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Global review
2015
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Chairman and CEOs letter
4
Global disruptive forces
Entrepreneurship 12Globalization 16Urbanization 20Natural resources 24Health care 28Digital 32
Adapting to a world in motion
Talent 38Corporate responsibility 42Our service lines 46
EY Global review 2015
EY at a glance
2
Facts and gures
Chairman and CEOs Q
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EY at a glanceUnder our Vision 2020 plans we are explicit about our purpose ofbuilding a better working world, and this has given us great momentumboth inside and outside the organization. It has helped us engage withour clients and guide our successful work on their complex issues; it hasalso helped us attract, retain and motivate our people. We are proud ofthis years results, which saw fast-paced growth across all of our servicelines and in each geographic area.
Service line growth
2015 highlights
Growth
Double-digit growth in localcurrency terms, to US$28.7b.
Headcount
More people in member rmsthan ever before.
Emerging markets
Percentage increasein revenue.
12.3% 212,00011.6%
Assurance8.1%US$11.3b
Tax
10.3%US$7.5b
Advisory17.6%US$7.3b
TAS15.5%US$2.5b
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Area growth
Supporting our communities
Number of volunteering hours tocommunity projects worldwide.
Gender balance
Up from 26% last year, the percentageof new EY partnerranked professionalswho are women.
Most attractive employer
Universumranking forthird year running.
31% Top 3 350,000
Americas12.3%US$12.7b
EMEIA
11.6%US$11.8b
Asia-Pacic11.2%US$3.1b
Japan4.6%US$1.0b
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Chairman and CEOs letter
Asking better
questionsEY is committed to building a better working world.The insights and quality services we deliver helpbuild trust and condence in the capital markets andin economies the world over. We develop outstandingleaders who work together to deliver on our promiseto all our stakeholders. In so doing, we play a critical
role in building a better working world for our people,for our clients and for our communities.
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WatchSee what a better working wlooks like, and how were briit to life:ey.com/globalreview
WatchMark talks about the growthachieved across our serviceand geographies in 2015:ey.com/globalreview
Follow Mark on Twitter@Mark_Weinberger
Mark A. WeinbergerEY Global Chairman and CEO
Building a better working world starts by askingbetter questions: questions that lie at the heartof all of our services and that unlock new solutionsto some of todays most pressing challenges.
These challenges center on sixmajor trends entrepreneurship,globalization, urbanization, naturalresources, health care, digital that are disrupting and reshapingthe world.
For our clients, these trendsmean major adjustments totheir strategies; and new thinkingabout issues such as innovation,
competition, transparency,cybersecurity and data privacy.
These trends also affect us,including whom we recruit andwhere we invest. We look to attracta diverse group of women and menwho are curious and excited aboutthe possibilities a changing worldpresents; who will bring new ideasto the table to help our clientsanticipate and seize opportunities.
Over the coming years we willcontinue to invest in the emergingmarkets, in technology and in newservices that reect an economythat is more global than ever.
Our understanding of our clientsissues, our targeted investments,and our commitment to deliveringexceptional client service throughthe highestperforming teamsled to a very strong year for EYin 2015.
Im proud of our results and thework that we do helping businessesand governments address the major,
inter-connected trends that aredriving all of our futures. We dontclaim to have a crystal ball. But wedo believe in the importance ofthinking critically, objectively andindependently, and asking betterquestions because betterquestions lead to better answers.These better answers help ourclients operate more efciently,manage risk, foster growth andinspire condence, and, ultimately,lead to a better working world.
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In conversation with Mark WeinbergerEY Global Chairman and CEO
How would you describe thecurrent business environment?
Id sum it up as uncertain, fragile and
fragmented. Theres a lot of geopolitical,
economic and regulatory uncertainty
today and, as a result, economic growth
in many parts of the world is fragile.
This fragile growth has led to fragmentation
around monetary policy, for example,
where the worlds biggest central banksare going in different directions. This will
likely have a destabilizing effect on world
currencies for some time. Energy prices
have also caused fragmentation, as they
affect the economies of energy importers
and exporters in very different ways.
An uncertain, fragile and fragmented
business environment not only tests global
businesses, but also means governments
start looking inward when crafting their
economic policies, becoming more
concerned with protecting borders
than promoting trade.There are reasons to be optimistic for the
future however. Progress is being made
on two major multilateral trade deals:
the Trans-Pacic Partnership, and the
Transatlantic Trade and Investment
Partnership. Together, they would open
markets in countries that make up two
thirds of the worlds GDP. And the trends
that are transforming our world, such as
globalization, are creating new businesses
and opportunities. They have the potential
to drive global growth in a big way.
The emerging markets stillattract attention, but oftenbecause of their perceivedvolatility. Whats your view?
The emerging markets are a good
example of how important it is to look
beyond todays headlines and really
consider long-term trends.
What a short-term perspective misses
is that the emerging markets representgreat long-term potential. Ten years ago,
there were fewer than 50 Fortune 500
companies headquartered in emerging
markets. Today, that number is 157.
In addition, 90% of the worlds young
people the people who will drive so
much of our future prosperity live in
the emerging markets.
The emerging markets hold some of
tomorrows biggest opportunities.
Thats the advice we give our clients,
and thats why were continuing to invest
in our own emerging-market practices.
Many countries continue toscrutinize how corporations handletheir tax obligations are businessesprepared for this level of scrutiny?
Tax authorities continue to be more assertive
in examining cross-border activities, and
the volume of tax information exchange
agreements has increased substantially
in recent years. Companies should now
assume that tax data reported in one
country will be available to tax administratorsin others, particularly given the advent of
the Organisation for Economic Co-operation
and Development (OECD) project to address
Base Erosion and Prot Shifting (BEPS).
The pace, volume and complexity of tax
change mean that businesses need to be
well informed about tax policy developments
and trends not just in the markets they are
already in, but also the markets they intend
to enter in the future. Businesses must also
be prepared to invest more in the tax function
in terms of technology, for data extraction,
analysis and reporting capabilities; as wellas tax talent, to support the business
in providing the information required to
comply with new tax transparency and
reporting regulations and mitigate
increased tax risk.
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How is the balance shifting amongthe services EY offers?
We strongly believe that a multi-disciplinary
model, where professionals from different
disciplines gain a wide range of insights
through the different services they provide,
makes us a better organization, helps us
provide that broad range of insight to our
clients and enhances the quality of all of
our services. Today, all of our service lines
Advisory, Assurance, Transaction Advisory
Services (TAS) and Tax are growing in
response to client demand for them.
Assurance remains the backbone of our
offerings, however. Its the largest service
line today, in terms of both revenue and
headcount, and will remain so for years
to come.
Investor condence is the foundation of
todays global economy, and the audits we
provide play a vital role in enabling that
condence. Thats why were continually
enhancing our Assurance services andinvesting in our ability to deliver high-
quality audits today and thinking about,
and planning for, what a high-quality
audit tomorrow will require.
We continuously look for opportunities
to improve quality across our service lines.
We are acutely aware of our important
role in serving the public interest,
promoting transparency and supporting
investor condence and economic growth.
We remain committed to building strong
relationships with our clients, regulators
and other stakeholders through the delivery
of high-quality service.
Across our service lines, we invest in
recruiting, training and retaining the
best people in their respective disciplines.
We also invest in strong Quality and
Assurance Professional Practice functions
in our geographies to advise, support and
enable our people, and to implement our
quality initiatives, to a consistently high
standard around the world.
Our Quality and Assurance Professional
Practice teams advise on engagementsin real-time, and operate our global
quality review program, which evaluates
engagements for quality as well as
compliance with EY policies and professional
standards, and takes corrective action
where necessary. These teams work closely
with our global Risk Management function,
which has responsibility for ethics, policy
compliance, conicts of interest and
independence matters. Risk Management
also provides global tools and processes
that support our people in evaluating
accepting and serving the right client
with the right services, in accordance
with our commitment to objectivity
and independence.
In Assurance, we are continually wor
to improve audit quality and the consis
of our audit execution. It is central toour reputation and our brand, and also
necessary if we want to achieve our ov
growth ambitions.
In 2015, as part of the Assurance Sust
Audit Quality (SAQ) strategic initiativ
new role of quality enablement leade
created globally and in the regions to
support and enable improved audit q
Technology and training are also ess
elements of providing high-quality se
and we invest in both. In Assurance f
example, in 2015, we commenced th
global deployment of our new audit tresulting from our US$400 million
investment in our audit transformati
initiative. These tools help us to impr
quality by focusing on risk and by bet
managing complex audits. Last year
our Assurance professionals collectiv
undertook about ve million hours of
training, all of it focused on improving
We remain committed to building strongrelationships with our clients, regulatorsand other stakeholders through the deliveryof high-quality service.
What is EY doing to improve the quality of its services?
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How did EY perform this year?
2015 was a very strong year for EY we
have more people, helping more clients, in
more places than ever before. Our headcount
grew past 200,000 people, we promoted
more than 28,000 people around the world
and 753 of our people became partners
in our member rms. Women make up
nearly one-third of this partner group and
nearly one-third of the group are based
in the emerging markets. Along with our
618 direct-admit partners, this represents
our largest annual partner class ever.
Among a host of awards, for the third year
running we were named among the top
three employers globally in Universums
Worlds Most Attractive Employers for
business students. We were also named, for
the second time, to the 25 Best Multinational
Workplaces by the Great Place to Work
Institute. And in a survey of our own people,
84% of us said we were proud to work here,
which is a best-in-class result for our sector.
We continued to invest in our organization
in our services, our people, acquisitions,
in technology and innovation which
enabled us to remain close to our clients
issues and respond quickly to market
changes. As a result we saw combined
revenue grow to US$28.7b, an increase of
11.6% in local currency terms the fastest
revenue growth since 2008.
Im proud of our results. They reect the
strength of our brand and reputation in
the market, and the commitment and
energy that our people put in every day
to accomplish great results for our clients,and for our wider community.
What are the major investmentsthat EY is making?
We invest heavily in people, and in FY15 EY
member rms hired about 60,000 full-time
employees around the world or about one
person every nine minutes, 365 days a year.
Our headcount is now at an all-time high
of 212,000 people, all rallying around our
common purpose of building a better
working world.
In FY15 we spent US$500 million on training
our people, and delivered 8.2 million hours
of formal learning. Sector knowledge is a
particularly important investment priority
for us. Were bringing on more people with
specic sector expertise and building more
sector knowledge into all training, especially
in the emerging markets.
Were also driving growth through strategic
acquisitions in FY15 EY rms closed 32
deals globally to bolster services we offer
including cybersecurity and analytics.
Were also investing in strategic allianceswith organizations such as LinkedIn.
With this exciting relationship were working
together to help businesses develop deeper
customer relationships by using technology,
social networks and data analytics.
Innovation is also vital. That means
investing where we see future growth,
such as our US$500 million investment in
data analytics. But innovation is more than
new services or technology. Its thinking
of new ways to work with clients and how
we work with each other. To that end weve
appointed a new EY Global Chief Innovation
Ofcer to help drive all of our effortsaround innovation through our business.
Were continuing to invest in the emerging
markets, despite the volatility those markets
have been experiencing, because they
are an important and growing part of
our business.
Finally, each of our service lines also has a
detailed investment plan. In Assurance that
includes a multi-million dollar, multi-year
investment in audit tools and processes as
part of our audit transformation initiative,
to deliver on our goal to provide the highest
quality audits in the profession.
The business world is changing at anever-faster pace. What anchors EY?
Our values remain the fundamental beliefs
of our organization and guide the actions and
behaviors of each one of us. They inuence
the way we work and interact with each
other, as well as the way we serve our clients
and engage with all our stakeholders.
Our values dene who we are: People who
demonstrate integrity, respect and teaming.People with energy, enthusiasm and the
courage to lead. People who build
relationships based on doing the right thing.
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Our great people culture, our hugely talentedprofessionals, our shared purpose and values,all make me tremendously proud to be partof this organization
EY talks a lot about its purpose why is purpose so important?
At EY our purpose, Building a better
working world, provides the deeper
meaning behind the daily activities of
our 212,000 people in member rms
in more than 150 countries.
We start by asking better questions
because the better the question, the better
the answer, the better the world works.Building a better working world is part of
everything we do. We believe that every
audit, every tax return, every advisory
opportunity, every interaction with a client
or colleague should make the working
world better than it was before.
Purpose is important because when you
explain to people why and provide them
with the context, you get better results
in terms of greater commitment and greater
motivation leading to better results for
clients than if you just tell them the what.
For our people, working as part of anorganization where they feel they can not
only have a fullling and rewarding career,
but also have a positive impact on the world
is very important especially so for the
two-thirds of our people who belong to
Generation Y.
In order for purpose to work, it has to be
authentic to the organization and permeate
every part of the business. All of our people
have to understand what it means, why we
are talking about it and how they contribute
to it every day. By fullling our purpose, we
aim to leave a lasting legacy for our clients,people and society as a whole.
What do you want your legacyto be?
We all play many different roles and
leave different legacies. For me, one
the most important legacies I hope to
is to demonstrate that you can be a g
business leader and colleague, as we
a good father, husband, brother, son
friend. I always advise our young rec
that as much as they focus on their s
the conference table, their seat at the
table is just as important. Its importan
balance work and family, and I hope I
leading by example.
In addition, like all my colleagues at E
I want to leave our organization stron
than when I joined. Our great people
culture, our hugely talented professi
our shared purpose and values, all m
me tremendously proud to be part of
organization. I want everybody who w
here to have the same sense of pride
I do, working for this great organizati
New hires
60,000EY rms recruited 60,000 people one person every nine minutes.
Headcount
212,000Our headcount is now at an all-timehigh of 212,000 people, all rallyingaround our common purpose ofbuilding a better working world.
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Globaldisruptive
forces
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24
16
28
20
32
12
24
16
28
20
32
Global review 2
Better questions lead to better answersaround the inter-connected trends thatare having a major impact on industries,businesses, societies and individuals.
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Entrepreneurship
12 Global review 2015
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Are entrepreneurs
born or made?Many entrepreneurs share certain traits, but thesecharacteristics alone wont guarantee a successfulventure. Entrepreneurs also need an ecosystem,supported by governments and businesses, gearedto their needs.
Read more here:ey.com/megatrends #BetterQuestions
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The growth and prosperity of all economies dependon entrepreneurial activity. Entrepreneurs are thelifeblood of economic growth: they provide a sourceof income and employment for themselves and forothers; produce new and innovative products andservices; and encourage creativity and competition.
Increasingly, the face of entrepreneurship ischanging. With youth unemployment at an all timehigh, its not surprising that young people are turningto entrepreneurship to create opportunities forthemselves. In a Universumsurvey of 16,000 youngpeople from 42 countries, 70% of respondents sawthemselves as entrepreneurs.
But while many of these entrepreneurs share certaintraits they are digital natives, having grown up with
the internet, they have the ability to see opportunitywhere others see disruption, and are comfortableaccepting calculated risk these characteristics alonewont guarantee a successful entrepreneurial venture.
Rather, governments and businesses need to worktogether to create an ecosystem which includes thefollowing ve pillars, in order to help entrepreneurslaunch and grow their enterprises. An entrepreneurialecosystem should include:
Helping companiesaccelerate growth
For over three decades, wevebeen helping companies accelerategrowth. We work with entrepreneursand leaders of the worlds fastest-growing companies, combiningour insights and experience, ourglobal resources and our industrycapabilities to help them developunique and groundbreakingapproaches to achieve theirmarket leadership aspirations.
EY insightFor more information visit:ey.com/acceleratinggrowth
FollowAnnette Kimmitt, EY Global MiddleMarket Leader and Asia-PacicAccounts Leader:
@AnnetteKimmitt
1Greater choice of funding,for example, a new class ofloan for small businesses
and entrepreneurial rms.
4Targeted incentives forsuccess, such as tax benetsfor investing in start-ups.
2Mentoring and broader support,because capital without mentorshipis lost capital; mentorship and
nancial education should bea condition of funding.
5Less red tape, to ease theadministrative burden.
3A change in culture,to one that promotesentrepreneurs ascrucial job creators.
EY insightRead more about ourrecommendations onentrepreneurial ecosystems at:ey.com/lostgen
Today EY rms audit more IPOcompanies, VC-backed companies,leading family businesses and newentrants to the Global Forbes 2000than the other members of theBig Four.
EY insightFor more information about howwe support entrepreneurs visit:ey.com/entrepreneurship
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Jones Energy, Inc. is an independent
oil and gas company with sites in Texas
and Oklahoma. With family roots in the
petroleum industry dating back to the
1920s, Jonny is a third-generation
explorationist.
Over the years EY has supported us on
a number of projects. For example, they
helped us develop our tax strategy in the
lead-up to our IPO. In fact, had we notbeen able to come up with this particular
strategy, we probably would not have
been able to go public. And since weve
gone public, EY has supported our
different acquisitions, accounting
and risk management strategies.
Most recently Jonny and his entire
management team used EY Growth
Navigator to help plan for future growth.
These sessions give users the opportunity
to step back from their business, get a fresh
perspective on best practices and use these
insights to determine next steps.
The EY Growth Navigator sessions really
challenged our own perceptions about
whats critical to our business, our strengths
and weaknesses, and what strategies we
can implement now that will have thebiggest impact on our business.
As an entrepreneur, I want to create
sustainable value. EY gets that they
understand entrepreneurs, know whats
critical to my business and industry, and
provide long-term growth strategies that
t our company. EY asks better questions
that lead to better ideas and answers.
Accelerating growth
We started working with EY and its tax teams over15 years ago when we were primarily a fast-expandingfamily business. Today were listed on the NYSE andEYs played an important part in our growth journey,says Jonny Jones, CEO and Chairman of Jones Energy.
Creating a win-win
As part of EYs commitmenthelping clients accelerate gwe have developed specicinitiatives to help guide todamost dynamic and innovativstart-ups into the market-lecompanies of tomorrow, anconnect them with our ecosand network.
One such initiative is the EY SChallenge, an open innovaprogram for tech start-ups, receive guidance and suppofrom senior EY professionalEY clients.
The objective is to workcollaboratively to help nd cases in other words, howend-user could use the starttechnologies to accomplish particular goal. What we wto do was create a win-win the start-ups grow, by helpinwin more business; and helpclients benet from the inno
solutions the start-ups canprovide, says Jamie Qiu, EYStartup Challenge foundeprogram lead in the UK.
The success of the EY StartChallenge means that itsexpanding to other marketsMervyn Gerarde Maistry is lthe program in Germany. HeBerlin boasts a vibrant stascene with a unique mix of fart, creative industries andtechnology. A new start-upwith radical ideas and innovdriven by the possibilities of
technology is founded everyminutes. These Berlin-basecompanies are attracting noonly local, but also increasininternational, investors to thof US$2.2b in the past 12 mThis investment boom looksto continue for the German
Were excited to be helpingcompanies, whether they arseed nancing phase or estamove up to the next level.
EY insightFor more information visit:ey.com/startupchallenge
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126 million women are launching or operatbrand new businesses in 67 economiesaround the world. However, access to nanremains a hurdle for female entrepreneurs
Open for business
EY insightFind out how ourEntrepreneurialWinning Women program helpshigh-potential women entrepreneursscale their businesses.
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47% of entrepreneurs expect to increase theirtotal global workforce this year in contrast tothe hiring plans of senior executives at largecorporates, at 29%.
Going up
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Rapid-growth markets are beginning to seetheir fair share of high impact entrepreneuRecent EY World Entrepreneur Of The Yearwinners have come from India, Kenya,Singapore, and China.
Entrepreneurial impact
EY insightThere are Entrepreneur Of The Yearprograms in more than 145 cities andmore than 60 countries. Almost halfof NASDAQ 100 listed companiesare run or were founded by formerEntrepreneur Of The Year winners.
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Alternative sources of funding, such ascrowdfunding and micronance, are gainingtraction particularly in the emerging marketswhere the crowdfunding market was worthUS$5b in 2013 and could rise to US$96bby 2025.
Jump start
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Where will the
21st centurySilk Road run?Asia, with China at its heart, will remain at thecenter of the worlds fastestgrowing trade routes.
Read more here:ey.com/megatrends #BetterQuestions
Globalization
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One Belt, One Road might seem a strange namefor Chinas expansive foreign and economic strategy.But it represents the countrys vision for a modern-day Silk Road, with the belt referring to the landtrade route linking central Asia, Russia and Europe,and the road referring to a maritime route via thewestern Pacic and Indian Oceans.
Asia, with China at its heart, will remain at thecenter of the worlds fastest-growing trade routes Asia-Middle East, Asia-Latin America and Asia-Africa.The Middle East and Africa will become new tradehubs, driven by economic integration with Asia,proximity to Europe, capacity for low-costproduction and growing domestic markets.
Thanks in no small part to this expansive Silk Road
network, it is predicted that by 2030 rapid-growthmarkets will generate 63% of global GDP amounting to US$223 trillion up from 38% today.
They will be hotbeds of innovation, with Asia as a globalresearch and development hub. The war for talent willbecome increasingly erce, and the most successfulbusinesses will have the most diverse workforces.
Organizations with global ambitions must preparefor this shift in economic power from north to southand from west to east. It has the potential to affecteverything from supply chain management to choiceof HQ location to brand positioning to recruitment.
Growing beyond borders
Industrial and Commercial Bank ofChina (ICBC), the largest bank in theworld by assets, recently completedthe acquisition of a 60% stake inStandard Bank plc the London-headquartered global marketsarm of Standard Bank Group (SBG).
The landmark deal, whichrepresents the rst foray into theUK wholesale banking market bya Chinese bank, was a complexcarve-out involving legal entitiesin the Americas, EMEIA and Asia-Pacic. EY teams worked with thevendor (SBG) and target (StandardBank plc) during the eight monthsprior to deal completion, identifyingthe documentation and governancefor the numerous inter-companyand intra-group service levelagreements required, so thateffective provision of servicescould continue post-completion.
Japanese trading house ITOCHUCorporation and Thailands CharoenPokphand Group have announceda joint investment of US$10.4b instate-controlled Citic Ltd, Chinaslargest conglomerate. This is thelargest ever foreign investmentdeal to date in a Chinese-backedstate rm.
The three parties have alsoentered into a strategic cooperationagreement to work together acrosssectors and countries, bringingmutual opportunities for closecollaboration to three of Asiaslargest conglomerates.
Satoshi Sekine, the Japan PrivateEquity leader who worked on thedeal with ITOCHU, said: This alliancebetween three of Asias biggest andmost powerful conglomerates willprovide a valuable opportunityto complement and expand theirbusinesses in Asia and the restof the world.
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Out of Africa:Rendani Neluvhalaniheads to the east
The EY Global Tax DeskNetwork (GTDN) is staffed bprofessionals, like me, in merms who provide advice anguidance to clients on investin their jurisdictions.
In 2013, in response to the g
demands of clients in Asia, Ifrom my home city of Johanin South Africa, to join the taof EY China in Beijing, to adclients in the AsiaPacic reand particularly in China anMy colleagues on the desk inEY professionals from Braziand Russia. I am the rst pocontact, operating in their tzone, for Asian investors loostart or expand operations in
I provide lots of technical aMy role is to help guide locathrough the complex tax issthey face when engaged in trAfrica, including: global expbusiness restructuring or opeimprovement of a business.
Although this is my primaryit has become so much morethis. Im a Tax professional, Beijing I really feel Im repreEY Africa across all businesAnd in fact it works the otheas well I have become an exof the local EY member rmteams in Africa too. So busindevelopment and relationshmanagement have become of my role as well.
The combination of real-timsupport and in-depth, broadexpertise is helping the GTDto bridge the gap for investobetween countries, contineand regions.
EY insightFind out more about our tax sey.com/tax
In recent years, developed countries
have had lower asset prices due to the
European debt crisis, while Chinese
enterprises investments have shifted
to brand, technology and other high-end
areas, making Europe and the US attractive
destinations for Chinese investors
looking for mergers and acquisitions.
In the rst half of 2015, Chinas outward
foreign direct investment totalled US$56b,
a year-on-year increase of 29.2%. During
these six months, the roll-out of the Chinese
governments 'One Belt, One Road initiative
and the implementation of a series ofreform measures have encouraged more
Chinese enterprises to go out into the
global market.
At EY, our China Overseas Investment
Network, comprising multilingual
professionals in member rms in 65
countries, is providing consistent and
coordinated services to such enterprises, as
well as businesses looking to invest in China.
Were helping to improve their ability
to establish and implement strategic
planning, and then to integrate
internationalization into their long-term
development goals, conduct an assessment
of their competitiveness, and consider the
external environment and their practical
needs in order to make the right moveat the right time. Experience tells us
that with this kind of approach and plan,
companies can step out onto the new
Silk Road with condence.
China is on the verge of becoming a net exporter ofcapital, which will have an important and far-reachinginuence on the movement of global capital, explainsLoletta Chow, EY Global Leader, China Overseas
Investment Network.
With the gradual maturing of Chinas outboundinvestment, the focus has shifted from neighboringcountries to further aeld. Today, the footprint ofChinese investors covers 184 countries and regions,including resource-rich developing countries suchas Brazil and South Africa, and developed countriessuch as the United States and the UK.
Chinasforeign direct investments
US$56bChinas outward foreign directinvestment in the rst half of 2015.
29.2%Year-on-year increase.
Loletta ChowEY Global Leader, China OverseasInvestment Network
All roads lead out of China
EY insightFind out more:ey.com/emergingmarketsey.com/COIN
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By 2030, rapid-growth markets will genera63% of global GDP amounting to US$223trillion up from 38% today.
Charging up GDP
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Two-thirds of the global middle class will beAsia-Pacic residents by 2030, up from justunder one-third in 2009. Global and home-grown companies will increasingly competeto meet the needs of these newly empoweredand diverse consumer bases.
Going East
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Asian countries have grown their share ofglobal spending on R&D from 33% to 40%in the past ve years. Southeast Asia hasbecome the worlds largest region for newresearch investments a trend expectedto continue through the next decade.
Investing in research
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China has overtaken the US in the numberof doctorates awarded in science andengineering; it also has around 1.6 millionresearchers and academics and more than 30million students enrolled in higher education.One of the outcomes of this knowledge shiftwill be increased innovation in China and theoutsourcing of services to the wealthiestrapid-growth markets.
Home grown
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Can bigger citiesbe better cities?Every week for the next two decades, more than onemillion people are expected to move to a city, placingenormous strain on resources. While many citiesare already smart, they also need to be resilient.
Read more here:ey.com/megatrends #BetterQuestions
Urbanization
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In the past thirty years some 500 million people inChina have moved from the countryside into cities one of the biggest mass migrations the world hasever seen.
This pattern is repeating itself around the world.In Africa, Kinshasa will have seen its populationgrow from 200,000 in 1950 to a projected 20 millionby 2030; Lagos will have over 24 million residentsby that time. Even in mature economies were seeingexpanding urbanization, as more people move toexisting city centers to live and work.
Regardless of location, urbanization is driving demandfor resources and infrastructure food and water,energy and telecommunications, houses and highways.India alone will need to build 12,000 miles of roads and
up to 250 miles of new subway lines each year for thenext two decades.
Many cities are already smart they use technologyand exploit data to make buildings more efcient,reduce energy consumption and waste, and makebetter use of renewable energy thus helping toalleviate some of the challenges around infrastructure.
But cities should also be resilient. That means cityplanners should also ensure that the economic growththat cities generate is inclusive and sustainable, andthat efcient and affordable transport, health andeducation services are built in. Resilient cities arealso able to withstand sudden, threatening eventsas a result of climate change; disease outbreaks;or terrorist attacks.
Local and national governments, along withbusinesses, city planners, environmentalists and
citizens need to work closely together to plan andmanage urbanization effectively. Policies mustincorporate job-creation and investment; innovationand technology; security and governance, in orderto deliver the cities of the future.
The work that we do around thechallenges and opportunities ofurbanization directly supports ourpurpose of building a better workingworld, says Bill Banks, EY GlobalInfrastructure Leader.
We support infrastructureprograms from end to end. We helpclients develop the right strategicapproach, raise capital, improveefciency, manage risk, build
stronger relationships, enhanceaccountability and improvestakeholder condence so thatthey in turn can deliver benetsto their clients and citizens.
Whether advising on job creationor supporting city planners withsmart metering, were helping toimprove living standards throughhealthier, better connected andmore competitive cities for billionsof people.
EY insight
For more information visit:ey.com/infrastructure
Bill Banks
EY Global Infrastructure Leader
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The model railway of the future EY rms work with organizasuch as the Rockefeller Fouwhose many initiatives incluResilient Cities to help morebuild resilience to the physicsocial and economic challenthat are a growing part of th21st century.
For more information visit:100resilientcities.org
How can technology-enabletransport infrastructure im
the lives of citizens, the opeof businesses and efforts to investment? Our Urban MobIndicator uses data analyticassess and dene the ultimapurpose of mobility in a city
EY insightFind out more:ey.com/smarttransport
My Work is just one of Network Rails manysuccesses under its ORBIS (Offering Rail
Better Information Services) digitization
program. The aim of ORBIS is to enable the
UKs Victorian-era railway infrastructure
to support the estimated 400 million extra
passenger journeys expected between now
and 2020.
My Work sends out daily job schedules
to all maintenance engineers, according
to location and skills required. The app
uses precise map coordinates so that
workers can nd sites easily and nish
jobs more quickly. Management reportsare sent from the app, including information
such as whether additional maintenance
is needed, thus supporting track safety
even further.
Amanda Clack, Head of EY UK & Ireland
Infrastructure (Advisory) says: The ability
to access the right information on track and
quickly see trends is driving betterdecisions, enabling the teams to be safer
and more agile in how they work.
Tricia Nelson, EY Client Service Partner for
Network Rail in UK & Ireland adds: ORBIS
has really affected the way Network Rail
approach change they are putting the
employees affected by the change at the
center of the conversation and debate,
which ultimately engages not only hearts
and minds, but also makes it much easier to
realize the benets. My Work, one of the rst
apps developed under ORBIS, replaces paper
with automatic work scheduling. We nowhave over four million work orders processed
by My Work.
How do you maintain 20,000 miles of railway trackand keep 7,000 maintenance engineers connected?With an app My Work developed by EY.
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Every week for the next two decades, morethan one million people roughly the populaof Stockholm are expected to move to a cThis growth will fall disproportionally to theFar East. By 2030, 40% of the worlds largecities in the world, in terms of constant-pricGDP, will be in China.
City slickers
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The cost of addressing Africas infrastructuredecit is US$90b every year for the next decade,with spending needed for new investments,such as new highways, as well as maintainingwhat is already there. Infrastructure nancingmust look beyond aid, and governments haveto look at alternative nancing solutions thatare economically feasible.
Gear change
EY insightEYsAfrica attractiveness surveyexplores what it will take to driveinclusive and sustainable growthin Africa.
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Urbanization is driving sector shifts andchanging employment patterns. Lagos, Beand Mumbai are all expected to create mornancial service sector jobs than London fr2013 to 2030; these nancial and businessservice jobs, in turn, will drive the real estaofce sector.
Adding jobs
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The largest urban explosion of young peoplewill be in Africa. But old and new cities both facerisks aging populations can reduce economicgrowth and strain public resources; youngpopulations can drive unrest in countries withhigh unemployment.
Here come the young
EY insightFor more details on how EY istackling youth unemployment visit:
ey.com/youthjobcreation
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Natural resources
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Can growthbe green?According to EYs analysis, Formula E a newracing championship featuring single-seatercars powered exclusively by electricity could
contribute to sales of an additional 77 millionelectric vehicles by 2040 and prevent 900 milliontonnes of CO being released, proving that itspossible to deliver positive change for businessand the environment.
Read more here:ey.com/megatrends #BetterQuestions
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Can growth be green? For FIA (FederationInternationale de lAutomobile) the answer is yes.
It recently launched Formula E a new racingchampionship featuring single-seater cars poweredexclusively by electricity and capable of going morethan 225km/h. Formula E complements Formula 1,which FIA also governs, and is designed to appealto a younger generation of racing fans.
To mark the launch, FIA tasked EY with
analyzing the impact of Formula E and
its contribution to removing the current
barriers affecting the electric vehicle
market such as pricing and technology
and quantifying that in terms of number
of sales.
We found that Formula E could raise
the prole of electric cars and contribute
to sales of an additional 77 million
electric vehicles by 2040 and create
42,000 permanent jobs in the car
industry worldwide.
From an environmental perspective, this
would lead to a reduction in use of four
billion barrels of oil the equivalent of
Japans current consumption over 2.5 years
and prevent 900 million tonnes of C0
being released, the equivalent of Italys
current annual emissions over two years.
Thats not all. Our report also forecast
savings of more than US$25b on healthcare costs and productivity from the
reduction of pollution in cities.
Juan Costa Climent, EY Global Leader for
Climate Change and Sustainability Services
says: Todays business has to meet the
expectations of shareholders who want
assurances that companies are meeting
short-term performance targets against
a long-term backdrop of scarce resources,
new regulations and a different set of
stakeholders who are demanding a more
sustainable approach across the whole
supply chain.
Managing all of this requires a fundamental
re-think of strategy and operations of what
constitutes value beyond a nancial balance
sheet, and how other types of value such
as environmental impact are reported.
And rather than thinking of sustainability
in terms of a cost outlay to ensure
compliance or appease stakeholders,
far-sighted businesses are using
sustainability as an opportunity to innovate
not just to see new ways to save money,
but new ways to view a changing world,
design new products and services and
expand market share, says Juan.
Juan leads a global network of more than
800 Climate Change and Sustainability
Services practitioners subject-matterspecialists including former geologists
and engineers; government ofcials; and
accounting, law and tax professionals to
provide a range of services. These include
non-nancial (sustainability) reporting and
advisory, sustainability strategy, human
rights advisory, sustainable supply chain,
and waste and cost reduction.
EY insightFind out more:ey.com/ccassaformulae.com
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Meeting the challenge of climate change
Urbanization and globalization are helping to createeconomic growth and improve the lives of millions ofpeople around the world.
But these trends are also driving climate change andincreased competition for natural resources. By 2030,freshwater shortages could cause a 30% reduction ingrain production, while global energy demands couldincrease by more than onethird.
Combined with the impact of extreme weather causedby a changing climate, this competition poses signicantrisks for businesses:
Do you know tomorroinvestment rules?
62%Out of a survey of 200 institinvestors, 62% consider nonnancial data to be relevantall sectors.
76%And if a company were to shrisk or history of poor enviroperformance, 76% would retheir investment.
EY insightLearn more about what resiand responsible companies disclosing to help attract caDownload our survey reportTomorrows Investment Rul
2.0 via:ey.com/ccass
EY rms work with regulatogovernments and NGOs tohelp standardize denitionsand approaches to sustainaWe are part of working grouincluding the InternationalIntegrated Reporting Councthe Global Reporting Initiatiand Sustainability AccountiStandards Board.
For more information visit:integratedreporting.orgglobalreporting.orgsasb.org
StrategicFrom distributed power
generation to urban water
recycling, businesses must
innovate to meet the demands
of new environmental challenges.
Companies that are not taking
similar steps to understand
and meet these challenges
risk being left behind.
ComplianceAn increasing number of
international and national
protocols covering labor laws,
anti-bribery, environmental
performance and carbon
emissions mean that companies
face new compliance risks.
ReputationalConsumers, empowered
through social media,
increasingly demand not just
traceability and transparencybut also an ethical stance on
labor and human rights issues.
OperationalFreshwater shortages,
desertication and climate
change will lead to price
shocks and supply disruptions.
Companies must investigate
ways to remain resilient and
anticipate issues before
they become problems.
ReportingDisclosing their sustainability
performance to investors
can be viewed not just as an
obligation but also a source
of competitive advantage, but
this requires strong internal
controls capable of producing
investment-grade information.
Juan Costa ClimentEY Global Climate Change aSustainability Services Lead
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In 2014, 64% of investors consideredmandatory board oversight of non-nanciaperformance reporting as essential orimportant. In 2015 that number hadincreased to 80% of investors.
Growth and sustainability
EY insightFor more information downloadour report, Tomorrows investmentrules 2.0via:ey.com/ccass
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By 2035 there is expected to be a 33% increasein global energy demands; the majority of thisdemand will come from China, India and theMiddle East.
Thirsty
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The number of ultra-deepwater drilling rigs hincreased 22% since 2012. With these advanglobal energy production has begun to shiftaway from traditional suppliers in Eurasia anthe Middle East to suppliers in North AmericAustralia, Brazil and Africa, with the potentiato change trade patterns and the geopoliticabalance of power.
Energy supply
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In 2014, the number of companies settingan internal price for carbon stood at just 150.Another 538 companies now say they willadopt carbon-pricing in the next two years.
Carbon free
EY insightFor more information readour report, Shifting the carbon
pricing debatevia:ey.com/ccass
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Health care
What will it take
to succeed inHealth 2.0?Health care which accounts for 10% of global GDP
is experiencing a once-in-a-lifetime transformation,
where success demands a reimagined approach.
Read more here:
ey.com/megatrends #BetterQuestions
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Rising costs have become increasingly unsustainable,driving health care systems and payers to seek newapproaches that emphasize value.
These pressures are being exacerbated by agingpopulations, increasingly sedentary lifestylesin emerging markets and an imminent chronicdisease epidemic.
Meanwhile, the rapid rise of digital health apps,wearables, big data, analytics and more is enablingreal-time, cost-effective interventions. Companiesbeyond health care are entering the fray, providingnew sources of competition and collaboration.
These trends are driving a once-in-a-lifetimetransformation from sick care by traditional healthcare companies to Health 2.0 a more active
management of health by an increasingly diverseset of players, including entrants from sectorssuch as tech, telecoms, retail and more.
Health insurancefor Health 2.0
To remain relevant in Health 2.0,health insurers will need newbusiness models that are patient-centric, behaviorally driven,grounded in pay-for-performance,and empowered by mobile healthand data analytics.
In 2015, EY launched a new service
Health insurer of the future tohelp clients build a new businessmodel that approaches healthinsurance in a fundamentallydifferent way. This modeltransforms insurance from ashort-term contractual relationshipto a longer-term collaborative oneby laying the foundation for ongoingengagement with customers.
The model is powered by mobile-health (m-health) technologies,which help inuence customerbehavior and also generate valuabledata. It is delivered by a consortiumof health care-related entities including providers, patient groups,m-health companies and retailers that collaborate to improveoutcomes and share success.This model allows the insurer andits partners to create best-in-classhealth data an extremely valuableasset in increasingly outcomes-focused health care systems.
Most importantly, the modelrecognizes that the health insurerof the future will need to be in avery different core business. So far,insurers have been in the businessof pricing and underwriting risk
risk that has been static and,unfortunately, quantied usingrelatively little information.
With this new approach, the insurerwould leapfrog the competition andenter a very different business notjust pricing and underwriting risk,but inuencing and reducing riskas well, and doing so with a muchbetter understanding of customersbehaviors and risk factors.
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These rms were expecting a signicant
portion of their future growth and
revenue to come from health and wellness.
For example SoftBank, the Japanese
telecom giant, and Fitbit, worked together
to bring a subscription-based activity
tracker service to Japanese customers.
Today were seeing similar interest from
technology companies. Their strengths
advanced analytics reporting, cloud and
web-enabled capabilities will become
increasingly critical in the provision of
health care.
Thats because were moving to a world
where diagnosis, decision and prescription
can all be done by an algorithm on a chip.
For example, a physician treating a cancer
patient needs to make several decisions
for which he or she has limited information.
Decisions such as: What tests do I need to
determine the optimal drug cocktail and
what is the upfront cost of these tests?
How can I use those results to pick a course
of treatment and how do I understand the
economics of that decision?
This is far too complicated for an individual
physician to gure out. Whats needed is for
someone to do the calculations and guide
the doctor to the best prescription based
on the patients genotype/phenotype and
other variables. Thats where health care is
headed, thanks in part to major advances
in testing capabilities and analytics.
Of course, these exciting developments in
health care raise crucially important issues
around patient privacy, data ownership,
risks and accountability, not to mention
regulatory approval. If an app is performing
dosage calculations, someone has to be
accountable for the correctness of the
algorithm used.
Shooting for the moo
As an example of how EY is a better working world, we sHealthXL, a unique globalcollaboration that brings tocompanies from across hea payers, providers, manufadigital health start-ups, etc.to tackle some of health carthorniest challenges.
Specically, HealthXL memcollaborate on three moonschallenges: harnessing the of big data; using remotemonitoring to improve outcand enabling behavior chanstem the tide of chronic dise
EY professionals play an actin this effort, helping identifmost promising approachesmentoring young companieall aspects of running a busi
We have also hosted events Boston, Dublin and Melbourproviding opportunities for
network to convene and learthe cutting-edge technologiapproaches being developeby new start-ups.
Find out more:healthxl.org
About EYHealth services
EY Health services include 4member rm professionals wa range of backgrounds: chie
executives of departments oclinicians, hospital administraccountants and policy advThese professionals work cwith colleagues in other sectlife sciences, technology,telecommunications, insuraand consumer products to organizations manage costsand improve efciency, use bdata and analytics to improvservices management, and hdevelop new business model
EY insightFind out more:ey.com/health
The algorithm will see you now
A number of years ago I started seeing a lot ofinterest in health care from large telecom companiesin markets such as India, China and Japan, saysJacques Mulder, EY Global Health Leader.
Jacques MulderEY Global Health Leader
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Over 20,000 health care smartphone appsare available, with more on the way. These aand wirelessly connected medical devices acreating real-time data and enabling real-tiinterventions.
Mobile health
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Social media channels will generate 25,000petabytes of signicant health care data by2020. This data is being analysed to improvethe efciency of everything from drug R&Dto care coordination.
Like, follow, share
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The global mobile health and tness sensomarket will grow at 40% CAGR between 20and 2018.
Increased pulse
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Companies from new sectors are entering thehealth care business. Technology companiesare tackling the challenge of data analyticsand telecom rms are empowering patientsin managing their health.
Branching out
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Digital
Is your businessstrategy t fora digital world?Digital technology isnt merely enhancingtodays businesses. Its driving transformationto a digital future that will be a new, virtuallyunrecognizable world.
Read more here:ey.com/megatrends #BetterQuestions
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The interlacing ripple effects of cloud computing,mobility, big data analytics, social media and theinternet are driving the transformation of businessesworldwide and shaping a new economy whose innerworkings are still hard to predict.
Investing in technologyin EY
Technology is transforming business
models (including revenue models),
customer relationships, sales, marketing
and supply chains.
Simultaneously, digital developments are
replacing unskilled and semi-skilled labor
with robotics and knowledge workers with
articial intelligence. Its exponentially
intensifying competitive dynamics as
companies in all sectors re-examine
their role in value chains and technology
companies blur into every other industry.
Digital is creating more collaborative,
virtual workforces and increasingly exible
ofce congurations. And it has exposed all
aspects of business enterprise to escalating
cyber risks.
Coping with this digital future requires
organizations to develop new skill sets.
And topping the list is agility.
Agility is paramount because the core
challenge is notthat digital transformationwill affect what you sell, how you distribute it
and how you organize the business to support
your operations. The core challenge is that
all those business aspects will be evolving
continuouslyfor the foreseeable future.
Hard-to-anticipate challenges will often
appear such as the still-unanswered
questions around revenue recognition,
taxation and customer privacy resulting from
digital distribution of goods and services.
Another required skill is the ability to make
sense of a rapidly expanding volume and
variety of customer data. Organizations will
gain important advantage if they can derive
real insight by interpreting the data that
emerge from social media, online behavior,
geo-location and direct customer interaction
with products and services. Already, some
businesses are engaging in an ongoing
dance of product development, continuously
evolving in response to customers
observed use of new releases, customer
feedback and collaborative conversations.
EY professionals can help companies
truly realize their new business models,
aligning their operational efciency, capital
requirements and risk proles in support
of transformation and in the process, givingthem greater condence in tting their
business strategy to a digital world.
Technology is an important growthdriver for our own business.
That is why we invest signicantlyin technology internally strengthening our infrastructureand improving our network so that
it is faster, more secure and morestable and externally, in termsof how we work with our clients,and how we can better meet theirneeds. Recently we implementedSkype for Business, and Sharepoint,to improve collaboration andknowledge sharing with our peopleand clients.
Strengthening our global analyticsand big data capabilities is aparticular focus for EY. Our Vision2020 plan explicitly describesanalytics as a key differentiator forEY not only for taking analytics
solutions to market, but also intransforming our existing services.
Recent achievements in thearea of data and analytics includeembedding analytics into all serviceofferings, including in audit, whereanalytics is an integral part of ouraudit transformation initiative,our US$400 million plan to deliverhigh-quality audits now and in thefuture. This year we launchedour audit analytic suite of tools,EY Helix, to enable us to moreefciently and completely examinelarge tranches of client data in anaudit, thereby helping us focus on
higher-risk areas more quickly andcontinuously improve audit quality.
Other achievements this yearalso include hiring more than 500analytics professionals around theworld across all service lines, andacquiring 10 organizations to build,and enhance, our capabilities.
We also formalized eight newstrategic business relationshipswith market leaders in analytics.Our alliance network now includesMicrosoft, IBM, SAP, SAS,Guidewire, Hortonworks andLos Alamos.
In all service lines, harnessingnew technology and innovatingnew solutions gives deeperunderstanding of clientsbusinesses, enables us to morequickly identify risks and issues,and deliver solutions tailoredto their needs.
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EY TechnologyIndustry services
Its in the nature of technolopush into new frontiers. Teccompanies are constantly fawith addressing business quthat have never been asked much less answered.
Thats where EY Technologyservices come in. Since the technology companies emefrom Silicon Valley, weve behelping them answer thesequestions. Our tech clients aalways extending their passadvancing technology into nfrontiers of exploration. Andright there with them, helpinexplore the business ramicof their uncharted territorie
EY Technology Industry serdraw on a global network ofprofessionals from across o
member rms, all sharing dtechnical and industry knowOur high-performing teams diverse, inclusive and borderOur experience helps clientsgrow, manage, protect and,when necessary, transformtheir businesses.
EY insightFor more information visit:ey.com/technology
@EY_Technology
But while printed human hearts may still be
some time in the future, 3D-printed heart
valves and blood vessels are available now.
In other industries, 3D printing is even more
established mining companies on remote
excavation sites, for example, already use
it to print out spare parts.
The benets of 3D printing include cost
savings on inventory, factories and shipping,
as well as speed to market and customization.
However, widespread adoption of this
technology also means disruption on
a massive scale. Manufacturing could
come closer to the end user, attening
supply chains. Prototyping, production,
warehousing and delivery could all be
redened. Logistics could be more about
sending digital designs to a system of
networked printers than about moving
container ships and cargo planes from
one part of the world to another.
The most immediate disruption likely isthe way 3D printing will force changes in tax
rules. Its too early to answer the countless
questions 3D printing will raise. But it is
certainly not too early to start dening
these questions and inuencing the policy
surrounding their answers, notes
Channing Flynn, EY Global Technology
Industry Leader, Tax Services.
3D printing has the potential to transform
every aspect of manufacturing and
distribution, from how goods are sold
to where companies base their operations.
But analyzing the 3D business opportunity
without understanding its tax implications
could severely undermine the anticipated
benets.
We help businesses start planning
now for 3D printing, in order to seize
the opportunities and mitigate the risks.
With 3D printing, its important for
organizations to keep their tax teams
closely involved with strategic
development to ensure that their
choices arent undermined by tax
surprises, concludes Flynn.
Because 3D printing is in a classic technology industrygap everyone is excited about its possibilities, butthe infrastructure for it to become mainstream is stillbeing built too many executives believe they have
plenty of time before 3D printing has an impact ontheir organizations.
Will 3D printing unleash your supply chain?
EY insightDownload the report, 3D printing taxationissues and insightsvia:ey.com/technology
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Todays smartphone has more computingpower than NASA used to send three mento the moon and back less than 50 years agoThe speed of technological change is justone of the challenges that businesses mustface today.
All systems go
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40 zettabytes 40 trillion gigabytes of datawill be created by 2020.
Zettabytes
EY insightFind out how to make themost of this data:ey.com/analytics
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Cybercrime globally costs more than US$44equal to 0.5% of the worlds total GDP. Readour annual Global Information Security Survto help you understand your informationsecurity.
Cybersecurity
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Technology is enabling new virtual communitiesthat are bigger than any country. But whilevocal individual consumers may serve aspowerful brand or product ambassadors,and online communities may provide keyplatforms for introducing and testing products,companies can nd it challenging to controlmessages about themselves in this new era.
Virtual communities
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The investments we are making in our
organization in our people, services,technology and innovation enable us toremain close to our clients issues and havea positive impact on our wider community.
Adaptingto a world
in motion
36 Global review 2015
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38 42 46
4947 48
Global review 2
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Talent
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A job?Or a lifetimeexperience?Working at EY is more than a job. Our promise to allour people is: Whenever you join, however long youstay, the exceptional EY experience lasts a lifetime.
#LegacyBuilders
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Investment
8.2m hoursIn 2015 we invested more thanUS$500 million on training anddelivered 8.2 million hours offormal learning through our careerdevelopment framework EYU(EY and you). EY has a stronglegacy of high-quality learning,and 2015 was our biggestyear ever in terms of industryrecognition for our learningprograms.
Mobility
88 countriesThis year 2,600 EY people atmember rms in 88 countries went
on an international assignment.
Mobility is important, to both
accelerate our peoples career
development and to meet our
clients increasingly cross-borderdemands.
EY alumni
800,000+We are proud of the more than800,000 EY alumni who today areexcelling in business, governmentand academia, and remainconnected to the EY family throughour global alumni program.
EY insightMeet some of our EY alumni:ey.com/alumni
Nancy AltobelloEYGlobal Vice Chair Talent
Perso
nalleadership
Highes
tperformingteams
Focu
son
win
nin
g
in
th
e
market
Exce
ptiona
lc
lients
erv
ice
Team leadershipShared vision
Right mix
Quality results
Client
leadershipConnected
Responsive
Insightful
Business
leadershipBusiness acumen
Business development
Innovation
Presence
VitalityAg
ility
Leadership at EYis grounded in ourvalues, commitmentto technical excellenceand inclusiveness andour purpose of buildinga better working world.
Our promise to all our people is that time spent with EYis exceptionally valuable, whether they stay with us forthree years or 30 years. Thats because we help peoplegrow, develop and contribute in ways that are unique.
Starting from the beginning, at recruitment,
candidates learn about the issues our clients
face and our purpose of building a betterworking world. Whether joining EY or not,
they nd out more about themselves through
the interview process and opportunities
like our intern programs around the world.
The outstanding candidates who join EY
participate in world-class learning, coaching,
counseling and on-the-job experiences that
provide opportunities to contribute, excel
and build careers. We focus on creating
and maintaining a diverse and inclusive
environment where everybodys voices
are heard and valued and where there is
exibility in how and where people work.
The EY culture is an important reason why
people join EY and develop their careers here.
Two powerful elements of our culture are
highest performing teams and a global and
inclusive vision of leadership.
Highest performing teams inspire individual
and collective success. Across all ranks and
roles, we are advancing a culture of world-
class, highest performing teams that create
lasting value for us, our people and clients.
Engaged and inspired by a shared vision,
highest performing teams bring togetherthe right mix of talent and deliver quality
results that surpass expectations.
Leadership is one of the hallmarks of the
exceptional EY experience for all our people.
Developing inclusive leaders underpins how
we make the world work better, as the actions
of EY leaders have a lasting impact on our
clients, our people and our communities.
Our distinctive denition of leadership at EY
provides one shared vision and language of
leadership to unite our efforts in building the
leaders of tomorrow, for EY and for the world.
When people eventually leave EY, their life-time experience continues. We are proud of
the more than 800,000 EY alumni who today
are excelling in business, government and
academia and who remain connected to the
EY family through our global alumni program.
For every one of our people, this is how we
sum it up: Whenever you join, however long
you stay, the exceptional EY experience
lasts a lifetime.
Leadership at EYOur denition of team, business, client and personal leadership at EY
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Rath leads the EY Unity network
for LGBT employees and allies in
Japan; co-founded a non-prot
organization promoting LGBTequality in the workplace; and
has contributed to campaigns
to prevent suicide among young
LGBT people.
Diversity and inclusiveness (D&I)
is a strategic imperative for the
global economy and for EY as
a global organization. Our clients
work across borders and so do
we. Our clients represent diverse
backgrounds, capabilities
and points of view and so do
the people on our teams.
Diversity is about differences.
We believe that all differences
matter. Inclusiveness is about
creating an environment in
which people feel, and are,
valued and where we can
Celebrating OUTstanding future leaders
Rath Wang, a Tax Senior in EY Japan,was ranked fourth in OUTstandingsTop 30 LGBT Future Leaders.
Better begins with you
Better begins with you, is our
agship global awards program.
Individuals and teams are
nominated in four categories:
exceptional client service;
strengthening communities;
pursuing innovation; and
developing outstanding
leaders and teams.
From more than 3,600
nominations recognizing
12,000 people, judges selected
20 global nalists EY people
who, through their everyday
work, make an impact and leave
their mark on EY and beyond.
Edwin Aguilar, an Assurance
professional, was nominated
in the developing outstanding
leaders and teams category.
Edwin grew up in Watts, a toughneighborhood in Los Angeles,
California, and became the rst
in his family to go to college,
working full-time to do so.
At EY, Edwin has been deeply
committed to helping other
deserving students reach their
potential. He not only mentors
students to position them for
success, he also launched the
self-funded Edwin Scholarship
which he awards to a deserving
accounting student eachsemester. So far, Edwin has
identied and mentored 13
high-quality recruits, all of
whom have accepted offers
from EY member rms.
Women. Fast forward
According to the World Ec
Forum Global Gender Par
Report 2014, it will take u
2133 to achieve global g
parity in the workplace.
We think 118 years is too
to wait.
We are taking the lead inaccelerating the rate of c
toward gender parity wit
Women.Fast forward, our
unifying platform around
womens initiatives that
brings together the collec
knowledge of our people
and our clients, in order t
accelerate womens prog
in the workplace.
EY insightFor more information visit:ey.com/womenfastforward
In 2015 we were recognized by94,000 business students inUniversums annual survey asone of the top 3 most attractive
employers in the world, for thethird year running.
Around the world EY member rmshave also been recognized by:
Great Place to Works WorldsTop 25 Best MultinationalWorkplaces the only oneof the Big 4 to be listed
FORTUNE magazine as a greatplace to work for 17 years in a row
Working Mother magazineas one of Americas 100best companies for workingmothers 18 years in a row
The Mexican Ministry ofLabor and Social Welfare asan inclusive and responsiblefamily company
Corporate University Best-in-Class CUBIC Awards as theCorporate University of the year,2015, EY South America Region
Training Journal, who shortlistedAdvisorys World Class LearningeLearnings program for bestcommercial program
Canadas Mediacorp as one ofCanadas best diversity employers
UKs Race for Opportunity forour Far East Network
Expatriate Management andMobility Awards (EMMAs) forour mobility programs in theAmericas, Asia-Pac and EMEIA
The Australian WorkplaceEquality Index for LGBTIworkplace inclusion
Women in Leadership EcoForum as the most womefriendly international empin China
Japans Ministry of HealthLabor and Welfare for supthe next generation
Indias World HRD Congredream employer of the ye
Awards
leverage those differences to
deliver better business results.
Every day, we connect with
all sorts of people and teamsaround the globe, both inside
and outside of EY. By maximizing
the power of different
perspectives and experiences,
we are able to build the highest
performing teams. We are able
to ask better questions and offer
better approaches which help
our clients achieve their goals.
The end result? We make a
tremendous impact on the
working world. Rath is an
example of how we make
this tremendous impact.
EY insightFind out more about our approachto D&I and read key thoughtleadership on D&I best practice:ey.com/differencesmatter
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Corporate responsibility
42 Global review 2015
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How can we lead
with purpose?Our purpose is building a better working world.We do that through the services we provide ourclients, and the opportunities that we give ourpeople. But fullling our purpose goes further
than our day jobs.
#BetterQuestions
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EYs purpose is building a better working world, andwe believe strongly that the services that we provideour clients, the way we manage our business, and theopportunities that we give our people go a long wayto fullling that purpose.
So when we talk about corporate responsibility, thatreally runs through the entire organization and isabout what 212,000 EY people do on a daily basis.
An important idea thats wrapped up in our purposeis our search for better in everything we do. And thatsearch for better goes further than our day jobs.
In a world thats uncertain, fragile and fragmented with rising tensions, an uneven economic recoveryand rising inequality we ask ourselves: what can wedo to improve that situation? Where can we have the
biggest impact?
For us the answer is in unlocking the human potentialfor social and economic growth in four ways:
supporting young people who are thebuilders of tomorrows working world
driving entrepreneurialism forinnovation, growth and jobs
valuing greater diversity to nd betteranswers and outcomes
working together with others to solvethe worlds most complex problems,and create a positive impact
Business has a pivotal role in solving societysissues and through these four areas, EY must,and will, play its part.
Contribution
US$60mMember rm contributionsin cash to our communities.
Time
350,000Member rm contributions inhours to more than 100 initiativesaround the world.
Equipping young people forthe innovation economy
Todays young people face anew reality: a world that is moredynamic, and more uncertainthan ever before.
According to the World Bank, thereare currently 75 million unemployedyoung people globally and, in thenext 20 years, there will be at least600 million more young peoplelooking for work than projectedjobs. No longer are good gradesand college acceptance the onlykeys to success.
To be competitive in todayseconomy, young people needa certain outlook and way ofapproaching their lives. They needto have an entrepreneurial mindset,be able to demonstrate comfortwith risk, problem-solving ability,interpersonal skills and condence.
The Network for Teaching
Entrepreneurships (NFTE) missionis to provide programs that inspireyoung people from low-incomecommunities to stay in school, torecognize business opportunitiesand to plan for successful futures.It is trying to unlock the potentialof young people by teaching themhow to think entrepreneurially to recognize opportunity, takeinitiative, and to be innovativein the face of challenges.
EY is supporting NFTE in creating,launching and institutionalizingthe Entrepreneurial MindsetIndex (EMI), a denitive system
of assessment tools to measureentrepreneurial mindset in youngpeople. The EMI will collate theessential attitudes, skills, andbehaviors of entrepreneurs, andcertify or badge young people ashaving learned and demonstratedthis mindset.
Nicky Major, EY Global CorporateResponsibility Leader says: EY isworking with NFTE to identify theunique qualities of successfulentrepreneurs and to look atwhich of these qualities aremalleable and can be taught;
what entrepreneurial literacy isand how can we measure it; andhow entrepreneurial qualities varyacross cultures and nationalities.
For more information:nfte.com
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Empowering localentrepreneurs tosave lives
According to the World Hea
Organization, unclean wate
for drinking and cooking cau
115 deaths every hour in Af
With operations in Uganda, R
Democratic Republic of Con
Kenya, a promising small buJibu, is aiming to put a huge
in that number. Co-founded
a father and son team from
United States, Jibu wants to
one million people gain acce
clean drinking water in ve y
Jibu means solution in Swa
and its solution is an ingenio
business model a franchis
operation that empowers lo
entrepreneurs to run street
shops, using water treatme
equipment to produce clean,
sourced water and make it av
to their communities at a fraof the price of other bottled
As part of the EY Enterprise
Services (EGS) program, an
professional from Switzerlan
ve months in Uganda. Wor
with the local EY member r
helped the Jibu team to des
implement the kind of nanc
operational metrics and con
that will be essential to supp
the businesss continued rap
expansion.
EGS lled a skillset and exp
gap that was crippling our cto grow, says Galen Welsh,
Jibu. For the rst time, we
to make management and b
model decisions that we wer
previously making blindly.
EGSs corporate social ente
model brings the best of EY
organizations that wouldnt
ordinarily be able to work wit
In two years, EGS teams hav
supported 27 social-impact
businesses across the world
Jon Shepard, Director, EGS
Growing a business to supppeople in poverty is tough w
The entrepreneurs we work
have vision and work hard, a
its a privilege to help them.
EY insightFor more information visit:ey.com/egsjibu.org
What are your memories of your rst job?
Were you full of excitement and optimism and keento learn and grow? Today, many of the worlds youngpeople long to create these kinds of memories.But the odds are stacked against them.
Safa RazeghiManager,Advisory
Young people account for roughly 40% of
the worlds unemployed and are up to three
times more likely to be unemployed than
their older peers. With a record number
of young people on the planet, combatting
the persistent youth employment crisis is
the focus of the World Banks Solutions
for Youth Employment (S4YE) project.
It involves designing and setting up the
S4YE coalition, aimed at increasingemployment opportunities for 150 million
young people in developing countries
by 2030.
Established in late 2014, the coalition will
seek to accelerate the employment of young
people, between the ages of 15-24 years
old, through transformative and scalable
solutions, linking them to governments,
civil society and business.
Safa Razeghi, in Advisory, in collaboration
with the World Bank Group account and the
nancial services team in McLean, Virginia,
helped the World Bank to lay the nancialfoundations on which the initiative
could build.
She helped to develop the S4YE Five
Year Sustainability Strategy, outlining
how the coalition can obtain the necessary
funding required to implement its mission
through 2020.
She also conducted a detailed research
analysis on the state of the youth
employment investment portfolio across
the World Bank and associated external
organizations. Portions of her analysis wereused in S4YEs Towards Solutions for Youth
Employment inaugural agship report.
My experience of working with a variety
of private sector clients really helped in
my work with the World Bank, says Safa.
I was able to bring a different perspective
and consulting approach to their nancial
planning, which complemented their more
traditional methods.
For more information vist:s4ye.org
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AssuranceSub-service lines: Climate Change and
Sustainability Services Financial Accounting
and Advisory Services Financial Statement Audit Fraud Investigation &
Dispute Services
In Assurance, better questions and
increased professional skepticism around
nancial information enables us to help
protect and serve the public interest, and
safeguard the long-term reputation of the
audit profession.
This year we launched our global audit
platform, EY Canvas, an important
milestone in our US$400 million audit
investment program designed to deliver
the highest-quality audits in the profession.EY Canvas is online, global and transparent,
which means our audit teams have a clear,
comprehensive overview of the entire audit
plan, helping us to better manage risk.
We also launched EY Helix, our suite of
analytic tools that enables us to analyze
large volumes of audit-relevant data,
and thereby derive deeper insights and
understanding of our clients nancial
operations; EY Atlas, a research tool that
allows us to share relevant insights and
knowledge with