KPMG Annual Report 2015

ClarityAnnual ReportKPMGSwitzerland2015

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2ANDFACTS

FIGURES

02 Management summary

06 Client voices

10 Market positioning

12 Audit 14 Tax 16 Advisory 18 Financial Services

20 Interview with Stefan Pfister

26 Digital network

28 People

30 Talents

32 Corporate social responsibility

34 When global is local

38 Revenues 2014 / 15

40 Portfolio

42 Quality and Risk Management

44 Board of Directors and Executive Committee

46 Partners

48 Locations

49 Masterhead

ClarityAnnual ReportKPMGSwitzerland2015

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Annual Report 2015 KPMG Switzerland

C O N T E N T

NET REVENUES BY FUNCTIONIN CHFm

200,0197,6

80,4109,8 116,085,9

AUDIT

2015

AUDIT 2014

TAX 2014

ADVISORY 2014 TAX

2015ADVISORY

2015

+ 6,9%+ 5,6 %

+ 1,2 %

2

M A N AG E M E N T S U M M A RY

Net revenues rose to CHF 401.9m (+3.6%) while gross revenues increased substantially to CHF 541.0m (+8.9%).

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4

M A N AG E M E N T S U M M A RY

KPMG once again delivers outstanding results

In the past fiscal year, KPMG Switzerland has once again delivered strong results, with all functions contributing to the record figures. Net revenues were increased to CHF 401.9m (+3.6%), while gross revenues rose to CHF 541.0m (+8.9%).

Audit influenced by the SNB decision Audit increased net revenues to CHF 200.0m (+1.2%). The main drivers for these impressive results were the SNB decision from 15 January 2015, together with state-of-the-art technology and data & analytics: Audit supported a number of clients in assessing the consequences of new international business processes, and is increasingly able to perform audits centrally.

Tax under the spell of transparency and compliance With net revenues of CHF 116m (+5.6%), Tax outperformed the prior year’s results. One reason for this exceptional achievement was the demand for consulting services due to the Swiss Corporate Tax Reform III and the new Base Erosion and Profit Shifting (BEPS) regulations, as well as other increasingly strict transparency and compliance requirements. The developments in transfer pricing, indirect taxes and international assignments for employees were additional growth drivers.

Advisory shaped by new regulations, technological developments and M&AAdvisory was once again able to exceed the prior year’s results, generating net revenues of CHF 85.9m (+6.9%). This was due in part to the comprehensive digitization across all sectors, the growing threat of cyber crime and stricter regulations. Despite a restrained Swiss M&A market, deal advisory was in high demand. Clients also looked to us for support in finding optimization potential within value and supply chains.

Important investmentsIn the year under review, KPMG made major investments in its future, promoted both national and international initiatives, and made a number of acquisitions. Furthermore, KPMG made substantial investments in the recruitment of new talent and highly qualified specialists, and accelerated growth programs at all KPMG regional locations across Switzerland.

We would like to thank our clients, employees and business partners – these exceptional results would not have been possible without them.

Stefan PfisterCEO KPMG Switzerland

Stefan PfisterCEO KPMG Switzerland

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6

C L I E N T VO I C E S

The Swiss private banking industry is experiencing unprecedented changes: tax transparency, increasing costs and complexity in cross-border business, new regulations and price pressure. While Banque SYZ is not immune to these challenges, standing still is not in our DNA. We want to play an active role in the shaping of the future of the private banking industry and in the ongoing market consolidation. The acquisition of

RBC (Suisse) SA allows us to expand into complementary high-growth emerging markets, leverage our state- of-the-art IT platform and increase our client base to become one of the 20 largest private banks in Switzerland. KPMG’s integrated Deal Advisory team provided M&A lead advice, due diligence, regulatory and tax services, working hand in hand with our team for almost a year to make this deal happen.

BA N K SY Z

Eric Syz, CEO

HAND IN HAND FROM START

TO FINISH


7

8

C L I E N T VO I C E S

We have a long-standing and trusted relation-ship with KPMG, which has helped ABB continue to develop its business and to overcome challenges. KPMG has supported ABB with acquisitions that have been critical to our growth, as well as with the efficient

divestment of several non-core businesses in 2014. More recently, KPMG has been instrumental in helping ABB to transform its IT landscape, specifically in the area of sourcing IT suppliers, which has resulted in savings of tens of millions of dollars.

A B B G ROU P

Ulrich Spiesshofer, CEO

SUPPORTING TRANSFORMATION

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The challenges facing companies today demand a dynamic, forward- looking auditing process and multi-disciplinary consultants who have clear opinions on complex issues. These are the prerequisites for creating offers that provide clients with innovative and results-oriented solutions in Audit, Tax and Advisory and make KPMG the provider of choice in changing markets.

KPMG has the necessary expertise to bring all of the right people to the table and create networks and alliances relating to political issues, regulatory debates, commercial trends and future development forecasts. These include strategy, business transformation, regulatory compliance, cyber security, and data & analytics.

Clients require KPMG auditing and advisory services in order to increase trust in their business models and globalized markets. They want to know how they can best respond to regulatory challenges, cost pressure and increased competition. At the same time, they want to enjoy the advantages of Switzerland’s stability as a financial and industrial center.

What influences markets?

KPMG Switzerland is an independent firm within the international KPMG network and a hub for global, multidisciplinary advisory services for international and Swiss clients.

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M A R K ET P O S IT I O N I N G

AdvisoryKPMG supports companies doing business in a dynamic environment shaped by globalization and growth. We enable these companies to take advantage of opportunities and manage risk. Legal requirements and the issues of compliance and governance are key. Questions about digitization and the associated data security needs are becoming increasingly important. Thanks to our wide range of services, we can create a team of experts in areas such as economic or regulatory issues, transactions, legal regulations and IT.

TaxCompanies are looking for opportunities to increase the tax efficiency of their business operations. With our tools, technologies and processes, we help our clients to optimize their tax situations in line with national and international tax regulations. Our international expertise ensures that tax issues are considered from a variety of perspectives, including risk. Today, tax questions are increasingly on the board agenda and form an integral part of sustainable financial company management.

AuditIntegrity, independence and quality are the main principles that guide our auditors through the auditing process. At the same time, they take a different approach to the clients’ requirements depending on the individual industry or legal entity. Based on these requirements, we form teams of experienced generalists and special-ists. As auditors, we focus on more than just numbers; we also consider our clients’ information and security requirements. We support companies with individual services that extend far beyond the audit.

International and regional clientsKPMG Switzerland advises international companies – generally medium and large enterprises – as well as regionally based SMEs that, as the backbone of the economy, play a major role in the country’s economic success. Alongside quality and

industry expertise, close relationships with our clients are of the utmost importance to us. We work with them and with their requirements to develop tailored audit, tax and advisory solutions in accordance with independence regulations.

glo

bal

netw

ork local con

ne

ctio

ns

consistent client

focu

s

“ Our multidisciplinary solutions create a sustainable value proposition for Switzerland’s position as an economic center ”

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Multidisciplinary teams with wide-ranging experience provide the best guarantee for the provision of optimal auditing and advisory services to clients. KPMG invests a lot in the further training of its employees. Thanks to our strong local and inter-national networks, we can offer clients proven expertise in all key areas.

The fact that KPMG has been able to increase its market share in the highly competitive audit sector during 2015 confirms our approach. Especially in an environment characterized by

needs to guarantee the functioning of company processes at all times, including during complex restructuring. In our role as auditor, we make a key contribution by critically assessing our clients’ work: Do the executive committees and boards of directors have the right decision-making bases at their disposal? Do they have access to the necessary information to, for example, accurately assess the conse-quences of restructuring or relocation measures? During 2015, KPMG was increasingly occupied with these questions.

ompanies do not stand still. As well as developing their products and services, they

must constantly review their internal organization and check cost structures. They have to seek out process optimizations and consider geographic relocation. At many companies, the decisions made by the Swiss National Bank acted as a catalyst for strategic deliberations. As an auditing firm, KPMG was at the heart of the action, working even closer with our clients due to the extraordinary situation. Ongoing monitoring of important data

C

Lukas MartyHead of Audit

WHY TRUSTIS A MUST

The abandonment of the CHF / EUR exchange rate floor and the introduction of negative interest rates by the Swiss National Bank greatly influenced the economic environment in 2015.

For many companies, these decisions triggered a sense of uncertainty. It has thus been all the more important to provide clients with clarity, confidence and security.

The fact that KPMG has succeeded in increasing our market share in what is a fiercely competitive audit sector confirms our outstanding service quality.

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AU D IT

economic uncertainty, the most important drivers of our success are the provision of audit services tailored to our clients’ specific needs and the process of technological change. The latter is also behind the international consolidation of many of our clients’ business processes. Small and medium-sized enterprises are increasingly bringing together core and support processes in a small number of global shared service centers. This has a decisive impact on organizational structures.

During such wide-reaching changes, KPMG examines new processes and

200.0 CHFm

NET REVENUES2015

+ 1.2 %

controls as well as the integrity and security of data. An IT infrastructure organized in a globally uniform manner allows for centralized auditing, leading to more consistent and meaningful findings. KPMG provides companies with certainty during times of change.


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boards of directors would be well- advised to address. They need to under-stand their company’s tax structures in order to have full control over this potential risk to their reputation. And they have to recognize the oppor-tunities and the risks that the Swiss Corporate Tax Reform III will present.

Despite this turbulent environment, the fiscal year 2014 / 15 was a successful one for Tax. Our positive result is due to several main drivers: ensuring tax and legal compliance of corporate and private clients, support with global

to develop a comprehensive catalog of measures, and individual countries are already introducing new BEPS regula-tions regardless of the political process involved. Stricter transparency rules are also leading to new requirements in terms of financial reporting.

Today, tax matters are under increasing scrutiny from the media and the public, who relish the opportunity to examine the tax affairs of prominent figures or well-known companies. Tax has become a vital aspect of reputation for compa-nies and individuals, and a topic that

he stronger the economic ties that bind the world, the greater the requirement

for shared rules of play. Pressure on Switzerland’s taxation policies is partly down to the efforts individual countries have made to increase their tax revenues. Both factors have forced Switzerland to adopt far-reaching changes in recent years, and this process is not yet complete. Base erosion and profit shifting (BEPS), concerning the shifting of potentially taxable profits and transfer pricing between states, has led the OECD

T

Peter UebelhartHead of Tax

STATE OF PLAYThe tax sector is currently undergoing the greatest upheaval of the last 30 years,

as transparency continues to increase while special provisions are being abolished. Turbulence is also being felt in both individual and corporate taxation,

where the automatic exchange of information is beginning to take hold. Meanwhile, some points remain open regarding the Swiss Corporate Tax Reform III, which aims to bring the Swiss tax system in line with international rules.

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TA X

mobility services and outsourcing of other compliance and payroll services as well as optimization in accounting, including VAT.

KPMG is actively involved in the further development of the tax framework, while Switzerland continues to be well-positioned in the face of global tax competition – provided the Swiss Corporate Tax Reform III proves successful and effective. Competition will increas-ingly focus on ordinary tax rates, which will see tax competition

among cantons intensify, given the variation in tax rates between Swiss

regions. Companies headquartered in the cantons with higher tax rates will need to diversify their location mix in order to optimize their tax structures.

116.0 CHFm

NET REVENUES 2015

+5.6 %


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advisory services are valued on the market.

Besides rapid technological advance-ment, more stringent regulations, especially in the financial services and life science sectors, have led to a greater demand for advisory services. Moreover, US anticorruption regula-tions have increased the pressure on companies operating internationally. For the Swiss banks, the US sanctions, KYC quality and future regulations (money laundering, CRS) are especially an issue.

services – an important element in improving organizational processes for large companies. Digitization, however, is also a challenge in terms of (client) data protection.

KPMG harnesses the global knowledge of its experts and offers clients solutions from a single source adapted to local circumstances. Companies appreciate receiving advisory services that are precisely and comprehensively tailored to their requirements. The renewed growth of Advisory in the past year is testimony to how highly KPMG’s

igitization, which is becoming integral to ever more areas of finance and the manufac-

turing industry and thus changing the face of the whole economy, is becoming one of the most essential drivers for the advisory business. Meanwhile, the effects of digitization are impacting companies in quite different ways. Companies are optimizing their IT structures and working to develop and expand new and comprehensive supply chains. Growing costs, for example, neces-sitate the development of shared

D

A CHANCE FOR CHANGE

Cost optimization, M&A, cyber security and compliance were the most important drivers in the advisory business in the past year. Strategically intelligent positioning and

the innovative use of information and communications technologies will become increasingly important in terms of harnessing future potential.

Anne van HeerdenHead of Advisory

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A DV I S O RY

M&A activity reached an impressive volume in the past year, albeit not at the level of the prior year. These strategically driven purchases and sales of companies require audit as well as advisory services.

It is still unclear how the Swiss National Bank’s decision to abandon the minimum EUR / CHF exchange rate and introduce negative interest rates will affect companies in the long term.

85.9 CHFm

NET REVENUES2015

+ 6.9 %

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specific, creative and sustainable solutions. Here, solutions relating to the flexible use of sourcing models and aimed at improving cost / income ratios are increasingly taking center stage.

Particularly positive is the good prog-ress made in dealing with legacy issues. Measures aimed at creating tax transparency and implementing the too-big-to-fail legislation are also at an advanced stage. Banks are again increasingly focusing on the key topics of performance and growth, with

to risky business practices of the past. KPMG services were in demand as clients sought to contain these historical risks and make the required corporate governance advancements.

The rate of technological progress and digitization on the international financial markets has once again accelerated. The threat of cybercrime leaves financial institutions with no choice but to implement costly preven-tion strategies. At the same time, the sector’s digital transformation requires significant investment in company-

ollowing several difficult years, the financial sector’s new contours are gradually

emerging. In this tense market envi-ronment, Financial Services posted a solid result last year. An important driver here was the provision of support to clients during consolida-tion processes in the area of private banking. At a national level, KPMG provided advisory services in two out of three market-influencing transactions. The banking sector also continued to work with global regula-tors in order to resolve issues linked

TURBULENCE OR TRANSFORMATION ?

The process of change in the banking sector is in full swing, with more stringent regulations worldwide requiring adjustments. The sector also has to contend with a difficult

low-interest environment – a situation compounded in Switzerland by the SNB’s decision to abandon the CHF / EUR interest rate floor.

Philipp RickertHead of Financial Services

F

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F I N A N C I A L S E RV I C E S

free access to the EU market a vital prerequisite. In a globally regulated financial market, it is clear that this forward-looking approach will only be possible if based on compliant and tax-transparent business practices.

The insurance industry also faces many regulations and is primarily challenged by the low-interest environment in the life segment. Discussions are being shaped by the pension reform as well as the conversion rate, reference interest rate and new investment options.

The nonlife segment has proven to be very robust. Forward-looking develop-

ments, process optimizations and almost no major loss events are also all relevant factors. The M&A market was marked by a significant Swiss transaction – with KPMG closely involved. The process of consolidation is, however, not yet complete, with the various transactions on the rein-surance market being of note here. Insurers are also already dealing with the pending changes in the area of accounting and as regards solvency regulations.

40 % SHARE OF

NET REVENUES

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“ MY AIM IS TO BUILD A FOUNDATION UPON

WHICH THE NEXT GENERATION CAN BUILD. ”

Stefan Pfister

ceO kPmG sWitzerland

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I N T E RV I E W


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sporting events as a spectator, then to see an FC St. Gallen soccer game with my son.

KPMG You attended the Lucerne Festival as CEO of KPMG Switzerland at the end of August. Do you also attend cultural events in an unofficial capacity? Stefan Pfister Absolutely. My wife and I take a great interest in art and music. We are subscription holders at the opera house and regularly attend performances.

KPMG Are you a big reader? Stefan Pfister I read a book whenever I can find the time. I’m currently reading Martin Suter’s “Montecristo.”

Stefan Pfister from Eastern Switzerland has been CEO of KPMG Switzerland for around a year. During a conversation on the shores of idyllic Lake Constance, the CEO gave us a few insights into what he is like away from the office.

KPMG How? Stefan Pfister It keeps body and mind in shape. Keeping fit gives me energy – sport and exercise are key to my well-being and help me to come up with ideas and think clearly.

KPMG Do you participate in competitive events? Stefan Pfister Of course. Competing is the best way to motivate yourself to exercise at least fairly regularly. In fact, I’m traveling to Neuenburg after this interview to take part in the Swiss mountain bike orienteering championships.

KPMG Are you also a keen spectator? Stefan Pfister Not as much, I prefer to be actively taking part. If I do attend

KPMG You have now been working in corporate finance and real estate for over 15 years, and have been at KPMG since 2005. Do you ever have the urge to do something completely different, to start something totally new? Stefan Pfister Actually, that is exactly what I have been doing since I started at KPMG. My career at the firm really reflects that – no year at KPMG has been like the one before. My job offers more than enough variety.

KPMG What was your dream job when you were a child? Stefan Pfister Olympic champion.

KPMG Do you do a lot of sport? Stefan Pfister Yes, sport is a big part of my life.

AN EXCITING, ENERGETIC

AND ENJOYABLEYEAR

Stefan Pfister spoke to Can Arikan

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I N T E RV I E W

Stefan Pfister, CEO

KPMG Do you like his style? Stefan Pfister Well, Suter isn’t my favorite author, but he achieves a good mix of easy-to-read literature and the occasional passage that demonstrates real depth. But there are other books that I personally find much more enjoyable.

KPMG Such as? Stefan Pfister I have to confess that I particularly enjoy Scandinavian crime thrillers.

KPMG Speaking of far-off places: Where did you spend your last vacation? Stefan Pfister We rented a house on Corsica with friends and went on a family vacation there with the children. It was wonderful. The island’s characteristic idiosyncrasies give it an irresistible charm.

KPMG You mentioned your children. How important is family to you? Stefan Pfister My entire life revolves around my family. They are my sanctuary. They give me my zest for life and the energy I need for my work.

KPMG So you came home refreshed from your family vacation? Stefan Pfister Yes, definitely. But why do you ask?

KPMG Well, as CEO you must have to take your work home with you quite often. Stefan Pfister I have to be available around the clock. This essentially leaves me no option but to regularly take

work home with me. It’s important to fit my “ homework ” into fixed slots, and consciously set aside free time – for my family and for myself.

KPMG And that really works? Stefan Pfister It works really well! Lots of things fell into place quickly, especially since my wife noticeably limited internet access at our house – no more Wi-Fi in the living room.

KPMG What do you think of working from home, job sharing and other innovative work models? Stefan Pfister These are certainly issues that need to be looked at and taken seriously with regard to our

working world. For a company like KPMG, exploring flexible working models is vital. So these are definitely practices that we may implement.

KPMG In order to maintain a good public image? Stefan Pfister No, in order to respond to the growing demand for such models on the job market. Flexible models must, however, also be designed to cater to the requirements of the company. It is therefore important to decide each case on its own merits, and work out individual solutions where necessary. I’m really not a great believer in one-size-fits-all policies for innovative working-hour models.

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KPMG Do you like to consult others for advice or do you tend to make decisions alone? Stefan Pfister I don’t avoid consulting others as a rule, but the air has certainly become a bit thinner since I became CEO. There are various people I talk to on a regular basis, depending on the issue at hand. But there is no one person that I consult on everything.

KPMG What was your first year as CEO like? Stefan Pfister My first year was full of energy – I really enjoyed it. It was

challenging but also very exciting and a great learning experience.

KPMG And what is different from your previous job? Stefan Pfister Having overall respon-sibility rather than acting in a purely advisory capacity means that the range of tasks I undertake has become much broader, and I’m now faced with a number of new challenges. I also see things from a different perspective than I did before – I have much more of an overview of the whole company. The variety and diversity within the

KPMG Back to you: What has been your greatest success in your career to date? Stefan Pfister Without a doubt being elected CEO of KPMG.

KPMG And have you experienced any disappointments? Stefan Pfister I’m always disappointed when I find out that we have failed to win a contract. When our competitors win contracts that we tendered for, it always unleashes a range of reactions and emotions. But, ultimately, the experience of defeat is something that you can turn into positive energy.

KPMG How do you deal with disappointments? Stefan Pfister I try to learn something from them and strive to do better the next time round. That approach has always worked for me.

“ FOR ME, A HEALTHY SOCIAL LIFE

IS ESSENTIAL, AS FRIENDS SUPPORT YOU

AND KEEP YOU

GROUNDED. ”

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I N T E RV I E W

company is something that I’m now much more aware of.

KPMG So your perception of KPMG has changed? Stefan Pfister Well, I haven’t fundamen-tally changed my view – I was already convinced that I work for the best company, and that’s still the case now.

KPMG But? Stefan Pfister The scope of my work has become much broader, shifting from consulting to a much stronger focus on the “ worlds ” of auditing, regulatory consulting or legal and tax

consulting – which makes my new role really rewarding. In addition, as CEO, my focus is no longer just on Switzerland. I now view the company much more as part of the global network and have a better understanding of how the individual parts function as a whole. Working together with my fel-low CEOs from around the globe, I aim to find solutions for complex issues that go beyond national borders. In order to do this, I try to anticipate problems and challenges that we may face in Switzerland and that we can target and deal with more effectively as a wider group.

KPMG As CEO, you are a member of a large international network and have to travel a lot. Does your job allow you time to maintain friendships? Stefan Pfister Of course. For me, a healthy social life is essential, as friends support you and keep you grounded. My friends give me perspectives from outside of my professional milieu.

KPMG What have you been most impressed by since taking on your new role? Stefan Pfister More than anything, the high levels of motivation, passion and loyalty that I have witnessed from my Partners and the entire KPMG staff in my first year as CEO.

KPMG Have you had to change your approach to leadership since becoming CEO? Stefan Pfister No. Listening to, encouraging and challenging my team remain key.

KPMG So you haven’t changed at all? Stefan Pfister Well, I have certainly become more patient.

KPMG Final question: Where do you want to take KPMG as CEO? Stefan Pfister I want to make KPMG the Partner of choice for both our clients and employees, and to establish it as the best company in the industry within Switzerland. My aim is to build a foundation upon which the next generation can build and continue to succeed under the KPMG brand. Finally, I want to ensure that our employees are proud to work for this successful company.

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At the beginning of the twentieth century, Albert Einstein revolu-tionized our understanding of energy with what is surely the most famous formula in the world – E = mc ². If we apply this pioneering formula to today’s business world and ask ourselves how we can unleash entrepreneurial forces, we arrive at the formula P = kn ². It expresses our ardent belief that energy in the market arises from a combination of expert knowledge and a strong network. We want to increase this powerful force by actively promoting the secure use of social media in the company.

KPMG Expert BlogThe KPMG blog allows our experts to express their opinions on topics relevant to the market and to make their expertise accessible online.

blog.kpmg.ch

Visits in the fiscal year 2014 / 2015 approx. 125,000

P = powerk = knowledgen = network

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D I G ITA L N ET WO R K

Follow us

@KPMG_CH

KPMG AG

KPMG Switzerland

KPMG Switzerland

KPMG Switzerland

KPMG Switzerland

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Average age 34769 women 977 men

“He has the insight.”

Ewa BienkowskaConsultant, Tax

One thing is clear for KPMG: By creating sustainable value for our clients, we are able to make positive changes in the market.

NATIONALITIES ARE REPRESENTED AT KPMG IN SWITZERLAND

SWITZERLAND 70.4 %GERMANY 11.2 %

FRANCE 4.0 %ITALY 2.9 %

UNITED KINGDOM, USA EACH 1.6 %NETHERLANDS 1.1 %

AUSTRIA 1.0 %SPAIN 0.7 %

PORTUGAL 0.5 %POLAND, ROMANIA EACH 0.4 %

BELGIUM, GREECE, RUSSIA EACH 0.3 %AUSTRALIA, CANADA, HUNGARY, INDIA, LIECHTENSTEIN,

LUXEMBOURG, SLOVENIA, SWEDEN, TURKEY EACH 0.2 %BELARUS, BULGARIA, BRAZIL, CAMEROON, CHINA, COLOMBIA,

CZECH REPUBLIC, DENMARK, FINLAND, IRELAND, KENYA,KOSOVO, KYRGYZSTAN, LATVIA, LITHUANIA, MOLDOVA,

MOROCCO, NORWAY, PAKISTAN, SERBIA, SLOVAKIA,SOUTH KOREA, SOUTH AFRICA, TAIWAN, UKRAINE EACH 0.1 %

INTERNATIONAL EXPERTISE 49

44% 56%

33% women in leadership roles

HEALTHY HIGH PERFORMANCE

We strive to be the best in a fiercely competitive

market. That is why, to us, a culture of high

performance is a way of life. It means that we set ourselves the challenge of combining expertise and performance with social competence every day. We maintain an open, honest way of working

and make every effort to ensure we always consider

what our results mean to our clients.

L O NG

ES

T-S

ER

VIN

G EMPLOYEE J

OIN

ED

IN

1973 .

“She has the strategy.”

Christian HörlerSenior Manager, Audit

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P E O P L E

KPMG

144,473

183APPLICATIONS 7% MORE THAN IN THE PREVIOUS YEAR.

HOURS, OF TRAINING AND CONTINUINGPROFESSIONAL DEVELOPMENT

HOURS PER EMPLOYEE PER YEAR

UNIVERSITY GRADUATES JOINED KPMG SWITZERLAND.

IN THE 2014 / 15 FISCAL YEAR, KPMG SWITZERLAND RECEIVED

Our values

We lead by example. We work together. We respect the individual. We seek the facts and provide insight. We are open and honest in our communication. We are committed to our communities. Above all, we act with integrity.

76

nationwide

Success rate for 2015 diploma exam to become a Swiss Certified Accountant

Success rate for 2015 diploma exam to become a Swiss Certified Tax Expert

79% 70%

KPMG

50%

nationwide

45%

19,111

29


that affect the seconded employees of international companies. Rotations are possible in the following teams: Tax Compliance, Global Account Management, Technology, Swiss Tax Advisory, and Global Equity Consulting.

From 2016, an additional program incorporating both Audit and Advisory will also be offered, taking even better account of KPMG’s corporate strategy to provide different services from a single source. Participants on the

months as part of a base team and subsequently switch to two other teams for a period of three months each. These rotations allow them to get to know various individuals and subject areas and to develop a strong network within KPMG.

In fall 2015, KPMG launched the Global Mobility Services Graduate Program. It lasts one year and is aimed at univer-sity graduates wishing to deal with tax, legal and technology-related issues

Graduate ProgramsThe Advisory Graduate Program gives participants the chance to work with the world’s most innovative and successful companies and to take on responsibility at a very early stage. Graduates are given a permanent contract from the start and benefit from outstanding career prospects, international deploy-ment opportunities and an open and innovative working environment in a value-based corporate culture. The KPMG Graduate Program lasts one year. Participants initially work for six

“ Successful global networkers take every opportunity to meet and interact with fellow

students, potential employers and new contacts throughout their studies and career.

Networking is about making a personal connection with people – and practice makes perfect. ”

C I N D Y L O O T S

Director Forensic, Jury KICC

Young university graduates are often not entirely sure which career path they should take. The KPMG Graduate Programs provide talented young individuals with the opportunity to acquaint themselves with a variety of tasks at one of the world’s leading auditing and advisory firms. KPMG looks for young professionals who are very well qualified, show a high level of interest and aspire to deliver high performances as a member of the team.

TURNING HIGH POTENTIAL INTO

HIGH PERFORMANCE

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TA L E N T S

KPMGknowledge

four-year program will spend at least six months in Audit each year (during the busy season) and a minimum of four months in Advisory. The candidates will also complete training to become a Swiss Certified Accountant. The guaranteed rotation between Audit and Advisory ensures that KPMG satisfies the wishes of both students and clients. This opportunity for multi-disciplinary education and training is unique in the field of auditing and management consulting.

KPMG International Case CompetitionThe KPMG International Case Compe-tition (KICC) is another of KPMG’s measures aimed at nurturing young talent. Between 11 and 15 April 2016, KPMG employees and students from more than 25 countries will meet in Dubai to work on and discuss current cases. As part of the competition for the global title, the teams will present their results to a jury comprising KPMG Partners and Directors and gain valuable experience in an international business environment.

Cross-border expertiseOne of the reasons KPMG’s international network is so strong is because we regularly bring international experts to Switzerland and in turn send Swiss experts abroad.

University Award – Knowledge QuizOnce a year, the KPMG Knowledge Quiz seeks to find the university with Switzerland’s cleverest students. Questions about the economy, society, culture, sport and general knowledge have to be answered in an online quiz. Fun and excitement are guaranteed.

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As an auditing and advisory company, KPMG is closely connected to economic and social developments. KPMG feels it has a duty to society, particularly as it is society that provides companies in Switzerland with stable and largely business-friendly framework conditions. Social responsibility is an essential element of the corporate culture at KPMG. KPMG in Switzerland supports many institutions and activities, including:

OPéra de lausanne KPMG has been the main sponsor of the Opéra de Lausanne for more than 25 years. As well as opera productions, the Opéra de Lausanne also hosts ballet evenings and classical concerts.

opera-lausanne.ch

theOdOra children’s charityWe donated all proceeds from the Grand Prix KPMG at the Green Turf horse race in Dielsdorf to the Theodora Children’s Charity.

ch.theodora.org

el Bully and slOnikKPMG Luxembourg and KPMG Switzerland support “Île aux Clowns” in Luxembourg by distributing El Bully and Slonik characters (inflatable animals designed by Libuše Niklová) to bring some happiness to sick children in hospitals.

ileauxclowns.lu

kPmG and the cOmmunity

cOnnectiOn

32

C O R P O R AT E S O C I A L R E S P O N S I B I L IT Y

university Of zurichReto Eberle has been extraordinary professor of Auditing and Internal Control at the University of Zurich on a 50 percent part-time basis for the past three years. He continues to work as an Audit Partner at KPMG for the remaining 50 percent of his time.

university Of st. Gallen The KPMG Chair of Audit and Accounting at the University of St. Gallen, under the leadership of Professor Leibfried, focuses on practice-oriented teaching and applied research in the areas of accounting under IFRS and Swiss GAAP FER, auditing and corporate governance.

Universities

KPMG is engaged at several universities.

GivinG BlOOd

KPMG organizes a blood donor campaign at least once a year. All employees can volunteer to give blood during working hours.

kPmG fOundatiOnThe KPMG Foundation has supported valuable projects aimed at promoting education, integration and support for people in crisis situations since 2007. The foundation sent one-third of its funds to Nepal in 2014 following the devastation caused by earth-quakes in the region.

mentOrinG

Employees volunteer as mentors to support young people in difficult circumstances both before and during the early stages of their careers.

33


When global

is localKPMG worldwide

1 62,031 FTEs

9,137 Partners

700+ offices

As of 30.09.2014

3,071 Americas 2,127 Asia Pacific3,939 EMA

KPMG is a proven authority on the various economic regions. Thanks to their knowledge of both national and international sectors and markets, our specialists are qualified to offer clients optimum support in the fields of cross-border services in Audit, Tax and Advisory. With a dynamic concentration of experience and expertise, KPMG makes a major contribution to consolidating Switzerland’s position as an economic center. Every member of our global network benefits from our shared strengths while still maintaining cultural independence.

Ranking by net revenues (in CHFm) of the KPMG locations:

1. USA2. United Kingdom3. Germany4. France*5. Canada6. Australia*7. Japan8. China9. Netherlands*10. Italy11. Switzerland12. Africa13. Spain14. CEE15. IrelandAs of 30.06.2015 *Including sublicenses.

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W H E N G L O BA L I S L O C A L

• Geneva

• Lausanne

Neuchâtel •• Bern

• Basel

• Lucerne

• Lugano

• Zug

• Zurich• St. Gallen

• Schaan

KPMG Switzerland

1,746 FTEs

123 Partners

11 offices (incl. Liechtenstein)

As of 30.09.2015

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36

ANDFACTS

FIGURES


37

Revenues 2014 /15

Net revenues

Share of revenues Change 2015in CHFm

2014in CHFm

Audit 49.7 % 1.2 % 200.0 197.6

Tax (incl. Legal) 28.9 % 5.6 % 116.0 109.8

Advisory 21.4 % 6.9 % 85.9 80.4

Total 1,3 100,0 % 3.6 % 401.9 387.8

Gross revenues

Change 2015in CHFm

2014in CHFm

Total 2,3 8.9 % 541.0 496.8

People

Change FTEs 2015 FTEs 2014

Total FTEs as of 30 September 2015 7.4 % 1,746 1,625

KPMG Switzerland achieved record results in all functions and further increased its market share.

1 Net revenues refer to services rendered by KPMG Switzerland. 2 Gross revenues include out-of-pocket expenses and services of subcontractors

and other KPMG member firms charged through KPMG Switzerland.3 In the past fiscal year, the Regulatory Competence Center Financial Services

was moved from Tax to Audit. The figures for the previous year have been adjusted accordingly.

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FAC T S A N D F I G U R E S

40 %Financial Services

6 %Technology, Media

& Telecommunications

11 %Consumer Goods

& Retail

6 %Other

23 %Industrial

Manufacturing

14 %Infrastructure, Government & Healthcare

Total revenue for 2014 /15in CHFm

Net revenues by sector

+ 3,

6 %+

8,9 % Gross revenues 541,0

Net revenues 401,9

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Portfolio

A broad portfolioWe combine the benefits of a multidisciplinary firm with an efficient infrastructure to leverage synergies and optimize budgets. This enables us to provide services promptly, efficiently and above all in a client-oriented manner, while effectively supporting companies’ innovative capabilities.

Multidisciplinary servicesWe are driven by our clients’ needs and guided by the regulatory requirements. Our services range from audit, tax and consulting for major US-listed companies listed to tailored solutions for mid-sized businesses. KPMG’s multidisciplinary approach follows an important principle: Do not audit your own work. The Federal Audit Oversight Authority has issued clear guidelines regulating the compatibility of Audit, Tax and Advisory services. We have also defined internal procedures and guidelines that ensure independence and prevent conflicts of interest.

Innovation drives progress. Along with close client contact and industry expertise, successful innovation helps to ensure competitiveness. Customer needs and the market place are placing increasingly higher demands on companies in a situation compounded by burgeoning legislative requirements. At the same time, identifying suitable solutions poses more and more of a challenge. Our sound and comprehensive advice helps our clients find the right response.

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Services

Audit

Consulting

Swiss GAAP FER

IFRS

US GAAP

Global Assurance

Accounting rules as per the Code of Obligations

IPSAS

HRM2

Sarbanes Oxley Assistance Services

IARCS

Occupational benefits institutions

Corporate Tax

Financial Services Tax

Financial Management Anti Bribery & Corruption

Ethics & Integrity

Investigations

Forensic Technology

Sustainability and Climate Change

Buy

Sell

Fix

Fund

Partner

Disputes

Real Estate

IT Advisory

Supply Chain Management

German Tax & Legal Center

Global Transfer Pricing Services

Indirect Tax

International Corporate Tax

Global Mobility Services

International Private Clients

Tax Management Consulting

Legal

M&A Tax

Business Outsourcing Services

Forensic Deal Advisory

Tax Advisory

Health Care

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Quality and Risk ManagementCombining knowledge, adding value

The three function names Audit, Tax and Advisory stand for a wide variety of services provided by our highly qualified employees, all with extensive expertise, experience and a high level of commitment. Bundled as products, our services create added value for our clients. This added value depends not only on the skills of the individual team members, but also, and above all, on their ability to work together as high-performing multidisciplinary teams. We are committed to this approach as the best way to satisfy our own high quality standards as well as those of our clients and the wider public.

The audit is also a product of wide-ranging specialist knowledge. Good auditors have a profound understanding of their clients’ business models and sectors. They know the risks of the business, which allows them to develop their audit strategy. They consider which areas of the audit require a high degree of professional judgment and in-depth expertise and arrange the necessary specialists to complement the team. For instance, they might consult specialists with

valuation, IT or forensic know-how, tax experts or actuaries. These specialists draw on a wealth of valuable experience from their advisory mandates, which helps contribute to a sound basis for our audit opinion. Close coordination and a shared understanding of the scope, required procedures, appropriate documentation of the specialists’ work and reporting are of central importance. On a firm level, we create an environment that both safeguards and facilitates this collaboration.

Philipp HallauerHead of National Quality & Risk Management

42


Quality and Risk Management serving the public interestWhen it comes to audit, KPMG bears a great responsibility not only toward its clients, but also toward an extended group of investors and other stakeholders, as well as the general public. This applies particularly to the Audit function, but often to the Tax and Advisory functions as well. Our Quality and Risk Management consists of numerous processes, controls and activities designed to address this responsibility. Together, they ensure that we apply the necessary integrity, objectivity and quality in everything that we do.

You can find out more at kpmg.ch About KPMG Transparency Report

A new auditor’s report to create clarityTraditionally, the overall audit results have been presented to the recipients – often at the annual general meeting – in a report using standard wording. Only in the event of serious deficiencies or violations of the law would it be possible to deviate from that wording. The significant audit findings are presented to the board of directors in a comprehensive Auditors’ report. In the future (starting from the fiscal year 2016), auditors will be required to include in their reporting to the annual general meeting of public companies deeper insight into those areas that required considerable professional judgment and critical assessment on the part of the auditor. They will also have to report on the audit procedures selected in response to these matters. These reporting changes reflect new international regulations designed to make the audit of even greater public relevance. The new tailored reporting will also benefit from the added value of and insights from multidisciplinary collaboration.

“In the future auditors will be required to include in their reporting to the annual general meeting of public

companies deeper insight into those areas that required considerable professional judgment and critical

assessment on the part of the auditor.”

43


Roger NeiningerChairperson of the Board of Directors

Roger Neininger is a Swiss Certified Accountant and has been with KPMG since 1984. He became Partner in 1996. In 2009, he joined the Executive Committee and became Head of Audit and Deputy CEO. Roger Neininger was CEO of KPMG Switzerland from 2012 to 2014. He has been Chairperson of the Board of Directors since 2014.

Hélène BéguinMember of the Board of Directors

Hélène Béguin has been with KPMG since 1987. She qualified as a Swiss Certified Accountant in 1992. She is Head of Audit for Suisse Romande and responsible for the national market in Suisse Romande. In 2014, Hélène Béguin was appointed to the Board of Directors.

Stuart RobertsonMember of the Board of Directors

Stuart Robinson completed his training as a Certified Accountant at Heriot-Watt University and the University of St Andrews. Between 1999 and 2002, he was Head of the Transaction Services Team at KPMG Switzerland. From 2008 to 2010, he was Head of FS Transaction Services of KPMG Europe. Since 2011, Stuart Robertson has been Global Head of KPMG Transactions and Restruc-turing in the banking sector and manages global clients. He was appointed to the Board of Directors in 2014.

The leadership at KPMG is responsible for managing the firm and creating the ideal conditions to steer the company successfully in a market- and client-oriented manner.

Board of Directors

Board of Directors and Executive Committee

44


Philipp RickertHead of Financial Services

Philipp Rickert studied Business Administration and Law at the University of St. Gallen and is a Swiss Certified Accountant. He joined KPMG in 1996 and became Partner in 2003. As Head of Audit Financial Services, he assumed responsibility in 2011 for the auditing of banks and insurance companies for KPMG Switzerland. Philipp Rickert has been a member of the Executive Committee since 2013.

Peter UebelhartHead of Tax

Peter Uebelhart studied Business Administration at the University of St. Gallen and is a Certified Tax Expert. He has been with KPMG since January 2001, and has been Partner since 2002. He became Head of M&A Tax Switzerland in 2001, and Head of Corporate Tax in 2006. Peter Uebelhart has been Head of Tax and a member of the Executive Committee since 2012.

Anne van HeerdenHead of Advisory

Anne van Heerden is a Dutch Register Accountant (RA), a Certified Audit Expert in Switzerland and a Certified Fraud Examiner (CFE). He joined KPMG Nether lands in 1986, and KPMG Switzerland in 2000. He has been Partner since 2004. He was Head of Forensic from 2003 to 2014. In 2009 he became Head of Risk Consulting. From 2013 to 2015 he was Head of Consulting and from 2012 to 2015 member of the Global Forensic Executive Committee. Since 1.1.2015 Anne van Heerden has been a member of the Executive Committee.

Lukas MartyHead of Audit

Lukas Marty studied Business Administration at the University of St. Gallen and is a Swiss Certified Accountant. He has worked for KPMG since 1993 and since 2001 he has been Partner. Lukas Marty is responsible for auditing and advising listed clients in different sectors. He was CFO from 2008 to 2012, and Head of Audit since 2012. Lukas Marty has been a member of the Executive Committee since 2010.

Executive Committee

Stefan PfisterChief Executive Officer

Stefan Pfister studied Business Administration at the University of St. Gallen and also completed a degree in Corporate Real Estate Management at the European Business School (EBS). He is an accredited FINMA assessor with over 15 years of experience in the financial and real estate industries. Stefan Pfister joined KPMG in 2005 as Head of Real Estate and partner. In 2009, he took over the leadership of Transactions and Restructuring, and in 2011, he was appointed Head of Advisory and member of the Executive Committee. Stefan Pfister has been CEO of KPMG Switzerland since 2014.

Jörg WalkerChief Operating Officer, Chief Financial Officer

Jörg Walker studied Law at the University of St. Gallen and is a certified tax expert. He taught for four years at the Institute of Public Finance and Fiscal Law (IFF) at the University of St. Gallen, and joined KPMG in 1994. Jörg Walker has been a member of the Executive Committee since 2004.

Philipp HallauerHead of National Quality & Risk Management

Philipp Hallauer studied Business Administration at the University of St. Gallen and is a Swiss Certified Accountant. He has worked for KPMG since 1990. He was Chairperson of the Board of Directors of KPMG Switzerland from 2005 to 2008. Philipp Hallauer has been a member of the Executive Committee since 2013.

45


Partners

Thomas Affolter Zug

Ulrich Amberg Zurich

Stefan Andres Bern

Anthony Anzevino Zurich

Hélène Béguin Geneva

Reto Benz Zurich

Patricia Bielmann Zurich

Jürg Birri Zurich

Michael Blume Zurich

Claudio Boller Basel

Thomas Bolliger Zurich

Matthias Bopp Zurich

Matthias Bossardt Zurich

Patrick C. Burgy St. Gallen

Herbert Bussmann Zurich

Helen Campbell Zurich

Debbie Carver Lausanne

John Carver Lausanne

Cataldo Castagna Zurich

Tara Collins Vieli Zurich

Peter Dauwalder Zurich

Arjan de Draaijer Zurich

Bryan DeBlanc Zurich

Reiner Denner Zurich

Ralph Dicht Zurich

Hieronymus T. Dormann Zurich

Reto Eberle Zurich

Jean-Luc Epars Geneva

Charles Errico Zurich

Michel Faggion Lausanne

Peter Fatzer Zurich

Philippe Fleury Geneva

Patrik Kerler Zurich

Matthias Kiener Zurich

Jörg Kilchmann Zurich

Timo Knak Zurich

René Koets Zurich

Elisabeth Kruck Zug

Heiko Kubaile Zurich

Stefan Kuhn Zurich

Frank Lampert Zug

Orlando Lanfranchi Zurich

Frédéric Le Gall Lausanne

Mirko Liberto Zurich

Silvan Loser St. Gallen

Fabien Lussu Lausanne

Joshua Martin Zurich

Lukas Marty Zurich

Markus Forrer Zug

Lennaert Galesloot Zurich

Olivier Gauderon Geneva

Marc Gössi Zurich

Christoph Gröbli Zurich

Ivo Gut Bern

Kurt Gysin Zurich

Daniel Haas Zurich

Philipp Hallauer Zurich

Rolf Hauenstein Zurich

Charles Hermann Zurich

Michael Herzog Zurich

Christian Hintermann Zurich

Hartwig Hoffmann Zurich

Lorenzo Job Lugano

Astrid Keller Zurich

As leadership figures, our Partners hold key positions within the firm and manage important client mandates. Their entrepreneurial spirit is at the heart of our client work and also an important part of our corporate culture.

46


Brad Maxwell Zurich

Jürg Georg Meisterhans Zurich

Yvan Mermod Geneva

Mark Meuldijk Zurich

Peter Michael St. Gallen

Graham Middleton Zurich

Judith Mitchell Lausanne

Dominique Morel Zurich

Nicolas Moser Geneva

Douglas Mullins Zurich

Roger Neininger Zurich

David Oberson Lausanne

David Peterson Zurich

Sean Peyer Zurich

Stefan Pfister Zurich

Pierre Henri Pingeon Geneva

Johannes Post Zurich

Ulrich Prien Zurich

Giordano Rezzonico Geneva

Markus Richter Zurich

Philipp Rickert Zurich

Paul Rieveley Geneva

Stuart Robertson Zurich

Martin Rohrbach Basel

François Rouiller Zurich

Martin Schaad Zurich

Bill Schiller Zurich

Lars Schlichting Lugano

Peter Schmid Zurich

Michael Schneebeli Zurich

Thomas Schneider Zurich

Gerben Schreurs Zurich

Regula Wallimann Zurich

Toni Wattenhofer Zug

Erik Willems Zug

Nicole Willimann Vyskocil Zug

Grégoire Winckler Zurich

Christoph Wolleb Zurich

Markus Wyss Zurich

Reto Zemp Zurich

André Zemp Zurich

Marc Ziegler Zurich

Luka Zupan Zurich

Markus Schunk Zurich

Beat Seger Zurich

Graham Seymour Zurich

Prafull Sharma Zurich

Pascal Sprenger Zurich

Daniel Steiner St. Gallen

Hans Jürg Steiner Bern

Michael Sterchi Zurich

Hanspeter Stocker Zurich

Kurt Stocker St. Gallen

Vincent Thalmann Geneva

Peter Uebelhart Zurich

Tobias Valk Zurich

Anne van Heerden Zurich

Hans Vils Schaan

Jörg Walker Zurich

New as of 1 October 2015

47


Zurich [Head Office]Badenerstrasse 172 PO BoxCH-8036 Zurich Tel. +41 58 249 31 31 Fax +41 58 249 44 06kpmg.ch

Basel Viaduktstrasse 42 PO Box 3456 CH-4002 Basel Tel. +41 58 249 91 91 Fax +41 58 249 91 23

Bern HofgutPO Box 112 CH-3073 Gümligen-Bern Tel. +41 58 249 76 00 Fax +41 58 249 76 17

Geneva Rue de Lyon 111PO Box 347CH-1211 Geneva 13 Tel. +41 58 249 25 15 Fax +41 58 249 73 13

Lausanne Avenue du Théâtre 1 PO Box 6663 CH-1002 Lausanne Tel. +41 58 249 45 55Fax +41 58 249 45 65

LuganoVia Serafino Balestra 33 CH-6900 LuganoTel. +41 58 249 32 32Fax +41 58 249 32 33

Lucerne Pilatusstrasse 41 CH-6003 Lucerne Tel. +41 58 249 38 38 Fax +41 58 249 38 88

Neuchâtel Rue du Seyon 1 PO Box 2572 CH-2001 NeuchâtelTel. +41 58 249 61 30 Fax +41 58 249 61 58

Schaan [Liechtenstein]Landstrasse 99 LI-9494 Schaan Tel. +423 237 70 40Fax +423 237 70 50kpmg.li

St. Gallen Bogenstrasse 7 PO Box 1142 CH-9001 St. Gallen Tel. +41 58 249 22 11 Fax +41 58 249 22 12

Zug Landis + Gyr-Strasse 1 PO Box 1560CH-6301 Zug Tel. +41 58 249 74 74 Fax +41 58 249 50 00

48

L O C AT I O N S

Articles may only be republished by written permission of the publisher and quoting the source ‘Annual Report KPMG Switzerland 2015’.The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received, or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.

The views and opinions expressed herein are those of the author and do not necessarily represent the views and opinions of the publisher.

© 2015 KPMG AG is a subsidiary of KPMG Holding AG, which is a member of the KPMG network of independent firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss legal entity. All rights reserved.

Published byKPMG AGBadenerstrasse 172PO BoxCH-8036 Zurich

[email protected]+41 58 249 31 31 kpmg.ch

ConceptKPMG AG, Zurich

Designvan Beusekom design & brand solutions, Zurich

TextsKPMG AG, ZurichUrsula Fraefel & Partner, Zurich

Copy editingKPMG AG, Zurich

PrintingGfK PrintCenter, Hergiswil

PhotographyDaniel Hager Photography, ZurichHauptstadtfilm, Roland Luder, BernGetty Images, MunichKeystone, Zurich


M AST E R H E A D

Annual Report KPMG Switzerland clarity.kpmg.ch

Documents

KPMG Annual Report 2015