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To find out how we can work with you, please contact a member of our ITEP team:

Sarah Holmes EU Regulation Specialist

+ 44 20 7197 9312 sholmes3@uk.ey.com

Marc Bunch Global Trade Leader UK and Ireland

+ 44 20 7980 0298 mbunch@uk.ey.com

Mats Persson Head of International Trade, UK and Ireland

+ 44 77 9946 0691 mpersson@uk.ey.com

Mark Gregory Chief Economist UK and Ireland

+ 44 78 0288 2671 mgregory@uk.ey.com

Chris Sanger Global Head of Tax Policy

+ 44 79 5610 5723 csanger@uk.ey.com

Contacts

What comes first, opportunity or threat?EY’s Brexit Diagnostic Model — helping business navigate uncertainty

Our Brexit Diagnostic Model helps businesses implement practical steps to prepare for the UK leaving the EU minimising diversion of resources.

We can help you:

► Understand the range of potential outcomes of Brexit negotiations and the likelihood of each

► Understand how and to what extent your business, and its individual parts, could be impacted in the event of each scenario

► Quantify the weighted probability of impact to allow a prioritisation of actions

► Identify and consider actions that could mitigate the costs or realise the opportunities of Brexit

► Plan how and when actions need to be taken and when decisions need to be made, in light of unfolding events

► Break down uncertainty into more manageable parts, identify which areas could be controlled and be addressed now

How could Brexit impact your business?

Quantitatively and qualitatively assessing the impact of Brexit on your business and your shareholder value

We can tailor our diagnostic model to suit your business needs and ambitions. Areas for consideration include:

Trade and customs

► Import and export volumes ► Tariffs ► Non-tariff barriers ► Future skilled hires ► Customs process

Currency volatility and forex

► Cashflow ► Hedge policies ► Valuations

Tax

► Forex ► Tax operating model and transfer pricing ► Opportunity to restructure/move assets ► Impact of longer term tax policy

Opportunities

► Ability to consolidate domestic competitors ► Scope to capture value in from new ROW trade deals ► Potential to benefit from distressed exits

1Step Assess major operational impacts

Customers

► Customer business outlook ► Contracts ► Review volumes ► Review EC contracts ► Outstanding bids

Suppliers/Distributors

► Contractual position ► Extended supply chain ► Outsource contracts ► Distributor relationships

2Step Accounting and tax

Customers

► Asset valuations/impairment ► Disclosure and sensitivity analysis ► Going concern ► Regulatory reporting ► Hedge accounting

3Step Risk, stakeholders and opportunities

Risk and shareholders

► Risk management plan ► Early warnings ► Impact assessment ► Stakeholder communications ► Ethics ► Future lobbying

Workforce

► Employee status ► Future skilled hires ► Future unskilled hires

Product/Services

► Implication of changes in regulation on current products ► Future new product development

We are entering a period of unprecedented change to the trade, policy and economic landscape. The exact outcome of the Brexit negotiations is unlikely to be known for some time, however businesses can start to prepare now by understanding the implications.

Analysis of the likely scenarios may allow businesses to identify options and practical steps to help mitigate risks. Businesses that have prepared for the potential scenarios, decision points and likely impact on their structure will be better positioned to prosper in the post-Brexit environment.

Navigating uncertainty with certainty

Recognising the challenges businesses face today, we have established an International Trade, Economics and Policy Unit (ITEP).ITEP brings together our political, sector and technical insight into one team, to help businesses better position themselves to realise new opportunities and mitigate the potential risks of Brexit.

Political

Political disruption, including Brexit, is now consistently ranked as one of the key issues for businesses. The ITEP team has a wealth of experience: including team members who have advised at senior levels of Government; and worked within HM Treasury. ITEP can help you understand options and trade-offs inherent in potential Brexit scenarios and most likely outcomes.

Sector

The nuances of Brexit negotiations will impact sectors differently. We understand what the most significant points of negotiation will be to each sector and the potential ramification on business.

Technical

Our breadth of deep technical insight helps businesses understand how they may be impacted by the Brexit negotiations and how best to mitigate risks. Areas for consideration include: indirect tax; supply chain operations; pensions; assets valuations; contract management.

Helping businesses anticipate the impact of Brexit

A tailored solution