Professional Documents
Culture Documents
Global Annual Review 2010
Global Annual Review 2010
com/annualreview
Building
relationships.
Creating value.
Global Annual
Review 2010
Western Europe
57,702
people
154
Global Middle East
and Africa
10,033
people
countries
766
South and Central
America
10,428
people
locations
PwC people
Clients 6
2
People 12
Central and Eastern Corporate Responsibility 18
Europe
6,837 Transparency 26
people
Facts and figures 32
Asia
32,225
people
Dennis M. Nally
Chairman,
PricewaterhouseCoopers International
2 PwC
FY
2010
US$ 26.6 billion revenues in FY 2010
26.6 bn
4 PwC
Thus we focus on people’s careers with change by repositioning the profession Future
the same intensity we apply to meeting to better meet the needs of investors, With the strongest network and the
clients’ needs. recasting the financial reporting model best people, PwC is uniquely positioned
for better access and understanding. to work with companies of all sizes as
In FY 2010, PwC firms were recognised they manage through these uncertain
by numerous external media organisations Today accountants and auditors face times and create the value they want.
for their innovative, best-in class human a rapidly changing global regulatory It is demonstrated in the performance
resource programmes. Among others, environment – one in which regulatory, of the 162,000 people in PwC firms
PwC was again ranked among the 100 legal and standard-setting processes around the world – in the passion,
Best Companies to Work for by Fortune are struggling to keep pace. As a result, knowledge and commitment brought
magazine, and was among the top 10 we are not operating as efficiently as to every relationship.
companies on Working Mother’s best we should. Businesses continue to pay
workplace list for the 7th consecutive the price for a system that is too complex As the global economy emerges from
year. PwC was also placed first in and cumbersome. the downturn, we expect FY 2011 to
The Times (London) Top 100 Graduate continue the slow growth pattern,
Employers survey, and was among the Responsibility although with regional differences.
Top 10 Best Companies to Work for by Corporate responsibility permeates all But we do see exciting opportunities
Consulting magazine. aspects of business today. Specifically, emerging as well, particularly in
the challenge of managing issues around industry sectors such as healthcare,
Profession sustainability is seen by most business financial services and infrastructure,
The economic downturn also gave rise leaders as an important factor in long- and we are poised to help clients
to questions about the role of accountants term prosperity. PwC firms are likewise capitalise on them.
in the financial crisis, the long-term conscientious about their conduct in
relevance of auditing and what value it the communities where they operate. We are not reluctant to share our own
brings to the marketplace. The European ambition at PwC – to be the world’s
Commission announced it will publish PwC firms also collaborate closely with leading professional services network.
a wide-ranging discussion paper on organisations such as the United Nations, We want to be distinctive in everything
auditing, dealing with such issues as the World Economic Forum and the we do; to set ourselves apart from our
independence, the dominance of the World Business Council for Sustainable competitors as much by the quality of
Big Four accounting networks, and the Development to help find solutions. our relationships as by the excellence
ownership and governance of audit Our initiatives are guided by our of our performance.
firms. Similar debates are also taking commitment as a member of the United
place at national levels such as in the Nations Global Compact. Through that As you reflect on the examples and
UK. The financial crisis has given all commitment we seek to improve lives stories shared in this publication, I hope
of us much to reflect on – not only what by applying the UNGC’s 10 principles you will understand why I am confident
could have been done to potentially in the areas of human rights, labour, these ambitions are well within our reach.
mitigate the impact of the crisis, but what the environment and anti-corruption.
should be done to avoid a recurrence. Elsewhere in this report, you will
PwC welcomes these debates and takes see examples of how PwC is working
seriously the responsibility to participate to incorporate the 10 principles of the
for the benefit of our clients and ourselves Compact in the marketplace, in the way
as well as the wider public interest. we treat our people, in our interactions Dennis M. Nally
in our communities, and in our Chairman, PricewaterhouseCoopers
The relevance and value of the audit is environmental initiatives. International
directly related to the corporate reporting
model. We must help shape the agenda for
6 PwC
PwC member firms consistently
build relationships that help clients
create the value they’re looking for.
Client relationships go beyond single
engagements. We work hard to
understand the client’s business
and how they define value.
Case study
Founded in 1950, China Minmetals
Corporation is a major Chinese mining
company listed on the Shanghai Stock
China Minmetals: Trusted
Exchange. It deals globally in the
development, production, trading and
relationships and drive for value
operation of metals and minerals, and
has an ambition to become a world-class
combine for winning venture
product provider in its sector.
In recent years, PwC China Advisory
partner Ken Su has worked with his
Audit partner colleague Timothy Ho to
develop a strong working relationship ensuring success. It was truly a single
with the China Minmetals team. When team working with the client to achieve
China Minmetals was looking to acquire one overriding aim – to help our client
a significant amount of the copper, zinc achieve optimum value from the
and lead assets of Australian-based Oz transaction.”
Minerals, it turned to PwC China for
Following the acquisition of key assets of
due diligence services in relation to the
Oz Minerals, Minmetals formed a new
US$ 1.38 billion deal.
company called MMG (Minerals and
All the cross-border strengths of the Metals Group). As the opportunity to
PwC network came into play as Ken Su’s audit this new company became apparent,
team collaborated with colleagues in the PwC mining team in Australia, led by
PwC Australia along with PwC’s tax Tim Goldsmith, worked with PwC China
teams in China. This collaboration colleagues in Hong Kong and Beijing to
enabled PwC China to provide added- seek and ultimately win the audit of MMG.
value advice to Minmetals in the areas The client awarded the engagement to
of deal structure, negotiation strategy PwC as a result of the partnership and
and target value/risk assessment. Ken trusting relationships developed through
Su recalls: “Throughout the project, the years, and deep industry knowledge,
trusted relationships and close as well as PwC’s candour and attention
collaboration were key factors in to detail.
Case study
Eli Lilly: Pulling together
to help create value
Founded in 1876, Eli Lilly is one of aside any feelings of competitiveness and
the largest pharmaceutical companies work together closely with a single goal
in the world. Of the company’s 40,000 in mind – to create and preserve value
employees, more than 7,000 are engaged for Eli Lilly.”
in research and development activities.
This sort of teaming among Lilly and its
A true multinational enterprise, Lilly has
external advisors was put to good use
manufacturing plants in 13 countries;
during the company’s recent multi-billion
conducts clinical research in more than
dollar acquisition of ImClone Systems.
50 countries; and markets its products
The PwC US mergers and acquisitions
in 143 countries.
team worked closely and effectively with
The Lilly organisation is highly collegial, Lilly’s external legal advisors and auditors
and close and collaborative relationships to ensure that this complex transaction
with its external advisors are very went smoothly. The transaction
important to the company. Indeed, Lilly’s subsequently led to a bigger role for PwC
Chief Tax Executive, David Lewis, likes to during the post-acquisition restructuring
say: “We don’t care what you know until phase, which involved tax, M&A and
we know that you care”. PwC’s relationship transfer pricing professionals from the
with Eli Lilly goes back more than a PwC US and PwC Switzerland firms.
decade, and is now overseen by US Tax
Says Eli Lilly’s David Lewis: “What’s
partner Art Wachholz.
important to Lilly is that our external
Art says: “After just a few days working advisors all pull together with the
with Lilly people, it became very apparent ultimate aim of helping us to create
to me that this is a relationship-driven value for our business. The PwC people
organisation. The importance that Lilly we’ve worked with clearly recognise this
people attach to ‘teaming’ is evident and, as a result, we’ve developed a close
throughout the company’s culture. working relationship with them at all
In particular, Lilly’s Tax department levels of the Lilly organisation. For Tax,
expects all its external advisors to put they are truly trusted advisors!”
8 PwC
Some capabilities – such as technical
mastery, industry knowledge, and a
well-rounded business sense – represent
the threshold capabilities expected of us.
Other traits – like anticipating the client’s
issues and being highly responsive
to their needs – are more subtle and
personal, but no less important.
10 PwC
One quality in particular is key to To an extent, the relationship that We take a similar approach in the way
every strong relationship: trust. For we seek to establish with clients is a we work with clients. In our view, PwC’s
the people of PwC, the word ‘trust’ has reflection of PwC firms’ long and rich own intellectual capital is amplified and
special meaning. In the first instance, heritage as public auditors. That role extended by that of its clients. By working
trust is a core element of our business, has instilled in our people the quality in close collaboration, PwC firms and
which is to build the public’s confidence of ‘independence’ – an attribute their clients enter into a relationship in
in the fair and efficient functioning of that isn’t limited to compliance with which learning occurs in both directions.
capital and financial markets around regulatory rules, but instead extends
the world. This means everyone in PwC to independence of mind. As a result, At PwC, we’re persistent and patient in
should exhibit a high level of personal we tell clients what we think, without our efforts to build and sustain strong
integrity and responsibility at all times. fear or favour. relationships with clients. We know
This imperative provides an excellent that the sorts of relationships we wish
basis for establishing a trust-based While independence of mind is critical to establish take time. We also know
relationship with our clients. to our ability to carry out the role of they require us to exhibit – in every
public auditor, it is also an attribute interaction with every client – the
that infuses every part of our business. implicit qualities of trustworthiness,
Because we embrace independence, independence, and empathy, together
‘Putting ourselves in the we are compelled to give clients our best with an explicit desire to work in close,
client’s shoes’ allows us to advice, even in cases where that advice respectful collaboration. In bringing
connect deeply with clients is uncomfortable to hear or contradicts these attributes to every assignment we
conventional wisdom. Clients value our take on, PwC simultaneously enriches
and grasp the practical straight-talking approach, regarding it – the professional lives of its people and
business context in which quite rightly – as an excellent starting unlocks the door to creative, value-rich
they operate. point for generating innovative solutions solutions for clients.
and building lasting relationships.
To maximise the resulting benefits,
On a practical day-to-day level, trust is independence of mind must go hand-in-
also established when we demonstrate hand with empathy – or, as PwC people
a number of our qualities to our clients. often say to one another, ‘putting
ourselves in the client’s shoes.’
These include a capacity for listening
and asking the right questions; for This mindset allows us to connect deeply
focusing on their objectives rather with clients and grasp the practical
than our processes; for grasping the business context in which they operate.
big picture; and for delivering what we It keeps us focused on the client’s agenda
promise. In the absence of trust, most rather than our own. It also enables us
professional service providers appear to keep our egos in check and acknowledge
more or less interchangeable. But add that we don’t always have all the answers.
trust to the equation, and you gain
the opportunity for ‘creative tension’ What else contributes to strong
between service provider and client. relationships? In our view, a collaborative
In such relationships, both parties are working style is a further prerequisite.
sufficiently comfortable – both Not surprisingly, collaboration comes
intellectually and emotionally – to naturally to PwC people because it’s
engage in an open and challenging central to the way we work among
give-and-take of ideas and perspectives. ourselves. After all, PwC is a global
network of national firms with various
communities of interest: industry
generalists, functional specialists and
subject matter experts.
12 PwC
PwC is a remarkably diverse
organisation. Our workforce includes
business advisers, accountants, auditors,
forensic investigators, financial
analysts and tax experts – among other
service professionals. Similarly, our
client portfolio contains companies of
every conceivable size and shape; and
our service mix varies from country
to country according to local market
needs and national regulation.
14 PwC
The entry of women into the labour market has contributed
more to growth in global GDP than either new technology or
the emerging economies of China and India.
Sahar Hashem
16 PwC
Overseas experience a multinational school with teachers
While serving oil and gas companies and students from over a dozen countries.
out of Houston, Texas, Kenny Hawsey “They’re learning that there’s a big
was taken aside one day by a PwC US world out there.” Kenny observes.
senior partner and given this counsel: As for Kenny, he simultaneously serves
“Energy is a global game. If you want a portfolio of multinational oil production
to work with the major players, you and service companies while travelling
should get overseas experience.” throughout the region as PwC’s Energy
That piece of advice soon launched Tax Leader for the Middle East.
a peripatetic career that, over the
following decade, found Kenny Hawsey As Kenny’s global experience has
in postings to Moscow, Azerbaijan and expanded, so has his network of
Dubai. During those years – as Kenny’s personal and professional contacts. Kenny Hawsey
knowledge of the industry deepened and Kenny tells the story of developing
his perspective on the world widened – a close relationship with a client in
his ability to provide value to clients Azerbaijan, who, almost a decade later,
progressed by leaps and bounds. turned up recently in a new role as his
company’s manager of Middle East “People know that
“During my years in Moscow, I spent most tax operations. The two are now again
of my time helping clients understand the working closely together. “These sorts
I understand the big
implications of the special tax regimes of relationships are invaluable,” Kenny picture and can provide
that apply to multinational oil companies.” says. “From past experience, people immediate value.”
Kenny says. “Then, when I got to know that I understand the big picture
Azerbaijan, I became much more involved and can provide immediate value.” Kenny Hawsey
in helping to shape the Production Sharing
Agreements that host governments grant
oil companies for the right to explore and
produce.” Kenny’s Azerbaijan tour was
followed by 18 months in Dubai, during
which he visited countries throughout
the region.
18 PwC
Over the past decade, the meaning and While the concepts of CR, stakeholder
importance of ‘corporate responsibility’ interests and sustainability have taken
have undergone a rapid and decisive a decade or more to reach the business
transformation. Once largely associated mainstream, their collective impact is
with acts of corporate philanthropy, CR now revolutionary. Because business
now serves as a set of implicit standards impacts society at so many levels, society
that help to determine how a business in turn claims a degree of authority in
should be run, the types of activities in granting or withholding each business’s
which it should and should not engage, ‘licence to operate’. Also, while profits,
and even whether it should exist at all. job creation and innovation are still
This profound shift has seen a host of important measures of a business’s
new issues – environmental concerns, contribution to society, the fact is that
societal needs, employee development governments, activists, academics and
and well-being, ethical marketplace
practices – muscle their way to the top
of the corporate agenda.
CR now serves as a set of implicit standards that help
With the rise of CR, business people to determine how a business should be run, the types
have realised that their ‘stakeholders’ – of activities in which it should and should not engage,
a term once deemed almost synonymous
with ‘shareholders’ – are now a far larger
and even whether it should exist at all.
and more diverse grouping than ever
previously imagined. consumers now apply wider and more
complicated measures of a company’s
Alongside the redefinition of ‘stakeholder’, worth and purpose. Issues regarding
another recent coinage has joined the climate change, water use, worker
mainstream business vocabulary: exploitation, resource depletion and
sustainability. While definitions vary, environmental degradation are now
sustainability is generally regarded regularly laid at the door of the business
as a demonstration of the sorts of community. Pleas by businesses to
corporate behaviours that satisfy simply ‘trust us’ are now met by the
a business’s present requirements blunt reply, ‘show us’.
without compromising the needs of
future generations. Of course, the argument that these sorts
of environmental and societal problems
So sustainability obliges businesses to result from a rapacious business culture
find ways to continuously renew and is simplistic, and ignores the huge
replenish the resources they consume. contributions that business makes to
These resources are many and varied: society every day. More immediately,
raw materials and energy; human it misses the point that the knowledge,
and intellectual capital; and the trust capabilities and good intentions of the
and goodwill of trading partners, business world will be indispensible in
governments and society at large. finding solutions to these problems.
No longer can any company afford
to mismanage or misuse any of these This latter point is not lost on business
limited resources. executives. Many of the world’s leading
enterprises are already working hand-
in-hand with governments, regulators
simply ‘trust us’ are Today, the same applies with corporate
responsibility, stakeholder engagement
and sustainability. That’s why PwC has
Youth education
Climate change
Social inclusion
20 PwC
Taking a leadership role
22 PwC
Ms Fikile Zikhali, a trainee of the Ujima
Bakwena Co-operative, is one of the many
women to have benefitted from the Faranani
Rural Women Training Initiative.
To support this agenda, PwC Austria Small businesses form the backbone
collaborated with the United Nations of the South African economy,
Office on Drugs and Crime (UNODC) and women own a growing number
to produce a report into what companies of these enterprises. Faranani
in the Fortune Global 500 are doing to supports women who want to become
fight corruption. The report provides business-owners, by providing them
an overview of the direct and indirect with the knowledge to start and
measures that companies have adopted actively manage their own businesses.
to combat corruption and economic This year, to promote the empowerment
crime, including extortion, bribery of all women, PwC South Africa invited
and other forms of fraud. Rather than various organisations to nominate
commenting on companies’ anti- suitable candidates to undertake the
corruption performance, this report training course.
is designed to act as an inspirational
tool for companies that wish to adopt Thabani Jali, Executive Chairman of
and enforce effective anti-corruption PwC Southern Africa, says: “PwC helped
policies but lack the necessary these women acquire the skills they
‘know-how’, or that wish to review need to generate their own income
and enhance their existing practices. and become meaningful contributors
to their communities and the country.
The report is expected to stimulate We extend sincere and prosperous
further debate and analysis, leading good wishes to these women as they
to the identification of minimum use these skills to create a better life
standards and good practices for for themselves and their communities.”
corporate anti-corruption policies and
measures. UNODC has acknowledged
the contribution made by PwC Austria,
on a pro bono basis, for the benefit
of the private sector.
24 PwC
We have moved to using
66%
renewable energy
PwC Australia
7,058 hours
volunteering in their communities
during FY 2010
PwC China/Hong Kong
20,000
entrepreneurs successfully trained
PwC South Africa
26 PwC
It is the breadth and consistency Legal structure, ownership and
of our network that differentiates network arrangements
PwC among the world’s leading Network arrangements and
professional services organisations. member firms
In most parts of the world, the right
The PwC network has a set of standards to practise audit and accountancy is
with which all PwC member firms agree granted only to national firms that are
to comply. These standards cover key majority-owned by locally qualified
areas such as independence and risk professionals. PwC is a global network
management, people management, of separate member firms, owned and
It is the breadth and brand and communications. operating locally in countries around the
world. PwC member firms are members
consistency of our network In order to use the PwC name, PwC of PricewaterhouseCoopers International
that differentiates PwC member firms agree to follow network Limited and have the right to use the
among the world’s leading standards and be subject to periodic PricewaterhouseCoopers name.
reviews. PwC member firms’ compliance
professional services with the standards of the network is The network provides a platform
organisations. monitored regularly. on which member firms can share
knowledge, skills and resources,
We believe in the principle of enabling PwC member firms to
transparency. In this chapter we work together to provide high-
share some detail of the PwC network’s quality services on a global scale to
organisation, standards and processes, international and local clients while
including specifics in relation to still operating as local businesses.
independence, remuneration and
continuing education. PricewaterhouseCoopers
International Limited
PricewaterhouseCoopers International
Limited (PwCIL) is a UK private company
limited by guarantee in which PwC
firms are members. PwCIL does not
provide services to clients. It also neither
manages nor controls PwC member firms.
Its primary activities are to: identify
broad market opportunities and develop
associated strategies; strengthen
internal services, skill and knowledge
networks; promote the PwC brand;
and develop and support application of
common risk, quality and independence
standards by PwC member firms.
Strategy Council
The Strategy Council, which is made
up of the leaders of the largest PwC
member firms, agrees changes in the
Standards and internal quality The way we do business
strategic direction of the network and
control systems PwC member firms conduct their
facilitates alignment in the execution
A member firm’s membership in the PwC businesses within the framework of
of strategy.
network depends on its implementation applicable professional standards,
of common standards. Every PwC laws, regulations and internal policies.
Network Executive Team
member firm is fully responsible for These are supplemented by a Code of
The Network Executive Team reports
its own risk and quality performance Conduct for their partners and staff.
to the Network Leadership Team and
and, where necessary, for driving
coordinates key service line and
improvements. To support transparency PwC people have an obligation to
functional areas such as Risk and
and consistency, each member firm’s know, understand and comply with
Quality, Human Capital, Operations,
Territory Senior Partner signs an annual the guidelines contained in the Code
and Brand and Communications
confirmation of compliance with certain as well as the values – Excellence,
across the PwC network.
standards. As stated above, these cover Teamwork and Leadership – on which
a range of areas, including independence, the guidelines are based.
ethics and business conduct, Assurance,
Advisory and Tax risk management, Sustainable culture
governance and data protection To promote continuing business success,
and privacy. PwC member firms nurture a culture
that supports and encourages all PwC
There are some common processes people to do the right thing, especially
to help member firms apply the when they have to make tough decisions.
standards. Key elements include: PwC people have ready access to a wide
array of support networks within their
• the way we do business
respective member firms – both formal
• sustainable culture and informal – and technical panels to
help them reach appropriate solutions.
• quality policies and processes
There is also a culture of cooperation
• quality reviews between member firms, and consultation
supports this culture.
28 PwC
Quality policies and processes professional standards. This includes
Methodologies and materials Each PwC member firm has policies carrying out independent reviews at
are designed to assist member that are based on global standards. the management level of a member
Member firms also have access to a firm’s systems and procedures, and
firm partners and staff. number of common methodologies and monitoring whether each member
supporting materials for many services; firm conducts objective quality control
these methodologies and materials are reviews and engagement reviews
designed to assist member firm partners consistent with the member firm’s
and staff. Each client engagement partner and PwCIL’s established processes.
is responsible for selecting partners and PwCIL also monitors whether a member
staff for a particular engagement with firm has appropriately identified
the appropriate professional competence significant risks to the PwC brand,
and experience. strategy and network.
30 PwC
162,000
With some 162,000 people across
PwC’s member firms, providing
The successful execution of PwC member
continuous education throughout
firms’ partner income arrangements,
including delivery of actual rewards,
each professional’s career is a
hinges on a balanced scorecard evaluation
against individual and team objectives.
major challenge. Mechanisms
The performance-rewards structure
respects the regulatory environment have been put in place at all levels
in which PwC member firms operate,
and each PwC member firm maintains to help achieve this goal.
and operates a separate compensation
system for both its partners and staff.
Continuing education
The PwC approach to learning and
There are also focused programmes With some 162,000 people across PwC’s
education (L&E) is to provide access to
for people with special roles or who member firms, providing continuous
a wide curriculum of courses developed
serve clients with unique characteristics. education throughout each professional’s
to global standards, while also providing
These individuals include Quality Review career is a major challenge. Mechanisms
support for member firm L&E leadership
Partners; people leading multi-location have been put in place at all levels –
and fostering personal accountability
audits or engagements with shared individual, member firm and network –
for continuous education.
service centres; and those serving clients to help achieve this goal. PwC member
around the globe who are listed on US firm L&E leaders are responsible for
PwC member firms are committed to
stock exchanges. reporting their training plans for the
delivering quality audits around the
year and, at year-end, their actual
world. To help them do this, a common
Key areas of focus in the past year have delivery of training to the target audience
curriculum gives Assurance practitioners
included the development and roll-out for each programme.
within PwC member firms, as well as
of training on PwC’s new audit platform
specialists in Advisory and Tax who
(known as Aura), the continued
provide audit support, access to courses
enhancement of an International
covering the PwC audit approach and
Financial Reporting Standards (IFRS)
tools, updates on audit and accounting
curriculum, and the establishment
standards and their implications, and
of a number of research projects so
areas of audit risk and engagement quality.
that training within PwC evolves and
Courses are developed using best-practice
improves, and meets the needs of the
learning designed to meet the needs of
practice in the current environment.
practitioners. Solutions vary in method
from e-learning to classroom courses
that give practitioners the opportunity
to sharpen their professional judgement
by sharing insights and experiences
with their instructors and peers.
32 PwC
Revenues
Figure 1: Aggregated revenues of PwC member firms by service line (US$ millions)
Overall, gross revenues for the 12-month
period were up slightly at US$ 26.6 FY10 FY09 % change % change
at FY10 at FY09 at constant
billion at constant rates of exchange.
ex. rates ex. rates ex. rate
At variable exchange rates, FY 2010
Assurance 13,273 13,290 -1.3% -0.1%
global gross revenues grew 1.5%.
Advisory 6,206 5,668 7.9% 9.5%
PwC global revenues reflect the Tax 7,090 7,213 -2.9% -1.7%
realisation by PwC firms of the need to Total 26,569 26,171 0.3% 1.5%
manage through the recession without
FY10 revenues are expressed in US dollars at average FY10 exchange rates. FY09 revenues are shown at average FY09
losing sight of the potential for growth exchange rates for continuing operations. Gross revenues are inclusive of expenses billed to clients.
in the recovery. Fiscal year ends 30 June.
FY09 revenues have been reallocated between service lines to reflect the current organisation.
After a slow start, overall performance
improved consistently over the course
of the fiscal year. Demand for services
late year improvements in both the
was up slightly, especially in the
consulting and deals sectors, as well
emerging markets, though it was
as the acquisition in FY 2009 of the
offset by a relentless pressure on rates.
BearingPoint advisory businesses in
Additionally, many PwC firms maintained
the US and Japan. Overall, revenues
leading positions in their markets, an
from consulting grew by 15%.
indication of the strength and depth
We anticipate that Advisory will
of the PwC network.
continue to be a prime source of future
growth for PwC firms, both through
Among the lines of service, PwC’s
organic expansion and continued
Advisory business returned to strong
strategic acquisitions.
growth in FY 2010 with revenues of
US$ 6.2 billion, up 7.9% from the previous
Global revenues in our flagship Assurance
12 months. Advisory results reflected
practice held up well, given the economic
conditions, at US$ 13.3 billion. Despite
the sluggish economy, demand for
Assurance services rose slightly, but
was more than offset by pricing pressure
in a fiercely competitive marketplace.
Our Assurance practice also continued
to make investments in service quality.
FY09 and prior year revenues have been reallocated between service lines to reflect the current organisation.
34 PwC
Figure 4: Aggregated revenues by industry sector (percentage of revenue)
Technology 6.4
Insurance 5.3
Automotive 3.0
Healthcare 2.4
By delivering services through a number
of industry sectors, we are able to draw
Professional services 2.3
upon our latest thinking, research and
expertise to help clients bring increased
value to their businesses. Looking at PwC
firms’ revenues on an industry basis,
there were particularly encouraging
results in banking and capital markets,
pharmaceuticals and life sciences, and
government and public sector.
17%
53% 54% 53% 45%17%
54% 45%
PwC non-audit PwC non-audit 30% 29%
client companies client companies
in index/list in index/list
17% 17%
PwC audit 17%
client companies in index/list PwC non-audit
17%
54% 30% 45% 29% 30% 26% PwC client
audit
companies
client companies
29%PwC
29%
in index/list
in index/list
All other PwC
companies
non-audit
26% in
46%index/list
client companies in index/list
29%
All other companies
30% in index/li
PwC non-audit non-audit
client companies client companies
in index/list in index/list
53%Asia 50
S&P S&P Latin
54% 53%
America 40 45% 54% 45%
PwC audit client companies in index/list PwC non-audit client compan
46%
PwC non-audit client companies in index/list 30% 46%
All other companies in index/list 28% 30% 28%
PwC non-audit PwC non-audit
client companies client companies
in index/list in index/list
Audit clients include both sole and joint audit appointments. Other clients disclosed as companies where PwC revenues exceed 500,000 US$ in FY10.
36 PwC
Clients
Figure 6: PwC member firms’ aggregated revenues by size of client
Around the world, clients rely on PwC
to help them explore opportunities
Client company revenues greater
and deal with complex business
than or equal to 10 billion US$
challenges. We work closely with 27%
them to create value and help them
Client revenues less 49%
succeed, tapping into the breadth of
the PwC network and our in-depth than 250 million US$,
including not-for-profit, 24%
industry expertise.
government and
public sectors Client company revenues less
The clients of PwC member firms
than 10 billion US$ and greater
around the world range from the than or equal to 250 million US$
largest and most complex organisations
to innovative entrepreneurs. Services Estimates based on market data representing 98% of aggregated revenues of PwC firms in FY10.
Client company revenues as reported by public record.
are tailored to match the needs of
all clients, depending on their size,
location and specific needs.
41
Insurance
87
Retail & 26
consumer 80
24
Technology
97
161,718
Partners 8,625 8,552 8,603
Client service staff 122,967 123,548 116,935
Practice support staff 30,126 31,445 30,155
Total 161,718 163,545 155,693
38 PwC
Figure 10: PwC people by lines of service
Support staff
13%
Tax
22% 45%
Assurance
20%
Advisory
Asia 20%
6% 6%
South and Central America Middle East and Africa
24%
North America and the Caribbean
Sources: China (Universum Graduate Survey), Czech Republic (Trendence Survey), Germany (Trendence
Survey), Poland (AIESEC survey), Sweden (Universum Graduate Survey), Switzerland (Universum Graduate
Survey), United Kingdom (The Times Student Survey of top Graduate Employers), United States (Universum
Graduate Survey), Pan-European (Universum Graduate Survey), Global (Global Universum Survey).
40 PwC
Diversity & Inclusion at PwC In 2010, PwC has been named a ‘Top
DiversityInc, a leading Our goal is to leverage the diversity Company for Global Diversity’ for the
publication on diversity of the 162,000 people in PwC firms third year in a row by DiversityInc,
to provide a distinctive experience a leading publication on diversity in
in the workplace, selected for our people and clients. To achieve the workplace. DiversityInc selected
PwC for being at the this aim, we need to be relentless in PwC for being at the forefront of
forefront of awareness our drive to enhance our cultural awareness training and mentoring.
dexterity. We define ‘cultural dexterity’ The PwC firms in France and Malaysia
training and mentoring. as the ability to work effectively across were also named as the top companies
all differences – including gender, for exceptional progress of women to
age, ethnicity, nationality, and indeed leadership roles and tone from the top.
personality and thinking style.
Cultural dexterity is an amalgamation PwC’s Gender Agenda blog was featured
of skills that includes self-awareness, in a Washington Post article in August
understanding, openmindedness 2010 on women’s networks. “The very
and empathy. best women’s initiatives engage people
in multiple formats. Given decentralized,
PwC’s Global Diversity & Inclusion global workforces, the in-house
Council (GD&I Council) works across ‘lunch and learn’ is no longer enough.
the PwC network to identify globally PricewaterhouseCoopers has managed
relevant actions that will enhance the to continue the conversation with men
cultural dexterity of our people and and women through a multifaceted
teams, and help advance a diverse range blog, which sends a powerful message
of people to leadership roles. Examples that PwC’s Global Gender Advisory
of these actions include our leadership Council provides advice on the issue
diversity awareness training. of diversity directly to PwC’s Chairman,
Dennis Nally.”
We focus on all dimensions of diversity
at the network level, including gender. Additionally, we work with organisations
We are proud of what we have achieved such as Catalyst, Diversity Best Practices,
but continuously seek to improve. Working Mother, Opportunity Now,
the Women’s Forum for the Economy
At this year’s World Economic Forum and Society, and the World Bank on
in Davos, Dennis Nally, Chairman programmes to support, develop and
of PricewaterhouseCoopers International, retain our people. Around our network
participated in a CNBC televised panel we continue to invest in mentoring
debate with CEOs, journalists and schemes, role modelling and networking
academics, entitled ‘The Gender Agenda: groups, and coaching and awareness
Why Sex Matters’. The panel called training programmes. Details can be
for a renewed sense of urgency around found at www.pwc.com/women.
women’s global economic participation, as
well as increased mobility and flexibility.
Global mobility
Moving our people to Moving our talented people to different We continue to invest heavily in
locations around the world to match client our global mobility programme.
different locations around and business needs is key to enabling us In FY 2010, we added another 1,600
the world to match client to offer the right expertise at the right new participants to our secondment
and business needs is key to time. An experience abroad also develops programme, up from 1,400 in FY 2009.
the global business skills and international As the economic recovery gathers
enabling us to offer the right experience of our people. During the pace, we anticipate a further increase
expertise at the right time. past year, some 2,700 partners and staff in opportunities for our people to gain
(2009: 2,866) from PwC member firms an experience abroad in FY 2011.
in 94 countries (2009: 100 countries)
were transferred internationally or were
posted on short-term and long-term
international assignments.
42 PwC
Development programmes business today. Competing views are
The same principles of Genesis Park: Developing global debated, with a strong emphasis on the
empathy, collaboration, business leaders importance of examining issues from
Companies operate today in an multiple perspectives. Participants also
relationship-building increasingly complex, fast-moving and undertake strategic projects dealing with
and service described by globalised business environment. Such high-priority business issues in which
the PwC Experience are an environment demands leaders with project teams must demonstrate a strong
the intellectual rigour and strategic vision commercial sense and take into account
also embedded in our to set a broad global agenda for their the implications of their recommendations.
methods and curricula. businesses, combined with the ability
to motivate and bring cohesion to a While teaching ‘hard’ business skills
culturally diverse and geographically is an important part of our mission,
dispersed workforce. Genesis Park also focuses on developing
the kind of emotional intelligence that
Genesis Park, PwC’s flagship leadership is at the heart of the PwC Experience.
development programme, is focused The principles of empathy, collaboration,
on developing these kinds of global relationship-building and service
business leaders. described by the PwC Experience are
also embedded in our methods and
The Park focuses its efforts on PwC curricula.
staff members from PwC firms around
the world who are recognised as high In 2011, Genesis Park will change to
performers and have demonstrated clear a ten-week residency programme
leadership potential. First established operating from April to October in three
in 2001, Genesis Park now has over 500 cities around the world: Singapore,
alumni from more than 40 countries. Boston and Warsaw. These sites will
With the participants’ diverse mix of change annually. Genesis Park will
nationalities and backgrounds, Genesis now be mobile and will involve a global
Park is able to simulate the challenges faculty – including from the host country
of working across a global organisation. – as well as global participants.
In this way, we expose participants to
different cultural and working styles – Serving 120 to 150 participants annually,
and more importantly, help them to a significant number of PwC’s key talent
embrace these differences so they can will become distinctive global leaders,
operate effectively as a team and learn able to deliver to clients with a truly
how to create tangible value for clients. global mindset.
44 PwC
PwC Open University Corporate responsibility
We wanted to extend that Launched in June 2010, PwC Open in numbers
learning opportunity to our University is a first-of-its-kind corporate PwC member firms around the world
educational resource that provides engage with their local communities
clients, future employees and business executives, faculty, students in many different ways, to make a real
the business community. and regulators around the world free difference. During FY 2010, the level
access to an expansive and growing of donations we made to charitable
library of award-winning training organisations, the number of hours of
courseware developed by PwC. Today, free or heavily discounted professional
visitors will find over 150 courses services we provided to community
spanning multiple industries and topics, organisations, and the amount of time
many of which are CPE (Continuing our people spent volunteering in the
Professional Education) eligible. community were once again very
good, despite the difficult economic
“As we continue to become a more conditions. This reflects our strong
recognised provider of learning and commitment to playing a leading role
education to our employees, we wanted in achieving a sustainable future and
to extend that learning opportunity to helping to create the sort of value that
our clients, future employees and the will benefit generations to come.
business community,” explains Mitra
Best, PwC US Innovation Leader.
Figure 14
Giving (US$)
FY10 310,173
FY09 350,000
FY08 253,000
Volunteering hours
FY10 213,145
FY09 226,000
FY08 208,576
46 PwC
Network Executive Team
48 PwC
PwC firms provide industry-focused assurance, tax and advisory services to enhance value for their clients. More than 161,000 people in 154 countries in firms across the PwC
network share their thinking, experience and solutions to develop fresh perspectives and practical advice. See pwc.com for more information.
“PwC” is the brand under which member firms of PricewaterhouseCoopers International Limited (PwCIL) operate and provide services. Together, these firms form the PwC network.
Each firm in the network is a separate legal entity and does not act as agent of PwCIL or any other member firm. PwCIL does not provide any services to clients. PwCIL is not
responsible or liable for the acts or omissions of any of its member firms nor can it control the exercise of their professional judgment or bind them in any way.
The 2010 PricewaterhouseCoopers Global Annual Review has been printed at a carbon neutral ISO 140001 accredited plant using Forest Stewardship Council (FSC)
accredited paper stock.
www.pwc.com/annualreview