We are also aiming to keep our business processes fit for purpose through smart
deployment of technology, and we will be investing more in technology both
nationally and internationally.
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Foreword
Key statistics
Appendices
Vision 2020: What we want to be in five years
Expectations for financing and headcount
Given our current and anticipated liquidity situation, we expect to be able to
finance the planned investments from our own working capital and existing
resources.
At a meeting of the leaders of the largest PwC member firms (including the Netherlands), we
recently formulated our strategy for the coming five years. This strategy builds on the strategy
we have been implementing in recent years and is as set out in this Annual Report. We have
defined more clearly the framework of choices available to us. The new strategy is completely
in line with our purpose.
We expect no great changes to our headcount other than turnover levels that are
normal for the nature and scope of our business and an increase in headcount in
our growth areas.
What we want to be in five years is a:
Lower profitability expected for 2015/2016
Our revenue from clients is dependent on the uncertain macro-economic
situation and ongoing developments at our clients and in the sectors and
segments in which we operate. As a result of the investments noted, we
currently expect that profitability for the current year will be down on last year.
The Board of Management:
Drs. P.J. van Mierlo RA (Statutory director)
Drs. S.A. Boonstra *
Prof. Mr. F.A. Engelen *
Drs. A.H.M. van Gils RA *
Drs. J.D. Lamse-Minderhoud RA *
Drs. M. de Ridder RA *
• L
eader in building and sustaining trust-based institutions
We are already helping banks with the preparations for their stress tests,
we are involved in implementing systems with which food manufacturers
can assure the safety of the food in their supply chains, and we are
contributing to healthy business practices in the healthcare sector.
We aim to continue with projects such as these and with developing
solutions that contribute to the restoration of trust in public authorities,
institutions and businesses.
• M
ulti-nodal organisation
We aspire to be an organisation that operates locally, regionally and
globally.
• P
rofessional services network for client service from strategy
through execution
We aim to support our clients from the moment that they determine their
strategies all the way through to implementation and execution. We are
convinced that, with all the competencies and specialisms we have in
house, this is the best way for us to deliver added value.
• T
echnology enabled innovator
We are seeing technology significantly affect our service offerings and
delivery. With the help of technology, we aim, to improve our service
offerings and delivery and to create a culture that encourages innovation.
We cannot do this alone; we are not an IT company and we do not
aspire to be such. Consequently, we are aiming for close collaboration
with specialist partners.
* Authorised executive director
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Foreword
Key statistics
Appendices
‘It’s obvious,
but we don’t
always do it.’
The cultural change movement,
‘Moments that Matter’, that PwC set
in motion this past year focuses on
instances when behaviour made a
difference (see inset). When you look
at those moments, you see no great
surprises. But what you do see is
that ordinary day-to-day behaviour
can really have an impact. Three
ambassadors of the programme
believe that what is important
is to be aware of the impact that
behaviour can have.
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Key statistics
Amanda Korver-Heins (Assurance), Stefan
Verstraeten (Advisory) and Hanan Zaytoun
(Firm Services) are the ambassadors, or
reporters, for ‘Moments that Matter’. They
are part of a group of some fifty PwC people
from all levels of the organisation that, within
their teams or Business Units, are promoting
dialogue and getting initiatives going in the
areas of culture and behaviour. They have
also been tasked with recording stories and
experiences that can serve to inspire others
(hence the term ‘reporter’).
Awareness
‘Awareness is a term that comes up very often
during the discussion, and awareness is the
key word’, says Stefan. And that is how the
ambassadors respond to those colleagues who
say ‘don’t we do this already?’.
Amanda: ‘I do recognise that sentiment, and
it does have some logic to it. It’s behaviour
you would expect, but we don’t always live
it. People sometimes behave differently in
the maelstrom of deadlines and when they’re
under pressure. But, especially then, it’s
important to be aware of your behaviour and
the impact it can have – right at the time when
you can make a difference.’
Hanan: If you stay alert to how you behave,
then you relate better to each other and this
improves the quality of our service delivery. It
adds value to us and to our client.’
Don’t be afraid to ask
Hanan: ‘I always had the idea that it was all
important to be careful about how you come
across to others, for instance asking a colleague
how he or she is when things are not going
well. I sometimes have the impression that
people don’t dare to enquire when something
serious has happened.’
Amanda: ‘And, the other side of the coin is that
people sometimes say nothing when they are
not feeling good about themselves, because of
things that have happened or because they’re
sick, for instance. So, sometimes you might
not realize at all that someone is suffering or
is absent. If you are open about how things are
going, you give your colleagues the chance to
do something about it. I think it’s important to
know this, just so you can help, for instance by
taking some of the pressure off them or by just
being there to listen.’
Stefan: ‘You mean that the culture should
sometimes be a bit more open?’
Amanda: ‘Right, that’s exactly what I mean’.
Stefan: I think that PwC does have a fairly
open culture, but we are very much focused on
output and deliverables, so the softer side of
things gets less attention.
Little things
Amanda: ‘Very often it’s just the little things
that matter. This year we sent a personal
Christmas card to everyone from the group,
and then an Easter gift – no great amount of
effort, but they were well appreciated. I took a
group of expats who had only experienced the
Amsterdam-The Hague client circle on a trip
through North Holland. Very enjoyable and
easy to do, but it makes an impression and it
makes people feel welcome. That’s the sort of
thing that I hope Moments that Matter moves
forward.’
Hanan says that ‘sincere interest in colleagues
and engagement with them’ is the moment
that matters most to her. ‘If that works well,
then the rest just follows. You can open
yourself up more, and it’s easier to give
feedback to each other.’
She recounts a ‘Moments that Matter’ initiative
that she and a colleague organised in her
department in which people had to exchange
compliments. ‘We filmed those moments – just
with our phones – patched them together and,
unannounced, played them back to a team
meeting. The reactions were very positive.
Doesn’t everyone like it when they get a
compliment every now and then?’
Avoid overkill
Stefan: ‘What has become clear to me these
past few months is that we can add so much
more value to ourselves and to the client by
working well together and striving for high
performance as a team. It’s right at that point
that you have an integrated whole and a good
atmosphere, and you can make a clear impact.
I have development high on my priority list
and I realise that my own development gets a
boost in a team like that.’
Appendices
Stefan warns about avoiding overkill. ‘I think
that, by now, all PwC folks will have heard
about and experienced ‘Moments that Matter’.
We must ensure that ‘Moments that Matter’
does not become an end in itself with everyone
naming everything as a moment. What
ultimately matters is that we remain conscious
of our behaviour and aware of the impact it
can have on others – for instance that we show
a greater level of interest without feeling the
need to highlight it as a ‘Moment that Matters’.’
This year, we started the roll out of a cultural
change movement within our organisation
that we call ‘Moments that Matter’, taking
the PwC Experience (the way in which we
relate to our clients and to each other) to a
greater level of depth (see page 36).
The basic principle is that we build our
culture through our behaviour at moments
crucial to our people, our clients and society
in general. We have defined six of these
‘Moments that Matter’:
• E
xplicit follow up on feedback we have
received from our clients
• B
eing there when your client is
encountering difficulties
• H
aving a real and honest conversation
about performance with proper
preparation
• H
aving a robust dialogue with our clients
at times when we feel vulnerable
• A
ppreciation of working together and
team interests over individual interests
• S
incere interest in each other; being an
involved colleague
Amanda: ‘Together, we can make a difference.
After all, there are periods when I see more of
my colleagues than I see of my husband.’
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Key statistics
Appendices
Holding PricewaterhouseCoopers Nederland B.V.
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Foreword
Contents
Key statistics
1.
Consolidated financial statements
62
1.1.
1.2.
1.3.
1.4.
1.5.
1.6.
1.7.
1.8.
Consolidated balance sheet as at 30 June 2015 (before appropriation of profit)
Consolidated profit and loss account for the year ended 30 June 2015
Consolidated statement of cash flows for the year ended 30 June 2015
General notes
Notes to the consolidated balance sheet as at 30 June 2015
Notes to the consolidated profit and loss account for the year ended 30 juni 2015
Other notes
Segment information
62
64
65
67
72
78
80
82
2.
Company financial statements
84
2.1.
2.2.
2.3.
2.4.
2.5.
Company balance sheet as at 30 June 2015 (before appropriation of profit)
Company profit and loss account for the year ended 30 June 2015
General notes
Notes to the company balance sheet as at 30 June 2015
Further information
84
86
87
88
90
3.
Other information
92
3.1.
3.2.
3.3.
3.4.
3.5.
Provisions of the Articles of Association governing the appropriation of profit
Specific provisions of the Articles of Association governing shareholder control
Proposed appropriation of profit
Events occurring after the balance sheet date
Independent auditor’s report
92
92
93
93
94
Appendices
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Foreword
Key statistics
Appendices
1. Consolidated financial statements
1.1 Consolidated
balance sheet as at 30 June 2015 (before appropriation of profit) (in €’000)
30 June 2015
30 June 2014
Fixed assets
Intangible fixed assets
Intellectual property
Goodwill
[1]
3,588
2,075
1,978
5,663
Tangible fixed assets
Leasehold improvements
Fixtures and fittings
Other fixed assets
Fixed assets under construction
1,978
[2]
10,898
1,718
6,612
969
15,540
2,435
2,753
37
20,197
Financial fixed assets
Other financial interests
Other receivables
20,765
[3]
25,658
1,742
11,626
1,740
27,400
13,366
33,449
26,187
Current assets
Work in progress
[4]
Receivables
Receivables from clients
Taxes and social security charges
Other receivables
Prepayments and accrued income
[5]
[6]
[7]
[8]
Cash and cash equivalents
[9]
Total
158,408
204
5,634
18,708
156,310
7,861
20,850
182,954
185,021
10,216
87,675
279,879
334,992
[..] The numbers in square brackets refer to the corresponding numbers in the notes.
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Foreword
Key statistics
30 June 2015
Appendices
30 June 2014
Equity and liability
Group equity
[10]
10,260
11,627
Provisions
[11]
32,026
31,802
Long-term liabilities
Subordinated loans
Accrued expenses and deferred income
[12]
[13]
41,540
16,435
40,340
19,036
57,975
Current liabilities
Liabilities to suppliers
Liabilities to shareholders
Other liabilities
Accrued expenses and deferred income
[14]
[15]
[16]
[17]
[18]
Total
19,744
25,453
34,957
77,897
21,567
59,376
19,138
74,081
38,613
79,669
20,686
179,618
232,187
279,879
334,992
<naam>
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Key statistics
Appendices
1.2 C
onsolidated profit and loss account or the year ended 30 June 2015 (in €’000)
2014/2015
Net revenue
[19]
Cost of work contracted-out and other external costs
Salaries and wages
Social security charges
Amortisation and depreciation of fixed assets
Other operating costs
Total operating costs
[20]
Operating profit
Interest and similar income
Interest and similar expense
[21]
[1,2]
[22]
2013/2014
697,309
88,364
231,869
49,124
10,884
159,413
671,574
78,792
225,755
50,424
9,615
144,843
539,654
509,429
157,655
[23]
28
-1,144
Profit on ordinary activities before tax
Taxes
[24]
Management fee Coöperatie PricewaterhouseCoopers Nederland U.A. [25]
-1,978
-154,561
Profit after tax
162,145
197
-5,303
156,539
157,039
-2,498
-153,174
0
1,367
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Key statistics
Appendices
1.3 C
onsolidated statement of cash flows for the year ended 30 June 2015 (in €’000)
2014/2015
Cash flow from operating activities
Operating profit
Adjustments for:
Amortisation and depreciation
Movements in provisions
Movements in accrued expenses and deferred income
2013/2014
157,655
[1-2]
[11]
[13]
10,884
224
-2,601
162,145
9,615
-1,552
-2,628
8,507
Changes in working capital
Receivables
Work in progress
Current liabilities
[5-8]
[4]
[14-18]
2,859
-7,262
-58,481
Cash flow from business operations
Dividend received
Interest
Taxes
Management fee Coöperatie PricewaterhouseCoopers Nederland U.A.
Cash flow from operating activities
Cash flow from investing activities
Additions to intangible fixed assets
Additions to tangible fixed assets
Disposals of tangible fixed assets
Additions to financial fixed assets
Cash flow from investing activities
[3]
[23]
[24]
[1]
[2]
[2]
[3]
-1,763
870
85,896
-62,884
85,003
103,278
252,583
105
-938
-3,736
[25]
5,435
131
-5,245
-5,192
-4,569
-10,306
-154,561
-55,852
-153,174
89,103
-3,882
-8,132
47
-9,553
-4,320
339
-5,386
-21,520
-9,367
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Key statistics
2014/2015
Cash flow from financing activities
Subordinated loans
Dividend distributions
Cash flow from financing activities
[12]
[29]
2013/2014
1,200
-1,367
-2,600
-4,531
-167
-7,131
Net cash flow
-77,539
72,605
Cash and cash equivalents - opening
Net cash flow
Foreign currency exchange differences
Net cash and cash equivalents - closing
87,675
-77,539
80
10,216
15,003
72,605
67
87,675
[9]
Appendices
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Foreword
Key statistics
Appendices
1.4 General notes
Activities
Since 2004, PwC has prepared its
extensive annual financial reporting on its
activities in the Netherlands at the level of
PricewaterhouseCoopers B.V. During this
past financial year PwC has installed a
Supervisory Board at the top Dutch holding
level, Holding PricewaterhouseCoopers
Nederland B.V. (hereafter referred to ‘the
Company’). We are therefore now publishing
our annual report at this level. In addition to
PricewaterhouseCoopers B.V., the Company
also holds a number of interests in other
entities in the Netherlands and abroad.
Holding PricewaterhouseCoopers Nederland
B.V. has its registered office in Amsterdam.
Its activities and those of its subsidiaries
comprise Assurance, Tax & HRS and Advisory
services. These activities are further described
in the Report of the Board of Management.
Group relationships
B.V. is a wholly owned subsidiary of PwC
Europe SE Wirtschaftsprüfungsgesellschaft,
Frankfurt/Main, Germany.
The private limited companies owned
by the professional practitioners (the
partner BVs) have each concluded an
association agreement with Coöperatie
PricewaterhouseCoopers Nederland U.A. and
B.V., under which the partner BV makes the
professional practitioner available to practise
one of the professions described under
Activities in return for a management fee.
Coöperatie PricewaterhouseCoopers
Nederland U.A. holds one priority share in
B.V. Coöperatie PricewaterhouseCoopers
Nederland U.A. also holds an interest in
Konsortium PwC Europe, registered in
Frankfurt/Main, Germany. Konsortium
PwC Europe is a consortium of the Dutch,
German, Austrian and Belgian partners and
holds a 100% interest in PwC Europe SE
Wirtschaftsprüfungsgesellschaft, registered
in Frankfurt/Main, Germany. Coöperatie
PricewaterhouseCoopers Nederland U.A.’s
equity share in Konsortium PwC Europe was
32.6% as of 30 June 2015 (30 June 2014:
32.4 %). This interest in Konsortium PwC
Europe is revised annually as of 1 July in
proportion to the number of Dutch member
firm professional practitioners relative to the
total number of professional practitioners in
the PwC Europe consortium of PwC member
firms.
Basis of reporting
Principles of consolidation
The consolidated financial statements
have been prepared in accordance with the
requirements of Part 9, Book 2, of the Dutch
Civil Code and with the Guidelines for Annual
Reporting in the Netherlands as issued by the
Dutch Accounting Standards Board. Where
no specific accounting policy is noted, assets
and liabilities are carried at the historical cost
amounts at which they were acquired and
incurred, respectively.
The consolidated financial statements include,
on a fully consolidated basis, the financial
statements of Holding PricewaterhouseCoopers
Nederland B.V. and of those group companies
in which, directly or indirectly, it has a
shareholding of more than one half of the
voting rights or can otherwise exercise
majority control. Together, these are referred
to in the financial statements as ‘the Group’.
As the company financial statements of
B.V. are included in the consolidated financial
statements, the company profit and loss
account has been prepared in abridged form
in accordance with Section 2:402 of the
Netherlands Civil Code.
Intercompany transactions and profits, and
balances between group companies and
other consolidated entities, are eliminated to
the extent that the results have not yet been
realised through transactions with third
parties.
The entities included in the consolidation are
as follows:
• PricewaterhouseCoopers B.V., Amsterdam
(100%)
• PricewaterhouseCoopers Accountants N.V.,
Amsterdam (100%
• PricewaterhouseCoopers
Belastingadviseurs N.V., Amsterdam
(100%)
• PricewaterhouseCoopers Advisory N.V.,
Amsterdam (100%)
• PricewaterhouseCoopers Compliance
Services B.V., Amsterdam (100%)
• PricewaterhouseCoopers Pensions,
Actuarial & Insurance Services B.V.,
Amsterdam (100%)
• PricewaterhouseCoopers Certification B.V.,
Amsterdam (100%)
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Key statistics
• P
ricewaterhouseCoopers IT Services (NL)
B.V., Amsterdam (100%)
• Taxolutions B.V., Amsterdam (100%)
• Taxmarc B.V., Amsterdam (100%)
• E xecutive Academy VOF, Amsterdam
(100%)
• PricewaterhouseCoopers N.V., Amsterdam
(100%)
• PricewaterhouseCoopers Deelnemingen
B.V., Amsterdam (100%)
• TruEconomy Consulting Holding B.V.,
Zaltbommel (100%).
All of the abovementioned consolidated
entities form a fiscal unity for
corporation tax purposes with Holding
PricewaterhouseCoopers IT Services (NL)
B.V. was added as from its incorporation on 30
October 2014. Taxolutions B.V. and Taxmarc
B.V. were added as from 6 March 2015, the
date of acquisition, with their results for the
period 1 January up to and including 5 March
2015 also being included in the fiscal unity as
agreed with the tax authorities.
Fiscal unity
Acquisition of group companies
Except for Executive Academy VOF,
PricewaterhouseCoopers N.V. and
PricewaterhouseCoopers Deelnemingen
B.V., all of the abovementioned
consolidated entities form a fiscal unity
for value added tax purposes with Holding
PricewaterhouseCoopers IT Services (NL)
B.V. was added as from its incorporation on
30 October 2014, and Taxolutions B.V. and
Taxmarc B.V. were added as from 1 April
2015.
Results and identifiable assets and liabilities
of acquired entities are recognised in the
consolidated financial statements from the
date of acquisition, this being the date on
which majority control is obtained.
The purchase price is the monetary, or
equivalent, amount agreed for the acquisition
of the acquired entity increased by any costs
directly attributable to the acquisition. Where
the acquisition cost exceeds the net fair value of
the identifiable assets and liabilities, the excess
is recognised as goodwill under intangible
assets.
Estimates
In applying accounting policies and financial
reporting requirements, the Board of
Management needs to make judgements and
estimations that can be critical to the amounts
reported in the financial statements.
Where necessary to provide the insight
required by Article 2:362, clause 1 of
the Dutch Civil Code, the nature of these
judgements and estimations, and details of
the underlying assumptions, are provided in
the note disclosure for the relevant balance
sheet item.
Related parties
Related parties are defined as any legal
entities that can be majority controlled,
jointly controlled or significantly influenced
by the company and any legal entities that
can control the company, together with the
statutory director, the authorised executive
directors, the members of the Supervisory
Board and the shareholders of Holding
PricewaterhouseCoopers Nederland B.V. and
their close relatives.
Appendices
Accounting policies
for assets and liabilities
General
Unless otherwise indicated, all amounts
in the financial statements are reported in
thousands of Euros (€’000).
Comparison with prior year
The Group’s financial year runs from 1 July
to 30 June. The accounting policies applied in
determining balance sheet and profit and loss
account items are unchanged from prior year.
In the interests of transparency regarding
amounts payable to the professional
practitioners and as further described in the
management fee policy in the Accounting
policies for the profit and loss account, it has
been decided to deviate from the prescribed
reporting formats (‘Besluit modellen
jaarrekening’) by including the management
fee as the final line item prior to Profit
after tax.
The nature and extent of transactions with
related parties are disclosed, together with
any other information necessary to provide
sufficient insight.
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Key statistics
Foreign currencies
Goodwill
Impairment of fixed assets
The financial statements are presented in
Euros, which is both the functional and the
presentation currency. Foreign currency
transactions in the reporting period are
translated at the exchange rates prevailing
on the dates of the transactions. Monetary
amounts denominated in foreign currencies
are translated into the functional currency
at exchange rates prevailing at the balance
sheet date. Resulting exchange differences
are taken to the profit and loss account,
except where hedge accounting is applied.
Non-monetary assets carried at acquisition cost
in a foreign currency are translated using the
exchange rates prevailing on the dates of the
transactions.
Goodwill is determined as the excess of
the acquisition cost over the fair value of
identifiable assets and liabilities acquired,
reduced by accumulated amortisation and
impairment provisions. Goodwill is amortised
on a straight-line basis over the estimated
useful life.
At each balance sheet date, the company
assesses whether there is any indication of
asset impairment and, where there are such
indications, the recoverable amount of the
asset is determined. The recoverable amount
is defined as the higher of the fair value less
costs to sell and the value in use. An asset
is deemed to be impaired if its carrying
amount, or the carrying amount of the cash
generating unit to which it belongs, exceeds
its recoverable amount. Impairment is
recognised as an expense in the profit and loss
account.
Financial instruments
Financial instruments comprise other
financial interests, receivables, cash and cash
equivalents, subordinated loans, liabilities to
suppliers and liabilities to related parties. The
accounting policies for these items are set out
individually below.
Intellectual property
Intellectual property is carried at acquisition
cost less amortisation on a straight-line basis
over the expected future useful life.
Tangible fixed assets are carried at acquisition
cost less accumulated depreciation
determined on a straight-line basis over their
expected useful lives and recognising residual
values. Assets under construction are not
depreciated.
Participating interests over which significant
influence is exercised are carried at net asset
value, determined using the same accounting
policies as used in these financial statements.
Participating interests acquired are initially
recognised at the fair value of the identifiable
assets and liabilities on acquisition.
Thereafter, the accounting policies used for
these financial statements are applied using
this initial value as a basis.
Other financial interests are carried at the
lower of acquisition cost and, where there are
indications of impairment, the best estimate
of future recoverable amounts.
Work in progress
Work in progress comprises services delivered
but not yet invoiced and is carried at the
amounts expected to be recovered from
clients. Where the net amount of work
performed, provisions and invoiced amounts
on any individual project is negative, this net
amount is recognised under other liabilities.
Receivables
Receivables are recognised initially at the
fair value of the service provided and are
subsequently measured at amortised cost,
which for current receivables is the nominal
amount, net of provisions for doubtful debts.
Appendices
Deferred tax assets are recognised on tax
losses and on temporary differences between
the tax bases of assets and liabilities and their
carrying amounts in the financial statements,
to the extent that it is probable that future
taxable profit will be available against which
the temporary differences and fiscal losses can
be utilised.
Deferred income tax is determined, at nominal
amount, on the basis of tax rates applying at
the year-end or at future tax rates where these
have been have been enacted.
Cash and cash equivalents comprise cash
at hand, bank balances and deposits with
maturities of less than twelve months. Bank
overdrafts are shown as payables to credit
institutions in current liabilities. Cash and
cash equivalents are carried at their nominal
amounts.
Provisions
Provisions are recognised for legally
enforceable or constructive obligations which
exist at the balance sheet date and of which
the settlement is uncertain.
Pension provisions relate to commitments
under non-activity arrangements.
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Key statistics
Personnel provisions relate to long-term
unemployment benefit top-ups, long-service
entitlements and severance pay. The
provisions for commitments under
non-activity arrangements and long-service
entitlements are carried at present value
using a discount rate of 2.5% (30 June 2014:
4%) and taking into account staff turnover
probability. The provision for long-term
unemployment benefit top-ups is carried at
its present value using a discount rate of 2.5%
(30 June 2014: 4%).
The provision for severance pay and other
provisions are carried at the nominal amounts
of the expected cost of settlement. Other
provisions include provisions for rental voids,
delivery obligations at the end of rental
contracts and professional liability matters.
Delivery obligations at the end of rental
contracts are provided for evenly over the
rental period.
Subordinated loans
Subordinated loans include amounts that
mature after more than one year. Loans
repayable within one year are recognised
in current liabilities. The loans are initially
recognised at fair value and are thereafter
carried at amortised repayment amount.
Accrued expenses and deferred
income (long-term)
Long-term accrued expenses and deferred
income include incentives received in
connection with the rental of a number of
office premises. These amounts are of a
long-term nature and are taken to income on
a straight-line basis over the term of the rental
contracts.
Accounting policies for the
profit and loss account
Liabilities
General
Liabilities are initially recognised at fair
value increased by transaction costs directly
attributable to the assumption of the liability,
and thereafter at amortised cost. The
difference between carrying amount and
ultimate repayment amount is charged to
income as interest expense over the term of
the liability based on the effective interest
rate. Bonus and untaken leave entitlements
are carried at the amounts required for
monetary settlement. Other assets and
liabilities all mature within one year.
Profit after tax represents the difference
between the recoverable value of services
rendered and the costs and other charges
incurred during the year. Losses are
recognised as and when they occur and to the
extent that they can be reliably estimated.
Appendices
Operating costs
Operating costs are recognised under the
historical cost convention and on the accruals
basis.
Amortisation and depreciation of
intangible and tangible fixed assets
Exchange differences arising on conversion
or translation of monetary items in foreign
currency are recognised in the profit and loss
account in the year in which they arise, unless
hedge accounting is applied.
Depreciation of tangible fixed assets is based
on acquisition cost and is charged to the
profit and loss account on a straight-line basis
reflecting the estimated useful economic
lives of the assets and their expected residual
values. Intangible fixed assets, including
goodwill, are amortised over their estimated
economic lives from the date they are brought
into use. Where there is a change in estimated
useful economic lives, the effects are reflected
prospectively in future amortisation charges.
Net revenue
Salaries and social security charges
Salaries and wages (including bonuses and
holiday allowances) and social security
charges are expensed to the profit and loss
account as and when they are due.
Operating leases
Except for net revenue for work performed by
Advisory on the basis of special arrangements,
which is recognised on receipt, net revenue
represents the amounts chargeable for services
rendered during the year. These are recognised
as and when it becomes likely that they will be
realised, with due recognition of arrangements
made with clients regarding services to be
billed as the work progresses.
Lease contracts under which the risks and
rewards of ownership do not accrue to the
Group are recognised as operating leases.
Operating lease obligations are charged to
profit and loss, net of any incentives received
from the lessor, on a straight-line basis over
the term of the contract.
Where it becomes likely that total project costs
will exceed total project revenues, the losses
are recognised immediately in the profit and
loss account as other operating costs and the
provision is included in work in progress in the
balance sheet.
and Accrued expenses and deferred
income (current)
Other assets and liabilities are carried at the
amounts receivable and payable, respectively.
Receivables are carried net of provisions
needed for non-recoverability. Other assets
and liabilities all have a remaining maturity
period of less than one year.
Exchange differences
Pensions
The Group has a number of pension schemes.
For most schemes, the premiums are based on
salary for the year in question and are payable
to insurance companies or pension funds.
Premiums are recognised when they become
payable. Under the schemes, the Group has
no further legal or constructive obligation
should a funding deficit arise at the insurance
company or pension fund.
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Key statistics
The Group also has a so-called non-activity
scheme. The annual cost of this scheme
reflects the increase in the present value
of the vested entitlements based on period
of service, imputed interest and actuarial
assumptions.
Interest income and expense
Interest income and expense, including
transaction costs relating to loans received,
are recognised evenly over the periods to
which they relate based on the effective
interest rate inherent in the underlying assets
and liabilities.
Dividends receivable
Dividends from other participating interests
and securities are recognised as and when
B.V. becomes entitled to receive them.
Taxes
The corporation tax charge is determined
based on the results of the Group as reduced
by the management fee payable by Holding
to Coöperatie PricewaterhouseCoopers
Nederland U.A.
The tax burden on the profit before
management fee lies primarily with the
partner BVs as the ultimate recipients of this
management fee. Consequently, the effective
tax rate in the financial statements differs
from the Dutch statutory rate.
Management fee
Under the association agreements with the
partner BVs of the professional practitioners
(which are the members of Coöperatie
PricewaterhouseCoopers Nederland U.A.) and
under the internal financial arrangements
with partners , the members of the Coöperatie
are entitled to a profits-related management
remuneration.
This management remuneration is included
as an expense in the profit and loss account.
Including this management remuneration as
the final line item prior to the profit before tax
provides transparency as to the results that
accrue to the professional practitioners. This
is also addressed in item 1.7 of the Other notes
(Management agreement and other expenses
of members). This treatment, based on Article
2:362, clause 4 of the Dutch Civil Code,
represents a deviation from the prescribed
reporting formats (‘Besluit modellen
jaarrekening’).
Segment information
As the Group’s operations are run primarily
through three core businesses (Assurance,
Tax & HRS and Advisory) and central support
services (Other), segment information is
provided for these four elements.
Appendices
Basis of preparation of the
consolidated statement of
cash flows
General
The statement of cash flows is drawn up
using the indirect method. Cash resources
consist of cash and cash equivalents. Cash
flows in foreign currencies are translated
at the exchange rates ruling on the dates of
settlement, and cash and cash equivalents in
foreign currencies at the end of the financial
year are translated at the exchange rates
ruling on the balance sheet date. Cash inflows
and outflows that relate to interest, dividends
received and taxes on profits are reported
under cash flow from operating activities.
Dividends paid are reported under cash flow
from financing activities.
Working capital
Working capital represents the net amount
of receivables, work in progress and current
liabilities excluding amounts owed to credit
institutions and subordinated loans.
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Key statistics
Appendices
1.5. Notes to the consolidated balance sheet as at 30 June 2015 (in € ‘000)
[1]
Intangible fixed assets
Intellectual property represents the value of the intellectual property of the Taxmarc
software licences acquired through the Group’s acquisition of Taxolutions B.V.
The movements were as follows:
2014/2015
2013/2014
Goodwill
Total
Total
-
5,065
-3,087
1,978
5,065
-3,087
1,978
5,065
-2,287
2,778
4,306
-718
3,588
1,076
-979
97
5,382
-1,697
3,685
-800
-800
Balance as at 30 June
Cost
Accumulated amortisation
Carrying amount
4,306
-718
3,588
5,052
-2,977
2,075
9,358
-3,695
5,663
5,065
-3,087
1,978
Amortisation percentages
33
20-33
Intellectual
property
Balance as at 1 July
Cost
Accumulated amortisation
Carrying amount
Movements
Additions
Amortisation
Taxolutions B.V. and its wholly owned subsidiary Taxmarc B.V. were acquired
on 6 March 2015 at a cost of € 4.3 m, of which € 1.5 m is contingent on future
performance. The financial results of these two companies for the period 1 January
2015 to 5 March 2015 are immaterial and, consistent with the treatment for tax
purposes, the financial results of these two companies have been included in the
Company’s consolidated financial statements as from 1 January 2015.
The goodwill arose on the acquisitions of Taxolutions B.V. as of 1 January 2015
and TruEconomy Consulting Holding B.V. (TruEconomy) on 1 December 2011. The
goodwill on Taxolutions B.V. (€1,076) is being amortised on a straight-line basis over
three years and the goodwill on TruEconomy (€3,976) on a straight-line basis over
five years.
Cost and accumulated amortisation amounts are excluded as and when the goodwill
they relate to is fully amortised.
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[2]
Foreword
Key statistics
[3]
Stand per 1 juli
Cost
Accumulated
depreciation
Carrying amount
Accumulated
depreciation
Carrying amount
Other fixed
assets
Fixed assets
under
construction
2014/2015
Other financial
interests
Total
Total
14,825
26,356
37
99,369
95,811
-42,611
-12,390
-23,603
-
-78,604
-70,212
15,540
2,435
2,753
37
20,765
25,599
632
-6
113
-
6,989
-13,496
932
-
8,666
-13,502
4,320
-762
-
-
13,455
-
13,455
423
-5,268
-4,642
-830
-717
-3,089
3,859
932
-9,187
-568
-8,815
-4,834
58,777
14,938
19,849
969
94,533
99,369
-47,879
-13,220
-13,237
-
-74,336
-78,604
10,898
1,718
6,612
969
20,197
20,765
10
10
20-50
Depreciation
percentages
Appendices
2013/2014
58,151
Movements
Additions
Disposals
Accumulated
depreciation on
disposals
Depreciation
Balance as at
30 June
Cost
Fixtures
and fittings
2014/2015
Leasehold
improvements
Investments and
interest movements
Total
Total
11,626
1,740
13,366
6,240
14,032
2
14,034
7,126
105
-
105
131
-105
25,658
1,742
-105
27,400
-131
13,366
Results of financial
interests
Dividend receivable
Other
receivables
2013/2014
Other financial interests
In 2013/2014, the Group acquired a 2.6% interest in PwC Strategy& Parent (UK) Ltd
at a cost of € 19 m, of which some € 4,5 m will become payable in the future. More
details are provided in the note on Accrued expenses and deferred income and in
Events occurring after the balance sheet date (page 93).
Other financial interests also include a number of other interests, primarily interests
in other global PwC Network entities that operate for the benefit of the global PwC
network. None of the interests are held for trading.
Other fixed assets relate primarily to computers, servers and smartphones with a book value
at 30 June 2015 of € 5.2 m (30 June 2014: € 1.7 m) and related software with a book value at
30 June 2015 of € 1.1 m (30 June 2014: € 0.7 m). The fair value of tangible fixed assets does
not differ materially from the carrying amount.
Depreciation is based on the maximum remaining term of the rental contracts adjusted,
where necessary, for any early termination of rental contracts.
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Key statistics
[4]
Members of the Group hold the following interests:
Name and location
Lifeguard Finance B.V., Amsterdam
PricewaterhouseCoopers Services B.V., Rotterdam
L & F Holdings Limited, Bermuda
PwC Network Holdings Pte Ltd., Singapore
PwC Strategy& Parent (UK) Ltd., Londen
Share in
the issued
capital %
16.35
12.50
7.14
3.00
2.60
Other receivables
This is a Floating Rate Subordinated Unsecured Loan Note amounting to
€ 1,733 provided to Lifeguard Finance B.V. on 2 February 2014. The receivable is
subordinated to all of Lifeguard Finance B.V.’s other creditors. Interest is payable
semi-annually at the end of February and August, amounts to 6 months Euribor plus
0.75% and is set at the end of August of each year. For the period from 2 February
2015 to 31 August 2015, this has been set at 1.2%. The accrued interest is added to
the principal and the original loan, together with any unpaid interest, is repayable
in full on 31 August 2018.
Appendices
Work in progress
Work in progress at 30 June 2015 is stated net of amounts billed aggregating € 46 m
(30 June 2014: € 67 m).
[5]
Receivables from clients
Receivables are due within one year and are not interest bearing. A provision for
doubtful debts of € 10.2 m was carried at 30 June 2015 (30 June 2014: € 9.8 m).
[6]
Corporation tax
Total
[7]
30 June 2015
204
204
30 June 2014
-
30 June 2015
4,021
321
134
1,158
5,634
30 June 2014
4,126
535
607
2,593
7,861
Other receivables
Other receivables are as follows:
Deferred taxes
Receivables from personnel
Receivables from related parties
Other
Total
Receivables from related parties comprise receivables from a number of PwC
entities that are not part of the Group. Of the balance of deferred taxes, some
€ 3.7 m is recoverable after more than one year.
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[8]
Foreword
Key statistics
[11]
Prepayments and accrued income, all due within one year, are as follows:
Prepaid insurance premiums
Prepaid rental costs
Prepaid pension contributions
Other
Total
[9]
30 June 2015
7,185
6,396
3,069
2,058
18,708
30 June 2014
3,877
6,778
6,681
3,514
20,850
Of the cash and cash equivalents, € 2.1 m (30 June 2014: € 2.1 m) was not freely
available. The reduction in cash and cash equivalents during the year is primarily
the result of a reduction in liabilities to shareholders. Furthermore, the investments
during the year were financed out of cash and cash equivalents.
[10]
Group equity
Disclosures regarding shareholders’ equity are provided in the notes to the company
financial statements. A consolidated statement of comprehensive income is not
presented as there is no difference between profit after tax and comprehensive
income (2013/2014: the same).
Appendices
Provisions
2014/2015
Balance as at 1 july
Utilization
Additions
Releases
2013/2014
Personnel
Pensions
Other
Total
Total
4,270
-1,208
876
3,938
380
-160
68
288
27,152
-1,735
6,808
-4,425
27,800
31,802
-3,103
7,752
-4,425
32,026
33,354
-4,487
4,085
-1,150
31,802
Approximately € 29 m (30 June 2014: approximately € 28 m) of provisions is
non-current.
The personnel provisions include amounts for long-term unemployment benefit
top-ups, long-service entitlements and redundancy schemes. Pension provisions
include obligations under non-activity schemes.
Other provisions include the provision for rental voids in respect of leased premises.
This provision is based on the lease costs for future periods during which it is
expected that the premises will not be occupied. Other provisions also include a
provision for obligations for the restoration of leased premises at the end of the lease
period; this provision is recognised evenly over the lease period.
Other provisions also include the provision for professional liability claims relating
to work performed up to and including the balance sheet date. All of the claims are
disputed, and provisions are made for any loss still expected to be incurred by the
Group on ongoing claims. While the outcome of these disputes cannot be predicted
with certainty, legal advice and other information received indicate that they will
have no significant effect on the financial position of the Group.
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[12]
Foreword
Key statistics
Subordinated loan
Appendices
[14] Liabilities to suppliers
PwC Europe SE Wirtschaftsprüfungsgesellschaft has provided finance of € 40,340
(2013/2014: € 42,940) in the form of a loan subordinated to all of the Company’s
other creditors. Interest accrues at a maximum of 12% per annum depending
on profitability. The amount of the loan fluctuates depending on the number of
professional practitioners made available.
The movements on these subordinated loans were as follows:
Amounts added and terminated
Stand per 30 juni
2014/2015
40,340
1,200
41,540
2013/2014
42,940
-2,600
40,340
[13] Accrued expenses and deferred income (long-term)
Accrued expenses and deferred income include incentives received under lease
agreements for a number of office premises. The portion that releases to the profit
and loss account in 2015/2016 is included in accrued expenses and deferred income
in current liabilities.
Liabilities to suppliers are all due within one year.
[15] Liabilities to shareholders
The liabilities to shareholders have a remaining maturity period of less than
one year and bear interest at the average interest rate earned on internet
savings accounts plus 0.25%. The average interest rate for 2014/2015 was 1.6%
(2013/2014: 1.8%).
Repayments during the year have been financed out of cash and cash equivalents.
[16] Taxes and social security charges
Taxes and social security charges, all due within one year, are as follows:
Value added tax
Wages, taxes and social security charges
Corporation tax
Total
30 June 2015
24,316
10,641
34,957
30 June 2014
27,207
10,788
618
38,613
Accrued expenses and deferred income are to be released to income/utilized as
follows:
From 1-5 years
> 5 years
Carrying amount
30 June 2015
9,073
7,362
16,435
30 June 2014
9,544
9,492
19,036
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[17]
Foreword
Key statistics
Appendices
Other liabilities
Off-balance sheet assets and commitments
Other liabilities, all due within one year, are as follows:
•PricewaterhouseCoopers B.V. stands surety for the annual Group
profit-linked periodic benefit payments due by members of Coöperatie
PricewaterhouseCoopers Nederland U.A. to the beneficiaries of one of the
legal predecessors of the legacy firm Coopers & Lybrand that are administered
by Stichting Verrekenfonds. For 2014/2015, the payments amounted to some
€1.0 m (2013/2014: some €1.1 m). The payments are due for the lifetimes of the
individual beneficiaries.
•Guarantees provided in relation to lease and other obligations amounted to
€ 2.8 m as at 30 June 2015 (30 June 2014: € 3.6 m). The longest running
guarantee expires on 30 August 2024.
•The Group has undertaken, in certain circumstances, to assume receivables of
up to USD 14 m (30 June 2014: USD 14 m) on behalf of L & F Holdings Limited
in which PricewaterhouseCoopers Deelnemingen B.V. holds a 7.1% participating
interest.
•As at 30 June 2014, the Group had made commitments for capital expenditure
aggregating € 1.2 m (30 June 2014: € 5.7 m) relating to office leasehold
improvements and fixtures and fittings.
•The Group has delivery obligations under lease contracts (being the restoration
of leased premises at the end of the lease) amounting to € 2.2 m (30 June 2014:
€ 2.2 m). These obligations are recognised evenly over the lease period, and the
provision carried at 30 June 2015 amounted to € 1.2 m (30 June 2014: € 1.1 m).
•The Group has long-term rental contracts, other operating lease obligations and
facility services insourcing obligations totalling € 226 m (30 June 2014: € 233 m).
Work in progress for which instalments billed
Bonuses payable
Accrued leave entitlements and holiday allowances
Liabilities to related parties
Other
Total
30 June 2015
30,876
30,415
16,258
312
36
77,897
30 June 2014
32,417
30,930
15,079
682
561
79,669
[18] Accrued expenses and deferred income (current)
Accrued expenses and deferred income comprise a provision for invoices to be
received and the current portion of incentives received under lease agreements
for a number of office premises.
Invoices to be received
Incentives received wunder lease agreements for
office premises
Other
Total
30 June 2015
12,987
30 June 2014
18,057
2,600
2,629
5,980
21,567
20,686
Other accrued expenses and deferred income includes an amount of € 4.5 m which
is described in the note on Other financial interests (page 73).
These obligations mature as follows:
in € millions
< 1 year
From 1-5 years
> 5 years
Total obligations
30 June 2015
40
107
79
226
30 June 2014
39
114
80
233
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Key statistics
Appendices
1.6 Notes to the consolidated profit and loss account for the year ended 30 juni 2015 (in € ‘000)
[19]
Net revenue
[22] Other operating costs
The net revenue of each segment (after eliminating internal revenue) was as follows:
Assurance
Tax & HRS
Advisory
Total
2014/2015
291,884
240,529
164,896
697,309
2013/2014*
285,343
240,348
145,883
671,574
* The revenue of Assurance and Tax & HRS have been adjusted in the comparative figures to
reflect the effects of the restructuring of the activities of PricewaterhouseCoopers Compliance
Services B.V. (Assurance € 18 m lower and Tax & HRS € 18 m higher).
Net revenue is earned primarily in the Netherlands.
[20] Cost of work contracted-out and other external costs
These relate to third-party services, including those from other members of the
PwC Network, and out-of-pocket expenses directly attributable to engagements.
[21] Social security charges
2014/2015
41,846
36,629
32,354
16,241
7,827
4,982
4,306
15,228
159,413
Other personnel costs
Occupancy costs
Travel
Technology
Sales and business development
Insurances
External consultants’ fees
Other costs
Total
2013/2014
31,214
36,216
31,033
14,407
8,825
7,312
3,407
12,429
144,843
The increase in Other personnel costs arises as a result of temporary hires.
Technology costs exclude staff costs and depreciation charges. Other expenses
include membership contributions to PricewaterhouseCoopers International Ltd.
and PricewaterhouseCoopers Eurofirms CVBA.
[23] Interest and similar income
Social security charges were as follows:
Social security charges
Pension charges
Total
Other operating costs are as follows:
Interest and similar expense were as follows:
2014/2015
30,510
18,614
49,124
2013/2014
30,036
20,388
50,424
Pension costs are determined in accordance with the schemes agreed with staff.
Qualifying staff members are provided with an annual premium, depending on
age and income, for contribution to their pension plans. The graduated scale of
premiums to be applied was reduced by law as from 1 January 2015.
Interests payable to PwC Europe SE
2014/2015
298
2013/2014
4,841
796
438
50
1,144
24
5,303
Interests payable to Coöperatie
Other
Total
It was agreed between PwC Europe SE Wirtschaftsprüfungsgesellschaft and the
Group that the interest payable on the subordinated loan would be restricted.
Interest paid, interest received and exchange differences are included in one
aggregate net amount in the statement of cash flows.
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[24]
Foreword
Key statistics
Appendices
Taxes
Taxes are as follows:
2014/2015
156,539
154,561
1,978
2013/2014
157,039
153,174
3,865
2,766
4,482
9,226
6,997
1,533
12,395
Tax thereon
Adjustments relating to prior year deferred tax
2,296
-318
3,085
-587
Corporation tax due
1,978
2,498
Less: Management fee *
Book/tax differences
- Permanent
- Temporary
Taxable profit
* The tax burden on this is borne at the level of the members of Coöperatie PricewaterhouseCoopers
Nederland U.A. (the partner BVs). Permanent differences include non-deductible amortisation of
goodwill. The temporary differences relate primarily to the provision for office rental voids and differing
rates of amortisation and depreciation of assets.
Taxes paid and taxes received are included in one aggregate net amount in the
statement of cash flows.
[25]Management fee Coöperatie PricewaterhouseCoopers
Nederland U.A.
The management fee Coöperatie PricewaterhouseCoopers Nederland U.A.
contributes to the aggregate profit available for distribution to the professional
practitioners, as further described in 1.7 (Other notes) on page 80.
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Foreword
Key statistics
Appendices
1.7 Other notes (in € ‘000)
Management agreement and other costs
Coöperatie PricewaterhouseCoopers Nederland U.A. charges a management fee to Holding
PricewaterhouseCoopers Nederland B.V. for making available the professional practitioners
who are associated with the members of Coöperatie PricewaterhouseCoopers Nederland U.A.
Holding PricewaterhouseCoopers Nederland B.V. pays out as dividend to the holder of its
ordinary shares, PwC Europe SE, the net profit that remains after charging the management
fee. PwC Europe SE pays its entire net profit out to Konsortium PwC Europe.
The entire net profit of Konsortium PwC Europe is distributed to its participants, including
Coöperatie PricewaterhouseCoopers Nederland U.A. in accordance with a predetermined
formula.
Coöperatie PricewaterhouseCoopers Nederland U.A. distributes its entire net profit, after
deduction of its own operating expenses, as management fee to its members.
The aggregate remuneration accruing from the Dutch PwC entities to the members of
Coöperatie PricewaterhouseCoopers Nederland U.A., after elimination of the effects of the
Konsortium PwC Europe arrangements, was as follows:
2014/2015
-
2013/2014
1,367
Management fee Coöperatie PricewaterhouseCoopers
Nederland U.A.*
154,561
153,174
Early Retirement Payments
Net profit Coöperatie PricewaterhouseCoopers Nederland U.A.
Profit available for distribution
-232
-449
153,880
-552
2,100
156,089
254
244
605.8
639.7
Net profit Holding PricewaterhouseCoopers Nederland B.V.
Average number of partners (FTEs)
Average management remuneration per partner
In addition to their management fee, the members of Coöperatie PricewaterhouseCoopers
Nederland U.A. also receive a car and expense allowance, aggregating € 7.3 m (2013/2014:
€ 7.2 m), and interest on their current accounts, aggregating € 0.8 m (2013/2014: € 1.3 m).
These interest expenses are not included in these financial statements; they are recognised as
expense by Coöperatie PricewaterhouseCoopers Nederland U.A.
External auditor’s fees
The following fees were charged to and borne by the Group for work done during the year
by the auditor and the auditor’s firm as defined in Section 1(1 a and e) of the Audit Firms
Supervision Act:
Audit of the financial statements
Other non-audit engagements
Total
2014/2015
202
45
247
2013/2014
162
15
177
Operating leases
The Group charged € 43 m (2013/2014: € 42 m) to the profit and loss account in operating lease
costs during the year, relating to office premises and the leased car fleet.
* This amount has been charged to profit and loss by Holding PricewaterhouseCoopers Nederland B.V.
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Key statistics
Appendices
Financial instruments and risk management
Liquidity risk
Foreign exchange risk
Liquidity risk is mitigated by the fact that the cash flow from operating activities generates
sufficient liquidity to meet ongoing obligations.
Holding PricewaterhouseCoopers Nederland B.V.’s participating interests operate primarily
within the European Union. Foreign exchange risks arise mainly on positions and transactions in
US dollars and pounds sterling. The Board of Management’s policy is to hedge foreign exchange
positions and not to take speculative positions. For its hedging operations, the business has both
primary and derivative financial instruments at its disposal.
Fair value
The carrying amount of financial instruments under receivables and liabilities carried at
amortised cost does not differ significantly from fair value.
Significant foreign exchange risks relating to future cash flows in foreign currencies are hedged
by means of currency forward contracts the terms of which are determined by reference to the
timing of the underlying receivables and obligations. Gains and losses on instruments used to
hedge off-balance sheet positions are deferred until the gains and losses on the hedged positions
are recognised. As at 30 June 2015, there were no contracts outstanding (30 June 2014: No
contracts outstanding).
At 30 June 2014, receivables in US dollars, pounds sterling and other currencies amounted to
€ 3.0 m (30 June 2014: € 2.1 m), € 2.4 m (30 June 2014: € 0.7 m) and € 0.4 million (30 June
2014: € 0.4 million), respectively. Liabilities in US dollars, pounds sterling and other currencies
amounted to € 2.3 m (30 June 2014: € 3.6 m), € 1.3 m (30 June 2014: € 0.1 m) and € 1.0 million
(30 June 2014: € 1.0 million), respectively.
Interest rate risk
Interest rate risks on financial fixed assets and liabilities are not hedged.
Credit risk
Holding PricewaterhouseCoopers Nederland B.V. and its participating interests are exposed
to the risk of counterparty default, though this risk is limited due to the large number and
diversity of the entities from which Holding PricewaterhouseCoopers Nederland B.V. and its
participating interests have receivables. There is concentration of credit risk only in that the
limited geographic spread of receivables is concentrated in the Netherlands. Credit risks are
further mitigated by the application of good client acceptance and credit control procedures.
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Foreword
Key statistics
Appendices
1.8 S
egment information (in €’000)
2014/2015
Assurance
291,884
1,456
293,340
Tax & HRS
240,529
9,578
250,107
Advisory
164,896
5,491
170,387
Other 1)
150,432
150,432
37,374
101,192
99,195
237,761
27,341
78,290
897
80,173
186,701
32,335
53,879
800
47,183
134,197
-543
47,632
9,187
91,676
147,952
-8,143
-158,814
-166,957
88,364
280,993
10,884
159,413
539,654
Operating profit
Net financial income and expense
Taxes
Management fee Coöperatie
Profit after tax
55,579
-1,285
-802
53,492
63,406
-1,132
-740
61,534
36,190
-468
-437
35,285
2,480
1,769
1
-154,561
-150,311
-
157,655
-1,116
-1,978
-154,561
-
Carrying amount of total assets
124,556
109,338
74,543
4,199
-32,757
279,879
Net internal revenue
Total net revenue
Costs of work contracted-out and other external costs
Staff costs
1) Internal
Total
697,309
697,309
costs are charged to group companies and recognised as internal revenue under Other.
People employed in FTEs
2)
Average number in 2014/2015
Partners
- Other professionals
- Support staff
Total
2)
Eliminations
-166,957
-166,957
Assurance
103
1,460
26
1,589
Tax & HRS
95
988
17
1,100
Advisory
56
606
12
674
Firm
Services
747
747
Total
254
3,054
802
4,110
FTEs (excluding trainees) means full-time equivalents.
GRI
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Foreword
Key statistics
2013/2014*
Assurance
285,343
2,185
287,528
Tax & HRS
240,348
10,431
250,779
Advisory
145,883
5,599
151,482
Other1)
137,289
137,289
Eliminations
-155,504
-155,504
Total
671,574
671,574
34,320
96,636
87,491
218,447
26,676
81,163
78,470
186,309
26,248
53,474
800
43,205
123,727
792
44,906
8,815
81,937
136,450
-9,244
-146,260
-155,504
78,792
276,179
9,615
144,843
509,429
Operating profit
Net financial income and expense
Taxes
Management fee Coöperatie
Profit after tax
69,081
-1,413
-1,088
66,580
64,470
-1,150
-904
62,416
27,755
-651
-506
26,598
839
-1,892
-153,174
-154,227
-
162,145
-5,106
-2,498
-153,174
1,367
Carrying amount of total assets
120,340
91,342
54,778
81,972
-13,440
334,992
Advisory
Firm
Services
Net internal revenue
Total net revenue
Costs of work contracted-out and other external costs
Staff costs
1) Internal
costs are charged to group companies and recognised as internal revenue under Other.
People employed in FTEs 2)
Average number in 2013/2014
- Partners
- Other professionals
- Support staff
Total
2)
Appendices
Assurance
103
1,429
36
1,568
Tax & HRS
92
988
35
1,115
49
583
21
653
711
711
Total
244
3,000
803
4,047
FTEs (excluding trainees) means full-time equivalents.
* The comparative amounts have been adjusted to reflect the presentational changes relating to the management remuneration and fee (as described in the note
Comparison with prior year on pages 68 and 87) and the effects of the restructuring of PricewaterhouseCoopers Compliance Services B.V. (as described in Note
19 on page 78). These changes did not affect the overall consolidated result.
GRI
83
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Foreword
Key statistics
Appendices
2. Company financial statements
2.1 Company balance sheet as at 30 June 2015 (before appropriation of profit) (in €’000)
30 June 2015
30 June 2014
Fixed assets
Participating interests
Receivables from group companies
[26]
[27]
161,926
41,925
118,015
40,463
203,851
158,478
Current assets
Receivables
Receivables from shareholders
Other receivables
[7]
Total
169
4,021
4,655
4,190
9
4,655
77,317
208,050
240,450
GRI
84
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Foreword
Key statistics
30 June 2015
Appendices
30 June 2014
Shareholder’s equity and liabilities
Shareholder’s equity
Issued capital
Share premium
Profit after tax
[28]
[29]
6,750
3,510
-
6,750
3,510
1,367
10,260
Long-term liabilities
Subordinated loan
[12]
41,540
11,627
40,340
41,540
Current liabilities
Liabilities to shareholder
Liabilities to group companies
Other liabilities
40,340
[30]
[31]
Total
25,453
130,499
298
1,186
74,081
108,375
4,841
156,250
188,483
208,050
240,450
GRI
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Foreword
Key statistics
Appendices
2.2 C
ompany profit and loss account for the year ended 30 June 2015 (in €’000)
2014/2015
Results of participating interest
Other income and expense after tax
Profit after tax
2013/2014
152,299
-152,299
107,792
-106,425
0
1,367
GRI
86
Contents
Foreword
Key statistics
Appendices
2.3 General
Basis of preparation
Comparison with prior year
The company financial statements are prepared in accordance
with Part 9 of Book 2 of the Dutch Civil Code and the
Guidelines for Annual Reporting in the Netherlands as issued
by the Dutch Accounting Standards Board.
Holding PricewaterhouseCoopers Nederland B.V. has the
following direct and indirect participating interests:
The comparative amounts for receivables from group companies
and liabilities to the shareholder and to group companies
have been adjusted in the interests of better presentation.
These adjustments did not affect the shareholder’s equity or
consolidated result for the prior year.
Fiscal unity
• P
ricewaterhouseCoopers B.V., Amsterdam (100%);
• PricewaterhouseCoopers Accountants N.V., Amsterdam
(100%);
• PricewaterhouseCoopers Belastingadviseurs N.V.,
Amsterdam (100%);
• PricewaterhouseCoopers Advisory N.V., Amsterdam (100%);
• PricewaterhouseCoopers Compliance Services B.V.,
Amsterdam (100%);
• PricewaterhouseCoopers Pensions, Actuarial & Insurance
Services B.V., Amsterdam (100%);
• PricewaterhouseCoopers Certification B.V., Amsterdam
(100%);
• PricewaterhouseCoopers IT Services (NL) B.V., Amsterdam
(100%);
• Taxolutions B.V., Amsterdam (100%);
• Taxmarc B.V., Amsterdam (100%);
• E xecutive Academy VOF, Amsterdam (100%);
• PricewaterhouseCoopers N.V., Amsterdam (100%);
• PricewaterhouseCoopers Deelnemingen B.V., Amsterdam
(100%);
• TruEconomy Consulting Holding B.V., Zaltbommel (100%).
Except for Executive Academy VOF, PricewaterhouseCoopers
N.V. and PricewaterhouseCoopers Deelnemingen
B.V., all of the abovementioned consolidated entities
form a fiscal unity for value added tax purposes with
PricewaterhouseCoopers IT Services (NL) B.V. was added as
from its incorporation on 30 October 2014, and Taxolutions B.V.
and Taxmarc B.V. were added as from 1 April 2015.
Accounting policies for assets and
liabilities and for the profit and loss
account
General
The accounting policies used for the company financial
statements are the same as those used for the consolidated
financial statements. Participating interests over which
significant influence or majority control can be exercised are
carried at net asset value, determined in accordance with
the accounting policies used for the consolidated financial
statements. The accounting policies for assets and liabilities
and for the profit and loss account are included in the general
notes to the consolidated financial statements.
All of the abovementioned consolidated entities
form a fiscal unity for corporation tax purposes with
PricewaterhouseCoopers IT Services (NL) B.V. was added as
from its incorporation on 30 October 2014. Taxolutions B.V. and
Taxmarc B.V. were added as from 6 March 2015, the date of
acquisition, with their results for the period 1 January up to and
including 5 March 2015 also being included in the fiscal unity
as agreed with the tax authorities.
As the company financial statements of Holding
PricewaterhouseCoopers Nederland B.V. are included in the
consolidated financial statements, the company profit and loss
account has been prepared in abridged form in accordance
with Section 2:402 of the Netherlands Civil Code.
GRI
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Foreword
Key statistics
Appendices
2.4 Notes to the company balance sheet as at 30 June 2015 (in € ‘000)
[26] Participating interests
[27] Receivables from group companies
These consist of direct holdings in the following entities:
•PricewaterhouseCoopers B.V., Amsterdam (100%)
•PricewaterhouseCoopers N.V., Amsterdam (100%)
•PricewaterhouseCoopers Deelnemingen B.V., Amsterdam (100%).
Holding PricewaterhouseCoopers Nederland B.V. has provided subordinated loans
aggregating € 41,925 (2013/2014: € 40,463) to group companies. These loans
fluctuate depending on the number of professional practitioners made available
by Coöperatie PricewaterhouseCoopers Nederland U.A. The nominal amount of
the loan is € 162,500 (single Euros) for each practitioner made available. Interest
accrues at 7.75% pa (2013/2014: 7.75% pa), based on the 15 year external capital
market interest rate increased by a factor to reflect the risks involved.
Movements during the year were as follows:
Less: Dividend distribution
Add:Results of participating interests
2014/2015
118,015
-108,388
152,299
161,926
2013/2014
95,374
-85,151
107,792
118,015
The results of participating interests is € 50.8 m higher than prior year because,
as from this year, the Company’s participating interests are no longer charged a
management fee.
PricewaterhouseCoopers Accountants N.V.
PricewaterhouseCoopers Belastingadviseurs N.V.
PricewaterhouseCoopers Advisory N.V.
2014/2015
17,063
15,762
9,100
41,925
2013/2014
17,876
15,112
7,475
40,463
[28] Issued capital
The Company’s authorised share capital amounts to € 20,000 at 30 June 2014,
divided into 800 ordinary shares of EUR 25,000 each and 1 priority share of
EUR 1 (both EUR amounts single Euros). The issued capital amounts to € 6,750,
consisting of 270 ordinary shares of EUR 25,000 each and 1 priority share of
EUR 1 (2013/2014: 270 ordinary shares and 1 priority share).
GRI
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Foreword
Key statistics
[29] Profit after tax
Appendices
Off-balance sheet assets and commitments
Holding PricewaterhouseCoopers Nederland B.V. is jointly and severally liable for
remittance of the corporation tax and value added tax due under the fiscal unities
for these taxes.
The movements on profit after tax were as follows:
Less: Dividend distribution
Add:Profit after tax for the year
2014/2015
1,367
-1,367
-
2013/2014
4,531
-4,531
1,367
1,367
[30] Current liabilities
All current liabilities are due within one year. Given the short-term nature of the
liabilities, the fair value of current liabilities approximates carrying amount.
[31] Liabilities to shareholder
The liability to shareholder Coöperatie PricewaterhouseCoopers Nederland U.A. has
a remaining term of less than one year and is interest bearing. The average interest
rate for 2014/2015 was some 1.6% (2013/3014: some 1.8%).
GRI
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Key statistics
Appendices
2.5 Further information
Risk management in the area of financial instruments
Liquidity risk
Foreign exchange risk
Liquidity risk is mitigated by the fact that the cash flow from operating activities generates
sufficient liquidity to meet ongoing obligations.
Holding PricewaterhouseCoopers Nederland B.V.’s participating interests operate primarily
within the European Union. Foreign exchange risks arise mainly on positions and transactions
in US dollars and pounds sterling. The Board of Management’s policy is to hedge foreign
exchange positions and not to take speculative positions. For its hedging operations, the
business has both primary and derivative financial instruments at its disposal.
Significant foreign exchange risks relating to future cash flows in foreign currencies are hedged
by means of currency forward contracts the terms of which are determined by reference to
the timing of the underlying receivables and obligations. Gains and losses on instruments
used to hedge off-balance sheet positions are deferred until the gains and losses on the hedged
positions are recognised. As at 30 June 2015, there were no contracts outstanding (30 June
2014: No contracts outstanding).
Interest rate risk
Interest rate risks on financial fixed assets and liabilities are not hedged.
Credit risk
Remuneration of the members of the Board of Management
and the Supervisory Board
Members of the Board of Management
2014/2015
6,573
65
6,638
2013/2014
6,300
6,300
Members of the Board of Management
The remuneration of the full Board of Management, comprising the statutory director and
the five authorised executive directors, amounted to € 6.6 m for 2014/2015 (2013/2014:
one statutory director and five authorised executive directors and € 6.3 m). For further
information, refer to the Remuneration Report of the Board of Supervisory Directors, included
as an appendix to this Annual Report (page 124-128).
Holding PricewaterhouseCoopers Nederland B.V. and its participating interests are exposed
to the risk of counterparty default, though this risk is limited due to the large number and
diversity of the entities from which Holding PricewaterhouseCoopers Nederland B.V. and its
participating interests have receivables. There is concentration of credit risk only in that the
limited geographic spread of receivables is concentrated in the Netherlands. Credit risks are
further mitigated by the application of good client acceptance and credit control procedures.
* Authorised executive director
GRI
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Key statistics
Appendices
Holding PricewaterhouseCoopers Nederland B.V. has had a Supervisory Board since 1 May
2015, comprising seven members and their remuneration has been time-apportioned.
The Board of Management:
Drs. P.J. van Mierlo RA (Statutory Director)
Drs. S.A. Boonstra *
Prof. mr. F.A. Engelen *
Drs. A.H.M. van Gils RA *
Drs. J.D. Lamse-Minderhoud RA *
Drs. M. de Ridder RA *
The Supervisory Board:
Drs. J.M. de Jong (Chair)
Dr. A.H.E.M. Wellink (Vice-chair)
Prof. dr. N. Ellemers
A. Jorritsma (as from 1 September 2015)
Mr. F.W. Oldenburg
Mr. drs. C.J.M. van Rijn
Mr. Y.C.M.Th. van Rooy
GRI
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Key statistics
Appendices
3. Other information
3.1 Provisions of the Articles of Association governing the appropriation
of profit
3.2 Specific provisions of the Articles of Association governing
shareholder control
Article 30 of the company’s Articles of Association prescribes the following:
• O
ut of distributable profits as determined by the shareholders, a dividend is distributable
firstly on the priority share, determined as a percentage of the nominal amount of the
priority share equal to the legal interest rate applicable on 1 January of the financial
year. The remaining distributable profits are at the disposal of the General Meeting of
Shareholders for the distribution of dividend solely on the ordinary shares, for appropriation
to reserves or for any other purposes consistent with the company’s objectives that the
Meeting shall decide upon.
• T
he company may distribute profits only to the extent that shareholders’ equity exceeds the
reserves which are required by law to be retained.
• A
decision to distribute is not valid until it is approved by the Board of Management, and this
approval shall not be given if the Board knows, or should reasonably be able to foresee, that
as a result of the distribution the Company would not be able to settle its obligations as they
fall due.
• S
hares held in treasury may not participate in any profit distribution.
• O
nly the amount of the legal payment obligation on the nominal amount of the share is to
be used when determining the amount of any profit to be distributed per share. This may be
disregarded at any time with the consent of all shareholders.
• U
nless the Board of Management decides on a different date, dividends become payable
immediately the Board of Management approves the decision to distribute.
• S
hareholder entitlement to claims under this article lapses after a period of five years.
The Company’s Articles of Association, particularly articles 17.3, 17.4, 21.1 and 21.2, afford
the holder of the priority share (hereafter: ‘the Priority Shareholder’) certain rights regarding
control.
17.3 Decisions of the Board of Management regarding the following matters may be taken
only with the approval of the Priority Shareholder:
• Determination, on the initiative of the Chair of the Board of Management or Supervisory
Board, of the duties and responsibilities of the Chair of the Board of Management, either
through the implementation of internal procedures or in any other manner
• Determination of a maximum number of Associated professional practitioners with whom
the Coöperatie and the Company may sign an association agreement
• Preparation and approval of the Company’s business plans, annual plans and budgets
• Proposals for the determination or amendment of the remuneration system for the
Associated professional practitioners
• Initiating or terminating the Company’s and/or its representatives’ memberships of
PricewaterhouseCoopers Network bodies
• Transfer of the Company’s shares
• Disposal or liquidation of significant Company shareholdings, participating interests or
business units
• Entering into or terminating any merger, disaggregation, joint venture or similar ongoing
form of cooperation with third parties that involves a value or interest of more than five per
cent of the average consolidated revenue of the PwC Europe group for the previous three
financial years
• Initiation any legal action, in addition to those set out above, that involves a value or
interest of more than five per cent of the average consolidated revenue of the PwC Europe
group for the previous three financial years, with any inter-related actions being aggregated
as one action.
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Key statistics
17.4 The Board of Management also requires the approval of the Priority Shareholder for any
management decision that the Priority Shareholder may determine and notify to the Board.
Appendices
3.3 Proposed appropriation of profit
The profit after tax for the year 2014/2015 is zero.
21.1 Board of Management decisions as described in articles 17.3 and 17.4 may only be taken
with the approval of the Priority Shareholder.
3.4 Events occurring after the balance sheet date
21.2 Decisions by the General Meeting of Shareholders regarding the following matters may
be taken only with the approval of the Priority Shareholder:
• Appointments to the Board of Management
• Removal or waiver of the mandatory requirements surrounding the appointment
nomination
• Appointment of one or more persons to temporarily discharge the duties of a member or
members of the Board of Management
• Appointments to the Supervisory Board
• Appointment of one of the Supervisory Board members as Chair
• Determination of the remuneration of the members of the Supervisory Board
• A ny change to the Articles of Association.
• T
he international legal and organisational integration of the global Strategy& organisation
became effective in the various national entities of the global PwC Network on 1 July
2015. This resulted in the entire share capital of PwC Strategy& (Netherlands) B.V. being
transferred to PricewaterhouseCoopers Deelnemingen B.V. in exchange for a distribution
on its existing participation in PwC Strategy& Parent (UK) Ltd. PricewaterhouseCoopers
Deelnemingen B.V. then transferred these shares to PricewaterhouseCoopers Advisory N.V.
The consideration for the shares in PwC Strategy& (Netherlands) B.V. was € 19 m, equal to
the carrying amount of the 2.6% interest in PwC Strategy& Parent (UK) Ltd as at 30 June
2015.
• T
he AFM notified us on 13 August 2015 that it intends to impose a fine based on the results
of the review it performed in 2013 and 2014 of 10 of our audit files relating to financial
statements for the years 2012 and 2011.
GRI
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Key statistics
Appendices
3.5 Independent Auditor ’s and Assurance Report
To: The General Meeting of Shareholders of Holding PricewaterhouseCoopers Nederland B.V.
Report on the Financial Statements and Assurance report on the Report of the Management Board
Introduction
The Management Board of Holding PricewaterhouseCoopers Nederland B.V. (hereinafter ‘PwC’) engaged us to audit the Financial Statements as
contained on pages 60 to 91, and the following components of the annual report: The key indicators (p. 7 to 8), the Report of the Management Board
(p. 19 to 57), Information about PwC (p. 103 to 119) and the appendices ‘Five-year summary of financial performance’ (p. 123) and ‘Scope of this
annual report’ (p. 129 to 130), hereinafter jointly ‘the Report’.
Independent auditor’s report on the Financial Statements
Assurance report on the Report
Our opinions
In our opinion, the Financial Statements give a true fair view of the of the amount and compo
sition of the assets and liabilities of PwC as at 30 June 2015 and of its result for the period from
1 July 2014 to 30 June 2015 in accordance with Part 9 of Book 2 of the Netherlands Civil Code.
In our opinion, the Report presents, in all material aspects, the results and efforts of PwC in
accordance with Section 2:391 of the Netherlands Civil Code and the reporting criteria of PwC
which are based on the GRI G4 Guidelines as described on pages 21.
Our engagements
We audited the Financial Statements for the year ended 30 June 2015 of PwC in Amsterdam.
The Financial Statements comprise the consolidated and separate balance sheet as at 30 June
2015 and the consolidated and separate profit and loss account for the period from 1 July 2014
to 30 June 2015 and the notes, comprising a summary of the accounting policies and other
explanatory information.
We audited the Report for the period from 1 July 2014 to 30 June 2015 of PwC in Amsterdam.
This Report comprises both the management report as defined in Section 2:391 of the Netherlands
Civil Code and a description of PwC’s efforts and results in the area of corporate responsibility.
We do not provide any assurance about the feasibility of the future information included in the
Report, such as the objectives, expectations and ambitions of PwC.
The basis for our opinions
We performed our audit in accordance with Dutch law, including the Dutch Standards on Auditing and the Assurance Standards 3000 and 3810N. Our responsibilities under these standards are
described in detail in the paragraph Our responsibilities for the audit of the Financial Statements and the Report. We are independent of PwC in accordance with the Independence of Accountants
in Assurance Engagements Regulation (ViO) and other Dutch independence rules relevant to the engagement. Furthermore we have complied with the ‘Verordening gedrags- en beroepsregels
accountants’ (VGBA).
We believe that the audit evidence we obtained is sufficient and appropriate to provide a basis for our audit opinions.
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Key statistics
Appendices
Materiality
Misstatements in the Financial Statements and the Report can arise from fraud or errors and are considered material if, individually or in the aggregate, they could reasonably be expected to
influence the economic decisions of users taken on the basis of these Financial Statements and the Report. The materiality affects the nature, timing and extent of our audit procedures and the
evaluation of the effect of identified misstatements on our opinion.
On the basis of our professional judgement, we have determined that the Financial Statements as a whole have a materiality of 7.5 million euro. The materiality is based on 5% of the management
fee paid to Coöperatie PricewaterhouseCoopers Nederland U.A. This is the relevant benchmark for determining the materiality as this is the final result that is paid to the partners.
We also take account of actual and potential misstatements in the Financial Statements and the Report which we believe to be material to the users of the Financial Statements and Report
for qualitative reasons. We have communicated to the Management Board and Supervisory Board that we report to the Board misstatements above 375,000 euro identified in our audit of the
Financial Statements, as well as other misstatements in the Financial Statements and the Report which we believe to be relevant for qualitative reasons.
The key points of our audits
Key points in our audit are those matters that, in our professional judgement, were of most significance in our audit of the Financial Statements and the Report. We have communicated the key points
of our audit to the members of the Management Board and Supervisory Board , but they do not give a complete picture of everything that was discussed.
We defined our audit activities in relation to these key points as part of our audit of the Financial Statements and the Report as a whole. Our findings in relation to the individual key points should be
seen in this context and not as separate opinions on the key points.
The valuation of work in progress is complex and has a significant effect on the Financial
Statements
The valuation of work in progress is an important focus in our audit because it is a significant
item in the Financial Statements that requires estimates which are complex and subjective
in nature, as well as based on assumptions. Assessing the valuation of work in progress as at
balance sheet date requires professional judgement. These mainly concern the controllability
of the expected results of current engagements based on an estimate of time and costs
yet to be incurred in comparison with the fee received. The Internal Audit Department
of PwC (IAD) assessed the critical internal control procedures focusing on the valuation
of the work in progress by PwC on the basis of historical data, balance confirmations of
the work in progress received from the responsible partners and discussions with the
partners responsible for a number of engagements. In addition, IAD performed other audit
procedures, such as an analytical review and an analysis of increases and decreases to the
work in progress in the new financial year. We have reviewed the assessment of the internal
control procedures by IAD and their other audit procedures by reviewing their working
Content of the Report depends on the social context
The aim of PwC’s corporate responsibility reporting is to give stakeholders a transparent
picture of its role in society and the results it has achieved both economically and socially and
in relation to the environment in the year under review. The accuracy and completeness of
the description of the social context in which PwC operates is an important focus for our audit
as this varies per sector and company, and it is crucial for the correct interpretation of the
corporate responsibility results for stakeholders.
Assessing the social context presented in the Report requires professional judgement, whereby
the accuracy, completeness and balance of the information is evaluated. By ‘balance’ we mean
that both successes and dilemmas are taken into account. For this evaluation, we perform e.g. a
media analysis, utilise sector-specific knowledge and evaluate the scope, process and results of
PwC’s stakeholder dialogues. Subsequently, we assess whether the outcome of these dialogues
has been accurately and completely included in the social context as described, including
possible social dilemmas confronting PwC.
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Foreword
Key statistics
papers, reperforming part of these activities and through discussions with staff of the
financial accounting department.
In addition, we selected a number of projects on the basis of the relative share of these projects
in the work in progress. The valuation and progress of these projects was discussed by us
with the responsible controllers and examined on the basis of the underlying documentation,
such as invoices, historical data and balance confirmations. Lastly, we focused on the
appropriateness of the information included; see points 4 and 18 of the notes to the Financial
Statements.
Our observation is that the estimates and assumptions used for the valuation of the work in
progress result in a prudent valuation of the work in progress.
Sensitivities in the valuation of accounts receivable
The valuation of accounts receivable is an important focus in our audit because the
valuation requires estimates which are subjective in nature and are based on assumptions
on collectability. Assessing the valuation of accounts receivable as at the balance sheet date
requires professional judgement. This mainly concerns the extent to which the amounts
receivable can be collected.
To assess the valuation of the provision for bad debts, on 30 August 2015 we determined
the due date of the outstanding accounts receivable as at 30 June 2015 on the basis of daily
statements. We also determined that the provision recognised for bad debts was determined
dynamically on the basis of fixed calculation rules. We evaluated the assessment of the
valuation of the accounts receivable performed by IAD. Finally, we focused on the completeness
of the information included in the notes in relation to the accounts receivable, as included in
note 5 of the Financial Statements.
Appendices
We have determined that the information on PwC’s social context in the Report is balanced.
Importance of historical comparability of corporate responsibility information
Consistency in the way information is reported over the years is important for an accurate
assessment of the Company’s performance in the area of corporate responsibility. This
mainly concerns the question of whether the changes in performance in the area of corporate
responsibility in comparison with previous years is actually the result of the context, strategy
and efforts of PwC presented in the Report and not the result of e.g. changes in the scope of the
method used to calculate the corporate responsibility information.
Historical comparability and consistency of the information presented in the Report is therefore
an important focus for our audit. For assessing this historical comparability of the corporate
responsibility information, we examined the reporting processes for possible material changes
in definitions, scope and conditions in comparison with previous years. For this purpose, we
analysed the underlying evidence and conducted interviews with the process owners together
with the Internal Audit Department of PwC (IAD) . We also analysed significant changes
in trends. For situations where there were material changes in the reporting process that
are material to the corporate responsibility results presented, we examined whether this is
sufficiently explained in the Report for the purpose of historical comparability.
We have determined that the changes in the reporting process with a significant effect on the
historical comparability of the results are sufficiently explained in the Report.
On the basis of our audit activities, we have determined that the valuation of the accounts
receivable is balanced and that the provision for bad debts is adequate.
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Appendices
Sensitivities in the valuation of the provisions for professional liability and vacant property
The accuracy and completeness of the provisions recognised for professional liability and
vacant property for parts of the offices in The Hague, Rotterdam, Utrecht, Breda and Enschede
are important focuses in our audit because these require estimates that are complex and
subjective in nature, are based on assumptions and have a significant effect on the Financial
Statements. Assessing the completeness of these provisions as at balance sheet date requires
professional judgement. This mainly concerns the question of whether the criteria for
recognising a provision have been met and whether the valuation of the respective provisions
is accurate and adequate.
For the provision for professional liability and vacant property, we assessed the effectiveness
of the internal control procedures and determined that we can rely on these internal control
procedures in the context of the Financial Statements as a whole.
We also performed audit activities for the provision for professional liability, such as sending
out and analysing external lawyer’s letters. We also evaluated the assessment by the
Management Board of the recognition of a provision, as well as the estimates, assumptions and
alternative scenarios, on the basis of e.g. business cases, past experience and discussions with
the responsible staff of PwC and the Management Board.
For the provision for vacant property, we determined that the vacant offices are offered for
letting in whole or in part, that the remaining tenancy period is consistent with the tenancy
agreements and that the assumptions used are based on the actual rental costs. We also
assessed the estimates of the income from sub-letting against market data available on the
trend in the letting of commercial property.
Finally, we focused on the completeness of the information included in the notes in relation to
the provisions as included in note 11 of the Financial Statements.
On the basis of our audit activities, we have determined that the valuation of the provision
for professional liability is prudent and that the provision for vacant property is balanced,
as determined on the basis of the assumptions used.
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Reliability and continuity of electronic data processing
Given the importance of automated systems for PwC’s business operations and supply of
information, IAD regularly performs audits on the IT organisation and existing applications
from the perspective of the audit of the Financial Statements and on the reliability and
continuity of the electronic data processing.
As part of the audit of the Financial Statements, we evaluated the IT audits performed by
IAD by reviewing their working papers and reperforming activities. We included specialised
IT auditors in our audit team for this purpose. Our activities comprised evaluating the
developments in the IT infrastructure and evaluating the internal control procedures assessed
by IAD in relation to the IT systems and processes which we considered significant to our audit.
Our activities show that the quality of the applications and the reliability of the electronic data
processing are adequate. We have determined, however, that there is room for improvement in
the IT control environment in relation to authorisation management and the logging of changes
and transactions conducted in two specific IT systems.
We have reported these points in our audit report and made recommendations accordingly,
focusing on further improvements in relation to the IT control environment.
Responsibility of the Management Board and the Supervisory Board for the Financial Statements and the Report
The Management Board is responsible for the preparation and fair presentation of the Financial Statements to give a true and fair view of the net assets and the results of operations in accordance
with Part 9 of Book 2 of the Netherlands Civil Code and for the preparation of the Report in accordance with Section 2:391 of the Netherlands Civil Code and the reporting criteria of PwC, based
on the GRI G4 Guidelines.
In this respect, the Management Board is also responsible for such internal control as it deems necessary to enable the preparation of Financial Statements and the Report that are free from
material misstatement, whether due to fraud or error.
In preparing the Financial Statements and the Report, the Management Board must consider whether the Company is able to continue as a going concern. On the basis of the reporting principles
stated, the Management Board must prepare the Financial Statements on a going concern basis unless the board has the intention to wind up the Company or discontinue its business activities or
if discontinuation is the only realistic alternative. The Management Board should disclose events and circumstances that may cast significant doubt on the Company’s ability to continue as a going
concern in the Financial Statements and the Report.
The Supervisory Board is responsible for overseeing PwC’s reporting process.
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Our responsibility for the audit of the Financial Statements and the Report
Our responsibility is to plan and perform our audit to obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.
Our audit is aimed at obtaining a high degree of assurance about whether the Financial Statements are free from material misstatement. As this assurance it is not absolute, our audit may not
detect all errors and fraud.
We performed our audit of the Financial Statements with professional scepticism and used
professional judgement where relevant in accordance with Dutch Standards on Auditing,
rules of ethics and the independence requirements. Our audit included e.g:
• Identifying and assessing the risks of material misstatement of the Financial Statements,
whether due to fraud or error, designing and performing audit procedures responsive to
those risks, and obtaining audit evidence that is sufficient and appropriate to provide a
basis for our opinion. The risk of not detecting a material misstatement resulting from
fraud is higher than for one resulting from error, as fraud may involve collusion, forgery,
intentional omissions, misrepresentations, or the override of internal control.
• Obtaining an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances. These procedures are not conducted
with a view to expressing an opinion on the effectiveness of PwC’s internal control.
• Evaluating the appropriateness of the accounting policies used and reasonableness of
the accounting estimates and related disclosures in the Financial Statements made by
Management Board.
• Determining whether the going concern basis used by the Management Board is acceptable.
In addition, determining on the basis of the audit information obtained whether there
are events and circumstances that may cast significant doubt on the Company’s ability to
continue as a going concern. If we identify a material uncertainty, we are required to focus
attention in our auditor’s report on the relevant related notes in the Financial Statements. If
the notes are inadequate, we are required to revise our report. Our conclusions are based on
the audit evidence obtained up to the date of our auditor’s report. However, future events or
conditions may cause the Company ceasing to continue as a going concern.
• Evaluating the presentation, structure and content of the Financial Statements and the
notes.
• Evaluating whether the Financial Statements represent the underlying transactions and
events in a manner that achieves fair presentation.
As part of our audit of the Report in accordance with the Assurance Standards 3000 and 3810N
we performed e.g. the following activities:
• A risk analysis as the basis for determining the completeness, level of detail and balanced
presentation of the material issues and identifying and assessing the risks that the
information in the Report contains material misstatements. This risk assessment forms the
basis for the selection and performance of the audit procedures.
• Gaining an understanding of the internal control relevant to the audit by interviewing those
responsible for delivering and analysing the information for the Report.
• Selecting and performing appropriate audit procedures based on the risk analysis and
evaluation of the internal control, including random sampling of internal and external
documents to ascertain whether the information in the Report is properly substantiated.
• Evaluating the information presented in the Report based on our sector-specific knowledge
and experience.
• Reviewing and testing the work performed by the IAD.
• Reviewing the content of the Report in relation to the specific requirements as set out in
Section 2:391 of the Netherlands Civil Code and GRI G4.
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We communicate with the Supervisory Board regarding, among other matters, the planned
scope and timing of the audit and significant audit findings, including any significant findings
in internal control that we identify during our audit.
We confirm to the Supervisory Board that we have complied with the relevant ethical
requirements regarding independence. We also communicate with them about all relationships
and other matters that may reasonably be thought to bear on our independence, and where
applicable, related safeguards.
From the matters communicated with the Management Board, we determine those matters
that were of most significance in the audit of the Financial Statements and are therefore the
key audit matters. We describe these matters in our auditor’s report, unless laws or regulations
preclude public disclosure of the matter or, in extremely rare circumstances, not mentioning
such a matter is in the public interest.
Report on other legal and regulatory requirements
Opinion on the Report and the other information
Pursuant to the legal requirements under Part 9 of Book 2 of the Netherlands Civil Code (regarding our responsibility to report on the report of the Executive Board and the other information),
we report that:
• we have no deficiencies to report as a result of our examination whether the Report of the Executive Board, to the extent we can assess, has been prepared in accordance with Part 9 of Book 2
of the Netherlands Civil Code, and whether the information as required by Part 9 of Book 2 of the Netherlands Civil Code has been annexed.
• that the Report, to the extent we can assess, is consistent with the Financial Statements.
Appointment
We were appointed in August 1996 by the Management Board as PwC’s auditor as from the audit for the 1997 financial year and have been their external auditor to date. The undersigned is
PwC’s signing auditor with effect from the 2013/2014 financial year.
The Hague, 28 September 2015
KPMG Accountants N.V.
R.R.J. Smeets RA
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Entrepreneurship with social focus
In the summer of 2014, they won the Social Impact Lab, a competition for start-up social
enterprises. The prize was two years of intensive coaching and advice from PwC. The three
winners and their coaches tell us about it all.
1. O
OPOEH (Grandads and Grandmas
Looking After a Pet) Linking older people to
household pets, so they get more social contact.
Sofie Brouwer (Stichting OOPOEH): The Social Impact
Lab was a wonderful opportunity for us. My business
partner Sènami Awunou and I had a business model,
but we didn’t have sufficient experience to implement
this effectively – particularly as we did not want to be
dependent on subsidies. The idea behind OOPOEH came
up when my parents’ dachshund got a spinal injury and
could no longer be handled by the dog-walking service.
OOPOEH
PwC Jaarbericht 2014/2015
An older lady in the street wanted to get out more and
her own dog had died. The two were introduced to
each other and it worked out very well. We now have
a database of about a thousand older people and dog
owners, and we bring people together close to where
they live. It’s all going very well.
Rowan Baaijens from PwC, together with a team of
specialists, helped us work out the strategy and the
earnings model. Not only did he help sharpen the
focus, but also provided real practical advice. As a
foundation, we are not for profit but we must look at
our business with a commercial eye. We have become
increasingly more self/assured as a result of this
collaboration with PwC. I´m sure Rowan got to see the
value of his contribution very quickly, as the short lines
of communication meant that we could implement
everything very promptly.
Rowan Baaijens (PwC): Before I started here, I had no
idea of the everyday issues that small businesses face.
A meeting with PwC cost Sofie a great deal of time,
because she had a lot to prepare and that distracted her
from the day-to-day running of the organisation. These
days, I try to arrange things much more efficiently. It
feels good to work on something that gives back to the
community. I talk about it a lot back in our Rotterdam
office and with other clients. I’m the first one out in the
field in this role of business coach. Working with Sofie
provides so much more new energy.
2. Amplino
Developing an effective and affordable biotech tester
to help eradicate malaria
Wouter Bruins (Amplino): It all began with soldering
and messing around on the kitchen table with a piece
of field testing equipment that you would find in
any hospital. We ended up converting a diagnostic
instrument from the hospital into a portable and
affordable piece of equipment that can be used for fieldtesting in developing countries. We went to speak to
the Tropical Institute and they told us that we could use
this to combat malaria. We won a big pitch and a sum of
money, and we got a lot of media attention, but the big
uncertainty was still: Will this come to anything? Until
we won the Social Impact Lab, that is.
Thanks to PwC, we’re now working towards a robust
business model. Jonas really is quite a coach. We speak
with him on a weekly basis, and he provides guidance
and analysis – which is very good, because we are an
odd and chaotic group. It’s exciting for both of us, but
we have a very clear initial goal: to test a million people
by 2020 to help Zambia eradicate malaria.
I think that PwC has learned from us how good it is to
be closely involved with the community and that having
a mission and a belief in a product can sometimes
generate more than simply going down the well-trodden
paths.
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3. CTalents
Coaching as many deaf, hard of hearing, blind and
partially sighted people as possible as they explore their
talents and eventually find work
Sandra Ballij (CTalents): It began with Ctaste, a
restaurant in which guests eat in the dark served by
people with sensory talents - in this case blind people.
After that came Cthecity and Ctalents. I wanted to run
a commercial business on a social basis. My husband
and I both gave up good jobs with a financial services
provider and jumped in at the deep end. More than 65%
of people with a sensory handicap are simply sitting at
home unemployed, and I couldn’t let that pass me by.
Amplino
Jonas Rietbergen (PwC): I was selected as a business
coach and the social enterprise Amplino immediately
appealed to me. The issues that Amplino faces link
well with my expertise. They are creative, ad hoc,
chaotic, and they go for what they believe in. It’s
really contagious! I bring structure and help them set
priorities, but I do not want to temper their enthusiasm.
I am a great believer in their product and, in the not too
distant future, I see many people out there in the field
with their kit, taking the final steps towards eradicating
malaria!
These people need to be pushed. They have grown up
with little sense of independence, and we allow them
to take back some control over their lives. We are firm
but honest. They really need to want it - to work hard,
take responsibility and become independent. They
are coached by someone with a similar handicap, and
it is fantastic to see the change. They go on to live
independently, strike up relationships, discover their
talents - and, through Ctalents, we strive to link them to
businesses. Our first pilot was with Zeeman, with twenty
people getting started there. The major challenge is
creating a base of support and taking ignorance out of
the picture.
Jan-Willem is a great asset to us. He is proactive, he
works and thinks alongside us and he is decisive. We
are hoping there will be long-term benefits from this
relationship. I think that, from us, Willem gets passion
and enthusiasm – and the sense that it’s not all about
money, but that we are doing this because something is
missing in the community.
Jan-Willem van den Beukel (PwC): This collaboration
has had an enormous impact on me. Never have I
been so involved with a client - and in a sounding
CTalents
board role right up to the board of directors. We have
very intensive contact, and Sandra is a woman with a
mission who is not at all backward in coming forward.
For me, this is very energising. With Ctalents, I get to be
involved in inclusive entrepreneurship. One nice touch:
At PwC, we have had a number of their candidates in for
recruitment interviews; one is starting with us soon and
some are still in the pipeline.
In June 2015 we selected from a new ‘challenge’ three
new social enterprises for the Social Impact Lab (see
page 41).
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Information
about PwC
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Our legal structure
Simplified legal structure as per 30 june 2015
Leden
100%
Raad van
commissarissen*
Coöperatie
PricewaterhouseCoopers
Nederland U.A.
(Stichting) ledenraad
29.98%
Konsortium PwC
Europe
1 Priority share
PricewaterhouseCoopers Deelnemingen B.V.
100%
Holding
Nederland B.V.
100%
Ordinary
shares
100%
PwC Europe SE WPG
2.6%
PricewaterhouseCoopers B.V.
PwC Strategy&
Parent (UK) Ltd.
100%
100%
100%
Accountants N.V.
100%
IT Services (NL) B.V.
100%
Certiﬁcation B.V.
* Since 1 May, the Public Interest Committee has been
incorperated as a committee into the Supervisory Board.
Belastingadviseurs N.V.
100%
Compliance Services B.V.
100%
100%
Advisory N.V.
PricewaterhouseCoopers B.V. has the following wholly owned subsidiaries:
• PricewaterhouseCoopers Accountants N.V. (‘Assurance’)
• PricewaterhouseCoopers Belastingadviseurs N.V. (‘Tax & HRS’)
• PricewaterhouseCoopers Advisory N.V. (‘Advisory’)
• PricewaterhouseCoopers Compliance Services B.V.
• PricewaterhouseCoopers Certification B.V.
• PricewaterhouseCoopers Pensions, Actuarial & Insurance Services B.V.
• PricewaterhouseCoopers IT Services (NL) B.V.
PricewaterhouseCoopers Compliance Services B.V. (‘CoS’) issues compilation
reports.
100%
Pensions, Actuarial & Insurance
Services B.V.
PricewaterhouseCoopers Certification B.V. handles assignments involving
mandatory accreditation, such as assurance on CO2 and NOx emissions, and the
issue of ISO certificates on Information Security Management Systems (ISMS).
beneﬁcial ownership
legal ownership
PricewaterhouseCoopers B.V. is a wholly owned subsidiary of Holding
PricewaterhouseCoopers Nederland B.V., the entire ordinary share capital of
which is held by PwC Europe SE Wirtschaftsprüfungsgesellschaft, Germany, and
the one priority share with controlling rights in which is owned by Coöperatie
Coöperatie PricewaterhouseCoopers Nederland U.A. and Holding
PricewaterhouseCoopers Nederland B.V. have concluded association
agreements with each of the private limited liability companies owned by
the professional practitioners (‘partner BVs’). Under these agreements, the
professional practitioners are made available by the partner BVs to practise one
of the professions within our Lines of Service in exchange for a management fee.
PricewaterhouseCoopers Pensions, Actuarial & Insurance Services B.V. (‘PAIS’)
provides advice on, and intermediation regarding, pensions and insurance
products, and operates under a licence from the Netherlands Authority for the
Financial Markets (AFM) for these activities.
PricewaterhouseCoopers IT Services (NL) B.V. provides IT services to PwC
network entities, particularly the entities that are part of the four country
European collaborative association (as further described below).
Our legal structure
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PwC Europe
Along with the member firms in Germany, Austria and Belgium, as at
30 June 2015 PwC Netherlands is a participant in the PwC Europe SE
Wirtschaftsprüfungsgesellschaft collaboration initiative (hereafter referred to
as ‘the four country European collaborative association’or ‘the collaborative
association‘.
The member firms that comprise the global PwC network are members of
PricewaterhouseCoopers International Limited (PwCIL), a United Kingdombased private company limited by guarantee. The PwC network, therefore, is not
an international partnership and the member firms do not constitute any form
of legal partnership or group of companies, except in a very limited number of
cases that have been agreed for specific purposes.
With the exception of its one single priority share, Coöperatie
PricewaterhouseCoopers Nederland U.A. has transferred all the shares it
held in Holding PricewaterhouseCoopers Nederland B.V. to the collaborative
association. Similar transfers were made by the top local holding entities of the
PwC member firms in Germany, Austria and Belgium.
PwCIL has a coordinating role, including for example issuing standards in
the areas of risk and quality management. PwCIL does not provide services
to clients, but focuses solely on reinforcing and supporting the network in the
areas of strategy, knowledge development and expertise of the professionals,
and protection of the PwC brand. PwCIL does not own any of the member firms
and the member firms do not own any of the other member firms, except in a
number of very specific cases.
The entire share capital of the collaborative association is held by Konsortium
PwC Europe, a legal entity under German law that is transparent for regulatory
purposes. The equity rights in Konsortium PwC Europe are held by Coöperatie
PricewaterhouseCoopers Nederland U.A., the Konsortium PwC Deutschland &
Österreich and PwC Belgium BVBA.
The partners of the participating firm have voted to extend the collaborative
association to include Turkey, and this will be completed in the coming months.
Our global network
PwC is a global network of separate and independent member firms operating
locally in countries around the world. Coöperatie PricewaterhouseCoopers
Nederland U.A., Holding PricewaterhouseCoopers Nederland B.V.,
PricewaterhouseCoopers B.V. and their subsidiaries are all associated with this
network.
All services are delivered by the individual member firms for their own account
and risk. PwCIL is not responsible or liable for any actions or omissions of any
of its member firms, it cannot exercise control over their professional opinions
and it cannot bind them in any way. Member firms may not act as agent for or
representative of PwCIL or any other member firm, and they are responsible
solely for their own actions or omissions.
Member firms may participate in regional affiliations. These are designed to
encourage collaboration and the application of common strategies and risk and
quality standards.
Our legal structure
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The following bodies constitute the key elements of the governance
structure of PwC Netherlands:
•
•
•
•
•
•
•
•
General Meeting (GM)
Supervisory Board (SB)
Partner Council (PC)
Board of Management (BoM)
Line of Service Boards (LoS Boards)
Business units (BUs)
Country Admissions Committee (CAD)
Works Council
Each partner is a member of Coöperatie PricewaterhouseCoopers
Nederland U.A. through his or her partner BV. This cooperative,
with excluded liability of members, has a General Meeting, Board of
Management and Partner Council, each with the powers and responsibilities set out below.
General Meeting
The GM has the customary powers of such a body: it approves
the appointment and dismissal of the BoM, it adopts the annual
financial statements, budget and overall strategy of Coöperatie
PricewaterhouseCoopers Nederland U.A., and it approves new
association agreements.
Supervisory Board
The SB operates at the level of Holding PricewaterhouseCoopers
Nederland B.V. It has the role and responsibility of supervisory
body within PwC in the Netherlands. It comprises seven supervisory
directors.
The members of the SB are appointed by the General Meeting of
Shareholders on the basis of a binding proposal submitted by the SB.
The members of the SB qualify as co-policymakers of both
PricewaterhouseCoopers Accountants N.V. and Coöperatie
PricewaterhouseCoopers Nederland U.A. within the context of the
Audit Firms Supervision Act (‘Wta’). Members of the SB are appointed
for a term of four years and may be reappointed for a maximum of one
further term of four years.
Following Principle III.1 of the Dutch Corporate Governance Code, the
role of the SB is to supervise the activities of the Board of Management
and the overall business affairs of Holding PricewaterhouseCoopers
Nederland B.V. and its affiliated group enterprises, as well as to
assist the Board of Management by providing advice. Amongst other
things, the SB is also tasked with approving the appointment of the
Compliance Officer. The Chair of the SB is also Chair of the General
Meeting
As from 1 May 2015 the SB comprises Jan Maarten de Jong, Nout
Wellink, Naomi Ellemers, Frits Oldenburg, Yvonne van Rooy and Cees
van Rijn. As from 1 September 2015, the SB has been extended to
include Annemarie Jorritsma. The SB has the following committees:
• Audit Committee
The role of this committee is to assist the SB in its decision-making
processes in the area of financial matters. These include the (joint)
signing of the annual financial statements and annual report, the financial
reporting process, including the preparation and determination of Holding
PricewaterhouseCoopers Nederland B.V.’s annual plans and budgets,
major capital investments and the design and operation of the internal risk
management and control systems. The Committee also advises the SB on
the selection of the external auditor and on the preparation of the proposal
to the General Meeting regarding the auditor’s appointment and fee. The
Committee comprises Cees van Rijn and Frits Oldenburg.
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Brief résumés of the members of the Supervisory Board of PwC Netherlands
An overview of the current positions of the SB-members is included in the Report of the Supervisory Board
• Remuneration Committee
processes in the area of remuneration policies and practices. These include
the approval of policies for the remuneration of the Board of Managing
Directors, partners and staff and the SB’s supervision of the proper
implementation thereof. The Committee comprises Yvonne van Rooy, Jan
Maarten de Jong and Nout Wellink.
• Selection and Appointment Committee
processes in the area of appointment policies and practices. These include
approval of the appointment policies to be implemented, selection and
submission processes for the appointment of members of the SB (on the
advice of the Selection and Appointment Committee), approval of the
appointment of the Compliance Officer and selection and preparation of
a binding submission to the General Meeting for the appointment of the
Board of Managing Directors. The Committee consists of Jan Maarten de
Jong, Naomi Ellemers and Frits Oldenburg.
• Public Interest Committee
The Public Interest Committee (hereafter the PIC) was set up after
the signing of the Code for Audit Firms. Its role is to safeguard the
public interest in the audit process. Having now been incorporated as
a committee into the SB, the PIC’s role is to monitor the way in which
PricewaterhouseCoopers Accountants N.V. and its Dutch entities ensure
that the public interest is safeguarded in its audits. The Committee
comprises Nout Wellink, Naomi Ellemers, Yvonne van Rooy and
Cees van Rijn.
Jan Maarten de Jong (born 1945, Chair) was a member of the Managing Board of ABN AMRO and ABN
AMRO Holding until 2002 and Chair of the Strategy & Governance Forum of PwC. He is currently member
of the Supervisory Board of KBL European Private Bankers S.A. (Luxemburg), member of the Supervisory
Board of the Frans Hals Museum and member of the Board of Directors of Stichting Preferente Aandelen
ASML.
Nout Wellink (born 1943) was President of De Nederlandsche Bank (the Dutch Central Bank) until June
2011. He is currently Chair of the Board of Governors of the University of Leiden and a Non-executive
Director of the Bank of China. He has been Chair since 2013 of PwC’s Public Interest Committee, which
has now been incorporated into the SB.
Naomi Ellemers (born 1963) is a social psychologist and a professor at Utrecht University since
1 September 2014 specialising in culture and behaviour within organisations. Amongst other things, she is a
member of the Royal Netherlands Academy of Arts and Sciences, and a Corresponding Fellow of the British
Academy for the Humanities and Social Sciences (FBA). In 2010 Naomi was awarded the Royal Netherlands
Academy of Arts and Sciences’ Merian Prize for women in science and the Spinoza Prize.
Frits Oldenburg (born 1961) is of-counsel with FG Lawyers. Until recently, he was a member of the
Board of Trustees of the International Bureau of Fiscal Documentation, partner with NautaDutilh and a
notary specialising in company law. He was also, inter alia, a Member of the Board of Management of the
Koninklijke Notariële Beroepsorganisatie (the Dutch professional body for notaries). Oldenburg has been a
member of PwC’s Public Interest Committee since 2013.
Yvonne van Rooy (born 1951) has been, amongst other things, Secretary of State for Economic Affairs,
Member of the Dutch Parliament (Second Chamber) and Chair of the Executive Board of Utrecht University.
She is currently Chair of de Nederlandse Vereniging van Ziekenhuizen (the Dutch Association of Hospitals) and,
amongst other things, Chair of the Supervisory Board of Philips Electronics Nederland and a Member of the
Supervisory Board of NN Group. Van Rooy has been a member of PwC’s Public Interest Committee since 2013.
Cees van Rijn (born 1947) was CFO and member of the Board of Management of Nutreco for ten years.
Amongst other things, he is also a member of the Board of Governors and Chair of the Audit Committee of
the Leids Universitair Medisch Centrum (Leiden University Medical Centre), a Supervisory Board Member
and member of the Audit Committee of ForFarmers, a Supervisory Board member and Chair of the Audit
Committee of Detailresult Groep, FloraHolland and Plukon Food Group ,and a member of Stichting
Continuïteit SBM Offshore. Van Rijn has been a member of PwC’s Public Interest Committee since 2013.
Annemarie Jorritsma (born 1950) has been a member of the Dutch Parliament (First Chamber) for the
VVD (Liberal Party) since 9 June 2015 and since 1 September 2015 Chair of de Nederlandse Vereniging
van Participatiemaatschappijen (the Dutch Private Equity and Venture Capital Association). She was Mayor
of Almere for 12 years up to September 2015 and was previously Chair of de Vereniging van Nederlandse
Gemeenten (the Association of Netherlands Municipalities) for 7 years and also a member of the Dutch
Parliament (Second Chamber), Minister of Transport, Public Works and Water Management, Minister of
Economic Affairs, and Deputy Prime Minister
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Partner Council
With the installation of the SB as of 1 May 2015, the Local Oversight
Board has become the Partner Council. It represents the collective
interests of the members and provides advice on germane issues that
are presented to Coöperatie PricewaterhouseCoopers Nederland
U.A.’s GM for approval. The Partner Council may also provide advice,
either on request or on its own initiative, and may act as advocate in
the interests of the partner concerned in cases of internal dispute.
The members of the Partner Council are appointed by the members
of Coöperatie PricewaterhouseCoopers Nederland U.A. for a term of
up to four years, with the possibility for re-appointment for another
maximum term of four years.
The independent Partner Council (previously called the Local Oversight
Board) had the role of supervisory body within PwC in the Netherlands
up to 1 May 2015. The Partner Council comprises six partners from the
Lines of Service plus an independent Chair.
The members of the Partner Council are Ruud Dekkers (Chair), Hans
Bod, Hans Dullaert (since 1 July 2015), Maarten van Ginkel, Jan
Maarten van der Meulen (up to 1 July 2015), George de Soeten, Pieter
Veuger and Janet Visbeen.
Board of Management
Under the Audit Firms Supervision Act, members of the BoM qualify
as policymakers of PricewaterhouseCoopers Accountants N.V. and of
Coöperatie PricewaterhouseCoopers Nederland U.A., both of which
entities have a licence from the Authority for the Financial Markets (the
AFM) to perform statutory audits. The BoM (also referred to as the
Territory Leadership Team) is responsible for creating and maintaining
an appropriate environment for the conduct of the company’s business
and is responsible for the achievement of its objectives, strategy and
policies. Since 1 July 2013, the Board has had six members, each of
whom has been assigned specific areas of portfolio responsibility.
The allocation of responsibilities among the members of the Board
of Management reflects the BoM’s need to manage and supervise
both the various Lines of Service and market segments as well as
functional tasks such as Finance, Human Capital, IT, Quality & Risk and
Marketing. The Chair is the only statutory director (under the articles
of association) and he/she appoints the other members as authorised
executive directors.
The Assurance, Tax & HRS and Advisory representatives on the BoM
are individually also the Chair of their respective LoS Board and of the
board of their Line of Service operating company.
Members of the BoM are appointed by the GM on the basis of a binding
proposal from the SB. Appointment is for a term of up to four years,
with eligibility for re-appointment for one more additional term of up
to four years. Their résumés are included on page 107.
Lines of Service-boards
The members of the LoS Boards act as directors of their respective
Line of Service operating company. The LoS Boards have operational
responsibility for formulating and implementing their LoS’ strategy.
These operational responsibilities include the day-to-day affairs and
results of the LoS, the quality of the professional practice and client
service, HC, risk management and the evaluation of partners and
directors. Members of the Assurance Board qualify as policymakers
of PricewaterhouseCoopers Accountants N.V. under the Audit Firms
Supervision Act.
Appendices
Members of the Assurance Board
Michael de Ridder (Chair and Statutory
director of PricewaterhouseCoopers
Accountants N.V.) and Peter
Jongerius, Michel Adriaansens and
Agnes Koops-Aukes (Authorised
executive members of the board of
PricewaterhouseCoopers Accountants N.V.).
Members of the Tax & HRS Board
Sytso Boonstra (Chair and Statutory
director of PricewaterhouseCoopers
Belastingadviseurs N.V.) and Jeroen
Boonacker, Henk van Cappelle, Diederik
van Dommelen, Wanda Otto and Ron
Unger (Authorised executive members
of the board of PricewaterhouseCoopers
Belastingadviseurs N.V.).
Members of the Advisory Board
Ad van Gils (Chair and Statutory director
of PricewaterhouseCoopers Advisory N.V.)
and Martin Blokland, Maarten van de
Pol and Johannes Boelens (Authorised
executive members of the board of
PricewaterhouseCoopers Advisory N.V.).
The members of the LoS Boards are elected for a maximum of
two three-year terms. The member of the Board of Management
representing an individual Line of Service is chair of that LoS Board
and chair and only statutory director of the Line of Service operating
company. The Chair appoints the other members of the LoS Board as
authorised executive members of the board.
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Business units
Given the size of their organisations, the Lines of Service are structured
operationally into business units (BUs).
These BUs have the following responsibilities:
• Implementation of the applicable regulatory requirements for
quality, risk management and conduct (Code of Conduct), the
Business Unit Leader being assisted in this by the Quality Assurance
Partner who is responsible for quality aspects such as the acceptance,
continuance and execution of engagements including the statutory
audits
• Operational management by objective in the areas of revenue,
productivity and profitability
• Development and management of an effective infrastructure to
manage staffing needs and resources, industry expertise and
business unit planning
• Human capital management (with focus on client service) and
people development (in terms of experience and conduct)
Appendices
Works Council
PwC’s Works Council has nineteen members, representing the various
Lines of Service and support departments (seven from Assurance,
three from Tax & HRS, three from Advisory, two from TRS (staff
who were previously part of CoS) and four from Firm Services). The
Works Council meets regularly with a representative of the Board of
Management. Council members also sit on various sub-committees
linked to individual Lines of Service and support departments, the role
of which is to represent the interests of all staff in the LoS/support
department and to bring topics forward for consideration by the
Council and discussion with the BoM.
The Council also has various specialist committees dealing with
conditions of employment, employment law and regulation, and
pensions.
Country Admissions Committee
The CAD acts as an advisory body for both the BoM and the LoS Boards
regarding the appointment of new partners and directors. The CAD
has a sub-committee for each LoS and an independent chair. The Chair
of the CAD is appointed by the BoM and the members are appointed
by the LoS Boards, both for a maximum of two three-year terms. The
Chair and members may hold no other management functions.
The CAD focuses mainly on the extent to which the personal qualities
of the professionals concerned fit the profile developed for PwC
partners and directors. The LoS Board appoints new directors only
after concurring advice has been received from the CAD and these
appointments are then ratified by the BoM. Decisions to proceed with
association agreements with the new partner BVs are presented by the
BoM to the GM along with the conclusions of the Partner Council based
on the concurring advice received from the CAD.
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Appendices
Peter van Mierlo (born 1963) joined one of the legacy firms
of PwC in 1987 and has been a partner since 1996. He was
previously a member and then Chair of the Assurance Board.
He joined the Board of Management on 1 November 2009 and
has been Chair since 1 July 2013.
Portfolio:
• Chair of the Board of Management, CEO
• Member management board PwC Europe SE
• Member of the EMEA Leadership Team
• Member of the PwC Network Strategy Council
• Diversity
• Marketing & Communications
Date of appointment: 1 November 2009
Term of office ends: 1 July 2018, not eligible for reappointment
Other external positions:
• Member of the Executive Board of VNO-NCW (the
Confederation of Netherlands Industry and Employers)
• Member of the Board of Stichting Wetenschappelijk Instituut
voor het CDA (the Research institute of the CDA political
party)
Sytso Boonstra (born 1961) joined one of the legacy
firms of PwC in 1990 and has been a partner since 1995.
Among other positions, he has been a Business Unit Leader,
CIPS Industry Leader and member of the Tax & HRS Board.
Since 1 January 2010, he has been Chair of the Board of
PricewaterhouseCoopers Belastingadviseurs N.V. and a
member of the Board of Management. He has been an
authorised executive director of the Board of Management
of PwC since 1 January 2012.
Portfolio:
• Tax & HRS
• Lid Tax & HRS Extended Global Leadership Team
• Member of the Tax & HRS EMEA Leadership Team
• Tax Reporting & Strategy
Date of appointment: 1 January 2010
Term of office ends: 1 July 2016, not eligible for reappointment
Frank Engelen (born 1971) joined one of the legacy firms of
PwC in 1996 and has been a partner since 2003. He became an
authorised executive director of the Board of Management of
PwC on 1 July 2013.
Portfolio:
• Clients & Markets
• Member of the Coordination Team of the four country
European collaborative association (Markets)
Date of appointment: 1 July 2013
Term of office ends: 1 July 2018, eligible for reappointment
Other external position:
• Member of the Board of the Foundation for Advanced
International Tax Studies • Member of the Board of the Foundation for the
Advancement of the Study of International Taxation
• Professor of International Tax Law at Leiden University
• Deputy judge at The Hague Court of Justice
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Ad van Gils (born 1967) joined one of the legacy firms of
Jolanda Lamse-Minderhoud (born 1969) joined one of
PwC as an auditor in 1991 and became partner on 1 July 2002.
From 2006 to 2009, he was Transaction Services Business Unit
Leader and then managed the Deals & Forensics business unit
until 1 July 2013. He joined the Advisory Board on 1 July 2012,
and has been Chair of the Board of PricewaterhouseCoopers
Advisory N.V. and an authorised executive director of the
Board of Management of PwC since 1 July 2013.
the legacy firms of PwC in 1992 and has been a partner since
2006. She was appointed to the Assurance Board in 2010
and became an authorised executive director of the Board of
Management on 1 July 2013.
Portfolio:
• Advisory
• CFO
• COO
• Member of the Advisory EMEA Leadership Team
Portfolio:
• Human Capital
• Member of the Coordination Team of the four country
European collaborative association (Human Capital)
• Member of the EMEA Executive Team (Human Capital)
• Employer’s representative on the Works Council
• Corporate responsibility
• Member Oversight Board TNO (The Netherlands
organisation for Applied Scientific Research)
Appendices
Michael de Ridder (born 1963) started with one of the
legacy firms of PwC in 1986 and has been a partner since 1996.
Before being appointed to the Assurance Board in 2008, he
held various positions, including that of Business Unit Leader.
He has been Chair of the Board of PricewaterhouseCoopers
Accountants N.V. and an authorised executive director of the
Board of Management since 1 July 2013.
Portfolio:
• Assurance
• Quality & Risk
• Member of the Assurance EMEA Leadership Team
• M
ember of the Curatorium of post-graduate accountancy
studies at VU University, Amsterdam
• T
eacher education programme for Supervisory Board
members at Nyenrode Business Universiteit
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Code of conduct and complaints procedure
In addition to having procedures covering many of the matters that affect our
technical expertise, integrity and independence, we also have a global Code of
Conduct that concisely and clearly sets out what we stand for and what is expected
of us. We have adopted our Code of Conduct from the global PwC network code.
The Code provides guidance to our staff and
partners as to how they should behave and
conduct themselves in a variety of differing
circumstances and situations. In practice,
what this means is that we expect every PwC
person to behave with respect, dignity, honesty
and courtesy. We have deliberately framed
our Code of Conduct in general terms, as
guidelines cannot be devised for all situations
and we believe that our people are very well
placed to make their own decisions sensibly
and to consult with colleagues where needed.
It is not for nothing that our motto is: ‘The
worst mistake you can make is the mistake you
make on your own’.
Compliance with the Code of Conduct is not
voluntary. It is an integral part of the contract
of employment signed by all partners and staff.
By signing the letter of engagement, our clients
also confirm through the terms and conditions
that they will act ethically, and we require
major suppliers with contracts above € 25,000
to agree to our supplier conditions which
include a passage on ethical behaviour.
The Code of Conduct is a mandatory element
of our training and development programmes.
Every new staff member is given e-learning
which specifically addresses the handling of
dilemmas. The Code of Conduct is also covered
in other training modules.
Complaints and notifications
procedures
The Code of Conduct provides complaints
and notifications procedures, which cover
procedures both for complaints in the
personal arena and suspicions of professional
misconduct.
Business
related
Notifications in the personal arena cover, for
instance, intimidation, aggressive behaviour
or discrimination, and complaints notified of
this nature are dealt with by the Complaints
Committee. Notifications of suspected
professional misconduct (for instance
improper acceptance of gifts or deliberate
mis-invoicing) are dealt with by the Business
Conduct Committee.
Neither the Complaints Committee nor the
Business Conduct Committee is empowered to
levy sanctions. They submit recommendations
to the Board of Management, which is the body
responsible for the final decision on the matter.
Depending on the seriousness of the offence, a
sanction can take the form of a warning, written
notification, suspension or dismissal.
Those who have complaints in the personal
arena or who suspect professional misconduct
can confide in one of eighteen Confidential
Counsellors within our organisation. The
counsellors look into how issues arising in
the work place can be resolved and they can
provide guidance to those filing a complaint.
Complaints from external parties
Third and external parties can also file a
complaint. Information on this is set out on our
website.
Complaints and notifications procedures
In the personal
arena
Confidential counsellors
Business Conduct
Committee
Complaints Committee
Recommendations to the
Board of Management
Recommendations to the
Board of Management
Code of conduct and complaints procedure
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The framework for our quality and risk management policies
When we refer to the quality of professional
services delivery, we mean two equally very
important elements: (a) the extent to which
the service and the results thereof comply
with legislation, regulatory requirements and
professional standards (which can generally
be determined fairly objectively) and (b) the
extent to which the service meets the expectations of our diverse group of stakeholders. Our
quality and risk management policies cover
both aspects.
As legislation, regulation and standards differ
between the various forms of service offerings
and delivery, Assurance, Tax & HRS and
Advisory each have their own structure for
managing this. Our quality control and risk
management systems are embedded in our
operational processes - from the acceptance
of clients and engagements through to the
delivery of the end product.
The framework across the page applies to all
our service offerings and delivery.
Acceptance of clients and engagements
• Acceptance procedures for new clients
and engagements include aspects such as
determining and verifying the identity of
the client and its representative. Examples
of questions that come up are: Does the
reputation of the (potential) client fit that of
PwC? Who are the owners and what do we
know about (the quality of) management?
Are there external and/or internal supervisory
bodies? How strong is the financial position of
the client? What exactly is the client looking
for? Can we deliver what the client is looking
for? Has the company/organisation been in
the news recently and in what context?
Acceptance
of clients and
engagements
Carrying out
the engagement
• Client and engagement
acceptance procedures
• Risk and accep tance
panels
• Independence check
• Conflict of interest
check
• Wwft check (Anti-Money
Laundering and AntiTerrorist Financing)
• Authorisation of
Services
• Engagement Letter
• Planning memorandum
• File maintenance
• Global Data Protection
Policy
• Wwft (Anti-Money
Laundering and
Anti-Terrorist Financing)
• Partner/director
involvement
• Reviews during
engagements
Testing of the
quality control
systems and
individual
engagements
• PwC Risk Management
Standards and Network
Reviews
• Quality Management
Review
• Engagement
Compliance Reviews
• R
isk and acceptance panels are called
for potential engagements where our
risk or size criteria indicate that a wider
assessment needs to be made regarding the
acceptability of the engagement. A high-risk
situation can arise, for instance, because
of the client’s profile, the complexity of the
engagement or the nature, diversity and
composition of the stakeholders we might
encounter. In addition to these mandatory
situations, any individual engagement team
may also voluntarily call for a panel to assess
a potential engagement.
In addition to the partners directly involved
in the potential engagement, the risk panel
also comprises the LoS Risk Management
Partner, the Business Unit Leader, the
Industry and/or Specialist Leader and/
or other partners with particularly
relevant experience. In many cases, the
Independence Office is also involved and,
where necessary, also a member of the
applicable LoS Board or the BoM.
A risk panel can decide to impose additional
requirements to address the risks identified,
for instance a requirement to have ‘two pairs
of eyes’ involved, by appointing a second
partner to the engagement or by adding a
subject matter expert to the engagement
team.
Our framework for quality and risk management policies
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• I ndependence-check: For all audit
engagements (and since 1 January 2014 in
the Netherlands also for all other assurance
engagements), PwC as an organisation
and all its partners and directors must be
independent of the clients for which they
are performing engagements. Amongst
other things, this means that PwC team
members involved on the engagement may
have no financial interests in the client and
no close personal relationships with senior
persons within the entity involved who have
a management or supervisory role or a role
from which they can exert influence on the
entity being audited.
Engagement and client acceptance
procedures include an assessment as to
which independence requirements apply
to the particular client and as to whether
the service is a permitted service under
the applicable legislative and regulatory
requirements. Dutch law prescribes that an
audit firm may not provide advisory services
to public interest entities (PIEs) for which it
performs the statutory audit, such as listed
companies and financial institutions.
The PwC NL Compliance & Independence
Office makes an annual selection of about
fifteen per cent of the partners and directors
for detailed testing of compliance with
the personal independence requirements.
The selection includes all newly appointed
partner and director candidates, together
with any partner or director who received
a written warning or reprimand the year
previously.
Pre-approval by the Assurance partner:
The auditor responsible for the client must
approve, in advance, all services proposed
for that client irrespective of which PwC
member firm wishes to provide the service.
Until this approval is given, the work may
not begin and no time may be charged to
the engagement. The approval process is
managed through the Authorisation for
Services software (AFS), a tool mandated
throughout the global PwC network for
listed companies and companies with
overseas operations.
• C
onflict of interest check: A potential
conflict of interest can arise, for instance,
where two or more PwC teams are acting for
different potential buyers and/or sellers in a
business acquisition. Where needed, we put
so-called Chinese (or ethical) walls in place
to prevent confidential information held by
one team inadvertently becoming available
to the other team. In such situations, the
teams are kept physically separate and
increased confidentiality requirements
are put in place. In such situations, it is
also possible that either we, or the client,
withdraw from the engagement.
• T
he Anti-Money Laundering and
Anti-Terrorist Financing Act (Wwft)
requires that both the client and the
Ultimate Beneficial Owner (UBO) be
identified and that, where necessary,
this identification be verified before the
engagement can begin.
This law also requires us to report any
unusual transactions at or by a client
(either actually effected or intended) to
the Financial Intelligence Unit Nederland
(previously the Unusual Transactions
Reporting Hotline).
Carrying out the engagement
• E
ngagement letter: This agreement with the
client sets out exactly what services are to be
provided and what work is to be done, the
fee therefor and the terms and conditions
relating thereto. The engagement partner
(the partner ultimately responsible for the
engagement) and the client both sign this
agreement. To the extent possible, this helps
avoid later misunderstandings as to what
was agreed.
• P
lanning memorandum: This is a
document, put together on larger
engagements, that sets out how the
engagement is to be carried out, who is
responsible for what and what competencies
need to be called upon in order to be able
Appendices
to complete the engagement to the required
level of quality.
• F
ile documentation: For every professional
engagement, it is crucial that our people
maintain their files on a complete and clear
basis. There must be sufficient documentation on file of the work done to support
the end product agreed in the Engagement
Letter.
• P
wC Global Data Protection Policy:
In exchanging information necessary for
completing the engagement, it is of the
utmost importance that the confidentiality
of client and other personal information be
protected to the extent required by law and
regulation. In this regard, we comply with the
Global Data Protection Policy promulgated
by the PwC network and which, in the
Netherlands, we have supplemented with
the Netherlands’ requirements concerning
the protection of personal information (the
Dutch Data Protection Act - ‘Wet bescherming
persoonsgegevens’).
• P
artner/senior director/director
involvement on the engagement:
The engagement leader (who is always
a partner, senior director or director) is
responsible for the adequacy and quality of
the performance of the engagement, and
sufficient involvement of partners, senior
directors and directors in the performance
of the engagement is critical.
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• R
eview during the engagement: All work
done is required to be reviewed by someone
more senior in the team.
• H
ot reviews en realtime-reviews:
are independent reviews carried out in
Assurance as the engagement is in progress,
so that the approach can be tailored, if need
be, as the engagement proceeds. Real Time
Reviews were introduced this year as part
of our quality programme ‘Alert!’ (see also
page 31).
Testing of the quality control systems
and individual engagements
• P
wC Network Standards and Network
Risk Management Policies: All PwC
member firms are required to comply with
the Network Standards (10) and to ensure
that all partners and staff comply with the
Network Risk Management Policies (40).
All member firms are obliged to confirm, on
a self-assessed basis, that this has been the
case throughout the year. The self-assessments are reviewed by network specialists.
As needed, compliance with Network
Standards is assessed during the Network
Reviews that, in principle, take place once
every three years.
• Quality Management (System) Review
(QMR): In Assurance, Global Risk & Quality
reviews the Assurance Quality Management
System (QMS) on an annual basis, including
proper application of any updates thereto.
There is a ‘full QMR’ carried out every three
years, which tests in detail compliance with
all applicable standards and policies, with
an ‘update QMR’ being performed during
the two intervening years.
• E
ngagement-specific reviews by
independent partners, directors and
managers: These Engagement Compliance
Reviews (ECRs) are performed in all Lines
of Service to test engagement performance
quality and compliance with the applicable
PwC requirements and policies, to identify
potential areas for improvement, and to
determine that PwC has not been exposed
to unacceptable risk. In Assurance, these
reviews are largely carried out by people
from outside the Netherlands.
• A
d hoc reviews are carried out as indicated
by specific circumstances or as follow up to
the outcome of earlier internal and external
reviews.
• R
eviews by the Internal Audit
Department (IAD):
The Internal Audit Department carries out a
risk-specific programme of work throughout
the year and reports its findings to the COO
and the BoM.
Compliance Officer
By law, the Compliance Officer has a legal
supervisory responsibility regarding auditor
compliance with laws and regulations
and regarding the operation of the quality
management systems. PwC has extended this
responsibility to include its entire organisation.
As from financial year 2015/2016, the
Compliance Officer also has a direct reporting
responsibility to the recently installed
Supervisory Board. The Transparency Report
includes more details on this responsibility.
LoS-specific policies for quality
Each Line of Service has its own policies and
practices, though the quality of the service
offerings and delivery is always paramount.
Assurance, Tax & HRS and Advisory carry out
their own periodic reviews and have their own
extensive monitoring programmes to assure
quality in service offerings and delivery and,
where necessary, to implement improvements
where shortcomings are noted.
Assurance
The services provided by Assurance are
regulated by extensive legislation and
regulation. Statutory audits fall under the
supervision of the AFM, and the AFM regularly
reviews our quality control systems and sample
tests the quality of the statutory audits we have
performed.
Appendices
In Assurance, National Office (NO) provides
professional support to the practice in a
number of different ways. It develops and
supports the implementation of policies and
procedures in the areas of accounting, auditing
and risk management, and this plays a key role
in ensuring our compliance with legislative
and regulatory requirements.
A detailed description of Assurance’s quality
control system is provided in the Transparency
Report.
Tax & HRS
Tax & HRS has a knowledge centre that
keeps our tax advisers informed on current
developments in the fiscal and legal arenas.
Partners and staff are required to consult the
Tax Opinion Committee on complex issues.
This committee includes specialist partners
and staff, including a number of university
professors.
The PwC Tax Code of Conduct applies to the
provision of all tax advice, and this code is the
framework within which we provide advice
to clients. As from last year, Tax & HRS has a
committee that, on referral, assesses whether
our response to the particular referred tax
issue is in line with this Tax Code of Conduct.
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Appendices
Advisory
Advisory is ISO 9001:2008-certified
for its quality management system, ISO
20252-certified for the quality of market
research we do for clients, and Continuous
Quality Index-accredited for the measurement,
analysis and reporting of patient experiences
in the healthcare sector.
External audits are carried out regularly
into Advisory´s maintenance of quality in
connection with these certifications and
accreditations.
Other measures
We have set out above how all clients and
potential clients are subject to assessment
in our acceptance procedures and that we
have a wide range of controls in place to
avoid instances of conflicts of interest and/or
independence.
We have also put measures in place for the
prevention of fraud and corruption within our
organisation. These include regular IAD testing
of all expense claims on a random sample
basis.
The IAD also tests the operation of our
financial systems for reliability and the
application of and compliance with our
internal control and other procedures.
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Care for the environment is embedded throughout our business processes, and we
have again this year taken further steps to be more economical with resources and
to further restrict our CO2 emissions.
Our sustainability policies are designed to reduce our environmental impact and to facilitate
behavioural change among our people. To implement our sustainability policies as effectively
as possible, our Facilities Management, Procurement, Fleet Management and Corporate
Responsibility teams work in close collaboration with each other.
Golden score for Corporate Social Responsibility (CSR) from EcoVadis
At the request of a number of clients, PwC completes, on an annual basis, the CSR score card run
by the independent agency, EcoVadis. This year, for the first time, we were awarded a golden
score for our CSR initiatives. This puts PwC in the top 4% of the entities that participated.
We encourage environmentally friendly car usage
For many years now, we have had a bonus-penalty lease scheme that encourages fuel efficiency.
In September 2012, we started the Electric Transport (ET) pilot, in which we provided an electric
car to a number of our staff. The pilot has been successfully completed and every person who
drives less than 20,000 kilometres a year now has the option to lease either a fully electric car or
a plug-in hybrid. As from 2015/2016, we are making this financially attractive and, in doing so,
we expect to better meet the needs of our staff and increase the proportion of ET cars in our fleet.
We are aiming for one hundred ET cars, which we estimate will result in a reduction of four per
cent in our CO2 fuel emissions. Lease car fuel is currently a significant proportion of our total
reported CO2 emissions. As the number of electric cars increases, we have increased the number
of charging stations this past year.
Train journeys increased 44% over prior year.
Almost ninety per cent of our taxi journeys in Amsterdam are in fuel-efficient taxis
We have changed the taxi usage policy in our Amsterdam office. Regular ordering of taxis is now
effected via the social enterprise, Taxi Electric. Other taxi firms are used only where Taxi Electric
cannot meet the request. 1,200 (representing 87 per cent) of our taxi journeys were handled by
Taxi Electric this past year; our goal was 75 per cent.
Reduction of car emissions through tyre pressure campaign
Facility Management and CR jointly put together a pilot tyre pressure campaign that saved 8,500
litres of fuel and reduced CO2 emissions by over 30 tonnes this past year. Importantly, this pilot
also increased staff awareness both of the importance of proper tyre pressures and of how proper
tyre pressure can help contribute to the environment. In the light of these positive results and
reactions, the campaign was repeated at the end of June 2015, and will be repeated twice a year
from now on.
Our electricity usage has reduced by seven per cent
We had set ourselves the goal of reducing electricity usage by five per cent. We significantly exceeded
this goal with a reduction of seven per cent, achieved mainly through better configuration and setting
of equipment, by reducing office space by almost 1,500 m2 (in The Hague and Eindhoven) and
through the effect of energy saving measures put in place earlier in Rotterdam and Amsterdam (such
as use of LED lighting). PwC uses sustainable electricity generated in the Netherlands. 75 per cent of
our entire electricity usage consists of sustainably generated wind energy.
We are extending the roll out of the waste segregation pilot
We have come to the conclusion that our waste segregation could be better organised and
more waste can be recycled. We have therefore started an extensive programme in our Utrecht
office regarding waste segregation. This has removed all waste paper bins from office areas and
replaced them with collection bins on a departmental basis. The pilot has been very successful
and the waste segregation percentage in Utrecht increased from 13 to 55 per cent. We have since
started to extend the roll out of this project.
Our catering is becoming more and more sustainable
In the PwC-managed restaurants, we have made progress in our offerings of healthier and more
sustainable products, by offering local products and using as little packaging material as possible
to reduce catering waste. 31 per cent of our offerings are of a sustainable nature and 42 per
cent carry the stamp of Het Vinkje (a government-supported foundation in the Netherlands that
encourages and facilitates healthier foodstuffs).
Sustainability in our chain
The Procurement department has again this year been evaluated in the context of its ISO 9001
certification, and its quality management system again meets requirements in the areas of client
satisfaction, legislation and regulation, and our own PwC standards.
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Care for the environment is a standard feature of our requests for proposal. We take the view
that collaboration in the value chain provides opportunities not only for efficiency but also for
contributing to a sustainable society – and, for this reason, a Code of Conduct for suppliers forms
part of our terms and conditions for purchase.
Furthermore, our Procurement department participated last year in master classes for social
enterprises (see also page 41).
Online meeting tool in use
The roll out of an online meeting tool throughout our global network has enabled our people
and clients to meet, share documents and brainstorm with each other without having to travel.
Nearly 8,400 online meetings were held last year.
We have communicated better
We have again this past year focussed on increasing the visibility of the environmental measures
we have taken, and all offices are provided with communication tools (such as explanatory
displays) covering, amongst other things, our use of sustainable coffee beans, purified tap water,
sustainable toilet paper, and the online meeting tool.
The results of the People Survey indicate a higher level of appreciation than prior year for the
environmental measures that PwC has taken, but overall this is still low. 53% of our people
believe that PwC takes adequate measures to reduce its environmental impact compared to 50%
in prior year. We had aimed to reach an appreciation rate of at least 55%. We must therefore
continue to work on increasing the visibility of the measures that we are taking in this area.
Internal impact of our CR policies
PwC takes adequate measures to offset the effects
of its business activities on the environment.
2014/2015
2013/2014
53%
50%
PwC is a socially responsible company.
75%
72%
The people I work for recognise and value staff
involvement in CR activities.
56%
53%
Environmental impact
Appendices
2014/2015
2013/2014
Renewable electricity consumption (%)
85.3
76.0
Paper (in kg per FTE)
• Purchased printer and copier paper
34
35
• Recycled paper, cardboard and printing
50
51
• Archiefvernietiging
20
26
Car usage *
• Business kilometres driven (per FTE)
13,967
13,988
• Average standard consumption (litres per 100 km)
4,8
5,2
• Average actual consumption (litres per 100 km) **
6,7
6,9
• Number of bonuses awarded under the climate-neutral scheme**
393
337
• Number of penalties issued under the climate-neutral scheme**
233
254
Air travel
• Number of kilometres flown (per FTE)
6,163
6,039
Train
• Number of business kilometres travelled (per FTE)
244
162
• Number of journeys (per FTE)
4,8
3,4
16,164
17,271
CO2 emissions (in metric tons)
• Cars
• Air travel
• Train
9,304
9,401
4,628
4,964
28
20
• Electricity ***
881
1,190
• Gas ***
944
1,138
• District heating ***
378
558
* Excluding partners
** Based on calendar years
*** Extrapolated from actual measurements
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Key statistics
Appendices
Number of people
(as at 30 June 2015)
LoS
Assurance
Sex
Male
Male total
Female
Female total
Assurance total
Tax & HRS Male
Male total
Female
Female total
Tax & HRS total
Advisory
Male
Male total
Female
Female total
Advisory total
Firm
Male
Services
Male total
Female
Female total
Firm Services total
Total
Contract
Level
Partner
Professional staff
Support staff
Partner
Professional staff
Support staff
Partner
Professional staff
Support staff
Partner
Professional staff
Support staff
Partner
Professional staff
Partner
Professional staff
Support staff
Professional staff
Support staff
Support staff
Permanent
contract
93
923
2
1,018
13
449
23
485
1,503
88
598
6
692
8
437
14
459
1,151
54
432
486
4
210
11
225
711
1
243
244
521
521
765
4,130
Temporary
contract
0
61
4
65
0
64
4
68
133
0
46
0
46
0
36
0
36
82
0
18
18
0
6
0
6
24
0
19
19
57
57
76
315
Number of people
(as at 30 June 2015)
Contracted in
0
21
2
23
0
8
0
8
31
0
11
0
11
0
4
0
4
15
0
16
16
0
1
1
2
18
1
77
78
62
62
140
204
Total
93
1,005
8
1,106
13
521
27
561
1,667
88
655
6
749
8
477
14
499
1,248
54
466
520
4
217
12
233
753
2
339
341
640
640
981
4,649
LoS
Assurance
Sex
Male
Male total
Female
Female total
Assurance total
Tax & HRS Male
Male total
Female
Female total
Tax & HRS total
Advisory
Male
Male total
Female
Female total
Advisory total
Firm
Male
Services
Male total
Female
Female total
Firm Services total
Total
Full-time/Part-time
Level
Partner
Professional staff
Support staff
Partner
Professional staff
Support staff
Partner
Professional staff
Support staff
Partner
Professional staff
Support staff
Partner
Professional staff
Partner
Professional staff
Support staff
Professional staff
Support staff
Support staff
Permanent
contract
88
931
6
1,025
9
421
10
440
1,465
87
505
2
594
8
254
5
267
861
53
412
465
3
172
7
182
647
1
191
192
215
215
407
3,380
Temporary
contract
5
53
0
58
4
92
17
113
171
1
139
4
144
0
219
9
228
372
1
38
39
1
44
4
49
88
0
71
71
363
363
434
1,065
Contracted
in
0
21
2
23
0
8
0
8
31
0
11
0
11
0
4
0
4
15
0
16
16
0
1
1
2
18
1
77
78
62
62
140
204
GRI
Total
93
1,005
8
1,106
13
521
27
561
1,667
88
655
6
749
8
477
14
499
1,248
54
466
520
4
217
12
233
753
2
339
341
640
640
981
4,649
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Key statistics
Appendices
Decision-making
with both sides
of the brain
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Key statistics
Digitalisation can play havoc
complete with existing business
models. Businesses that face
disruptive innovations from
new competitors don’t need to
simply transform themselves,
they need to re-invent themselves.
PwC-partner Jheroen Muste and
design strategist Karan Shah
provide support to businesses in
this process.
Jheroen Muste heads up PwC’s digital
consulting practice. Karan Shah is a live
example of the new competencies that PwC is
putting in place in this arena. He is a design
led business strategist, graduating from Delft
University of Technology, and he provides
support to clients as they develop their
strategies in this area. Design thinking is a
creative way of solving problems. It revolves
around how you translate in-depth insight
into human behaviour, tastes and needs into
the design of products and services. Design
thinking puts the user right at the centre.
Why is it so very important to put the user
at the centre of new product and service
development?
Muste: ‘For years, the market has been
dominated by supply, and now the needs of
the user need to be at the centre of things.
This follows on, amongst other things,
from the digitalisation that’s happening all
around us. It’s no longer the producer who
decides – it is the consumer, the consumer
who with all the technology now at his or her
disposal can change what he or she wants
and can find it out there, both in no time at
all. To avoid misunderstanding, digitalisation
does not revolve around technology, but in
our view around a fundamental shift that is
taking place within society as a whole that
is placing demand, and not supply, at the
centre of things. This shift is helped along
by technology – through the internet and
its technological spin-offs – but it manifests
itself largely in ever changing consumer and
end-user behaviour.’
Shah: ‘You don’t get anywhere any more
by simply pushing a product. Successful
businesses don’t come up with products and
services, they provide solutions, solutions that
have to fully meet their users’ needs. No one
imagined that they needed an iPad, but once it
was available no one could do without it.’
Muste: ‘We have seen this happening during
the past decade, initially in the information-driven sectors like publishing. Producers
of technical literature were forced to reinvent
themselves as providers of specifically tailored
digital content that the end user could see was
really adding value. Had they not transformed
themselves like that, they would not have
survived. And now almost every sector is
facing the same need to reinvent itself.’
How does human centred design fit into
PwC consulting practice? Is PwC going into
the production business?
Muste: ‘Boardroom decisions were always
taken on the basis of facts and figures,
meaning with the analytical left brain. But
these days, with the current high speed of
technological development, that is often
totally impossible. If future market conditions
are going to be so fundamentally different
from the present and the past, then new
methods will have to be worked out to support
sound decision-making. Businesses are being
forced to think outside their existing boxes.
The ever changing needs of the consumer and/
or the end user is becoming the driving force
in the digital transformation that our clients
and ourselves are facing. Design thinking – or,
putting it another way, actually calling on the
intuitive, creative right brain – can help find a
response to the fundamental change process
that’s happening right now.’
Shah: ‘Businesses and organisations must also
tackle things that do not yet even exist, and
not restrict themselves only to the options
that are available to them now. We’re working
with clients towards the development of
new products and services to respond to the
changing needs of their customers and end
users. ‘The Art of the Possible – Business
Re-imagined’ is what we call it. And we go
beyond simply giving advice. We develop
solutions through co-creation with clients and
end users, and we stand ready and able to
bring them to fruition.’
Appendices
Muste: ‘Of course, we are not becoming a
producer of products, but we want to let clients
see clearly what is possible. And we do this
by developing working prototypes. Think, for
instance, of a refrigerator with sensors and
internet connectivity, or a new service design
for an existing product or service, or software
applications in and around smart cities.’
Does this mean that everyone in the
boardroom is going to be making decisions
based on intuition and creativity?
Shah: ‘What’s important is the right mix
of analytical and creative elements in the
decision-making process. The business world
still sees design thinking as something only
for the creative types and pure product
developers, but this is no longer the case and hasn’t been for a long time. But, happily,
current thinking is moving forward, and the
technology section is leading the charge. For
instance, human centred design is very much
at the heart of Apple’s and Google’s success
– and not only in terms of the design and
functionality of their products, but also in the
way they interact with the user.’
Muste: ‘More and more decision-making will
need to be on the basis of a wider range of
methods and insights. In this digital age, we
still need the skills offered by financial experts
and business economists but, equally so, also
the skills offered by designers. And that’s what
we’re investing in. if we didn’t, in time we
would no longer be able to meet the needs of
our clients.’
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Key statistics
Appendices
Appendices
PwC Jaarbericht
Annual Report
2014/2015
2014/2015
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Key statistics
Appendices
2014/2015
Revenue
Net revenue (€ millions)
Increase/decrease
Net revenue per person (€’000)
Increase/decrease
External revenue per Line of Service (€ millions)
Assurance
Tax & HRS
Advisory
Totaal
2013/2014
2012/2013
2011/2012
2010/2011
697.3
+3.8%
169.7
671.6
+1.2%
165.9
663.8
-4.3%
154.7
693.3
+4.3%
155.3
664.4
-3.1%
155.8
+2.2%
+7.2%
-0.4%
-0.3%
+1.2%
291.9
240.5
164.9
697.3
285.4
240.3
145.9
671.6
306.1
217.0
140.7
663.8
327.4
228.9
137.0
693.3
317.1
227.4
119.9
664.4
2013/2014
2012/2013
2011/2012
2010/2011
2014/2015
Results
Increase/decrease
Operating profit per Line of Service (€ millions)
Assurance
Tax & HRS
Advisory
Management fee, salary and emoluments
Available for distribution to partners (€ millions)
Average partner management fee* (€’000)
Average financing per shareholder at
year-end (€’000)
Staff bonuses (€ millions)
Average salary cost per FTE (€’000)
Average bonus per FTE (€’000)
*P
ayments are made from the management fee
relating to items such as pension contributions,
social security and disability contributions and life
insurance premiums.
Average FTEs
Partners
Professional staff
Support staff
157.7
-2.8%
162.1
+13.3%
143.1
+7.5%
133.2
-11.4%
150.3
-11.1%
55.6
63.4
36.2
69.1
64.5
27.8
61.9
58.2
22.7
61.2
54.2
19.3
74.9
55.9
20.7
2014/2015
2013/2014
2012/2013
2011/2012
2010/2011
153.9
605.8
-5.3%
156.1
639.7
21.3%
137.7
527.5
12.6%
125.6
468.7
-16.8%
142.6
563.6
-7.4%
584.2
29.3
72.2
7.6
627.8
30.3
71.8
8.0
506.3
23.4
68.9
5.8
2014/2015
4,110
254
3,054
802
2013/2014
4,047
244
3,000
803
2012/2013
4,292
261
3,180
851
481.7
20.4
67.7
4.9 **
2011/2012
4,464
268
3,323
873
477.5
26.6
66.9
6.6
2010/2011
4,265
253
3,132
880
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Key statistics
Appendices
for the financial year ended 30 June 2015
Prepared by the Remuneration Committee on 25 September 2015 and adopted by the Supervisory
Board on 25 September 2015. This Remuneration Report is an appendix to the Report of the
Supervisory Board included in the Annual Report of Holding PricewaterhouseCoopers Nederland B.V.
The Annual Report is published on the website www.pwc.nl.
Definitions
The definitions of certain terms
used in this Remuneration
Report are as follows:
PwC NL
Coöperatie PricewaterhouseCoopers Nederland U.A.,
Holding Pricewaterhouse
Coopers Nederland B.V. and/
or one or more of its subsidiary
companies, unless specifically
stated otherwise
Professional practitioner
The natural person who
practices his/her profession
in the name of the Coöperatie,
the Holding or a subsidiary
company thereof on the basis
of an association agreement
Coöperatie
Coöperatie
Nederland U.A.
Introduction
This Remuneration Report deals with the remuneration of the Board of
Directors and Supervisory Board of Holding PricewaterhouseCoopers
Nederland B.V. (PwC NL) and of the partners whose partner BVs have concluded
association agreements with PwC NL.
The responsibilities of the Remuneration Committee of the Supervisory Board
include the preparation of the annual Remuneration Report for adoption by the
Supervisory Board, as required by the Dutch Corporate Governance Code.
This Report covers the following matters:
• PwC NL governance
• Remuneration of partners: The policies and practices regarding the
remuneration of partners and the Board of Management for the financial year
2014/2015 and the claw back scheme put in place for partners who act as
external auditor
• Remuneration of the Board of Management: The changes to the remuneration
policies for the Board of Management as from 1 July 2015
• Remuneration of the Supervisory Board.
The Annual Report’s section ‘Governance and remuneration’ provides general
information regarding the remuneration policies and practices of PwC NL.
PwC NL Governance
The Supervisory Board was installed as of 1 May 2015 and is comprised entirely
of external members. Up to 1 May, the organisation had a Local Oversight
Board in place, made up of PwC NL partners. The General Meeting appoints
the Supervisory Directors, based on a binding proposal submitted by the
Supervisory Board. This proposal is based on the advice of its Selection and
Appointment Committee. The General meeting has the power to suspend
or dismiss a supervisory director. Members of the Supervisory Board are
appointed for the period determined at the time of appointment, which may
not exceed four years, and are eligible for reappointment but may not serve on
the Supervisory Board for more than eight years. The Supervisory Board has
prepared a retirement roster, which is included in this Remuneration Report.
The Board of Management comprises one or more members. The Members
of the Board of Management comprise professional practitioners with whose
partner BVs an association agreement has been concluded. The Articles of
Association prescribe that only such professional practitioners are eligible for
membership of the Board of Management. The professional practitioner with
whose partner BV an association agreement has been concluded is authorised to
use the title ‘partner’ vis à vis third parties.
The Chair of the Board of Management (also known as the Territory Senior
Partner) is the only statutory director and he appoints the other members as
authorised executive director within the Chair’s team during the Chair’s period
of office. The Chair of the Board of Management is appointed by the General
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Key statistics
Meeting based on a binding proposal submitted by the Supervisory Board. This
submission is based on the advice of its Selection and Appointment Committee.
In making its selection proposals, the Committee evaluates also the candidates
the potential TSP is proposing for his team as fellow Members of the Board of
Managing Directors.
The General Meeting has the power to suspend or dismiss any member of the
Board of Management, and the Supervisory Board has the power to suspend any
member of the Board of Management. The Supervisory Board determines the
remuneration of the statutory director and all authorised executive directors.
Partner remuneration and introduction of claw back scheme
Given the level of public interest in PwC NL’s services, the remuneration
methodology for PwC NL partners has been designed so that quality and matters
such as independence, Code of Conduct and compliance with, amongst other
things, internal and external regulatory requirements have a proportionate and
significant effect on the remuneration levels.
A claw back scheme has been introduced as from 1 July 2015 for partners who act
as external auditor. The claw back period has been determined as six years. Under
this scheme, one sixth of the individual partner’s remuneration is put to one side
for transfer to a foundation that is in the process of being set up. If it transpires
before the end of this period that the external auditor has issued an incorrect
opinion for which the auditor is culpable, and which has resulted in societal
damage, the auditor loses entitlement to part or all of the deferred remuneration.
It has been agreed that the Remuneration Committee of the Supervisory Board
will review the claw back scheme on an annual basis. The introduction of this
scheme is in line with the recommendations made in the report ‘In the Public
Interest’ issued by the Future Accountancy Profession Working Group.
Appendices
The evaluation and remuneration methodologies for partners is summarised
as follows: Remuneration is based on performance, role and responsibility,
with quality being a significant criterion. The aggregate amount of partner
remuneration varies with the financial performance of PwC NL, and is based
on a points system in which the Euro value per point is determined, at the end
of the year, as the profit available divided by the aggregate number of points in
circulation. Points are allocated to partners as of the beginning of each year. A
regular good performance means a partner is entitled to remuneration amounting
to the product of the number of points allocated and the Euro value per point. A
positive or negative individual partner rating can lead to an upward remuneration
adjustment (bonus) of up to 33% or a downward adjustment (penalty) of
up to 50%. To date, the average bonus has amounted to some 8% of income.
PwC NL also rewards quality positively. A partner, director and team rating of
above average in terms of quality in their client work can result in additional
remuneration.
The partners receive this profit share in the partner BVs through which they
operate under an association agreement with PwC NL. These partner BVs bear
the costs of pension provisioning, insurances and taxation.
‘Regular’ conduct (i.e. the conduct that we can expect of everyone) attracts
no additional remuneration. We refer to this as ‘baseline expectations’.
Baseline expectations represent behaviour in line with our Code of Conduct,
complying with all applicable internal and external regulatory requirements
and with proactive involvement within PwC NL. Non-compliance with baseline
expectations can negatively affect total remuneration by 25-50%.
The Remuneration Committee and the Supervisory Board have been informed of,
and have evaluated, the proposals submitted to the Board of Management by the
Line of Service Boards and the Markets Leader, including their stratification of the
candidates. Where an evaluation results in an unsatisfactory rating, an assessment
is carried out as to whether the issues are incidental and whether there is
an indication of longer-term consequences. The evaluation also reflects how
compliance infringements are dealt with and it includes the results of reviews.
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Key statistics
Board of Management remuneration
The above-mentioned methodology applied in 2014/2015 also to the Board of
Management. As from 1 July 2015, however, the remuneration arrangements
for the Board of Management are being brought into line with the report ‘In the
Public Interest’. As from this date, the members of the Board of Management will
receive a fixed non-profit related remuneration determined by the Supervisory
Board.
The Remuneration Committee has reviewed the remuneration policies for the
Board of Management within the context of Measure 3.3 of the report ‘In the
Public Interest’ and proposals submitted to the Supervisory Board effective
as from 1 July 2015. The proposed remuneration policies for the Board of
Management have been prepared subject to the approval of the General Meeting
on 2 October 2015. The Supervisory Board determines the amount of the
remuneration of the individual members of the Board of Management in line
with criteria set by the General Meeting.
Assuming individual responsibilities remain unchanged, the Supervisory Board
has determined the remuneration of the individual members of the Board of
Management for the coming three years as follows:
Fixed remuneration*
Sytso Boonstra
Frank Engelen
Ad van Gils
Jolanda Lamse
Peter van Mierlo
Michael de Ridder
Chair
Year 2014/2015*
914,500
1,016,800
1,047,250
1,260,471
914,500
956,284
914,500
956,284
1,180,000
1,366,120
914,500
1,016,800
* Total remuneration before the obligatory Foundation Verrekenfonds deductions and before the amounts
withheld annually in connection with obligations under the Internal Partner Financial Arrangements
Appendices
The Supervisory Board determines a gross amount for each member of the
Board of Management, including the Chair. This amount is before taxes,
social charges, pensions and similar items and, in principle, represents the
annual fixed remuneration for the individual’s term of office in the Board
of Management. In line with the association agreements, it is paid to the
partner BVs and they are responsible for the payment of taxes and any pension
arrangements and insurances.
In addition to the fixed remuneration set out above, the members of the Board
of Management receive expense allowances in line with those set for all partners
and they receive interest income on capital contributed.
The Supervisory Board is empowered to determine a bonus of up to 20% of
the fixed remuneration based on the achievement of long-term goals set by
the Supervisory Board within the context of PwC’s societal role. This bonus
may only be awarded if the goals so set have been exceeded. The Supervisory
Board is also empowered to levy a remuneration penalty on a member of the
Board of Management, up to a maximum of 20%, when the quality aspects
of the performance as professional practitioner or member of the Board of
Management justifies this.
The Supervisory Board has compared the remuneration policies and practices
for members of the Board of Management, partners and staff to a number
of remuneration benchmarks, such as CEOs, other audit and advisory
organisations, other PwC member firms and relative remuneration levels
within PwC NL and other organisations. The Supervisory Board has also taken
account of remuneration levels and trends for current and past members of
the Board of Managing Directors both before and after their membership of
the Board, as well as trends in the Euro values per point and any investments
made or planned including investments in quality and acquisitions. The
Supervisory Board reviews the fixed remuneration levels annually in the light
of the responsibilities and portfolios of the individual members of the Board of
Managing Directors.
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Key statistics
The claw back for partners who act as external auditor applies equally to
members of the Board of Managing Directors who have been authorised by
the Supervisory Board to act as external auditor.
The agreements made regarding the time to be allocated are set out in the
Supervisory Board’s Charter, in its committees’ charters and in the appointment
contracts with each member. The time allocated depends on the role that the
member fills in the Supervisory Board and in one or more of its committees, and
therefore varies per member.
The remuneration of the members of the Supervisory Board is a fixed annual
amount, determined by the General Meeting. No personal loans or guarantees
have been provided to or on behalf of the members of the Supervisory Board.
The remuneration of the members of the Supervisory Board is independent of
the performance of PwC NL.
C.J.M. van Rijn
Y.C.M.T. van Rooy
A.H.E.M. Wellink
Appendices
The remuneration of the Supervisory Board is provided in the table on this page.
The amounts relate to the Supervisory Board’s period of office in 2014/2015
(two months from installation on 1 May 2015 to the end of the financial year on
30 June 2015).
Remuneration of the Supervisory Board
N. Ellemers
J.M. de Jong (Chair)
A. Jorritsma (Member
as from 1 September 2015)
F.W. Oldenburg**
Claw back applying to the Board of Management
The Supervisory Board is empowered to claim bonuses back from individual
members of the Board of Managing Directors if the information (financial or
non-financial) supporting the bonus transpires to be inaccurate.
Loans and guarantees
No personal loans or guarantees have been provided to or on behalf of the
members of the Board of Managing Directors.
Remuneration for the
Supervisory Board for
2014/2015 (€)
Fixed remuneration for
chairmanship or member
ship of the SB
Remuneration for Audit
Committee membership
7,500
11,667
-
-
7,500
1,250
7,500
7,500
7,500
1,667
Remuneration for
Remuneration Committee
membership
1,250
-
The Charter requires that the Supervisory Board meet at least six times a year and
additionally as often as the Chair deems necessary. The tasks specific to the Chair
of the Supervisory Board are also included in this Charter. The Charter of each
committee prescribes that it should meet as often as it deems necessary, but at
least four times a year unless there is a need for fewer meetings. The tasks specific
to the Chair of the individual Committee are also included in the individual
Committee’s Charter.
The meetings of the Board and of the Committees are scheduled to take three to
four hours and about two hours each, respectively.
Remuneration for
Selection and Appointment
Committee membership
1,250
1,667
-
Remuneration for Public
Interest Committee
Membership*
1,250
-
1,250
1,250
1,250
Total 2014/2015
(1 May - 30 June 2015)
10,000
14,584
10,000
1,250*
1,250*
1,667*
10,412
10,000
10,417
* Excluding remuneration as a member of the Public Interest Committee of PricewaterhouseCoopers Accountants N.V. during the period prior to the installation of the Supervisory Board as of 1 May 2015.
** F.W Oldenburg was a member of the Public Interest Committee during the period prior to the installation of the Supervisory Board as of 1 May 2015.
GRI
127
Contents
Foreword
Key statistics
The Supervisory Board’s Charter requires that remuneration should be
proportionate to the responsibilities and time needed to discharge the
responsibilities properly, and it should be independent of the Company’s results.
The remuneration for each Member, based on his/her roles in the Board and
the Committees, is set out in an appointment agreement with each Member.
The Member is responsible for discharging the role and for managing his/her
time to achieve this, with due consideration given to the roles, jurisdiction and
responsibilities allocated to the Supervisory Board and its members as prescribed
by law, the Articles of Association, the Supervisory Board’s Charter and the
appointment agreement.
Appendices
The annual remuneration for the Chair of the Supervisory Board amounts
to €70,000, for a member of the Supervisory Board €45,000, for a Chair of a
committee €10,000, and for a member of a committee €7,500.
The remuneration policies and practices for the Supervisory Board will be
included in the Supervisory Board’s annual evaluation process. Given that the
Board was installed only as of 1 May 2015, this has not yet taken place.
Retirement roster for the members of the Supervisory Board
Age at date of
appointment
Appointment
2016
2017
2018
2019
Eligible for
reappointment?
N. Ellemers
52
1 May 2015
●
Yes
J.M. de Jong (Chair)
69
1 May 2015
●
No
F.W. Oldenburg
54
1 May 2015
●
Yes
C.J.M. van Rijn
67
1 May 2015
●
No
Y.C.M.T. van Rooy
63
1 May 2015
●
Yes
A.H.E.M. Wellink (Vice-chair)
71
1 May 2015
A. Jorritsma
65
1 September 2015
No
●
●
Yes
The Supervisory Board has set up a roster indicating when members are expected to step down from the Board and/or make themselves available for re-appointment if eligible. This is published on the
website. The Members of the Supervisory Board are appointed for the period agreed on appointment, the first term of which may not exceed four years.
GRI
128
Contents
Foreword
Key statistics
Appendices
The information in this Annual Report relates to PwC the Netherlands. In other
words, all information about our policy, strategy, procedures and systems, and
about the associated indicators, relates to our own organisation. The indicators,
therefore, also relate to PwC the Netherlands, except for the information
relating to equal pay for men and women and the remuneration ratio, which
relate only to the professional staff group and not to support staff.
The indicators for client satisfaction relate, by definition, only to the professional
staff group, and all HR indicators exclude trainees.
Our PwC policies also impact third parties, and we have set these impacts out in
our value creation process on page 21, though we have not yet measured them
quantitatively.
Basis of our integrated report
Scope of the report
Quality
PwC aims to differentiate itself through the high quality of its service. We alone are responsible for the quality we deliver.
Integrity
Our policies here are not limited to PwC, but also to third parties that we do business with. We have procedures in place for acceptance
of new clients and for acceptance of engagements at existing clients, amongst other things to reject clients and engagements that involve
(for instance) integrity risk. We request our larger suppliers to sign an undertaking that they do business in a manner that corresponds with
ours. Although our integrity policies affect external parties, these policies are solely our responsibility.
Independence
Auditors provide assurance on clients’ financial and non-financial information, so independence is critical for our practice. Our own
policies for quality and risk management are vital to this and, to safeguard our independence, we are selective in who we work for.
Governance
Governance is the framework within which an organisation is led and managed. It determines how supervision is structured and how the
organisation is accountable to its stakeholders. Our Assurance line of service is subject not only to internal, but also external, supervision.
When we refer to governance, we mean governance only within the context of our own organisation and the relationships with our own
external supervisory bodies.
PwC wil zich onderscheiden met dienstverlening met maatschappelijke impact. Daar hoort een visie bij die wij uiten door deelname – in
verschillende vormen – aan het maatschappelijk debat. Dat betekent bijvoorbeeld ook dat we (pro)actief verschillende media benaderen
met onze opinie of informatie beschikbaar stellen door rapportages te publiceren.
Participation in the public debate
PwC aims to differentiate itself by delivering services with a social impact. This requires us to have a vision that we communicate through
participation, in various different ways, in the public debate. For example, we actively and proactively communicate our views to the media
and make information freely available by publishing reports.
Transparency
Although imposed to some extent by legislation and regulation this is also a choice that we have made ourselves in dialogue with our
stakeholders. By setting the right example, we aim to emphasise the importance we place on transparency. After all, reporting is our core
business.
Client satisfaction
Client satisfaction is critical to our very existence, and we achieve this through the quality of our service delivery.
GRI
129
Contents
Foreword
Key statistics
Talent management
The reporting here relates to PwC, though the impact on wider society is also significant. We see ourselves as a sort of educational
institute that offers added value to society as people move into new careers.
Innovation
Innovation is important to PwC. Our innovative capacity determines how far we are able to adapt our services to continue meeting the
requirements of our clients and of society.
Impact of our services on society
We expect our services to enhance the quality of financial and non-financial information generally and to help our clients to work more
efficiently and effectively and improve their business processes by using our expertise and skills. This is how we aim to make our
contribution to building trust in the markets (financial and otherwise). The tax burden of multinationals is also a key theme as regards the
impact of our services on society as our advice affects the way our clients handle this. The pro bono services we offer to social enterprises
and charitable organisations also has a direct impact on society. The social impact that we aim to achieve is entirely dependent on the
quality we deliver.
Diversity
We are convinced that our quality increases the more we are able to address issues, including societal issues, from different perspectives,
so diversity is important PwC. Equal pay for men and women is a key theme within diversity and it is important to our organisation that
men and women are rewarded only on the basis of their performance and competencies.
Financial results
This refers to our own commercial and financial results.
Well-being has a significant effect on PwC and on our people. We want our people to be healthy, happy, at ease and feeling confident in
themselves, both physically and mentally. We are treating well-being as a crucial element of our policies for quality.
Appendices
GRI
130
Contents
Foreword
Key statistics
Appendices
GRI table 4.0
NR
ENG - GRI description
Page
Aspect
Not included
Scope*
External Assurance
General aspects covered by PwC’s reporting, in accordance with the GRI 4.0 requirements
Strategy & analysis
G4-1
Statement from the most senior decision-maker about the relevance of sustainability to the
organization and the organization’s strategy for addressing sustainability.
G4-2
Provide a description of key impacts, risks and opportunities.
G4-3
Report the name of the organization.
G4-4
Report the primary brands, products, and services
G4-5
Report the location of the organization's headquarters.
G4-6
Report the number of countries where the organization operates, and names of countries
where either the organization has significant operations or that are specifically relevant to the
sustainability topics covered in the report.
G4-7
Report the nature of ownership and legal form
G4-8
Report the markets served (including geographic breakdown, sectors served, and types of
customers and beneficiaries).
G4-9
Report the scale of the organisation
G4-10
a. Report the total number of employees by employment contract and gender. b. Report the
total number of permanent employees by employment type and gender. c. Report the total
workforce by employees and supervised orkers and by gender. d. Report the total workforce
by region and gender. e. Report whether a substantial portion of the organization’s work is
performed by workers who are legally recognized as self-employed, or by individuals other
than employees or supervised workers, including employees and supervised employees of
contractors. f. Report any significant variations in employment numbers (such as seasonal
variations in employment in the tourism or agricultural industries).
G4-11
Report the percentage of total employees covered by collective bargaining agreements.
4
Foreword
29, 43-44,
43-45,
48, 51-52,
56-57
Our strategy and achievements ('Reflection
of the material issues in our strategic goals',
'Taking the opportunities the market offers
us', 'Transforming our organisation' and
'Investing in strategic competencies'), Risk
factors, Expectations for the future
Organisational Profile
104
Legal structure of PwC the Netherlands
20, 22
PwC in the Netherlands, How we create value
140
Acknowledgements
20,104
PwC in the Netherlands, Our legal structure
104
Our legal structure
20, 104
PwC in the Netherlands, Our legal structure
8, 20, 119
Key statistics, PwC in the Netherlands,
119
Breakdown of our organisation
0%
G4-12
Describe the organization's supply chain.
22, 118
How we create value,
Our sustainability policies
G4-13
Report any significant changes during the reporting period regarding the organization's size,
structure, ownership, or it's supply chain.
21, 104
About the Report of the Board of
Management, Our legal structure
G4-14
Report whether and how the precautionary approach or principle is addressed by the
organization.
Within scope
Partially within scope
Outside scope
Not Applicable
*All indicators relate to PwC NL, unless otherwise indicated in this table.
GRI table 4.0
GRI
131
Contents
Foreword
Key statistics
NR
Page
Aspect
G4-15
List externally developed economic, environmental and social charters, principles, or other
initiatives to which the organization subscribes or which it endorses.
21
Management
G4-16
List memberships of associations (such as industry associations) and national or
international advocacy organization.
41
Our srategy and achievements
(‘Delivering the PwC Experience’)
G4-17
a. List all entities included in the organization’s consolidated financial statements
or equivalent ocuments. b. Report whether any entity included in the organization’s
consolidated financial statements or equivalent documents is not covered by the report.
G4-18
Not included
Scope*
Appendices
External Assurance
Identified Material Aspects and Boundaries
67
General notes to the financial statements
a. Explain the process for defining the report content and the Aspect Boundaries. b. Explain
how the organization has implemented the Reporting Principles for Defining Report Content.
21, 23-24,
129-130
Management, Stakeholders and materiality,
G4-19
List all the material Aspects identified in the process for defining report content.
23-24, 27
G4-20
For each material Aspect, report the Aspect Boundary within the organization.
129-130
G4-21
For each material Aspect, report the Aspect Boundary outside the organization.
129-130
21, 38, ,55
67
Management, Our strategy and
achievements, Governance and
remuneration, General notes to the financial
statements
21
Management
G4-22
Report the effect of any restatements of information provided in previous reports, and the
reasons for such restatements.
G4-23
Report significant changes from previous reporting periods in the Scope and Aspect
Boundaries.
G4-24
Provide a list of stakeholder groups engaged by the organization.
23-24
G4-25
Report the basis for identification and selection of stakeholders with whom to engage.
23-24
G4-26
Report the organization’s approach to stakeholder engagement, including frequency of
engagement by type and by stakeholder group, and an indication of whether any of the
engagement was undertaken specifically as part of the report preparation process.
23-24
G4-27
Report key topics and concerns that have been raised through stakeholder engagement,
and how the organization has responded to those key topics and concerns, including
through its reporting. Report the stakeholder groups that raised each of the key topics and
concerns.
23-24
Stakeholder Egagement
Reporting profile
G4-28
Reporting period (such as fiscal or calendar year) for information provided.
G4-29
Date of most recent previous report (if any).
21
Management
Management
Not Applicable
G4-30
Reporting cycle (such as annual, biennial).
21
G4-31
Provide the contact point for questions regarding the report or its contents.
140
Acknowledgements
G4-32
a. Report the ‘in accordance’ option the organization has chosen. b. Report the GRI Content
Index for the chosen option (see tables below).
21, 131
Management, GRI table 4.
Within scope
Outside scope
GRI table 4.0
GRI
132
Contents
Foreword
Key statistics
NR
Page
Aspect
21, 94-100,
105
Management, Assurance report,
Corporate governance
G4-33
a. Report the organization’s policy and current practice with regard to seeking external
assurance for the report. b. If not included in the assurance report accompanying the
sustainability report, report the scope and basis of any external assurance provided. c.
Report the relationship between the organization and the assurance providers. d. Report
whether the highest governance body or senior executives are involved in seeking
assurance for the organization’s sustainability report.
G4-34
Report the governance structure of the organization, including committees of the highest
governance body. Identify any committees responsible for decision-making on economic,
environmental and social impacts.
27, 108,
110-111
Management approach,
G4-35
Report the process for delegating authority for economic, environmental and social topics
from the highest governance body to senior executives and other employees.
27
Management approach
G4-36
Report whether the organization has appointed an executive-level position or positions with
responsibility for economic, environmental and social topics, and whether post holders
report directly to the highest governance body.
27
Management approach
G4-37
Report processes for consultation between stakeholders and the highest governance body
on economic, environmental and social topics. If consultation is delegated, describe to
whom and any feedback processes to the highest governance body.
27
Management approach
G4-38
Report the composition of the highest governance body and its committees.
108,
110-111
G4-39
Report whether the Chair of the highest governance body is also an executive officer (and,
if so, his or her function within the organization’s management and the reasons for this
arrangement).
110
G4-40
Report the nomination and selection processes for the highest governance body and its
committees, and the criteria used for nominating and selecting highest governance body
members.
39, 108
Our strategy and achievements, Corporate
governance
G4-41
Report processes for the highest governance body to ensure conflicts of interest are
avoided and managed. Report whether conflicts of interest are disclosed to stakeholders.
107,
113-114
Corporate governance, Framework for our
quality and risk management policies
G4-42
Report the highest governance body’s and senior executives’ roles in the development,
approval, and updating of the organization’s purpose, value or mission statements,
strategies, policies, and goals related to economic, environmental and social impacts.
27
Management approach
G4-43
Report the measures taken to develop and enhance the highest governance body’s
collective knowledge of economic, environmental and social topics.
27
Management approach
G4-44
a. Report the processes for evaluation of the highest governance body’s performance with
respect to governance of economic, environmental and social topics. Report whether such
evaluation is independent or not, and its frequency. Report whether such evaluation is a
self-assessment.b. Report actions taken in response to evaluation of the highest governance
body’s performance with respect to governance of economic, environmental and social
topics, including, as a minimum, changes in membership and organizational practice.
27, 54-55
Management approach,
G4-45
a. Report the highest governance body’s role in the identification and management of
economic, environmental and social impacts, risks, and opportunities. Include the highest
governance body’s role in the implementation of due diligence processes. b. Report whether 24, 51, 113
stakeholder consultation is used to support the highest governance body’s identification and
management of economic, environmental and social impacts, risks, and opportunities.
Stakeholders and materiality, Risk factors,
Framework for our quality and risk
management policies
G4-46
Report the highest governance body’s role in reviewing the effectiveness of the
organization’s risk management processes for economic, environmental and social topics.
management policies
Not included
Scope*
Appendices
External Assurance
Governance
Within scope
Outside scope
24, 51, 113
GRI table 4.0
GRI
133
Contents
Foreword
Key statistics
NR
Page
Aspect
24, 51,113
management policies
106
Not included
Scope*
G4-47
Report the frequency of the highest governance body’s review of economic, environmental
and social impacts, risks, and opportunities.
G4-48
Report the highest committee or position that formally reviews and approves the
organization’s sustainability report and ensures that all material aspects are covered.
G4-49
Report the process for communicating critical concerns to the highest governance body.
24, 27
Stakeholders and materiality, management
approach
G4-50
Report the nature and total number of critical concerns that were communicated to the
highest governance body and the mechanism(s) used to address and resolve them.
25-26
G4-51
a. Report the remuneration policies for the highest governance body and senior executives.
b. Report how performance criteria in the remuneration policy relate to the highest
governance body’s and senior executives’ economic, environmental and social objectives.
53-55
G4-52
Report the process for determining remuneration. Report whether remuneration consultants
are involved in determining remuneration and whether they are independent of management.
Report any other relationships which the remuneration consultants have with the
organization.
55
G4-53
Report how stakeholders’ views are sought and taken into account regarding remuneration,
including the results of votes on remuneration policies and proposals, if applicable.
55
G4-54
Report the ratio of the annual total compensation for the organization’s highest-paid
individual in each country of significant operations to the median annual total compensation
for all employees (excluding the highest-paid individual) in the same country.
55
Partners, professional
staff, not support or temporary staff
G4-55
Report the ratio of percentage increase in annual total compensation for the organization’s
highestpaid individual in each country of significant operations to the median percentage
increase in annual total compensation for all employees (excluding the highest-paid
individual) in the same country.
55
Partners, professional
staff, not support or temporary staff
Appendices
External Assurance
Ethics and Integrity
How we create value, Stakeholders and
materiality, Our strategy and achievements
(‘Building on the quality of our service
delivery’, ‘Delivering the PwC Experience’),
Governance and remuneration, Risk factors,
Code of Conduct and complaints procedure
G4-56
Describe the organization’s values, principles, standards and norms of behavior such as
codes of conduct and codes of ethics.
22, 25-26,
30, 35-37,
53, 51-52,
111
G4-57
Report the internal and external mechanisms for seeking advice on ethical and lawful
behavior, and matters related to organizational integrity, such as helplines or advice lines.
37, 55, 112
(‘Delivering the PwC Experience’),
Governance and remuneration, Code of
Conduct and complaints procedure
G4-58
Report the internal and external mechanisms for reporting concerns about unethical or
unlawful behavior, and matters related to organizational integrity, such as escalation through
line management, whistleblowing mechanisms or hotlines.
37, 55,112
Our strategy and achievements (‘Delivering
the PwC Experience’), Governance and
remuneration, Code of Conduct and
complaints procedure
Within scope
Outside scope
GRI table 4.0
GRI
134
Contents
Foreword
Key statistics
NR
Page
Aspect
Not included
Scope*
Appendices
External Assurance
Material Aspects covered more extensively by PwC’s reporting in order to continue to monitor progress, in accordance with GRI 4.0
Disclosures on Management Approach (DMA)
Economic performance
DMA
a. Report why the Aspect is material. Report the impacts that make this Aspect material.
b. Report how the organization manages the material Aspect or its impacts. c. Report the
evaluation of the management approach.
G4-EC1
Report the direct economic value generated and distributed
G4-EC2
Report risks and opportunities posed by climate change that have the potential to generate
substantive changes in operations, revenue or expenditure.
G4-EC3
Where the plan’s liabilities are met by the organization’s general resources, report the
estimated value of those liabilities.
G4-EC4
Report the total monetary value of financial assistance received by the organization from
governments during the reporting period.
23-24, 27,
42-44,
49-50,
56-57, 130
approach, Our strategy and achievements
7, 42-44,
123
Key statistics, Our strategy and achievements
(‘Taking the opportunities the market offers
us’), Five-year summary of financial results
Not material
75
Not Applicable
Occupational Health
DMA
G4-LA5
Percentage of total workforce represented in formal joint management-worker health
and safety committees that help monitor and advise on occupational health and safety
programs.
G4-LA6
Type of injury and rates injury, occupational diseases, lost days and absenteeism and total
number of work-related fatalities, by region and by gender.
G4-LA7
Workers with high incidence or high risk of diseases related tot their occupation.
G4-LA8
Health and safety topics covered in formal agreements with trade unions.
23-24, 27,
32, 40, 130
Not Applicable
40
Not material
Not Applicable
Training and Education
DMA
8, 23-24,
27, 32,
40, 37-39,
51-52, 130
Key statistics, Stakeholders and materiality,
Management approach, Our strategy
and achievements (‘Delivering the PwC
Experience’), Risk factors, Scope of this
Annual Report
G4-LA9
Average hours of training per year per employee by gender, and by employee category.
8, 38
G4-LA10
Programs for skills management and lifelong learning that support the continued
employability of employees and assist them in managing career endings.
37-39
G4-LA11
Percentage of employees receiving regular performance and career development reviews,
by gender and by employee category.
55
Within scope
Outside scope
GRI table 4.0
GRI
135
Contents
Foreword
Key statistics
NR
Page
Aspect
Not included
Scope*
Appendices
External Assurance
Diversity and Equal Opportunity
DMA
23-24, 27,
39-40,
51-52, 130
Stakeholders and materiality, Management
(‘Delivering the PwC Experience ‘), Risk
factors, Scope of this Annual Report
G4-LA12
Composition of governance bodies and breakdown of employees per employee category
according to gender, age group, minority group membership, and other indicators of
diversity.
39, 105,
106, 107,
110-111,
119
Our strategy and achievements (‘Delivering
the pwC Experience’), Corporate governance
PwC NL - excluding trainees
Equal Remuneration for Women and Men
DMA
G4-LA13
Ratio of basic salary and remuneration of women to men by employee category,
by significant locations of operation.
23-24, 27,
40, 130
40
Stakeholders and materiality (part of
Diversity), Management approach, Our
strategy and achievements (‘Delivering the
PwC Experience’), Scope of this Annual
Report (part of Diversity)
Only professional staff,
not support or temporary staff and excluding
partners as they are not
employees. Bonuses not
included in this calculation.
Anti-Corruption
DMA
G4-SO3
Total number and percentage of operations assessed for risks related to corruption and the
significant risks identified.
G4-SO4
Communication and training on anti-corruption policies and procedures.
G4-SO5
Confirmed incidents of corruption and actions taken.
22-23,
27, 37,
51-52, 54,
113-116,
129
Stakeholders and materiality (part of
Integrity), Management approach, Our
strategy and achievements ('Delivering the
PwC Experience'), Risk factors, Governance
and remuneration, Framework for our quality
and risk management policies (see also under
'Other measures’), Scope of this Annual
Report (part of Integrity)
116
management policies
37, 112
Our strategy and achievements ('Delivering
the PwC Experience'), Code of Conduct and
complaints procedure
55
Product and Service Labeling
DMA
Within scope
Outside scope
23-24, 27,
46, 51-52,
129
Stakeholders and materiality (part of Client
satisfaction), Stakeholder approach, Our
strategy and achievements ('Taking the
opportunities the market offers us') Risk
factors, Scope of this Annual Report
(part of Client satisfaction)
GRI table 4.0
GRI
136
Contents
Foreword
Key statistics
NR
Page
Aspect
Not included
G4-PR3
Type of product and service information required by the organization’s procedures for
product and service information and labeling, and percentage of significant product and
service categories subject to such information equirements.
Not material
G4-PR4
Total number of incidents of non-compliance with regulations and voluntary codes
concerning product and service information and labeling, by type of outcomes.
Not material
G4-PR5
Results of surveys measuring customer satisfaction.
Key statistics, Our strategy and
achievements (‘Taking the opportunities
the market offers us')
7, 46
Scope*
Appendices
External Assurance
Professional Services
Compliance
DMA
G4-PR9
Monetary value of significant fines for non-compliance with laws and regulations concerning
the provision and use of products and services.
23-24, 27,
39-40,
51-52, 125
Stakeholders and materiality (part of Quality
and Integrity), Management approach, Our
strategy ('Building on the quality of our
service delivery' ), Risk factors, Governance
and remuneration, Framework for our quality
and risk management policies, Scope of this
Annual Report (part of Quality and Integrity)
39, 105,
106, 107,
110-111,
119
Our strategy and achievements ('Building on
the quality of our service delivery')
Aspects that are less material, but regarding which PwC voluntarily reports a number of GRI indicators in order to continue to monitor progress
Employment
Key statistics, PwC in the Netherlands, Our
strategy and achievements ('Building on the
quality of our service delivery' and ‘Delivering
the PwC Experience’), Breakdown of our
organisation
G4-LA1
Total number and rates of new employee hires and employee turnover by age group, gender
and region.
G4-LA2
Benefits provided to full-time employees that are not provided to temporary or part- time
employees, by significant locations of operation.
G4-LA3
Return to work and retention rates after parental leave, by gender.
G4-SO1
Percentage of operations with implemented local community engagement, impact
assesments and development programs.
G4-PR8
Total number of substantiated complaints regarding breaches of customer privacy and
losses of customer data.
G4-EN3
Energy consumption within the organization .
117-118
PwC NL - All offices
G4-EN6
Reduction of energy consumption.
117-118
8, 20, 31,
39, 37, 119
Not applicable
(‘Delivering the PwC Experience’
39
Local Communities
40-41,
101-102
Our strategy and achievements, Interview:
‘Entrepreneurship with social focus'
No percentage - qualitative
description
Privacy
Our strategy ('Building on the quality
of our service delivery'
34
Energy
Within scope
Outside scope
GRI table 4.0
GRI
137
Contents
Foreword
Key statistics
NR
Page
Aspect
Not included
Scope*
Appendices
External Assurance
Emissions
G4-EN15
Directe emissies van broeikasgassen (Scope 1).
G4-EN16
Energie indirecte emissies van broeikasgassen (Scope 2).
G4-EN17
Andere indirecte emissies van broeikasgassen (Scope 3).
G4-EN19
Vermindering van de emissies van broeikasgassen.
G4-EN23
Totaalgewicht van afval naar type en verwijderingsmethode.
118
118
PwC NL - All offices:
Air travel (PwC NL all), Cars (all who have
a lease car, excluding
partners), Train travel (all)
We report
no Scope 3
emissions
118
117-118
Our sustainability policies (only paper)
Transport
G4-EN30
Significante milieugevolgen van het vervoer van medewerkers en van het transport van
producten en andere goederen en materialen die worden gebruikt voor de operationele
activiteiten van de organisatie.
118
Other material aspects that PwC reports which are not part of the GRI-standard Not
applicable
Number of files reviewed
33
Our strategy and achievements ('Building on
the quality of our service delivery')
Not
applicable
Mobility numbers 48
('Transforming our organisation')
Not
applicable
Results of the People Survey
32
('Building on the quality of our service
delivery')
Not
applicable
Participants in the management development programmes
38
('Delivering the PwC Experience')
Within scope
Outside scope
PwC NL –
From manager level
GRI table 4.0
GRI
138
Contents
Foreword
Key statistics
Appendices
Glossary
General meeting (GM)The meeting of the PwC partners who, via their partner BVs, are formally
the members of Coöperatie PricewaterhouseCoopers Nederland U.A.
AFMThe Netherlands Authority for the Financial Markets, the external
independent body responsible for the supervision of financial institutions
and of audit firms with a PIE licence
BCCBusiness Conduct Committee, to which staff refer if they note instances
or suspicions of professional misconduct
BMG&D‘Beoordeling, Mapping Goalsetting en Development’ (Evaluation,
Mapping, Goal setting & Development), the PwC process surrounding the
evaluation and remuneration of partners and directors
BU Business Unit, the sub-units of the Assurance, Tax & HRS and Advisory
LoSs, determined on the basis of geography and/or professionalism
specialism
CAD Country Admission Committee, the body that advises the SB on the
appointment of new partners and directors
CEO Chief Executive Officer, the Chair of the Board of Management
CFO Chief Financial Officer, the member of the BoM tasked with all financial
matters
COO Chief Operating Officer, the member of the BoM tasked with the
operational aspects of the business
Compliance Compliance with all legal, regulatory and other requirements and
standards
Compliance Officer The officer responsible for overseeing compliance with all legal, regulatory
and other requirements and standards
CR Corporate Responsibility, doing business on a sustainable basis that
reflects the interests of society, employees and the environment ECR Engagement Compliance Review, internal reviews carried out by the
global network into the quality of client engagements
EU&M The industry group, Energy, Utility & Mining,
FS
The industry group, Financial Services
GRIGlobal Reporting Initiative, the organisation that is responsible for the
ongoing development of reporting standards for non-financial information
HCHuman Capital, the term used for the department or persons responsible
for PwC’s staffing policies and the implementation thereof
HRS Human Resource Services, our service provision in the areas, amongst
others, of pensions, remuneration structures and international deployment
Industry/Industry group One of the eight groups to which all professional staff are assigned, each
focussing on a specific market sector or segment
IP The industry group Industrial Products
IAD Internal Audit Department
IIRC International Integrated Reporting Council, the International organisation,
comprising standard setters, investors, companies, auditors and NGOs,
that is responsible for the promotion and development of the framework
for integrated reporting
Integrated reportingThe reporting format that addresses the financial and non-financial value,
to a wide range of stakeholders, of a business or an organisation
KPIKey Performance Indicator, a measurable variable that provides insight
into progress on meeting objectives
L&DLearning and Development, the department within PwC that develops and
manages the training and management development programmes
Partner CouncilThe organisation that represents the collective interests of the members
of Coöperatie PricewaterhouseCoopers Nederland U.A. (the partner BVs)
and provides advice, either on request or on its own initiative, to the BoM
on issues to be submitted to the GM
Local Oversight Board The internal supervisory body, comprising partners, which has become
the Partner Council since the installation of the Supervisory Board
LoSLine of Service, one of three divisions in which PwC offers and delivers its
services: Assurance, Tax & HRS and Advisory
NBA
The Netherlands Institute of Chartered Accountants
PIEPublic Interest Entity, an organisations that, because of its scope or role in
society, impacts a wide range of stakeholder groups (for instance, listed
companies, insurers and financial institutions) and for the audit of which
audit firms are required to have a licence from the AFM
PCPrivate Companies, the PwC sector group that focuses on unlisted
companies, including family businesses
PwC EuropeThe collaborative association of the four PwC European member firms in
Germany, Austria, the Netherlands and Belgium
PS: The industry group Public Sector
Q&RQuality & Risk, a person or department responsible for quality and risk
management.
R& C
The industry group Retail & Consumer
T&L The industry group Transport & Logistics
TMT
The industry group Technology, Media & Telecom
Wft‘Wet op het financieel toezicht’ (the Act on Financial Supervision), which
sets the legal parameters for the solidity and behaviour of financial
enterprises and regulates supervision of the financial sector in the
Netherlands
Wta‘Wet toezicht accountantsorganisaties’ (the Law on the Supervision of
Audit Firms), which regulates the external supervision (by the AFM) of
audit firms
Glossary
GRI
139
Contents
Foreword
Key statistics
Appendices
Acknowledgements
Board of Management/headquarters Thomas R. Malthusstraat 5
1066 JR Amsterdam
Editorial address
PricewaterhouseCoopers B.V.
Marketing department PO box 90351, 1006 BJ Amsterdam
+31 (0)88 792 72 23
http://www.pwc.nl/nl/onze-organisatie/
feiten-en-cijfers.jhtml
Concept, design and production
Photography
For more information
Marketing department
Global brandsite PwC
Bastiaan Heus, Jean-Pierre Jans, Friso Spoelstra,
Manon van der Zwaal
Meint Waterlander
Spokesperson for the Board of Management
+31 (0)88 792 70 00
E-mail: [email protected]
© 2015 PricewaterhouseCoopers B.V. (KvK 34180289). All rights reserved. PwC refers to the Dutch firm and can sometimes
refer to the PwC network. Each affiliated firm is a separate legal entity. For more information, go to www.pwc.com/structure.
The original Annual Report was prepared in the Dutch language. This documentation is a translation of the original Annual Report.
If there are differences between the English and the Dutch versions, the latter shall prevail.
GRI
140

PwC Annual Report 2014/2015

Transcription

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