www.pwc.com.cy

Cyprus Annual Review 2017

Doing the right thing for our clients, our people and our society.

September 2017 Key performance indicators

Awards & Accreditations

- Investors in People (IIP) Champion

- Investors in People (IIP) Gold

- ACCA Approved Platinum Employer Financial performance

€77,8m net revenues - Gender Equality in the Working Environment €27,7m Total contribution to government revenues including, corporation tax, special contribution for defense, PAYE, VAT, social insurance and special contribution Contents Our People

CEO’s message 02 Almost 1000 people including Our Services 396 qualified accountants and −− Message from the Head of 779 University Graduates 04 Assurance & Advisory

−− Assurance, Advisory, Deals 137 Promotions and Business Consultancy 05 services

People Engagement Index score1 −− Message from the 74% 10 Corporate Head of Tax & Legal More than 110 new recruits −− Tax Advisory, Indirect Tax Advisory, Legal Advisory, responsibility 11 66 newly qualified ACA and ACCA International Private Clients €74.000 worth of pro-bono and accountants and Tax Reporting Strategy discounted services donated to community organisations and charitable institutions Clients and markets 13 international secondments in other PwC firms around the world −− Industries 15 donated to non-profit €69.000 −− International Markets 24 organisations to support charitable causes 4 worldwide awards in the Institute of People 32 €110.000 were invested in our Chartered Accountants in England and Wales entrepreneurship initiatives (ICAEW) professional examinations Firm 40 Corporate 500 people from our organisation have 14 Pancyprian awards in the Association 47 volunteered by participating in many of our of Chartered Certified Accountants (ACCA) Responsibility activities professional examinations, 1 achieved 1st place amongst the top 3 Affiliates in Cyprus Our Brand 69 and 3 achieved 2nd place amongst the top 3 Financials 76 Affiliates in Cyprus.

1 Employee feedback obtained through our Global People Survey CEO message

FY17 has been another year full of challenges, with several key milestones. We are proud to see the results of our effort which is directed towards supporting local businesses, foreign investors and our community as well as towards transforming our business in ways that enable us to deliver the highest quality of services to our clients.

The economy is demonstrating positive growth and foreign direct investment inflow is on the rise. New investment opportunities are being created in traditional and emerging economic sectors. Confidence in the Cypriot economy has been largely restored but challenges do remain.

Addressing the issue of non-performing loans and upgrading our economy to investment grade rating are key. We also need to continue with the necessary reforms so as to Evgenios C Evgeniou significantly improve the position of Cyprus in the international doing business and competitiveness rankings and move into the digital age. CEO PwC Cyprus In this ever- changing and highly competitive international environment, we are guided by our purpose and our Annual Review, for the financial year which ended on 30 June 2017, confirms the positive impact of our organisation in building trust in society and solving important problems.

Financial performance Transforming the way we do Revenues totalled €77,8 million, business demonstrating once again our Operating in a sector faced with major organisation’s strong position in the challenges such as international market. In addition, during the year our and European developments in tax, teams achieved significant new wins that transparency and regulation issues as well demonstrate the strength of our audit, as geopolitical uncertainty in key markets advisory, tax and industry capability. Our for Cyprus, it is important to remain agile overall contribution to state revenues, in and respond to new conditions in an the form of direct and indirect taxation and effective way. The only way forward is by other contributions stood at €27,7 million. evolving our strategy, focusing on quality and streamlining of procedures, coupled Our financial performance over the past with fully embracing the digital era. years evidences that our clients recognise our objective to stay focused in delivering During the year, we have reorganised both the right services and skills to help them lines of service and continued building deal with the issues they are facing new service capabilities that are relevant and being successful in a challenging to the market. A number of technology marketplace. and business transformation projects are underway making our organisation fit

2 PwC Cyprus for sustainable growth. Our experts are Our CR programme focuses on responsible The year ahead continuously monitoring the market and business, diversity and inclusion, Looking at the year ahead, we will continue exploring new opportunities for launching community engagement, entrepreneurship to use our expertise and strong connectivity exciting new services in response to our and environmental stewardship. We are to our international network to support clients’ needs. Shaping Cyprus as a funds convinced that the road to growth passes Cypriot businesses as well as to promote centre, strengthening our services to private through entrepreneurship and that is Cyprus as an investment destination. clients and continuing to explore new ways why we have joined forces with bodies in which we can bring value to clients in the and institutions that aim to foster an Our priorities include transforming our digital transformation and cyber security entrepreneurial culture. Our aim is to business model by bringing the firm in the space will remain as priorities. support young people to develop their digital era, driving client centricity and ideas that will lead to the creation of an market focus, energising our people and innovation and knowledge-based economy. investing in new services. Primarily we Delivering client value strive to be true to our purpose and to live Evaluating and continuously improving Our people our values. the value we delivery to our clients is a We continue to place emphasis on attracting primary focus for our organisation and our talented people and providing them with The driving forces behind our eagerness people. In this respect, we have developed the support and expertise needed to help to excel are our clients and our people to a new comprehensive plan which reflects them develop and succeed in pursuit of whom I would like to express my greatest the strategic importance we place on their goals. We remain one of the few gratitude and appreciation for their trust. obtaining client feedback. Using a variety of organisations worldwide to hold the highly methodologies our aim is to elevate client prestigious Investors in People CHAMPION feedback management to a next level. and Investors in People GOLD accreditation We are proud when hearing our clients say in Human Capital management. The that they have witnessed our values come to worldwide and Pancyprian exam successes life in many projects. We remain committed of our trainee accountants continue to in listening to what they have to say and make us proud. During FY17 our trainees using this information in a way that will achieved 4 worldwide awards in the help us offer the value they are looking for. Institute of Chartered Accountants in Evgenios C Evgeniou The effort to be market focused and client England and Wales (ICAEW) professional CEO centric is never ending. We focus on priority examinations and 11 Pancyprian awards industries and markets to bring a broad in the Association of Chartered Certified September 2017 range of experts to solve client problems. Accountants (ACCA) professional examinations. We will continue to invest Giving back to our community in the development of our people, to give Our Corporate Responsibility programme them flexibility and an exciting work uses our skills, time, resources and environment. relationships to work with others in order to make a difference and create a lasting impact.

Annual Review 2017 3 Our services

Message from the Head of Assurance & Advisory

FY17 has proved to be more The Bank of Cyprus decision challenging than we initially after a competitive process, to thought and despite winning appoint us Group Auditors as a number of new assignments of 1 January 2019 and more it was not possible to achieve importantly the excellent Liakos M Theodorou our targets, ending up with feedback received for the Head of Assurance & Advisory lower Assurance & Advisory quality of our proposal and for Gross Revenues as compare to our pitch presentation right our budgets. We are however at the end of FY17, gives us the determined to reverse in FY18. energy and confidence to look into the future with optimism.

4 PwC Cyprus Assurance services

We continue to focus on quality, non-audit services and the imposition of fee Audit quality has been and shall continue to independence and objectivity in our work, caps will dictate a new commercial reality remain at the centre of all initiatives. The leveraging on our technical and industry on audit firms that will need to redesign multiple challenges that our profession is expertise which are key to delivering value their broader business strategy and channel facing represent a unique opportunity to use to our clients and confidence to other choice targeting models. The aforesaid them as a platform for building trust and stakeholders. developments are only an indicative subset confidence back into the system. of the new wave of changes impacting Going forward we will restructure our the audit profession. We look forward to audit teams in order to focus on meeting embracing these changes with the aim to expectations of clients who have different restore public confidence and build trust in value perceptions regarding their audits. the communities we operate. Clients will be serviced by dedicated teams taking into consideration their specific Additionally due to the rapid movement needs, knowledge of their business, industry of technology and the changes our clients and technical complexity. are making in their own businesses and operations, it becomes increasingly The audit landscape is undergoing a necessary to change the way we, as significant reshaping through the recently auditors, deliver our services. Our focus adopted EU audit reform legislation, which, will inevitably be directed to investing in amongst others, imposes a requirement technology (automation, simplification for mandatory audit firm rotation that and streamlining), improving processes/ will lead to considerable reshuffling in approach and strengthening the experience the marketplace, as traditional client of our people. relationships will be affected. In turn, the tighter restrictions on the provision of

Smart people Smart approach Smart Technology PwC Assurance

Annual Review 2017 5 Our services

Advisory Services

In Advisory, over the past years both Our integrated Advisory Consulting and Deals have been extremely successful in growing our practice working together business, turning challenges into with our PwC network market opportunities and building new colleagues aims to identify, capabilities. Consulting and Deals have evolved over time and have developed pursue and execute business specialised expertise in industries and opportunities through the products for which there is strong market offering of multi-skilled demand. The in depth expertise and ability to provide innovative solutions to solutions to business clients has allowed the firm to secure its problems. In doing so, we leadership position in the market. deliver value and bring Our ambition is for our Advisory practice the benefit of all of our to continue to grow and to strengthen its services and expertise to leadership position. To realise this, we our local and international decided for Consulting and Deals to join their skills, talent and market access and clients, public and private to proceed as a single Advisory business companies, bringing unit. We believe that this development together a diverse team of will give our Advisory a significant competitive advantage and will make experts that work together the solutions offered a compelling to meet their increasingly proposition for winning new business complex needs. and for accelerating our growth in new business consulting areas. The unified Advisory team will allow us to develop more comprehensive solutions to the different issues that our clients are facing and to pro-actively go to market in a differentiated manner that will further reinforce our leadership role.

6 PwC Cyprus Deals

Our Deals team provides advisory services and we are ready in cooperation with our on: Network specialists to add value to our clients in a fast-changing sector. •• Mergers and acquisitions •• Valuations We facilitate transactions taking place •• Feasibility studies in Cyprus by offering valuation services •• Business restructuring and to our clients, supporting them with turnaround the negotiations and assisting them in •• Crisis Management the structuring of deals. During FY17, •• Due Diligence we have been involved in several deals, some of them in the real estate sector •• Capital markets advisory services where clients combined an investment •• Other financial advisory services in Cyprus as a condition for the naturalisation and citizenship scheme. Our team offers complete and effective solutions to companies of the private In regards to transaction support, and public sector. The specialised advice during FY17, we have been involved in and continuous support we offer to our clients has the ultimate aim of enhancing a number of due diligence assignments shareholder value. related to companies in different sectors of the economy including Banking, During FY17, we have been providing Financial Services, Hospitality and Leisure, continuous support to all large banking Pharmaceuticals and other sectors. institutions of the island on a wide variety of issues, including among others M&A support, capital enhancement support and assistance with the implementation of IFRS 9. We are constantly monitoring developments in the banking industry

Annual Review 2017 7 Our services

sustainability and growth. Our team also Business has substantial experience working with international clients who use Cyprus as a Consulting business base. We support such clients in the areas of regulatory compliance but also Our Consulting team provides Advisory to set up and operate successfully through services broadly in the following areas: local presence, which is an increasing trend for big groups. •• Risk Management and Regulatory Compliance We offer solutions and work with our •• Manage their capital and liquidity •• Technology Consulting including clients to help them protect and strengthen resources efficiently and effectively digital transformation every aspect of their business from strategy whilst adhering to regulatory •• Strategy and Operational Effectiveness through to execution in all areas including requirements •• People Effectiveness business plans, people, performance, •• Develop risk modelling and stress •• Immigration and Mobility systems etc. We can add significant value to testing capabilities in line with industry •• Family Governance and Succession clients who want to: best practices planning •• Achieve compliance with FATCA, the •• Sustainability and Climate Change •• Embark upon a digital transformation Common Reporting Standard, as well •• European Programme Management journey which also covers the ability to as local Immigration and Employment obtain greater insights from leveraging Legislation Our Consulting team comprises a large data and analytics as well as the •• Increase the Board’s effectiveness and number of experienced professionals from ability to protect the business from the strengthen the Corporate Governance diverse backgrounds with solid technical increased Cyber risks. of the organisation expertise, offering tailor-made, value- •• Manage their processes efficiently, •• Set up the right teams and maximize adding solutions to local and international while mitigating inherent business talent and performance, mobilizing clients across a wide range of industries. risks and strengthening internal international transfers as required controls •• Establish family governance and Our long standing presence in the Cypriot •• Obtain the required licenses to offer successful succession planning by market is based on the trust and satisfaction regulated services in Cyprus (e.g. implementing the Family Business of our clients. Within FY17, we worked banking, investment, fund, insurance, Advisory methodologies and tools extensively with the public sector, banks, fiduciary services) •• Manage people issues and challenges investment firms, local family businesses, •• Proactively address the requirements through setting up the right human shipping companies and other private sector of both local regulators (Central Bank resource systems and processes clients, helping them steer through these of Cyprus, Cyprus Securities and •• Successfully implement workplace volatile times and transform their current Exchange Commission, Superintendent transformations and change through a organisational model into one that enables of Insurance) and European regulators tailored solution that leverages on their (e.g. European Central Bank) strengths and achieves sustainable change

8 PwC Cyprus Our Financial Services Risk and Regulation The issues of sustainability are gradually team worked closely with many banks and becoming part of Managements’ day to investment firms during FY17, helping day decision making processes. We have them to successfully navigate through maintained our position as the leading the new regulatory landscape and better sustainability services team winning high understand and manage their current and profile assignments in the areas of energy emerging risks. Some of the challenges management, corporate responsibility with which we assisted our clients arose strategy development and reporting. from regulatory reforms, more stringent •• Appreciate the importance of capital requirements, new risk and data The past few difficult years have helped understanding and shaping management considerations, new liquidity us adapt to new market opportunities by workplace culture to enable corporate standards, the need for enhanced risk offering flexible, tailored, cost-efficient performance and strategic shifts modelling and stress testing capabilities, as solutions. Our local teams, partnered with •• Establish, enhance and strengthen well as increased reporting requirements. the support of our Global network, continue the Internal Audit department’s to work alongside our clients and deliver capabilities Following the substantial changes to the transformational solutions based on their •• Have in place a framework which International Tax Landscape and the specific circumstances, ultimately offering effectively addresses fraud prevention need for the creation of substance, our them the value they have come to expect and detection Immigration and Mobility Services team is from PwC. •• Have insights on the integrity and assisting international companies to background of new business partners create substance as well as to relocate their and prospective employees personnel. Our services include corporate •• Gain competitive advantage by relocation assistance (e.g. find office space leveraging Information Technology for and generally setting up in Cyprus), issue the benefit of their organisation of work permits and personal pathfinder •• Effectively manage their sustainability services to High Net Wealth Individuals and challenges including energy employees (e.g. find housing, schooling, management, environmental relocation induction and coaching, obtain compliance and corporate a driving licence etc.). We support wealthy responsibility individuals obtain the Cyprus Citizenship by Investment, or Permanent Residence, being one of the leaders on the island with 100% success rate. We have retained and strengthened our position in providing recruitment services to a number of financial services organisations, by handling middle to top management specialised positions, supporting also clients in other industries and international groups.

Annual Review 2017 9 Our services

Message from the Head of Tax & Legal

Tax and Legal services (TLS) comprise We reviewed the market trends and the full spectrum of one stop service developments, listened to our clients for local and international clients and understood their needs better and providing expert advice to resolve adjusted our strategy accordingly, and issues and add value in support using our client centric approach we have of transactions from strategy to restructured significantly our TLS service execution. offering.

Theo C Parperis The underlying principles of our Our services are tailored made for both restructuring were (i) market focus and (ii) Head of Tax & Legal corporate and private clients. Our TLS distinguish clearly the advisory services services to corporate clients include tax from the compliance services. planning, advice on setting up substance, corporate governance and operations As from FY18 our TLS will comprise the in Cyprus, structuring of finance and following competencies: other business transactions using Cyprus companies, support in execution of •• Tax Advisory transactions and full statutory, tax and legal •• Indirect tax advisory compliance. •• Legal •• International Private Clients (IPC) Our TLS services to private clients focus on •• Tax Reporting & Strategy (TRS) asset protection, family governance matters, global statutory and tax compliance, As a result all tax, VAT, legal and statutory tax advice on structuring, support of reporting & compliance work is performed transactions and tax residence and domicile by TRS. The other competencies focus issues. entirely on providing expert advice and support to clients in their day to day issues. The above strategic transformation of our TLS service offering allows us to invest in our people, technology and new services according to the client present needs.

10 PwC Cyprus During the FY17, we have launched two In addition to having the capacity to advise important new services within TLS which Tax Advisory on all areas of taxation including Corporate demonstrate great potential Tax Advisory, International Tax Structuring, Private Clients, Tax Investigations and •• Funds set up and administration The initiatives by the OECD on Base Erosion Tax Accounting, we have created teams of services and Profits Shifting and the signing of specialists for Transfer Pricing, Country •• Multi Family Office services the Multilateral Instrument and the EU by Country Reporting, Exchange of developments in the form of the Anti Tax Information and State Aid. Our people The new services compliment the reformed Avoidance Directives, DAC3 and recent ECJ actively participate in our PwC international TLS services and are part of IPC services. decisions on State Aid, have brought about network teams to ensure they are up to date the most significant changes in the field of with all issues relating to their expertise. We Given the various complexities and direct taxation in decades. have people on international secondments widespread expertise required in TLS, close to acquire further expertise on their subject collaboration within TLS is of paramount Taxation, now more than ever before, matters and we also have people who have importance. For this reason, we have carries reputational risks for companies attended specifically tailored 5-week State invested in this area and during the year and it has therefore been elevated to a Aid courses at a European University and we have collected ideas from our staff, Board of Directors matter with C-suite passed the relevant exams. bottom up, on how to improve further our executives paying particular attention to it. collaboration. The best ideas have been It is well accepted that tax strategy needs to We have remained very active in selected and adopted. This proves that be aligned with the business strategy and spearheading business development collectively we can continue to improve our operational model of each organisation. activities in Cyprus and abroad, in providing services and strive for success. At the same time the Cyprus tax support to the Ministries of Finance authorities are following the international and Commerce and the Department of Another area which we have invested developments, are fully aligned with Taxation and once again played a leading significantly during FY17 was technology. transparency and exchange of information role in proactively taking proposals to the More than 40 processes in TLS have been and are themselves becoming more Ministries for new tax laws in order to automated achieving better efficiencies and sophisticated whilst introducing new rules preserve and improve the competitiveness consistency on quality of deliverables. and practices, like the recently introduced of the Cyprus economy. Transfer Pricing rules on intergroup The business and regulatory environment is financing transactions. We have stayed close to and kept our expected to remain challenging in the new clients informed through our newsletters financial year (FY18), however, the new As PwC Tax Advisory, we are keeping and seminars but also through more TLS structure, our new services, our leading abreast of all the developments and we technologically advanced methods by using position in the profession, our client centric have been adapting and investing in new webcasts and social media tools. approach and above all the quality of our specialisations to be able to assist our clients people gives us confidence that, we are well in this ever changing and complex new equipped to take advantage of opportunities environment. which will arise.

Annual Review 2017 11 Our services

Indirect Tax Legal Advisory

The introduction of VAT by a number of new The legal firm, full member of the PwC countries, the increased focus of the ECJ international network, offers Legal services case law on substance over form, the closer that cover the whole spectrum of corporate collaboration and exchange of information and business law, including advising and between the tax authorities of the various representing clients in M&A transactions, countries and the increased complexity re-organisations, European Union law and of transactions between companies, all Competition law, due diligence, setting up contribute to what’s creating an ever of private companies, joint ventures, trusts, changing and complex new environment. funds and other forms of businesses.

PwC Indirect Tax Advisory is always Although not grown in revenues, the on top of the legislative and case law Legal Firm has had a successful year, developments. We continuously invest and managed to achieve significant new in new specialisations and expertise wins in terms of both nature and fees e.g. and are able to assist our clients in their structuring work from the US and increased international and local transactions. private client work.

We advice on all areas of indirect tax including VAT, private assets and Customs and Excise tax issues.

Furthermore we actively seek and pursue opportunities for international secondments of our people so as to acquire further expertise on their subject matter. Currently we are working jointly with PwC Middle East in helping clients prepare for the implementation of VAT in the Middle East region.

We are close to our clients keeping them informed of the various developments through seminars, newsletters, webcasts and social media tools.

12 PwC Cyprus In addition, presentations were made in International key markets including USA, UK, Russia, Private Clients Ukraine, China and India, enabling us to demonstrate our capabilities and identify International Private Clients (IPC) was set opportunities. Significant new wins resulted up to provide international private and from these efforts. corporate clients with sustainable and compliant solutions and to act as their At the same time, IPC has restructured its trusted advisors. activities so as to become more flexible, adapt to the changing requirements of Our clients are private business groups clients and stay relevant in the ever evolving and entrepreneurs, who require solutions business landscape. for complex multi-jurisdictional issues and support in their implementation. The healthy inflow of work should continue IPC provides comprehensive support for the in FY18 and this will allow IPC to continue private and corporate administration and offering value added services to our governance matters of our clients utilising impressive list of international clients. the endless expertise of our firm. During FY18 the focus will be on Corporate and Wealth Management services as well Clients are serviced by dedicated integrated as working with our clients on issues like teams which operate seamlessly with our non-domiciles, financing (transfer pricing experts in tax , legal and other competencies issues and Notional Interest Deduction in order to provide value added solutions. rules), the MultiFamily office service, the IPC also covers specialised services such application of the new residency rules as Multi Family and Wealth Management recently introduced in Cyprus as well as services as well set up and administration of increasing demand for support in setting up Funds and Trusts. funds in Cyprus.

IPC also stayed at the forefront of our business development activities. This included daily communications, updates, as well as regular visits to our clients, our PwC network and other contacts.

Annual Review 2017 13 Our services

Tax Reporting & Strategy (TRS)

The business environment both in Cyprus and internationally, has continued to The Accounting team, remains abreast evolve and has become more complicated, of accounting and reporting standards, requiring specialist, prompt and direct provides reports on time and can provide service. Laws and Regulations have become analyses and other in depth reporting, increasingly demanding and complex according to business needs. The Corporate and companies realize the importance of Services with a number of lawyers in complying with these, on a timely basis, its team, are able to assist in company effectively, efficiently and with specialist formations, statutory changes, secretarial knowledge of requirements but at the same and other related secretarial services. time capitalizing on opportunities. TRS provides seamless service to local TRS has been formed with the view to and international companies as well as package all corporate compliance services professionals, foundations and other together and to handle as a one-stop- entities. It remains abreast of developments shop, the statutory corporate compliance both in Cyprus and internationally, in order obligations. It has been organized into to be updated on compliance requirements specialized units for Tax Compliance, and proactively ensure that relevant Accounting, Payroll and Secretarial support. information is readily available by adapting This provides specialist services to clients in the reporting systems. an efficient manner thought the provision of these services by utilizing technology tools, TRS places significant importance on processes and methods that add value. technology and it continuously monitors existing processes and tools while seeking Tax Compliance includes both corporate new, advanced and cutting edge technology and personal tax requirements, running tools that will enhance the value adding diagnostics, negotiating with tax authorities expertise offered. for open years and provides tax accounting advice. Payroll and Provident Fund experts can assist with all employment matters, assess the effectiveness of the processes used by companies and provide a prompt, accurate and seamless service.

14 PwC Cyprus Clients & Markets

Industries

A client centric mindset for success

As the economy continues on its positive momentum to growth and companies are shifting their focus, our industry specialists are responding helping clients manage their new challenges. We believe in unrelenting proactive focus on clients through industries, by mobilising the Firm’s best industry subject matter experts to deliver the value our clients are looking for. Our industry expertise allows us to develop industry-specific solutions based on best practices, share Stelios C Constantinou our thinking on emerging industry trends, as well as tailor solutions unique to In charge of Industries each industry.

Banking industry closely with all major banks on the island in various advisory and assurance projects. The ever increasing regulation and a In doing so we demonstrated our ability lack of trust in the industry means that to deploy our extensive team of specialist banks remain under enormous scrutiny industry resources, supported by the and pressure with banking leaders being expertise of our international network. By challenged on the validity of their operating delivering value to our clients we were able models and the ability of their organisations to further increase our market share and to generate sustainable returns for their revenues from this sector. investors. The banks in Cyprus are facing a disproportionate impact from the regulatory demands that continue to consume capital and resources whilst they have to deal with the tough requirements of the Single Supervisory Mechanism of the ECB and the high level of Non-performing loans. In response to these challenges, the banking sector has continued its transformation and restructuring during the past year and in doing so has created many opportunities for PwC. In FY17, we continued working very

Annual Review 2017 15 Industries

Funds In FY17 we have seen growing interest in the registration of Cyprus Investment Funds The recent modernisation of the legislative with almost 60% of the overall application and regulatory framework is helping Cyprus submissions to the regulator being emerge as a jurisdiction of choice for Fund performed from PwC. We have successfully Managers and Alternative Investment on-boarded to Cyprus, big name groups for Funds. At PwC, we strongly believe that structuring their funds and attracted fund Cyprus can become a world class Funds managers from the UK and Germany for centre, and for this reason we have been continuance of their operations throughout making huge efforts to enhance our Cyprus. expertise in the Alternative Investment Fund Industry. These efforts include the creation of expert teams in our practice, the training of our people with the new legislative requirements and the continuous participation of our professionals in relevant forums both locally and abroad. PwC’s Funds practice provides unique industry insights to traditional asset managers, hedge funds, real estate firms and private equity houses.

16 PwC Cyprus Retail, consumer & Energy manufacturing The energy sector is rapidly growing Retail and consumer goods enterprises in Cyprus the past few years since the are currently challenged by important discovery of hydrocarbons in Cyprus’ new issues, the developing trends in Exclusive Economic Zone. Additional multi-channel management, handling explorations licenses were granted in 2017 social responsibility across the supply to leading international energy giants chain, implementing global sourcing along with multilateral cooperation with strategies, facing wellness issues and the neighbouring countries. current economic crisis. At PwC we aim at equipping our industry teams with leading Explorations began in 2017 in certain edge expertise and insights to manage blocks and more are expected in 2018. change, navigate complexity and unlock Further Cyprus is harmonised with the EU value for our clients. We provide clients goal of promoting the use of energy from with leading edge advice on issues from renewable resources in order to reduce governance through to technology, helping global warming. Currently Solar energy, businesses manage change, stay customer Wind energy and Biomass are being used. focused and operate at a lower cost with These projects require long lead times and greater agility. energy demand will increase. We continue to study industry developments and develop our industry expertise so that we can better understand the challenges that our clients face.

Annual Review 2017 17 Hospitality and Leisure Transportation and Looking ahead with logistics confidence Hospitality and leisure industry sectors are highly sensitive to economic, political The continued opportunities and challenges and competitive market conditions whilst faced by the shipping industry create the We aim to continue to being capital, management, marketing and need for appropriate and timely strategic leverage our excellent technology intensive. In 2017 the Cyprus actions. World trade is characterized by incoming tourism industry hit again record challenges as a result of new tonnage being relationships across all high numbers. Our hospitality and leisure delivered or scheduled to be delivered in the industry experts support businesses meet near future but also by opportunities arising industries and to build the challenges of today’s market conditions from increased demand for transshipment on the expertise that through value adding services over strategy from emerging markets. In Cyprus the to meet consumer trends, mergers and sector is also going through significant enables us to deliver acquisitions, restructuring, technology and change following the recent privatisation the solutions that add sustainability. of the Limassol ports and the increased market consolidation in the logistics sector value to our clients in which is expanding beyond the traditional delivery services to managing processes the ever evolving and along the entire supply chain. Our industry changing business experts have an in-depth understanding of key industry issues necessary to deliver the environment. We are services our transport and logistics clients need. We are also an integral part of PwC’s ready to provide insights, global transportation and logistics practice, advice and support to giving our clients access to an international network of knowledge and experience. help our clients respond to the challenges ahead enabling them to remain relevant and competitive.

18 PwC Cyprus Industries Events

Hospitality & Leisure

CSTI - "Sustainability Is PwC Cyprus presented the Presenting the findings, our Partner, In Culture" findings “Capturing the Social charge of Hospitality & Leisure Group, Mr Petros Petrakis, said: “The benefits Media use in the Cyprus Hotel that social media can bring to hotel We sponsored the 10th Annual General businesses are multiple because they Meeting and the event ‘Sustainability Industry” survey constitute simple, low cost and extremely Is Culture’ organised by the Cyprus Hotels in Cyprus recognise the importance effective marketing and promotion tools. Sustainable Tourism Initiative, which took of social media and hold a significant In the framework of PwC’s programme place on 28 September 2016, at the CVAR/ presence in them. But there are to support Cypriot businesses, we believe Severis Foundation. Keynote speakers of the considerable margins for improvement, the survey touches upon a new dimension event included Mrs Arantxa Garcia, Head of which if taken advantage of can provide that affects the future of the hotels and Sustainable Development, TUI Destination substantive value for both hotels and their which unquestionably they should take Services. visitors. This is the conclusion of the survey into serious account when developing their “Capturing the Social Media use in the business strategy.” Our Partner in charge of our Hospitality and Cyprus Hotel Industry”, the findings of Leisure group, Petros Petrakis, addressed which were presented by PwC Cyprus at an the event. event on 12 October 2016, in Limassol.

The aim of the survey, which was carried out in cooperation with the University of Nicosia, was to map out the use of social media in Cyprus’ hotel industry, appraising the hotels’ overall utilisation of these tools (high, medium, low). According to the general findings, hotels in coastal districts use social media more than hotels in the mountains or town centres. Overall, hotels that have absolutely no presence on social media or in contrast are present in all social media, each total 9% respectively.

Annual Review 2017 19 Industries Events

Hospitality & Leisure Banking

39th Annual Hotel Conference 4th Cyprus Banking Forum Our Partner, Stelios Constantinou, In charge of Financial Services & Banking team, was PwC Cyprus was the official sponsor The 4th Cyprus Banking Forum, which the Chairman of the Conference. of the 39th Annual Hotel Conference was held on 1st December 2016 at the From PwC UK, Brian Polk, Director, organised by the Cyprus Hotel Hilton Park Hotel in Nicosia, examined the EMEA, FS Regulation Leader delivered Association (CHA) on 14 February 2017 new position that many banks in Europe a presentation on the Single Resolution at the Hilton Park Hotel in Nicosia. The will now be forced to adopt as a result of Mechanism (SRM). official ceremony was addressed by the increasing non-performing loans, current Minister of Energy, Commerce, Industry and new regulations, new banking models, and Tourism, Mr George Lakkotrypis, and more. our CEO, Evgenios Evgeniou and the President of CHA, Mr Haris Loizides. Following the financial crisis, banks have been under sustained attack from regulators Distinguished speakers of the conference and investors. There is a growing concern included the Purchasing Director of that European banks have become too the TUI Group, Mr Ph. Iveson, the big, too complex and too dangerous. For Assistant Professor of the Technological all these reasons, they may also have Educational Institute of Crete, Mr Al. become too inefficient. The main topics Apostolakis as well as the Senior Manager addressed were the future of the European of the M&C department of Hermes banking model, the return on equity and its Airport, Ms M. Kouroupi. progression, and the survival of European banks overall. The overall theme of the conference was: “Cyprus tourism in the new era - path of steady and sustainable growth?”. The morning speakers also participated in a panel discussion which was coordinated by our Partner, In charge of Hospitality and Leisure Services, Petros Petrakis.

20 PwC Cyprus Insurance

The impact of new European should be selected and appointed, how their legislation on the insurance independence should be supervised and the audit reports that they will compile. As sector the speakers stressed, the new institutional framework has brought the biggest change Developments in the European institutional to the regulatory framework regarding the framework and how these impact on the solvency of the European insurance sector’, insurance sector were the focus of an event as it requires companies to submit more held by PwC Cyprus and the Insurance information and subjects them to stricter Association of Cyprus (IAC), on 16 controls. The new law’s provisions create December 2016 in Nicosia. challenges, which however could make the sector easier to comprehend and evaluate, During the event, attendees were updated which could in turn help it overcome on the new legislation governing the the conditions of uncertainty and lack of duties of the Board of Directors and the comparability that characterise it. Audit Committee of each organisation as well as on the disclosure requirements as defined in the “Solvency II” institutional framework. Presentations were made by PwC experts, analysing in detail the role and responsibilities that each organisation’s Board of Directors and Audit Committee should have, as well as the various aspects of the new law.

Reference was made to the composition of Audit Committees and how these should be governed, the way in which auditors

Annual Review 2017 21 Industries Events

Funds

Invest in Cyprus Forum Annual symposium of The Cyprus Money Show International Journal of PwC Cyprus sponsored the “Invest in PwC Cyprus supported the Cyprus Money Cyprus Forum” organised by Capital Link, Accounting Show Conference-Expo which took place on which took place on 22 March 2017 at the 25-27 November 2016 at the Cyprus Hilton The 2017 annual symposium of The Metropolitan Club in New York City. PwC Hotel. The “Cyprus Money Show” aims International Journal of Accounting was Cyprus was represented by our Partner at exhibiting the financial products and held at the St Raphael Resort & Marina in Andreas Yiasemides, Head of Fund Services services available in the Cyprus market. Limassol, Cyprus on 8-10 June 2017. PwC who delivered his presentation with the Cyprus sponsored the symposium whilst title: “Developing the Fund Industry The conference participants included our partner Andreas Yiasemides, Head of Through Cyprus”. high-ranking executives of enterprises and Fund Services, participated at the panel organizations as well as representatives discussion with subject, “The Practice of The Forum aimed to raise awareness of of the financial and business market Risk Management & Banking Supervision”. Cyprus as an investment and business from Cyprus. PwC Cyprus participated destination among the US investment, at the Central Investment Convention The conference was co-organised by the financial and business communities. It of the Cyprus Money Show 2016 with Zimmerman Center of the University of showcased the increasing importance of a presentation by our Partner, Head of Illinois, the University of Cyprus, Cyprus Cyprus as a regional maritime, logistics, Fund Services, Andreas Yiasemides who University of Technology, and Elsevier. The energy and operational hub and highlighted presented AIF Funds and the synergies that symposium’s objectives was to exchange investment and business opportunities in can derive from the cooperation of GMM new research ideas, stimulate accounting these areas as well as in financial services, - Global Money Managers Ltd (as Fund study, and advance scholarly and IT and tourism. Manager) and PwC (as Fund Admin) in the professional understanding of accounting Fund Industry. theory and practice from an international perspective.

22 PwC Cyprus Energy Transportation & Logistics

8th Mediterranean Oil & Gas 1st Annual Marine Money Forum Cyprus Forum

PwC Cyprus sponsored the 8th PwC Cyprus was the Prime sponsor of the Mediterranean Oil & Gas Forum 2017 that ‘1st Annual Marine Money Cyprus Forum’ was organised on 1&2 March 2017 at Hilton organised by Marine Money International, Hotel in Nicosia by Energy Stream CMG. which was held on Wednesday, 26 April This year the forum focused on commercial 2017 at the Four Seasons Hotel, Limassol. agreements of American and European oil majors and independents in the Cypriot, The Forum focused on the benefits of Israeli, Egyptian, Lebanese and Greek gas the Cyprus tonnage tax system and the markets. challenging shipping fundamentals.From PwC Cyprus, Cleo Papadopoulou, Partner The conference was attended by Top oil In charge of Transportation & Logistics & gas leaders from TOTAL, Exxon Mobil, talked about the benefits of the Cyprus Gas Natural Fenosa, ENGIE, Cyprus tonnage tax system: a catalyst for growth Hydrocarbons Company (CHC), PwC, Bank for Cyprus as a maritime hub. In addition, of Cyprus,Ganope, DEFA, CERA. our Director, Marios Charalambides participated in a panel discussion titled The opening keynote address was delivered ‘‘Ship finance in Cyprus – potential, scale by H.E. Mr Nicos Anastasiades, President of and geography’’. the Republic of Cyprus. The conference also included a speech by our CEO, Evgenios C Evgeniou who stated that “Despite the progress achieved more needs to be done for the development of the oil & gas potential of Cyprus.”

Annual Review 2017 23 Clients & Markets

International Markets

Revenues from international clients During the year, we have reallocated client continue to drive the results of the firm portfolios amongst partners in order to despite the increasing challenges in the create better market focus and multi- international markets. Key markets for disciplined teams have been assigned to Cyprus such as Russia, Ukraine and India specific markets in order to monitor and continued to have an adverse outlook pursue opportunities. We are confident that during the financial year 2017. The US/EU these actions will have a positive impact on sanctions on Russia, the political instability the results of the new financial year. Marios S Andreou in Ukraine and the lack of a Double Tax Treaty with India, presented significant While revenues from our corporate clients Head of International challenges for our clients and our services in remained stable, revenues from private Markets these regions. clients have experienced growth driven by the increased interest for our new Wealth Nevertheless, we remained close to our Management and Multi Family Office clients assisting them to face their day to services, launched during the year. Setting day challenges, providing them with expert up of international Funds in Cyprus was solutions and support in their execution. also another area which attracted serious These markets proved their resilience and interest from international clients. their adaptability to the adverse economic conditions and hence we continued to invest The stable recovery of the Cyprus in them. economy and healthy growth of over 3% has continued to attract international On the positive side, we have seen growth businesses and foreign investors to in new emerging markets for Cyprus such Cyprus. There have been some significant as the USA, UK, and the Middle East as well investments in the Hotel and Entertainment as some positive signs from China / Asia sectors as well as in real estate projects. region. This was the result of our concerted At the same time, more international effort to expand into new markets as part of companies have strengthened their base in our objective to diversify. Cyprus in line with the stricter international taxation rules regarding substance.

24 PwC Cyprus In the new financial year, we expect that the In close cooperation with PwC Russia, we challenges in our key markets will continue remained at the forefront of the efforts to to prevail and the opportunities in the inform the market through organising and emerging markets will continue to grow. participating in high profile client events in Funds and our services to Private Clients Russia and Cyprus. Together with PwC will also continue to grow significantly Russia, we have organised a high profile and and on the corporate side we expect more successful event in Moscow attracting more international companies to strengthen their than 100 professionals and updated them presence in Cyprus. Nicos P Chimarides on the current tax and legal issues of Russia Responsible Partner for the and Cyprus and how these affect Russian The international economic climate will Russian Market businesses with presence in Cyprus. remain very challenging given the sluggish During the year, we have also reached out global growth, economic sanctions, political to our clients and explored tailor-made instability and regulatory pressures. At PwC solutions towards complying with the new Cyprus, we have noted and responded to Russia rules and requirements in a transparent and this reality and we believe that our market efficient manner. focus, strong client base, new services as The Russian market continued to experience well as the positive outlook of the Cyprus challenging economic conditions and a In the face of these challenging market economy, will continue to provide us with weakened currency, as oil prices remained conditions, our revenues from the Russian new opportunities for growth. low and EU/US sanctions remained in full market have remained at high levels during force throughout the year. In addition, the financial year 2017, exhibiting the resilience application of Russian de-offshorisation of this market and testifying yet again how provisions was in full force. This coincided close and connected we remain to our client with major reforms of the Cypriot tax and base in Russia and how committed we are in regulatory framework. supporting and advising them.

In response to this demanding economic The year ahead is bound to bring more and regulatory environment, we focused challenges and exciting new prospects on providing support to our clients in from Russia and we stand ready to offer understanding whether and how these the best possible services to our clients changes affect them, assisting them in who recognise the strength of our network understanding their options and offering as the leading advisers on the Russian the best solutions for their business. market. Special interest is expected to arise on Wealth Management and Family Office services, as well as the restructuring of financing operations and assessing the new residency rules recently introduced in Cyprus.

Annual Review 2017 25 International Markets Events

Challenges and opportunities On 16 March 2017, PwC Cyprus and PwC Update on Russian and in Cyprus for Russian Russia co-organised a successful seminar International Tax Developments titled “Challenges and opportunities for businessmen High Net Worth Individuals”, held at The latest developments in Russian and the offices of PwC Moscow. The event International Tax were the focus of an event PwC Cyprus organised a series of events in was attended by more than 100 senior we organised on 24 March 2017 at our Moscow, aiming to inform executives from Russian companies offices in Nicosia. Addressing the event, businesses and High Net Worth Individuals interested to invest in Cyprus. based in Russia about the opportunities that our CEO Evgenios Evgeniou stated: “We are all living in an age of great change and Cyprus can offer. PwC partners delivered Our CEO, Evgenios Evgeniou, stated: challenge, of opportunities and transition. presentations on all topics of interest to “Cyprus is a reliable investment destination Businesses today operate in an international investors. with the appropriate infrastructure and environment characterised by constant and legal framework as well as quality human rapid changes and their ability to adapt to On 15 March 2017, PwC organised an resources that can attract investors who the new reality and evolve accordingly is event which focused on the benefits of will use the country as a base for their perhaps more important than ever. ” Cyprus as an international business centre operations”. and investment destination as well as on PwC’s Wealth Management Services. More specifically, the PwC Multi-Family Office was presented, as a complete approach to addressing modern-day challenges.

26 PwC Cyprus ‘‘The Future of Cyprus for Middle East We continued to remain in close Russian Business’’ Conference contact with PwC Middle East, clients Middle East economies continue to and professionals in the region, PwC sponsored “The Future of Cyprus be affected by tightening liquidity promoting Cyprus as a regional for Russian Business” conference which conditions. business and investment destination was organised on 23 March 2017, at the through meetings and joint events. We Four Seasons Hotel in Limassol. The event are pursuing business opportunities was organised by the Cyprus Chamber of In spite of this, the financial year Commerce and Industry and the Cyprus 2017 has been a successful year which which arise out of the double tax treaty Russian Business Association and attracted saw another significant growth in network currently in place with Middle more than 250 business people from revenues from the Middle East market East countries which include Egypt, Cyprus and abroad. evidencing the development of Cyprus Kuwait, Lebanon, Qatar, Bahrain and the United Arab Emirates. The conference started with addresses as a desirable centre for Middle East of H.E. Ambassador of the Russian businesses and investors. We won a Federation Mr Stanislav V. Osadchiy, number of Wealth Management and The Ministry of Finance is active in the President of the Limassol Chamber Immigration engagements from the expanding Cyprus’ Double Tax Treaty of Commerce and Industry Costas Middle East, including citizenship network and pays particular attention Galatariotis and others. and family office support projects. to this area. As a result, a treaty with Saudi Arabia has been initiated for The leading experts from Russia, Countries involved, included the United Switzerland, Luxembourg and Cyprus Arab Emirates, Lebanon and Bahrain. the first time, a treaty with Oman is analysed the situation and gave the The outlook for gaining more Wealth also for the first time at an advanced forecast for the future of Cyprus and Management and Family Office work negotiation stage and there are a Russian Businesses. from the region remains positive. number of new negotiations currently taking place for signing new treaties Among the topics discussed were the new with other Middle East countries business trends, the impact on the Cyprus In addition our VAT specialists have society and business, the Cyprus economy won an ongoing major assignment to which will expand even further the forecast for 2017 and 2018, citizenship assist our PwC colleagues in the Middle Cyprus double tax treaty network. schemes, how the tax free liquidation East to roll out the newly introduced Further to the above, given its wide works, tax changes and the advantages VAT legislation in the region. This is a network, Cyprus can be used as a hub and disadvantages of being a trustee. significant assignment which involves for outbound investments, which will the short term secondment of four of contribute towards increasing business our Managers in the UAE and Saudi opportunities and which we intend Arabia, with the full support of the PwC to pursue more vigorously in the new ME leadership. financial year.

Annual Review 2017 27 International Markets Events

UK to be aligned with PwC UK in relation to “Cyprus the Eurozone’s providing Cyprus-based solutions to clients comeback kid” by The that might be affected by Brexit - partly During FY17 our revenues from clients Economist of UK national origin increased by 12.5% through the coordination team which was in comparison with the prior year. This set up to monitor changes and provide was due to small to moderate increases client support on Brexit matters. We shall The spectacular return of the economy of across most existing clients, a number of also focus on continuing to generate new Cyprus to growth and the role Cyprus can significant new clients as well as increased Private Wealth engagements (mainly play as a regional business centre of the activity in international structures, possibly relating to Cyprus tax residency for non- Eurozone in the Eastern Mediterranean, was driven, to an extent by Brexit, which doms and to citizenship-by-investment, at the centre of a successful international continues to affect the UK market. combined with our new Multi Family conference by the Economist that was Office solution and investment services held at the London Stock Exchange on 7 We focused on staying connected with our wherever possible), opportunities relating December 2016, sponsored by PwC Cyprus Tax & Legal colleagues in London placing to Funds, the Notional Interest Deduction and the Bank of Cyprus. emphasis on services most relevant to (NID) provisions, as well as the yacht and private clients and we further capitalised private jet schemes. We shall also monitor In his address, the Minister of Finance Mr on our successful cooperation with PwC regulatory change in the UK and work with Harris Georgiades referred to the recovery UK in this area. The flow of new business our PwC UK colleagues to develop and of the Cyprus economy in the past three continued during FY17 and the support promote new joint products (e.g. family years and underlined the government’s from PwC UK and our UK secondees helped office support, pensions, asset protection, plans to negotiate more agreements for the us gain more work in areas such as legal etc.) avoidance of double taxation and to press services, tax advice, corporate compliance ahead with the necessary reforms that will and assurance. Support from the PwC UK allow it to achieve sustainable growth. leadership and relevant partners was also a key factor that contributed to securing the Bank of Cyprus audit win.

During FY17 substantial efforts were made to promote Cyprus-based solutions within PwC UK and a number of associates, such as law firms and agents. These efforts included many private meetings and events as well as leveraging key contacts and Cypriot transferees and secondees currently with PwC UK. This effort will continue and grow during FY18. Key objectives for FY18 include continuing

28 PwC Cyprus The Deputy Minister to the President, USA A number of US colleagues and new clients Mr Constantinos Petrides mentioned have also visited us during the year and that the aim of the Cyprus government participated in workshops and meetings FY17 has been a landmark year with was to achieve growth and increase we held here for them. Other business tangible results for us. For the first time, competitiveness through which the country development efforts during FY17 included an all-day ‘integrated global structuring’ can establish itself as a regional business participation at the annual tax leadership meeting devoted to Cyprus was held with centre. convention of the US firm in Orlando, the IGS leadership. As a result, we were sponsoring and presenting at the ‘Invest in also invited to participate and present at PwC Cyprus was represented by our CEO Cyprus’ forum held in New York, continued the annual ‘planning group’ and ‘global Evgenios C. Evgeniou, who referred to visits to a number of the larger offices structuring network’ meetings in Den Haag the importance of Cyprus as a European within the US firm such as New York, and Boston respectively. Our offering is country that is a strategic hub for stability Washington DC, Virginia and Chicago as currently proving competitive and thanks in the wider region with good relations with well as to existing and new clients. to the very strong US tax practice of our its neighbours, as well as to the high quality We want to become even more relevant network with whom we have worked very of its human resources. within FY18 for the current US client closely over the last year or so, we are now portfolio we have today and that of PwC a lot more relevant to the US multinational Attending and speaking at the conference US itself by driving and actively promoting clients’ needs. FY17 financial results reflect among others were Daniel Daco, Head of more aspects of the Cyprus offering as this increased relevance of ours, as the firm the European Commission representation an international business centre and our total gross revenue from this particular in Cyprus, Andreas Westphal, European own deep expertise and capabilities as market was higher than ever before and Central Bank’s Mission Chief, John Patrick PwC Cyprus, namely those in the funds, new engagements were up by 90% from Hourican, Chief Executive Officer and shipping, EU VAT law, citizenships, legal those of FY16. member of the Board of Directors of and corporate on going compliance support the Bank of Cyprus and Constantinos areas. Herodotou, Privatisation Commissioner.

Annual Review 2017 29 International Markets Events

China New Business We participated in an event organised by the Cyprus Chamber of Commerce and Industry (CCCI) and the EU SME Center in During the year we continued our efforts to During the year: Beijing with various Chinese companies on penetrate the Chinese market. Our efforts •• We won our first citizenship 1 June 2016: were focused on the following areas: assignments including the set-up of a special purpose fund for the collective Business Development efforts investments of applicants of Chinese origin. •• We stayed close to our colleagues at •• We have assisted in due diligence PwC China presenting them with all exercises of major privately owned the recent changes in our legislation Chinese groups for business targets in which created opportunities for both Cyprus and the Region. corporates and HNWIs. •• Through a referral from PwC Hong •• Continued joint business development Kong we have won the audit of a efforts with selected business Cyprus subsidiary of a One Belt – One collaborators especially in the areas Road fund investing in the Oil and Gas of HNWIs, shipping and on specific Industry of Russia. Chinese direct investments into •• Through a competitive tender we have Cyprus. won again the provision of Tax and •• We supported /initiated events and VAT services to the leading technology actions with the Government, the group Huawei. Chinese Embassy in Cyprus and the Cyprus – China Business Association of Going Forward the Cyprus Chamber of Commerce. Going forward we will pursue several We supported the One Belt One Road event leads relating to a number of state at the Chinese Embassy in Cyprus in June and privately owned Chinese groups 2017 interested in investing in Cyprus and in the Region, as well as intensifying our efforts in winning more work in the area of HNWIs. A renewed effort will be made to promote specific planning ideas to targeted PwC China colleagues. Finally, we will continue our joint efforts with other major stakeholders including the Government in improving the Cyprus – China business ties focusing once again in the finalisation of a Double Tax Agreement with Hong Kong and the renegotiation of the Double Tax Agreement with China.

30 PwC Cyprus Annual Review 2017 31 People

Our vision is to create an innovative, differentiated organisation that attracts diverse, talented people and inspires them to achieve their potential as leaders who build trust in society and solve important problems.

With an eye to the future In FY17, we put great emphasis on creating unique career opportunities and a work In light of the accelerating changes in the environment that offers significant personal market, the complexity of the world that we and professional growth. It has been very live in and the demand for new services, we rewarding to see these efforts and the culture we are building attracting high Philippos C Soseilos have been transforming the way we attract, develop and retain the right people for our calibre university students. Head of People business with an eye to the future. In FY17, we received more than 1200 In FY17, we achieved a lot in the people applications for employment and space. Most importantly, we continued to recruited over 110 professionals across invest in the professional development of the organisation, including 70 university our people, and this section outlines how graduates who embarked in our 2016 our human capital management activities ACA and ACCA professional accounting have sparked professional and personal training schemes. We also made 70 offers growth. to university students for our 2017 ACA and ACCA professional accounting training schemes. The opportunity of a lifetime Moreover, we continued investing in We are committed to attracting and our summer internship programmes, retaining the best and brightest graduates increasingly seeking for diversity in the and professionals, who share our strong background of graduates, for example sense of responsibility for delivering high- from a technology background. To achieve quality services. this, we carried out more than 20 strategic employer branding activities attracting an audience of over 500 high calibre graduates and professionals.

32 PwC Cyprus New Partner & Directors

Engaging our People We focus on developing our people to become the next generation leaders.

In our 2017 Global People Survey we Andreas Yiasemides joined PwC Cyprus on 1 November 2016 as a achieved a very high people engagement Partner, In charge of Fund services. score (74%), with the vast majority of our people feeling proud to be working in PwC (82%) and that the people they work with demonstrate high standards of ethical Andreas Yiasemides conduct (85%). In charge of Fund services

In addition, we administered a confidential, anonymous Upward Feedback Programme for all our Managers, Senior Managers, Directors and Partners, so as to help them in Kyriacos Kokkinos joined PwC Cyprus on 1 September 2017 as an Executive Director in their personal development journey. the Advisory team focusing on the area of Digital Strategy and Transformation.

We also provided opportunities for all our people to engage with leadership Kyriacos Kokkinos through the organisation of Business Unit Executive Director Workshops and People Meetings with our Business Consulting CEO, which helped everyone feel even better informed and more involved with the direction our organisation was taking. As of 1 July 2017, 3 of our Senior Managers were promoted to Director. For FY17, in recognition of our people’s contribution and hard work, we paid a One Firm Bonus as well as a Performance Bonus, on the basis of the economic climate, the Eliana Iacovides Kourris organisation’s performance and people’s Risk & Quality individual performance.

Lambros Kyriakides International Private Clients

Michael Michael Indirect Tax Advisory

Annual Review 2017 33 People

Promoting talent A diversity of experience

Our goal is to build the iconic professional To solve important problems, we need services organisation by delivering diverse talent. That is why we employ distinctive client service through the people from a vast array of backgrounds quality of our people. Our talent strategy and with an equally wide range of is designed to help our people reach their experiences. This means they each think full potential by providing opportunities differently from one another and apply for them to continuously develop their varying approached to problem solving. leadership skills, grow their careers and deliver consistently extraordinary results for In FY17, our population comprised 56% clients. women and 20 different nationalities. Inspiring our people and providing an In FY17, we ran Reflect Development environment in which they can give their Centres for our Senior Associate 2 best is fundamental to our business. We population, Career Development Centres are committed to helping every one of for our Managers, Senior Managers our people build a rewarding career and and Directors, designed around the achieving their full potential by creating PwC Professional attributes, the Orion a great place to work. We are delighted to Executive Coaching Programme for Senior report that in FY17, the vast majority of our Managers and Directors in collaboration people said that they believe that PwC is an with PwC’s Executive Coaching Centre of inclusive work environment (78%). Excellence, and a series of individual Career Development Conversations with all newly promoted Managers up.

In addition, 4 of our Senior Managers participated in the MyWay Global Key Talent Programme and 20 of our Senior Associates participated in the Altitude Global Key Talent Programme, both of which aim to develop future leaders through high-impact developmental interventions, personal coaching and networking with colleagues from numerous PwC territories.

34 PwC Cyprus A mobile environment Managing Performance

With our strong international mobility We go out of our way to give our people the programme, we continue to build teams respect and recognition they deserve. We with diverse skills and backgrounds in order offer stimulating work, invest in continuous to solve important problems for clients, professional development, ongoing while developing our people through coaching and constructive feedback, as international experience. well as maintain fair and transparent performance evaluation and promotion Our strategic vision is to invest in mobility processes. Meritocracy is at the heart of experiences that inspire and enable our our performance management system, and people to deliver quality services to our our aim has been to continuously build a clients and each other. Our international culture, where people progress and are mobility programme continues to evolve to rewarded based on their contribution and support this vision, incorporating different impact. types of mobility opportunities for our people and creating greater flexibility in Real-time feedback is provided regularly how we meet the needs of our clients. throughout the year, which then forms an element of our annual appraisal process. In FY17, 13 of our people secured Agreed objectives and against grade-related secondments in PwC Germany, PwC skills and capabilities are aligned to the PwC Luxemburg, PwC Switzerland and PwC Professional, our leadership development Middle East, whilst 6 people from PwC framework that defines what it means to be Russia and PwC Ukraine were seconded to a professional at PwC and helps us develop PwC Cyprus. our people into authentic and inclusive leaders. In addition, in FY17, a total of 42 people transferred to a different Line of Service With a focus on developing our people within the organisation and 26 to a different to become the next generation leaders, Business Unit within their Line of Service, we demonstrated our commitment to in order to meet our client needs and get a continue investing for the future and offer diverse work experience. tremendous career opportunities, even under difficult market conditions through a number of promotions. We made 116 promotions as of 1 July 2016, 21 promotions as of 1 January 2017 and an additional 134 promotions as of 1 July 2017.

Annual Review 2017 35 People

A place to learn Through our management development us to shift the ownership of learning to our programme called “iGrow”, we people and to make their development more and grow continuously enrich our business skills intentional, by giving them the opportunity training interventions and enable all our to browse and opt for training, view their The skills of our people, help us deliver on people to develop further their leadership, training record and generally manage their our strategy and make us distinctive in our relationship, coaching, business and global own, as well as their team’s learning. market. acumen skills. Our programmes are based on the 5 pillars of the “PwC Professional” Another transformation that kicked off in That is why ongoing learning and and our refreshed values and entail blended FY17 was the Electronic Sign-in System development are integral to our culture. learning solutions (such as case studies, (ESS). This new system allows classroom We ensure our people receive leading-edge videos, e-learns, self-awareness tools, role participants to register their attendance technical training, as well as skill-building plays and group exercises) to enhance our digitally, providing operational efficiencies programs and experiences which are people’s learning experience. and giving our learners an experience they relevant for their work and are delivered would expect in a digitally-enabled firm. when needed. This investment brings In addition to this, we are always looking positive returns for our people and our for new ways to provide our people with We believe that it is very important to business. As our people improve, so does relevant development opportunities. heavily invest in our talents, thus during our overall service to clients. Virtual, optional and self-led learning is FY17, 4 of our Senior Managers and 20 becoming increasingly popular, enabling of our Senior Associates participated in Our approach to learning and development people to boost their skills and educate international PwC Key Talent Programmes is based on the 70/20/10 model: 70% of themselves in a way that works for them. (i.e. “My Way” & “Altitude”), which job-related learning occurs at work; 20% Relevant actions towards this include aim to develop the participants into our happens through coaching and mentoring; our global collaboration with Coursera, future leaders, through high-impact and 10% occurs through formal learning in creating co-branded series of courses developmental interventions, personal (online or in classroom). This model on data analytics and our local optional coaching and networking with colleagues provides a platform where our people learn learning bites series (IMPACT), on topics from a number of other PwC firms. rapidly, continuously and efficiently. More that are important for our work and can Our plans for the coming year include specifically, to empower this approach, we contribute to personal effectiveness and initiatives to advance PwC’s approach to have implemented on a pilot basis a global performance. leadership development, along with further methodology called “Team Based Learning” investments in world-class coaching and (TBL). This methodology helps our people Through the implementation of iLearn new technologies to support our people’s to cultivate a developmental mindset and (our electronic platform that supports and learning goals. to look at every work situation as a learning manages our “iGrow” learning activities opportunity. and processes), we managed in FY17 to have better information in relation to relevant KPIs and to enhance our internal processes. In addition the platform helped

36 PwC Cyprus Partner and Director PwC’s Academy Moreover, 13 of our ACCA Trainees achieved Development 1st Pancyprian place in their examinations of “Financial Reporting”, “Audit & During FY17, the Academy continued to Assurance”, “Financial Management”, Our Partners and Directors develop through provide tuition and support to our trainee “Governance, Risk and Ethics”, “Corporate engaging learning experiences that fit accountants under both the Institute of Reporting’’, “Business Analysis”, “Advanced around their work and are flexible, personal Chartered Accountants in England and Financial Management”, “Advanced and, above all, relevant to their needs. Wales (ICAEW) and the Association of Performance Management” and 3 trainees Chartered Certified Accountants (ACCA) achieved 1st and 2nd place amongst the top During FY17, all our Partners and Directors schemes. 3 Affiliates in Cyprus. attended technical skills training relevant to their sphere of practice and 6 of our Our trainees’ professional examination During FY17, tutors of PwC’s Academy Partners attended International Partner results in FY17 were outstanding, with pass delivered 1 full ICAEW course and 4 ICAEW programs in the areas of “Renewing your rates well above the worldwide averages, revision courses in Mauritius. Leadership”, ‘Leading Future Business’ and achieving 100% in some papers. “Leading the business unit”. During FY17, the Academy also delivered In addition, 3 of our ICAEW trainees 19 Continuous Professional Development received 4 worldwide awards in their Training Centre (CPD) seminars, approved by the ICAEW examinations for achieving 1st place in and ACCA, to a total of 441 participants. the “Financial Accounting & Reporting” During FY17 we have finalized our Training In addition, 17 in–house seminars were (2 prizes) and “Audit & Assurance” (2 center in Nicosia. It is an inspiring, modern delivered to local organisations with 290 prizes) Professional Level examinations, and functional space that hosts training participants and 2 in-house seminars to respectively. The prizes were presented to programmes and events for our people organisations abroad. and our clients. There are 7 training our trainees in April 2017, during a special rooms which are equipped with state of award ceremony organised by the ICAEW in the art audio and visual equipment and London. comfortable break out areas.

Annual Review 2017 37 People

Professional examination award winners

Papageorgiou Sofia Shynkar Marianna Aleksandrov Vitalii Worldwide Joint First Place and the Spicer & First Place in Cyprus, First place in Cyprus, Pegler Prize Advanced Performance Management Audit and Assurance (F8) paper, ACCA Financial Accounting & Reporting paper, (P5) paper examinations ICAEW examinations First place among the top 3 Affiliates, ACCA Examinations Chistyakov Dmitry Constantinou Andreas First place in Cyprus, Joint First Place and the Watts prize, Gkikas Marios Financial management (F9), ACCA Audit and Assurance, ICAEW examinations First place in Cyprus, examinations Governance Risk and Ethics (P1), ACCA Papadopoulos Martin Examinations Lyugay Vladimir Joint First Place and the Watts prize, First place in Cyprus, Audit and Assurance paper Tarnopolskyi Kyrylo Advanced Financial Management (P4) Joint First place and the Spicer & Pegler, First Place in Cyprus, paper, ACCA examinations Financial Accounting and Reporting paper, Business Analysis (P3) and Advanced ICAEW examinations Financial management (P4) papers Galeeva Liliya Second place among the top 3 Affiliates, First place in Cyprus, Tryfonos Panagiotis ACCA examinations Advanced Performance Management (P5) Joint First Place in Cyprus, paper, ACCA examinations Financial Reporting (F7), ACCA Karmanova Kristina examinations Second place among the top three Affiliates, Petsas Ermis ACCA examinations First place in Cyprus, Goumenos Georgios Governance Risk and Ethics (P1) paper, First Place in Cyprus, Vorobyev Alexey ACCA examinations Audit and Assurance (F8) paper, ACCA First place in Cyprus, examinations Corporate Reporting (P2) paper, ACCA Jefimova Alina examinations First place in Cyprus, Fragkiadakis Vasileios Advanced Financial Management (P4) First Place in Cyprus, paper, ACCA examinations Advanced Financial Management (P4) paper, ACCA examinations

38 PwC Cyprus Events

Our Alumni Program First Alumni event

In June 2017, we organised an Alumni Our PwC Alumni network helps connect Banking event, (in a series of alumni all our PwC people, past and present, to industry events that will follow). We had opportunities, resources, mentors and the opportunity to have with us Jonathan friends. Mulder (PwC Director – Fintech) who presented how to ‘remain relevant in a Our Alumni program offers personal digital services world’. In addition, in and professional networking platforms, order to highlight the importance of our career opportunities and professional alumni network, we have upgraded our development, through a series of events, microsite and included an animated video learning interventions and sharing of the showcasing the value and benefits of the organisation’s thought leadership. program. In FY17, we organised our first Alumni Learning Intervention, with different runs To make sure that our program is beneficial for our alumni, we circulated a both in Nicosia and Limassol, where alumni feedback survey to our active members, which the results will help us improve our had the opportunity to get up to date with activities and enhance our offerings. recent industry trends (i.e IFRS 15- Revenue from Contracts with Customers) and We truly appreciate the effort and contributions that our alumni have made while develop their Emotional Intelligence skills. working at PwC and although their daily connection with us may have changed, we are eager to maintain a strong and lasting relationship with them.

An exceptional place to We are continuously investing in new ways of improving our workplace. This is a long- work term commitment, reflecting awareness that our People make their greatest contribution We continue to be one of the few when their quality of life is well-balanced organisations across the world to hold with their professional obligations. the highly prestigious Investors in People CHAMPION and Investors in People GOLD accreditation in Human Capital management, which reflect the quality of our people management practices, the strength of our culture and our commitment to continuous improvement.

Annual Review 2017 39 Firm

Legal and organisational structure

Ownership of PwC Cyprus PwC Cyprus is wholly owned by professional practitioners working with the PricewaterhouseCoopers Limited (PwC firm, commonly referred to as “Partners”, Cyprus) is a limited liability private who are in their majority members of the company, under registration number board of directors of the company. 143594, having its registered office in PwC Cyprus has two Lines of Service: Cyprus at Julia House,3 Themistocles Dervis Assurance & Advisory (A&A) and Tax & Street, CY-1066 Nicosia, Cyprus. PwC Legal Services (TLS) and is led by a total of Cyprus has offices in three districts, Nicosia, 42 Partners. Limassol and Paphos.

Subsidiary undertakings

The principal subsidiary undertakings of PwC Cyprus as at 30 June 2017 are:

Subsidiary undertaking Principal activity PricewaterhouseCoopers (Marketing and Professional services Communications) Limited PricewaterhouseCoopers Associates Limited Professional services PricewaterhouseCoopers Professional Training Limited Professional training programmes PricewaterhouseCoopers Investment Services (Cyprus) Professional Services Limited PricewaterhouseCoopers Fund Services Limited Professional Services

These entities are all member firms of the PwC network by being members of the PricewaterhouseCoopers International Limited (PwCIL).

40 PwC Cyprus Other PwC network member firms in Cyprus The PwC network

S. A. Evangelou & Co LLC is a member firm Legal structure of the network Key features of the network of PricewaterhouseCoopers International Limited (PwCIL) and part of the PwC’s Tax PwC is a global network of separate firms, Being a member of the PwC network and Legal Services Network providing Legal operating locally in countries around means firms also agree to abide by certain Services in Cyprus. It is a limited liability the world. PwC firms are members of common policies and maintain the private company having its registered office PricewaterhouseCoopers International standards of the PwC network. Each firm at 3 Themistocles Dervis Str, Julia House Limited (PwCIL) and have the right to use engages in quality control and compliance Annex, 1st Floor CY-1066 Nicosia, Cyprus the PricewaterhouseCoopers name. As monitoring activities, covering the provision and it is registered in Cyprus as a Lawyers’ members of the PwC network, PwC firms of services, ethics and business conduct, Limited Company under registration share knowledge, skills and resources. This and the compliance with specific, strict number 23348. membership facilitates PwC firms to work standards for independence monitoring and together to provide high-quality services protection. S.A. Evangelou & Co LLC and its wholly on a global scale to international and local owned subsidiary undertaking, namely clients, while retaining the advantages Network profit-sharing PricewaterhouseCoopers Corporate of being local businesses - including arrangements Secretarial Services Limited, are wholly being knowledgeable about local laws, owned by Spyros Evangelou who is also the regulations, standards and practices. Head of Practice. The Cyprus member firms •• Operate their own partner and members of staff remuneration arrangements, wich are independent and separate from other member firms of PwCIL. •• Have no profit-sharing arrangements with other member firms of PwCIL.

Annual Review 2017 41 Firm

Governance The members of the Management Board who served during FY17. First row from left: Board of Directors Liakos M Theodorou, Evgenios C Evgeniou – CEO, The Board of Directors is responsible for Theo C Parperis undertaking certain statutory duties of the Second row from left: firm. The CEO is also the Chairman of the Philippos C Soseilos, Board of Directors. Marios S Andreou

Management Board

The CEO who is elected by the firm’s Partners for a five year term, appoints Oversight Board four members who will be elected every the firm’s Management Board. The two years. The members of the Oversight Management Board is responsible for Boards as of 1 July 2017 are: George M The Oversight Board, which is independent assisting the CEO in the formulation and Loizou (Chairman), Tasos N Nolas, Aram of the Management Board, is elected by implementation of strategic priorities A Tavitian and Nicos A Theodoulou. The the firm’s Partners every three years. and business plans, compliance with all Oversight Board is responsible to oversee The Oversight Board is made up of five PwC Network obligations and the design, the activities of the Management Board to members all of whom are Partners and maintenance and operation of an effective hold management accountable to Partners, elects its own Chairman. As of July 2017, quality control system. to monitor its decisions and actions and the Oversight Board will be made up of where necessary advise the CEO and the Management Board.

The members of the Oversight Board, who served during FY17. From left: Andreas T Constantinides (Chairman), Constantinos H Constantinou, George C Lambrou, Chrysilios K Pelekanos and Androulla S Pittas.

42 PwC Cyprus Quality Management System

PwC member firms undertake with applicable regulatory requirements, their business activities within the each member firm may also be reviewed framework of applicable professional periodically, in some cases annually, by regulators and/or professional bodies. standards, laws, regulations For Assurance work, the quality review and internal policies. These are programme is based on relevant supplemented by a PwC Code of professional standards relating to quality Conduct applicable to all of their controls including International Standard partners and staff. on Quality Control 1: ‘Quality Control for Firms that Perform Audits and Reviews of Financial Statements, and Other Assurance Each PwC member firm is responsible for and Related Services Engagements’ developing and monitoring the effectiveness (‘ISQC1’). of its own quality management systems. This includes performing an evaluation of Petros C Petrakis The overriding objective of the assurance its systems and procedures and carrying Head of Risk & Quality quality review programme comprised out, or arranging to have carried out monitoring at both the network and on its behalf, an independent review. territory levels, is to assess for each relevant In addition, the network monitors PwC PwC member firm whether: member firms’ compliance with network

quality expectations and risk and quality •• quality management systems are standards and policies. This includes appropriately designed, are operating monitoring not only whether each PwC firm effectively and comply with applicable conducts an objective quality management standards and policies review programme, but also considers a •• engagements selected for review member firm’s processes to identify and are performed in compliance with respond to significant risks. In accordance applicable professional standards and PwC Audit requirements, and •• significant risks are identified and managed appropriately.

Annual Review 2017 43 Firm

Elements of our internal Statement on the effectiveness Confidentiality and quality management system for of the firm’s internal quality Information Protection Assurance services control system Confidentiality and information Our internal control system is based on the The PwC network monitors the firm’s protection are key elements of our six elements of quality control set out in compliance with network quality professional responsibilities. Misuse or ISQC1, which are: expectations and evaluates the effectiveness loss of confidential client information or of our firm’s system of internal quality personal data may expose the firm to legal •• Leadership responsibilities for control wich is also subject to review by proceedings, and it may also adversely qualitywithin the firm the local regulator, the Cyprus Public Audit impact our reputation. •• Relevant ethical requirements Oversight Board (CyPAOB). On the basis (including Independence) of these reviews, the Management Board is Our firm’s Data Protection Officer is •• Acceptance and continuance of client satisfied that PwC Cyprus’ internal quality responsible for providing oversight, policy relationships and specific engagements control system for Assurance is operating and strategic direction on confidentiality •• Human resources: effectively. Any matters identified through and data privacy matters. the review process are actioned and changes −− Recruitment and hiring implemented as appropriate. Our firm is required to comply with −− Learning and education and career the relevant PwC Network standard on development information protection and the obligations −− Performance evaluation and Ethics & Independence arising from the local data protection compensation legislation regarding handling of −− Assignment of teams and resourcing Ethical requirements confidential information and personal data, engagements and contractual terms govern the use and disclosure of such information. At PwC, we adhere to the fundamental •• Engagement performance: principles of the International Ethics We have implemented information security Standards Board for Accountants (IESBA) −− Consistency in quality of engagement policies and procedures aiming to ensure: Code of Ethics for Professional Accountants, performance which are integrity, objectivity, professional −− Consultation •• sensitive information is protected from competence and due care, confidentiality −− Engagement Quality Control Review internal and external threats; and professional behaviour. In addition, −− Resolving differences of opinion •• confidentiality, availability and our Network Standards applicable to all −− Engagement Documentation integrity of information is maintained; Network firms cover a variety of areas •• statutory, regulatory and contractual including ethics and business conduct, •• Monitoring obligations are met; independence, anti-money laundering, anti- trust/anti-competition, anti-corruption, information protection, firm’s and partners’ taxes and sanctions

44 PwC Cyprus The firm’s policies and standards are Anti-bribery Independence supported by ongoing compliance monitoring. Monitoring is carried out Compliance with anti-bribery and Being objective is a corner-stone value in by PwC Cyprus’ Information Security anticorruption initiatives is part and parcel our profession. Independence affects our Compliance Organisation and is of our culture. Our Code of Conduct, the lives in two very distinctive ways. It affects supplemented by checks by the PwC PwC Network Standard on Anti-bribery, our work on behalf of PwC: the service Network’s Global Security Organisation the IESBA Code of Ethics and other local we provide, the roles we perform and the legal requirements make it clear that it business relationships we establish; and it Complaints and Allegations is unacceptable for our People to solicit, affects our Partners and staff personal lives, accept, offer, promise, or pay bribes. such as our investment portfolios. Policy Policies, training and procedures in respect of anti-bribery are in place to comply with It is imperative to maintain our Our firm has a Complaints and Allegations the above rules and regulations. policy which is communicated twice a year independence in everything we do. to Partners and members of staff by the Partner Responsible for Ethics & Business Conflicts of interest We have our independence policies and Conduct. Under this policy any partner or standards which include guidance from member of staff who observes unethical Relevant relationships, potential conflicts our Firm and the regulatory bodies; the behaviour is encouraged to report it to any of interest and other sensitive situations engagement team tools; our personal member of the Complaints and Allegations are identified before accepting a new independence tools; and finally our reporting team. Our firm has procedures client or engagement. The Independence communications and learning materials/ in place to (a) protect individuals raising team performs checks via internal and videos. These are designed to help PwC a concern, from being victimized or PwC Network databases and websites and comply with relevant professional and losing their job as a result and (b) enable provides a report to the engagement team regulatory standards of independence that anonymous reporting as well. In addition, with the results. Where conflicts of interest apply to the provision of assurance services. clients or other third parties are informed are identified the appointment is either Policies and supporting guidance are via our contractual agreements that they declined or safeguards are applied to make reviewed and revised when changes arise may also report any such concern to our sure that potential conflicts of interest are such as updates to laws and regulations or Partner Responsible for Ethics and Business appropriately managed. These safeguards in response to operational matters. Conduct. could include the assignment of separate teams, carrying out the engagements under The PwC Global Independence Policy, We are committed to deal responsibly and code names and holding meetings with the is based on the IESBA Code of Ethics professionally with any genuine concerns clients in relation to the transaction at the for Professional Accountants, contains raised about possible malpractice. Concerns clients’ respective premises or in designated minimum standards with which PwC should be expressed in good faith, fairly, meeting rooms, amongst other. member firms have agreed to comply, honestly and respectfully. including processes that are to be followed to maintain independence from

Annual Review 2017 45 Firm clients, when necessary. The PwC Global Continuous professional development Independence Policy is supplemented with the US Securities & Exchange Commission rules, restrictions imposed by the EU Audit Regulation as well as other applicable independence rules. Our firm is committed to providing its skills. In addition to the formal training Partners and People with the relevant programmes, the firm encourages each We have a designated partner (known as opportunities to continuously develop professional to take ownership for their own the “Partner Responsible for Independence” as professionals, reaching the maximum continuous professional development, by or “PRI”) with appropriate seniority and of their potential at every role they are looking into opportunities for secondment standing, who is responsible, together assigned within the Firm. to the PwC network and also by undertaking with his team of independence specialists, development opportunities aligned to their for the implementation of the PwC Global Over and above our Performance role and grade. Independence Policy including managing Management and Upward & Peer Feedback and controlling the related independence processes, our people’s professional PwC’s Academy also ensures that our processes and providing support to the development is guided through a trainee accountants, under both the business. combination of on-the-job training, Institute of Chartered Accountants coaching and formal training programmes. in England and Wales (ICAEW) and Formal training programmes ensure the Association of Chartered Certified that our people meet their Continuous Accountants (ACCA) schemes, are provided Professional Development (CPD) with the highest quality education and requirements. support. Our trainees’ professional examination results in FY17 were For this reason, we continued to follow outstanding, with pass rates well above the the “Approved Employer – Professional international averages, achieving 100% in Development stream” awarded by the some papers. Association of Chartered Certified Accountants (ACCA) and the Institute of Certified Public Accountants of Cyprus (ICPAC).

More specifically, our training curriculum includes internal and external training courses, seminars and e-learns, which are industry-specific, role-specific and cover both technical and business

46 PwC Cyprus Corporate responsibility

The world is changing – faster than ever before. As a result, organisations need to adapt and tackle new challenges.

We have to work together to make a difference and be a catalyst for change.

Creating value for our clients, our people and the communities we live and work in is at the heart of PwC. And what binds us Androulla S Pittas together is one common purpose – to build trust in society and In charge of Corporate Responsibility solve important problems.

Through CR, we seek to go beyond ‘doing the right thing’ to being a catalyst for change in four focus areas: responsible business, diversity and inclusion, community engagement, and environmental stewardship.

Annual Review 2017 47 Responsible business Events

Responsible Sponsoring the 2nd “Managing Cyberspace Risks- International Compliance The Business of Protecting your business Forum Business”

Our focus on responsible business is about On 4 October 2016, we sponsored the We sponsored an event organised by the realising opportunities for positive impact 2nd International Compliance Forum, American Chamber of Commerce in Cyprus through our value chain – including which presented the latest international and the Nicosia Chamber of Commerce our work with clients and suppliers. We institutional policy trends and challenges, and Industry, titled “Managing Cyberspace recognise that the most significant societal as well as the developments in servicing Risks: The Business of Protecting your contribution we make is through the work international investors, whether high Business” that was held on 26 October 2016 we do every day. net worth individuals or organisations at the Hilton Park Hotel, Nicosia. specifically relating to compliance. The objective of the event was to focus on The forum brought together banks, cyber security awareness including trends in accounting, tax and legal firms, cyber-crime, virtual currencies, social media administration services (fiduciary) firms, exploitation, social engineering and insider insurance firms, international corporations threats. and the various Regulators involved, to discuss and exchange practical ideas on The messages delivered were not to how to achieve effective compliance when it develop subject matter experts but to comes to European directives, international provide professionals with the fundamental and local law. Our Director in Assurance, tools for managing risks related to the Nicos Stavrou, delivered a presentation on cyber environment. Keynote speakers Compliance with IFRS 9 as it is the new at the AmCham Cyber event included accounting standard, pertaining to financial the FBI Special Agent in Charge of New instruments which will come into effect as York City’s Cyber Division, Aristedes from 1 January 2018. Mahairas, the Director of Cyprus Police Bureau Department of IT, Christos Drakos, and the Commissioner of Electronic Communications and Postal Regulation, George Michaelides.

48 PwC Cyprus Quality Conference 2016 Book presentation “Strategy that Works” by PwC Cyprus On Thursday 10 November 2016 the annual Quality Conference took place for the 7th We presented the book “Strategy That In statements, our CEO Evgenios Evgeniou, consecutive year. The conference was Works” in cooperation with the Harvard said: “We feel especially lucky that our organized by the Cyprus Association of Business Review publishing house, at an organisation’s decision to support Cypriot Quality, a member of OEB. Sponsors of the event held on 4 October 2016 in Nicosia. businesses in every way possible has conference were PwC, Hellenic Bank and coincided with the publication of the Swiss Approval. The book was presented by Kevin J. book ‘Strategy That Works’; a useful tool Stansfield, Principal at Strategy&, member that includes substantive advice for the The Conference focused on how quality can of the PwC international network, to correct implementation of strategies for and must help us in everyday thinking and delegates from the business world and business growth. Recognising the role of how to constantly support the business in public sector stakeholders. It is the Cypriot businesses in efforts for sustainable their effort to cope with various challenges Harvard Business Review’s most significant growth, the programme will adjust all the and move on towards growth. George publication on strategy of 2016, analysing organisation’s planned activities to their A Ioannou, our Director in Consulting the ways in which a business can eliminate needs.” participated at a panel discussion with the chasm between a theoretical business subject “The Quality for businesses & the strategy and its actual implementation, with Cypriot economy”. the ultimate goal of achieving the desired growth rate.

The panel discussion that followed was joined by senior executives of Cypriot businesses such as the CEO of Cablenet, Mr Nicolas Shacolas, and the Managing Director at Photos Photiades Distributors, Mr Alexis Photiades. The discussion was coordinated by our Partner, In charge of Consulting Mr Philippos Soseilos. PwC Cyprus’ new programme to support Cypriot businesses, which was announced during the event, aims to utilise the organisation’s specialised knowledge to the benefit of the local business sector.

Annual Review 2017 49 Responsible business Events

PwC Cyprus a member of the The Business Integrity Forum is a network How Safe is your Business?’ Business Integrity Forum of major international companies, dedicated Conference to cooperating with member companies who wish to reach the highest standards of PwC Cyprus has been certified to participate We were the platinum sponsor of the ‘How business integrity, through discourse and in the Business Integrity Forum (BIF), which S@fe Is Your Business’ conference organised exchange of views on matters that promote was established in Cyprus by Transparency by the Cyprus Chamber of Commerce & transparency and responsibility. International-Cyprus, in cooperation with Industry, and the Cyprus Neuroscience & Transparency International. Technology Institute, that took place on 2 February 2017 at the Filoxenia Conference At a ceremony on 18 November 2016 Centre in Nicosia. at the organisation’s headquarters, our CEO Evgenios Evgeniou was handed the The conference aimed to inform the certificate of participation by Dr Maria business community about the risks and Kramvia – Kapardis, Chairwoman of the solutions that exist in relation to cyber- Transparency International – Cyprus’ Board attacks. Our Partner in Consulting Tassos of Directors. Receiving the certificate, our Procopiou, delivered a presentation titled CEO Evgeniou said: “It is important for ‘Cybersecurity-Threats in the Digital Era’. any organisation that wishes to contribute During his presentation, he stated that positively to the environment it operates “Electronic crime is one of the most frequent in, to recognise that its responsibilities are financial crimes faced by businesses in not just limited to its clients but also to the Cyprus, while its growing trend creates people and to society in general. At PwC, the need for a change of culture but also this constitutes our guiding principle and for a coordination of efforts to tackle it. governs every aspect of our operation. There is an urgent need to invest in security Today’s ceremony constitutes important programs, technologies and processes in recognition of the effort we are making; order to minimize risks and favour the an effort that aims to sensitise the business overall operation of businesses.” world and open the way to responsibility and transparency, within the framework of our organisation’s programme to support Cypriot businesses.”

50 PwC Cyprus PwC informed Cyprus company to become familiar with the EU audit legislation and bring up best practice, executives on the legislation to help them achieve that goal. This changes and the role of Audit development in turn will contribute towards Committees a healthy entrepreneurship, a necessary pillar for achieving robust growth,” he Responding to the need to support Cyprus’ added. businesses, PwC Cyprus in collaboration with the Institute of Directors Cyprus (IoD) and the European Confederation of Directors’ Associations (ecoDa) organised the event “Boards of Directors & Audit Committee at the heart of audit reform” on 2 November 2016 in Nicosia.

The event was attended by top executives of Cypriot businesses, who were briefed on the developments in the auditing services industry and the changes affecting the operation of the Boards of Directors and Audit Committees. Andreas Zachariades, Vice Chairman of the Cyprus Public Audit Oversight Board, was one of the event’s main speaker. In his welcome address, our CEO, Evgenios Evgeniou stressed the importance of fully comprehending the changes in the new EU legislation, noting that it is imperative that businesses thoroughly evaluate the consequences of this reform and enter a process of adjusting to the relevant changes. “The usefulness and role of audit committees is of great importance for any organisation wishing to develop robust corporate governance. Therefore, there is an explicit need

Annual Review 2017 51 Responsible business Events

PwC presented the local Presentation of the 1st Contest 2nd BIF Workshop - findings of the 20th Annual Business Ethos in Cyprus ‘Investigative Interviewing of Global CEO Survey Suspected Fraud Cases’ In an effort to promote the principles of CEOs in Cyprus appear confident about the transparency and integrity in the business On Wednesday, 12 April 2017, Transparency course of the global economy according sector, Transparency International-Cyprus International Cyprus organised the to the local findings of PwC’s 20th Annual and the Cyprus Chamber of Commerce are 2nd workshop for Business Integrity Global CEO Survey. PwC carried out the organised the 1st Contest Business Ethos Forum members with title ‘Investigative local survey for the 6th consecutive year, in Cyprus. The purpose of the Contest Interviewing of Suspected Fraud Cases’. As with the participation of 89 CEOs in Cyprus. was to encourage, recognize and reward sponsors, PwC Cyprus, hosted the workshop It is worth noting that this year’s global exceptional efforts that contribute to the at its offices in Nicosia and welcomed all survey was carried out in 79 countries with fight against corruption, the strengthening BIF members. The workshop was conducted the participation of almost 1,400 CEOs. of transparency and accountability of by Professor Rebecca Milne and covered businesses and organisations in Cyprus. business-critical issues facing participants The findings of the 20th Annual Global CEO on identifying and tackling fraud within Survey were presented at an event that took The awards were awarded to Enterprises companies. place on 9 March 2017, by our Partner, In and Organisations that have proven to charge of Consulting Philippos Soseilos. A promote and apply the values of moral discussion followed with the participation and social commitment to corruption by of our CEO, Evgenios Evgeniou and the fostering a positive contribution to society. CEO of Bank of Cyprus, Mr John Patrick PwC Cyprus is the sponsor of the 1st Contest Hourican, who participated in the global Business Ethos in Cyprus. A presentation survey by providing an in-depth interview. of the contest was held on 27 June 2017 at the premises of the Cyprus Chamber of Commerce in Nicosia.

52 PwC Cyprus PwC awards foreign Evgeniou and the Minister of Finance, Mr Other activities investments in Cyprus Harris Georgiades presented an award to Eni for its investments in the hydrocarbons During the year our Partners and staff have sector. PwC presented the 6th ceremony of the participated in discussions/ consultations CIPA International Investment Awards, with the Public Sector and other business In statements, our CEO said: “PwC attaches which took place on 26 June 2017 at the and professional bodies in an effort to great importance to the role of foreign Presidential Palace, attracting some 500 contribute to the economic development investments as the driving force to achieve prominent business people, investors, and the building of stability and trust in economic growth. We are therefore politicians as well as representatives of the Cyprus economy. We have published particularly proud to participate in the CIPA the academic community. The aim of the a number of articles in the local press on International Investment Awards, which event, which was organised by the Cyprus corporate responsibility issues provide us the opportunity to honour the Investment Promotion Agency (CIPA), is to foreign investments that contributed to reward foreign companies and individuals During the year we have also enhanced the the creation of new jobs, the strengthening who have invested in Cyprus and stand training/awareness of our staff on corporate of the competitive advantages and the out for their contribution to the country’s responsibility issues such as sustainability, general promotion of the Cyprus economy’s economic growth. transparency, ethics, the effect of prospects.” Megatrends in society and how these could The event was under the auspices of affect our clients. the President of the Republic, Mr Nicos Anastasiades, and was held in the presence In addition, our PwC’s transparency report of important business stakeholders, political published in September 2016 outlined officials and other distinguished guests. the values and key principles defining During the ceremony, our CEO Evgenios the quality of our work. Aiming to deliver the highest level of quality services to our clients, the PwC team is committed to professionalism, independence, objectivity and transparency, at all times

Annual Review 2017 53 Diversity & inclusion

Diversity Week selling arts & crafts made by their members. Colleagues had the opportunity to visit the bazaar and to also explore assistive In FY17 we celebrated our Diversity Week Diversity & technologies for the blind. for the third year with the theme ‘Valuing Inclusion difference, driving inclusion’.

Our Diversity Week is about creating Diversity means different things to widespread awareness of diversity as a different people and organisations. At PwC priority, demonstrating leadership PwC, driving diversity means bringing commitment to diversity, and having our together the perspectives of individuals people embrace inclusion and difference. from all backgrounds, life experiences, PwC + HeforShe preferences and abilities to create better During this week we promoted local outcomes for our clients, our people, and and global initiatives, such as seminars, We continued to actively support the our communities. webcasts and a range of innovative tools, HeforShe solidarity campaign for gender such as self- awareness tests, myth buster equality initiated by UN Women, by having In FY17 our population included 20 quizzes, competitions, videos and studies, to 22% of our people pledging and making different nationalities, 56% of our People help our people commit to inclusive actions. their commitment to engage men as being female and 48% of our People being agents of change for the achievement of under the age of 30 years old. Christmas Diversity Video- gender equality and women’s rights and Christmas Traditions from encouraging men to take action against As we continue our efforts to drive inequalities faced by women. enhanced awareness and translate it into around the world concrete and comprehensive actions, we In celebration of the International Women’s are delighted to report that we are making In December 2017, we created a video day and its theme “Be Bold for Change”, good progress. This year we achieved showcasing Christmas traditions from we offered to all our Colleagues a HeforShe a high inclusion score, with 78% of our around the world. More specifically, we magnet, making a strong statement towards people saying that they believe PwC is had colleagues from different nationalities gender equality and personal accountability. an inclusive work environment, where sharing on camera their traditions and individual differences are valued and embracing our differences and similarities. As an organisation it’s imperative we attract, respected. retain and develop diverse professionals to International Day of People spur innovation, drive growth and sustain Having this in mind, we continue to competitive advantage in the marketplace. work towards making PwC an even more with Disabilities inclusive workplace for all our people. Making progress is challenging, and we In December 2017, to locally embrace the Some of the key actions of our diversity don’t claim to have all the answers or to diversity in its various forms and especially journey are outlined in the next sections. have achieved the progress we want. But we the ‘Disability’ factor, we invited the are committed in maximising the benefits ‘Pancyprian Organisation of the Blind’ to that diversity offers! run a Christmas Bazaar at our premises,

54 PwC Cyprus Community Events

Education

Community Award winning students - Award winning students University of Cyprus PwC Cyprus supported 3 top performing Community engagement is a fundamental students from different education institutes. element of the PwC culture. We at PwC We sponsored four awards to top Congratulations to the award winning Cyprus aspire to be a great corporate performing students of the University students who through their hard work citizen by playing a leading role in the of Cyprus. The awards, sponsored by managed to win the following distinctions: community through everything from PwC for the 14th consecutive year, were •• Frederick University - Award towards charitable giving and volunteering to presented to the top students by our CEO the Highest Achieving student of the business partnerships for community Evgenios Evgeniou and our Director, Accounting & Finance department development. While our goal is to make a Marios Melanides during the graduation •• The Senior School - Award towards the difference in the communities where we ceremonies of the University that were Highest Achieving Student work by sharing our time and knowledge, organised on, 27 June 2017 and 30 June •• KES college - Best graduate of the our People also benefit from new skills, 2017. Business Studies course enhanced personal fulfilment and deeper local relationships.

Our Community pillar includes the following areas:

•• Education •• Health & Well being •• Supporting families •• Foster Entrepreneurship

Annual Review 2017 55 Community Events

Health & Well Being

In the context of our Health & Well Seminar on Prostate Cancer Run in Color 2016 Being initiatives, more than 430 Awareness - “Knowledge is of our People had the opportunity Power” On 8th October, 52 PwC staff members to attend 11 seminars organised took part in the Run in Colour event which took place in Limassol, along the Molos in our offices across Cyprus on “Movember” was celebrated through a seminar on Prostate Cancer Awareness coast. Run in Colour is a charitable event, topics such as “Breast Cancer “Knowledge is Power”, in cooperation with collecting funds for the Elpida Foundation Awareness”, “Prostate Cancer Europa Uomo. which provides support to children with cancer, while participating in a fun 5k run, Awareness”, “Improving your The seminar was delivered on 22 November followed by a colourful music festival. The Eating Habits at Work”, “Make 2016 by Dr. Prodromos Philippou event was created to motivate participants up Tutorial” and “First Aid for (Urologist) in Nicosia and on 23 November to boost their wellness and health, while Children”. 2016 by Dr Stavros Charalambous in giving back to charity and by experiencing Limassol. a great day out! All participants had a fantastic day out by participating in Run in Colour, and also gave back to society through a charity donation.

PwC participated at the ICPAC Charity Regatta Race

PwC Cyprus supported the Charity Regatta Race in Limassol, organized on 23 October 2016 by the Institute of Certified Public Seminar on Breast Cancer Accountants of Cyprus (ICPAC). PwC Awareness - “Show you Care. participated by hiring a sailing boat Be Aware” Hanse (52 m) that accommodated 10 colleagues from our Limassol Office. The net We organised a seminar on Breast Cancer proceeds of the Regatta have been donated Awareness “Show you Care. Be Aware” , in to the ‘Children with Liver Diseases, George cooperation with the Cyprus Association of Psaras, Round Table’ Association. Cancer Patients and Friends (ΠΑΣΥΚΑΦ).

The seminar was delivered on 24 October 2016 by Dr Elias Kyriacopoulos (Radiologist) in Nicosia and on 26 October 2016 by Dr Simos Malas (Oncologist) in Limassol. 56 PwC Cyprus Health & Well Being

Annual Blood Donation Run for Hara Limassol Marathon 2017

Our Annual Blood donation was organised On 21 January 2017, PwC colleagues As part of our Corporate Responsibility for the 15th consecutive year on 2 gathered at the Athalassa Park and walked our people actively supported the 2017 December 2016 in support of the Nicosia and ran in memory of our colleague Limassol Marathon which took place on General Hospital blood bank. The blood Hara Phitides Granath. The participation 18 and 19 of March with participation donation took place simultaneously at our exceeded expectations supporting in this of 13.000 runners from more than 50 offices in Nicosia, Limassol and Paphos, way Hara’s moto “because life ought to be different countries. 250 colleagues, the same day. The annual Unicef bazaar made up of happy moments.” The event friends and clients joined PwC’s team and also took place in PwC Central in Nicosia, was organized in association with Dro.Me.A honoured our firm. celebrating in this way the values of giving racing and donations were made to the and volunteerism that characterise our Cyprus Anti-Cancer association. organisation.

Cyprus Symphony Orchestra

In the context of our efforts to support the local community we sponsor the Cyprus Symphony Orchestra.

The Cyprus Symphony Orchestra Foundation was founded in 2006 by decision of the Council of the Ministers, with the aims of developing and promoting the art of orchestral music, of improving musical life and education in the country, as well as the involvement of society in musical activities.

Annual Review 2017 57 Community Events

Supporting families

Supporting the “Mana” kindergarten

For the 4th consecutive year, we supported the “Mana” kindergarten. The children from the kindergarten drew Christmas cards specifically for PwC Cyprus, which were transformed in digital form and were used as Christmas e-cards to be sent to our clients and associates.

Easter Bazaar 2017

The third consecutive Easter Bazaar was held with great success at our offices in Nicosia and Limassol on 7 April and 11 April 2017 respectively. Revenue from the sales were donated to various charities such as “One Dream, One Wish”, the “Sophia Foundation for Children”, “Pancyprian Volunteering Coordinating Council”, “Pediatric Oncology Archbishop Makarios III Hospital” and to the “Foundation of Christina Apostolou”.

58 PwC Cyprus Supporting families

PwC CSC Club’s trips and “9th LESPA-FIPA Rotary Spring 48-Hour Charity Rally participation to Charity Events Charity Classic Car Rally” 1 & 2 April 2017 19 March 2017 During the first half of 2017, our firm’s The PwC Classic & Sport Cars (CSC) Club PwC was represented by 6 cars and 17 crew “Classic & Sports Cars” Club organised participated in the “9th LESPA-FIPA Rotary at the “48-Hour Charity Rally”, which was a successful ”Discovering the beauties Spring Charity Classic Car Rally” that was organised for the 15th consecutive year by of Cyprus” trip and participated in two organised in cooperation with the Nicosia “The Cyprus Federation of Classic Vehicles” charity rallies and in one charity exhibition. - Ledra Rotary Club, in an effort to raise in cooperation with the “Bank of Cyprus”, in On Sunday, 12 February 2017, our firm’s funds for projects that the “Nicosia – Ledra aid of the “Cyprus Anticancer Society”. “Classic & Sport Cars” Club organised Rotary Club” is supporting the improvement a “Driving for pleasure” trip to discover of Cyprus Society. Our firm was represented Charity Classic Cars Exhibition the beauties of Cyprus. 32 cars and 92 by 4 cars and 11 crew. The rally started from 8 April 2017 colleagues, family members, friends and Acropolis Park in Nicosia, covered a distance alumni had the pleasure of joining the trip, of 140Km and included a stop in Larnaca Our CSC Club participated with 5 classic which started from Nicosia and Limassol. and 4 special stages. The event ended at the cars in the “Charity Classic Cars Exhibition” Municipality Hall of Ayia Napa. that was organised by the University of As part of our Corporate Responsibility and Cyprus at UCY Campus (during the UCY contribution towards the wider community, Our team was once again honoured by Career Fair on 7 - 9 April 2017), in support our company actively supported three winning 2 awards: 1st place in category of the “Cyprus Anticancer Society. charity events through its “Classic & Sports M and award to PwC for the invaluable Car” (CSC) Club with a strong presence in support on the occasion of the “ROTARY the following Charity Events: Charity Classic Car Rally”.

Annual Review 2017 59 Community Events Foster Entrepreneurship

We are fostering an Junior Achievement mentors’ Junior Achievement Teams entrepreneurial culture, training event for PwC staff supporting youth entrepreneurship and startups On 24 October 2016, PwC hosted the Junior On 13 December we organised an event Achievement mentors’ training session at during which three teams of students and strengthening research & its offices in Nicosia. 26 of our colleagues that participated in last year’s Junior innovation. The aim is to provide have volunteered to become mentors in the Achievement company programme had the young people with opportunities Junior Achievement company programme opportunity to talk about their experience 2016. and demonstrate their products. to develop their ideas and will lead to the creation of an innovation- The ‘Scendles’ company team from the and knowledge-based economy. Falcon school was one of the top 10 teams and had the opportunity to present their product in the JA company competition We collaborate with leading national finals last year in May.‘Bubble academic and business bombs’, another team from the Falcon stakeholders to support such school, won the highest sales award and initiatives. Sapon, from the Polemedia Lyceum, won the branding and communications award by PwC! Among the speakers were our CEO Evgenios Evgeniou and Ms. Elena Michael, We support Junior JA programme coordinator. Achievement

PwC supports entrepreneurship as an important tool in achieving sustainable growth in Cyprus and therefore supports Junior Achievement a non- for profit organisation and the leading entrepreneurship education programme provider in Cyprus for the third consecutive year.

60 PwC Cyprus Foster Entrepreneurship

JA Press Conference: Meet the Cyprus fosters creativity and innovation, PwC Junior Achievement Young Entrepreneurs of the encouraging students to work in teams Tradefair and to transform ideas into action, thereby Future nurturing their curiosity, and imagination. Members of our staff volunteered and He added that the Ministry of Education became mentors in the Junior Achievement On Friday, 27 January 2017, Junior and Culture endorses these objectives, company programme supporting the teams Achievement (JA) Cyprus organised a press and, in the context of its wider efforts, that competed at the finals. In an effort to conference, announcing the launch of the seeks to develop a close and constructive support our teams we welcomed them at fourth consecutive year of its signature collaboration with Junior Achievement our offices, for the 2nd consecutive year on high school “Company Programme”, as well Cyprus. as the second year of the primary school 21 March 2017 at the PwC Central business suites. Our CEO, Evgenios Evgeniou, programme, “More than Money”. Our Director Michalis Stavrides, spoke congratulated the teams for their work about the shared vision of the partners and effort! This was a great opportunity to The press conference took place at the in this endeavour: “to collectively support our teams and find out more about Centre for Visual Arts and Research (CVAR). contribute to the entrepreneurial culture their products and feel the entrepreneurial In attendance were: Dr. Costas Kadis, and consciousness of the country”. He spirit of today’s teenagers! Minister of Education and Culture, British further underlined how PwC works “to High Commissioner, Mr. Matthew Kidd, bring about positive change through the and former European Commissioner for implementation of a CR programme that Education, Culture, Multilingualism and focuses on volunteerism and specialised Youth, Mrs. Androulla Vassiliou, as well as expertise, to better support the business other representatives from the public sector, sector and our young people”. business sector, academic community, and members of the press. In his brief address, Dr. Costas Kadis, Minister of Education and Culture, noted that through its programmes, Junior Achievement

Annual Review 2017 61 Community Events

Foster Entrepreneurship

Junior Achievement Company More specifically, sixteen of the Junior Achievement “Salthy” of the Year competition organisation’s members participated in the team - Coaching Session programme as team mentors, providing assistance and guidance throughout their PwC Cyprus presented the “Branding and On 29 June 2017 a Coaching session journey towards becoming the top student Communications” award at the finals of the was delivered to Junior Achievement’s company of the year. The “mentors” that “Company of the Year” competition, which “Salthy” team who won the “Branding participated voluntarily on behalf of PwC was organised on 28 April 2017 by Junior and Communications” award during the took part in an educational seminar that Achievement Cyprus. “Company of the Year” finals competition. was organised by Junior Achievement for The session was delivered by a PwC this reason, at PwC’s offices. The award was presented by our CEO professional coach. Evgenios Evgeniou, to “Salthy” team who had the opportunity to visit our offices and The students had the opportunity to visit participate in a full-day coaching session by our offices and participate in a full-day a PwC professional coach. The winner of the professional coaching session designed Junior Achievement “Company of the year” especially for them, aiming to help them was GrowGreen which also participated in learn more about themselves, grow and the competition with a mentor from PwC succeed in their goals. and represented Cyprus in the JA Europe Company of the Year Competition that took place in Brussels in July. It is worth noting that the organisation supported the competition throughout its duration, through staff’s voluntary work and the provision of substantive assistance to the participating teams.

62 PwC Cyprus Foster Entrepreneurship

Junior Achievement “Grow We support Chrysalis LEAP and its programme give us Green” - Presentation skills the opportunity to contribute to the great Chrysalis Leap efforts of Cyprus to build an economy on session solid foundations based on the strength of entrepreneurship and innovation. This is PwC cooperates with Chrysalis Leap, the Marilena Maroudia PwC’s academy tutor the only way that sustainable development delivered the presentation skills session on first Cypriot accelerator of business ideas, will be achieved”. Wednesday, 28 June 2017 to the winners for the past 3 years, with the involvement JA Company of the Year competition, the “Grow Green” team. The students had the of our staff and the utilisation of our opportunity to develop their presentation specialised knowledge. skills as well as to learn some presentation tips in order to get ready and represent Cyprus in the JA Europe Company of the PwC Supports the Chrysalis Year Competition that took place in Brussels Leap National Finals in July 2017. ‘ClimateLaunchpad’ PwC supports the Chrysalis Competition Leap ‘ClimateLaunchpad’ competition - boot camp The Chrysalis Leap ‘ClimateLaunchpad’ national final, Europe’s largest cleantech PwC Cyprus supported the 4th Chrysalis business ideas competition, took place on Leap Business Ideas Competition “Climate the 5th of September 2016 at the Hellenic Launchpad 2017”. During 2017 the two-day Bank Head Office in Nicosia. The winners boot camp on 13-14 June which was held of the national final were NanoWeld, in Governor’s beach Limassol, nine clean H2OT and Level5. These three startups tech startups, from various industry sectors, represented Cyprus at the European Final in received intensive training from Chrysalis Tallinn Estonia in October where the start- LEAP. Four colleagues from PwC and with up ‘Level5’ was one of the top 10 start-ups the support of the people from Bernhard of Europe. Our CEO Mr Evgenios Evgeniou, Schulte Shipmanagement (BSM) were there said: “We are very proud to be supporting to help the teams to formulate their idea Chrysalis LEAP and its programme for and transform it to a concrete business plan. the third consecutive year. Our goal is to actively participate as an Organization, not only through financial support, but by providing free-of-charge consulting services as well as through our voluntary activities.

Annual Review 2017 63 Community Events Foster Entrepreneurship

We support University of 2nd Innovation and and the University of Cyprus serves this Entrepreneurship Forum exact cause and we hope to lead by example Cyprus for more collaboration that will testify to how the best investment is investment The 2nd Innovation and Entrepreneurship in knowledge”. Mr Constantinou said Within the framework of our long- Forum, organised by the University of “The economy and the society need new standing collaboration with the Cyprus’ Centre for Entrepreneurship in knowledge and innovation out of the lab cooperation with PwC Cyprus took place University of Cyprus we organise an and into the market. It is internationally on 30 November and 1 December 2016. accepted that a very important parameter of annual Innovation and Entrepreneurship The two-day forum, focused on the rapidly economic development in a modern society Forum. Its objective is to promote changing 21st century venture ecosystem is the exploitation of new knowledge and and the need for the academic community entrepreneurship in Cyprus through of the inventions produced by research to continuously adapt to the new state the Centre for Entrepreneurship. The and educational organizations such of affairs. The Forum was addressed as Universities and the know-how and aim of the initiative is to educate by University of Cyprus Vice Rector Dr innovation transfer, out of the lab and into academia, scientists and Cyprus society Constantinos Constantinou and our CEO the market”. Evgenios Evgeniou, while the subject was more generally on the ideas, practices, introduced by Dr Marios Dikaiakos, Director prospects, challenges and opportunities of the Centre for Entrepreneurship. Regional Knowledge, Research relating to these sectors, by hosting and Innovation important personalities from the scene. In his speech, our CEO underlined the need to open communication channels The University of Cyprus in collaboration For this reason, each year the forum is between academia and the market to with the Cyprus Chamber of Commerce and dedicated to a different theme. promote entrepreneurship and innovation Industry and PwC Cyprus, organised the as a means of achieving sustainable «Nicosia: Regional Knowledge, Research economic growth. “A precondition to and Innovation» seminar that took place on achieving conditions of sustainable growth 4 October 2016 at the Anastasios Leventis is tapping academic research with the aim amphitheatre of the University of Cyprus. of expanding economic activity to new sectors. The collaboration between PwC The event was addressed by Professor Constantinos Christofides, Dean of the University of Cyprus, Stelios Anastasiades, President of the Cyprus Chamber of Commerce and Industry and our CEO, Evgenios Evgeniou.

64 PwC Cyprus Foster Entrepreneurship

2nd CEL Insights Conference Advisory, Stella Geropapa. Our Assurance & Advisory Partner, Vassilios Vrachimis PwC was an official partner of the ‘Insights’ presented the PwC Fintech report and its Conference organised by Cypriot Enterprise implications and participated in a panel Link (CEL). The conference’s main aim discussion together with George Koushis was to offer knowledge and experience Bank of Cyprus, Michalis Michaelides Sales which would help young entrepreneurial Consultant TSYS International and Paulo talents acquire insight on how to pursue Bilezikjian, Chief Investment Officer Family their business ideas through start-ups. We Office. support Cypriot Enterprise Link, which is a youth -led organisation aiming to connect and support the Cypriot entrepreneurial talent in order to form a local and global entrepreneurial network supported by events, meetups, workshops and projects.

The conference took place in Nicosia on 19 and 20 November 2016 and evolved around the themes of Industry Disruption, Entrepreneurial Ecosystems and Start-Up World, hosting distinguished speakers from the United Kingdom, the USA, Greece and Cyprus. We offered our knowledge and experience by participating in two speaking slots. The first presentation entitled “Cyprus: An ideal IP location” was held by our Director in Legal Services Michael Tsikouris, and our Senior Manager in Tax

Annual Review 2017 65 Community Events Foster Entrepreneurship

PwC the strategic partner of new technologies and entrepreneurship, CYBAN Company Presentations the first Fintech Hackathon in as well as giving young people the Event opportunity to showcase their talent Cyprus and skills. “The power of innovation, Within the framework of our Corporate when combined with entrepreneurship, Responsibility programme, we are the We supported the first marathon for the can significantly contribute towards our Knowledge Partner of the Cyprus Business development of applications on innovative country’s economic prosperity and growth. Angels Network (CYBAN), a non-profit technologies in the field of financial All of us at PwC support events such as the investment network, which connects transactions, which was organised by the Fintech Hackathon, which is an excellent innovating fast growth companies to equity Bank of Cyprus on 9, 10 and 11 June 2017 in initiative by the Bank of Cyprus. Through finance through their membership of Nicosia. This was the first time the Fintech their participation, all the companies that experienced angel investors. In this regard, Hackathon took place in Cyprus and the supported the event united their efforts for on Thursday, 23 February 2017, PwC hosted aim was to support entrepreneurship and a better future”. innovation. CYBAN’s Company presentation event at its offices in Nicosia. PwC contributes through It should be noted that PwC members took the provision of consulting services, part in the event through different roles. mentoring and training by supporting the Specifically, Jonathan Mulder, Director, operational process of CYBAN, by actively Fintech & Digital at PwC UK, took part in participating in the accelerator program the open side event Cyprus Fintech Forum and by supporting all capital impact held on 10 June, analysing the usefulness tenants. Through the event, companies of emerging technologies to come up ‘’Level 5’’ and ‘’Reservation Engine’’ had with solutions that will make financial the opportunity to showcase their products services more efficient and user-friendly to several investors. Further to the above, to both consumers and the business world. Stella Geropapa, Senior Manager from Michalis Stavrides, Director, Responsible our Tax Advisory department delivered for Entrepreneurship, was part of the a presentation on the new income tax evaluation committee while Nicholas incentives for investments in innovative Roussos, Senior Manager and Demos SME’s & Startups. Demou, Manager in Consulting took part as team mentors. Commenting on PwC’s participation, our Partner, In charge of Consulting Philippos Soseilos, stressed the importance the organisation gives to

66 PwC Cyprus Environmental Energy efficiency – reduction of Reduction of waste our carbon footprint stewardship In FY17 the Firm has initiated a In FY17, the renovation works at pilot study in regards to the use of Our Firm seeks excellence in our Limassol office and the Training recycled paper for printing purposes. every aspect of business and is Centre were completed. This resulted Following the results of the study, committed to minimising the in energy efficiencies through the use there is an increased possibility that environmental impacts of our of energy efficient and eco-friendly the majority of printing paper will be operations. We recognise our technologies and equipment. Just replaced with recycled, thus conserving environmental responsibilities and like at our PwC Central Office the natural resources, save energy and are highly committed to integrate implementation of the hotelling system reduce greenhouse gas emissions. environmental management best enabled the effective use of the office Nevertheless, the reduction in printing practices into our daily business space and brought energy efficiencies and the recycling of toner cartridges are still a priority. Currently, we have set operations, thus continually such as the reduction of heat and light requirements. In addition, up a waste recycling system at all our improve our environmental approved auditors have completed a buildings, separating PMD and paper performance. This commitment comprehensive Energy Audit for all our on every floor while the collection is central to our revised premises, so as to assess the current of used batteries, lamps and scrap Environmental Policy which energy usage and suggest technical metals is carried out centrally by the complies with the PwC Network’s solutions for further reducing our Operations department. policy. This policy is implemented carbon footprint. Our Operations though a three year environmental department is currently reviewing the management plan (FY16 - FY18) proposed technical solutions as a result that focusses on significantly of these audits. The total electricity reducing our energy and water reduction and respective CO2 emissions consumptions as well as managing (Scope 2 emissions calculation) were the waste streams we produce in a reduced by 15.8%. sustainable way.

Annual Review 2017 67 Community

Environmental awareness Our sustainability programme

Engaging our staff in our Energy efficiency In FY18, the Operations department will examine the proposed environmental activities is considered – reduction of our technical solutions of the Energy Audit and carry out cost-benefit a top priority in effectively managing carbon footprint analysis to decide on their implementation. our environmental impacts. In FY17 Water usage In FY18 the Operations department will embark on a water usage our revised Environmental Policy was reduction study and investigate actions for the reduction of fresh water posted on our intranet. Additionally, usage. an Environmental Awareness Training Reduction of waste In FY18 the Operations department will assess the results of the and associated tools were developed pilot study in regards to the use of recycled paper for printing and presented to our people and purposes and decide on its implementation throughout the firm. other interested parties via a variety Environmental In FY18, we will further encourage staff participation in of mechanisms such as TVs located engagement environmental activities such as tree planting/ conservation. Environmental education will be enhanced through the promotion throughout our buildings, computer of energy efficient and environmentally friendly practices while backgrounds and placemats. The at the same time colleagues will be encouraged to contribute with aim of our Environmental Campaign ideas and suggestions. was to enhance the environmental culture of our staff and highlight environmentally friendly practices that can be implemented throughout the workplace. The campaign focused on specific themes such as travelling to work, electricity usage and recycling.

68 PwC Cyprus Our brand

Our brand is strong

PwC has retained its position as the number one professional services brand, and one of the world’s top ten most powerful brands in the Brand Finance Index showing the strength of our foundations built around our people, quality and services.

The strength of our brand, the opportunities we provide for our people, the quality of our services and our focus on meeting the needs of our stakeholders are at the heart of PwC and how we measure our success. We organize events, sponsor conferences, run surveys, write publications and reports and use the power of the social media to share our knowledge and expertise. Beyond our capabilities and experience, we want PwC to be known for building great relationships with clients that help them create the value they’re looking for.

Annual Review 2017 69 Events

Christmas kids parties

PwC organised for the third consecutive year the Christmas parties for the kids of our staff members, which took place on Friday 9 and Saturday 10 of December 2016 in Nicosia and Limassol respectively. Both parties were a great success! Children had the opportunity to visit their parents’ workplace, have their face painted, ride the carousel and meet Santa Claus while they had the opportunity to enjoy a magic show.

Wealth Top Forum Israel Evgenios Antoniou, Manager, Wealth Conference Management Services addressed the audience with his presentation entitled “Managing private wealth in a changing PwC Cyprus participated with two speakers world – a view from Cyprus”. at the Wealth Top Forum Israel conference, which was organised on 26-27 October 2016 The conference was devoted to corporate at the Dan Panorama Hotel, Tel Aviv, Israel. finance, business immigration, citizenship programs and international tax planning Phryni Yiakoumetti Mina, Director in and brought together owners, CEOs of law, Consulting opened the conference with financial, trade companies, banks, auditing her presentation entitled “The Road to firms and representatives of IT and HR area Global Citizenship - The Cyprus Citizenship interested in nuances of business running Scheme for Investors”. abroad.

70 PwC Cyprus Realising the benefits of HR Technology According to the 2015 PwC Global Annual HR Technology Survey, 23% of companies used cloud Software-as-a-Service for core PwC Cyprus in collaboration with Microsoft HR, and another 26% were planning to and Exelsys organised the event titled move to the cloud within the next three “Realising the benefits of HR Technology” years. Fast forward just one year (to that was held on Thursday, 3 November 2016), and the number of companies using 2016 at PwC Central in Nicosia. Software-as-a-Service for core HR has climbed to 44%, with an additional 30% The objective of the event was to focus planning to move to the cloud in the next on the importance of the technology one to three years. shift for HR systems and the value and capabilities that are introduced by these Therefore, it can be seen that there is an transformational changes. explicit need to replace HR systems and embrace technology implementations to The usefulness and role of HR technologies bring up best practice. is of great importance for any organization wishing to leverage data and their analytic Keynote speakers at the event included capabilities in order to facilitate decision Andreas Dermosoniades, Small, Mid- making. market Solutions & Partners Manager at Microsoft Cyprus, Elena Leonidou, Director The great shift of HR applications into the in Consulting of PwC Cyprus and Kyriakos cloud continues, as Chief Human Resource Fiakkas, CEO of Exelsys. Officers pursue cost savings, seek greater IT self-sufficiency, and set their sights A welcome address was also given by on innovation and mobility. Change at Philippos Soseilos, Partner In charge of this scale requires a strategic vision and Consulting and Head of Human Capital, executive alignment at a tactical level, as PwC Cyprus. critical systems are targeted for migration to the cloud and old ways of working are disrupted.

Annual Review 2017 71 Events

‘G.R.C. in the Digital Age’ From PwC Cyprus, Tassos Procopiou, 12th Cyprus Summit by Partner in Consulting delivered a welcome The Economist On 22 November 2016, we sponsored the address and Demetra Ellina, Director in ‘G.R.C. in the Digital Age’ event which was Consulting delivered a presentation titled PwC Cyprus was yet again the golden co-organised by ISACA, (ISC)2, itSMF and ‘Adjusting the Lens on Economic Crime’. sponsor of The Economist summit for PMI. The event aimed to update businesses Iacovos Kirllapos, from the Cyber another year running, which took place and organisations on Governance, Risk and Security division of PwC UK, delivered a on 1 November 2016 at the Hilton Hotel in Compliance of today’s digital environment. presentation titled ‘ Trust in the digital age: Developing the confidence to embrace Nicosia. The main theme of the summit, which was organised in cooperation with Governance, Risk and Compliance are of technology to move your business forward’. the European Parliament Information paramount importance in today’s Digital Office in Cyprus, was the economic Age. Organisations need to understand progress of the island in recent years and and respond to challenges deriving from its successful adjustment programme. embedding technology in the way they perform their business. Addressing risk and The summit was addressed by the compliance management in an integrated President of the Republic, Mr Nicos manner allows a consistent view of Anastasiades, who after giving a short information assets and efficient application overview of the tough decisions his of resources that will enhance each government was called to make from the process and the outcome these bring to the moment it took over, assured attendees organisation, with the goal of improving the that Cyprus was entering an era of growth overall governance and performance. after years of recession. He added that the issuing of a ten-year bond with the Technology risks have become a reality lowest ever yield Cyprus had ever achieved for all kinds of businesses. Irrespective reflected how the economy was moving in of the size and type of the organisation, the right direction. The aim, he said, was you cannot ignore the possibility of such for Cyprus to become a pillar of growth risks. Organisations today need to manage for the future, while he added that solving an overwhelming amount of big data the Cyprus problem would be the most supported by technological solutions which important development reform the island forces them to revise their governance, risk could achieve. and compliance processes.

72 PwC Cyprus The summit was addressed, among others, 15th Leadership and Human Our Partner and Head of Human Capital, by Finance Minister Harris Georgiades, Resource Management Philippos Soseilos, was the chairman of the conference. To celebrate the 15th Undersecretary to the President Conference Constantinos Petrides, the new US year anniversary, Philippos Soseilos gave Ambassador to Cyprus, Kathleen Doherty, a flashback of the economic trends and The 15th Leadership and Human Resource United Nations Special Adviser on the challenges that Cyprus faced throughout Management Conference was organised by Cyprus problem Espen Barth Eide, the Chief the 15 years since the beginning of the PwC Cyprus and IMH on 8 November 2016 Executive Officer of the European Financial conference. Finally, he talked about the in Nicosia. The HR Conference is the largest Stability Facility, Klaus Regling, and importance of organisational agility through gathering of human resource professionals, European Commission Chief Spokesperson a transformation in business, people, general managers and managers from all Margaritis Schinas. Speaking through culture, as well as personal transformation, sectors of economic activity. video message, European Parliament thus, he said that the conference focuses on

President Martin Schulz called upon Cyprus why businesses need to change and how to Emmanuel Gobillot, Internationally President Nicos Anastasiades and Turkish change. Renowned Leadership expert, was the Cypriot leader Mustafa Akinci to grasp the keynote speaker at the 15th Leadership and momentum and spare no effort in reaching Human Resource Management Conference. a solution for the reunification of Cyprus. In his presentation, Mr. Gobillot focused on how some of the global trends are Speaking at the Summit, the Chief Executive fundamentally changing the levers of Officer of PwC Cyprus, Mr Evgenios leadership and organisational effectiveness Evgeniou, mentioned among other: “The (experience, knowledge, effort and power). Cyprus economy has performed better than He explained how leadership is not a expected since the climax of the crisis in single occupation, as leaders will need 2013 and after four years of recession the their followers to support them in order to economy has returned to growth, the state achieve their ultimate goal. He added that has raised funding from the markets, the the way people normally lead is the way credit ratings are improving and we are they have been lead. close to exceeding lenders supervision.” and he concluded by saying: “What the country needs now is a clear plan for sustainable growth. This is the only way to do justice to the aspirations of the people of Cyprus.”

Annual Review 2017 73 Events

3rd Structural Funds and EU Cyprus Private Banking programmes Conference and Wealth Management Conference PwC Cyprus sponsored the 3rd Structural Funds and EU programmes Conference, The Cyprus Private Banking and Wealth organised by IMH in February 2017. Management Conference took place on 8 April 2017 at the Hilton Hotel, Cyprus. The conference, provided valuable updates The conference aimed to bring together and specific practical guidance in order professionals from different sectors such to successfully obtain European funds. as banks, law and accounting firms, wealth All local companies engaged in the fields management and intermediaries for a of Technology, Tourism, Agriculture, discussion of the key issues facing the Education and Communication gained industry. real benefit from participating in this Conference, during which Cypriot business Leading sector thinkers and doers met representatives presented the approved to debate the strategies and share their programs and shared success stories. business practices aimed at meeting the challenges of implementing innovative The conference’s aimed to provide critical technological solutions, creating better advice, information and directions to client experiences, overcoming competition Cypriot companies and local business and ensuring thorough regulatory people to succeed and implement their compliance. goals. From PwC Cyprus, Tony Hadjiloucas, Panagiotis Moiras, Thalia Pangiotou Partner, in charge of Wealth Management and Margarita Kyprianou from our Services talked about Cyprus and a Consulting department represented PwC Holistic Approach to Wealth Management, at the conference and made different responding to regulatory change, the presentations in regards to the EU benefits of using Cyprus as a base and the Structural funds and competitive EU key issues faced by family offices. programmes available as well as on the advice needed for a successful SME Instrument application.

74 PwC Cyprus Are you ready for MiFID II? Speaking at the seminar, George Lambrou, Partner, Head of MiFID II Practice, The changes that the revised Markets in PwC Cyprus, said: “Cypriot investment Financial Instruments Directive (MiFID II) companies and credit institutions face and the Markets in Financial Instruments significant challenges in complying with the Regulation (MiFIR) will bring to the Cyprus enhanced MiFID II requirements and have financial services market was at the centre limited available time to adapt. Our aim, of a seminar organised by PwC Cyprus in as PwC, is to offer the necessary guidance Limassol on Wednesday, 22 March 2017. and support to allow these organisations to prepare in a timely and effective manner. Attending the seminar were representatives from Cyprus Investment Firms and Banks that provide investment services, who were briefed by the PwC MiFID II European leader from PwC Germany, and experts from PwC UK and PwC Cyprus about the main provisions of the Directive and the impact these will have on their organisations. Among the speakers were the Vice Chairman of the Cyprus Securities and Exchange Commission, Mr Andreas Andreou, and Ms Stella Livadiotou who was responsible for the transposition of MiFID II into national law for the Ministry of Finance.

Annual Review 2017 75 Financials

Firm’s net revenues for FY17

Assurance & Advisory Tax & Legal Sales Sales

4,3% 8,3% 11%

9,8% International Private Clients 14,2% Assurance 50,5% Tax Advisory Consulting Deals Indirect Tax 27,1% 74,8% Tax Reporting Strategy (TRS) Legal Firm Corporate Compliance Services - 50,5% Tax Advisory - 27,1% Assurance - 74,8% Indirect Tax - 9,8% Consulting - 14,2% Company Administration - 4,3% Deals - 11% Legal - 8,3%

Note: The Firm’s net revenues are presented according to our FY17 structure. As from 1 July 2017 our services are structured as following:

Assurance & Advisory Tax & Legal Assurance International Private Clients Advisory Tax Advisory Indirect Tax Advisory Tax Reporting & Strategy Legal Advisory 76 PwC Cyprus Our firm's net revenues were €77,8m

Assurance €23,1m Deals €3,4m

Consulting €4,4m Corporate Compliance Services €23,7m

Tax Advisory €12,7m €4,6m Indirect Tax

Company Administration €2,0m €3,9m Legal

Annual Review 2017 77 Financials

Provident Funds Total Tax Creditors

The firm maintains a Partners and Directors Contribution Creditors are paid promptly with the Provident Fund and a Personnel Provident average number of days between receiving Fund (the Funds). As at 30 June 2017 State revenues from the firm emanate and settling the invoice for FY17 to be 31 the Funds which are defined contribution from payments of direct and indirect taxes days (FY16: 31 days). schemes had a total of 730 members (30 as well as social insurance and special June 2016: 688). In FY17 the two Funds contributions. The firm’s partners and received contributions of €3,0m (FY16: staff paid €12,5m (FY16: €12,9m) in Financing €2,0m), had net assets at 31 December 2016 direct taxes, social insurance and special of €36,3m (31 December 2015: €34,8m) contributions. Further to this, the firm paid €11,5m (FY16: €11,8m) in VAT, and €3,7m The firm’s financing emanates from and net income for the year ended 31 partner’s capital, retained profits coupled December 2016 €0,5m (31 December 2015: (FY16: €3,7m) in social insurance and special contributions. with short term external financing. As in €0,9m). last year, the firm did not utilise any of the bank facilities at the end of FY17 as Operating Costs Working Capital compared to the available bank facilities of €12,6m. Total costs have increased by 3,0% with The average number of credit days staff costs recording a 3,1% increase over outstanding for trade debtors for this year the prior year. Other operating costs have was 68 (FY16: 69). We also try to reduce increased by 2,8%. the number of days between the time work is carried out and the time of billing it. The average number of days of work in progress Capital for the year was 6 days (FY16: 7 days). Expenditure

As part of the continuous effort of maintaining the best working facilities and keeping abreast with the latest state of technology, an amount of €2,5m (FY16: €2,9m) was expended mostly on leasehold improvements, computer hardware and software and office furniture.

78 PwC Cyprus PwC offices in Cyprus

Nicosia Address: PwC Central, 43 Demostheni Severi Avenue, CY-1080 Nicosia P O Box 21612, CY-1591 Nicosia, Cyprus Tel:+357-22 555 000, Fax:+357-22 555 001

Limassol Address: City House, 6 Karaiskakis Street, CY-3032 Limassol, Cyprus P O Box 53034, CY-3300 Limassol, Cyprus Tel. +357 - 25 555 000, Fax +357 - 25 555 001

Paphos Address: City House, 58 Gr Dighenis Avenue, CY-8047 Paphos, Cyprus P O Box 60479, CY-8103 Paphos, Cyprus Tel.+357 - 26 555 000, Fax +357 - 26 555 001

Annual Review 2017 79 Designed by: PricewaterhouseCoopers (Marketing & Communications Department) Printed by: Chr. Nicolaou & Sons Ltd

© 2017 PricewaterhouseCoopers Ltd. All rights reserved. PwC refers to the Cyprus member firm, and may sometimes refer to the PwC network. Each member firm is a separate legal entity. Please see www.pwc.com/structure for further details.

80 PwC Cyprus