In closing the 2016/17 financial year, KPMG also closed the year in which it celebrated its 100th anniversary. The developments in this symbolic year provide grounds for confidence in the future. The three-year program of investments in people, quality and technology, which we completed in the year under review, is paying off in terms of revenues and greater appreciation for our company from both clients and employees.
Our clients and employees are important to the success of KPMG NV. Customer satisfaction increased to 92% in 2017 (2016: 90%). This year, we launched our BeYou program, in which we devote attention to each employee’s individual needs, to help them be successful both in their profession and in their personal life. Our employees also expressed a greater appreciation for their jobs in the past year. Our employee engagement score increased to 66% in 2017 (2016: 64%). Plus we proved even better able to retain top talents in the year under review (87% vs. 84%).
In the year under review, we made investments to align our Advisory services even more closely with market demand, with the introduction of more digital services. More than 50% of our people at Advisory now have a background in technology. Revenues have increased while the operating result remained stable due to investments in technology.
Revenues at Audit have stabilized. This is the result of a number of factors. Revenues from medium-sized companies increased, while the mandatory auditor rotation put pressure on results because more hours are being used on client transfers. This combined with the extra investments in technology and quality (more hours per audit and for internal quality control, 10% more training hours) meant the operating result was lower than in the previous financial year.
“For KPMG NV, our 100th anniversary was a milestone, which we celebrated with our clients and employees. We marked the anniversary theme ‘True Value’ with three publications, about the labor market, digital economy and mobility in the future. We also introduced new digital products, such as those on our SOFY platform, and are creating new earnings models with subscription services to add to our existing propositions. Our sights are once again set firmly on the future and the distinctive role we can play for our clients in this rapidly changing world. New investments in technology will change our propositions for clients in that context. In addition, further investments in audit quality will remain a priority.”
Revenues KPMG in the Netherlands*: € 622 million (2016: € 608 million)
*including Meijburg & Co
Revenues KPMG NV € 457 million (2016: € 453 million), of which:
Revenues Audit: € 247 million (2016: € 251 million)
Revenues Advisory: € 196 (2016: € 188 million)
Other revenues: € 14 million (2016: € 14 million)
Profit KPMG NV before taxes: € 58 million (2016: € 67 million)
Profit per partner € 431,000 (2016: € 460,000)