Downturn has minor impact on Deloitte revenues

Rotterdam, 21 October 2009 – Despite the economic crisis Deloitte generated net revenues of EUR 709 million over the financial year 2008/2009, Deloitte’s annual report shows. This is a 2.4% decrease compared with last year, excluding divested business units and outsourced work. For this year Deloitte expects it can hire some 400 new staff.

“Considering the market circumstances Deloitte has generated handsome revenues. In particular our position in the public sector and with financial institutions has been reinforced. At the same time, we have continued to invest in our people and in innovation”, says Roger Dassen, chairman of Deloitte’s Executive Board.

Revenues dropped by 5.3%, of which 1.9% could be allocated to divested business units and 1.0% to a drop in outsourced work. Revenues after divested business units and outsourced work fell by 2.4%. Audit revenues fell by 1.7% due to the rising pressure on the prices. On the back of last year’s strong growth Tax revenues fell by 5.7% over the past year, one of the reasons being the drop in mergers and acquisitions. Consulting revenues rose by 0.8%. Financial Advisory Services revenues remained flat, in a market heavily tested by the drop in mergers and acquisitions. The result before taxes fell to EUR 95 million, down by 19.9%.

Talent investment
The total staff dropped by 163 to 5,489. This drop is due to a number of units being divested and the departure of some 130 excess staff in business units such as Consulting. Deloitte expects to hire around 400 new people this year, most of them newly graduated. Last month, the influx was well over 150 staff.

Deloitte puts great effort in retaining talent, an effort that includes a personal career plan fully geared to the staff’s individual wishes: Mass Career Customization. “This programme enables people to adjust their careers to their private lives”, says Roger Dassen. “Staff may want to step back for a while but they can also opt to accelerate their career”. Deloitte Touche Tohmatsu, and Deloitte Nederland in particular, recently received the Global Diversity Innovation Award for this programme, presented by the World Diversity Leadership Council.

Innovation investment
Innovation is crucial to further expand the strong market position. Over the past year, Deloitte has designed successful, integrated solutions, which include processes to pilot businesses through the recession. The ‘Navigating the downturn’ services raised well over 40 new engagements and over 10 million euros worth of fresh revenues.

Our own staff is prompted and supported to effectively turn good innovative ideas into business. Deloitte has incorporated a separate company to this end, to ensure a structural design and marketing of the innovations within Deloitte. Roger Dassen: “This approach is now bearing fruit. Deloitte successfully offers this concept to clients so they, too, can embed innovation in their organisation”.

“The industry in which Deloitte operates is traditionally slow in reacting to the economic cycles,” according to Dassen. “This alone is reason not to expect a significant economic pickup this year. Drastically reducing our overhead costs combined with improvements in the flexibility of our workforce as announced earlier, have put Deloitte in a good position to mitigate the recession’s effect on our business operations and our people.”

Socially responsible and sustainable
One of Deloitte’s pillars is sustainability. Deloitte has an ambitious sustainability programme. “In this field we want to be a frontrunner in our industry,” states Roger Dassen. “Over the past financial year we have improved our sustainability reports, folded our corporate responsibility services into our services portfolio and reduced our ecological footprint.”

Digital annual report
Just like last year, Deloitte has chosen the option to mostly publish the annual report in digital format. Deloitte regards XBRL as a major tool for further standardisation and simplification of reporting flows and has designed an extensive services package to service its clients worldwide. The annual report of Deloitte Nederland has been prepared in XBRL as an example of how information can be made accessible in this format.

More information
For all information on the annual report 2008-2009 of Deloitte: This includes a pdf-version as well.