PricewaterhouseCoopers Luxembourg presents its 2009 results and gives its outlook for 2010

Luxembourg’s leading audit and consulting firm presents its 2009 results and gears up for the year 2010 which could be the year in which the economy pulls out of the slump.

On 22 October 2009, Didier Mouget, Managing Partner of PricewaterhouseCoopers Luxembourg, the country's leading audit and consulting services firm, together with the Management Board members, presented the firm's results as at 30 June 2009.

Despite the crisis which hit the global financial markets and which has left its mark on the global economy, PwC painted an encouraging picture for the year 2009. At 1950 employees, the firm increased its headcount by approximately eight percent and has added a significant number of clients to its portfolio. The firm’s posted revenues of €221 million*, up six percent compared to last year.

“This six percent increase may seem relatively modest when compared with the yearly high-teen figures recorded over the past four years. Evidently, this figure reflects the severe financial and economic crisis which has plagued the country for over a year. However, our teams remained motivated and our clients continued to believe in us, which resulted in an increase in our market share”, say Didier Mouget.

PwC maintained almost all of its strategic investments, including its investment in people by keeping its new hires at historically high levels. PwC Luxembourg also continued to approach foreign‑based companies likely to invest in Luxembourg and kept its focus on innovation by developing new services and solutions to meet its clients’ needs.

“The past twelve months have been characterised by an unprecedented financial and economic crisis. We are confident that the actions taken by the Luxembourg Government and the regulatory authorities have been fast and effective and have helped maintain Luxembourg’s status as a trustworthy marketplace, ensuring the country’s long‑term success. As a result, we believe that an economic recovery will take place soon and we are planning our strategic actions accordingly.” Didier Mouget adds. 

Cautious but ambitious 

It takes a thorough vision and strategic planning process to manage a firm which went from 900 to almost 2000 people over a five-year period, at a time when the whole global economy is at a crossroads. One must continue to invest while remaining cautious and adopt a careful yet flexible attitude in order to be able to react quickly.

“We were able to adapt quickly to uncertain situations which arose from a difficult economic climate because we plan our activities using strategic four‑year plans based on several scenarios", says Chief Operating Officer Valérie Piastrelli. “We also manage costs carefully and maintain our investments, which will enable us to anticipate future market developments. In addition, we maintained our corporate social responsibility actions.”

In touch with our clients, now more than ever 

PwC Luxembourg has done well across all its lines of services, i.e. in Audit, Tax and Consulting and served all of its clients’ lines of business. Again, the financial sector grew significantly and the firm also served clients in the public sector and provided its services to Luxembourg companies of all sizes in the industrial and commercial sector.

“We were able to achieve those results because we consistently strive for quality, we invest in developing groundbreaking solutions and we work hard at promoting the Luxembourg economy and the financial sector abroad” says Market Leader Marc Saluzzi. “In 2010, we will continue to focus on contributing to the economic development of the Grand Duchy and the Grande Région."

The firm will focus on high‑potential emerging markets and growth sectors including alternative management, life sciences, green technology and intellectual property. PwC ACADEMY, the well‑known training centre, will also be among the Firm's highest priorities in order to help clients develop their human potential.

Auditors help build investor confidence 

“The year 2009 has been very unusual, especially for the audit profession. The crisis resulted in numerous technical issues (asset valuation, financial risk, risk of fraud, etc). As a result, our auditors spent more time working on audits. However, the hours spent on the work were only partially reflected in our fees, to show support to all of our clients who also had to face economic difficulties" says Deputy Managing Partner and Audit Leader Pascal Rakovsky.

As regards the 8^th European Directive that should be transposed into Luxembourg legislation soon, PwC decided to get a head start and disclosed the information required under the Directive in its 2009 Annual Report.

PwC Luxembourg is the country’s eleventh largest employer 

“Hiring is still a real challenge in a market which remains very competitive for certain profiles” says Human Capital Leader Paul Neyens. “Over the past twelve months, we hired 360 people, from young graduates to experienced professionals. We have thus increased our headcount by over eight percent, which represents a real investment.” The firm has 1950 partners and staff and added to its headcount across departments and lines of service: in Audit, Consulting and Tax. The firm also made new hires in its Support Services department, including research, an area where the Luxembourg firm is a centre of excellence in Europe for financial services. 

“Our value lies first and foremost in our people” Paul Neyens adds. The quality of our services is down to them. We have maintained a relatively high level of hires 230 for the current financial year, to ensure that our firm has the necessary resources to meet our clients' needs once the uncertainty lifts.”

Attracting new companies to Luxembourg 

“Despite the current crisis, our 2009 results are more than respectable. This can mainly be attributed to the efforts and investments we made in the development of our lines of business over the past few years and our ability to attract major international investors while encouraging them to develop substance in Luxembourg in sectors such as life sciences, biotechnology or green technology" says Tax Leader Wim Piot. In addition to the financial sector, the Grand-Duchy strengthened its status as leading location for top holding companies and financing structures for international groups. “As shown in the brochure published jointly with the Chamber of Commerce: “Luxembourg: Where else?”, the Grand‑Duchy has a stable and favourable environment for companies, which is conducive to the setting up of new companies in Luxembourg, even though the global economic situation remains fragile."

The Consulting department branches out to be in line with the market’s needs

“Consulting services are usually the first hit when there is crisis, as companies cut down on their operating costs. Our positioning on high value added segments of the Consulting business, i.e. strategy and performance optimisation, enabled us to do slightly better than last year. In times of crisis, companies mainly seek high value added advice which will help them refocus their strategic investments and initiatives and optimise their cost base” Advisory Leader Luc Henzig comments.

PricewaterhouseCoopers was also involved in several major acquisitions and disposals of companies which helped maintain and preserve jobs and operations in Luxembourg. Among other assignments, the firm was appointed joint administrator to the Luxembourg branch of Icelandic Bank Kaupthing by the Luxembourg District Court after the Luxembourg branch filed for administration. The administratorship lasted for nine months.

What the future holds is uncertain but opportunities will still arise

“In the year 2010, the economic situation should start showing signs of recovery across most sectors in the financial marketplace. However, some sectors will probably continue to be affected by the crisis, as many economies across the world are still plagued by major problems. Therefore, we are cautiously optimistic and are pursing our strategy and our long‑term investments” says Didier Mouget, who adds: “some uncertainties should lift in the year 2010, specifically regarding the terms according to which information should be exchanged, as this could affect the private banking business. Several development opportunities should also come to fruition in 2010, including in the alternative management sector where Luxembourg’s reputation should translate into new operations being conducted in Luxembourg.”

Notes à l’éditeur:

1. PricewaterhouseCoopers Luxembourg (www.pwc.com/lu) employs 1950 professionals from 53 different countries. PricewaterhouseCoopers (www.pwc.com) provides industry-focused audit, tax and consulting services to build public trust and enhance value for its clients and their stakeholders. PricewaterhouseCoopers (www.pwc.com) provides industry-focused assurance, tax and advisory services to build public trust and enhance value for our clients and their stakeholders.  More than 163,000 people in 151 countries across our network share their thinking, experience and solutions to develop fresh perspectives and practical advice. More than 155,000 people in 153 countries across our network share their thinking, experience and solutions to develop innovative perspectives and practical advice. 

2. “PricewaterhouseCoopers” refers to the group of independent firms that are members of PricewaterhouseCoopers International network, each of which is a separate and independent legal entity.

3. The “Luxembourg: Where else?" brochure may be downloaded from the www.pwc.com/lu, www.setupineurope.com and www.cc.lu websites. It can also be requested from pwc.publications@lu.pwc.com.