Year in Review 2012

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2012YEAR INREVIEW

In 2012, we saw markets and economies changing at a pace the world has never seen, and I predict this fluidity to be the new norm. Organiza ons around the globe are maneuvering assets and implemen ng strategies on a real me basis to gain compe ve advantage. Amidst this vola lity, Lexicon has emerged as a leading provider to assist these organiza ons through consulta ve, customized and innova ve human capital solu ons.

First and foremost, Lexicon is built on and commi ed to our clients and their evolving needs. The services that the “Big Box” shops provide do not address the issues that our clients face daily and gives Lexicon the opportunity to provide specific solu ons to meet each client’s unique needs. Through quality and flexibility, Lexicon is being recognized as the preferred global provider versus off-the-shelf programs that offer rigid program and system limita ons. Our mission remains focused on being an extension of each client’s organiza on, fully aligning ourselves with their program and culture, providing quan fiable value.

We regard every suppor ng provider in our LexNet preferred network of suppliers a strategic element cri cal to the ul mate success of our clients’ programs, and as such are commi ed to integrated, collabora ve solu ons providing cost effec ve, targeted and value-rich, on-ground support worldwide. Paramount to our clients in this unstable environment is having a stringent controls and compliance structure in place, which mo vated us to successfully complete a SOC 1, Type 2 SSAE-16 examina on.

I am pleased to provide you with this “Year in Review” highligh ng Lexicon’s accomplishments throughout 2012. It demonstrates our appe te to con nually develop and evolve based on our clients’ needs and our collec ve forecast of solu ons that best support those clients for years to come. Lexicon’s growing pool of talented professionals and LexNet resources are energized by the trust that our clients place in us and we appreciate the valida ons through outside industry sources such as Trippel Survey and Research, LLC and the Forum for Expatriate Management. We value the new clients that we have welcomed in 2012, but are most proud of those that con nue to place their confidence in our teams.

Our clients deserve excellence and we are commi ed to providing it. We will con nue to advance our cost effec ve, technologically advanced and people-sensi ve mobility solu ons while always remaining focused on Your People. Your Way. Worldwide.

Michael P. Mancini CRP, GMSPresident & COO

YOUR PEOPLE. YOUR WAY. WORLDWIDE.

and their evolving ss the issues that specificflexibility, off-the-shelf ion remains igning lue.

ork of clients’ olu ons t s having

vated us

Lexicon’s o rears to resourcesciate the

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quick FACTS

2012 stats

Since 1993, Lexicon has grown at an impressive rate, with employees located in 16

and providing services in

SERVICED for 112

MOVED of household goods

PROCESSED with an average

turnaround of

HANDLED

aboutLEXICON

Lexicon Reloca on is a leading provider in the administra on and delivery of reloca on benefits and global assignment services. We manage all facets of our clients' mobility programs, including coordina on of all third-party services associated with employee reloca on for private and government clients. Lexicon offers our clients their choice of a diverse array of suppliers and specializes in providing high touch personal service that is responsive, efficient and cost-effec ve. Our powerful technology tools and customer-centric service philosophy result in high performance and customer sa sfac on levels, and have posi oned us as a leader in our industry. We are proud of our 'Take Care of the Customer' business philosophy, and are dedicated to providing every client and transferring employee a single point of contact available 24 hours a day, 365 days a year. Your People. Your Way. Worldwide.


President’s Message


TOP PERFORMERLexicon received the most TTLe

#1

Our Thought Leadership Program focuses on adding value to our clients by bringing valuable

and to the global mobility industry through

Compelling primary research and evidence based opinions on important global mobility business challenges is provided by the diverse professionals and

on our Thought Leadership Team.

for our clients’ global mobility programs and transferring employees are the result of our focus on increasing

and development of best

based on

process improvement.

thought LEADERSHIP

Our to

using diverse mediums to enhance client support and contribute to the global mobility industry is the cornerstone of our

strategy.

Trippel Survey Lexicon achieved impressive results in the 11th Annual Reloca on Managers’ Survey, conducted by Trippel Survey and Research, LLC. The survey is conducted annually providing a comparison of independent evalua ons from 400+ corporate reloca on managers. Lexicon received the highest ra ng of all par cipants in the following major categories:

Willingness to recommend to othersTenure of account personnelData integrityTransferee expense processingSupplier’s integrityExperience level of personnel

Lexicon is focused on Thought

Leadership and effectuating new

products and services that will lead the mobility

of employees around the globe for years to come

About Lexicon


marketLEADERSHIP

10Top

GLOBAL PROVIDER

THE

EXPATRIATE MANAGE& MOBILITY AWARDS2012

EMMAsTHE ASIA-pacific

HARBOUR GRAND, HONG KONGDECEMBER 3 2012

FEM Global Mobility Survey Lexicon was recognized in the Forum for Expatriate Management’s (FEM) 2012 Global Mobility Survey by being named to the Top 10 Global Providers list. The survey analyzes how global mobility programs are organized, managed and delivered to the global assignee popula on and benchmarks the global mobility func on as a whole.

FEM Asian EMMA Awards Lexicon was honored to be shortlisted for the ‘Des na on Services Provider of the Year’ and ‘Reloca on Management Company of the Year’ 2012 Asian EMMA awards. In addi on, Avrom Goldberg, a key member of our Thought Leadership Team, received the EMMA for ‘Global Mobility Professional of the Year’. The EMMA awards provide global recogni on to industry leaders, rising stars and business successes that relate to global mobility. Presented by the Forum for Expatriate Management, winning an EMMA is considered the 'ul mate recogni on of professional excellence in global mobility'.

Lexicon is proud to be recognized by some of

the most important industry organizations

for the quality of our company, level of

service provided and thought leadership

activities

Avrom Goldberg,Global Mobility Professional

of the Year



Controlled Growth Lexicon carefully considers reloca on volume, resources, logis cs and loca on to support the evolving needs of our clients. In 2012, we expanded our regional office in Shelton, CT and our global headquarters in Jacksonville, FL to manage increased and an cipated volume. APAC ac vity con nues to expand and remains a growing reloca on des na on. Lexicon opened an office in Hong Kong serving as the Pan-Asian hub to enrich our global reach and provide in-region consulta ve support.

Global Network Integration Our LexNet supplier network con nues to expand in number, quality and service offerings. In 2012, we focused on our real estate brokerage network members. Members of our Global Network Integra on team visited each provider, conducted refresh training to our excellence standards, and performed a detailed quality review evalua on of their services. These ongoing measures ensure that our preferred partners con nue to provide our clients and their reloca ng employees with the best value and quality. Our real estate suppliers are the most qualified, highest performing agencies in the marketplace. With over 300 real estate brokerage partners across the United States, we have established rela onships with at least three dedicated and preferred suppliers for all major metropolitan sta s cal areas as well as substan al support in most micropolitan sta s cal areas.

expand rage

ovider, ality d value

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World of Quality Awards Recognizing the value of our LexNet suppliers, Lexicon held its annual “World of Quality” awards ceremony in Washington, D.C. on October 2, 2012. A record number of 16 global providers were honored by Lexicon’s global network integra on professionals. Award winners were chosen based upon internal and external service and performance metrics, as well as Lexicon’s Voice of the Customer surveys.

About Lexicon


delivery &DESIGN

Compensation Products Lexicon’s compensa on experts were instrumental in the development of upgrades to LexLink Global (LLG), our web-based assignment management system. LLG now offers auto-templates to handle compensa on tables from data providers with standard and customized repor ng func onality. The new custom features include:

Easy system integra on with many HRIS pla orms Document manager Workflow and checklist automated processes Mul -currency accoun ng Compensa on automa on and accumula on

Compinstrumeweb-basauto-temstandardinclude:

Eas DocWoMu Com

C

was

By focusing on client-centric solutions,

Lexicon is increasing our support around the globe

with on the ground support without the

financial burden of “bricks and mortar” that gets

passed onto clientsOur LexNET

Supplier Network

comprises 600

companies in

125 countries

worldwide.

Commitment to Lexicon’s code of conduct

We provide our clients with the best value based on individual global mobility program goals and

for

Household Goods

criteria include Price, Transit Times and Methods, Historical Service Levels, and

insurance policy for one

included as part of the

quick FACTS



Funding Options Lexicon offers extremely flexible billing and payment op ons to meet the administra ve policies and needs of our clients. There are a myriad of op ons to meet individual requirements, including no funding, client funding and Lexicon funding. While the vast majority of our clients choose to have Lexicon fund expenses and equi es, there are a number of payment schedules offered that can reduce interest and funding costs. Payments are disbursed in a mul tude of ways including check, wire, and ACH, and can be funded in mul ple currencies as well. Lexicon also offers flexible billing op ons including hard copy invoices, flat file transmission and even true EDI.

During 2012, Lexicon expanded our client base by 9% and added service offerings to an additional 7% of our client base

System Security, Encryption, Control and Compliance A key step in our ongoing focus to provide security and compliance excellence to our clients, Lexicon successfully completed a SOC 1, Type 2 SSAE-16 examina on. A SOC 1 (Service Organiza on Controls Report) chronicles the management of an en ty’s financial repor ng. To successfully complete the examina on, Lexicon presented informa on to a qualified Service Auditor, who subsequently a ested to:

• The fairness of the presenta on of the descrip on of our systems• The suitability of the design of the controls to achieve related control objec ves• The opera ng effec veness of those controls • Iden fica on of the customers to whom use of the report is restricted

SOCaicpa.org/soc

Formerly SAS 70 Reports

AIC

PA S

ervic

e Organization Control Reports

S E R V I C E O R G A N I Z AT I O N S

quick FACTS

EXPENSE REPORTSProcessed 40,000+ expense reports with an average turnaround of 1.6 days

ACCURACY RATESLexicon boasts an expense processing accuracy rate of over 99.5%

$

THIRD-PARTY INVOICESIn 2012, Lexicon handled reimbursement/payment of 25,000+ third party invoices

COST SAVINGSOur LexTrek technology saves our clients an average of 15 to 20% annually

Invoice

About Lexicon


GROWTH

Lexicon remains focused on maintaining

our financial stability and level of quality in order to continually

expand our capabilities and ability to provide

support

GSA Advantage Lexicon con nues to be an ac ve par cipant in the GSA reloca on program under MAS Schedule 48. From home sale to rental assistance to move management, Lexicon is an approved supplier under all reloca on SINs. For fiscal year 2012, Lexicon was the 4th largest GSA home sale provider. Lexicon has an SBA and GSA approved Small Business Subcontrac ng Plan and reports results semi-annually hereunder. Over 21% of all subcontrac ng went to minority owned small businesses, exceeding both the Plan’s and GSA’s goals. Lexicon also received an EXCEPTIONAL ra ng in every audit conducted by GSA to track compliance with program requirements and accuracy in invoicing.

Diversity Lexicon is commi ed to crea ng a be er reloca on solu on, and diverse suppliers are a strategic impera ve in Lexicon’s business model. We also support our clients’ need to meet their diversity ini a ves through qualified and proven suppliers. Our system tracks and reports on diversity spend per individual client specifica ons for cer fied minority-owned Small and Large Business, cer fied Small Disadvantaged Business, cer fied Women-Owned Small and Large Business, Small Veteran-owned, Small Service Disabled-Veteran Owned, and small, cer fied HUB-Zone companies.

financial stability &


Lexicon comprises a diverse workforce that

enjoys working together and for our customers. It is our

shared responsibility to provide the

necessary tools to support our client

programs

TRUSTThe highest standard of

integrity is the

TEAMWORK

with

INNOVATIONA forward thinking, ,

OPPORTUNITYA

growth

oreVALUES

Take Care of the Customer At Lexicon, our philosophy is to 'Take Care of the Customer' (TCC). Working toward our goal of becoming the acknowledged performance leader in global mobility services, Lexicon con nues to build collabora ve, value-driven rela onships with our clients that provide superior benefits to their employees. Promo ng TCC solidifies our commitment to delivering excep onal quality and performance to our customers and earning their loyalty and trust. Prac cing this approach has helped us to achieve an exemplary history of service excellence.

Global Team To meet evolving global client needs, Lexicon augmented our interna onal mobility and compensa on teams by more than 20% in 2012. More than 85% of our top-notch, dedicated professionals have first-hand experience living and working in another country, and speak at least two languages. The stability of the team is consistently higher than the industry average, with an employee reten on rate of over 90%.

GREEN Initiatives

Sustainable Building MaintenanceUsage of ‘Green’ Suppliers

Lexicon has made a to and to reduce our carbon footprint. Our are earth-friendly and


people, culture &STRUCTURE

Social Responsibility “What can we do to make the world a be er place?” Lexicon answers that ques on on corporate responsibility with The Heart of Lexicon, a program created to encourage community involvement throughout our organiza on. Perpetua ng the idea that one person can and does make a difference, we encourage employees from all offices to organize and par cipate in philanthropic ac vi es in their respec ve communi es. Events include fundraisers and outreach ac vi es suppor ng domes c and interna onal relief and development programs, community services, and disease research and treatment. We also hold annual food, clothing and toy drives for needy families in their local communi es. Our employees’ individual involvement in non-profit organiza ons is supported with flexibility. Lexicon and our people con nue to make this world a be er place to live in.

lexic n

Lexicon’s culture includes a strong philosophy and formal policies

work-life balance.

Over 20%

of Lexicon

employees

elect to work

a

schedule.

Our goal is to ensure that Lexicon remains the employer of choice

recognizing and the unique needs of our most

clearly demonstrated by our historical and

work-life BALANCE


System Architecture One of the key priori es at Lexicon is maintaining and upgrading our informa on technology infrastructure including enterprise level, state-of-the-art network, server, and security equipment. During 2012, Lexicon upgraded its core produc on equipment to provide maximum processing power, end-to-end device monitoring, and robust disaster recovery. Lexicon employs advanced applica on device failover and database redundancy to ensure uninterrupted availability of business systems.Company Website We redesigned our public

website, offering an enhanced user experience.

Go-to-Green Lexicon’s issue resolu on process for clients includes our Go-to-Green Quality Business Process Ini a ve. It is designed to iden fy process and communica on breaks across all spectrums of our service delivery. All technology-related client issues are considered a ‘red’ flag in our account management culture and we move quickly in changing that status from red to green so all par es move forward. Root causes are quickly iden fied with immediate dedica on of addi onal resources and a Go-To-Green Master Project Ac on Plan is developed. Each Plan has Execu ve Sponsor representa on from our client and Lexicon to ensure proper focus and removal of any roadblocks to success as the Plan moves toward expedited resolu on. A er the issue is resolved, a further analysis ensues, u lizing Six Sigma methodology to prevent a similar occurrence and create a permanent solu on, if needed.

SM LexTrek Technology LexTrek features a web-based, point-to-point interna onal move model that allows Lexicon’s network of preferred freight forwarders and interna onal movers to easily and efficiently provide compe ve door-to-door pricing for air, surface and permanent storage shipments as well as pricing for commonly used services.


powerfulTECHNOLOGY

Lexicon’s state-of-the-art technology is driven by

compliant, secure and reliable systems that provide our

teams, customers and clients with real time information

and accurate billing and reporting

Communications Lexicon completed the implementa on of a new telecommunica ons system this year, taking advantage of advanced communica ons technologies available. Our VOIP telephone system provides greater control over the enterprise level communica ons and connec vity of branch offices. The system provides more op ons for addressing emergency service interrup ons. When Hurricane Sandy decimated a large por on of the New York and surrounding area, we were protected. While power loss affected our Shelton, CT facility, we were able to automa cally re-route all telephone and facsimile communica on directly to our back-up facility in Atlanta, GA. There was no loss of communica on for our clients or their reloca ng employees.

LLG System Upgrades We proac vely an cipate business and client needs driving our technology update efforts. Lexicon con nually enhances its opera ons so ware and applica ons to improve user experience and provide addi onal func onality and efficiency. We implemented six upgrades in 2012 providing enhancements across almost all func ons in our LexLink Global applica on. Changes include:

• Major enhancements to the cost es mate func on providing more customized cost projec ons• Electronic publishing of payroll reports on the client portal and year-end tax reports on the employee portal• New interna onal compensa on data input• Custom calcula ons• Repor ng templates• Employee access to portal from mobile devices• Role-based security for user reports.

Mobile Access Lexicon has developed a specialized view of its reloca on website so that employees can access key reloca on informa on on their mobile devices.

t UUU

linkSMlexglobal


Lexicon remains in motion, helping shape the future

of global mobility with consultative,

innovative, and comprehensive

solutions for your evolving needs

Expansion and further integra on

of LexTrek, Lexicon’s interna onal

moving services model

Improved “quick es mate” tool for

all move types

We work in an accelerated and on-demand business climate where compe on is not limited to local or even na onal businesses, but is found everywhere in the world. Technology, travel and communica on solu ons have globalized markets, making the 24/7 business environment a mandate. Real me demands are transforming economies and cultures and as a consequence, businesses. The companies that can provide quality responses to the new market demands will be successful. Adaptability and speed-to-market are the keys to that success. This is not a point in me remark. Legacy systems, an quated manual processes and the inability to make immediate market adjustments will be the demise of organiza ons, or at a minimum will force them to watch their compe tors gain market share. Lexicon is traveling forward in the fast lane. Remaining flexible and thought provoking while adding value to our mobility solu ons is impera ve for our clients and those clients looking to improve their programs. Peak performance ma ers on all levels.

Expanded Lexicon Thought Leadership. A strategic combina on of our on-the-ground resources and

networks around the globe improving real me solu ons. Increased webinars on mely,

per nent topics of interest to allow more interac on and current

informa on dissemina on. Global surveys and regional studies will

also be highlighted.

EExpansion and ffurther integra on

of LexTrek, Lexicon’s interna onal

moving services model

Big Four Tax Engine Op on

Expanded capabili es and automa on of our Global Compensa on Accumula on support


lookingFORWARD

Expanded Lexicon global footprint via virtual and

in-region assets

Real me interface with HRIS systems

Lexicon understands our single most important asset is our people. The solu ons we provide through client-centric support and intui ve technologies are cra ed, built and delivered by our qualified professionals. We believe they are the best in the business and will con nue to invest in tools and create synergies to be er support them. We work hard to maintain and improve our business environment for our people and that means more informed, be er equipped and more pleasant service experiences for our customers. We are pleased to provide you with a glimpse of advances planned for the coming year.

We are proud of what our people have accomplished, humbled by the trust our clients con nue to place in us and are excited about new opportuni es and the advancements that we are bringing to our clients and the marketplace. Lexicon thanks our valued clients as well as our hard-working people, our worldwide supplier network and our insigh ul Board of Managers for the support and energy to forge ahead.

EExpanded Lexicon global footprint via virtual and

in-region assets

Expansion of Lexicon’s FlexMove program, offering a number of household goods op ons, and integra on of a

new, lump sum model that will be available to corporate, government and affinity

markets

Addi onal repor ng capabili es, including expanded online and

real me authoriza on ability

+1.904.858.1255 / +1.800.387.8242 www.lexiconrelocation.com

Year in Review 2012

Documents

clients programs

new clients

clients organizaon

clients mobility programs

clients unique needs

clients oluons t s

leading provider

specific soluons