LONDON, Sept. 10, 2020
- Balanced growth across EY despite a more challenging business environment due to COVID-19
- EY NextWave strategy brings greater focus on long-term value creation with plans for investments of US$1.5b in EY people, technology and audits in FY21
- Two redefined service lines: Strategy and Transactions, which includes the fifth-largest strategy organization by revenue globally through EY-Parthenon, and Consulting, which focuses on transforming businesses
- Investment in diverse and skilled leadership as across EY, 600 people are promoted to partner and 462 additional partners join from outside EY
- Continued people development through virtual programs including credentials known as EY Badges and via launch of first free, fully-credited corporate MBA – EY Tech MBA by Hult International Business School
- 18 acquisitions across cyber security, strategy, change management, design and technology, including SAP digital transformation
- In Q4, introduced 38 new COVID-19-related solutions with 11 alliance organizations to support EY clients, government and communities
LONDON, Sept. 10, 2020 /PRNewswire/ -- EY today announces combined global revenues of US$37.2b for the financial year ended June 2020, an increase of 4.1% in local currency despite the global economic impact caused by COVID-19. Over the past seven years, the global EY organization (EY) has recorded strong 7.7% compound annual growth.
Carmine Di Sibio, EY Global Chairman and CEO, says:
"The COVID-19 pandemic has affected people, businesses and communities everywhere, creating new challenges for us all. During this difficult period, our number one priority has been the safety of EY people, clients and communities.
"It is the determination and focus of EY people that enabled us to support EY clients around the world during this unprecedented time. In a matter of weeks, we had nearly 300,000 EY people working remotely and supporting EY clients' business continuity and resilience needs. EY people also created a wide range of pandemic-related solutions for clients and provided pro-bono support to communities and governments. These efforts illustrate the strength of our culture, founded on our purpose to build a better working world.
"While the last few months have been challenging for everyone, we have remained focused on our NextWave strategy, which we initiated last October and affirms our ambition to build long-term value for all stakeholders. Now more than ever, we need to be absolutely focused on investing in EY people and services to help EY clients transform, innovate and address their most pressing issues for the long-term."
The EY NextWave strategy and ambition: building long-term value for all stakeholders
Launched in FY20, the NextWave strategy expands on the EY purpose of building a better working world and has a clear ambition to create long-term value for all stakeholders. The elements of the NextWave strategy will be measured using the EY long-term value framework, which is built on four value dimensions: human/people value; consumer/client value; social value; and financial value.
EY continues to play an active role in supporting the wider move to long-term value creation. In FY20, it contributed to a collaborative effort convened by The World Economic Forum's International Business Council (IBC), which brought together 120 CEOs of the world's largest companies, to agree on a core set of metrics to help standardize disclosures around Environmental, Social and Governance factors and long-term value creation. The proposed disclosures consider a company's impact along four pillars aligned with the UN's Sustainable Development Goals (UN SDGs): planet, people, prosperity and principles of governance. Those core metrics are available in the Global Review 2020, published today.
As part of the NextWave strategy and to meet increasing C-suite strategy, transformation and technology needs, EY has introduced two redefined service lines on 1 July.
To accelerate the digital transformation of the global organization, for FY21 there are plans to invest US$1.5b in audit quality, technology solutions, people and the wider EY ecosystem of strategic alliances. The investments will see further build out of the client technology platform which underpins EY services and enables the global organization to drive client service innovation and deliver projects across EY at scale and speed. This proprietary platform has 1m client users in addition to nearly 300,000 EY people in over 150 countries, with upwards of 500m business transactions processed per day. EY is already a top global user of cloud technology, with 80% of EY business-critical platforms hosted on cloud technology across 160 countries. The investments will prioritize four key areas:
Andy Baldwin, EY Global Managing Partner – Client Service, says:
"At a time when businesses are being challenged to evolve, we are focused on providing innovative, high-quality services and solutions to help EY clients reframe their future. The large-scale investments we will make in FY21 will ultimately help EY clients succeed in this complex environment and bring further trust and confidence to the capital markets through high-quality audits."
Growth across all services lines, geographies, key industries and markets in FY20
In FY20, all EY service lines delivered growth: Assurance grew 3.1%; Advisory 4.9%; Tax 5.1% and Transaction Advisory Services 2.8%, all in local currency. Revenue also increased across all three EY geographic areas: the Americas 3.4%; Europe, Middle East, India and Africa (EMEIA) 3.4%; and Asia-Pacific 8.2%.
Among the top five markets, Japan led with double-digit growth of 10.8% and Greater China delivered another strong year. Elsewhere, Australia, Brazil, Korea and Norway delivered strong growth. Emerging markets also continued their strong growth trend and are up by 6%. EY also recorded strong growth across the Technology, Consumer, Private Equity and Wealth & Asset Management sectors, driven largely by demand for digital and tech-enabled services.
As the COVID-19 pandemic's effects impacted governments and businesses, EY teams reacted quickly to provide vital business continuity and resilience services, including:
Service-line investments and growth
An outstanding people culture
Overall, headcount increased by 5.3% to 298,965 people globally. Despite the disruption from COVID-19, EY continued its long-standing commitment to internships in FY20, with half of the 15,000 internships taking place on a remote basis.
In FY20, 600 people were promoted to partner and reflected key priorities: with 39% of the promoted partners within Assurance, 37% from emerging markets and women representing 33%. Further senior investments in priorities areas were made through an additional 462 new partners who were directly admitted into EY member firms. The EY Global Executive, the most senior body in EY, is one-third women and the 18 leaders are from nine countries, including four based in emerging markets. Demonstrating the ongoing commitment to diversity and inclusion, the EY Global Executive signed the EY Global Executive Diversity & Inclusion Statement and established a Global Social Equity Task Force.
EY continues to be recognized on prestigious lists for its outstanding people culture. It remains the world's most attractive professional services employer in Universum's annual "World's Most Attractive Employer" ranking, and second overall behind Google. In the US, EY was recognized in Fortune's "100 Best Companies to Work For®" annual list for a record 21-consecutive years.
Building a better working world
In FY20, EY set the ambitious goal of positively affecting 1b lives by 2030 through its EY Ripples corporate responsibility program. More than 1m people will be mobilized globally to drive long-term change by working with impact entrepreneurs, supporting the next generation and accelerating environmental sustainability. In FY20 more than 15.5m lives were positively affected, bringing the total to more than 34m to date.
In FY20, there were investments of a total of US$126m in projects dedicated to strengthening its communities and its people contributed 790k hours of time to a variety of initiatives and value-in-kind projects. EY people have also used their skills and knowledge to help combat COVID-19 challenges via a range of pro bono and voluntary work, including:
At Davos, EY pledged to become carbon-neutral by the end of calendar year 2020 and appointed Steve Varley to the new position of EY Global Vice Chair — Sustainability, with a focus on helping EY and its clients achieve their sustainability goals. EY is on track to meet its carbon commitment and will continue to take action to create sustainable, inclusive growth for future generations.
In the Global Review 2020, EY today reports for the first time on its progress integrating the United Nations Global Compact (UNGC) Ten Principles and the UN SDGs into EY strategy, culture and operations. As part of its commitment to long-term value creation, EY continues to report on a broad range of financial and non-financial metrics in its Global Review.
Notes to editors
EY is a global leader in assurance, tax, strategy, transaction and consulting services. The insights and quality services we deliver help build trust and confidence in the capital markets and in economies the world over. We develop outstanding leaders who team to deliver on our promises to all of our stakeholders. In so doing, we play a critical role in building a better working world for our people, for our clients and for our communities.
EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. Information about how EY collects and uses personal data and a description of the rights individuals have under data protection legislation are available via ey.com/privacy. For more information about our organization, please visit ey.com.
This news release has been issued by EYGM Limited, a member of the global EY organization that also does not provide any services to clients.
EY-Parthenon is a brand under which a number of EY member firms across the globe provide strategy consulting services.
EY FY20 global revenues
EY revenues by service line – US$ millions
% change in local currency
FY20 v. FY19
Transaction Advisory Services
EY revenues by geographic area – US$ millions
% change in local currency
FY20 v. FY19
EY people by service line
FY20 v. FY19
Transaction Advisory Services
EY people by geographic area
FY20 v. FY19
Basis of presentation: Revenues are aggregated revenues of the individual EY member firms that have been combined for presentation purposes and include expenses billed to clients. For purposes of reporting combined global revenues, revenues between member firms have been eliminated. Headcount numbers reflect personnel as at the end of June of each financial year.
Global Entities in the People Section represents Global services and functions including the Global Delivery Services (GDS) organization. GDS entities support EY member firms across the world by providing support capabilities to their client-serving account teams as well as internal enablement support services.
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