2 15 Making an impact that matters 2015 Global Report: Executive Summary . Contents 1 2 Deloitte is recognized by clients, industry analysts, service providers, and other stakeholders as a global leader in professional services across the most diverse set of capabilities. A few of the many accolades we have received can be read throughout the full version of the 2015 Global Report and on our Analyst Relations website. 3 4 Making an impact that matters Delivering service that matters Building careers that matter Having influence that matters Global CEO and Chairman letter Cognitive computing = smarter, faster choices Developing leaders and their ideas Japan’s post-disaster economy Global capabilities and China’s State Grid Helping purpose-driven professionals thrive Strengthening humanitarian response to crises Cyber resilience begins in the boardroom Keeping Deloitte’s people safe and secure Scaling innovative education solutions Strategy, outlook, and acquisitions Leadership and governance Network structure HP completes largest Workday HCM implementation Innovating the audit, attracting talent Equipping clients to manage, recover from crises Norwegian oil company builds a platform for growth Irish pharma company’s dramatic turnaround “Deloitte”, “we”, “us”, and “our” refer to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee (“DTTL”), its network of member firms, and their related entities. DTTL and each of its member firms are legally separate and independent entities. DTTL (also referred to as “Deloitte Global”) does not provide services to clients.

Please see www.deloitte.com/about for a more detailed description of DTTL and its member firms. Drivers and the Internet of Things Data privacy and security Risk-intelligent approach promotes quality Promoting water stewardship in the paper industry The Edge: An office unlike any other Regulatory and public policy engagement Ethics: Delivering quality and integrity Independence: Preserving the public’s trust Reporting process and materiality . 1 Making an impact that matters 3 4 Our Purpose statement is a clear and compelling declaration of why we exist. It says: Deloitte makes an impact that matters. Our desire to make a positive, enduring impact every day for our organization and its stakeholders requires that: • We serve clients with quality and distinction, making a measurable and attributable impact. • We inspire our people to deliver value—mentoring and developing future leaders and colleagues for life. • We contribute to society, building confidence and trust, upholding integrity, and supporting the community. • We lead the profession by challenging ourselves to do what matters most, delivering innovative ideas that reflect our unique capabilities. With a defined Purpose to lead us, Deloitte acts with courage and conviction to make an impact that matters every day—across our businesses and around the world—by serving the most sophisticated clients, tackling the world’s most complex problems, and promoting integrity and trust in the marketplace. This is what we do. This is who we are. This is our Purpose.

  3 2 Deloitte has long been a purpose-led organization. In 2015, we put that Purpose into words to inspire Deloitte professionals and help us achieve our global strategy of being the undisputed global leader in professional services. A strong sense of purpose is closely linked to positive organizational performance, as demonstrated in the Deloitte US “Core beliefs and culture survey” and DTTL 2015 Millennial Survey. . require a high-quality audit of their financial statements; seek experience on complex tax issues; or face a “bet-thecompany” challenge. Deloitte Global Chief Executive Officer and Chairman of the Board letter Making an impact that matters Exceptional organizations that flourish over time are defined by a purpose, and Deloitte’s purpose is to make an impact that matters—for member firm clients, our people, and society. This purpose is embedded throughout our global network. It defines who we are. It lies at the heart of the work of our network’s 225,400 people across more than 150 countries. Living our purpose is also at the foundation of the Deloitte network’s strong FY2015 performance.

Despite global economic and geopolitical challenges, Deloitte achieved aggregate global revenues of US$35.2 billion, representing growth of 7.6 percent in local currency terms. Deloitte hired approximately 62,000 new professionals last year and invested more than US$200 million in community and societal impact initiatives around the world. Deloitte professionals take great pride in the many ways the organization serves stakeholders around the world, and our 12th Global Report highlights some of the best examples from the past year through the lens of clients, talent, and society. Delivering service that matters Deloitte member firms serve clients and markets with quality and distinction, bringing trust and confidence to the capital markets, delivering innovative insights, solving complex challenges, and unlocking sustainable growth. Member firms strive to be the first choice of clients— whether they need confidence to take decisive action; 4 Building careers that matter Deloitte member firms invest in their talented professionals so they may deliver outstanding value to clients. We mentor and develop future leaders, providing an exceptional career experience and an inclusive, collaborative culture.

Our network aims to be the premier career destination for the best and brightest minds. Having influence that matters Deloitte contributes to society, building confidence and trust in the markets, fostering the integrity of organizations, and supporting our communities. Our organization remains committed to sustainability and to supporting the U.N. Global Compact.

We aspire to be a role model of quality, integrity, and positive change, helping to solve the toughest global challenges. In all we do, Deloitte aspires to be not necessarily the biggest, but the best—the undisputed global leader in professional services. Our network continues to leverage global scale, new technologies, and deep industry insights to help member firm clients maximize opportunities and manage risks in a borderless and uncertain environment. We begin our respective terms this year—as Deloitte Global Chief Executive Officer and Chairman of the Deloitte Global Board of Directors—honored to support our member firm colleagues around the world as they build on the Deloitte network’s rich heritage of serving member firm clients, our people, and our communities. Sincerely, Punit Renjen, Deloitte Global Chief Executive Officer David Cruickshank, Chairman of the Deloitte Global Board of Directors For more on how Deloitte is making an impact that matters, please view brief video messages from Deloitte Global CEO Punit Renjen on: Clients | Talent | Society 1 2 3 4 . 1 Note: Percentages represent year-over-year change. Revenue figures are in US$ billion. Percentage growth rates are in local currency. Figures are aggregated across Deloitte member firms. Because of rounding, numbers may not tally with the total. REVENUE REVENUE FY2015 FY2015 (+8%) (+8%) $35.2 $35.2 BY BUSINESS BY BUSINESS BY INDUSTRY BY INDUSTRY FY2013 FY2013 (+6%) (+6%) FY2014 FY2014 (+7%) (+7%) $34.2 $34.2 $32.4 $32.4 HEADCOUNT FY2015 FY2014 FY2013 (+7%) (+4%) 3 BY REGION BY REGION BY GENDER GENDER BY REGION AMERICAS 99,400 $3.1 $3.1 $3.5 $3.5 $6.7 $6.7 $12.2 $12.2 $35.2 Bn $35.2 Bn $3.2 $3.2 $3.9 $3.9 $3.1 $3.1 $35.2 Bn $35.2 Bn $4.4 $4.4 $9.8 $9.8 $5.0 $5.0 $9.5 $9.5 $6.6 $6.6 MEN $11.9 $11.9 $35.2 Bn $35.2 Bn $18.3 $18.3 $4.4 $4.4 MEN WOMEN 125,666 99,685 56% 44% WOMEN 56,555 42,843 57% 43% EMEA 79,900 MEN Consulting Financial Services Financial Services Consumer Business Consumer Business Public Sector Public Sector Manufacturing Asia Pacific Enterprise Risk Services Financial Advisory Manufacturing Technology, Media & Telecom Financial Advisory 35,905 EMEA Asia Pacific Tax & Legal Enterprise Risk Services 44,020 Americas EMEA Audit Tax & Legal WOMEN 55% 45% Americas Consulting Audit Technology, Media & Telecom Life Sciences & Health Care ASIA PACIFIC 46,000 Life Sciences & Health Care Energy & Resources Energy & Resources Because of rounding, numbers may not tally with the total. 5 MEN WOMEN 25,092 Note: Percentages represent year-over-year change.

Revenue figures are in US$ billion. Percentage growth rates are in local currency. Figures are aggregated across Deloitte member firms. Because of rounding, numbers may not tally change.

Revenue figures are in US$ billion. Percentage growth rates are in local currency. Figures are aggregated across Deloitte member firms. Note: Percentages represent year-over-year with the total. 2 (+5%) 225,400 210,400 202,885 20,936 55% 45% Figures are aggregated across DTTL and its member firms.

Because of rounding, numbers may not tally with the total. 4 . 1 NEW HIRES FY2015 62,000 (+28%*) BY GENDER FY2014 54,000 (+26%*) FY2013 51,400 (+25%*) SOCIETAL IMPACT SOCIETAL IMPACT FY2015 FY2015 (+11%) (+11%) TOTAL DONATIONS TOTAL DONATIONS $78M $78M $123M $123M AMERICAS MEN 25,500 WOMEN 55% 45% 33,922 (+26%**) 28,078 PRO BONO 343,000 HOURS ($48M) PRO BONO ASIA PACIFIC 13,700 (+30%**) 343,000 HOURS ($48M) SKILLS-BASED VOLUNTEERING 496,000 HOURS ($45M) SKILLS-BASED VOLUNTEERING 496,000 HOURS ($45M) TRADITIONAL VOLUNTEERING 328,000 HOURS ($30M) TRADITIONAL VOLUNTEERING 328,000 HOURS ($30M) EMEA 22,800 FY2013 FY2013 (+9%) (+9%) $212M $190M $179M $212M $190M $179M TOTAL VOLUNTEER TOTAL VOLUNTEER AND PRO BONO WORK AND PRO BONO WORK BY REGION FY2014 FY2014 (+7%) (+7%) DELOITTE DONATIONS* DELOITTE $47M DONATIONS* $47M DELOITTE PEOPLE DONATIONS** DELOITTE PEOPLE $30M DONATIONS** $30M $212M $212M (+28%**) MANAGEMENT COSTS*** MANAGEMENT $12M COSTS*** $12M * Percentage of total headcount All figures are aggregated across DTTL and its member firms. This data includes 35 member firms and DTTL representing 97 percent of the Deloitte network workforce. Figures for societal contributions are lower than the actual amounts as not all types of donations can be tracked in our systems. Because of rounding, numbers may not tally with the total.

DTTL and its member firms observe reporting standards from the Committee Encouraging Corporate Philanthropy and the London Benchmarking Group. The monetary value of community activities was estimated according All figures are aggregated across DTTL and its member firms. This data includes 35 member firms and DTTL representing 97 percent of the Deloitte network workforce.

Figures for societal to the type of service performed. The value of volunteer work was based on local member firms’ staff costs. Pro bono work, defined as work that the member firms have delivered to not-for-profit contributions are lower than the actual amounts as not all types of donations can be tracked in our systems.

Because of rounding, numbers may not tally with the total. DTTL and its member firms organizations free-of-charge or at a significantly reduced rate, has been valued at fair market rates representative of the local member firms’ client service rates for comparable services. observe reporting standards from the Committee Encouraging Corporate Philanthropy and the London Benchmarking Group. The monetary value of community activities was estimated according * the type of service performed.

The value of volunteer work was based foundations. toIncludes monetary and in-kind donations from DTTL, member firms, and on local member firms’ staff costs. Pro bono work, defined as work that the member firms have delivered to not-for-profit organizations free-of-charge orfirm professionals’ donations to has been valued at fair market rates representative of the local member firms’ client service rates for comparable services. ** Includes DTTL and member at a significantly reduced rate, supported organizations. ** New hires as a percentage of total headcount by region *** Includes DTTL, member firm, and foundation DTTL, member firms, and foundations. * Includes monetary and in-kind donations from costs for managing societal impact programs. Figures are aggregated across DTTL and its member firms. Because of rounding, numbers may not tally with the total. ** Includes DTTL and member firm professionals’ donations to supported organizations. *** Includes DTTL, member firm, and foundation costs for managing societal impact programs. 6 2 3 4 .

1 2 Strategy, outlook, and acquisitions Business choices aim to separate Deloitte from the pack Deloitte’s aspiration is to be the undisputed global leader in professional services. This means being the first choice for clients; being the premier career destination for top talent; being a role model of quality, integrity, and positive change; and helping solve the toughest global challenges. We are intent on being the best, not necessarily the biggest. Within the context of our Purpose—making an impact that matters—five strategic business priorities define our path forward: client leadership, business leadership, geographic leadership, talent leadership, and network leadership. Deloitte’s strategy is all about strengthening our businesses, empowering our talent, and backing them with an exceptional network to serve the world’s most important organizations. We are executing these choices with passion and rigor against an ever-evolving external backdrop that continues to challenge Deloitte and our competitors in each of our businesses. Guided by past strategic choices, Deloitte has thrived in the midst of economic adversity and dramatic market changes. Deloitte is confident our current strategy and Purpose-led approach position the organization to accelerate its success and achieve its goal of undisputed leadership. Learn more about Deloitte’s strategic choices and the external disruptions that shape them. New leaders establish a path forward Network governance approach reinforces commitment to quality and integrity Punit Renjen became Deloitte Global Chief Executive Officer on 1 June 2015, succeeding Barry Salzberg. Renjen served most recently as chairman of the board, Deloitte LLP (US), and prior to that, chairman and CEO of Deloitte Consulting LLP. Also on 1 June 2015, David Cruickshank began his term as Chairman of the DTTL Board, succeeding Steve Almond. Cruickshank had served as Chairman of Deloitte UK since 2007.

Prior to that, he led the UK member firm’s tax practice. Renjen’s and Cruickshank’s leadership appointments are part of a rigorous, comprehensive nomination and member firm partner-ratification process that occurs every four years and includes all member firms of the Deloitte worldwide network. During FY2015, Cathy Engelbert assumed the role of CEO for Deloitte US, and Cindy Hook was elected Deloitte Australia’s new chief executive. Each became the first woman in her country’s history to lead a Big Four firm. Strong governance and leadership structures help Deloitte member firms maintain high levels of quality and integrity, allowing them to sustain the trust of their clients, their people, the capital markets, and the public. Learn more about Deloitte leadership and governance. 7 Deloitte network structure Local knowledge, global capabilities The Deloitte member firm structure is a source of great strength for the organization, allowing us to deliver deep local market knowledge, capabilities, and relationships to global clients, virtually anywhere in the world. Deloitte member firms are independent, with local ownership and management that are accountable for their member firms’ success. As members of the Deloitte network, these firms benefit from shared activities, investments, and resources that enhance their individual abilities to provide core services to key local and global clients.

They also are able to leverage Deloitte’s brand, eminence, and intellectual property. The Deloitte organization continues to reinforce this differentiating structure and achieve economies of scale with new centers of excellence, global delivery centers, and other network approaches that are designed to deliver a consistent level of excellence around the world. The network also is adopting new models for sharing leading practices, technologies, back-office investments, and costs. Learn more about Deloitte’s global structure. 3 4 . 1 2 Delivering service that matters We serve clients with quality and distinction, making a measurable and attributable impact. Deloitte is a strong, global brand. Our member firms have relationships with four out of every five Fortune Global 500® companies. That includes 92 percent of all technology, media, and communications companies, and 87 percent of the world’s financial service and consumer business companies. Member firm clients know us, trust us, and express extremely high satisfaction with the service they receive.

Many would call that “success.” We call it “a good place to start.” Deloitte wants to be potential clients’ first choice when they’re looking for an auditor’s auditor; when they need the confidence to take decisive action and achieve transformative results; when they require deep knowledge on complex tax issues; when they are facing a bet-the-company challenge. To ensure their global clients receive consistent, high-quality, distinctive, world-class service wherever in the world they want it, Deloitte member firms are investing in and strengthening our network by: • Equipping lead client service partners with the resources and authority they need to succeed; • Deepening our insight into industries and sectors to bring valuable and actionable perspectives to bear on clients’ business challenges; and • Promoting “hyper collaboration” among our businesses and member firms so that Deloitte’s multidisciplinary model delivers exceptional results. 8 3 Watch Deloitte Global CEO Punit Renjen explain how Deloitte member firms deliver service that matters. 390+ FORTUNE GLOBAL 500® COMPANIES SERVED BY DELOITTE MEMBER FIRMS* 100+ NATIONAL GOVERNMENTS SERVED BY DELOITTE MEMBER FIRMS * Includes all companies where Deloitte member firms served as external auditors and those companies where Deloitte member firms earned > US$500K in revenue during FY14 (non-audit). 4 . 1 2 Artificial intelligence, real results Cognitive computing capabilities can help member firm clients make smarter, faster choices How can cognitive computing be used to benefit member firm clients and our network? A software application developed by the Deloitte US Innovation group, in close collaboration with the Audit and Consulting M&A practices of Deloitte US, already is helping organizations save time and money. Yet, to those who dream the future, it may be but an early step in a long journey. “We’re at the beginning of a true paradigm shift. Instead of merely querying structured data, we are demanding insights from unstructured data that will inform decision making,” says Forrest Danson, Deloitte US Principal and Analytics Integrated Market Offering Leader. “Deloitte US is among the vanguard in this arena because we understand how artificial intelligence (AI) and human knowhow can combine to achieve better outcomes for clients.” Many third parties are developing cognitive computing and AI solutions.

Deloitte US is working with several of these developers, including IBM. Its cognitive system, Watson, currently provides a comprehensive cognitive computing platform—one that is specifically designed to support the development of a broad range of enterprise solutions. Learn more about Deloitte is using cognitive computing as a positive disruptor. 9 High-voltage expansion Cybersecurity is a team sport State Grid’s landmark acquisitions send Former public-sector professionals a jolt through global electricity industry help clients integrate resilience This past year, Deloitte China was engaged by State Grid Corporation of China (SGCC)—the seventh largest company in the Fortune Global 500®—to provide a suite of advisory services—including financial and tax due diligence, valuation and structuring services, and negotiation support—to inform and facilitate SGCC’s purchase of a 35 percent stake in an Italian energy company, CDP Reti, from Cassa Depositi e Prestiti (CDP). A year earlier, Deloitte China provided similar support for the purchase of a 19.9 percent stake in Australian electricity supplier SP AusNet, as well as SGCC’s purchase of 60 percent of SPI Australia’s energy infrastructure. “These transactions demonstrate the impact and value of Deloitte’s multidisciplinary model, our cross-border reach, and our knowledge of the energy and resources industry,” says Eric Leung, Southern Region Functional Leader of Financial Advisory Services, Deloitte China. “We not only are well positioned to meet the complex needs of large organizations such as State Grid, but we also have a solid track record of helping Chinese companies achieve the foreign expansion they desire.” Learn more about the impact of Deloitte’s global reach and multidisciplinary model. Cybersecurity has become a strategically important business risk issue, and companies need to be “secure, vigilant, and resilient” to effectively manage risks.

“Our Cyber Risk Services professionals are dedicated to helping organizations protect information assets, be aware of the rapidly evolving threat landscape, and respond to and recover from incidents that are becoming increasingly inevitable,” says Ted DeZabala, Deloitte Global Cyber Risk Services leader. How damaging breaches become can depend, in part, on how rapidly the situation can be analyzed, how decisively leaders take action, and how effectively teams interact with customers, media, legal counsel, law enforcement, and industry peers. Deloitte understands cyber breaches aren’t just a technologist’s problem. Our approach is designed to prepare and validate an organization’s overall cyber resilience from the boardroom, to the war room, to the individual employee, to the organization’s stakeholders and customers. When Cyber Risk Services tailors wargames for clients—which are customized to each client’s industry and build in probable scenarios, drawn from real-life experiences and client situations—the entire client organization is brought to the table and their response plans and communications channels are tested aggressively. Learn more about Cyber Risk Services’ Secure. Vigilant.

Resilient. approach. Biggest implementation ever? No problem! Hewlett-Packard human capital project is one for the record books Hewlett-Packard’s (HP) human resources team wanted to foster a culture of self-service among its 300,000plus employees and managers, but there was a problem. The global technology giant had a dated and highly customized legacy human capital management (HCM) platform that was so unwieldy, some critical human resource processes were actually handled offline because it was simply easier that way. What’s more, because HP operated in 106 countries, its HR department was forced to juggle a multitude of regional laws and customs.

Since HP’s HCM services were not configured to support regional needs, many employees and managers maintained shadow systems. The cumulative result was poor data integrity and rampant management issues. A new, cloud-based HCM system provided by software vendor Workday, Inc., offered what HP was seeking to support: the re-engineering of its business processes, but HP knew the implementation would be tremendously complex. So, HP turned to longtime service provider Deloitte US for help.

Together, HP and Deloitte US successfully executed the world’s fastest, biggest, and most complex Workday implementation in just 15 months. Learn more about why Deloitte is a global leader in Workday HR and Finance consulting services. 3 4 . 1 2 © Edvard Grieg Fresh perspectives enhance the audit Crises are certain, survival is not Innovative techniques and tools appeal Equipping clients to prepare for to younger, tech-savvy professionals disasters, bounce back strong Transforming Lundin’s Shelf interests Deloitte Norway helps oil explorer build a platform for growth Advancements of cognitive technologies, including artificial intelligence, are presenting new opportunities to enhance audit quality, automate processes, and ultimately transform how an audit is performed. “Natural-language processing, advanced data analytics, and machinelearning technologies are examples of how we are automating and streamlining labor-intensive processes,” explains Jon Raphael, Audit Chief Innovation Officer, Deloitte US. “This provides more opportunities to allocate time to higher value-added areas, enabling auditors to apply their professional judgment and uncover new insights to deliver value beyond compliance.” Three years after it was founded, Lundin Norway struck oil in its first exploration well on the Norwegian continental shelf. In the eight years since then, Lundin can take credit for half of the resources found on the shelf.

Its stunning success rate and growing resource base fueled an idea among the company’s leaders, who recognized an opportunity to blossom into a full-scale exploration and production company. Deloitte is actively enabling widespread and consistent use of audit innovations among its member firms to enhance both audit quality and consistency in engagements, create effectiveness for audit practitioners, and provide clients with the deeper understanding they want and expect. Businesses can expect a value-destroying catastrophe once every five years. Not only are the frequency and magnitude of crises increasing, but the array of emergencies also continues to expand and evolve. Research shows that companies that have navigated effectively through crises before are best equipped to lead when disaster strikes next, embarking more quickly on a strategic plan to regain control. “When the moment arrives, experience matters,” says Peter Dent, Deloitte Global Crisis Management Leader.

“If a company doesn’t have it, there is tremendous value in teaming up with a leader like Deloitte.” With decades of crisis-fighting experience, Deloitte member firm professionals have played a crucial role helping clients over the years prepare for, respond to, and recover from their darkest hours. “Our focus on innovation has produced a more exciting work environment, one that is engaging tech-savvy millennials. They relish the challenge of using technology to solve problems and reinvent processes,” adds Chris Thatcher, Deloitte Global Audit Innovation Leader. “Just as importantly, they bring fresh perspectives to a traditional field and add value that member firm clients maybe didn’t expect, but really appreciate.” This support was amplified in FY2015 when Deloitte collected its crisis specialists from across the globe into a multidisciplinary market offering.

“By creating a closeknit community of crisis management specialists in nearly 150 countries across our member firm network, Deloitte can more easily provide end-to-end business support before, during, and after a crisis with the industry-specific and functional skills needed in each case,” explains Rhoda Woo, Enterprise Risk Management director and crisis management leader, Deloitte US. Learn more about why new audit technologies are attracting young professionals. Learn more about our crisis management multidisciplinary market offering. 10 Lundin management turned to Deloitte Norway for guidance in building its offshore operations organization. “We had the industry knowledge they needed, along with Deloitte Norway personnel who have years of operational experience on the shelf,” says Svenn Erik Edal, Nordic Oil & Gas Industry leader, Deloitte Norway. “We also had done similar work with other operations, developed a methodology based on leading practices, and offered Lundin new ways of thinking to help ensure a culture with strict focus on continuous improvement.” The Deloitte Norway team was immersed in all phases of the process, from helping Lundin identify regulatory requirements and analyze occupational risks to developing workflows and key performance indicators. Lundin’s first manned offshore facility is projected to begin producing its first barrels of crude oil in late 2015. Learn more about Lundin Norway’s journey. Just what the doctor ordered Deloitte Ireland-aided restructuring program key to client’s turnaround, growth In 2011, the combination of loan debt and high overhead was making it difficult for Uniphar Group, a leading provider within the pharmaceutical and health care sector in Ireland, to capitalize on growth opportunities.

Just three years later, against a challenging economic backdrop, its annual revenues increased almost 60 percent, earnings were up 75 percent, and debt decreased by about a third. It also completed a major acquisition and initiated an SAP implementation across the organization. Along the way, Deloitte Ireland has played a key role in Uniphar’s resurgence. “Our corporate finance team was hired in 2011 by two Irish banks to complete an extensive review of Uniphar’s financial health and assist with negotiating a restructuring of the company’s existing loans to harness growth opportunities in the market,” explains David Carson, Deloitte Ireland’s lead client service partner for Uniphar. “By 2013, those banks were willing to fund Uniphar’s US$54.3 million acquisition of pharmaceutical wholesaler Cahill May Roberts (CMR).

That speaks volumes about the progress Uniphar made and the trust the banks had in its management team.” Deloitte Ireland corporate finance provided due diligence services on the acquisition. Learn more about Uniphar’s remarkable turnaround and Deloitte Ireland’s role in it. 3 4 . 1 2 Driving sensible solutions Deloitte puts the Internet of Things to work for motorists Guarding client confidentiality Advanced measures let Deloitte combat cybercriminals, protect data Deloitte Digital in the UK has been working with clients to establish real-time analytics tools that give traffic managers the information they need to keep traffic moving. These tools are built to understand dynamic changes in traffic flows by mode. With the information they provide, traffic managers can make timely interventions to improve journey time reliability and alleviate congestion. A number of high-visibility cyberattacks on well-known global companies in FY2015 not only resulted in the very public dissemination of personal and confidential information, but they also served as reminders to Deloitte that data security begins at home. These tools build on current sensor capability provided by cameras, counter sites, and strategically placed adaptive traffic control system loops. Data from millions of vehicle captures per day is processed continuously to provide a holistic view of the traffic network.

Data also can be compared with vehicle databases, providing new insights into vehicle journeys. Similar technologies are helping auto insurers adopt usage-based insurance (UBI) that more closely aligns premium rates with driving behaviors. With D-rive, a telematics services business developed primarily by Deloitte US, smaller insurers have access to a tremendous amount of information they can use to determine discounts and provide value-added services. This allows them to get in the UBI game quickly and cost effectively, and helps level the field so they’re not crowded out of the market.

In pilot programs, D-rive is even helping people drive more safely. Learn more about how ambient computing is enabling innovative solutions. 11 DTTL’s global policy on information security requires member firms to institute a wide range of security measures, covering areas such as virus protection, data backup and recovery, encryption, password authentication, access to systems, and network security. These actions are critical to safeguarding and appropriately using confidential information, confronting ongoing threats, and meeting member firm client expectations. Confidentiality is an ongoing, evergreen process that must be done in a holistic way; an accountwide transformation that enhances member firms’ ability to deliver seamless, global client service. To this end, DTTL currently is rolling out a Confidential Information (CI) program to its member firms around the globe. It is a strategic initiative, driven by network leading practices and consistent standards, aimed at safeguarding confidential information at the client account and engagement levels. Learn more about how Deloitte protects data. Acting ahead of change Risk-intelligent approach promotes delivery of consistent, high-quality client services Making waves in water stewardship Tailored tool helps Smurfit Kappa assess and mitigate risks from water scarcity In a world dominated by rapidly evolving technology, converging industries, and a shifting regulatory landscape, we must be smart, agile, resilient, and forward-thinking to confidently confront risk, pursue opportunities, and gain competitive advantage.

Deloitte continuously assesses the adequacy of its risk management processes and programs to proactively address matters that may arise from the internal and external environment, and promotes a lessons-learned culture where professionals can learn from each other’s experiences. Water is an important resource input in the pulp and paper industry. Given the increasing importance of water globally, companies are now developing strategies to manage this precious resource. To this end, during FY2015, we developed a new network quality and risk management strategy. This strategy will continue to reinforce our quality and risk-intelligent culture, one of relentless commitment to Deloitte’s own core and ethical values and the public interest. Deloitte also has developed and implemented an enterprise risk framework designed to identify, manage, monitor, and respond to risks which, if materialized, could impact our ability to achieve our strategies and objectives—including the protection of our reputation and brand, and member firms’ delivery of consistent, high-quality services. Learn more about how Deloitte is sustaining a risk-intelligent culture. One of the organizations focused on addressing water related risks is Smurfit Kappa, Europe’s leading corrugated packaging company and one of the leading providers of paper-based packaging solutions in the world.

“Smurfit Kappa, and companies like it, are seeking to implement water stewardship strategies to evaluate operational risks and costs associated with disruptions to their water supplies and to identify actions to mitigate these risks,” says Olivier Jan, partner, Deloitte France, Sustainability Services. In May 2014, the manufacturer approached Deloitte France to conduct a water-related risk assessment across Smurfit Kappa’s global industrial operations throughout FY2015. In the first phase of the project, 36 Smurfit Kappa mills were screened for water-related risks using traditional tools and methods. In the second phase— where the scope is limited to mills which present a significant potential risk of water availability—on-site assessments are being performed using a tool built and owned by Deloitte France that is designed specifically for Smurfit Kappa to use for its mills. Learn more about how Deloitte France is helping Smurfit Kappa assess its water-related risk. 3 4 .

1 2 Building careers that matter At Deloitte, we have made the development of inspirational, worldclass leaders, at all levels, the cornerstone of our global talent strategy. Our vision is to develop purpose-led leaders who are deeply committed to the ideal of making an impact that matters— with member firm clients, their colleagues, their communities, and in our profession. 4 To achieve our vision, the Deloitte network continues to make significant investments in the design and delivery of an inclusive, world-class learning experience. Through Deloitte University, we provide enriching experiences for Deloitte people and create a place where leaders thrive and ideas prosper. Deloitte encourages its people to take on experiences in new markets or service areas to expand their expertise and leadership skills. These diverse experiences not only enhance the quality and consistency of clients’ experiences with Deloitte, but they also reinforce the inclusive and collaborative culture that allows our professionals to succeed. Deloitte’s leaders are driven to unlock people’s potential through mentorship, lifelong learning, and flexible work and career solutions that meet the changing needs of Deloitte’s businesses and people. They are dedicated to creating truly distinctive client and talent experiences that foster a strong sense of purpose and motivate people to deliver beyond expectations. 12 3 We inspire our people to deliver value—mentoring and developing future leaders and colleagues for life. Watch Deloitte Global CEO Punit Renjen explain how Deloitte helps its people build careers that matter. .

1 2 3 Investing in Deloitte people Helping purpose-driven talent thrive An inclusive talent experience that “You can change the world and have appeals to both the head and the heart a business career” Protecting professionals near and far From insurgency to medical urgency, Deloitte Global Security measures up The Deloitte network is committed to helping its people reach their full leadership potential—confident that their professional experiences will spark innovations that motivate others. New ideas are valued across Deloitte’s member firms; the best ones are funded, cultivated, and allowed to mature. The primary focus of the DTTL Global Security Office (GSO) is to work with member firms to keep Deloitte people safe, particularly during times of emergency or when they are called upon by clients to work in higher-risk areas. A comprehensive program has been put in place to address ever-present threats around the globe. “Deloitte people aspire to make an impact that matters, and in return, they expect opportunities to build leadership capabilities, develop new skills, and be challenged each and every day,” says Margot Thom, Deloitte Global Managing Director, Talent. “Our innovative and flexible learning approaches span from the Deloitte University (DU) classrooms to the daily work experience. By promoting a culture of continual learning, Deloitte enables its professionals to up their games in delivering outstanding value to their clients.” During FY2015, close to 65,000 Deloitte professionals across the regions experienced Deloitte University, and more than 2,000 member firm partners, principals, and directors led DU programs.

Member firms also have formalized mobility and international experience programs that expose their professionals to new ideas and cultures while they serve the needs of global clients. During FY2015, more than 6,000 Deloitte professionals gained diverse, on-the-job experience through short- and longterm mobility assignments and global client projects. Learn more about how Deloitte develops leaders. 13 A “sense of purpose” is part of the reason six in 10 young professionals chose to join their current employers, according to DTTL’s 2015 Millennial survey. And they’re not alone; Gen Xers and veteran talent also are increasingly seeking opportunities to make an impact on the world around them both through the work they do and endeavors outside the office. One such career calling is cybersecurity.

Many young job seekers see the havoc wreaked on society by cyberbased terrorism, computer intrusions, and cyber fraud, and decide they can make an impact that matters for consumers, economies, and even national security. For those who want to have even more direct involvement in social-impact activities, Deloitte member firms have long histories of offering professionals the ability to mix paid and pro bono assignments, be “seconded” to notfor-profits, take sabbaticals to help at social enterprises, and perform other skill-based volunteering. Networkwide, during FY2015, Deloitte professionals dedicated more than 340,000 hours to pro bono assignments and more than 820,000 hours to volunteering. Learn more about what attracts purpose-driven professionals to Deloitte. On an average day, Deloitte member firms may have more than 20,000 people traveling to serve clients. The GSO provided guidance and security planning support in FY2015 to more than 912 member firm engagement teams considering work in potentially troublesome areas of the world.

As part of DTTL’s global travel security protocols, member firms are encouraged to incorporate security into their travel programs and consult with the GSO before undertaking travel to high-risk locations. During the past year, the GSO continued efforts to further integrate its regional security managers through member firm visits, meetings with country leaders, and the formation of local security councils made up of member firm security officers in each region. Learn more about Deloitte’s global security efforts and policies. 4 . 1 2 Having influence that matters 3 We contribute to society, building confidence and trust, upholding integrity, and supporting the community. 4 Deloitte prides itself on doing not only what is good for clients, but also what is good for our people and the communities in which we live and work—always striving to be an organization that is held up as a role model of quality, integrity, and positive change. Deloitte fills the vital role of the independent auditor, maintaining the integrity of the financial reporting process and preserving the public’s trust in our capital markets. Deloitte’s consulting services offer innovative solutions that help businesses thrive, which is essential for a healthy, vibrant economy and society. Through these and other services, member firm professionals help their clients successfully handle a broad range of risks, crises, and complex challenges, strengthening their businesses and protecting their customers. Governments, nongovernmental organizations, and other businesses look to Deloitte for our knowledge, skills, and experience in tackling increasingly difficult economic, regulatory, and social issues. From delivering pro bono support to nonprofits and helping young people develop employability skills, to strengthening communities in the wake of a disaster and driving measurement beyond gross domestic product (GDP) to tackle social challenges, Deloitte is focused on the issues that matter most. 14 Watch Deloitte Global CEO Punit Renjen talk about why Deloitte aspires to be a role model of quality, integrity, and positive change, and works to help solve the toughest global challenges. . Photo credit: Ronald Tilleman 1 2 3 Investing in post-disaster innovation Reaching out with purpose Promise of economic resurgence drives Deloitte professionals’ business skills Deloitte Japan’s social mission elevate global humanitarian efforts A step in the right direction Deloitte tackles youth unemployment by scaling innovative education ideas In March 2011, three connected disasters devastated the world’s third-largest economy, resulting in a recovery bill that could reach US$250 billion or more. Twenty prefectures in Japan took a direct hit from the 2011 Great East Japan Earthquake, tsunami, and Fukushima Daiichi nuclear accident. But, the economic impact of the triple disaster was borne—and is still being felt—throughout the country. There are 75 million unemployed young people in the world, and the economic and social costs of this are immense. So, since 2009, Deloitte has been committed to identifying and investing in innovative solutions that enhance access to education and employability. Deloitte Japan, which played a broad and active humanitarian role in the wake of the disasters, continues to provide revival and restoration support for its clients and pro bono services in disaster-affected areas.

But, the firm’s focus has expanded to recognize the broader need to rebuild a national economy crippled by those events. “We want to do more than simply help disaster-affected areas recover. Our goal is to help create a nationwide economic rebirth by nurturing innovation,” says Masatoshi Tanifuji, leader of the Deloitte Japan Reconstruction Support Team. The assistance Deloitte Japan’s subsidiary, Tohmatsu Venture Support (TVS), offers entrepreneurs and new startups is an example of this commitment. To date, TVS has helped more than 2,000 startups not only achieve success, but also contribute to a local and national revival. Some startups already have crossed into global markets. Learn more about how Deloitte Japan is promoting economic recovery in its country. 15 The South Pacific and Syria are separated by 16,000 kilometers and a long list of physical and social contrasts.

But, they have at least one thing in common— humanitarian needs that require innovative solutions. In the South Pacific, more frequent and intense cyclones are the culprit, disrupting livelihoods and upsetting a fragile infrastructure. In Syria, armed conflict is driving families from their homes to other parts of the nation and to neighboring countries in search of safe haven. Deloitte professionals are providing support in both crisis situations.

Deloitte New Zealand is working with Oxfam New Zealand (Oxfam NZ) to co-create innovative solutions to deliver post-cyclone relief to multiple countries in the Pacific region while Deloitte Middle East is supporting Syrian refugee response. Elsewhere, following the Ebola outbreak in West Africa, DTTL made a significant donation to the U.N. secretarygeneral’s Ebola Multi-Partner Trust Fund, which directed support toward the greatest identified needs of the United Nations Mission for Ebola Emergency Response (UNMEER). DTTL and Deloitte member firms also donated more than US$760,000 to charitable organizations working on relief efforts in the wake of the 25 April tremor that ravaged Nepal and parts of northern India. Learn more about Deloitte’s humanitarian initiatives. In FY2015, Deloitte contributed more than 380,000 hours to education and skills activities, reaching more than 390,000 young people.

“The core capability we bring to the table is the ability to scale solutions. This is how Deloitte member firms can make the greatest impact,” says David Pearson, Deloitte Global Chief Sustainability Officer. “We search the globe for great ideas, then we use Deloitte resources and relationships to help expand those ideas and drive outcomes that reach the most people possible.” The Deloitte US RightStep™ Innovation Prize, the Social Innovation Pioneers program at Deloitte UK, and the Deloitte China Hubei Hope School Project are three successful initiatives that demonstrate what can be achieved by working with innovative education organizations to scale imaginative solutions. Learn more about how Deloitte scales education and employability solutions. The edge of tomorrow Deloitte Netherlands’ showplace hailed as the world’s greenest office building The Edge is billed as the world’s most sustainable office building and has the certification to prove it.

But, it’s more than that. The place is, well, fun. And interesting. And inviting.

So much so that professionals are actually applying for employment with Deloitte Netherlands because they want to work in the building. That it has become a recruiting tool is a satisfying side effect of a project designed to both redefine efficiency and change the way people work. The innovative, connected lighting panels contain about 28,000 sensors that detect motion, light, temperature, humidity, and even carbon dioxide levels. It’s these sensors, providing real-time data, which make The Edge possibly the smartest and most occupant-friendly office space in use today.

The sensors allow facility managers to assess how and when certain parts of the building are being used; and allow tenants—using a phone app—to control the brightness of the lighting above their work surfaces, adjust the climate of their particular areas, and find their way around the building. Upon its completion in late 2014, The Edge was awarded the highest BREEAM accreditation score ever— 98.36 percent—by the Building Research Establishment (BRE), the global assessor of sustainable buildings. Learn more about The Edge’s green technologies and sustainability across the Deloitte network. 4 . 1 2 3 Informing the debate Deloitte helps drive outcomes that benefit both business and society Ethics Our network’s purpose-driven pursuit of quality and integrity Independence Preserving the public’s trust Reporting process and materiality The report illustrates the many ways Deloitte makes an impact that matters Deloitte actively participates in dynamic regulatory discussions around the world, proactively contributing to the regulatory dialogue, promoting investor confidence, and emphasizing cross-border consistency. One of Deloitte’s focuses remains on audit and audit quality. Deloitte leaders continue to collaborate with relevant stakeholders, including regulators and policymakers, on current hot topics that include audit of the future, audit quality indicators, auditor reporting, and strengthening the role of the audit committees. Respected organizations around the world trust Deloitte professionals to execute their most ambitious projects, manage highly confidential information, and develop ideas and approaches that can alter the course of their businesses. That trust has been and continues to be earned thousands of times each day by Deloitte member firm people. For 170 years, objectivity and impartiality have been the cornerstones upon which our network is built. Without them, Deloitte could not cultivate confidence and trust in the markets, nor could we uphold the integrity of organizations.

Our very Purpose would be beyond our reach. There can be no margin for error. That’s why every Deloitte professional, from the newest assistant to the most senior leader, must comply with well-established policies and procedures to ensure his or her independence. Regulators demand it.

Clients need it. The public expects it. So, we deliver it. The chief objective of the Global Report is to provide all Deloitte stakeholders with a broad and balanced picture of our network’s impact on society, our Purpose-driven business activities, and the actions that exemplify our aspiration to become the undisputed global leader in professional services. Standards for independence are shaped by legislation, regulations, professional guidance, and public expectations. Maintaining independence, therefore, is both a matter of compliance with rules and regulations and a matter of appearance. • Are highly affected by what we do; Deloitte member firms continue to strengthen their engagement with government and political leaders— contributing insights and experiences supporting economic success, growth, resilience, and sustainability—to help address long-term economic challenges.

For example, Deloitte professionals have collaborated with the Business and Industry Advisory Committee to Organization for Economic Cooperation and Development (OECD) on the development of a women’s entrepreneurship report; actively contributed to a number of B20 working groups, including those of employment and anti-corruption; worked with the UK and US governments to sponsor a forum to address human trafficking; and are engaged in discussions that support a pro-growth international trade agenda fit for purpose, including via the Trade in Services Agreement negotiations. Learn more about Deloitte regulatory and public policy engagement. 16 Ethical behavior among Deloitte professionals is nonnegotiable. That’s why DTTL Global Ethics and member firm ethics teams continue to aggressively integrate ethics into key initiatives and processes, stressing quality and consistency of approach across the network. During the past year, Deloitte enhanced its focus on anticorruption, appointing a DTTL anti-corruption officer and member firm anti-corruption champions who will work together to build and sustain effective programs. Deloitte Global Ethics launched a new classroom-based ethics training program for the network, and adapted its existing new-manager training session into four short e-learning modules for individuals whose travel schedules make classroom training difficult.

DTTL and member firm ethics leaders also developed a new package of measurement and communication tools to gauge and improve the effectiveness of the network’s local ethics programs. Learn more about how Deloitte integrates ethics throughout the network. Deloitte member firms comply with well-established policies and implement appropriate procedures to help safeguard their objectivity and independence. These policies and procedures help ensure member firms act in the interests of both the public and their clients, as well as protect our brand and reputation. Learn more about the policies and procedures Deloitte uses to help safeguard its objectivity and independence. We strive to address stakeholders’ interests and questions, while explaining our motivations, priorities, and approaches. We identify key stakeholders as those who: • Help influence Deloitte’s success; • Affect the markets, regulations, and industries in which we operate; or • Affect the supply of resources that we need to serve our clients, talent, and society. Deloitte professionals engage continuously with key stakeholders, both internal and external. In FY2015, this continuous engagement was supplemented with a structured stakeholder engagement and materiality assessment. Learn more about our reporting process, stakeholders, and material issues. 4 .

Contact us GlobalReport@deloitte.com Learn more www.deloitte.com/GlobalReport Stay connected 1 2 3 #GR2015 Produced by DTTL Global Brand & Communications “Deloitte,” “we,” “us,” and “our” refer to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee (“DTTL”), its network of member firms, and their related entities. DTTL and each of its member firms are legally separate and independent entities. DTTL (also referred to as “Deloitte Global”) does not provide services to clients. Please see www.deloitte.com/about for a more detailed description of DTTL and its member firms. Deloitte provides audit, consulting, financial advisory, risk management, tax and related services to public and private clients spanning multiple industries.

With a globally connected network of member firms in more than 150 countries and territories, Deloitte brings world-class capabilities and high-quality service to clients, delivering the insights they need to address their most complex business challenges. Deloitte’s more than 225,000 professionals are committed to making an impact that matters. Deloitte serves 4 out 5 Fortune Global 500® companies. This publication contains general information only, and none of DTTL, its member firms, or their related entities (collectively, the “Deloitte Network”) is, by means of this publication, rendering professional advice or services.

Before making any decision or taking any action that may affect your finances or your business, you should consult a qualified professional adviser. No entity in the Deloitte Network shall be responsible for any loss whatsoever sustained by any person who relies on this publication. For the convenience of the reader, a member firm of DTTL in a particular country is identified in the body of this report by the word “Deloitte” coupled with a country name (e.g., Deloitte Greece), in lieu of using the actual legal name of the member firm of DTTL in that country. In many countries, services may be provided by the actual member firms but could also be provided in addition by—or solely by—subsidiaries or affiliates of the DTTL member firm in that country, which are often organized as separate legal entities. Specifically, with respect to the United States, Deloitte LLP is the member firm of DTTL and does not provide services.

Services in the United States are provided by Deloitte LLP’s subsidiaries; including Deloitte & Touche LLP, Deloitte Tax LLP, Deloitte Consulting LLP, and Deloitte Financial Advisory Services LLP. All of these US entities are referred to in this publication as “Deloitte United States.” Certain services may not be available to attest clients under the rules and regulations of public accounting. Additionally, for the purposes of this publication only, individuals are identified by their name and the nomenclature discussed above for referring to a DTTL member firm, whether that individual is a partner, principal, shareholder, member, director, or employee of that DTTL member firm or one or more of its subsidiaries or affiliates (e.g., Paige Flanagan, Deloitte Ireland). © 2015.

For information, contact Deloitte Touche Tohmatsu Limited. 4 .