Is the Future of Finance New Technology or New People?

22 | Akl`]^mlmj]g^ÕfYf[]f]ol][`fgdg_qgjf]oh]ghd]7Hj]hYjaf_^gjl`]^mlmj]ÕfYf[]^mf[lagf The DNA of the CFO Is the future g^ÔfYf[]f]o technology or f]oh]ghd]7 Hj]hYjaf_^gjl`]^mlmj]ÕfYf[]^mf[lagf

EY is grateful to all the participants in this study. In particular, we would like to thank those who readily shared their insights and personal experiences in a series of interviews: Gerry Bollman Frank H. Lutz Robin Stalker CFO, Fletcher Building CFO and Member of the CFO, adidas Group Management Board, Claude Changarnier Labor Director, Covestro AG Francesco Tanzi Vice President of International CFO, Pirelli & C. S.p.A Finance, Microsoft International Ryan Mangold Group Finance Director, Jacques Tierny Chris Chen Taylor Wimpey CFO, Gemalto COO & CFO, DDB Greater China Malina Marinova Zlatko Todorcevski Miguel Escrig Senior Finance Manager at CFO, Brambles Head of Finance, Telefónica Progress; Former CFO of Telerik Kmc]lm Kmcq!MhY\`qYq Deborah Gibbins

1 ;gfl]flk Executive summary 2 Part 1: Technology 4 Advanced data analytics and forecasting 5 Robotic process automation 9 Cloud and SaaS 10 9jlaÕ[aYdafl]dda_]f[] 11 Blockchain 11 Part 2: People 14 :mad\af_YkeYjl]j$egj]^gjoYj\%dggcaf_Yf\j]kada]flÕfYf[]^mf[lagf 15 ;`Ydd]f_af_l`]YkkmehlagfkYZgmlo`Yl[gfklalml]kÕfYf[]lYd]fl 23 The CFO: the pragmatic visionary 26 Other publications of interest 27 Survey demographics 28 Contacts 30

2 | Akl`]^mlmj]g^ÕfYf[]f]ol][`fgdg_qgjf]oh]ghd]7Hj]hYjaf_^gjl`]^mlmj]ÕfYf[]^mf[lagf =p][mlan]kmeeYjq In part 1 of this series, Do you define your CFO role? Or does it define you? The disruption of the CFO’s DNA¹, we showed how the CFO’s role is being reshaped by four major forces: • Digital • Data • Risk and uncertainty • Stakeholder scrutiny and regulation For CFOs to meet these challenges, they must not only re-evaluate their own competencies, but also equip their function with the right tools, and surround themselves with the right team. In part 2 of this series we explore the finance tools and team of the future, as we answer the question: Is the future of finance new technology or new people? Drawing on our survey of 769 CFOs and finance leaders in 32 countries and in-depth interviews with 22 CFOs, we envision a finance function that embraces technological innovations to improve effectiveness, increase efficiency and enhance insight. We also envision the people required to make the most of this technology, and provide the complementary skills and competencies to drive decision-making in support of the organization’s purpose and strategy. Our research shows that many CFOs believe that their current finance function is not equipped to meet the demands the future will place on it. Forty-seven percent say their current function does not have the right mix of capabilities to meet its future priorities. Sixty-nine percent see the finance leader role fundamentally changing as traditional finance tasks are automated or managed in shared services centers. We believe that many senior executives are, in fact, underestimating the changes on the horizon for the finance function. As technology, globalization and demographic trends continue to disrupt organizations, whole industries and indeed the working world as a whole, the role of the finance function will increasingly be brought into question. Where once its remit was predominantly that of a reporting function that focused on balancing the books, it will become a data-driven decision-center. Technology will play an increasingly significant role in executing many traditional finance tasks while at the same time generating greater insight. Meanwhile, finance people will spend a greater proportion of their time working with colleagues across the organization to make decisions in support of the strategy. ¹ Do you define your CFO role? Or does it define you? The disruption of the CFO’s DNA, EY, 2016

3 We explore the future of the finance function in two parts: 1. Technology *&H]ghd] Advances in new technologies — such as in-memory CFOs must make bold moves to build a finance function that computing, the cloud, analytics, mobility, artificial intelligence has the right people, with the right skills, to complement and (AI), blockchain and robotic process automation (RPA) — offer get the most out of new technologies. Furthermore, many will CFOs an exciting opportunity to reimagine what the finance play an important role in the people strategy for the function should look like. In addition, many CFOs are now key organization as a whole. Success as a CFO will depend on players in driving adoption of these technologies more broadly combining the intelligence of smart technologies with the in the organization, and in leading the transformation that brains, emotional intelligence and interpersonal skills of ensues from technology innovation. talented people. But to make the most of new technologies’ ability to save costs, manage risks and increase insight, finance leaders must challenge assumptions, take calculated risks and encourage experimentation. At the same time, they must also manage the risks inherent in each technological innovation. :mad\af_l`]^mlmj]ÔfYf[]^mf[lagf2l][`fgdg_qhdmkh]ghd] Technology H]ghd] Automating the future >g[mkgfhYjlf]jaf_ 65% 67% of respondents say that standardizing and of respondents believe that improving business automating processes and building agility hYjlf]jaf_Z]lo]]fÕfYf[]Yf\l`]Zmkaf]kkak Yf\imYdalqaflghjg[]kk]koaddZ]Yka_faÕ[Yfl a major priority. hjagjalq^gjlgegjjgoÌkÕfYf[]^mf[lagf& State-of-the-art tech F]okcaddk 58% 57% of respondents say combining state-of-the-art of respondents say that building skills in technology with process improvement will be a predictive and prescriptive analytics is critical eYbgj^g[mk^gjl`]^mlmj]ÕfYf[]^mf[lagf& for the future. The answer to the question “Is the future of finance new We hope you enjoy reading this study. technology or new people?” is, of course, neither one nor other but both. In the finance function of the future, leading CFOs will be those that strike the right balance between technology and people, and continually work to focus each on the tasks that best suit their skill sets. This will free the CFO up to focus on innovation, responding to the rapidly changing business context and driving the business forward.

4 |4 | Akl`]^mlAkl`]^mlmjmj]g]g^^ÕfYf[ÕfYf[]f]]f]olol]][`fgdg_qgjf][`fgdg_qgjf]ooh]ghd]h]ghd]77HjHj]]hhYYjaf_jaf_^^gjl`]^mlgjl`]^mlmjmj]ÕfYf[]ÕfYf[]^mf[lagf]^mf[lagf HYjl)2 Technology

5 9[gfn]j_]f[]g^l][`fgdg_a]kakfgo\janaf_l`]f]plh`Yk]g^ÕfYf[]ljYfk^gjeYlagf$ Y[[]d]jYlaf_l`]bgmjf]ql`Yl;>GkZ]_YflgoYj\\]dan]jaf__j]Yl]jafka_`lafl`])11(koal` ]fl]jhjak]j]kgmj[]hdYffaf_ =JH!aehd]e]flYlagfk&L`akf]ploYn]g^l][`fgdg_a]koadd ljYfk^gjel`]oYql`YlÕfYf[]Y\\knYdm]&>afYf[]d]Y\]jkf]]\lgmf\]jklYf\c]q]e]j_af_ l][`fgdg_a]k$eYc]hjY_eYla[\][akagfkYZgmll`]ghlaemelae]lgafn]kl$\][a\]o`]flg jmfhadglkgjgl`]jafalaYlan]klgl]klf]oaffgnYlagfk$Yf\\]l]jeaf]l`]h]ghd]kcaddkYf\ [YhYZadala]kl`]qoaddj]imaj]& “ Technology is changing so rapidly and arriving so fast, there is a certain motivation to be cautious and take a wait- and-see approach. You might think, ‘I’m going to be smart and sit back a little bit and see what happens before I eYc]Y\][akagf&ÌL`]hjgZd]eakl`Yll`][`Yf_]akkgka_faÕ[YflYf\l`]f]o[YhYZadala]kkgY\nYflY_]gmk$l`Yla^ you take a wait-and-see approach, you run the risk of being put at a severe competitive disadvantage.” Tony Klimas EY Global Finance Performance Improvement Advisory Leader We explore five key technologies that we believe will play a significant role in transforming the finance function: 1 2 3 4 5 Advanced data analytics Robotic process Cloud and SaaS 9jlaÕ[aYdafl]dda_]f[] Blockchain and forecasting automation 1. Advanced data analytics and forecasting L`]nYdm]lgl`]^afYf[] • Improve ability to predict outcomes — and manage strategic risk — through scenario analysis ^mf[lagf and forecasting • Better understand the financial impact of key strategic and operational decisions • Provide better and faster information to key stakeholders, from investors to supervisory boards • Improve enterprise performance measurement by combining financial and non-financial data ;mjj]fleYjc]lY[lanalq • Active take-up — most organizations have made dedicated investments and are committed to using advanced analytics across decision-making processes In the future, contending with volatility and uncertainty will be CFOs must actively investigate how they can use sophisticated, the new normal. A range of forces — including growing forward-looking analytics to enhance their organization’s pressure on natural resources, more frequent and severe performance in a range of areas, for example by: climate events, and increasingly sophisticated cyber attacks — • Deploying big data platforms that are designed to be will create ever-greater challenges for multinational interrogated by computers rather than humans, using organizations, particularly as global operations become machine learning to analyze massive data sets to make fine- increasingly connected. grained predictions, such as how an asset on a balance sheet To be able to set the right course for the future, finance will behave. functions must get better at processing — and extracting • Combining structured and unstructured data (such as social forward-looking insights from — large amounts of data, keeping media and web monitoring) to identify rogue activities, track of new types of data and incorporating them into their patterns and trends and mitigate risks such as fraud models as they emerge. or cyber breaches.

6 | Akl`]^mlmj]g^ÕfYf[]f]ol][`fgdg_qgjf]oh]ghd]7Hj]hYjaf_^gjl`]^mlmj]ÕfYf[]^mf[lagf CFO stories Chris Chen COO & CFO, DDB Greater China “ A priority for me is to explore the future of the business. We are doing business in China and I need to make sure that everything here is legal and complies with both the company’s policies and the country’s laws. But, on the other hand, I think the most important thing for a senior executive of this company — the CEO and myself — is to explore: ‘What is the future for the business? Where do we want the company to be in five years’ time?’ Part of our job as an agency is to find creative ideas. So we need to know what the future is. I recently had a discussion about virtual reality. In another meeting we were talking about mobility. These are the things a CFO needs to look at and discuss.”

7 L`]^mlmj]g^lYpeYfY_]e]fl2eYfY_af_\YlYYkYkljYl]_a[Ykk]l In their efforts to meet the increasing compliance demands According to Carolyn Bailey, Americas Digital Government of tax authorities, tax teams already consume and distribute Tax Transformation Leader at EY, tax teams need to radically significant amounts of data. But in some countries, tax streamline the collection of data through information authorities now expect that data in real time — an management systems. “The data they collect should be expectation that is likely to become more common as tax aligned with a global data management strategy that administration around the world becomes increasingly addresses tax requirements across multiple jurisdictions,” sophisticated. Many organizations are not ready for this she said. “Once collected, the data should be analyzed to change. In particular, organizations that continue to rely on identify the value it contains for the organization, then manual spreadsheets, which can be inefficient and raise the assessed for sensitivity and various audit risks before being risk of tax statement errors and potential reputational shared with tax authorities around the world. By establishing damage, will find it difficult to comply. robust data management and analysis processes for tax information, CFOs can help make this possible.” For Simon Kelly, former CFO and COO at Australian media J]Y[`af_qgmjYfYdqla[khgl]flaYd company Nine Entertainment Co., this means historical data Many organizations find it difficult to introduce the is losing some of its importance. “While historical information technology needed to generate forward-looking insights. is important for areas such as reporting and tax, it doesn’t For example, they are often impeded by multiple ERP add a great deal of value beyond that,” he says. “Value-add systems, legacy applications and non-integrated architecture. is in the real-time data about how things are trending in our business right now.” In the future finance function, however, inflexible and costly “In the future, the investment is going to need to be in IT infrastructure will be replaced by scalable and innovative real-time data and in generating insights so businesses can IT. Many CFOs are already incorporating new advances into respond to changing consumer preferences without waiting their ERP systems, such as: for accountants to pull together historical financials. The • In-memory computing historical transactional part of finance is really a commodity, not a competitive advantage,” said Kelly. • Cloud and hybrid cloud deployments (see p.10) For Vincent dell’Anno, EY Executive Director, Performance • Better and more mobile user experiences Improvement, Ernst & Young LLP, part of the investment • RPA to federate data from different systems. CFOs should be making is in real-time data, and the other Choosing the right tools to capture and mobilize data and part is in real-time analytics. “For example, there are enable the insight-driven enterprise is a complex challenge, sensors that are required to act in real-time or as close to particularly given the rapid pace of technological innovation. that as possible,” he says. “That means you want to facilitate But CFOs also need to focus on the “consumption” side. analytics as close to the source of data as possible, you want Finance leaders need to think about, for example, where to be able to drive streaming analytics where possible and technological innovations such as those cited might come relevant to the business problem.” up against the brick wall of organizational resistance, or This is also reflected by our survey, in which “improving what incentives systems are needed to encourage adoption. data and analytics capabilities to transform forecasting, Change management will be essential to address this critical risk management and understanding of value drivers” was “people” dimension. the priority most cited by finance leaders as number one for their finance function (see Figure 1). >a_mj])2 Priorities for the future finance function Improve big data and analytics capabilities to transform forecasting, risk management and understanding of value drivers 23%* Meet the need for new skills by transforming how finance talent is recruited, retained and developed 22%* Make significant changes to the finance function skill set 17%* Reduce finance function costs through new technologies such as robotics and process automation 14%* Refine risk management capability, including cyber 13%* Drive efficiency improvements through offshoring, shared services and outsourcing 12%* * % of finance leaders that chose this priority as number one

8 | Akl`]^mlmj]g^ÕfYf[]f]ol][`fgdg_qgjf]oh]ghd]7Hj]hYjaf_^gjl`]^mlmj]ÕfYf[]^mf[lagf CFO stories Mavinakere Ranganath CFO, Infosys “ Technology is changing the way businesses are run. But if you look at most of the large companies, their internal financial systems are lagging the technology trend. It is important that internal financial processes adopt the latest technology like mobility, AI and digital experience, to ensure straight through processing, predictive controls and analytics for timely decision making. CFOs need to be aware of the technological changes that are happening and understand how they can leverage them for their own internal financial processes.”

1 *&JgZgla[hjg[]kkYmlgeYlagf L`]nYdm]lgl`]^afYf[] • Reduce costs significantly by automating key processes ^mf[lagf • Improve consistency, control and traceability • Improve quality through reduction in error rates • Overcome systems fragmentation by consolidating data from disparate systems ;mjj]fleYjc]llYc]%mh Developing — organizations are growing their understanding of the technology and its benefits. Take-up poised for significant growth Imagine a team member in tomorrow’s finance function who: For EY’s Tony Klimas, automation offers the opportunity to • Represents no significant overhead drive the next evolution in how finance is delivered. “The traditional offshore model is starting to fall apart,” he explains. • Works much faster than their colleagues “Many popular offshore locations are becoming more • Completes huge volumes of repetitive tasks without ever prosperous, and what used to be ‘cheap’ isn’t so ‘cheap’ making an error anymore. People are looking for alternatives and they’re looking to leverage technology advances, from robotics to • Keeps a perfect audit trail artificial intelligence.” In the future finance function, RPA technology will play an This point of view is echoed in our research: 58% of important role. 65% of respondents worldwide said that respondents worldwide said that “combining state-of-the-art “standardizing and automating processes and building agility technology with process improvement” is a significant and quality into processes” is a significant priority for the priority. And it is a particular focus for large and complex finance function. And while it is a particular priority for cost- global organizations, whose CFOs must often seek to cut focused CFOs, it is also important for those focused on growth waste, standardize approaches and combat (see Chart 1). bureaucracy and inflexibility. ;`Yjl)2Automation a priority for tomorrow’s ;`Yjl*2Tech-enabled process improvement critical finance function for large organizations Percentage of respondents who believe that combining state-of-the-art Percentage of respondents who say that standardizing and automating technology with process improvement is a critical/significant priority for processes and building agility and quality into processes is a significant priority tomorrow’s finance operating model 68% 69% 60% 59% 53% US$5b annual revenue) (>US$500m-US$5b) (US$100m–US$500m) Claude Changarnier, Vice President of International Finance at The shift to RPA can help improve organization performance in Microsoft International, believes that automation plays a key a number of ways by enabling CFOs to: role in helping the finance function strike a balance between adding value and effective control. “The approach we have • 9mlgeYl]c]q^afYf[]hjg[]kk]k$^jge\YlY taken over the past years and that we are continuing to take j]hgjlaf_lghYqe]flk today is trying to automate, centralize and/or outsource For example, improving corporate reporting by using RPA to transaction-based activities,” he says. “This is so that we can access and present data from multiple systems. free up time for people to be able to do two things. One, to add • Target system inefficiencies value to the business by providing business insight. Two, to put RPA can bridge the gaps between different ERP systems in in place a very strong controls and compliance environment in cases where organizations have not yet achieved a single the different subsidiaries that we are operating in the world.” integrated system. They can also act as an interface between an ERP and critical legacy systems. • Aehjgn]l`]imYdalqYf\kh]]\g^^afYf[]hjg[]kk]k RPA provides a clear audit trail record, which can make compliance with regulatory requirements easier to manage.

)(t Akl`]^mlmj]g^ÕfYf[]f]ol][`fgdg_qgjf]oh]ghd]7Hj]hYjaf_^gjl`]^mlmj]ÕfYf[]^mf[lagf Akl`]^mlmj]g^^afYf[]jgZgla[7 It’s also about how you improve your service or create For EY’s Chris Lamberton, Robotics and Process Automation new services. Global Center of Excellence Leader, successful finance “The best way to think about robots is as the ultimate functions in the future will be those that find the right balance companion to humans. Let robots do the grunt work, and between robotics and people, with each doing what they do free up people to do things they’re really good at, which is best. “Ultimately, what you want to establish is the right analyzing all the data that robots can pull together,” combination of people and robots,” he says.“Quite often it’s says Lamberton. not just a cost play.” 3. Cloud and SaaS L`]nYdm]lgl`]^afYf[] • Reduce costs, as organizations only pay for what they use ^mf[lagf • Provide greater flexibility, in terms of adopting new technologies and flexing to changes in demand • Improve disaster recovery, as back-up solutions and capacity can be accessed from anywhere, taking into account different circumstances, such as loss of power ;mjj]fleYjc]llYc]%mh Deploying — widespread adoption by organizations across the world is growing fast Although a company’s financial management system is critical 1. Security to its success, many organizations have outdated and CFOs will need to proactively manage the associated risks fragmented systems. Cloud and SaaS solutions now offer of these tools, particularly in relation to data security and opportunities to transform system functionality and drive compliance with different regulatory regimes. standardization in a faster, smarter way. Cloud-based infrastructure and cloud-based SaaS applications can: *&<]n]dghaf_l`]kcaddklgeYc]Z]klmk]g^l][`fgdg_a]k • Klj]Yedaf]gh]jYlagfk In our research, 55% of respondents said that “improving Cloud-based ERP, for example, can allow disparate teams to digital technology skills in areas such as mobility, the cloud create and access the same data, which can enable quicker and SaaS” would be a significant people and skills priority decision-making. for the future finance function. This improvement in digital technology skills is important across many industries, • Reduce costs but it is a particularly high priority in the media and Because organizations can quickly increase or decrease the entertainment sector, where companies need a scalable number of applications they use, they only pay for what they infrastructure to manage and monetize all the digital need, rather than what they thought they would need six content they produce. months ago. Maintenance costs can also be cut because systems upgrades can happen automatically. Cloud and SaaS solutions may also avoid the need for costly and complex rationalizations of on-premise ERP. ;`Yjl+2Building cloud and SaaS skills • Hjgna\]_j]Yl]j^d]paZadalq Percentage of respondents by sector who believe that improving digital SaaS can help organizations keep pace with rapid technology skills in areas such as mobility, cloud and SaaS will be a significant developments in technology, such as new analytics tools, priority over the next five years and help the function respond to fluctuations in demand. Media and entertainment 67% While these tools can provide significant opportunities to Automotive and transportation 65% improve performance, they will need to be weighed against

11 4. Artificial intelligence L`]nYdm]lgl`] • Improve strategic insight by analyzing unstructured data and helping business analysts find signals and ^afYf[]^mf[lagf patterns in large data sets • Improve risk management by identifying patterns in large data sets that are indicative of fraud or other concerns ;mj]fleYjc]l Developing — leading organizations are making early investments and developing practical applications lYc]%mh AI systems are capable of ingesting information and Loren Williams, Chief Data Scientist at EY Global Analytics instructions, learning from interactions with human beings and Center of Excellence, believes that although AI will play an responding to new situations and questions in a human-like increasingly important role, it will not do away with the need way. In addition, AI complements technologies such as RPA, as for human financial experience and insight. “There are many it involves systems that do not just follow rules, but can cases where an AI system will augment the intelligence, recognize patterns, learn and adapt to new situations. For knowledge and awareness of an expert like a finance example, rules-based automation approaches often run up executive,” he says. “With routine transactions, the AI system against exceptions to the defined process, and AI can be used could have the authority to declare something out of bounds to target those exceptions. or to respond in a particular way to something that’s unusual. With these attributes, AI could be used to transform how But with big, important and complex decisions, you may see AI tomorrow’s finance function provides key services. AI systems systems providing advice or recommendations to help the could be trained to ingest tax regulations that are relevant to a human decision-maker, and back up those recommendations business, and also to absorb new regulations as they come based on its ability to gather, ingest and make sense of vast online, proactively advise the relevant person of the changes, amounts of structured and unstructured data.” and answer questions that he or she may have about their nature and implications. 5. Blockchain L`]nYdm]lgl`] • Streamline finance processes, such as contract enforcement, by integrating delivery and payment into ^afYf[]^mf[lagf the contract itself • Increase IT security, utilizing the unprecedented protection that blockchain offers against fraud and hacking • Improve transparency by accessing accurate transaction data from across your company’s extended value chain ;mjj]fleYjc]l Exploratory — organizations are researching, assessing potential use and value, and discussing within lYc]%mh executive team Blockchain has the power to challenge many of the accepted network agreeing who can do what within the ledger. principles and norms of global trade, global financing and With Bitcoin, for example, individuals within the network global supply chain management. It reinvents that basic (called “miners”) had permission to validate an aggregated building block of commerce, the ledger, for a digital, group of transactions (a “block”), with these miners rewarded connected age. for their efforts with 25 Bitcoins. Once validated, the block A blockchain is a digital ledger — a distributed database that was placed in the “chain.” Instead of a central authority can be shared across a network of computers based in like a bank validating transactions, validation for Bitcoin different sites and geographies. An identical copy of the ledger is essentially crowdsourced. is held by all of the people participating in a blockchain While blockchain emerged as a technology for Bitcoin, its network. Any changes to the ledger are reflected in just attraction is more the algorithmic technologies that underpin minutes or even seconds, thus providing all involved with real- it. This technology makes it possible to transform the ability of time information and the capacity to track trends. a ledger to record, enable and secure a huge number of The security of the information in the ledger, and its accuracy, transactions, and could be used in multiple sectors, from are protected cryptographically, with the participants in the financial services to tax collection in the public sector.

12 | Akl`]^mlmj]g^ÕfYf[]f]ol][`fgdg_qgjf]oh]ghd]7Hj]hYjaf_^gjl`]^mlmj]ÕfYf[]^mf[lagf CFO stories Frank H. Lutz CFO and Member of the Management Board, Labor Director, Covestro AG “ I think wherever we can be supported by technology, we should try to do that. I think that financial engineering will become more and more important, which means looking for better ways to take out risk, for example, by hedging, by insurance policies and also by markets. Turning data into information will become more and more crucial too. If you have a situation where the data is available within the company, there is, for sure, a person who knows the answer to a question that the CFO has.”

13 In the future finance function, CFOs will use blockchains to: farmer from the Chinese vendor, transfers ownership of the • Increase IT security cotton to the Chinese textile mill and automatically pays Blockchains are considered by commentators to be tamper- and files the documentation for customs and duty with the proof, providing unprecedented protection against fraud and Chinese Government. “Smart contracts automate this process hacking. There have been incidents where users have that, today, has a lot of manual steps and paperwork involved.” entrusted their private keys to exchange operators and the However, blockchain is still a new technology that still requires operators have had their security broken, but the blockchain development in areas such as contract dispute management. security itself has not been breached. “What has yet to be fully designed is a mechanism for handling • Manage extended value chains disputes in smart contracts, a topic that I believe will emerge Instead of having to reconcile the internal system of record as an important area of blockchain research in the future” says with information from suppliers and partners, CFOs will be Paul Brody. “Ultimately, I expect to see hybrid contracts that able to pull data from multiple blockchains to create their blend the automation of smart contracts with the provisions system of record. for dispute resolution that exist in traditional agreements.” • Streamline contract enforcement Blockchain technology is likely to play an important role in the A smart contract feature means that the delivery and finance function in coming years. CFOs should be anticipating payment relating to a transaction can be integrated into the how they are going to build the relevant competencies and skill contract itself. With blockchains, the ledger is programmable sets. They also need to start discussing the future of their and contains logic, so you can have a rule that makes a system of record, given that organizations could move from payment on the completion of a service. working with a single, monolithic system of record inside the Paul Brody, EY Americas Technology Strategy Leader, enterprise to working with many different systems. outlines how smart contracts could transform international F]ol][`fgdg_q$Zmlgd\[`Ydd]f_]kj]eYaf trade, saying: Before making large investments and diving into major “Imagine a container ship, carrying cotton from an Australian overhauls, CFOs will of course want to build a clear farmer to a Chinese vendor for processing into clothing, with understanding of which new technologies will be most an Internet-of-Things (IoT) device tracking the ship as it travels beneficial to their finance function, and they will need to be across the ocean. The farmer has a contract with the Chinese highly selective. Importantly, CFOs must also remember that vendor that states that the farmer gets paid based on the the success of any technology greatly depends on the skills of weight of the cotton adjusted for its humidity level when it the people using it. In our research, CFOs cited “staff capacity enters the port of Hong Kong — you could actually write that to adapt to change” as the main barrier to adopting new into the blockchain software code as a smart contract. technologies. Effective change management — including “When the GPS of the container ship enters Hong Kong harbor, transparency about the rationale, and continuous and the digitally connected weighing and humidity sensors communication — will be critical for technology assess the cotton, then those two pieces of data combine and transformations to be a success. trigger the smart contract. That then pays the Australian

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15 L][`fgdg_a[YdZj]Ycl`jgm_`kYj]\akjmhlaf_Zgl`Zmkaf]kkkljYl]_qYf\l`]oYqkl`YlÕfYf[] l]YekogjcYf\[gddYZgjYl]&9k;>GkZmad\lgegjjgoÌkÕfYf[]^mf[lagf$l`]qoaddf]]\lgÕf\ h]ghd]oal`l`]kcaddkÈYf\eglanYlagfÈlg[gehd]e]fll`]l][`fgdg_a[YdaffgnYlagfk$Yko]dd Yklg]eZjY[]jYha\[`Yf_]$\a^^]j]fljgd]kYf\f]oYhhjgY[`]k&9kl`]lggdkg^lgegjjgo Z]_aflgYjjan]Yf\hdYqYjgd]$l`]f]]\Yf\aehgjlYf[]g^ÕfYf[]h]ghd]oaddfglYZYl]$Zml l`]kcaddkl`]qj]imaj]oadd]ngdn]& Traditional approaches to finding and developing talent are The next evolution for the finance function will be to become under pressure as a result of major demographic and a data-driven decision center. Finance professionals will be technological shifts: even less focused on generating reports and information, • 9lYd]flk`gjlY_]`Yk`alafl`]\]n]dgh]\ogjd\& and far more focused on using the available data to drive Organizations face extremely tough competition for the decision-making. best data analytics and digital talent. The finance function’s operating model must evolve to support • Eadd]ffaYdkoaddZ][ge]af[j]Ykaf_dqaf^dm]flaYd& this shift. The future operating model will need to be: The millennial generation is a digital generation, and they • Smarter collaborate in different ways to their older colleagues. All transactional finance processes will be fully automated in • Increasing use of smart machines means that outsourced or captive finance factories. Finance headcount gj_YfarYlagfkemklj]eg\]dl`]jgd]kg^keYjlh]ghd]& in these factories will reduce, with teams focused largely on As technology advances, people’s roles will also have to managing exceptions. change. Smart machines should be used in a way that drives • Egj]^gjoYj\%dggcaf_ value and complements an organization’s people, impacting The future finance function will combine finance data with productivity and making day-to-day roles more engaging. external information to help model and predict business Given these challenges, CFOs will need to: outcomes, identifying the most profitable opportunities. • Design a future operating model that focuses their best • Better aligned to the business people on key priorities and delivers a smarter, more There will be much closer alignment and engagement with forward-looking and resilient finance function. the business, with finance professionals spending more time working alongside key internal stakeholders, challenging • Challenge their own and others’ assumptions about what their strategic plans and modeling and predicting constitutes finance talent, how to find the right profiles and different scenarios. develop the skills needed to thrive in an increasingly • More resilient connected, data-rich future. The future finance function will be more focused on :mad\af_YkeYjl]j$egj]^gjoYj\%dggcaf_Yf\ managing uncertainty through strategic risk management. resilient finance function Finance will use predictive analytics to investigate the implications of strategic decisions, to plan for possible The transformation of finance function operating models has shocks and to manage the growing threat of cyber risk. already delivered greater efficiency and has freed on the best CFOs believe that strategic risk management is among the top finance talent to focus on high-value activities. Many CFOs capabilities that organizations will demand of their future have brought transactional accounting and finance processes finance functions (see Chart 4, p.17). This capability is into centralized “finance factory” models, featuring shared considered particularly important by Group CFOs, 62% of services, managed services and outsourcing. Where this has whom consider it critical, compared with 53% of Regional occurred, finance functions have become leaner and more and Divisional CFOs. efficient, and CFOs and their key executives have more time to focus on their organization’s strategic priorities. “ The role of finance in data analytics and forecasting is, I think, at the core of what we have to do, and what we’re going to have to do more and more. Let’s assume that all our customers are on the cloud. We’re going to know in real time what they do, how they use the systems, what they do with it and the kind of competitive software they buy, so we’re going to have full visibility on what the customer will do with our software. Consumption is the new currency.” Claude Changarnier Vice President of International Finance, Microsoft International

16 | Akl`]^mlmj]g^ÕfYf[]f]ol][`fgdg_qgjf]oh]ghd]7Hj]hYjaf_^gjl`]^mlmj]ÕfYf[]^mf[lagf CFO stories Zlatko Todorcevski CFO, Brambles “ Building rapport with people is absolutely critical today, and will probably become more critical, particularly if you think about the diversity of where we go and who we deal with. Thinking through how we give those skills to people is critical. I’m concerned that today we don’t necessarily have those skills at the mid-level of our finance organization. I’m not writing that level off, but in terms of what we need in the next 10 to 15 years, we probably need to focus on building better people skills with the younger people, right at the outset of their careers.”

17 ;`Yjl,2Managing tomorrow’s risks executive function. This team will lead on major priorities, Looking ahead five years from now, what are the top finance capabilities that will from back-office operations/shared services to accounting be critical to meeting the demands of your organization? and control. Job titles will become less important as people demonstrate their value through the skills they bring and the Strategic risk management, responsibilities they assume. including reputational, 57% regulatory and cyber risk • As the economy becomes more connected, and collaboration and effective information flows become Sophisticated planning 56% increasingly important, finance business partners and and forecasting centers of excellence will provide the interface not only with Big data and andvanced analytics internal stakeholders, but also external stakeholders and to provide business intelligence 53% their counterparts in ecosystem partners. Business partners and management information and centers of excellence will become the heart of the function, with permeable organizational borders that allow Corporate reporting, including them to build effective relationships and accelerate data and meeting increased demands of 46% information flows to (and from) external stakeholders, such stakeholders, from boards to investors as technology partners. Management of regulations to meet 40% • As finance and accounting processes are increasingly increasing and changing requirements automated, the finance back-office will shrink, as a virtual workforce begins to replace large numbers of full-time Investor relations 33% employees in shared service or outsourced arrangements. The concentration of people effort and headcount in the finance function will instead shift up into the business <]ka_faf_l`]^mlmj]^afYf[]gh]jYlaf_eg\]d partnering and center of excellence layers. Tomorrow’s finance operating model will look very different from today’s as finance leaders respond to a more demanding and connected world. As Figure 2 (p.18) illustrates, the future operating model will be shaped by a number of drivers: • As the CFO role in many organizations expands to such a degree that it becomes too big for one individual to do well, CFOs will need to pull their best leaders into a finance ;]fl]jkg^]p[]dd]f[]2Yf]ngdnaf_[gf[]hl In many organizations, finance centers of excellence emerged as a means of streamlining and centralizing expertise for the use of stakeholders across the business, particularly in areas of specialism, such as analytics or tax. However, as the demands on finance functions and the tools available to them change, finance leaders should be open-minded about revisiting how to use these centers to their best advantage. For example, analytics centers of excellence — rather than being located at the organization’s head office — might be more strategically located with proximity to the best skills, such as near an academic or university hub where there is the best chance of finding graduates with analytics education and experience.

18 | Akl`]^mlmj]g^ÕfYf[]f]ol][`fgdg_qgjf]oh]ghd]7Hj]hYjaf_^gjl`]^mlmj]ÕfYf[]^mf[lagf >a_mj]*2Design principles for tomorrow’s finance function operating model Today Strategy, operations, people CFO Strategic advisor to the lines of business :mkaf]kkhYjlf]jk Risk, financial planning, tax, etc. Centers of excellence Low-value, high-volume transactional processes (i.e., not requiring judgment) >afYf[]^Y[lgja]k2k`Yj]\k]jna[]k[]fl]jk and outsourcing Lgegjjgo K]fagj^afYf[]]p][mlan]^mf[lagf2 KljYl]_a[Zmkaf]kkhYjlf]jk2 The finance executives manage complex, growing and • Data-driven scenario and demanding responsibilities of the finance leadership role. performance modeling They work with the CFO to focus on: • Resource allocation to drive innovation • External relations and digital propositions • Business model and digital innovation • Liaison with business units and functional • Talent leadership leaders • Ecosystem and partnerships K]fagjÔfYf[] • Megatrend response executive function • Ethical decision-making ;>G$ÕfYf[];GG$ [`a]^Y[[gmflaf_g^Õ[]j Internal KljYl]_a[Zmkaf]kkhYjlf]jk External stakeholders, stakeholders, including technology including partners, key suppliers, technologists, entrepreneurs and business unit and innovation hubs. functional leaders Next-generation centers of excellence Next-generation []fl]jkg^]p[]dd]f[]2 KeYjlÔfYf[]^Y[lgja]k • Finance analytics ?dgZYdZmkaf]kk • Forecasting, drawing on both enterprise k]jna[]k! KeYjl^afYf[]^Y[lgja]k2 data and sources such as customer behavior • Lean-driven finance services with fully and competitor activities automated transactional processes • Strategic risk and resilience • Data production and provision, • Connected reporting, including financial reporting and automated controls, scorecard reporting, sustainability KPIs, stakeholder management and self-service data communication across multiple channels • Headed by the COO of finance • Smart compliance and control, including data-driven early • Outsourcing vendors focused on higher- warning systems value and automated services, with • Financial management commercial terms focused on value

)1 LgegjjgoËkgh]jYlaf_eg\]dafY[lagf Imagine the leader of a business unit needs to understand Using AI tools, a data scientist in the financial analytics why demand for a once-market-leading product is steadily center of excellence would analyze this massive data set to falling. In the future finance function, the business unit identify trends and use visualization tools to model different leader would speak to their finance business partner, who scenarios. The business unit’s finance partner would go would ask the data factory to pull together internal data on through the scenarios with the unit’s leadership and the product line, but also combine it with external data on marketing team and help begin the work to develop wider market movements in the product segment and on possible solutions. competitor moves. 9da_faf_h]ghd]eYfY_]e]floal`l`]f]o For this operating model to work effectively, CFOs will need to gh]jYlaf_eg\]d put the right people management approach in place for each Driving value from new structures will have significant people constituency, including: implications. In the future model, there will be people whose • Skills profile main focus is on running the business, and others who are • Ongoing education and training, including exposure to new more concerned with changing the business, driving growth technologies and analytic approaches and business model innovation. For Chris Chen, COO and CFO at Shanghai-headquartered • Career path and development marketing agency DDB Group Greater China, this split has • Performance measurement and rewards framework effectively created two finance teams. “One team, based in For example, the leader of a finance factory will need to have Shanghai, is like a machine, dealing with the daily accounting skills and experience in driving process excellence through lean transactions,” he says. “The other is the commercial side, techniques and state-of-the-art technologies. This is including budgeting and analytics, which creates more value a very different profile from that of an economist in the for the company. That team can really perform well and the forecasting center of excellence, whose skills and experience value is tremendous.” may be in analyzing and modeling changes to the business model, such as the introduction of new digital services and products. To realize the promise of the future operating model, CFOs will need to rethink how they develop, measure and reward people with very different skills, from financial insight to operational management.

*(t Akl`]^mlmj]g^ÕfYf[]f]ol][`fgdg_qgjf]oh]ghd]7Hj]hYjaf_^gjl`]^mlmj]ÕfYf[]^mf[lagf CFO stories Deborah Gibbins CFO, Mary Kay “ From a skill-set perspective, we are constantly looking to slowly shift the organization to automate manual processes. Analytics are key, so we are growing our base of skills and positions that do more analytics for our business partners than we are spending time processing invoices or expense reports.”

21 9f]o^gjeg^Zmkaf]kkhYjlf]jaf_ Finding people with these abilities is not easy. Zlatko If organizations are to succeed in turning increasing amounts Todorcevski, CFO at Australian-headquartered supply chain of data into better strategic decision-making, then finance logistics company Brambles, believes that finance functions functions will have to make business partnering even more often struggle to get the right people to serve as partners to of a priority. CFOs must have a team of highly credible finance the wider business. He says that those chosen are often more executives who are capable of acting as finance’s interface with inclined, or better suited, to act in a controller role: “Their its internal clients. This team’s role will include helping to align natural inclination is to get into financial reporting without the work of the analytics teams with business priorities, and necessarily having the ability or desire to sit back and think helping leaders to understand the implications of their data. about what’s happening in the market.” Our research shows that 67% of CFOs worldwide believe that He also argues that many who do have the right skill set for “improving business partnering between finance and the the partnering role often find themselves unable to take it on. business” is a major priority for the finance function. It is a “Because of the lack of clarity around [the partnering role] — priority for organizations of all sizes, but a particular focus for and how their [own] roles have been developed or how their large and complex organizations. organizations have been constructed — they’re actually being tasked with developing statutory accounts, filing tax returns, ;`Yjl-2Business partnering a priority for all running a whole bunch of analysis on a country basis Improving business partnering between finance and business units or functions and so on.” is a significant or critical priority for tomorrow’s finance function To build that partnering capability, CFOs must: 71% 64% 68% • Shift what is expected of finance business partners, from challenging budgets to challenging business models • Find and reward those who combine subject matter expertise with the right abilities and skills to challenge business units’ strategies CFO at large CFO at medium-sized CFO at small organizations organizations organizations (>US$5b annual revenue) (>US$500m-US$5b) (US$100m–US$500m)

22 | Akl`]^mlmj]g^ÕfYf[]f]ol][`fgdg_qgjf]oh]ghd]7Hj]hYjaf_^gjl`]^mlmj]ÕfYf[]^mf[lagf CFO stories H]l]jN]ckdmf\ Executive Vice President & CFO, PANDORA A/S “ I have Peter’s formula: your business impact or success is the product of the technical quality of what you do multiplied by the acceptance you get in the organization. Success = quality x acceptance. We, the finance professionals, tend to focus a lot on the technical quality of what we do and too little time on acceptance. We make the world’s best reports and spreadsheets that will win the European excel award for technical sophistication and use of macros, but we spend no time explaining how they work, what the content is, or how it can drive business decisions. If it’s so complicated that you can’t explain it, and your line manager doesn’t understand it, then acceptance is zero, meaning success equals zero. So focus on acceptance and increase your business impact.”

23 ;`Ydd]f_af_l`]YkkmehlagfkYZgmlo`Yl[gfklalml]k To help attract, retain and develop the right talent, CFOs finance talent should consider these two key steps: As CFOs transform their function’s operating model, they will 1. HdYflg\Yq^gjlgegjjgoËk[jala[YdlYd]fl need to abandon many traditional ideas about what a finance CFOs need to get better at strategic workforce planning for executive and members of the finance team bring to the table: their finance function. Drawing on market trends and business units’ forward-looking plans, finance leaders can more • Look beyond traditional financial analysis skills. accurately forecast what talent is going to be needed, where Data gurus — such as statisticians and data scientists, and the major gaps are and how those gaps can be addressed. even behavioral scientists — will be critical in helping the finance function of the future turn data into fresh Our research revealed that CFOs see skills in sophisticated perspectives and strategic insight. analytics and deep regulatory knowledge as critical over the • Find digital finance talent. coming years (see Chart 6). In the digital age, finance functions will increasingly rely on ;`Yjl.2Skills for managing uncertainty and volatility those rare executives who are steeped in finance but are also literate in technologies such as blockchain and AI. Looking ahead five years from now, how important will the following people and Digital expertise will be needed not only to lead technology- skills initiatives be for your finance function? driven changes to the finance operating model, but also to 57% 57% 55% identify the implications of digital for the organization’s 47% business model and growth agenda. • <]n]dghZ]ll]j^afYf[]Zmkaf]kkhYjlf]jk& Great business partners have the influencing and communication skills to be able to convey fresh insights to internal clients on the strategic challenges faced by the business. Building skill in Improving Improving digital Developing predictive and regulatory technology skills deep technical • Mk]YddaYf[]klg_gZ]qgf\o`Ylqgmjgj_YfarYlagf[Yf prescriptive knowledge to keep in areas such as skills in key analytics abreast of an mobility, cloud, areas of risk deliver alone. uncertain and SaaS such as cyber As the world becomes more volatile, uncertain, complex and changing ambiguous, organizations are increasingly needing to look environment beyond their own borders to address business challenges and keep on top of innovations. Alliances with universities, As increasing automation of transactional finance tasks alters start-ups and other third parties will be essential to providing the finance professional’s traditional career path, finance the ongoing development that will be necessary for the leaders will need to redefine a new development curve. This organization to remain nimble and continually adapt. will include mapping out how they intend to develop people to acquire the breadth of skills necessary to progress through the ;geh]laf_^gjlYd]fl finance function, and nurture the finance leaders of the future. Finding the right talent for the future finance function is As they plan, CFOs may also keep their eye on several time becoming an ever more critical challenge, complicated by horizons in the near, medium and distant future. For Richard demographic trends, intense competition and changes in the Baker, EY Thames Valley and South Markets Leader, UKI, while ambitions and expectations of young finance professionals. In technical skills are at a premium now, they may ultimately take fact, 22% of CFOs cited “meeting the need for new skills by a back seat. “If I were advising a teenager on what to study transforming how finance talent is recruited, retained and now, I would recommend they learn IT and digital skills, as developed” as their number one strategic priority for the demand for those skills will continue to grow for at least the finance function of the future. next 10 years. But for the generation being born now, the skills needed when they enter the workforce may be different. Many jobs that are done today will be largely automated. However, the interpersonal and strategic skills that technology cannot replace will be more in-demand than ever,” he says.

24 | Akl`]^mlmj]g^ÕfYf[]f]ol][`fgdg_qgjf]oh]ghd]7Hj]hYjaf_^gjl`]^mlmj]ÕfYf[]^mf[lagf 2. EYc]mk]g^l`]\an]jk]ogjc^gj[]eg\]dkg^lgegjjgoËk take a flexible approach to sourcing the skills they need to on-demand economy confirm they meet capacity demands without scaling up in In the future, organizations will increasingly rely not only on areas that may then become obsolete. their own workforce to get the job done, but also on non- For Carl Smith, EY Global Talent Marketplace Leader, this employees — in other words, the external or contingent requires a fundamental shift, as most large organizations workforce, including freelancers and sub-contractors. and multinationals are not well equipped to manage A number of trends, from demographic changes to contingent workers. “Many companies do not have a good technology shifts, are driving the move toward a contingent handle on the sourcing and management of their workforce. Many workers now do not want to be tethered to contingent workforce, because organizations have been one company, and so they seek more flexible employment built over the years to deal with a permanent employee conditions. And in volatile markets, the need for specific base,” he says. “Organizations need to think about skills fluctuates wildly as technologies change and ‘integrated strategic workforce planning’ and rationalize consumer behavior shifts. This means that companies must processes, systems, roles and responsibilities, and analytics to enable effective sourcing and management of their contingent workforce.” ;gflaf_]flogjc^gj[]2c]qkm[[]kk^Y[lgjk Manage risk by being very purposeful in how you select contingent workers — for example, looking not just at skills, but also cultural fit. Establish processes to help source contingent workers when needed, and create a rigorous on-boarding process. Establish mechanisms to help contingent workers feel connected to the organization, so the relationship does not end up as purely transactional. Consider whether you have the right culture to attract contingent workers with key skills, and the right diversity policies to attract people with different backgrounds and experiences. Provide contingent workers with access to ongoing management and continuous learning. Implement the technology required to effectively source, manage, pay and assess contingent workers.

25 CFO stories

26 | Akl`]^mlmj]g^ÕfYf[]f]ol][`fgdg_qgjf]oh]ghd]7Hj]hYjaf_^gjl`]^mlmj]ÕfYf[]^mf[lagf L`];>G2l`]hjY_eYla[nakagfYjq The synthesis of technology and people will be critical for the that enable disparate teams to share information and make future finance function. Tomorrow’s finance function will only connected, data-driven decisions. And the function must succeed if it has people who can lead the technology debate introduce state-of-the-art automation to take care of the and who are willing to innovate in finance’s risk-averse culture. transactional components of finance. Equally, the function’s team members will only be able to focus CFOs should be continually identifying and assessing on higher-value tasks, such as analytics and forecasting, if the new technologies, modeling the potential return on technology is in place both to take care of transactional investment and making the investments required. processes and to provide the data needed for the generation When new technology investments are made, of strategic insight. effective change management will be crucial to To build tomorrow’s digitally enabled and talent-rich finance their successful implementation. function, we suggest three priorities for CFOs: 3. Afn]klafh]ghd] 1. Define a vision Widespread changes to the operating model of the finance A clear vision for the future finance function, which is function, including the use of shared services and aligned with the organization’s overall purpose and business outsourcing, are disrupting the traditional route to the top. strategy, gives finance team members around the world a CFOs need to find the new skills and capabilities required to common ambition, and provides focus for efforts and exploit new technologies and increasing volumes of data. investment decisions. In the digital age, CFOs’ vision for the They also need to build their people’s softer skills, such as future finance function needs to include how smart their communication and influencing skills. A coordinated technology and smart people should work together to approach will be one of the cornerstones to an effective create value. finance function in the future. 2. Rethink technology A bold technology strategy for the finance function will be critical. The function will need to build systems and tools

27 Gl`]jhmZda[Ylagfkg^afl]j]kl The DNA of the CFO k]ja]k2 Coming soon Partnering for performancek]ja]k2 HYjl)2the CFO and the supply chain HYjl*2the CFO and HR HYjl+2the CFO and the CIO HYjl,2the CFO and the CMO HYjl-2the CFO and CEO For more insights for CFOs and aspiring finance leaders visit

28 | Akl`]^mlmj]g^ÕfYf[]f]ol][`fgdg_qgjf]oh]ghd]7Hj]hYjaf_^gjl`]^mlmj]ÕfYf[]^mf[lagf Kmjn]q\]eg_jYh`a[k O]kmjn]q]\/.1ÔfYf[]d]Y\]jkYjgmf\l`]ogjd\^jge<][]eZ]j*()-lg>]ZjmYjq*().& J]n]fm] Total Over US$100 million and up to US$250 million 19% 149 Over US$250 million and up to US$500 million 19% 142 Over US$500 million and up to US$1 billion 16% 123 Over US$1 billion and up to US$3 billion 15% 117 Over US$3 billion and up to US$5 billion 9% 81 Over US$5 billion and up to US$10 billion 10% 65 Over US$10 billion and up to US$20 billion 5% 55 Greater than US$20 billion 7% 37 Af\mkljq Total ;gfkme]jhjg\m[lk 10% 80 9mlgeglan]Yf\ljYfkhgjlYlagf 10% 74 L][`fgdg_q 10% 73 Media and entertainment 8% 64 Da^]k[a]f[]k 8% 61 :Yfcaf_Yf\[YhalYdeYjc]lk 8% 60 Gl`]j[gee]j[aYd 8% 60 ;d]Yfl][` af[dm\af_]f]j_q$oYl]j$ljYfkhgjlYlagf$Y_ja[mdlmj]Yf\eYfm^Y[lmjaf_! 7% 51

*1 9_] J]_agf l Total a 5 t 23 21 To 375 182 163 United States 9% United States 70 United Kingdom 8% United Kingdom 60 Germany 7% Germany 53 China 7% China 52 India 7% India 51 France 6% France 48 Australia 6% Australia 46 Mexico 5% Mexico 40 49% Hong Kong SAR 4% Hong Kong SAR 33 Italy 4% Italy 33 Canada 4% Canada 32 Turkey 4% Turkey 32 South Korea 4% South Korea 30 Singapore 4% Singapore 30 Netherlands 3% Netherlands 22 Brazil 2% Brazil 15 Sweden 2% Sweden 13 Malaysia 2% Malaysia 12 Spain 2% Spain 12 United Arab Emirates 2% United Arab Emirates 12 Belgium 1% Belgium 11 Indonesia 1% Indonesia 11 Russia 1% Russia 11 Greece 1% Greece 9 24% Norway 1% Norway 7 21% Denmark 1% Denmark 6 Finland 1% Finland 6 New Zealand 1% New Zealand 4 Portugal 1% Portugal 4 Vietnam 0% Vientam 2 Ireland 0% Ireland 1 Japan 0% Japan 1 3% 3% 1% d 49 59 39 69 29 e o o o o o fus 40 t 50 t 30 t 60 t 18 t e Age r ?]f\]j Jgd] Total 652 Male Total 117 Female ?jgmh;>G'ÕfYf[]\aj][lgj 37% 281 15% J]_agfYd;>G'ÕfYf[]\aj][lgj 34% 154 Female Male G'ÕfYf[]\aj][lgj 20% 260 Gl`]jk]fagjÕfYf[]d]Y\]j 9% 74 85% Note: Some charts do not add to 100% due to rounding.

;gflY[lk EY | Assurance | Tax | Transactions | Advisory 9Zgml=Q Hanne Jesca Bax EY is a global leader in assurance, tax, transaction and advisory services. The insights and quality services we deliver help build EY EMEIA Managing Partner trust and confidence in the capital markets and in economies the Markets & Accounts world over. We develop outstanding leaders who team to deliver Ernst & Young Nederland LLP on our promises to all of our stakeholders. In so doing, we play a Tel: +31 88 40 71325 critical role in building a better working world for our people, for Email: [email protected] our clients and for our communities. EY refers to the global organization, and may refer to one or more Robert Brand of the member firms of Ernst & Young Global Limited, each of EY Global CFO Agenda Leader which is a separate legal entity. Ernst & Young Global Limited, a UK Tel: +1 201 872 5692 company limited by guarantee, does not provide services to clients. For more information about our organization, please visit Email: [email protected] © 2016 EYGM Limited. Rick Fezell All Rights Reserved. EY Americas Vice Chair — Accounts EYG no. 02571-163GBL Tel: +1 312 879 6568 BMC Agency Email: [email protected] GA 0000_07253 Annette Kimmitt ED None EY Asia-Pacific Accounts Leader This material has been prepared for general informational purposes only and is not Tel: +61 3 9288 8141 intended to be relied upon as accounting, tax or other professional advice. Please refer to Email: [email protected] your advisors for specific advice. Tony Klimas ]q&[ge'[^g EY Global Finance Performance Improvement Advisory Leader Tel: +1 212 773 5949 Email: [email protected] The views of third parties set out in this publication are not necessarily the views of the global EY organization or its member firms. Moreover, they should be seen in the context of the time they were made.