Annual Review 2013Creating new paths for growth

www.pwc.lu

PwC Luxembourg (www.pwc.lu) is the largest professional services firm in Luxembourg with more than 2,300 people employed from 57 different countries. It provides audit, tax and advisory services including management consulting, transaction, financing and regulatory advice to a wide variety of clients from local and middle market entrepreneurs to large multinational companies operating from Luxembourg and the Greater Region. It helps its clients create value they are looking for by giving comfort to the capital markets and providing advice through an industry focused approach.

The global PwC network is the largest provider of professional services in audit, tax and advisory. We’re a network of in-dependent firms in 158 countries and employ more than 180,000 people. Tell us what matters to you and find out more by visiting us at www.pwc.com and www.pwc.lu.

A message from the Managing Partner

While the economic situation seems to stabilise in most parts of the world, the recovery is still uncertain in the eurozone and the regulatory environment is clearly becoming tougher and increasingly complex.

In this context, we made it a point to support our clients and the Luxembourg economy by developing innovative solutions based on strong technical knowledge and by increasing our investments.

Despite the challenging business climate, we managed to accomplish double-digit growth this year, our turnover reaching a record level of 288 million euros.

We recorded significant growth in all our services and managed to further reinforce our leadership position on the Luxembourg market.

Path to growth

Although economic circumstances remained difficult, our total revenues grew by 11%. By keeping pace with the latest developments in the fields we operate in, we managed to take advantage of opportunities as they emerged and further develop our range of innovative services we provide our clients with.

PwC Entrepreneur, our new set of services dedicated to entrepreneurs, SMEs and family businesses, and PwC’s Accelerator, the first European platform to boost fast-growing companies on a global level, are just two of the new paths we embarked on to create maximum value for our clients, while contributing to the growth of Luxembourg’s economy.

Path to talent development

At PwC Luxembourg, we are always aware of, and looking after, the primary source of our success – our Talents. That’s why in 2013, we continued to offer extensive training and exchange opportunities to our

People, encouraging them to develop new technical and soft skills, as well as maintain an optimum work-life balance. We were also happy to welcome 550 new Talents amid our ranks, bringing our head count to more than 2,300 People.

Path to sustainability

We are committed to reducing or eliminating the adverse effects our business has on the environment, wherever possible. Our clients and our People expect it, and it also helps us reduce costs in a number of areas.

Our future building, called «Crystal Park», is a case in point. With environmental considerations in mind, it will enlarge the workspace of our more than 2,300 People with a greatly increased level of comfort. With our new building, we reaffirm the long-standing commitment of our firm to fully support the Luxembourg economy and to contribute to the country’s efforts for sustainable development.

Quality and transparency embedded in all we do

We aim to deliver outstanding service and quality to our clients and focus on building a culture that delivers continuous improvement. We are committed to delivering high quality work and transparency for our clients and take our public interest responsibilities extremely seriously. Our focus on quality is a priority for all our People and we work hard to make sure that we have quality and transparency embedded in all our work through tools and processes, training and experience and by having the right culture and values.

Didier MougetManaging Partner

“Our continued investments in innovation, the hard work of our talents and the trust our clients place in us have greatly helped our business to strengthen. As the number 1 professional services firm in Luxembourg, we’ll continue to play our part over the coming year. This includes using our capabilities to contribute to Luxembourg’s economy.”

Didier Mouget Managing Partner

2013

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Taking new paths in our marketsSupporting Luxembourg growthWe are proud to audit many iconic companies in Luxembourg. Our work offers a level of confidence to shareholders and the market, and creates a foundation for stability and prosperity.

It’s important to us that we play a part in supporting the country’s economy.The more we support a transparent and trusted economic environment and help companies succeed, the more we can help drive growth, job creation and a sustainable national economy.

While our brand is strongly associated with our services to big companies, we are incredibly proud of our work with thousands of SMEs, entrepreneurs and family business owners. We believe the latter have a critical role in building a sustainable economy in Luxembourg and in the Greater Region, which is why we recently launched PwC Entrepreneur.

In a global and highly competitive economy, entrepreneurs are challenged on every aspect of their business: strategic, financial, operational, etc. To turn these challenges into opportunities and develop their activities, entrepreneurs and their business must leave little to chance. To help them, we have put together PwC Entrepreneur is a one-stop shop in Luxembourg for entrepreneurs located in Luxembourg, the Greater Region and beyond.

We aim to support entrepreneurs and their business at all stages of their development. We work on finding tailor-made solutions for each client whether it be financial or operational restructuring. When time has come for business owners to retire or simply go on to new venture, they need to anticipate the future of their company. PwC Entrepreneur helps assess the true value of a company and provides assistance in all matters related to financing, passing down or selling their property.

An entrepreneurial mindsetPwC Entrepreneur is a team of professionals who understand the needs and mind-set of entrepreneurs and their business. With some of them coming from the Industry, these experts are able to answer any type of question regarding a client’s business.

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In keeping the pace with the changing economy and market, we want to champion innovation. As the first European platform designed to boost fast growing European companies expanding globally, PwC’s Accelerator is at the vanguard of innovation.

LinkedIn members have already joined the group of PwC’s Accelerator

Since its launch in March 2012, PwC’s Accelerator has been building its credibility and visibility. Here are some key figures:

+22m €

companies have been or are currently being accelerated, 4 of which have decided to move their headquarters to Luxembourg

companies have applied to PwC’s Accelerator

Leading our People onto developing paths

A world of opportunities

We continuously encourage our Talents to update and expand their skillset. On top of learning on the job from the variety of work we do and the clients we serve, our Talents benefit from formal training, ranging from technical courses to soft-skills workshops and seminars. This year, we have organised nearly 2,000 training sessions, investing more than 160,000 hours in their development. In addition, we have launched an e-learning library and instructional services adapted to our People’s needs.

We also give our Talents the opportunity to move around the firm thanks to our internal mobility programme. As their knowledge, capacities and interests change, they are able to explore new career paths within the firm.

One of the other things that make PwC attractive is the opportunity to work on assignments around the world. This allows our Talents to advance and diversify their professional capabilities while exploring new locations and markets. This year,

89 of our People took advantage of this unique opportunity while we hosted 70 people from the PwC global network.

As the sixth largest private employer in Luxembourg, we believe we have a duty to create an inclusive workplace where all our People can progress and be at their best.

People6thlargest private employer of Luxembourg

Championing innovation

invested in PwC’s Accelerator clients

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Pursuing sustainable pathsResponsible business

We consider it our duty to contribute to a responsible and sustainable business environment. In 2013, we hosted several conferences and professional events, including “La Journée d’Actualités Comptables”, “PwC Banking Day”, “Journées de l’Economie” and “Sustainability Day”.

In 2013, we also took part in several financial and regulatory bodies including

The Luxembourg Bankers’ Association (ABBL), the Financial Sector Supervisory Authority (CSSF), the Senior Committee of the Financial Centre (HCPF), the business network that promotes Corporate Social Responsibility in Luxembourg (IMS), the Luxembourg Institute of registered auditors (IRE) and the Business Federation Luxembourg Fedil, giving us a chance to share our

skills and keep up-to-date with the latest developments.

Finally, publishing thought leadership material remained a big priority on our agenda. We always strive to detect and inform emerging tendencies and debates to understand changes as they happen and adapt our services accordingly.

Putting complementarity into practice

At PwC Luxembourg, complementarity is nurtured by 57 nationalities, as well as a plethora of different languages and academic backgrounds. And this constitutes our best asset as we benefit from the individual know-how and creativity each Talent brings to the table.

“At PwC Luxembourg,

we believe the best teams

are multi-faceted in

terms of gender, skills

and backgrounds. Our

complementarity is our best

asset.”

Vinciane Istace, Human Capital partner

Flexible and responsible

Give our Talents the possibility to manage their time according to their own preferences and needs. Our “A la carte” remuneration scheme offers more than 50 options to manage compensation, protection and time such as flexible annual hours, study leave and holiday savings.

We know that our Talents can create maximum value for our clients only if they are content and fulfilled in their professional and personal life. Therefore, taking care of them is a top priority for us. “Our Mind Yourself” programme, recognised by the Luxembourg Minister of Health, is an innovative experience which includes 25 different courses. Our People can sign up to personal-development opportunities, be it on how to stop smoking, preparing for a marathon, or another personal life goal. We want to give our Talents the chance and tools to reach their optimal, individualised work-life balance.

We also encourage and help our People to follow personal projects. This year, we have provided many of them with the time

and support they needed to contribute to a humanitarian, environmental or even cultural project that has a positive impact on our communities.

Asset Management in the Social Era

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Community Engagement

We are acutely aware of our responsibility towards the communities in which we operate. We therefore continue to encourage volunteering. Last year many of our employees trained patients of “Croix Rouge Luxembourgeoise” to the basics of photography and organised an exhibition of their work. We also made donations to charities and sponsored community organisations, including “Relais pour la vie” and “Télévie”.

Our community engagement is built around the themes of education and culture. We have academic partnerships with universities and business schools and we sponsor cultural and art events

in the Greater Region, including the Museum of Modern Art (MUDAM), the Centre Culturel de Rencontre Abbaye de Neumünster (CCRN), and the Centre Pompidou-Metz.

Diversity and inclusion

This year, we have taken complementarity to the next level as we launched a series of actions sponsored by the group Women and Men @ PwC that ensures equal opportunities. This includes the event Connected Women, which brought together successful and influential women in Luxembourg for discussion and networking.

Our commitment to sustainability becomes even clearer when looking at the plans of our new building. Extending across 30,000m² in the ban de Gasperich, Crystal Park will incorporate the latest advancements in sustainable architecture and building practices. Set to be completed in 2014, it has earned high standard certification for environment-conscious design.

Features include: Efficient heating, ventilation and air conditioning, and lightening technology, internal flows management, use of sustainable building materials, waste-management scheme, sustainable providers’ selection, a 20ha urban park, and sustainable mobility solutions.

We also celebrated International Women’s Day, where we handed out spring flowers to all our People to celebrate even greater gender empowerment.

Crystal Park – a smart office building

Environmental Stewardship

Since 70% of the firm’s CO2 emissions stem from business-related traveling and car use, changing our employees’ commuting habits has become a top priority for us. That’s why we introduced flexible Carpooling and Carsharing options that offer environment-friendly ways to get to work, meet clients and generally commute in Luxembourg and

in the Greater Region. We also provide every employee with a JobKaart and pay 50% of the annual fees for their M-Pass to encourage the use of public transport.

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Our performance in...

Audit

“With more than 1,000 talented People, we are by far - in total and in all industries - the largest audit practice in Luxembourg.Quality is the foundation of our service: it is at the heart of our reputation on the market and essential to our delivery model to our clients.In the future, we will continue to be at the forefront of the ongoing discussions on the corporate governance of companies, on a new financial reporting model and the role of the auditor.”Pascal Rakovsky, Audit Leader, Deputy Managing Partner

“Throughout this year, we have continued to develop our advisory and consulting businesses. With these propositions, we’ve helped our clients grow their revenues, manage risks and regulations and make the most of talent while creating insight to improve business performance. We view new international regulations like EMIR or AIFMD as an opportunity to demonstrate our ability to come up with tailored solutions.”Jean-François Kroonen, Advisory Leader

Advisory

148m euro revenue

62m euro revenue

+7%

+15%

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Tax

“Despite the crisis affecting Luxembourg’s financial centre, the country can rely on the stability and resilience of its political, fiscal and legal environment to remain an attractive location in which to set up or invest. In the coming year, we’ll pursue our efforts in bringing our clients the very best of our practice by focusing on hot topics like Transfer Pricing, VAT, Local market, Tax litigation and Tax technology.”Wim Piot, Tax Leader

78m euro revenue

+15%

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Who we are

PwC global Network – one Network to speak with one voiceWith the largest Network of separate and independent member firms, we provide industry-focused assurance, advisory and tax services with our more than 180,529 people in 158 countries around the world. Member firms of the PwC global Network connect our knowledge, experiences and solutions to build public trust and enhance value for their clients and their stakeholders.

Our international Network of professionals can be quickly mobilised to form the most qualified team to respond to your specific needs.

PwC Luxembourg – Local ownership to get closer to youPwC Luxembourg is organised as a Luxembourg registered société coopérative and counts 126 partners. It is registered with the following regulators: Luxembourg IRE, PCAOB and Japanese FSA.

The firm combines local entrepreneurship and global coverage.

Looking forward to welcoming you in Crystal Park in 2014!

© 2013 PricewaterhouseCoopers, Société coopérative. All rights reserved. In this document, “PwC Luxembourg” refers to PricewaterhouseCoopers, Société coopérative (Luxembourg) which is a member firm of PricewaterhouseCoopers International Limited (“PwC IL”), each member firm of which is a separate and independent legal entity. PwC IL cannot be held liable in any way for the acts or omissions of its member firms.

www.pwc.lu