PwC Luxembourg presents its 2010 annual results

The firm shows a good resistance to the crisis and invests in growth sectors for Luxembourg 

 The presentation of the results of PwC Luxembourg comes at the end of a year closed at June 30, 2010. As Didier Mouget, Managing Partner of the firm, highlighted, this year has been difficult for the entire economy of Luxembourg and the financial year has still suffered from the effects of the global financial crisis.

Despite this context, PwC Luxembourg, which employs about 2000 people, posted a turnover of € 233 million with revenues up 3,1% compared to last year.

Within the three lines of services of the firm, the activity is broken down as follows: Audit and Other Assurance Services (60%), Tax (21 %), Advisory (19 %). Audit recorded an increase in its turnover while Tax remained stable and Advisory slightly decreased.

Even if these results are a little better than the budget estimations made in 2009, the firm remains cautious for the future. A lot of uncertainties characterise the markets, for example: the recent crisis of the public debt or several regulatory and fiscal developments at a global level. There are signs of economic recovery but they are very small.

 “Our positive revenues reflect the investments made in the three main pillars for our business: our clients, our people and our key markets” says Didier Mouget. “For 2011, we plan a growth of 5%. To achieve this, we will strengthen our investments in research and the creation of innovative solutions in our services. We will also increase the promotion of Luxembourg abroad, through business trips in countries with high development potential such as China.”

“PwC”, a global brand

This year 2010 is marked by an important event for the whole PwC network: its new visual identity and branding.

Since last October 4, PwC has refreshed its branding in order to strengthen and modernise how it represents its worldwide network to its clients, its people and the communities in which it operates. The new branding includes a simplified logo consisting of the initials "pwc" in lower-case type. The new logo is designed to be easier to use and better suited for digital applications.

Beyond its competencies and its technical experience, the PwC network is recognised for its ability to build and develop relationships which help its clients to create value.

Close relationships and solidarity towards economic actors

This close relation has been very useful in these uncertain times. All partners and people at PwC Luxembourg have supported the authorities and the firm’s clients, especially those who faced difficult situations, for their business in Luxembourg as well as within their group. “This approach reflects the relationship we build with our clients – a relation based on trust and a long-term view” explains Didier Mouget.

To strengthen its expertise in some sectors and to meet its clients’ requirements at the best, PwC Luxembourg has also decided to co-opt ten new partners, three of them coming from other companies from the market place. Moreover, two partners have joined the Management Board of the firm: Rima Adas (Human Capital Leader) and Jean-François Kroonen (Advisory Leader). This new composition of the Management Board has been approved for the next four years by all partners of the firm.

Advisory: a reorganised activity growing again strongly

Advisory has benefited from most of the strategic efforts during this year. A new management team, lead by Jean-François Kroonen, has been appointed. Now, the Advisory Leader manages a department of 250 people, i.e the first actor of the consulting market to companies in Luxembourg. This reorganisation represents the first step in the willingness of the firm to increase its market position, in compliance with the firm strategy at the global network level. “If PwC Luxembourg is definitely known for its expertise in audit and tax, it has also a strong experience and expertise in consulting services” explains Jean-François Kroonen. “We participate, for example, to important operations in M&A with the help of some 30 professionals. Our expertise in the regulatory field and in consulting is very well recognised on the market. As an example, we have recently been awarded the prize “Best ICT Strategy Company” at the last ITOne ICT Awards.” To be able to face the important growth of these activities, the firm intends to hire new people with recognised skills.

Audit: quality is the priority

This year, the Audit activity recorded an increase in its revenue, showing the first signs of recovery in some industries such as Asset Management or, to a lesser extent, in Private Equity. The auditor profession must now integrate an important legislative change, the transposition of the 8th Directive in the Luxembourg legislation via the law passed on December 18, 2009. This transposition implements a public supervision principle for auditors, as well as a quality assurance system.

“A financial crisis means higher risks in our audit jobs” says Audit Leader Pascal Rakovsky. “In this context, our ultimate aim for all audit works is to maintain perfect quality and efficiency. This approach enables us to be confident about the deep legislative reform which means that auditors will be supervised by the CSSF.” Work infrastructures, including IT tools, play an important role amongst the means ensuring quality and efficiency in the work delivered. “In this respect, we will integrate as from Mid-2011 a new programme. This application is currently being tested at a global level. It will combine our efficiency and quality requirements and will be adapted to the current challenges that the auditors have to face” Pascal Rakovsky adds.

Tax: turn the legislative changes into opportunities

The Tax industry has been marked by the effects of the financial crisis, especially at the global activities’ level which have suffered from the economic crisis in most of the countries. On the contrary, in some countries, the fiscal pressure has risen, resulting in a higher demand for advices from our clients. “The change in the legal and fiscal environment has to incite us, as in the past, to present Luxembourg as a market place aware of these aspects and being able to turn them into opportunities for our clients” explains Tax Leader Wim Piot. The recent developments confirm the wish to maintain Luxembourg’s competitiveness in the tax industry. PwC Luxembourg thinks that transfer pricing[1], wealth management and companies’ migrations are very important opportunities in this field for the firm and for Luxembourg.

More than 300 hires planned in 2011

 In 2010, PwC Luxembourg hired more than 300 people, i.e. a net increase of 3, 4% of its headcount. “This trend in hiring should be maintained in 2011” says Human Capital Leader Rima Adas. In addition, as new industries are growing in Luxembourg, there is a need of human resources for which PwC Luxembourg conducts a selective recruitment programme of very specific profiles.

With about 2000 people, PwC Luxembourg has extended its offer of internal trainings, covering both technical skills and soft skills. Rima Adas adds “we also think that our mobility programme - internal or global - is an integrated part of this logic. We welcome no less than 90 people from other offices in the network for a more or less long period.” At the same time, more than 60 people left Luxembourg for another country. These global experiences are positive in more than one way. The people broaden their contact network while discovering new cultures and approaches regarding work methods. This has led to greater openness and respect for fellow co-workers, which reflects on the firm’s belief in equal opportunity for all. PwC Luxembourg is the Luxembourgish company with the highest proportion of women in the partnership.

A cautious and responsible management

In the management of its infrastructures, PwC was awarded for the fifth consecutive time the "Superdreckskescht" label from the Ministry for Sustainable Development and Infrastructure. It has chosen a green approach for its operational functions. The implementation of documentation managing tools and of electronic archive as well as the control of the impact on the environment of the firm fit perfectly in this approach. “We are continuing our efforts to improve the efficiency and the reliability of our tools and management methods” says Chief Operating Officer Valérie Piastrelli.

Vision of the future 

Based on a long-term vision of the economy of Luxembourg, PwC Luxembourg confirms its attractiveness of the financial place thanks to its expertise recognised at the global level. « In 2010, more than 80% of the net sales generated by the European funds have been operated by cross-border funds, in which Luxembourg is the unquestionable world leader” says Market Leader Financial Services Marc Saluzzi. “Even if competition between the countries will be harder and harder, we should do everything to maintain our status as major financial place in Europe and at a global level.” PwC Luxembourg participates actively by investing more than 4000 man/days per year abroad to promote Luxembourg and in supporting a team of 20 people in the economic and financial research.

 The challenge over the next months and even years is to position Luxembourg as a reference centre of the growth sectors such as “green economy”. A working group representing all the competencies of the firm has been dealing with this new market. In the continuity of the concept “Luxembourg: Where Else “, promotions’ actions are planned for other growth sectors such as e-commerce, intellectual property and the telecommunication industry.

Another challenge for PwC Luxembourg: increase its presence within the Greater Region, which is a tremendous source of opportunity for Luxembourg and vice-versa. “Currently, cross-border collaborations exist especially at the level of important strategic projects” explains Market Leader for the Public and Commercial sectors Luc Henzig. “The approach of collaboration between the different actors of the Greater Region is still in progress. We want to appear among the actors part of this growth phase.” As encouraging signs, co-operations within the Greater Region are currently under development for public services and health care industry.

Continuity in our commitments for 2011

At the start of a new year full of challenges, PwC Luxembourg confirms its long-term commitment towards the essential elements of Luxembourg and the Greater Region: the community, the environment, the economic sectors and the people. “Besides our commitments for the economy and the financial place, we have maintained our support to all our partners, especially in this period marked by the crisis” Didier Mouget adds. “In 2010, we supported major cultural actors in Luxembourg such as MUDAM and the Centre Culturel de Rencontre Abbaye de Neumünster; we also supported welfare activities like the “Fondation contre le Cancer” through “Relais pour la Vie” or sport events as the “Postlaaf”.”

Regular participation in deliberating on the future of the economy of the country is ensured by a representation in most of the professional associations or working groups: Haut Comité de la place financière, IRE, ABBL, ALFI, ACA, FEDIL… “In 2011, PwC Luxembourg will maintain all these efforts. We are willing to build relationships between all the actors of the country, whatever political, economical or cultural” concludes Didier Mouget. “In the world of 2011, only countries working closely together will be able to create the means necessary to respond to the challenges awaiting them.”

Editor’s notes:

1. PwC Luxembourg (www.pwc.com/lu) has about 2000 professionals from 53 different countries. PwC firms provide industry-focused assurance, tax and advisory services to enhance value for their clients. More than 161,000 people in 154 countries in firms across the PwC network share their thinking, experience and solutions to develop fresh perspectives and practical advice.
2. "PwC" is the brand under which member firms of PricewaterhouseCoopers International Limited (PwCIL) operate and provide services. Together, these firms form the PwC network. Each firm in the network is a separate legal entity and does not act as agent of PwCIL or any other member firm. PwCIL does not provide any services to clients. PwCIL is not responsible or liable for the acts or omissions of any of its member firms nor can it control the exercise of their professional judgment or bind them in any way.
3. PwC has changed its name from PricewaterhouseCoopers to PwC.  "PwC" is written in text with a capital ‘P’ and capital 'C'. The logo is represented in lower case.