20091126 Ernst & Young defends its market position - Ernst & Young - Switzerland

Ernst & Young defends its market position

Anti-cyclical setup / New organization generates important momentum

ZURICH, NOVEMBER 26, 2009 – Ernst & Young Switzerland finished the business year 2008/2009 on June 30, 2009, with revenue from services at CHF 545.8 million (-3.0 percent), thus defending its strong market position.

"In light of the extremely difficult market developments, this is a result we can be satisfied with. At the same time, it indicates that we are very well organized in terms of our strategic foci. The broad range of services we offer enabled us to compensate the losses we had to accept in some areas by means of high utilization levels in others. In this sense, our setup is anti-cyclical. Our specialized advisory services were particularly helpful towards counteracting the downward trend successfully,” says Bruno Chiomento, Chief Executive Officer of Ernst & Young Switzerland.
In Audit and Assurance Services, the revenue from services fell to CHF 287.0 million (-1.9 percent), in Tax and Legal Services to CHF 150.4 million (-6.0 percent). Advisory Services (without Transaction Advisory Services) continued to experience growth, increasing its revenue by 16.8 percent. The business area (with Transaction Advisory Services) reports revenues of CHF 88.6 million (-1.7 percent). "With our advisory services, we assist our clients in streamlining their business processes and minimizing their risks – with the goal of lowering their costs and boosting their performance. We are just as successful with our restructuring advisory services. In this area, we help our clients reorganize their structures and seize the opportunities that the market has to offer – even during the crisis,” says Bruno Chiomento.

Ernst & Young Switzerland has been part of the EMEIA Area, which is comprised of 87 member companies in Europe, the Middle East, India, and Africa, since 1 July 2008. With more than 68,000 employees and revenues of over USD 9.6 billion, EMEIA is the largest operational unit in the global Ernst & Young organization. "The new organization generates significant new momentum for our Swiss business and allows us to make important decisions centrally and implement them quickly. In personnel and finances, we can now consolidate our strengths even better than before. International clients in particular expect their auditors and advisors to operate with just as much of a global setup as they themselves do," says Thomas Stenz, Chairman of the Board of  Directors of  Ernst & Young Switzerland.

One example of the advantages that the EMEIA organization offers clients – as well as an indicator of Ernst & Young Switzerland's key international role – is the newly founded Europe-wide competence center for the insurance sector, which is based in Zurich. Ernst & Young’s Insurance Practice experienced further growth during the reporting year as well. In Audit and Assurance Services as well as in Advisory Services, the company succeeded in expanding its market share and keeping its success rate for tenders clearly above the market average.

Ernst & Young wants to further improve on its strong position in the competence areas of risk management, actuarial mathematics, cost management, and IFRS. Additionally, Ernst & Young's Insurance Practice will be focusing on expanding Tax and Legal Services competence and establishing an advisory practice for pension funds, during the 2010 business year. The market share in auditing insurance companies is to experience a further significant increase.

Ernst & Young Switzerland: Revenue from services by area (in CHF millions)

Ernst & Young Switzerland: Employees (full-time positions)

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