ANNUAL REPORT 2017 www.auren.com 1
ANNUAL REPORT 2017
Audit and assurance Tax & Legal Consulting Corporate
20 OUR VALUES 22 AUREN IN FIGURES 26 HUMAN CAPITAL Our evolution We are committed to
30 WE COMMUNICATE Publications
34 AUREN AROUND THE WOLD
Auren Internacional President
AUREN, SPECIALISATION AND TECHNOLOGY: CHALLENGES IN A GLOBAL ECONOMY
GLOBAL FIRM Technology is revolutionising today’s society, speeding up businesses’ globalisation process. The immediacy of information and the ease with which we analyse large volumes of data have a major impact on companies and this poses a challenge for us professionals who serve them. Many companies work in a global network, interacting with other countries, whether through its affiliates’ offices or destinations to sell its products or services, or even as supply sources for its processes. Today, classic business concepts are watered down. Oftentimes, the services that accompany the sold products are the value generators. Other times, activities that are normally tied to a territory are offered across several locations. Many companies deal with serious logistical problems. Professionals need in-depth knowledge of the unique features of their sectors to understand what elements are essential to strategic value creation. This is done within an increasingly global competitive framework. As a result, our clients could need professional services anywhere in the world.
Our firm is the answer. The complexity of our environment requires professional firms to have deep technical knowledge, a wide experience in various sectors, and the support of technical tools that make it easier to manage this complexity, all within a global framework. This calls for multidisciplinary teams that can efficiently and effectively align their specific knowledge to support the company’s management with trust, safety, and the capacity to support the company anywhere in the world. Our firm successfully rises to these challenges professionally and with GLO BA L FI RM 5
our guaranteed presence here and across the globe. We cover the main markets through our own offices or with the professional members of Antea, the Alliance of Independent Firms, which we spearhead and direct, with ever closer ties. We know our greatest value is closeness: physical proximity, with our presence in the main cities, and relational proximity, with our partners and directors caring for our clients’ care and needs. This inspires trust in our firm anywhere in the world. Auren is one of the 27 members of the Forum of Firms (IFAC’S Transnational Auditors Committee) Deep transformations affect the business and professional world. Globalisation, the impact of technology, increasingly strict and complex regulations, new generations with new values, concern for the company and organisations’ sustainability, among other things, are challenges that our firm overcomes from a multidisciplinary and international perspective. We offer sector-specific services directly linking our highly qualified professionals with our clients, because we know each problem is unique. We take the best from our size and international experience, without losing our signature style. This facilitates a trusting relationship with our clients based on our deep and continuous knowledge of their needs. Whatever the jurisdiction of their business, we always connect our clients with the right professionals that will solve their problems: lawyers, auditors, and tax advisors, among others, that are suitably coordinated to offer excellent service. Our methods take the best international practices as a guarantee to offer the best service. We coordinate various professionals, in teams specialised in specific sectors, to make sure they truly understand our clients’ issues in these areas. With our knowledge of an array of technological tools (ERPs, BPMs, Cybersecurity, and Business Intelligence, among others), we get the best outcomes from business processes.
We have started expanding our international presence, tightening the links with some of our partners in Antea, Alliance of Independent Firms, which will soon join our firm. We will share with them the best professional and organisational practices that were successful in the countries in which Auren is already present. Our plan includes organisational models that assist international collaboration so that our global service is further coordinated and consistent. This is our offer to deal with our clients’ challenges and opportunities. Auren. A professional service firm, with a solid footing in the countries in which it is present, with global coverage through Antea, the Independent Alliance of Firms, spearheaded and managed by Auren. Present in 51 offices in 9 countries and in over 200 cities across Antea.
Auren is one of the 27 members of the Forum of Firms (IFACâ€™S Transnational Auditors Committee)
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As a multidisciplinary, avant-garde firm, Auren is working on two fundamental strategic lines: digital transformation and sector specialisation. New digital technologies are todayâ€™s primary economic and social driving forces. They have an extraordinary impact on companies, people, and the government. New technologies are a must, but using them is not enough. It is essential to simultaneously tackle cultural transformation and a new way of living, working, and relating to one another. As a key driver to their development, this revolution severely affects companies in three fundamental ways: procedures, marketing, and business models. This disruptive situation has a considerable impact on business models, which will shift from traditional to digital. Features and processes such as digital knowledge, information management, digital communication, collaborative work and networking, continuous learning, and customer focus are fundamental to this new era of digitalisation.
Auren is fully immersed in these processes, in terms of both internal management and advising our clients on implementing this new paradigm. Internally, we are tackling process automation by using the latest software, as well as making marked improvements in the management, knowledge, and training of our professionals. We help our clients reinvent themselves and refocus their digitalisation strategy, which will lead to increasing their competitiveness and improving their yield. This is both a huge opportunity and a great challenge.
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New technologies are a must, but using them is not enough. It is essential to simultaneously tackle cultural transformation and a new way of living, working, and relating to one another.
Aurenâ€™s other strategic line is the transformation of our internal organisation, shifting from offering services to industry solutions. Our clients need added value, which is why, in a world of business that is increasingly demanding and complex, industry specialisation is essential. In a context of industry specialisation, you can count on our multidisciplinary teams working in auditing, consultancy, and legal and corporate consulting to address issues in both a global and specialised way. Auren has already launched this process in some of the countries in which we are present. We are currently positioned in the Tourism, Real Estate, Agri-food, and Industry sectors. Industry specialisation lets us anticipate market trends and share the knowledge and experience of professionals with different backgrounds, to successfully implement them within a given sector. We plan to continue adding more sectors to this vertical structure which undoubtedly represents the future of professional services.
Our clients need added value, which is why, in a world of business that is increasingly demanding and complex, industry specialisation is essential.
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Audit & assurance The world of financial auditing is changing quickly. At Auren we are in a constant state of innovation in order to offer our clients the best quality at the best price.
Our quality control system meets the International Standards on Auditing, and Auren is one of the few firms worldwide to have been admitted to the prestigious Forum Of Firms (Transnational Auditors Committee â€“ IFAC). This guarantees compliance with the strictest quality control levels, and in fact Auren has been recognised for years as a standard setter in the field of auditing. Inspiring confidence
Professionally qualified staff Our professionals have specific knowledge of the business and extensive experience in the field of auditing and assurance. We believe that investing in continuing professional development is essential in this sector.
Our audit reports ensure the corresponding interested parties (shareholders, credit institutions, customers, suppliers, employees, regulators, etc.) trust your companyâ€™s accounts.
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Tax & legal The best advice possible Our intention is to comply with the law while incurring the lowest costs possible. The difference between simple or excellent advice can mean a great deal to a company, and this is achieved through the knowledge and experience of strong multidisciplinary teams with in-depth knowledge of all regulatory matters. The Auren approach We interact with our clients to provide them with the most suitable solution, however simple or complex.
In the complex area of legal and tax regulations, being able to find the best solutions guarantees the peace of mind your company needs. 14
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We provide solutions. We do this by working closely with your company using the teams necessary to achieve excellent results.
Experienced consultants Our consultants are accustomed to working in complex environments, building on their experience in comparable companies to make the process easier, while controlling the costs of each situation.
A multidisciplinary approach We are innovative, experienced and focused on obtaining effective results. Whether you need advice on personnel, IT, organisational or structural matters, to name but a few, our consultancy services will measure up to your expectations. Our economists, engineers, psychologists, IT experts and other professionals are ready to provide you with the most suitable solution, using a multidisciplinary approach to ensure its effectiveness. S ER VI C ES 17
Corporate We are a leading firm in the field of financial advice and corporate operations. We provide comprehensive support in transactions related to the sale and purchase of companies and businesses.
We have a multidisciplinary team of professionals highly specialised in mergers and acquisitions, debt restructuring, financing operations (debt and capital), business valuations, etc. Methodology Our collaboration starts by identifying client needs, creating a strategic plan, rigorously analysing the situation of the business, studying the sector, locating opportunities for investment/ divestment and negotiating and advising on the transaction and its closure. 18
Strategic support Aware of the strategic importance of any corporate decision, we assist businesses by giving the utmost professional commitment. We ensure total confidentiality and discretion in all matters we handle. Our professionals have the expertise and experience required to provide this service.
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We base our approach on teamwork and a commitment to the solutions we deliver, because together we can create far more added value. Our aim is to work alongside companies and organisations such as yours which, like us, are committed to ethics and values, focusing on sustainable development and growth without forgoing social engagement. 20
Proximity. We work closely with our clients. Our flexibility and around-the-clock availability set us apart. We proactively commit to them.
Quality. The experience and expertise of our professionals, combined with
exacting and effective work methods, ensure that we deliver nothing but excellence.
Innovation. Auren is an innovative firm in the provision of new services, the improvement of processes, and the implementation of cutting-edge
technologies. We know that the world is constantly changing and we are
progressing along with it.
Professional ethics. Everything we do is subject to objectivity,
independent criteria and confidentiality. Our code of conduct reflects our
commitment to the honesty that forms part of our culture.
approach and expertise. We are familiar with the
increasing complexity of the business world and its global nature. Therefore, Auren has teams that are specialised in different economic sectors and types of
organisations, and we tackle problems from a multidisciplinary perspective: legal, tax, financial, organisational, human resources, etc. We provide
added value. Our customers do not â€œbuy hours of workâ€?, but
require solutions. They share with us the added value that our services generate. O U R VALUES 21
AUREN IN FIGURES
INTERNATIONAL TURNOVER AND PROFESSIONAL RANKINGS 53,8%
TURNOVER BY SERVICES AREA Audit and assurance
Tax and legal
TOTAL TURNOVER EVOLUATION
77,4 M $
79,3 M $
81,1 M $
82,7 M $
2 0 80
2 0 90
2 1 00
2 1 10
100,6 M $
2 1 20
99,7 M $
2 1 30
110,0 M $
2 1 40
106,9 M $
2 1 50
112,4 M $
113,4 M $
2 1 60
2 1 70
WORLD RANKING OF PROFESSIONAL ASSOCIATIONS ANTEA Antea, an alliance of independent firms Auren driven, holds a leading position in the rankings at regional and global level. Antea occupies the position nº16 at world-wide level.
nº13 Middle East
nº16 Latin America
Position that occupies in the ranking by turnover.
AU R EN IN FIGURES
International staff figures Staff by regions EMEA Staff:
Evolution international staff
Number of employeesยก
H U M A N CAPI TAL 27
Millennials Diversity and teamwork
In today’s organisations, several generations with different characteristics work together, and each generation needs to be managed differently. We have the Baby Boomers (1944-1960), Gen X (1960-1985), Generation Z (1985-1995), and we can’t forget Generation X (1995-2015), which is currently joining the working force and has not been studied much yet. In most organisations, Generation Y represents over 60% of the workforce, which is why we need to think about the best way to manage these people. Generation Y is characterised by valuing diversity and seeking shared working spaces in which they can develop autonomously and be involved in decision-making. They are very influenced by technology, mobile phones, and virtual spaces. Generation Y, also known as the Millennials, look for working environments with inspirational leadership, encouraging open and transparent communication, conveying a clear purpose that is in line with the company’s overall vision. A leadership that grants autonomy and career opportunities as well as creating a pleasant work atmosphere, marked by diversity and teamwork. Organisations that have been able to adapt themselves and keep up have changed their work focus, going from “who do you work 28
for” to “who do you work with”. More and more work models resemble an ecosystem that focuses on shared values and culture, transparent objectives, free flow of information and constant feedback, in which people are rewarded for their skills and abilities and not for their position. It’s no longer about a rising career path, but a decentralised one, with mobility, flexibility, and diverse work – elements which are fundamental to motivating these people. This means that organisations must focus on getting to know the people in their teams, what their abilities are, and what projects could be attractive for them, ensuring that the project is seen as growth and development within the organisation.
Generation Y is characterised by valuing diversity and seeking shared working spaces in which they can develop autonomously and be involved in decision-making. They are very influenced by technology, mobile phones, and virtual spaces.
On this point, career and development plans must be guided by a model based on experience and not so much the position, as it was traditionally (it continues to be so in many organisations). We have to think about the people who can gain experience and develop new abilities.
managed from a pleasant working environment and constantly granting autonomy and opportunities for development.
To effectively manage Millennials, a new model of engagement must be considered, one that stresses empowering leaders to be able to establish clear purposes and transparent objectives, H U M A N CAPI TAL 29
Our publications edited this year. In our websites you will find regularly publications of special interests produced by Auren around the world.
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Publications Our publications edited this year
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AUREN AROUND THE WOLD Wherever you are, we can deliver a service tailored to your needs. Operating worldwide, we understand other cultures. As a member of the Antea Alliance of Independent Firms, we have a wide network of associates so we can support you in your internationalisation wherever you need it. You can depend on us to accept any challenge.
EUROPE Andorra Austria Belgium Bulgaria Cyprus Czech Republic Denmark Finland France Germany Greece Hungary Ireland Italy Luxembourg Malta Montenegro
Norway Poland Portugal Romania Russia Serbia Spain Sweden Switzerland The Netherlands Ukraine United Kingdom AMERICA Argentina Bolivia Brazil Canada
Chile Colombia Costa Rica Dominican Republic Ecuador El Salvador Guatemala Honduras Mexico Panama Paraguay Peru Uruguay USA Venezuela
MIDDLE EAST AND AFRICA Algeria Angola Egypt Israel Jordan Mauricio Morocco Nigeria Saudi Arabia South Africa Tunisia Turkey UAE
ASIA-PACIFIC Australia China India Indonesia Japan Malaysia New Zealand Pakistan Singapore Thailand
Annual report Auren International 2017 (English version)