Financial Capital

shared value

Financial Capital is the pool of funds that is available to an organisation or can be generated through operations or obtained through financing, such as debt or equity.
Framework, IIRC

Shared growth

In 2014 we registered a significant increase in payments to the Government, in economic value distributed through salaries and employee benefits, and in contributions to our communities.

Financial results G4-9 l 17 | EC1 | EC4 | EC7

The various resources (or Capitals) available to our business are converted synergistically into a range of value outputs which we share with our stakeholders.

The quality of the services we deliver strengthens our reputation, client loyalty and client acquisition. This increases our hours worked, which in turn generates financial returns for our partners, salaries and benefits for our professionals, tax revenue for governments, sales revenue for our suppliers, social investments, investments in our Organisation's infrastructure and in the continuing development of our knowledge, methodologies and solutions towards more sustainable business models, which in turn are converted into benefits for our clients, cascading the effects of our services on their value chains.

Following this virtuous cycle, we want to remain a successful organisation, but we want our success to be increasingly meaningful and valuable for our stakeholders. This way, profit will always be something rightfully earned as a result of the value we create for society, and not an end in itself.

In 2014, despite the unfavourable economic environment, we continued to pursue our medium and long-term strategy, investing in professional training and development and in more efficient technologies and tools. This ensured that our Human and Intellectual capitals remained in a state of readiness for a quick and efficient response to economic recovery. We also seized the opportunities offered by healthier market segments and remained alert to new business opportunities.

These strategies enabled us to retain our leading position in a number of segments and achieve 12% growth compared with the previous financial year. As a result, we approached – but were unable to fully achieve – our targets for the period, which prevented us from paying profit-sharing to our employees.

In 2015, we will continue to work diligently to ensure that our management and investments, combined with our efficiency initiatives, enable us to achieve our business targets. Our growth projections are 14% for the Audit practice, 18% for Tax and 30% for Advisory.

Our statement of added value also shows a significant increase in payments to the Government, in economic value distributed through salaries and employee benefits, and in contributions to our communities.

Statement of added value * (R$)
2014 2013 2012
Direct economic value created 898,559,330 799,436,864 805,111,888
Revenue 898,559,330 799,436,864 805,111,888
Economic value distributed 701,794,065 650,729,691 627,281,780
Operating costs 148,951,352 149,266,106 137,498,458
Employee salaries and benefits 382,254,266 366,690,234 350,811,678
Payments to the Government 166,771,920 132,469,321 136,183,828
Community investments 3,037,371 2,304,029 2,787,817
Voluntary contributions (including pro bono) to social, environmental and cultural projects G4-EC7 2,367,371 2,020,957 2,387,453
Contributions to social, environmental and cultural projects under tax incentive laws G4-EC4 670,000 283,072 400,364
Cumulative economic value 196,765,265 148,707,173 177,830,108
This information refers to the periods January to December 2014, 2013 and 2012, and includes the activities of all independent entities operating under the KPMG brand in Brazil. Under applicable legislation, the independent entities that operate under the brand name KPMG in Brazil are exempt from publishing a statement of financial position. This does not apply to KPMG Structured Finance, which publishes its statement of financial position in mainstream newspapers in Brazil. G4-17