PDF 2 August 2019 2018/19 Annual Report
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ANNUAL REPORT 2018/19 In accordance with Clause 212‑13 of the AMF General Regulations, this Annual Report was filed with the French financial markets authority (AMF) on 07/10/19 under number D.19‑0669. It may be used to support a financial transaction if accompanied by a prospectus approved by the AMF. This report was prepared by the issuer and is binding upon its signatories. It contains the financial statements and reports of Wavestone for the period ended 3/31/19. Pursuant to Article 28 of European Commission Regulation (EC) no. 809/2004 and Clause 212‑11 of the AMF General Regulations, the following information is included for reference purposes in this Annual Report: • The Group consolidated financial statements and the Statutory Auditors’ Report on consolidated financial statements for the fiscal year ended 3/31/18, as presented on pages 174 to 205 of the Annual Report filed with the AMF on 7/13/18 under number D.18‑0681. • The corporate financial statements for Wavestone and the Statutory Auditors’ Report on these annual financial statements for the fiscal year ended 3/31/18, as presented on pages 206 to 229 of the Annual Report filed with the AMF on 7/13/18 under number D.18‑0681. • The review of the company’s financial situation and its results for the fiscal year ended 3/31/18, as presented on pages 71 to 78 of the Annual Report filed with the AMF on 7/13/18 under number D.18‑0681. • The Group consolidated financial statements and the Statutory Auditors’ Report on consolidated financial statements for the fiscal year ended 3/31/17, as presented on pages 136 to 167 of the Annual Report filed with the AMF on 7/12/17 under number D.17‑0750. • The corporate financial statements for Wavestone and the Statutory Auditors’ Report on these annual financial statements for the fiscal year ended 3/31/17, as presented on pages 168 to 185 of the Annual Report filed with the AMF on 7/12/17 under number D.17‑0750. • The review of the company’s financial situation and its results for the fiscal year ended 3/31/17, as presented on pages 55 to 61 of the Annual Report filed with the AMF on 7/12/17 under number D.17‑0750. This Annual Report is available at www.wavestone.com and from the company head office. BEHIND THE SCENES 24H OF POSITIVE WAY TABLE OF CONTENTS PROFILE p. 04 Interview with Michel Dancoisne “The positive way” lies at the heart of our identity, p. 06 Interview with Pascal Imbert p. 08 Key Figures inspiring our consultancy practices and adopted p. 09 2021 Strategic Plan by our consultants in every aspect of their lives. p. 10 Key Data for Fiscal Year 2018/19 It encompasses the shared values which we want to pass on. Our desire is for it to be embodied 9 A.M. in all our consultancy and all our decisions, every p. 12 A collaborative commercial approach p. 15 Wavestone on the Global Stage day and in respect of each of our stakeholders. p. 16 Wavestone, a leading player in an evolving market It is an identity promoted by our employees, p. 17 Client satisfaction: our watchword for sustainable growth who are our best ambassadors. 11 A.M. p. 18 Immersion in the client’s firm 24H in the life of a Wavestone consultant p. 22 Generating positive change are packed with... enthusiasm, 2 P.M. places to discover, p. 24 At the heart of the innovation ecosystem missions, p. 26 A sales force dedicated to the success of our clients personal interactions. 3 P.M. p. 28 Building the future together 24H of experience and expertise devoted p. 31 Enhancing our collective knowledge to serving our clients. 4 P.M. 24H of positive transformation. p. 32 At the heart of recruitment p. 35 Focus on internal mobility p. 36 Setting the benchmark as an employer 6 P.M. p. 38 Skills sponsorship p. 41 Living and disseminating our own values p. 43 Operating model and Governance INTERVIEW WITH -05 4 0 INTERVIEW MICHEL DANCOISNE / YOU HAVE RECENTLY ESTABLISHED AUDIT Chairman of the Supervisory Board AND COMPENSATION COMMITTEES. WHAT IS THEIR ROLE? Michel Dancoisne: They are technical bodies whose practical work feeds into the reflections and decisions of the Supervisory Board. In just particularly vigilant when it comes to the company’s a few years, Wavestone has completely changed structural and internal control issues — two aspects in size and succeeded in confirming its position and that enable us to secure and strengthen increasing in its service quality while supporting our organization in the face of an increasingly its clients’ structural transformations. complex market. That is the advantage of having But major challenges still lie ahead, particularly a dual governance structure. The operational the internationalization and structuring of excellence targeted by the Management Board is a permanently growing company. accompanied by an analysis of potential or actual The committees’ work is essential to succeeding problems and the methods adopted to resolve in these challenges. The Audit Committee, them, which are the specific focus of the work in liaison with internal control, has worked of the Supervisory Board. Our role involves on the development of the corporate book, control, but also facilitation. We all work to ensure for example, to ensure the proper dissemination the company’s success. of procedures, and on the risks matrix, to improve our identification of risks and action plans. / HOW DOES THE BOARD CONTRIBUTE It was also instrumental in the expansion of TO PROACTIVELY IMPLEMENT WAVESTONE’S the internal audit function, which is vital in any CSR POLICY? organization in order to identify problems and deal with them quickly. The committees also interact M.D.: This is an extremely important dimension directly with the company’s entities, ensuring for the company, which has made it a competitive efficient progress in areas where the Board’s argument and one of the strengths of its brand. main point of contact is the Management Board. Since our activities do not have a significant environmental impact, societal and social aspects are of particular interest to the Board. We take into / IN A YEAR OF MIXED RESULTS LIKE THE LAST ONE, account and evaluate these strategic objectives WHAT ROLE IS PLAYED BY THE BOARD AND in the same way as our financial objectives. ITS COMMITTEES? We conduct an annual review of the company’s policy and make sure that the central focus on M.D.: We maintain a constructive and ongoing people is a reality for everyone. The Compensation dialog both with the Management Board and with Committee, set up in April 2018, has also Wavestone’s various entities. This collaboration defined quantitative and qualitative criteria for ensures we have a single perspective on the state the variable portions of compensation, which of the market and the challenges to be overcome. depend particularly on achieving strictly defined The Management Board draws on the work societal objectives. of the Board to successfully achieve its roadmap. The complicated picture for the year makes us 2018/19 ANNUAL REPORT ANNUAL INTERVIEW WITH -07 06 INTERVIEW PASCAL IMBERT / FROM YOUR FIGURES, THE 2018/19 FISCAL Chief Executive Officer YEAR APPEARS TO HAVE BEEN ANOTHER EXCELLENT VINTAGE FOR WAVESTONE. Pascal Imbert: Despite a gradual decline in operational performance in the second half of the year, our results were actually good. The economic environment certainly played Revenue growth stood at 9% and our current a role. It has definitely become more uncertain operating margin was in line with the record and has begun to limit consultancy demand, level of 14.1% achieved the previous year. especially in the financial services sector, At the forefront of the year’s achievements was which is an important one for Wavestone. the increase in our sales prices, which are 2.8% Consultancy demand is linked to companies’ higher than the previous year. This illustrates investments and therefore to their confidence. the increase in our service quality, which is also Brexit and the trade war between the United evident from the type of projects won, which are States and China are weakening that confidence increasingly structural. Another area that went well and making our clients more selective and even is our progress in managing our human resources. leading them to put investments on hold. The year did not start very well, with an annual staff turnover rate of 21% in the first half of the year. / IN THIS CONTEXT, WHAT ARE YOUR PRIORITIES But we managed to bring the figure back under FOR THE 2019/20 FISCAL YEAR? control and reduce it to 18% over the full 12-month P.I.: We believe that the market will be less period. Meanwhile, our performance in terms buoyant in 2019 than in previous years and we are of recruitment was exceptional. Nearly 800 new expecting our clients to become increasingly employees joined us over the course of the year, selective. However, we remain confident in compared with an initial target of 600. Finally, we our ability to weather this more difficult period resumed our external growth policy, with the first and we are on course to meet the goals set out two acquisitions made since Wavestone was in our Wavestone 2021 strategic plan. We are launched in 2016: Xceed in the field of information therefore choosing the path of growth and will systems for the financial sector in the United continue to steadily grow our teams. We also Kingdom and, in France, Metis Consulting, a remain active in relation to external growth, recognized expert in supply chain consulting.