2013 was another great year for MCI. Financially, our business grew in revenue and profit. Environmentally, we raised awareness with our talent and helped clients to activate their sustainability commitments and enhance their performance. Socially, we continued to support local communities, develop and nurture our staff, and increase our focus on ethical business practices.
- MCI once again delivered on our financial objectives, recording double-digit growth and reaching our best ever gross margin, EBITDA (earnings before interest, tax, depreciation and amortization) and EBT (earnings before tax). Our gross margin grew by 10% to reach €116 million, an increase of €11 million from 2012. The gross margin generated by our offices outside Europe also grew considerably, representing 35% compared to 15% in 2010.
- Our gross margin growth is divided between organic growth, which accounted for 5%, and acquisition growth, which accounted for 5%, and was generated by the acquisitions of EMC, a performance improvement specialist in Asia; Don’t Believe In Style (DBIS), a multi-media and creative communication agency based in Hong Kong; meeting and events experts Off-Site Connections (OSC) in Australia, China and Macau; Swiss production specialists Kongresstechnik, enhancing our portfolio in the German speaking region; and Congrex Belgium, active in the association management field for the Benelux region.
- Our two leading product practices, Meetings & Events and Professional Congress Organisation now represent 34% and 31% of our total business respectively, while Technical Production and Creative Communication Services continued their rapid growth, together accounting for 18% of the total gross margin. Association Management and Consulting, Destination Management Services and Performance Improvement & Measurement made up the majority of the remaining gross margin.
- MCI’s client portfolio remains well balanced between corporate clients and association clients. Our portfolio continued to include clients from a diverse range of industries, with the highest percentage of clients in 2013 working in the healthcare sector.
- MCI’s outlook for 2014 is promising. We will continue to achieve double digit growth and expect to reach a gross margin of €130 million, representing a growth of approximately 12%.
- With a focus on Quality as a Core, MCI we extended a company-wide client satisfaction measurement program,e. Inspired by the Net Promoter Score® methodology , we improved our formal, systematic and proactive process to capture the “voice of our customers”. In our second year of measurement, our Net Promoter Score (NPS) increased from 35 to a notable 54.
- Continuing our efforts to support organisations and initiatives promoting global change, we organised 152 events group-wide within the sustainability and energy sector. Leading organisations in the global sustainability sector choose MCI to provide logistical and strategic advisory services. Notable events included the UN Global Compact Leaders Summit and the GRI Global Conference on Sustainability and Reporting. With a goal to extend our ability to provide strategic solutions and managed services MCI became a major shareholder of Global Initiatives, one of the world’s leading producers of events around sustainability and owner of two renowned sustainability brands – the Responsible Business Forum and the Business for Environment Global Summits (B4E).
- On the consulting front MCI helped the Las Vegas Sands Corporation to drive sustainability performance and achieve ISO20121 sustainability certification for the largest and most expensive integrated resorts in Asia. We supported the Singapore Government to develop and roll out sustainability guidelines for the meetings and events (MICE) sector and also supported software giant Symantec to bring alive the brand commitment to sustainability by developing processes and a management system to increase sustainability performance across their US and EMEA events.
- The results of our projects at The Venetian Macau and the Responsible Business Forum were recognised with our clients winning the prestigious IMEX-GMIC Green Awards.
- Use of the MCI Supplier Code of Conduct increased, with 83% of our key international partners now subscribing to our sustainability policy.
- Launched in 2011, our Event Safety and Sustainability (ESST) Tool went into mainstream implementation and 78% of all MCI events were assessed for security and sustainability risks.
- We estimated the waste footprint at all of our events to be over 6 million kg.
- We conducted 24 sustainability training classes at group level and many local initiatives to raise awareness and educate about our new Standard Sustainability Event Management checklists and processes.
- The average scores for the office scorecard rose from 54% to 72%. 55% of all offices created a sustainability plan and reported results.
- Our internal greenhouse gas emissions increased to 5.033 metric tons of CO2 equivalents (tco2e). This equates to 3,4 tco2e per talent. We have reduced the intensity of carbon emissions per talent by 23% since 2010.
- Greenhouse Gas emissions for our client events rose to an estimated 380.266 metric tons CO2e. This is a whopping 99% of all our emissions
- At the end of the year, MCI employed 1,504 people in 55 offices, an increase of 204 employees from 2012.
- Gender balance increased: 62% of our staff, 40% of our directors and 36% of our management team are women.
- 235 employees said a fond farewell to MCI and 447 new permanent staff joined the team. Our retention of permanent employees was 12.4%.
- The MCI Institute delivered 10,691 hours of talent learning and development (a 3% decrease over 2012). This consisted of 3386 enrollments in MCI Institute programmes (an increase of 15% over 2012). 79% of all MCI Institute learning programmes were delivered online.
- A 6-month Leadership Development Programme was launched providing a pioneering approach to grow MCI’s future leaders.
Health and Safety
- 78% of all MCI events were assessed for security and sustainability risks.
- MCI talents volunteered a total number of 3,380 hours, raising over €330,000 and supporting 86 charity projects around the globe.
- 20 MCI employees from offices across the globe built a classroom in one of the poorest regions of Nepal with funds raised by MCI talents from around the world. Additional fundraising covered the salary of a teacher for 2 years.