Experience from a top tier service provider Evolution

Experience from a top tier service provider Evolution of the corporate clients’ needs & expectations in terms of legal services Presentation by Sebastian F. D. Heinrich, E. M. B. L. -HSG 16 January 2019

A new era of challenges and trends for many in-house L&C departments 02 01 Regulatory Demands Legal Entity Migration, Ringfencing, Mi. FID II, Recovery & Resolution, LIBOR, GDPR, Uncleared Derivatives Margining etc. 03 Increases in… • Volume, Scope, and teeth of regulations • Requirement of broad, accurate, legal data • Compliance & Reporting Requirements Pw. C Flexible Legal Resources (FLR) Pw. C Business Pressures More for Less Brexit, Low Interest Rates, Increased Cost of Funding, Leverage Ratios, Non-industry competition, Depressed client flows 04 Reductions in… • Budgets • Headcount • Time October 2020 2

Reallocating work between categories yields step change efficiency Activities Exceptional events e. g. litigation; corporate transaction Traditional Model Law firms/ Big 4 Strategic work e. g. new products, new geographies New Model Law firms/ Big 4 Legal department Tactical work e. g. corporate governance; employment Lower complexity work e. g. high volume, semi-repeatable; due-diligence Pw. C Flexible Legal Resources (FLR) Pw. C Legal department New capabilities + providers October 2020 3

The law firm on a diet – Overhead comparison Traditional Law Firm Expert Compensation Pw. C Flexible Legal Resources (FLR) Pw. C Physical Overhead Alternative Legal Service Provider Pyramid Leverage October 2020 4

The focus shift of in-house departments – Re-adjustment of perspective Traditional Focus of Hiring New Focus of Delivery From jobs to be filled… …to work to be done Work (task) Pw. C Flexible Legal Resources (FLR) Pw. C Job (role, function) October 2020 5

The rise of GC production-system thinking Þ Future Target Operating Model Digital Artisanal Industrial (TOM): Digital Current Mix Target Mix of Work Artisanal Pw. C Flexible Legal Resources (FLR) Pw. C Industrial • Align resourcing models with nature of work • Multiple ways to execute (“how”) • Tech follows, not leads, process industrialization October 2020 6

The state of play in the legal industry Legal Tech New Patents Filed Globally +500% 93 ~$730 Bn ~$490 Bn ~$5 Bn 2019 Global Legal Services Market Corporate Legal Spend Estimated Global Legal Tech Spend <1% of total Corp. Legal Spend 2012 374 436 2014 2015 579 181 2013 2016 Technology is the fastest growing issue of “extreme” importance to CLO’s … but today, only 59% rank as “extremely” or “very important” Source: ACC Chief Legal Officers 2017 Survey Pw. C Flexible Legal Resources (FLR) Pw. C October 2020 7

Technology only addresses the tip of the iceberg Technology Culture Pw. C Flexible Legal Resources (FLR) Pw. C October 2020 8

Thank you for your attention! Sebastian F. D. Heinrich, E. M. B. L. -HSG Senior Manager, Client Management & Buisness Development Lead of Pw. C’s Flexlible Legal Resources Switzerland Pricewaterhouse. Coopers AG Birchstrasse 160 8050 Zurich +41 58 792 14 32 +41 76 298 23 24 sebastian. heinrich@ch. pwc. com www. pwclegal. ch / www. pwc-flr. com https: //www. linkedin. com/in/sebastian-f-d-heinrich/ Pw. C Flexible Legal Resources (FLR) Pw. C October 2020 9

Appendix I Legal. Tech

Legal Tech – Categories & players Alternative Legal Service Providers* 1 2 3 4 5 6 7 8 Traditional LPO Insourcing/ secondments Managed legal services Alternative/ virtual law firms Self-service platforms Research & information services Quantitative legal analytics Networking platforms • Temporary staffing of • Management of more • “Traditional” legal • Platforms tailored to • Customized legal • High-tech statistical • Structured to enable complex/ critical projects with extended responsibilities (in a consultancy-manner) • E. g. complex contracts projects, regulatory and compliance projects & arbitral proceedings advice, without typical overhead costs and with fixed price • Lawyers virtually connected (supported by sophisticated online platforms) legal needs & questions • Offer partly legal document generation services • Partly supplementary legal advice and Q&A • Online resolution platforms research on demand • Based on databases and libraries products • E. g. law suit statistics to predict chances • IP statistics to predict application chances • IT-based management of billing the exchange of legal information • E. g. collaboration system for in-house counsel (form of closed communities) • Outsourcing of entire functions or parts of functions • Low-cost work with complexity/ criticality • E. g. contract review, litigation support, Edisclosure/discovery, IP-related work, due diligences lawyers to cover peaks or gaps at legal departments *Other Legal. Tech Mappings you find under: http: //www. swisslegaltech. ch/mapping/ or https: //legaltech. weblaw. ch/provider/map Pw. C Flexible Legal Resources (FLR) Pw. C October 2020 11

Impact areas of Legal. Tech 01 Analytics Companies that use artificial intelligence to summarize legal documents. 02 Compliance Enables compliance professionals to understand their organisation's legal obligations. 03 Document automation Gives legal professionals an easy to use and powerful document discovery platform. 04 e-discovery Any process in where electronic data is searched and obtained for use as evidence in a civil or criminal case. 05 Legal Education These programs are used by attorneys to help prepare their clients to testify in depositions. 06 Legal Research A variety of online research companies catered to the legal industry. 07 Marketplace Startups that provide a range of online legal services to consumers and businesses. 08 Online dispute resolution Tool and interface for two parties who are entangled in a dispute or some other type of conflict. 09 Practice Management Companies here provide billing, time, and contract-management tools to law firms. Pw. C Flexible Legal Resources (FLR) Pw. C October 2020 12

Mapping the Legal. Tech Landscape • There about 800 larger legaltech companies in the world, where 40% were founded in the last 3 years. • Document automation and practice management are currently the most competitive sub-sectors. • There has been a 484% increase in the number of patents filed covering new legal services technology globally in the last 5 years. Top three countries by percentage of total patents filed are the US (38%), China (34%) and South Korea (15%). Pw. C Flexible Legal Resources (FLR) Pw. C 102 48 2 4 0 140 13 12 15 37 111 10 23 2 4 3 29 1 1 8 4 1 28 0 9 2 28 Analytics Document automation Legal Education Marketplace Compliance e-discovery Legal Research Online dispute resolution Practice Management October 2020 13

Horizons of technology disruption Time in years to peak of adoption 15 Super computer – quantum, neuromorphic Autonomous super systems Advanced robotics – cyborgs, swambots Autonomous systems – cars and drones 5 3 D/4 D printing AV/VR Biometric identity Reinforcement learning Natural language processing Social 0 Mobility Beyond (Smart ecosystems) Large scale machine learning Cybersecurity Hybrid cloud Containers Io. T Early machine learning Data analytics Big data Robotics Different (Cloud) Visualisation Networking Past (Internet) www 1995 Other (Super society) Blockchain Deep learning 3 Nano-tech now 2025 Time to exponential technology breakthrough point Source: dimensions data via @mikequindazzi Pw. C Flexible Legal Resources (FLR) Pw. C October 2020 14

Appendix II Pw. C Legal

We are the largest Legal Services Network of the World Switzerland Global* CEE Europe & UK Basel Maghreb North America Berne Caribbean Central America South America Central Africa Asia Zurich St. Gallen Zug Liechtenstein Lucerne Lausanne Middle East Sub-Saharan Francophone Africa Geneva Lugano Southern Africa > 230’ 000 professionals > 155 countries > 3’ 500 professionals > 14 offices > 3’ 600 legal consultants / 1’ 000 Flexible Legal Resources > 98 countries / 254 offices > 80 legal consultants / 100 Flexible Legal Resources > 10 offices Pw. C Flexible Legal Resources (FLR) Pw. C *Note that we currently don’t offer legal services within the US October 2020 16

Legal Advisory Offering Overview Corporate Law Employment Law • Legal support in setting-up the right corporate structure individually and group wise • You would like to have your basic employment law documents such as employment agreements, staff regulations, etc. , reviewed or re-drafted. • Advice on the legal documentation required • Support in reflecting restructurings / transactions in proper contracts / amendments • Set-up the various types of contracts taking into account the Tax and TP aspects M&A • Advising on transaction structure. • Buy-side legal due diligence. • Vendor legal due diligence. • You have questions related to employment law, such as holidays, working time, salary continuation and other topics. • Drafting of transactional documents. • You need support in connection with the dissolution of an employment contract, termination agreements or letters of reference. • Preparation for closing and posttransaction legal advice. • Support in contract negotiations. • Procurement of permits from competent authorities. Legal & Compliance • Support you regarding GDPR (EU General Data Protection Regulation). • Consulting: Check of the major risks in your company, advise on key compliance issues, etc. • Data protection: Review and assessment of your data protection risks, design and set up of an appropriate data protection framework. • Management: Development of incident reporting systems, Design of appropriate policies and guidelines, etc. • You need proactive assistance in connection with the international deployment of employees when drafting and implementing secondment agreements, or work permits. Pw. C Flexible Legal Resources (FLR) Pw. C October 2020 17

Legal Advisory Offering Overview Intellectual Property Law Immigration Law • Developing – we establish deep-rooted strategies for your IP assets. • You have general questions concerning the legal provisions on foreign nationals. • Capturing – we have the ability to structure worldwide IP protection. • You have questions related to employment law, such as holidays, working time, or salary continuation. • Maintaining – we monitor your IP rights and ensure protection is adequate to business development. • Policing – we provide a worldwide watch service that ensures the recognition of your IP rights. • Commercializing – we support the commercialisation of your IP assets by providing a full range of agreements. • You have to file applications for work and residence permits for citizens of EU/EFTA states or third-countries. • You want to correctly register short-term workers from EU/EFTA states. • You have to apply for entry or return visas or have questions on the Swiss settlement permit. International Business Reorganisation • Central oversight, expert experience and knowledge for coordinated global support. • Maximised speed of delivery and efficiency. • Consistent service and quality assurance across jurisdictions. • Optimum cost structure, budget certainty and predictability. Financial Services Regulatory & Compliance • The Pw. C Legal FS Regulatory & Compliance Services team is structured into five sub-lines of services that together support banks, insurance companies, and other Swiss and international financial intermediaries in all areas of financial market law. • The particular focus of our interdisciplinary team lies on providing advice and support throughout the process of implementing the new regulations. • You are confronted with special issues such as hardship cases, HR outsourcing or setting up new fields of business in Switzerland. Pw. C Flexible Legal Resources (FLR) Pw. C October 2020 18

Project & Portfolio Management (PPM) Offering Overview Portfolio Management Programme Mobilization Portfolio Maturity assessment PMO as a service (PMOaa. S) Digital PMO Agile Delivery Help clients deliver the best possible outcomes from their portfolio of transformational programs and projects, in alignment with corporate strategy. Set the shape and pace of a program and ensure the 12 Elements of Delivery Excellence are embedded, pointing the program in the right direction from the outset. Provide a view on the clients ability to deliver their change portfolio or individual programs through a combination of interviews, documentation and a specially designed online assessment tool. PMOaa. S is a managed service that delivers cost savings, quality improvement and transparency via a hybrid delivery model and technology enablement. Select, implement and operate digital solutions, including RPAs, realtime dashboards, advanced analytics and cloud-based project management systems. Implement Agile culture, tools and methods to help clients shorten development cycles, improve business / IT alignment, improve quality and lower cost. Pw. C Flexible Legal Resources (FLR) Pw. C October 2020 19

Forensic Offering Overview Fraud, Investigations & Regulatory Enforcement (FIRE) Forensic technology and analytics Disputes, claims & settlements Project & contract optimization Crisis management & strategic intelligence Know the facts and respond to regulatory enforcement Uncover and manage evidence & enable critical insights Successfully resolve disputes and settle claims Maximize the value of projects, assets and contracts • Investigations & Fact Finding • Regulatory Enforcement • Forensic Analytics • Digital Forensics & e. Discovery (DFe. D) • Information Governance • Cyber Incident & Threat Management • Disputes • Claims • IP Rights & Contract Optimization • License reviews • Capital Project Delivery & Asset Management Ensure an organisation is prepared for, can respond to, and recover from threats • Strategic Threat & Crisis Management • Global Intelligence • Fraud & Integrity Risk 01 What happened? Pw. C Flexible Legal Resources (FLR) Pw. C 02 Who is responsible? 03 Who knew about it? 04 Which processes and controls failed? 05 What is the damage? 06 Is there any damage to recover? October 2020 20