News release. Michael Wiget Media Relations Phone: +41 (0)

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1 News release Michael Wiget Media Relations Phone: +41 (0) EY Switzerland closes the fiscal year with CHF million in revenue and remains on course for growth thanks to its advisory business and the Financial Services business unit Audit and advisory firm EY Switzerland increased total revenue in the 2013/2014 fiscal year by 0.9 percent to CHF million. Net revenue rose by 1.3 percent to CHF million. Advisory Services grew strongly, driven primarily by the banking and insurance sectors. To sustain this growth course in a demanding market environment, EY made further investments in the next generation, created new jobs, reinforced employee training and education and created new working tools. Qualified employees provide the best advisory services to clients, enabling them in turn to refine their business models and grow sustainably. ZURICH, 9 OCTOBER 2014 EY Switzerland closed the 2013/2014 fiscal year on 30 June 2014 with fee income of CHF million (+0.9 percent), slightly slowing its growth rate of recent years. Net fee income without services rendered by foreign EY organizations and excluding expenses increased by 1.3 percent to CHF million. "This is a good result given the very demanding market environment and the costs of high levels of investment in quality and staff. By assiduously implementing our global strategy and investing in quality, we will succeed in building on our strong market position in selected growth areas in the current year," says Bruno Chiomento, CEO of EY Switzerland. Competitive environment for Audit and Assurance Services The environment for Audit and Assurance Services was especially competitive in the past year, and this is reflected in the 1.2 percent drop in revenue to CHF million. However, Forensic

2 2 Investigation & Dispute Services and Financial Accounting Services posted a very good performance. Closer analysis also shows that the various initiatives we have implemented on the local market were successful, and that we continue to be very broadly positioned with a good client portfolio mix. "As auditors we are confronted with a large number of challenges. We have responded and invested significantly in new methodologies and auditing tools. The goals we have set include further enhancing audit quality and offering clients demonstrable added value," says Daniel Wüst, Assurance Leader at EY Switzerland. Decline in demand for Tax and Legal Services Tax and Legal Services also suffered a slight overall decline in business in the fiscal year just closed, generating revenue of CHF million (-2.3 percent) after strong growth in the prior year. "Following a difficult phase, we are confident we will return to growth in the current year. Given the far-reaching reforms of the Swiss tax system that are currently under way, many companies are uncertain about their tax planning and are opting not to make any significant changes. For this reason, they made less use of tax advisory services last year. In some cases we are already observing renewed increases in activity as Corporate Tax Reform III in Switzerland and the tax initiatives driven by the OECD take further shape," says Philip Robinson, Chairman of the Board of Directors of EY Switzerland. Expansion in Advisory Services Advisory Services and Transaction Advisory Services posted a spectacular jump of 9.2 percent in fee income to CHF million. Transaction business picked up again towards the end of the fiscal year. Thanks to our international network and a thoroughly integrated service offering, we can provide our clients with optimum support, and expect clear growth in revenue in the current fiscal year. A substantial contribution to the sharp rise in revenue posted by Advisory was made by the Financial Services Organization (FSO). "Last year, we were able to continue along our growth path and further expand our market share. Based on our new strategy, we have consistently aligned our organizational unit to the future needs of banks and insurance companies. We have invested heavily in the areas of strategy advisory, IT advisory, data management and

3 3 digitalization in particular, as well as in corporate culture and organizational advisory, and have significantly expanded our partner base," says Marcel Stalder, Market Segment Leader FSO Switzerland. Strong growth in FSO Our advisory and assurance business for the financial sector now accounts for over one-third of the revenue of EY Switzerland. FSO increased fee income by 8.1 percent to CHF million. "The financial industry is undergoing a fundamental transformation process to a new reality. The current development is characterized by volatility, uncertainty, complexity and ambiguity, with strong trends towards industrialization and digitalization of business models in a multi-polar, global financial world," emphasizes Marcel Stalder. Investment in employees At present, 2,270 employees from 58 countries work at EY Switzerland. In the year under review, we made substantial investments in qualified employees and promoted the talents of our existing employees. The number of full-time employees increased by 7.1 percent to 2,095. In addition, 273 graduates made a promising start to their career at EY, and 70 employees sat examinations to qualify as auditors and tax consultants. "EY is making a valuable contribution to providing the Swiss economy with a sufficient supply of specialists. We accept our responsibility in this regard and will continue to do so in the future," explains Bruno Chiomento. The remaining employees also received intensive training in order to deliver exceptional client service. Each employee spent an average of 55 hours on training in the year under review, which corresponds to an increase of 8.5 percent. Progress in "Building a better working world" The fiscal year just closed was guided by the new EY brand and our purpose "Building a better working world". EY wants to make a difference by sustainably shaping the business world of tomorrow. Across the globe, we are pressing ahead with our ambitious plan to become the leading audit and advisory firm by We grew by 6.8 percent worldwide in the previous year (in local currencies), posted revenue of USD 27.4 billion and had nearly 190,000 employees. In the year under review, we hired just under 60,000 new people and invested half

4 4 a billion US dollars in training. EY was rated by business students as the world's most attractive professional services employer for the second time in a row. In the overall rankings of this Universum survey, EY was ranked as the second most attractive employer. EY Switzerland: fee income by area (gross)* 2013/14 in CHF millions 2012/13 in CHF millions Change in % Audit and Assurance Services Tax and Legal Services Advisory Services Total EY Switzerland: fee income by area (net)* 2013/ /13 Change in CHF millions in CHF millions in % Audit and Assurance Services Tax and Legal Services Advisory Services Total * All amounts stated have been individually rounded, which may give rise to minor discrepancies when these amounts are aggregated. EY Switzerland: employees and training 2013/ /13 Change in % Employees (full-time equivalents) 2,095 1, Training per employee 54.8 hrs 50.5 hrs +8.5

5 5 EY Assurance Tax Transactions Advisory About the global EY organization The global EY organization is a leader in assurance, tax, transaction, legal and advisory services. We leverage our experience, knowledge and services to help build trust and confidence in the financial markets and in economies all over the world. We are ideally equipped for this task with well trained employees, strong teams, excellent services and outstanding client relations. Our global mission is to drive progress and make a difference by building a better working world for our people, for our clients and for our communities. The global EY organization refers to all member firms of Ernst & Young Global Limited (EYG). Each EYG member firm is a separate legal entity and has no liability for another such entity s acts or omissions. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. For more information, please visit EY s organization is represented in Switzerland by Ernst & Young Ltd, Basel, with ten offices across Switzerland, and in Liechtenstein by Ernst & Young AG, Vaduz. In this publication, «EY» and «we» refer to Ernst & Young Ltd, Basel, a member firm of Ernst & Young Global Limited.