2012 was a challenging year for global business. MCI however, continued to grow by double figures in both Gross Margin and EBITDA and now has a stronger business mix, with a larger number of services offered in more locations. Our gross margin grew by 14% in 2012, reaching €106 million, while our turnover increased by €28 million to €280 million.
The growth of our gross margin is due to a 2% organic growth, and 12% growth following the acquisition of Perfectus Group’s five offices in Asia (renamed Dorier), Advance Group and Destination Planners in Vancouver (now MCI Vancouver), Logos Public Affairs in Brussels and FairControl Performance and Event Measurement experts in Munich. We have also integrated Dutch company DNA into MCI Amsterdam, Oxford International into MCI Petersfield and Imagine into MCI Stockholm.
In 2012, Professional Congress Organisation and Meetings & Events remain our two leading product practices, each representing 34% of our total business. Technical Production and Creative Communication are developing and contribute 18% of the total gross margin in 2012. Association Management & Consulting and Destination Management Services complete the full service range that MCI offers to clients. The MCI client portfolio remains well balanced, with 50% corporate clients and 50% association clients.
MCI’s outlook for 2013 is promising, following a year of integration of completed acquisitions in 2012. We will continue to grow by acquisitions, such as Extra Mile Company based in Asia-Pacific, who are active in Performance Improvement, and by acquiring other companies that are active in Meetings and Events in the Asia Pacific Region.
In 2013 we expect to reach a gross margin of €120 million, which will represent a growth of about 15%, comprising 9% organic growth and 6% acquisitions.
With Quality as a Core focus of MCI, in 2012 we launched a company wide client satisfaction measurement program. Inspired by the Net Promoter Score® methodology , we are implementing a formal, systematic and proactive process to capture the “voice of our customers”. In our first year of measurement, MCI earned a Net Promoter Score (NPS) of 35. We have set ourselves a 2015 global goal to reach a NPS of 51.
Continuing our efforts to support organisations and initiatives promoting global change, we organised 153 events Group-wide within the sustainability and Energy sector – a growth of 11.4% over 2012. Of all major sales proposals, 60% now include information about our Corporate Responsibility commitment and Sustainability Services.
Leading organisations in the global sustainability sector choose MCI to provide logistical and strategic advisory services. Key events including the RIO+20 UN Corporate Sustainability Forum (for the UN Global Compact), the GRI Global Conference on Sustainability and Transparency, and the UN Conference on Biodiversity (COP11).
We guided the Danish Government to become the first organisation to achieve the new ISO20121 certification whilst implementing the first Sustainable EU Presidency.
MCI led sustainable destination improvement projects in Singapore and Denmark and supported the ICCA (International Convention and Congress Association) Scandinavia chapter to benchmark and create the world’s first “Sustainable Meetings Region”.
We made steady progress in integrating sustainability into our procurement and operational processes and the usage of the MCI Supplier Code of Conduct increased with 57% of our key international partners now subscribing to our sustainability policy. We were challenged to measure the compliance in the local offices and have implemented improved processes for 2013.
Launched in 2011, our Event Safety and Sustainability (ESST) Tool went into mainstream implementation and 76% of all MCI events were assessed for security and sustainability risks.
We conducted 24 sustainability training classes at the group level and many local initiatives to raise awareness and educate about our new Standard Sustainability Event Management checklists and processes.
At the end of 2012, MCI employed 1298 people in 47 offices, an increase of 184 employees compared to FY11. 62% of our total workforce and 39% of our directors are women. 78% of our talent held permenant contracts and employee retention increased to 89%.
In 2012, we looked deeply into the values and principles that serve to build our culture. As a result, MCI’s Core Values were rejuvenated to bring the teams closer together and give meaning to our company’s activities.
Realising the benefits of integrating sustainability into our HR (People and Culture) strategy, in 2012 we have been creating and embedding sustainability into our induction, training and Talent wellness programmes. For our Talent Survey we interviewed over 560 of our staff who expressed:
- 98% of our staff said that it is important to them that MCI is concerned and accountable for the social and environmental impacts of its operations.
- 80% were satisfied with their work at MCI
- 71% said that they felt engaged and motivated by the MCI sustainability programme.
- 61% claimed that they had changed their working practices.
In July we launched the annual MCI Dream Day where globally more than 800 MCI employees voluntarily embraced a “free” day to focus on reflecting on and planning their personal, family and professional dreams. 94% of all participants agreed that Dream Day was motivational, inspirational and helpful in visualizing and planning their dreams.
In 2012 we made good progress with MCI employees volunteering 1,481 hours (1hour per talent) and raising €320,365 in support of 68 charities. While this was a good improvement from 2011, our goal is that each staff member volunteers 8 hours of their time per year; a goal currently supported by 71% of our team.
To reach our goal we need to better facilitate the volunteering of our staff without our team feeling overly pressured. Through our annual Talent Sustainability survey we discovered that the top preferences for our staff are projects that support children, the environment and poverty reduction.
In our 48 locations, all major offices (more than 15 full time employees) have a detailed sustainability plan. This year we switched to a quarterly scorecard and data reporting process that is significantly improving operational performance. Offices are now bench-marked against each other and the competitive nature of this initiative has significantly improved performance. For 2013 we have set minimum targets for all offices. More information
Through our Talent Survey we learned that 46% of our staff did not read our sustainability report. To innovate and to improve accessibility, readability and share-ability we have taken our sustainability report online. This is a first for an international events agency and an example of our focus on constant improvement, innovation and thought leadership.
We annually conduct a governance and risk audit of our operations. In 2012 we did not receive any fines or sanctions for unethical business practices and/or non-compliance with laws and regulations. No cases of discrimination or human rights violations were reported. We uncovered potential risk in some of our control processes and in 2013 will be developing new procedures and training on anti-corruption practices. More information