Integrated Annual Report Coöperatief Deloitte U.A
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Integrated Annual Report Coöperatief Deloitte U.A. 2019/2020 Our year at a glance Report from the Executive Board Our year at a glance Report from the Supervisory Board Connect to accelarate Despite challenging circumstances in the fourth quarter, we had a solid impact - strategy 2023 performance in 2019/2020 with revenues in access of €1 billion for the first time. Most of our businesses showed continued growth, and innovation expenditures Our firm remained stable. 2019/2020 marks the last year of our Plan 2020 and saw the Deloitte Impact introduction of our Strategy 2023: Connect to Accelerate Impact. For the last time, Foundation we report on our activities and progress against the strategic pillars of Plan 2020. Our performance Please see pages 21-23 for an introduction into Strategy 2023 and page 35 for an against Plan 2020 overview of our new KPIs that will form the basis of our reporting in the coming years. Annexes Net turnover Expenses/result €968.2 m €1,015.5 m Audit & Assurance Operating expenses FY20: 860.5 m FY19: 799.6 m Tax & Legal Operating result FY20: 157.2 m FY19: 175.1 m Consulting €0 €1.1 bln Risk Advisory Financial Advisory Innovation Support / Other €0 €325 m FY20: 16.9 m FY19: 17.1 m €0 €25 m 2018/2019 2019/2020 2 Integrated Annual Report Coöperatief Deloitte U.A. 2019/2020 | Our year at a glance Our year at a glance Report from the Executive Board Report from the Supervisory Board Connect to accelarate Strategic KPIs based on target setting 2020 impact - strategy 2023 Our firm A = actual T = target Deloitte Impact Foundation ENSURE QUALITY PREMIER CAREER DESTINATION ESTABLISH LEAN OPERATIONS Our performance against Plan 2020 TOTAL CLIENT SATISFACTION # EMPLOYER OF CHOICE IN RELEVANT RANKING* TOTAL OVERHEAD COSTS / FEE EARNER FTE Annexes FY19A 7.8 | FY20A 8.0 | T2020 8.0 FY19A #8 | FY20A #8 | T2020 #10 FY19A 46.5K | FY20A 50.6K | T2020 44.2K % REGULATORY REVIEWS THAT ARE SATISFACTORY TALENT ENGAGEMENT SCORE* FY19A 100% | FY20A 89% | T2020 100% FY19A 7.5 | FY20A 7.5 | T2020 7.75 ACCELERATE GROWTH AND INNOVATION IMPACT ON SOCIETY REVENUE GROWTH IN CORPORATE ADVISORY HOURS SPENT ON SOCIETAL PROJECTS FY19A €232M | FY20A €241M | T2020 €200M FY19A 0.4% | FY20A 0.6% | T2020 1.0% AVERAGE CLIENT SERVICE CONTRIBUTION IN GROWTH AREAS FY19A 47% | FY20A 49% | T2020 45% % OF REVENUES FROM INNOVATIVE OFFERINGS COMMENTS FY19A 25% | FY20A 26% | T2020 30% Ensure quality % regulatory reviews that are satisfactory: External reviews of our Audit & Assurance practice Accelerate growth and innovation Revenue growth in Corporate Advisory: Revenue growth realised by the Advisory business of PSI and FSI (excluding Audit & Assurance) compared with 2014/2015 Average client service contribution in growth areas: Expressed as the realised Client Service Contribution percentage of Advisory businesses (excluding Audit & Assurance) % of revenues from innovative offerings: Revenue of selected innovative business units. In line with the vision from DTTL, we apply a factor 2 multiplier to calculate the effect from innovative service offerings on regular services Impact on society Hours spent on societal projects: Hours spent on societal projects as percentage of total productive hours in the reporting year. See page 130 for all definitions applied for Strategic KPIs 3 Integrated Annual Report Coöperatief Deloitte U.A. 2019/2020 | Our year at a glance Content Our year at a glance 2 Deloitte Impact Foundation 58 Report from the Executive Board 5 Our performance against Plan 2020 61 Ensure quality 62 Report from the Supervisory Board 13 Become the premier career destination 65 Connect to accelerate impact - Strategy 2023 21 Accelerate growth and innovation 71 Improve our client portfolio 73 Our firm 25 Establish lean operations 74 About Deloitte 26 Seek internationalisation 76 Roles & responsibilities 28 Our leadership in 2019/2020 30 Annexes 78 Responsible business 31 Annex 1: Financial statements 79 Ethics and integrity 38 Annex 2: Basis of reporting / Deloitte offices / 130 Dialogue with our stakeholders Risk management 41 Annex 3: About this Report / glossary 135 Our businesses and industries 46 Annex 4: Other information 138 Annex 5: Key numbers of value creation by 148 stakeholder category Because part of the photography in this integrated annual report was created prior to the Covid-19 outbreak, in some instances there is less than 1.5 meters distance between people in the photos. 4 Integrated Annual Report Coöperatief Deloitte U.A. 2019/2020 | Content Our year at a glance Report from the Executive Board Report from the Supervisory Board Connect to accelarate Report from the impact - strategy 2023 Our firm Deloitte Impact Foundation Executive Board Our performance against Plan 2020 Annexes 5 Integrated Annual Report Coöperatief Deloitte U.A. 2019/2020 | Report from the Executive Board Our year at a glance Report from the Executive Board Report from the Executive Board Report from the Supervisory Board Connect to accelarate impact - strategy 2023 Our firm 2019/2020 has been an unprecedented year for Deloitte. We strategy prior to the outbreak of Covid-19, we believe it is the right linking our activities to the realisation of the United Nations Deloitte Impact experienced a robust performance in the first three quarters one also in Covid times, albeit with some tactical changes over Sustainable Development Goals. Foundation in which we were awarded transformative engagements with time, such as our continued investments in key focus areas. The Our performance clients across all industries. The fourth quarter presented us with new strategy builds on our previous Plan 2020, which we believe Organisational structure against Plan 2020 one of the toughest challenges we have faced in our history. The has been highly successful. Our operational model is based on the concept of Connected+ global health emergency and economic downturn caused by the Annexes Autonomy, which comprises a single strategy for Deloitte North Covid-19 pandemic led us to untested ways of working with our The aim of Strategy 2023 is to elevate Deloitte into an even more and South Europe (NSE) and individual plans for each geography. clients and with each other, and has placed unique demands on purpose-driven organisation and culture with strong values, and Local leadership is empowered to develop and deliver their local our resources. We are immensely proud of the commitment and a unique ability to provide its clients with guidance and direction plans, which are aligned to the strategy and tailored to local positive engagement of our people during this difficult time, and in our rapidly changing world. By further embedding purpose in market conditions. The Connected+ Autonomy model establishes the steps we have taken to ensure their safety and the continued everything we do and improving our ability to adapt swiftly, we clear responsibilities and areas of accountability. The Dutch support for our clients. While mindful of the market uncertainties, will ensure that we continue to flourish and support our client’s Executive Board and Executive Committee are mainly responsible we believe Deloitte stands well prepared to address the various ambition on responsible business. All of this urges us to connect for its execution, combined with quality and risk management at a potential scenarios of the months and years ahead. within Deloitte, and with our clients and society. Therefore, in national level. Together with our governance and operating model, conjunction with Deloitte’s purpose, our call to action at Deloitte this ensures our compliance with applicable national laws and Leadership, purpose and aspiration in the Netherlands, is to 'Connect to Accelerate Impact'. regulations, including the Wet toezicht accountantsorganisaties At the start of the financial year we welcomed our new Chairman (Wta). of the Executive Board, Hans Honig, who was later joined by Our aspiration is to be the undisputed leader in professional our new COO, Oscar Snijders, and our new CQO, Liesbeth Mol. services in The Netherlands by 2023, in terms of market position, In our previous Integrated Annual report, we announced our In addition, we saw the appointment of several new Executive quality, and most importantly, in the minds of our clients, combination with Deloitte Dutch Caribbean (DDC). On June 1, Committee (ExCo) members. This fresh leadership team is stakeholders, and talent. To do this we will make step changes in 2019, Deloitte Holding B.V. acquired DDC. DDC is fully integrated in charged with ensuring that we continue to address our key the following key areas: the Dutch quality, risk management and financial processes and is challenges and opportunities through the clear strategy to 2023 subject to the same DTTL Member Firm Standards as Deloitte we have defined. This new strategy guides us on our journey and • Embrace purpose and quality; Netherlands. is a bridge to achieving our global purpose ‘To make an impact • Step up to undisputed leadership; that matters: for our clients, our people and society’, and fulfilling • Invest in profitable growth; Our year our global aspiration ‘To be the undisputed leader in professional • Accelerate innovation; services in the Netherlands’. • Strengthen engagement and inclusiveness Embrace purpose and quality We focus on key societal challenges that are relevant to both Strategy We can only realise our ambition if we all manage to embrace Dutch society and our clients: energy, food, health, mobility, To be able to adapt to the rapid and continuous changes in our purpose in the heart of our daily work and deliberately connect security, and work. During 2019/2020, we published reports and society and in business, our new strategy presents a clear call to to accelerate our impact on clients, people and society. We will articles in support of this focus, such as ‘What is the Future of action: Connect to accelerate impact. Although we devised this do so while helping to create a more sustainable society, directly Work?’ and a series of articles and interactive magazines on the 6 Integrated Annual Report Coöperatief Deloitte U.A.