Deloitte grows for fourth consecutive year, reporting US $32.4 billion in revenue
Increased demand from clients for all services created growth across all businesses and regions
Moscow, 16 September, 2013 – Increased demand for a broad range of client services saw Deloitte grow for the fourth consecutive year, with Deloitte member firm network revenues of US $32.4 billion for the fiscal year ending 31 May 2013.
The network experienced healthy growth across all businesses and regions – in local currency – due to strong demand for Deloitte’s capabilities and services, as clients manage complexity and uncertainty while investing in growth. The strengthening of the U.S. dollar towards the end of Deloitte’s fiscal year meant the network’s 3.5 percent growth was higher in local currency at 5.6 percent.
“Our continued growth is a true testament to Deloitte's client-centric approach. Deloitte has made strategic investments in important markets, the right businesses and talented people. As a result, Deloitte is helping many more clients navigate the changing business environment” said Barry Salzberg, Global CEO of Deloitte Touche Tohmatsu Limited (DTTL). “Despite major economic fluctuations in some regions, clients are seeking the full range of Deloitte’s services and advice as they invest in innovation and other catalysts of growth.”
“The CIS is a priority market for Deloitte and we have experienced healthy growth across our business. In the last year we have opened new offices in Yerevan, Armenia and the Russian city of Ekaterinburg to provide the expertise, knowledge and integrated solutions our clients need to meet their growth ambitions. We have also strengthened our capabilities in Supply Chain and Transfer Pricing as well as Forensic and Dispute Advisory Services in which we are market leaders” added David Owen, Deloitte CIS CEO.
Commitment to Quality and Strategic Success
Demand for Deloitte’s world-class services, uniquely tailored to clients’ evolving needs in distinct industry sectors and markets, has created successive years of growth. Deloitte is making large investments in talent to provide clients with high quality services as they navigate a challenging environment. In FY14, we will build on these distinctive strengths to help clients continue to succeed.
Unwavering Eye on Audit Quality
Deloitte has a relentless focus on quality — in our solutions, advice and people—to ensure the highest standards are maintained. Nowhere is quality more important than the independent audit – key to protecting the investing public and capital markets, and Deloitte takes pride in the important role we play. As such, we are focused in two important arenas: engaging with regulators and other stakeholders worldwide to promote reforms that improve quality for all parties; and, innovating a wide range of measures and programs to maintain and build our professional excellence. An integral component to this is the latest generation of Deloitte’s audit platform, Deloitte Audit. This comprehensive suite of capabilities delivers an insightful, customized audit approach focusing on the most important issues and risks. This helps ensure a consistent execution of high quality audits, leveraging scalable content and technology, while providing quality service to our clients worldwide.
Strategic Focus on Priority Markets and Acquisitions
In FY13, Deloitte’s continued focus on priority markets resulted in nearly 7 percent growth of these markets in local currency, thus outpacing the rest of the network. Priority markets’ accounted for nearly one-fifth of Deloitte network revenues and are expected to increase that share in the near future.
Deloitte made nearly 30 strategic acquisitions in key capability areas and geographies, marking a significant investment in the future to better serve our clients. Notably, Deloitte acquired the majority of Monitor, one of the world’s leading strategy consulting firms, positioning the Deloitte network as a worldwide leader in strategy consulting. Monitor’s talent and assets joined with Deloitte’s world class strategy capabilities to operate under the Monitor Deloitte brand. Acquisitions will remain a priority to Deloitte’s business strategy in FY14.
Member Firm Regional Growth:
- Americas led growth by regions with a growth rate of 6.3 percent in local currency, with strongest growth experienced in Chile (18.1 percent) and LATCO (14.3 percent). The United States, the largest member firm in the network, produced particularly strong growth, contributing more than 80 percent of the network’s total revenue increase. The majority of advisory and technology services grew in double digits.
- Europe, Middle East and Africa (EMEA) grew by 5.6 percent with the UK member firm experiencing solid growth of 8 percent, despite a challenging economic climate. The Middle East and Turkey firms posted strong double-digit growth, largely driven by their tax and advisory businesses. Together, the Southern and East African member firms grew by a solid 8.3 percent.
- Asia Pacific experienced growth of 3.1 percent in local currency with India, Mauritius, Southeast Asia, Korea and Japan registering solid growth, each at or above 6.5 percent.
Business Growth by Functions and Industries:
- Consulting growth in FY 13 was particularly strong across all regions, 8.7 percent in local currency. The growth signals a willingness by companies to explore and invest in business opportunities. Within Consulting, demand for Human Capital and Strategy & Operations services was strongest.
- Financial Advisory grew by a total of 6.7 percent. Market led demand resulted in strong growth for Forensic and Restructuring services, while further investments in strategic acquisitions were made across all regions.
- Audit and Enterprise Risk Services grew by an aggregate 2.9 percent. ERS experienced double digit growth in the Asia Pacific region and strong growth in EMEA and the Americas.
- Tax and Legal grew by a total of 5.6 percent, experiencing solid growth in each region and sub-function. Most notably, a majority of Asia Pacific member firms were strong, led by Japan, India, Mauritius and Korea. In FY14 the network plans to continue to drive growth through investments in technology-enabled services, globally integrated market offerings, and services that assist clients in addressing challenges stemming from rapid changes related to globalization, technology advances, and regulatory developments.
- Industries: Life Sciences and Health Care led growth among industries posting 12.9 percent growth, followed by Public Sector, which grew by 7.7 percent and Manufacturing, which grew by 5.5 percent. Energy and Resources also posted strong growth at 5.1 percent.
Deep Investment in World-Class Talent
Building on the success of the U.S. Member Firm’s investment in Deloitte University (DU), which opened in Westlake, Texas in the fall of 2011, Deloitte University EMEA was launched over the summer to offer programs uniquely tailored to the region’s needs. This continued investment in leadership and development ensures that Deloitte professionals have the most advanced training and skills to help clients navigate an evolving world. More than 50,000 Deloitte professionals from 70 countries have attended DU at the Westlake location.
“Delivering superior service to our clients is at the heart of what we do. Deloitte University EMEA is an investment in the professional development of our people, and providing an environment which creates a compelling learning environment is key to that growth,” said Roger Dassen, Global Managing Director, Clients, Services and Talent, DTTL. “DU EMEA will be a place where firms can share their diverse perspectives and experiences, and create a consistent standard of excellence that will be reflected in the work we do every day.”
Deloitte continued its focus on hiring, developing, and retaining top talent as a driver of business activity. In FY13, the network hired 51,400 professionals; its total workforce now exceeds 200,000 professionals, which marks a significant milestone for the organization.
Purposed-Based Business Model: Commitment to our Communities
Deloitte understands the fundamental and positive role business plays in shaping and creating the society of the future, and this year committed record amounts of skills and expertise to tackling challenging social issues through two new groundbreaking initiatives that reflect our purposed-based business model. Deloitte invested more than US $170 million in communities in FY13 through a combination of skills-based volunteering, pro bono work and donations and over 800,000 volunteer hours.
In April 2013, Deloitte worked with The Social Progress Imperative (SPI) along with other organizations to introduce The Social Progress Index. The Index originated with the belief that a country’s progress and competitiveness has to be measured beyond economic factors, and through extensive research and methodologies, provides the social and environmental indicators that affect a country’s performance. Deloitte is collaborating with SPI in deploying the Index worldwide by helping to establish the right networks of experts from government, civil society as well as businesses that will contribute to the discussion, drive change and work to solve some of our biggest societal issues.
In July 2013, as part of an effort to help strengthen the humanitarian sector and create innovative approaches to humanitarian preparedness and responsiveness, Deloitte launched the Humanitarian Innovation Program. The program is a collaboration with local, national, and international humanitarian leaders and leverages Deloitte’s own diverse skills and expertise to deliver a globally coordinated approach to supporting crises around the world.
“Businesses increasingly recognize that their continued success is inextricably linked with social progress. But many challenges facing society today are so complex and far-reaching that no organization can solve them alone. Governments, community organizations and business must collaborate to drive positive change,” continued Salzberg. “At Deloitte, we’re confident that our investments and contributions will continue to make a difference in 2014.”
Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee, and its network of member firms, each of which is a legally separate and independent entity. Please see www.deloitte.com/about for a detailed description of the legal structure of Deloitte Touche Tohmatsu Limited and its member firms.
Deloitte provides audit, tax, consulting, and financial advisory services to public and private clients spanning multiple industries. With a globally connected network of member firms in more than 150 countries, Deloitte brings world-class capabilities and high-quality service to clients, delivering the insights they need to address their most complex business challenges. Deloitte has in the region of 200,000 professionals, all committed to becoming the standard of excellence.