Didier Mouget, Managing Partner at PricewaterhouseCoopers, and the new country leadership team, look back on a year of robust growth for the Luxembourg firm, which now employs almost 1,600 people.
On Thursday, 18 October 2007, Luxembourg's largest professional services firm posted increased earnings for 2007 and revenues of €158m as at 30 June 2007 (€131m in 2006), up almost 20% from last year.
This growth was felt across all strands of the company’s business services. The services relating to real estate and hedge funds performed particularly well and recorded a 72% and 88% increase, respectively. Growth was also robust in all of its clients’ lines of business, including small and medium-sized enterprises.
The size of the company also underlines its growth and enables PwC to set up dedicated teams and approaches recognised by the market.
“We have expanded this year our client base significantly and our clients have increased their activity in Luxembourg: this proves that they are confident in the future of the Luxembourg marketplace and that they trust our teams to deliver top-rate services, explains Didier Mouget. Confidence is the cornerstone of our business. Our outstanding performance for 2007 is the fruit of the dedication and efforts of each and every one of our employees.”
In the early noughties, the ENRON collapse, amongst others, shook up the accounting and auditing profession in the United States and Europe alike.
“In Luxembourg, the effects of this trend will be felt once the Eighth Directive is transposed into domestic legislation, says Thierry Blondeau, Assurance Leader. The auditing profession has regained prestige and is attracting young graduates again.”
PwC Luxembourg has almost 1,600 people
“We hired approximately 400 employees in 2007, which is a real challenge in an extremely competitive market, says Pascal Rakovsky, Deputy Managing Partner and Human Capital Leader. We increased the size of our firm by about 20% and are now the fifteenth largest employer in Luxembourg1 . Growing our personnel is instrumental in enabling us to create dedicated teams who can concentrate on the various market segments in which we operate. The innovative work environment initiatives we rolled out and the wellness programmes we implemented also helped us positively influence staff turnover rates.”
In 2007, PwC implemented a corporate health and wellness programme including training sessions, check-ups and various workshops.
Confidence in the Luxembourg economy’s growth potential
PwC also examined development opportunities for the Luxembourg economy in the years to come.
“Luxembourg has tremendous growth potential because it offers companies an ideal environment in which they can grow and develop, explains Wim Piot, Markets Leader. The financial sector is poised to seize a number of opportunities, including the creation of vehicles such as the SICAR (venture capital company) or the SIF (specialised investment fund), the improved positioning and responsibilities of Luxembourg entities within their group and the prospects offered by emerging markets (e.g. BRIC2 countries). In the non-financial sector, Luxembourg has also emerged as a preferred location for top holding companies and international groups.”
PwC Luxembourg also believes that the efforts made by the government to develop new industries (including logistics, e-business or biotechnology) or attract new businesses should pay off in a few years.
“Nevertheless, the Luxembourg corporation and individual tax system should be looked at carefully, because competition is fierce in this area and competitors include other European countries, says René Beltjens, Tax Leader. In this respect, we would welcome a joint approach, involving both the government and private sector representatives.”
Corporate social responsibility
PwC Luxembourg prides itself on helping to develop Luxembourg through its activities. PwC promotes Luxembourg in the business community and across its global network of member firms. PwC is also very involved in thought leadership initiatives conducted by the authorities. The firm is a founding member of IMS3 Luxembourg and in 2007 PwC Luxembourg enhanced its socially responsible efforts even further by focusing on several areas. First, the company promoted the following environment-friendly measures: it set up a bike service for its employees, signed an agreement with the Ville de Luxembourg to promote public transport and it selected low carbon emission cars for its employees. Second, PwC Luxembourg supported cultural events by sponsoring Luxembourg Capital of Culture 2007, the Luxembourg Museum of Modern Art (MUDAM) and the Neumünster Abbey cultural centre (CCRN). Last but not least, the firm supported and raised funds for charitable causes (Télévie, Relais pour la vie) and also implemented a wellness programme for its employees.
Strategy and outlook for 2008
PwC Luxembourg also commented on its strategic priorities for the future.
“You need to have a clear vision and carefully thought-out strategic planning processes to be able to manage a firm which went from 1,320 to almost 1,600 employees in a matter of twelve months, explains Valérie Piastrelli, Chief Operating Officer. This enables us to anticipate and react rapidly to any changes in a marketplace which relies heavily on global capital markets that recently showed how volatile they could be. Early in the year, we started to give some serious thought to how our clients and our professions would most likely change within 4 to 5 years and to what our potential and what our clients’ potential would be further down the road.”
In 2008, PwC will once again be focusing on growth, as it will seek to develop and strengthen its tax consulting and advisory services in Luxembourg and its neighbours (the Greater Region). “An increasing number of Luxembourg and cross-border companies come to us for advice, which shows that business is good in Luxembourg as a whole”, says Luc Henzig, Advisory Leader.
PwC will also focus on adding to its headcount and intends to hire an additional 480 people. “Even though a global slump may be on the cards in the wake of the subprime crisis and even though it might affect the Luxembourg economy for a short period, the gravest mistake would be to delay making the investment decisions that are needed to anticipate an improved economic climate, concludes Didier Mouget. We are definitely optimistic about the future and we look forward to robust growth in our business for the year 2008.”
Notes to editor:
1. PricewaterhouseCoopers Luxembourg (www.pwc.com/lu) has about 1600 professionals coming from more than 35 different countries. PricewaterhouseCoopers (www.pwc.com) provides industry-focused assurance, tax and advisory services to build public trust and enhance value for its clients and their stakeholders. More than 146,000 people in 150 countries across our network share their thinking, experience and solutions to develop fresh perspectives and practical advice.
2. “PricewaterhouseCoopers” refers to the network of member firms of PricewaterhouseCoopers International Limited, each of which is a separate and independent legal entity.
1 Source : Statec, Luxembourg in Figures 2007
2 BRIC : Brazil, Russia, India, China
3 IMS (Institut pour le Mouvement Sociétal), www.imslux.lu
