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Company Profile

Publication Date: 10 Dec 2010
Europe, Middle East & Africa Americas Asia Pacific
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Company Overview..............................................................................................4
Key Facts...............................................................................................................4
Business Description...........................................................................................5
Key Employees.....................................................................................................8
Key Employee Biographies................................................................................10
Major Products and Services............................................................................12
Revenue Analysis...............................................................................................14
SWOT Analysis...................................................................................................16
Top Competitors.................................................................................................21
Company View.....................................................................................................22
Locations and Subsidiaries...............................................................................26

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Company Overview


PricewaterhouseCoopers (PwC) is an audit and accountancy firm that provides assurance, tax, and
advisory services. The company primarily operates in Europe and North America. It is headquartered
in New York, United States and employs about 163,545 people.

The company recorded revenues of $26,171 million during the financial year (FY) ended June 2009,
a decrease of 7.1% over FY2008.


Head Office PricewaterhouseCoopers

300 Madison Avenue
24th Floor
New York
NY 10017
Phone 1 646 471 4000
Fax 1 646 471 4444
Web Address
Revenue / turnover 26,171.0
(USD Mn)
Financial Year End June
Employees 163,545

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Business Description


PricewaterhouseCoopers (PwC) is one of the world's largest professional services firms. PwC is an
accountancy firm that provides services in three lines of business: assurance (including financial
and regulatory reporting), tax, and advisory. PwC is one of accounting's Big Four, along with Deloitte
Touche Tohmatsu, Ernst & Young, and KPMG. The company has operations in 150 countries
spanning Europe, North America and the Caribbean, Asia, Australia and Pacific Islands, the Middle
East and Africa, and South and Central America.

The company's member firms offer services under six divisions: audit and assurance, crisis
management, tax, transactions, human resources, and performance improvement.

The audit and assurance division provides services in financial accounting issues related to matters
such as valuations, pensions and share plans, listings, IFRS conversions, and corporate treasury
and company secretarial functions. This division offers solutions related to Sarbanes Oxley and
international financial reporting standards (IFRS).

Under the crisis management division, PwC offers services related to business recovery, disputes
and investigations. The company's recovery services range from turnaround and restructuring plans
to exit strategies.

Through the tax division, PwC assists businesses, individuals and organizations with tax strategy,
planning, and compliance, whilst also delivering a range of business advisory services. The company
develops comprehensive integrated solutions by combining industry insight with the technical skills
of financial and tax specialists, economists, lawyers and other in-house experts. The company has
23,000 tax professionals in over 140 countries.

The transaction division offers services related to a range of financial transactions such as mergers
and acquisitions, corporate finance, and valuation and strategy.

The human resource services division offers services across three core disciplines: international
assignments, reward and HR management. The PwC network is one of the world's largest HR
advisory organizations with more than 6,000 professionals in over 100 countries.The HR management
includes Saratoga, one of the leaders in human capital measurement, benchmarking and strategic
application of human capital information.

The performance improvement division focuses on financial effectiveness, IT effectiveness and

governance, risk and compliance business operations of companies.

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PwC was created by the merger of two firms - Price Waterhouse and Coopers & Lybrand in 1998.

Each of the two companies traces their roots back to 150 years. In 1849, Samuel Lowell Price set
up a business in London and in 1854; William Cooper established his own practice in London, which
seven years later became Cooper Brothers.

Price, Holyland and Waterhouse entered into a joint partnership in 1865 and in 1874, name of the
company was changed to Price, Waterhouse & Co.

Robert H Montgomery, William M Lybrand, Adam A Ross and T Edward Ross formed a company
with the name of Lybrand, Ross Brothers and Montgomery in 1898.

Cooper Brothers & Co (UK), McDonald, Currie and Co (Canada) and Lybrand, Ross Bros &
Montgomery (US) merged to form Coopers & Lybrand in 1957.

Price Waterhouse World Firm was formed in 1982. In 1990, Coopers & Lybrand merged with Deloitte
Haskins & Sells in UK.

Pricewaterhouse and Coopers & Lybrand merged worldwide to create PwC in 1998.

IBM acquired the PwC consulting business in 2002. PwC formed an alliance with Symantec in 2003
to offer customers comprehensive security solutions and services.

PwC made a new Performance Risk Management (PRM) advisory service in 2004, which would
help corporations to improve the quality and adequacy of management reporting, especially in the
area of identifying risks that could impact short and long term performance.

In 2005, the company expanded its pharmaceutical and life sciences advisory services group through
the appointment of three industry veterans Daniel Bartholomew (Managing Director, PwC' West
Coast Pharmaceutical and Life Sciences Advisory Services), Sandy Johnston (Director, PwC' Global
R&D Performance Improvement) and Neil Patel (Director, PwC' Global R&D Performance

The company established a Japanese accounting firm, PwC Aarata in 2006. PwC and RSM merged
their respective tax practices in India in 2007.

In 2008, PricewaterhouseCoopers was named ‘Accounting Firm of the Year’ by Global Investor
Magazine. PricewaterhouseCoopers LLP acquired assets of New Dimension Solutions, Inc. The
acquisition included a group of client service professionals with significant industry, operational and
IT expertise, specifically in EAM implementations.

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PricewaterhouseCoopers was ranked as global leader in Business Advisory Services and

Management Consulting, by Kennedy Consulting Research & Advisory, the leading research and
advisory firm, in March 2009. In April 2009, PricewaterhouseCoopers LLP was named a leader in
the March, 2009 "The Forrester Wave: Information Security And IT Risk Consulting, Q1 2009" report
by Forrester Research. In June 2009, PricewaterhouseCoopers LLP in the US purchased majority
of BearingPoint's North American Commercial Services practice. In November 2009, the firm acquired
corporate performance management business Paragon Consulting Group.

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Key Employees


Name Job Title Board

Dennis M. Nally Chairman, PricewaterhouseCoopers International Executive Board
Ian Powell Chairman and Senior Partner of Executive Board
PricewaterhouseCoopers UK
Hans Wagener Senior Partner of PricewaterhouseCoopers Executive Board
Silas SS Yang Chairman of the regional Asia Board of Executive Board
Paul Brasher Member of Global Board Non Executive Board
Noël Albertus Member of Global Board Non Executive Board
Susan Allen Member of Global Board Non Executive Board
Mark Boyer Member of Global Board Non Executive Board
Marco A Castro Member of Global Board Non Executive Board
Peter Clemedtson Member of Global Board Non Executive Board
Mary Ann Cloyd Member of Global Board Non Executive Board
Gerry Lagerberg Member of Global Board Non Executive Board
Murray J Legg Member of Global Board Non Executive Board
Tim Lui Member of Global Board Non Executive Board
John Maxwell Member of Global Board Non Executive Board
Bruce Morgan Member of Global Board Non Executive Board
Mike Morrow Member of Global Board Non Executive Board
Didier L Mouget Member of Global Board Non Executive Board
Christoph Schreiber Member of Global Board Non Executive Board
Rich Sharko Member of Global Board Non Executive Board
Peter Tieleman Member of Global Board Non Executive Board
Matthew Wyborn Network Executive Team member Senior Management
Bob Moritz Network Executive Team member Senior Management
Ian Powell Network Executive Team member Senior Management
Hans Wagener Network Executive Team member Senior Management
Donald V Almeida Network Executive Team member Senior Management
Paul Boorman Network Executive Team member Senior Management
Pierre Coll Network Executive Team member Senior Management

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Key Employees

Name Job Title Board

Richard Collier-Keywood Network Executive Team member Senior Management
Moira Elms Network Executive Team member Senior Management
Donald A McGovern Network Executive Team member Senior Management
Edgardo Pappacena Network Executive Team member Senior Management
Juan Pujadas Network Executive Team member Senior Management
Javier Rubinstein Network Executive Team member Senior Management
Peter Wyman Network Executive Team member Senior Management

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Key Employee Biographies


Dennis M. Nally

Board: Executive Board

Job Title: Chairman, PricewaterhouseCoopers International Network
Since: 2009
Age: 57

Mr. Nally has been the Chairman, PricewaterhouseCoopers International Network of

PricewaterhouseCoopers since 2009. He joined PwC in the US in 1974 and became a partner in
1985. Prior to being elected US Firm Chairman, Mr. Nally served in a variety of leadership and client
services roles.

Ian Powell

Board: Executive Board

Job Title: Chairman and Senior Partner of PricewaterhouseCoopers UK
Since: 2008

Mr. Powell has been the Chairman and Senior Partner of PricewaterhouseCoopers UK of
PricewaterhouseCoopers since 2008. Prior to that he served as head of PwC UK’s Advisory business.
He joined PwC in 1977 and became a partner in the UK firm in 1991.

Hans Wagener

Board: Executive Board

Job Title: Senior Partner of PricewaterhouseCoopers Germany
Since: 2003

Mr. Wagener has been the Senior Partner of PricewaterhouseCoopers Germany of

PricewaterhouseCoopers since 2003. Prior to that, he served on the German firm’s Management
Team, with responsibility for Financial Services. He joined PwC in 1977 and became a partner in
the German firm in 1987.

Silas SS Yang

Board: Executive Board

Job Title: Chairman of the regional Asia Board of PricewaterhouseCoopers
Since: 2002

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Key Employee Biographies

Mr. Yang has been the Chairman of the regional Asia Board of PricewaterhouseCoopers of
PricewaterhouseCoopers since 2002. He joined PwC in 1983 and became a partner in the Hong
Kong firm in 1989.

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Major Products and Services


PricewaterhouseCoopers (PwC) is an audit and accountancy firm that provides assurance, tax, and
advisory services. The company's key products and services include the following:

Audit and assurance:

Actuarial services
Assistance on capital market transactions
Corporate reporting improvement
Financial accounting
Financial statement audit
Sustainability reporting
IFRS reporting
Independent controls and systems process assurance
Internal audit
Regulatory compliance and reporting
Sarbanes-Oxley compliance

Crisis management:

Business recovery services

Dispute analysis and investigations

Human resources:

International assignments
Human resources management
Change and programme effectiveness

Performance improvement:

Governance, risk and compliance

Financial effectiveness
IT effectiveness


International tax structuring

European Union direct tax
International assignments
Mergers and acquisitions

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Major Products and Services

Transfer pricing


Accounting valuations
Advice on fundraising
Bid services
Valuation consulting
Commercial and market due diligence
Financial and business economics
Financial due diligence
Independent expert opinions
Mergers and acquisitions advisory (buy and sell)
Modelling and business planning
Post deal services
Private equity advisory
Project finance
Public company advisory
Privatisation advice
Regulation, competition and merger economics
Structuring services
Tax valuation

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Revenue Analysis


The company recorded revenues of $26,171 million during the financial year (FY) ended June 2009,
a decrease of 7.1% over FY2008. For the financial year 2009, Western Europe, the company's
largest geographic market, accounted for 42.6% of the total revenues.

PwC generates revenues through three business divisions: assurance (50.2% of the total revenues
during the financial year 2009), tax (26.4%) and advisory (23.3%).

Revenues by Division

During FY2009, the assurance division recorded revenues of $13,143 million, a decrease of 4.8%
over FY2008.

The tax division recorded revenues of $6,918 million in FY2009, a decrease of 7.5% over FY2008.

The advisory division recorded revenues of $6,110 million in FY2009, a decrease of 11.4% over

Revenues by Geography

Western Europe, PwC' largest geographical market, accounted for 42.6% of the total revenues in
FY2009. Revenues from Western Europe reached $11,155 million in 2009, a decrease of 11.6%
over FY2008.

North America and the Caribbean accounted for 34.5% of the total revenues in FY2009. Revenues
from North America and the Caribbean reached $9,032 million in FY2009, a decrease of 3.2% over

Asia accounted for 10% of the total revenues in FY2009. Revenues from Asia reached $2,627 million
in FY2009, an increase of 1% over FY2008.

Australasia and Pacific Islands accounted for 4.5% of the total revenues in FY2009. Revenues from
Australasia and Pacific Islands reached $1,176 million in FY2009, a decrease of 13.9% over FY2008.

Central and Eastern Europe accounted for 3% of the total revenues in FY2009. Revenues from
Central and Eastern Europe reached $778 million in FY2009, a decrease of 9.6% over FY2008.

The Middle East and Africa accounted for 2.7% of the total revenues in FY2009. Revenues from the
Middle East and Africa reached $704 million in 2009, a decrease of 1.5% over FY2008.

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Revenue Analysis

South and Central America accounted for 2.7% of the total revenues in FY2009. Revenues from
South and Central America reached $699 million in 2009, an increase of 1.2% over FY2008.

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SWOT Analysis


PricewaterhouseCoopers (PwC) is an audit and accountancy firm that provides assurance, tax, and
advisory services. PwC remains the world's largest accounting firm with 2008 revenues of $26,171
million, ahead of Deloitte, Ernst & Young and KPMG. PwC leverages its leadership among the Big
Four to be a preferred transaction (M&A) advisor among other things. However, intense competition
threatens to erode the company's margins.

Strengths Weaknesses

Leadership among the Big Four accounting Adverse publicity due to lawsuits
and auditing firms Relatively high employee turnover
Global presence and broad service offerings
helps the company attract bigger clients
Strong clientele enabling the company win
repeat mandates
Diversified revenue stream lessening
business risk

Opportunities Threats

Increasing demand for compliance solutions Easing regulatory restrictions could foster
Global economic recovery could increase competition
demand for consulting services Valuation of auction rate securities – shifting
Adoption of IFRS standards could sustain the demand away from Big Four
demand for PwC's services Attacks by fraudsters


Leadership among the Big Four accounting and auditing firms

PwC, Deloitte, Ernst & Young and KPMG are known as the Big Four accounting and auditing firms.
PwC remains the world's largest accounting firm with FY2009 revenues of $26,171 million, ahead
of Deloitte, Ernst & Young and KPMG. In March 2009, Kennedy Consulting Research & Advisory,
a leading research and advisory firm, ranked PricewaterhouseCoopers (PwC) number one in Business
Advisory Services and Management Consulting in its Global Consulting Marketplace 2008-2011
report. PwC leverages its leadership among the Big Four to sustain its growth momentum.

Global presence and broad service offerings helps the company attract bigger clients

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SWOT Analysis

PwC operations span across 757 offices in 151 countries with a headcount over 163,545 (as on
June 30, 2009). Leveraging its widespread network, the company has managed to establish its brand
image, which helps it compete effectively against regional players. According to the BrandFinance
500 report (2009), the PwC brand was ranked 57, compared to 71 in the previous year. PwC was
ranked high compared to the other three in the Big Four. PwC offers a full spectrum of services
related to assurance services, crisis management, tax, human resource, performance improvement
and transactions. The company offers tax strategy, planning, and compliance, whilst also delivering
a wide range of business advisory services. A well-diversified portfolio insulates the company from
fluctuations in business operations. In addition, it enables the company to attract bigger clients.

Strong clientele enabling the company win repeat mandates

In the financial year 2009, PwC provided services for 422 of the companies in the Fortune Global
500 and 408 of the companies in the FT Global 500. PwC served significantly more than half of the
largest companies in each of its regional markets during the year. In FY2009, the member firms of
PwC audited 30% of the Fortune Global 500; 31% of the FT Global 500; and 29% of the Fortune
500 US companies. The company's clients include J.P Morgan Chase, Lloyds TSB Group, AB Volvo,
Alcan, DuPont, Electrolux, ExxonMobil, Ford Motor, GlaxoSmithKline, Volkswagen, AT&T, Honeywell
International, IBM, Lucent, Nippon, Nokia, Raytheon, Samsung, Sony, Viacom and Walt Disney
Company. Strong clientele enable PwC to win repeat mandates.

Diversified revenue stream lessening business risk

PwC's revenue stream is diversified in terms of business lines and geographies. In FY2009, the
company generated more than 50% of the total revenues from assurance, its core business line.
Revenues from tax services accounted for 26.4% and the revenues from advisory services accounted
for the remaining 23.3%. In FY2009, the company generated 42.6% of the total revenues from
Western Europe. North America and Caribbean accounted for 34.5% of revenues in FY2009 while
the remaining was spread across other regions. The company's diversified revenue stream reduces
its business risk.


Adverse publicity due to lawsuits

The company has been facing adverse publicity due to some of the lawsuits filed against it. In 2009,
the company was criticized along with the promoters of Satyam, an Indian IT firm listed on the NYSE,
in a $1.5 billion fraud. PwC's US arm ‘was the reviewer for the US filings for Satyam.’ Consequently,
lawsuits have been filed in the US with PwC as a defendant. Two PricewaterhouseCoopers partners,
Srinivas Talluri and S. Gopalakrishnan, have not been exonerated as on February 5, 2010. PwC
image in India was earlier tarnished when its clients the DSQ Software and Global Trust Bank were
indicted in accounting and other scams. Lawsuit related adverse publicity is not limited to India alone.
In 2009, the Accountancy and Actuarial Discipline Board, which regulates the profession in the UK,

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SWOT Analysis

announced an inquiry in July 2009 into PwC's auditing of Cattles, a sub-prime lender. Adverse
publicity may tarnish PwC's brand image which could lead to flight of clients.

Relatively high employee turnover

Among the Big Four, PwC seems to experience higher employee turnover rate which is in high teens.
Since the Satyam scam became public, more than 200 professionals left PwC India for other firms,
mainly due to adverse reputational impact.This is considered one of the highest and quickest attritions
in Indian professional services. These 200 employees include the 19 partners who left along with
Dinesh Kanabar, the widely-regarded head of PwC’s tax practice, who joined rival firm KPMG as
deputy CEO in December 2009. These employees, across all level of professional services, have
apparently moved onto other Big Four firms in India - KPMG, Ernst & Young and Deloitte. High
employee turnover rate not only disrupts business schedules but also increases compensation
expenses. It also contributes to increase in client turnover.


Increasing demand for compliance solutions

The demand for compliance services in Europe and the US has increased, fuelled by large market
expansions by banks and credit unions and increasing compliance requirement by financial institutions
under various regulations. The changes mandated by the European Union and Section 404 of the
US Sarbanes-Oxley Act have required companies to spend additional amounts on internal controls
and in applying new accounting and reporting standards. The market for PwC's corporate and
financial service products is estimated at $1.9 billion, which is growing at a rate 3%--5% annually.
With a strong offering in this market the company should see a significant growth in the short to
medium term.

Global economic recovery could increase demand for consulting services

According to the International Monetary Fund (IMF), the global economy registered a contraction of
0.8% in 2009, compared to a growth of 3%. In 2010, IMF expects the global economy to register a
growth of 3.9%. Economies across PwC's key markets are likely to see a spur in economic growth.
For instance, GDP growth in the US, the UK, Euro area, Japan, and Emerging and developing
economies are likely to be 2.7%, 1.3%, 1%, 1.7%, and 6% respectively.The global economic recovery
could increase the demand for the company’s services especially consulting services.

Adoption of IFRS standards could sustain demand for PwC's services

According to a November 2008 survey, an increasing number of company finance professionals

would consider adopting International Financial Reporting Standards (IFRS) sooner than the path
recently outlined by the Securities and Exchange Commission in its proposed IFRS roadmap. About
42% of more than 200 finance professionals who responded to the survey indicated they would

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SWOT Analysis

consider implementation of IFRS sooner than 2014, if that were permitted under the mandated
adoption date proposed by the SEC. This represents a significant increase from a similar IFRS study
performed earlier in 2008 that showed 30% of respondents would consider adopting IFRS, if given
a choice. Among the leading factors driving companies’ interest in considering adopting IFRS sooner
was simplified financial accounting and reporting and, separately, improved financial reporting and
transparency. Both of these factors were cited by 37% of the companies surveyed that would consider
earlier adoption. Companies in the survey that would consider adopting IFRS at an earlier date are
predominantly in the technology, media and telecommunications (TMT), manufacturing and financial
services industries. 57% of respondents from companies operating in the TMT industry would consider
adopting before 2014. For financial services, 42% of respondents would consider early adoption.
PwC's strong presence in these industries allows it to benefit from the demand for IFRS adoption.


Easing regulatory restrictions could foster competition

PricewaterhouseCoopers operates in a highly competitive industry. The company faces competition

from large players such as Deloitte, McKinsey & Company, Ernst & Young, KPMG and Boston
Consulting Group. It also competes with management consulting firms in the strategy implementation
and system integration services. Other competitors of the company include Bain & Company, BDO
International B.V., BearingPoint, Mercer International, Accenture and Capgemini. If the changes in
regulations across geographies become laws then competition could increase leading to an adverse
impact on the company’s market share.

Valuation of auction rate securities – shifting the demand away from Big Four

The largest accounting firms – PricewaterhouseCoopers, Deloitte Touche Tohmatsu, Ernst & Young
LLP and KPMG (collectively called Big 4) – audit the bulk of the world's biggest blue chip companies.
Smaller firms include Rothstein Kass, RSM McGladrey and BDO Seidman.The collapse of US credit
markets and subsequent stock market decline slashed the value of many investments held by publicly
traded companies. Some companies have accounted for their losses, while others have yet to mark
their positions at the lower market value. An average 84% of companies audited by one of the Big
4 have written down the value of their auction rate securities in June 2008 and July 2008. The
average write-down was 11.5%. In stark contrast, just 36% of companies whose accounting is audited
by a non-Big 4 firm took write-downs. The average discount was just 8% for companies that did take
write-downs. A difference of 3.5 percentage points is significant enough to affect bottom-lines of
many companies.Those companies whose managements disapprove of Big 4’s accounting practices
especially with regard to the valuation of auction rate securities have started shifting to a non-Big 4

Attacks by fraudsters

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SWOT Analysis

Recently PwC became a target of attack for fraudsters. On its website, the company carries news
related to a check fraud. Fraudsters mailed bogus checks bearing the logo of
PricewaterhouseCoopers. Accompanying the checks was a letter advising the recipients that they
had been selected to be ‘secret shoppers.’ The letters guided the potential scam victims to cash the
checks at specific banks, and then wire the funds to another address for use by a second ‘secret
shopper.’ Rose Littlejohn, head of PwC's US Security team said that their employees have been
alerted regarding this check fraud. However, there is nothing to prevent the scammers from making
another attempt. This incident highlights the lapses in security checks and lapses at PwC.

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Top Competitors


The following companies are the major competitors of PricewaterhouseCoopers

BDO International B.V.

Deloitte Touche Tohmatsu
Ernst & Young International
Grant Thornton International
KPMG International
Boston Consulting Group, The
Management Network Group, Inc., The
Deloitte Consulting

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Company View


A statement by Dennis M. Nally, Global Chairman of PwC is given below. The statement has been
taken from the company's 2009 annual review.

The past year has been tough for the world economy. Although we are now seeing the first signs of
a rebound, the recovery has yet to fully take off and there are still potential troubles ahead, such as
the threat of faltering growth and inflation. Until the recovery seems secure, the challenge of dealing
with the effects of a lingering recession will continue to dominate every aspect of business and

Governments around the world played their part in restoring confidence by taking dramatic steps to
stimulate growth. These stimulus programmes have started to show some positive results, aided by
the closer coordination that has emerged among countries around the world in their responses to
the downturn.

At the same time, national regulators have begun to implement schemes to prevent a recurrence of
the financial meltdown. It is necessary, however, to take a careful and considered approach to such
changes to the regulatory environment in order to strike the critical balance between control and
free markets. The goal must be to develop regulation that minimises future problems without
hampering entrepreneurial spirit. Businesses, by their nature, must take risks in order to succeed.
Finding the right level of risk, and understanding what that risk really entails, is the key challenge
for both entrepreneurs and investors.

There couldn’t be a more exciting time to lead a professional services network such as PwC, given
the uncertainty ahead for the global economy and the challenges and opportunities it will present
for us and our clients. I’m honoured by the confidence that the PwC network has shown in electing
me as Global Chairman. In this role, I work closely with the other members of our Network Leadership
Team (NLT): Bob Moritz, senior partner of the United States firm; Ian Powell, senior partner of the
United Kingdom firm; Hans Wagener, senior partner of the Germany firm; and Silas Yang, senior
partner of the China firm.

The responsibility of the NLT is to encourage and foster closer cooperation across our network, and
to become more nimble, responsive and effective in everything we do. To protect and enhance our
market-leading brand, we will work to embed throughout the PwC network a culture of quality and
excellent service that makes clients eager to work with us. In pursuing these aims, we all owe a debt
of gratitude to my predecessor, Samuel A. DiPiazza, Jr., for his years of visionary leadership and
for carrying on the long tradition of entrepreneurial excellence at PwC.

As for so many of our clients, FY 2009 was a challenging business period for PwC, and it is heartening
to report that many of our firms and business sectors performed well in difficult circumstances.
Globally PwC’s revenues in local currency terms were slightly up from the previous year, even as
the formerly steady growth in demand for our services slowed. Adjusted for foreign exchange

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Company View

fluctuations, however, our gross revenues fell, due primarily to the strength of the US dollar. Overall,
the PwC network had total gross revenues for FY09 of US$26.2 billion. Our performance was led
by the strength of our core Assurance business, where revenues rose by two percent to US$13.1
billion. Our Tax revenues also held up well, remaining steady at US$6.9 billion. Given the cyclical
nature of its business, Advisory revenues were down by 3% to US$6.1 billion a strong performance
in the circumstances. Advisory revenues were impacted by the sharp decline in transactions and
deal-related work, as well as cutbacks in discretionary spending by our clients.

Despite the economic downturn, PwC member firms in places as diverse as Spain, the Middle East,
Russia and Japan all performed strongly and posted impressive revenue growth. This resilient
performance provides us with a robust platform from which to serve clients in the recovery and the
continued ability to invest in our network for the future. For organisations, including our own, to
emerge successfully from the downturn, business leaders across the world will need confidence in
their vision and the courage to take action. The ability to anticipate market changes, and particularly
to manage risk effectively and responsively, will characterise the best performers as the upturn
gathers pace. Now is not the time for faint-hearted management, but for conviction and the agility
to meet change head-on. For PwC, this means maintaining an unwavering focus on our proven
long-term strategy to excel in the marketplace, by delivering the distinctive PwC Experience to our
clients and our people even amid the difficulties posed by the current economic environment. One
example of PwC’s strategic focus on the future was the acquisition of substantial parts of
BearingPoint’s business in the US and Japan to make our Advisory business more competitive. PwC
US acquired the majority of BearingPoint’s North American Commercial Services practice, assuming
selected contracts and increasing the US firm’s Advisory client service staff by 800 professionals,
providing additional consulting expertise across multiple industries. PwC US also acquired two Global
Delivery Centres in Shanghai, China and Bangalore, India that will enable us to provide our clients
with expanded global sourcing capabilities and cost advantages. Meanwhile, PwC Japan acquired
all of BearingPoint’s Japan consulting and technology business, adding some 1,500 professionals
and positioning PwC Japan as the country’s clear leader in Advisory services. In combination, these
strategic acquisitions will accelerate the growth of our Advisory business, increase our market share
in two of the world’s largest markets, and expand the ability of the PwC network to meet the needs
of complex global organisations.

As part of our strategy to prepare for recovery, PwC member firms across the world worked hard
through the downturn to sustain both our business and our employees. While ever-conscious of the
need to keep a tight rein on costs, we were determined to remain committed to our people and only
make large-scale reductions in our workforce an action of last resort. So, despite the downturn, PwC
member firms continued to recruit and retain the best talent in FY 2009.

During the year, PwC member firms hired around 30,000 new people, increasing our total workforce
to over 163,000. While local circumstances resulted in layoffs in a few countries, our member firms,
by and large, retained their high-performing people, using innovative strategies such as sabbaticals
and reduced hours where necessary. By continuing to invest in our people, we are positioning PwC
to handle a global pickup in demand for our services as the eventual recovery gains momentum.

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Company View

Talented professionals are our number one asset at PwC and attracting top talent from around the
globe is a key priority for us. To help us keep attracting top talent we strive to be known as a network
that cultivates and develops individuals by fostering a culture of coaching and development that
provides all our people with the opportunity to achieve their potential. In recent years, advancing
globalisation has intensified the importance of having a diverse and inclusive workforce, while also
accelerating the pace at which businesses must adapt to change. We recognise that we will only
enjoy success in the long term if we consistently share the tremendous skills and experiences of
our people by providing them with opportunities outside their home countries. Without doubt, those
organisations that truly recognise the critical role played by diversity and mobility in sustaining a
productive, loyal workforce gain a clear competitive advantage over those that do not. Again, in
FY09, PwC’s innovative human resource initiatives were recognised by numerous external
organisations. Among other honours, PwC was ranked as the leading organisation for Global Diversity
by DiversityInc, ranked among the 100 Best Companies to Work for by Fortune magazine, and was
among the top 10 companies on Working Mother’s best workplace list. Rather than rest on these
achievements, we continually seek to improve and to increase diversity at all levels within PwC
member firms.

The views of a wide range of stakeholders who have an interest in what we do governments,
regulators, investors, and others who think and care about capital markets and wealth creation are
important to us, and throughout the year we have engaged in dialogue with them, both locally and
globally. Similarly, PwC remains fully engaged in corporate responsibility programmes around the
globe. In partnership with the United Nations High Commissioner for Refugees, we have made
progress toward our goal of providing schooling, and in many cases a life-sustaining haven, through
our Educating the Children of Darfur project in the refugee camps of Chad.

The programme exemplifies our view of corporate responsibility, which encompasses our actions
to sustain the environment, our donations of professional services and financial contributions to our
communities, our commitment to foster our people, and our unwavering dedication to integrity,
respect and fairness in our behaviour in the marketplace. FY09 also presented us with difficult issues
aside from the tough business conditions. The widely-publicised issues at former audit client Satyam
Computer Services in India have presented a significant challenge.

With the assistance of expertise from across the PwC network, the PwC member firms in India are
doing all they can to rebuild their reputation and reward the confidence clients there have shown in
us. Among the steps taken by the Indian member firms are the appointment of an outside board of
advisors and appropriate management changes. For the accounting profession in general, the
recession has not only impacted growth, but has also triggered criticism of accounting standards.
Some commentators have claimed that financial reporting by banks and other institutions made the
credit crunch much worse than it need have been. These critics blame the credit freeze on the use
of Fair Value accounting, which requires financial institutions to carry, at market value, financial
assets such as mortgage-backed securities.

In PwC’s view, such criticism is misplaced, as it confuses the cause of the financial meltdown with
the methodology used to report it. Fair Value reporting did not cause the problem; rather, it made
transparent to investors the extent of the weakness in a system overburdened by risk. Fair Value

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Company View

remains the best means available to inform investors and provide accurate, transparent information
in highly volatile markets. We agree that the current Fair Value standards are not perfect, and we
support initiatives by the standard setters to clarify some aspects of Fair Value reporting. But Fair
Value reporting is far from being the problem; it is part of the solution to avoiding another credit crisis
in the future.

The debate over Fair Value also underlines the need for global accounting standards for the
profession. PwC has supported the adoption of International Financial Reporting Standards since
their conception. Over 100 nations now use these global standards. The US has adopted a sensible,
measured timetable for considering IFRS, leading to potential full-scale adoption. Large US companies
increasingly are using the global standards in their dealings with global customers, suppliers, and
subsidiaries overseas. We believe adoption of IFRS by the US is in the interests both of the US itself
and the global economy. In contrast, a failure by the US to adopt the global standard could leave it
isolated and reduce the competitiveness of its markets.

FY 2010 is likely to be another challenging year, both for PwC and our clients. We expect demand
for our services to remain steady, growth to be somewhat below levels of the recent past and the
current hyper-competitive environment to continue. And while most economists predict that a recovery
either has begun, or will begin soon, they also say it will be slow to gain speed.

Our focus throughout the downturn has been on helping our clients manage their way through these
difficult times and emerge stronger. Our clients continue to value our insights and services as an
advisor who can help them understand the risks and capitalise on the opportunities of the next
economic cycle. Our ability to engage in this way with clients and indeed with all our stakeholders will
set the stage for long-term relationships and shared success.

Looking across the entire professional services marketplace, we believe PwC has the best and
strongest network to help our clients succeed. We see opportunities emerging in the recovery, in
industry sectors such as healthcare, financial services and infrastructure, and we are primed to help
our clients capitalise on them. We’re positioned to anticipate our clients’ needs and respond with a
quality of service that sets us apart. To deliver this service, we’ve built a great workforce whose
capabilities and commitment to clients continue to astound me every day.

There are better times ahead. What is clear to me is that organisations that choose to invest in their
futures and manage through these difficult times with optimism, will be the ones best placed to thrive.
I look forward to leading the PwC network through the future challenges and to helping both us and
our clients to succeed.

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Locations and Subsidiaries


Head Office
300 Madison Avenue
24th Floor
New York
NY 10017
P:1 646 471 4000
F:1 646 471 4444

Other Locations and Subsidiaries

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26/F Office Tower A Beijing Fortune Plaza 1131 A
7 Dongsanhuan Zhong Road Road Number 36
Chaoyang District Jubilee Hills
Beijing 100020 Hyderabad 500 082

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91 King William Street 14 boulevard Alsace Lorraine
Level 14 80000 Amiens
Adelaide FRA
South Australia 5000

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1 Lise-Meitner-Strasse Centro Empresarial Agua Branca
10589 Berlin Avenida Francisco Matarazzo 1400
DEU Torre Torino
05001 903
Sao Paulo

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Bleichemattstrasse 43 32 Albyn Place
CH 5000 Aberdeen AB10 1YL
Aarau GBR

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Locations and Subsidiaries

Zeirishi Hojin PricewaterhouseCoopers Samil PricewaterhouseCoopers

Dainagoya Building Korea Investment & Securities
6th Floor, 28 12 Meieki Building 8th Floor
3 chome, Nakamura ku, Nagoya shi 183 Keumnamro 5ka
Aichi ken 450 0002 Dong ku
JPN Gwangju 501 025

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