Australia announced revenue growth of 9 per cent to $2.31 billion revenue, for the 12 months to June 30.
3 Aug 2021
Tony Johnson, who stepped down as EY CEO and Regional Managing Partner Oceania at 30 June 2021 noted: “This is a very strong performance - fundamentally driven by the outstanding contribution of our people who delivered exceptional service to meet the strong demand for our services, despite the ongoing disruption and challenge of COVID-19. Our client service teams were expertly supported and enabled by the agility, innovation, effort and the technology platforms provided by our core business services teams.”
The strong performance gave rise to the bring forward of EY’s annual promotion and salary increase process by 3 months to 1 July 2021, an increase in the payment of bonuses to EY people and increased partner earnings. The Australian partnership welcomed 101 new partners – 31 internal appointments and 30 direct appointments during the year, and also 40 internal appointments effective 1 July 2021.
EY’s management of COVID and the decision to support its people by not making any COVID related job losses continues to positively impact the recruitment of quality people into the organization which is particularly important in the tightest recruitment market in over 25 years.
David Larocca who succeeded Mr Johnson on 1 July, noted: “I am incredibly proud of how our people have responded to this challenging period. The volatility and disruption caused by COVID has changed the way we live, work and think forever. But this disruption has also created new opportunities for our clients, our firm and for all of us. What used to be ‘future’ issues – such as digital transformation, new ways of working, transport mobility, sustainability and climate change – have been accelerated to become ‘now’ issues that are being actioned.”
The financial services sector continues to undergo significant transformation and change. This has seen EY’s financial services business continuing to perform strongly in FY21, with revenue growth of more than 20 per cent from advising clients on complex transactions, financial crime, cyber, technology-led transformations, ESG and assurance programs.
The acceleration of energy transition and climate-related targets across being actioned across all industries has driven opportunities for EY’s unique offerings to assist clients develop strategic-led practical pathways, implement specific actions and measure outcomes for Boards, investors and their stakeholders.
EY has also worked with governments to provide the infrastructure needed to drive the economic recovery towards a more sustainable economy, delivering new jobs and new opportunities. EY’s government teams have also helped build a digitally skilled, empowered and resilient public sector workforce, supported universities and schools to rethink their student experience and value proposition and to make a difference through education.
In terms of service line performance, continued strong performance from EY’s audit practice, along with strong growth from our market leading climate change and sustainability, forensics and accounting advisory businesses, led to Assurance growing by 2 percent. Climate change and sustainability services grew by 11% as market participants focus and seek assistance with their approach to environmental, social and corporate governance.
Continued investment in audit quality has delivered further improved results from internal and external reviews, as demonstrated by ASIC external reviews and internal global and Australian reviews.
Consulting, including risk advisory and actuarial services grew by 15 per cent, focused on supporting clients navigate uncertainty through large-scale technology enabled business transformation, digital, data and analytics services. Strong results in Consulting show that EY’s unique approach to transformation - value focused, business led, people powered and technology enabled, is delivering results for our clients.
EY’s Strategy and Transactions (SaT) practice grew by 25 per cent, assisted by the successful acquisition and integration of EY Port Jackson Partners (‘EYPJP’) in June 2020, as part of building a world class strategy business. The EYPJP team is now 77 strong including 19 Partners. The SaT practice also delivered strong growth through infrastructure, private equity and large corporate transactions particularly in the consumer products space. This demonstrates EY’s approach of combining strategy design and implementation, together with lead advisory, commercial, operational and technology diligence and value creation through the deal cycle continues to be a distinctive offering in the market.
Tax and EY Law revenue remained flat. Strong client demand continued across transactions and our best-in-class approach to compliance, leveraging process improvement and enabled by technology to help our clients transform their tax and law operating models.
EY’s People Advisory Services team delivered strong revenue growth of 10 percent, as clients transform and embrace new ways of working and invest in developing contemporary leaders who can thrive in a complex environment.
Revenue also benefitted from a full year of activity from the prior year acquisition of technology capability via Aleron, economic modelling through Cadence Economics and strategy capability via Port Jackson Partners.
For EY, a key driver of delivering on its purpose of building a better working world is adding long term value to society. Mr Johnson noted: “Our efforts to continue to be a more diverse, inclusive and safe workplace have seen EY recognised with many awards, and these initiatives have a positive impact beyond EY – a ripple effect – with our families, our friends and the broader community.”
During the year the firm contributed more than 23,000 hours of time on pro bono and volunteering work, and AUD$1.6 million in sponsorships and donations to charities, the arts, education and community organisations.
Mr Johnson commented “I am immensely proud of the efforts and achievements of all our partners and people, that have contributed to the firm’s strong performance during FY21, and for their unwavering support of one another, our clients and communities in these uncertain times.” He went on to say “David Larocca and I have worked together to ensure a seamless handover of the CEO role. Our people and clients are in good hands, and I am confident in the firm’s continued success.”
Mr Larocca noted: “We have a strong foundation built under Tony’s leadership to being more agile, bold and confident. Our priority continues to be our culture and our people’s health and wellbeing. We are committed to significant investment in both retention and recruitment together with ensuring our value proposition for our people is engaging and exciting. We will continue to innovate and transform the way we deliver our services and grow our capabilities across digital, data analytics, cyber, technology, climate change & sustainability, workforce and strategy.”
Mr Larocca has announced his leadership team including the new role of Chief Sustainability Officer – a first for any of the Big 4 in Australia to have a stand-alone sustainability leadership role on the executive team. Larocca also noted: “Recognising the importance of wellbeing and mental health, I decided to appoint Jono Nicholas as EY’s Chief Mental Health Advisor. Jono is an industry leader in this space, with over 20 years of experience in harnessing emerging technologies to deliver better mental health and wellbeing in the workplace”.
Mr Larocca noted: “I am proud of the leadership team I have in place. The diversity of that team, across gender, cultural background and the different experiences, along with all our people, will ensure we continue to deliver long-term value for our clients, people and society.”
Mr Larocca noted: “When I look ahead I am excited about the strong foundations we have at EY to now play an important role as a change leader in this next phase of change and growth – for our people, partnering with our clients and contributing to society and our communities. We have great people and the demand for our services remains strong. This is why we have planned for a year of strong double-digit revenue growth.”