14908989 Deloitte Touche Tohmatsu - Company Profile

Deloitte Touche Tohmatsu

Company Profile

Publication Date: 18 May 2009

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TABLE OF CONTENTS

Company Overview..............................................................................................4

Key Facts...............................................................................................................4

Business Description...........................................................................................5

History...................................................................................................................7

Key Employees.....................................................................................................9

Key Employee Biographies................................................................................10

Major Products and Services............................................................................11

Revenue Analysis...............................................................................................13

SWOT Analysis...................................................................................................14

Top Competitors.................................................................................................20

Company View.....................................................................................................21

Locations and Subsidiaries...............................................................................23


Deloitte Touche TohmatsuTABLE OF CONTENTS

COMPANY OVERVIEW

Deloitte Touche Tohmatsu is a global provider of audit, tax, consulting and financial advisory services.The company is a Swiss Verein (association), operating through a number of member organizations.The company primarily operates in the Americas. It is headquartered in New York City, New Yorkand employs about 165,000 people.

The company recorded revenues of $27.4 billion during the financial year ended May 2008, anincrease of 18.6% over 2007.

KEY FACTS

Deloitte Touche TohmatsuHead Office1633 BroadwayNew YorkNew York 10019 6754USA

1 212 489 1600Phone

1 212 489 1687Fax

http://www.deloitte.comWeb Address

27,400.0Revenue / turnover(USD Mn)

MayFinancial Year End

165,000Employees


Deloitte Touche TohmatsuCompany Overview

BUSINESS DESCRIPTION

Deloitte Touche Tohmatsu is an organization of member firms around the world, providing a broadrange of professional services including audit, tax, consulting and financial advisory services. Thecompany operates in nearly 150 countries through 70 member firms. The company serves nationaland middle market enterprises, public institutions, privately owned companies and public sectororganizations. It provides its services to all major sectors including aviation and transport services;consumer business, energy and resources, financial services, life sciences and health care,manufacturing, public sector and technology, and media and telecommunications. The separateunits of the company are Deloitte & Touche; the US accounting arm; and Deloitte Consulting.

Deloitte's services can be categorized into four broad functional areas: audit, consulting, tax andadvisory services.

Deloitte's audit services segment offers audit technology, addresses new regulatory requirements,incorporates multiple generally accepted accounting principles (GAAP) compliance, and facilitatesthe auditor's understanding of business processes, controls, and risks. Its core competenciesencompass risk management, capital markets, control assurance, internal audit, regulatory consulting,and security and privacy services.

The consulting services of the company range from strategy formulation to technology implementation.It also offers industry and functional business performance knowledge.The company has consultingalliances with leading companies such as 3M Company, BEA Systems, HP, IBM, Oracle Corporation,SAP, Siemens Medical Solutions USA and Sun Microsystems.

The company's tax services include corporate tax, indirect tax, international assignment services,international tax, mergers and acquisitions (M&A) transaction services, research and developmentcredits, tax technology solutions and transfer pricing. The company's Global Backbone is locallydelivered, centrally coordinated global tax compliance and reporting service scalable to meet eachclient's specific needs.

The advisory services are composed of four global service lines: corporate finance advisory, disputeconsulting/forensic services, reorganization services, M&A transaction services, and valuationservices. The corporate finance advisory unit provides M&A advice to corporate clients, privateequity/venture capital firms, entrepreneurs and governments. It has 90 partners and more than 900employees. Its main services include acquisitions and disposals; capital raising-private equity orcapital markets; valuations; strategic and general corporate advice; and business modeling. Thedispute consulting/forensic services range from litigation consulting provided locally and globally toforensic investigations encompassing fraud and accounting investigations. The reorganizationservices include lender solutions, restructuring services, corporate exit management and insolvencyservices. M&A transaction services provide tax, accounting and advisory services in businesscombinations to buyers or sellers. Valuation services provide business valuation, intangible assetvaluation, tangible asset advisory services, transaction advisory, and capital allocation.


Deloitte Touche TohmatsuBusiness Description

The company's Deloitte's Value Initiative has developed tools such as Deloitte's Enterprise ValueMap (EVM), ValueAnalytics, ValuePrint and Project Portfolio Management. Deloitte's EnterpriseValue Map (EVM) identifies business activities and illustrates how each should be aligned to fourprimary value drivers: revenue growth, operating margin, asset efficiency, and expectations.ValueAnalytics enables the financial analyses of key value drivers. ValuePrint is a business casedevelopment tool.The Project Portfolio Management tool assesses individual projects' effectivenessand contribution to value.


Deloitte Touche TohmatsuBusiness Description

HISTORY

Deloitte Touche Tohmatsu was formed in 1989 following the merger of three auditing businesses;Deloitte Haskins & Sells, Touche Niven & Co, and Tohmatsu.

Deloitte Haskins & Sells was founded in 1845. In 1924, its US operations merged with Haskins &Sells.

Touche, Niven & Co was founded in 1900 in London. As the company expanded, the companyopened offices in the US and Canada.

Tohmatsu was founded in 1968 to provide audit services. The firm expanded overseas earlier andestablished a strategic alliance with Touche, Niven & Co. After its formation in 1989, the companyexpanded its auditing business in 1994 to encompass the growing industry in consulting. Thisbusiness was incorporated as Deloitte Consulting in 1997.

In the wake of the Enron/Andersen scandal, Deloitte decided to split its consulting arm, DeloitteConsulting. Deloitte Consulting announced in 2002 that it would proceed as an independent, privatelyowned firm.

In 2002, the company entered into an agreement to combine with Andersen Spain, Andersen UK,Andersen Mexico, Andersen Canada, Andersen Netherlands, Andersen Belgium, Andersen Sweden,Andersen Colombia and Andersen Brazil.

In the same year, Akintola Williams Deloitte & Touche and KPMG Nigeria signed a memorandumof understanding, agreeing to merge their practices. Akintola Williams Deloitte & Touche was bornout of a merger in 1999 of Akintola Williams & Co and Adetona Isichei & Co.

The Auditor Treuhand group joined the international Deloitte Touche Tohmatsu network in 2002 andremained an independent entity.

In 2003, the company created a global alliance with Smith Travel Research aimed at developingnew benchmarking analysis within the hotel metrics industry.

In connection with the collapse of Parmalat, lawsuits were filed in 2004 against the Italian units ofGrant Thornton International, Bank of America Corp and Deloitte Touche Tohmatsu for allegedlymisleading investors over the firm’s financial status in 2003. Prosecutors in Milan requestedindictments of the three companies for allegedly not doing enough to prevent improper conduct byemployees who dealt with Parmalat.


Deloitte Touche TohmatsuHistory

Also in 2004, Deloitte Touche Tohmatsu separated from Deloitte France and formed an independentDeloitte & Touche Juridique et Fiscal, the tax and legal arm of Deloitte in France. Deloitte memberfirms in Korea, Anjin Deloitte and Deloitte & Touche Hana merged later in the same year.

Deloitte Touche Tohmatsu (China) merged with Beijing Pan-China CPA in June 2005. In September2005, Deloitte Touche Tohmatsu China merged with Pan-China Schinda, one of the CPA firms inChina.

In June 2006, the company established Deloitte ASEAN with member firms in six countries: Singapore,Malaysia, Indonesia, Thailand, the Philippines, and Guam. In October 2006 the company has formedDeloitte Caribbean/Bermuda, a new cluster of six member firms that will strengthen their position inthe Americas to expand opportunities for growth in the region. In April 2007, the company announceda collaborative global initiative among Deloitte member firms and SAP AG to develop and deliverenterprise solutions to better serve clients in sustainable governance, risk and compliancemanagement processes. In October 2007, Thomson Corporation acquired Deloitte Tax LLP's PropertyTax Services business.

In December 2008, Deloitte opened a new branch in Hangzhou (China).


Deloitte Touche TohmatsuHistory

KEY EMPLOYEES

BoardJob TitleName

Executive BoardChief Executive Officer, GlobalJames H Quigley

Executive BoardChairmanJohn P Connolly


Deloitte Touche TohmatsuKey Employees

KEY EMPLOYEE BIOGRAPHIES

James H Quigley

Board: Executive BoardJob Title: Chief Executive Officer, GlobalSince: 2007

Mr. Quigley has been the Global Chief Executive Officer of Deloitte Touche Tohmatsu of DeloitteLLP since June 1, 2007. Previously, he served as the Chief Executive Officer of Deloitte & ToucheUSA LLP (D&T USA) since June 2003. He served as Vice Chairman of D&T USA and RegionalManaging Partner of D&T USA's Northeast practice, with responsibility for service to companies inthe metropolitan region of New York, New Jersey, and Connecticut.

John P Connolly

Board: Executive BoardJob Title: ChairmanSince: 2007

Mr. Connolly has been the Chairman of Deloitte Touche Tohmatsu since 2007. He is also GlobalManaging Partner for the Assurance Accounting & Advisory practice of the worldwide firm DeloitteTouche Tohmatsu.


Deloitte Touche TohmatsuKey Employee Biographies

MAJOR PRODUCTS AND SERVICES

Deloitte Touche Tohmatsu is a global provider of professional services to clients through member firms. The company's key products and services include the following:

Audit:

Auditing servicesGlobal offerings servicesInternational financial reporting conversion services

Tax:

Corporate taxGlobal tax complianceIndirect taxInternational assignment servicesInternational taxMergers and acquisitionsTax publicationsTax technologiesTransfer pricingResearch and development credits

Consulting and advisory:

ConsultingEnterprise applications implementationHuman resource consultingOutsourcing advisoryStrategy and operationsTechnology integration

Financial advisory servicesCorporate financeForensic servicesReorganization servicesTransaction servicesValuation services

Enterprise risk services:

Capital marketsControl assurance


Deloitte Touche TohmatsuMajor Products and Services

Corporate responsibility and sustainabilityInternal auditRegulatory consultingSecurity services

Merger and acquisition services


Deloitte Touche TohmatsuMajor Products and Services

REVENUE ANALYSIS


The company recorded revenues of $27.4 billion during the financial year ended May 2008, anincrease of 18.6% over 2007.The Americas, Deloitte Touche's largest geographical market, accountedfor 47.1% of the total revenues in the financial year 2007.

Deloitte Touche Tohmatsu generates revenues through four business divisions: audit (46.4% of thetotal revenues during the financial year 2008), consulting (23%), tax (21.9%) and advisory services(8.8%).

Revenues by Division

During the financial year 2008, the Audit division recorded revenues of $12.7 billion, an increase of14.8% over 2007.

The Consulting division recorded revenues of $6.3 billion in the financial year 2008, an increase of22.2% over 2007.

The Tax division recorded revenues of $6 billion in the financial year 2008, an increase of 20.4%over 2007.

The Advisory Services division recorded revenues of $2.4 billion in the financial year 2008, anincrease of 26.6% over 2007.

Revenues by Geography

The Americas, the company's largest geographical market, accounted for 47.1% of the total revenuesin the financial year 2008. Revenues from the Americas reached $12.9 billion in 2008, an increaseof 12.9% over 2007.

Europe, Middle East and Africa accounted for 41.2% of the total revenues in the financial year 2008.Revenues from Europe/Middle East/Africa reached $11.3 billion in 2008, an increase of 22.6% over2007.

Asia Pacific/Japan accounted for 11.7% of the total revenues in the financial year 2008. Revenuesfrom Asia Pacific/Japan reached $3.2 billion in 2008, an increase of 30.3% over 2007.


Deloitte Touche TohmatsuRevenue Analysis

SWOT ANALYSIS

Deloitte Touche Tohmatsu (Deloitte) is global provider of audit, tax, consulting and financial advisoryservices. The company provides these professional services through 70 member firms worldwide.The company has a strong market position with presence across 150 countries and clients fromvaried industries, which helps in attracting new customers. Increasing competition, however, threatensto erode the company’s market share.

WeaknessesStrengths

Weak presence in outsourcing marketWell diversified by revenue and revenuegrowth across business and region Controversies such as LAUSD and Parmalat

may tarnish the company’s public imageIncreasing contribution per member firmsustains Deloitte’s strong market positionBusiness model less susceptible tobusiness and economic cycle risk

ThreatsOpportunities

Easing regulatory restrictions could fostercompetition

Early adoption of IFRS standards could spurdemand for Deloitte’s services

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

Increasing spending on infrastructure likelyto spur demand for Deloitte’s services

Global economic slow down could affectconsulting business

Enterprise risk management services likelyto be growth driverRegulatory changes could create newopportunities

Strengths

Well diversified by revenue and revenue growth across business and region

The company's revenue is well diversified by business and region. In the financial year ending May2008 (FY 2008), each of the four businesses—audit, tax, consulting, and financial advisory—achieveddouble-digit revenue growth across the Deloitte member firms. Financial advisory, consulting, andtax all grew in aggregate by greater than 20%, while audit—the largest functional area, representing47.1% of the total—grew by 14.8%. This balanced growth is attributable to the Deloitte memberfirms multidisciplinary approach to client service.

Similarly, each region reported double-digit revenue growth, reflecting the Deloitte network’s balancedfinancial strength. Member firms in the Americas region grew by 12.9% to $12.9 billion, or 47.1% of


Deloitte Touche TohmatsuSWOT Analysis

the total. Member firms in Central and South America grew by 14%. In Asia Pacific, the fastestgrowing region, member firm revenues increased by 30.3% to $3.2 billion, or 11.7% of the total.Revenue from the Deloitte China practice grew by 28%, driven by the country’s economic growthand the Deloitte organization’s strategic interest in that country. Revenues from member firms in theEurope/Middle East/Africa region increased by 22.6% to $11.3 billion, or 41.2% of the total.

The company's revenue growth during FY2004-08 has been well diversified and shifting towardsprofitable businesses and growth regions.The company's revenue registered a compounded annualgrowth rate (CAGR) of 14% over 2004 ($16.2 billion) to reach $27.4 billion in 2008. During FY2004-08,Deloitte member firms’ four businesses—audit, consulting, tax, and financial advisory–registered aCAGR of—14.5%, 12.7%, 12.1%, and 18.9% respectively. Similarly, each of the threeregions—Americas, Europe, Middle East and Africa, and Asia Pacific/Japan—13%, 14%, and 18.9%respectively. Looking at the Deloitte member firms’ business developments, it is expected that thecompany would continue to register higher revenue growth with a positive shift benefiting from theindustry trends.

Increasing contribution per member firm sustains Deloitte’s strong market position

Deloitte is a leading provider of professional services including audit, tax, consulting and financialadvisory services. It is one of the largest professional services firms in the world and one of the BigFour auditors, along with PricewaterhouseCoopers, Ernst & Young, and KPMG. Deloitte providesservices across 140 countries in the North America, Europe, Middle East and Asia pacific. Thecompany employs about 165,000 people. It serves 80% of the Fortune 500 companies and largeprivate, local and national companies.The company has an extensive reach, serving clients worldwidethrough 68 member firm companies in FY2008 (as compared to 71 in FY2004). Despite a decreasein the number of member firms, Deloitte achieved 6th consecutive year of double–digit growth inFY2008.

Deloitte’s success is attributable to the strengthening competitive position of its member firms.Thesefirms’ strength is evident from increasing revenue per firm and also awards and recognition receivedby them severally and collectively. For instance, in 2007, the Forrester report, titled, Forrester Wave:Risk Consulting Services, Q2 2007, named Deloitte as a market leader in the risk consulting servicesmarketplace. For the sixth consecutive year, Euromoney magazine ranked Deloitte's Transfer Pricingservice line at member firms worldwide as the dominant force in global transfer pricing consultationin its 2006/7 biannual expert guide. For the eighth year, Deloitte & Touche USA LLP (Deloitte &Touche USA) was named to Fortune magazine’s 2007 list of ‘100 Best Companies to Work for’.Strong market position enables the company to attract new customers and new talent in competitivemarkets.

Business model less susceptible to business and economic cycle risk

Deloitte has a strong customer base comprising several Fortune 500 companies. The companyserves a wide range of industries including aviation and transport; consumer business; energy andresources; financial services; life sciences and health care; manufacturing; public sector; real estate,and technology, media and telecommunications industries. Deloitte’s strong customer base across



industries is evident from revenue by industry group. In FY2008, the share of Deloitte’s revenue byindustry group was – financial services ($6.14 billion), consumer business and transportation ($5.25billion), manufacturing ($3.94 billion), telecommunications, media & technology ($3.32 billion), energy& resources ($2.1 billion), public sector ($1.93 billion), life sciences ($1.79 billion), real estate ($1.5billion), and other ($1.5 billion). Strong revenue across industries reduces Deloitte’s exposure tobusiness and economic cycle risk. Moreover, it enhances Deloitte’s image as a multidisciplinaryservice provider.

Weaknesses

Weak presence in outsourcing market

Deloitte has a weak presence in the business process outsourcing (BPO) as compared to its maincompetitors such as KPMG, McKinsey which figure in the top ten global BPO advisors.Pricewaterhouse Coopers, one of the Deloitte’s major competitors across business functions, ranksin the top ten global full servicing outsourcing advisors. Similarly, several of Deloitte’s directcompetitors have a strong presence in outsourcing market. Global BPO market is expected to registeran impressive CAGR of more than 12% over the years 2008-2012, to reach $980 billion by 2012.Deloitte’s weak presence in outsourcing market doesn’t enable it to benefit from one of the fastinggrowing global services.

Controversies such as LAUSD and Parmalat may tarnish the company’s public image

In 2004, Los Angeles Unified School District (LAUSD), the largest (in terms of number of students)public school system in California, began a new payroll system project, with Deloitte Consultingengaged to customize software purchased from SAP AG. The Deloitte contract was $55,000,000with the total cost estimated to be $95,000,000. The system went live in January 2007. As of 2008,a number of problems have been experienced with some staff getting overpaid and some underpaid,or even not at all. Deloitte representatives and District officials have pointed fingers at each other.Some of the problems have been software and hardware, some have been due to the complexityof labor agreements, salary scales, work rules and job assignments within the district. As at 31December 2007 LAUSD had incurred a total of $140m in payments to Deloitte to get the systemworking properly. LAUSD project experience could negatively play on Deloitte’s bid to get similarprojects. In early 2007, Deloitte & Touche and Dianthus, the firm that operated in Italy under theDeloitte & Touche name until July 2003, committed to provide Parmalat with $149 million to settleallegations that the audit firm overlooked accounting irregularities at Parmalat prior to its collapsein 2003. While Deloitte did not admit to any wrongdoing, the fall out of Parmalat has negativeimplications for its corporate reputation. Controversies such as LAUSD and Parmalat may tarnishthe company’s public image.

Opportunities



Early adoption of IFRS standards could spur demand for Deloitte’s services

According to a November 2008 survey by Deloitte, an increasing number of company financeprofessionals would consider adopting International Financial Reporting Standards (IFRS) soonerthan the path recently outlined by the Securities and Exchange Commission in its proposed IFRSroadmap.

About 42% of more than 200 finance professionals who responded to the survey indicated theywould consider implementation of IFRS sooner than 2014, if that were permitted under the mandatedadoption date proposed by the SEC. This represents a significant increase from a similar DeloitteIFRS study performed earlier in 2008 that showed 30% of respondents would consider adoptingIFRS, if given a choice.

Among the leading factors driving companies’ interest in considering adopting IFRS sooner wassimplified financial accounting and reporting and, separately, improved financial reporting andtransparency. Both of these factors were cited by 37% of the companies surveyed that would considerearlier adoption. Companies in the survey that would consider adopting IFRS at an earlier date arepredominantly in the technology, media and telecommunications (TMT), manufacturing and financialservices industries. Fifty-seven percent of respondents from companies operating in the TMT industrywould consider adopting before 2014. For financial services, 42% percent of respondents wouldconsider early adoption. Deloitte’s strong presence in these industries allows it to benefit from thedemand for IFRS adoption.

Increasing spending on infrastructure likely to spur demand for Deloitte’s services

Central Europe faces significant, immediate infrastructure needs—from new roads and bridges topublic utilities, to name a few. Modern infrastructure is essential for economic growth, but it comeswith a large—and sometimes daunting—price tag. For assistance, many countries are turning topublic-private partnerships (PPPs). PPPs are relatively new in Central Europe, and many governmentofficials lack the specialized expertise to manage them. It’s difficult for them to set proper goals, askthe right questions, and make informed decisions that keep these projects on time and on budget.To help governments with PPPs, a team of Deloitte practitioners from several member firms developeda PPP toolkit, manual, and four-day workshop to provide public sector officials with the knowledgeand capabilities to plan, roll out, and manage PPP projects. For instance, in Romania, Deloittepractitioners have identified around 50 infrastructure projects both at the central and local levels, atdifferent stages of preparation, procurement, or implementation. Increasing spending on infrastructurelikely is likely to spur demand for Deloitte’s services such as consulting, auditing, and taxation.

Enterprise risk management services likely to be growth driver

Deloitte's enterprise risk management services have recorded strong growth in the past few years.Continued focus on internal controls and governance standards have led to doubling of revenuesfrom risk services. These services include assistance in data security, privacy needs, data analysisand interrogation services on clients demands.The company's focus on enterprise risk managementservices could help it boost revenue growth.



Regulatory changes could create new opportunities

Regulatory changes in the financial services industry such as the anti-money laundering legislationenacted in many countries continue to drive the global demand for forensic and dispute services.The company offers products such as D&Tect and AFTNet for fraud detection and analysis oflitigations. The company is well positioned to benefit from these opportunities.

Threats

Easing regulatory restrictions could foster competition

Deloitte operates in a highly competitive industry.The company faces competition from large playerssuch as Ernst & Young International, McKinsey & Company, PricewaterhouseCoopers, KPMG andBoston Consulting Group. It also competes with management consulting firms in the strategyimplementation and system integration services. Other competitors of the company include Bain &Company, BDO International B.V., BearingPoint, Mercer International, Accenture and Capgemini.

In 2008, European Union Internal Market Commissioner, Charlie McCreevy, said that restrictionson owning auditing companies could be eased to increase competition in the sector. If the changesin regulations become a law then competition could increase leading to an adverse impact on thecompany’s market share.

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

The largest accounting firms – PricewaterhouseCoopers, Deloitte Touche Tohmatsu, Ernst & YoungLLP and KPMG (collectively called Big 4) – audit the bulk of the world's biggest blue chip companies.Smaller firms include Rothstein Kass, RSM McGladrey and BDO Seidman.The collapse of US creditmarkets and subsequent stock market decline slashed the value of many investments held by publiclytraded companies. Some companies have accounted for their losses, while others have yet to marktheir positions at the lower market value. An average 84% of companies audited by one of the Big4 have written down the value of their auction rate securities in June 2008 and July 2008. Theaverage write-down was 11.5%. In stark contrast, just 36% of companies whose accounting is auditedby a non-Big 4 firm took write-downs.The average discount was just 8% for companies that did takewrite-downs. A difference of 3.5 percentage points is significant enough to affect bottom-lines ofmany companies.Those companies whose managements disapprove of Big 4’s accounting practicesespecially with regard to the valuation of auction rate securities could shift to a non-Big 4 firm.

Global economic slow down could affect consulting business

According to advance estimates released by the Bureau of Economic Analysis, real GDP in the USdecreased at an annual rate of 0.3% in the third quarter of 2008. Japan, the second biggest globaleconomy, issued third-quarter growth data that confirmed the country had fallen into recession.Eurozone GDP declined by 0.2% in both the euro area (EA15) and the EU27 during the third quarter



of 2008, compared with the previous quarter, according to flash estimates published by Eurostat,the Statistical Office of the European Communities. In the second quarter of 2008, growth rates were-0.2% in the euro area and 0.0% in the EU27. A 0.2% q/q GDP decline seen in the second and thirdquarters of 2008, means that the Eurozone is technically in recession (as defined by two successivequarters of contracting GDP). Domestic and global economic slow down could affect consultingbusiness of Big 4 firms.



TOP COMPETITORS

The following companies are the major competitors of Deloitte Touche Tohmatsu

Bain & Company, Inc.BDO International B.V.Booz Allen Hamilton Inc.CapgeminiEDS CorporationErnst & Young InternationalGrant Thornton InternationalInternational Business Machines CorporationKPMG InternationalMcKinsey & CompanyPricewaterhouseCoopersBoston Consulting Group, TheTowers PerrinWatson Wyatt WorldwideBearingPoint, Inc.Mercer International Inc.Accenture


Deloitte Touche TohmatsuTop Competitors

COMPANY VIEW

A joint statement by Chief Executive Officer Jim Quigley and Chairman John Connolly of DeloitteTouche Tohmatsu, is given below. The statement has been taken from the company's 2008 annualreport.

We are delighted to introduce the Deloitte Touche Tohmatsu 2008 annual review, Looking back,Thinking ahead. This year’s review embodies the proud but never satisfied spirit that is fundamentalto Deloitte member firms’ success around the world. At Deloitte, we look back to hold ourselvesaccountable and proudly celebrate our accomplishments.We look forward to embrace the challengesahead and achieve our vision to be the Standard of Excellence.

Financial year 2008 was outstanding for Deloitte member firms, particularly in light of the economicturbulence that defined the marketplace. In this climate of heightened financial uncertainty, Deloittemember firms achieved their sixth consecutive year of double-digit growth, with aggregate memberfirm revenue increasing 18.6% (13% growth in local currencies) to US$27.4 billion.

The Deloitte global network operates in 140 countries. Our commitment to clients and ability to teamacross borders continue to set our member firms apart in the marketplace. Deloitte member firmsbelieve that to be called global advisers, it isn’t enough to have a presence everywhere around theworld and clients in every city; what’s crucial is having a culture of collaboration that draws upon ourstrengths, regardless of location. Our culture is the strength of Deloitte.

At the core of our operations is the key to our success: Deloitte member firms’ network of 165,000professionals. The world’s most sought-after talent chooses Deloitte because of our culture and theopportunities for growth and success. They stay at Deloitte for the same reasons.

We see a future for Deloitte that is every bit as exciting and dynamic as the global marketplace inwhich our member firms operate. Early investments in emerging economies such as the BRICcountries (Brazil, Russia, India, and China) have produced outstanding results and position Deloittewell for continued success. Deloitte’s ongoing commitment to corporate responsibility will take boldnew forms as we harness the full power of our organization to make a difference in the communitieswhere we live and work.

We are making significant investments in innovation, with our best ideas coming from the bottomup, not from the top down. Innovation takes many forms at Deloitte, from helping clients adopt thelatest social networking tools to firmwide incentives that encourage innovative ways to serve clients,such as Deloitte United States’ Innovation Quest program and Deloitte Australia’s Innovation Zoneprogram. Our commitment to innovation was evident at this year’s DTT Annual World Meeting inSilicon Valley, where delegates visited 35 leading companies to discuss their innovative practices.The World Meeting also launched our 2009 Young Partner Advisory Council, which is developingimplementable recommendations to further drive innovation throughout our network of member firms.


Deloitte Touche TohmatsuCompany View

Deloitte Research’s thought leadership consistently distinguishes Deloitte in the marketplace. Eachpiece of research reflects a deep understanding of clients’ industries.Topics range from cross-industryand strategic themes, such as the significant effect each generation has on business, to emergingmarkets and industry-specific pieces, such as the annual Global Powers of Retailing.

Everything we do is guided by our deeply embedded Shared Values: integrity, commitment to eachother, outstanding value to markets and clients, and strength from cultural diversity. These are thehallmarks of our culture and the foundation for every decision we make. Deloitte takes client servicevery seriously. The decisions we make and the value delivered influence the capital markets andultimately the public trust. We see every Deloitte member firm professional as a steward for ourShared Values and an ambassador for our brand.

Excellence is our promise. Thank you for taking the time to read our story. Our goal is to help youunderstand more about the Deloitte culture—who we are, the value provided to clients, and thepassion we share for our brand.You will see that the people in our member firms are never satisfiedwith the status quo. We are always looking for opportunities to make things better—for clients,communities, and each other. We hope you enjoy this unique look inside Deloitte.


Deloitte Touche TohmatsuCompany View

LOCATIONS AND SUBSIDIARIESHead Office

Deloitte Touche Tohmatsu1633 BroadwayNew YorkNew York 10019 6754USAP:1 212 489 1600F:1 212 489 1687http://www.deloitte.com

Other Locations and Subsidiaries

Deloitte Touche Tohmatsu - CanadaDeloitte Touche Tohmatsu - South Africa1005 Skyview Drive11 Lansdowne RoadSuite 202ClaremontBurlingtonCape Town 8000Ontario L7P 5B1ZAFCAN

Deloitte Touche Tohmatsu IndiaDeloitte Touche Tohmatsu - Canada12, Dr. Annie Besant Road1005 Skyview DriveWorliSuite 202Mumbai 400 018BurlingtonINDOntario

L7P 5B1CAN

Deloitte Touche Tohmatsu CPADeloitte Touche Tohmatsu-US8/F Office Tower W22 California PlazaThe Towers Oriental Plaza350 South Grand Ave1 East Chang An AvenueSuite 200BeijingLos Angeles100738California 90071 3462CHNUSA

Deloitte Touche Tohmatsu IndiaDeloitte Touche Tohmatsu - Hong Kong12, Dr. Annie Besant Road35/F One Pacific PlaceWorli88 QueenswayMumbai 400 018Hong KongINDHKG


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14908989 Deloitte Touche Tohmatsu - Company Profile