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CFO ServicesThird quarter edition 2013
Deloitte Belgian CFO SurveyA new moodBenchmarking corporate financial attitudes
Content
3 Key points 4 A new mood 6 A new mood of confidence 7 Business conditions improving 10 Optimistic mood not yet translated into performance 12 Continued focus on defensive strategies 15 Corporate debt and bank borrowing remain attractive 17 Negative report on financial & economic priority setting by Belgian government 20 Profile Q3 survey participants
“CFOs are more optimistic than they have been in the last three years”
Deloitte Belgian CFO Survey A new mood 3
Key points from the 2013 Q3 Belgian CFO survey
•CFO confidence rallied in the third quarter, introducing a new mood of optimism. CFOs are more optimistic than
they have been in the last three years.
•Business conditions have improved and CFOs’ perception of the financial and economic uncertainty has continued
to fall. Only a small minority of CFOs expect our economy to enter into a new recession in the next two years.
•Third quarter results have not improved compared to the second quarter: over half of survey participants are not
on budget – with little hope to catch up by year-end: 50% report financials will not meet top and bottom line
projections.
•The optimistic mood has not yet changed business priorities: risk appetite remains low and defensive strategies
remain on top of the agenda.
•CFOs expect a positive impact on investment plans from the economic activity in emerging markets, US and Asia-
Pacific region. Prospects for Belgium and the Eurozone are at present not driving investment plans.
•High levels of cash and attractive credit conditions suggest that many corporates have the possibility to invest.
Private equity is increasingly looking for investment opportunities.
Macroeconomic backdrop to the third quarter CFO survey
Western equity markets continued to climb in the third quarter and government bond yields edged higher. Economists’ forecasts for GDP growth in the industrialised world rose. The euro area emerged from recession. The outlook from emerging market economies softened, with a number suffering capital outflows and a weakening of their currencies. The US Federal Reserve surprised markets in mid-September by announcing it is not yet ready to slow the pace of quantitative easing.
Ian Stuart, Chief Economist Deloitte UK
4
CFO optimism, one of the key indicators of the survey, has turned positive for the first time in 18 months. Following the gradual but very slow improvement we had already witnessed in the past quarters, today’s increase is significant and hopeful. Are we finally at a turning point? Business conditions are getting better. Financing conditions remain favourable. But actual performance to budget was once again disappointing in the third quarter, and is unlikely to catch up in the final quarter of the year. Growth prospects remain weak, and the CFO’s optimistic mood has not yet translated into more expansionary business priorities.
A new mood of confidenceA new mood of confidence pervades the third quarter survey. In the last two quarters CFO optimism was already somewhat positive in most of the European countries in which Deloitte conducts the CFO Survey. Not so in Belgium.
Although the optimism indicator had already improved since the beginning of the year also in Belgium, overall a pessimistic mood prevailed. The third quarter marks a turning point.
CFO optimism has risen to the highest number we have reported since the end of 2010 – almost three years ago. CFOs see fewer risks in the global economy: over the past 15 months, the general level of external financial and economic uncertainty has been steadily decreasing (from 53% to 26%).
Only 17% of CFOs consider it likely that the Belgian economy would enter into a new recession in the next two years, down from 33% three months ago.
For the majority of corporates, financing is available and – thanks to the continued efforts of central banks across the globe to keep interest rates low – attractive. High levels of cash and attractive credit conditions suggest that many corporates have the possibility to invest, while private equity is looking for investment opportunities as well.
CFOs have also become more positive regarding the prospects for economic activity throughout the world, although to a much lesser extent in Belgium and the Eurozone. Especially for organisations deriving at least 70% of their revenues from outside Belgium, actual or expected growth in the US, Japan, Asia-Pacific and the emerging markets has a positive impact on their current investment plans. On the other hand, for local companies, low growth in Belgium continues to be an inhibiting factor to investment.
A new mood
“The optimistic mood has not yet translated into positive financials”
Deloitte Belgian CFO Survey A new mood 5
Concerns over competitivenessThe optimistic mood has not yet translated into positive financials. Performance to budget remains disappointing in the third quarter - and worrying - with over 50% of survey participants reporting their companies are running behind budget, with few hoping to still catch up in the final quarter (as opposed to 22% doing better than budgeted).
For the first time in the past two years, CFOs’ number one concern is not only the economic recovery. Belgian CFOs are now equally concerned about the ability of their companies to compete within the global economy. Taking this into account, the Federal Government's economic growth plans that were announced at the beginning of October (after the survey period had closed) are not likely to silence the corporates’ call to further reform the labor market and taxation policies.
Still little focus on growthDefensive strategies, including cost reduction, cash flow management and efficiency improvement remain the dominant priorities. Appetite to take on additional risk on the balance sheet has not seen a marked increase, notwithstanding the prevailing perception of CFOs that balance sheets are today underleveraged.
This quarter’s survey does not reveal a new focus on growth among the Belgian businesses: focus on expansionary strategies – increasing capital expenditure, expanding by acquisition, introducing new products or services, expanding into new markets – has not gained significant importance.
Are we at a turning point? The current mood of optimism remains fragile and at this point in time only marginally drives company priorities. One can only hope that the signs of optimism that we report today will not be reversed in the fourth quarter and will be confirmed by gradually improving results as well.
Thierry Van Schoubroeck,Partner Deloitte CFO Services
6
A new mood of confidence
After 18 months of overall pessimism, a new mood of optimism has finally pervaded amongst CFOs. CFO optimism about the financial prospects for their company has risen to the highest number we have reported since the end of 2010 – almost three years ago. More than half of the respondents are more optimistic compared with three months ago. Only 18% are now (somewhat) less optimistic.
The level of optimism amongst CFOs of internationally-oriented companies, i.e. deriving over 70% of their revenues from outside Belgium, is on average much lower than the overall level of optimism amongst CFOs of local companies (net balance of 19% vs. 52%). For the local companies, 64% of respondents are more optimistic compared with three months ago.
Mor
e op
timis
ticLe
ss o
ptim
istic
Net % of CFOs who are more/less optimistic about financial prospects for their company
-80
-70
-60
-50
-40
-30
-20
-10
0
10
20
30
40
50
60
‘13 Q3
‘13 Q2
‘13 Q1
‘12 Q4
‘12 Q3
‘12 Q2
‘12 Q1
'11 Q4
'11 Q3
'11 Q2
'11 Q1
'10 Q4
'10 Q3
'10 Q2
'10 Q1
'09 Q4
'09 Q3
'09 Q2
'09 Q1
-18%
0%
22%17%
25%
44%40%
53%
26%
8%
-34%
-75%
-42%
-27%
-11%
-29%
-15%
34%
12%
Organisationsderiving 0-30%of revenu fromoutside Belgium
Organisationsderiving 31-69%of revenu fromoutside Belgium
Organisationsderiving 70-100%of revenu from outside Belgium
Net % of CFOs who are more/less optimistic about financial prospects for their company - split in respondents' organisations based on % of revenue derived from outside Belgium
0%
10%
20%
30%
40%
50%
60%52%
30%
19%
Deloitte Belgian CFO Survey A new mood 7
Business conditions improving
The percentage of CFOs who believe that the economy will not pick up prior to 2015, has also slightly decreased compared to the previous quarter.
Uncertainty amongst CFOs is gradually decreasing: over the past 15 months, the percentage of CFOs rating the general level of external financial and economic uncertainty facing their business as high or very high, has decreased from 53% to 26%.
Net % of CFOs' rating the general level of external financial and economic uncertainty high/very high
0%
10%
20%
30%
40%
50%
60%
2013 Q3
2013 Q2
2013 Q1
2012 Q4
2012 Q3
2012 Q2
2012 Q1
2011 Q4
2011 Q3
2011 Q2
21%
47%
51%
42%
53%
41%
37% 33%
27% 26%
CFOs' expectations about timing of recovery of the Belgian economic growth
39%
2013 Q2
2013 Q30%
10%
20%
30%
40%
2013 H2 2014 H1 2014 H2 As of 2015
12%
34%
13%
32%29%
35%
27%
18%
8
On the other hand, close to 50% of the respondents expect growth to be flat for 2013, which is in line with the projections published by the National Bank of Belgium.
*Source of data: Economic Indicators for Belgium N° 2013-40, National Bank of Belgium 2013 & 2014 data are forecasts, Belgian forecasts are based on NBB estimates from June 2013, Eurozone forecast based on OECD preliminary version May 2013
Belgium
Eurozone
2010 2011 2012 2013* 2014*
Real GDP evolution: Belgium vs. the Eurozone
-1,0%
-0,5%
0,0%
0,5%
1,0%
1,5%
2,0%
2,5%
Expectations for the current year have also improved: close to 50% of the respondents expect the Belgian economy to grow in 2013 by at least 0.2%. 14% of the respondents even expect an uptake in growth of more than 0.5%.
CFOs' expectations for the Belgian economic growth in 2013
39%
2013 Q2
2013 Q30%
10%
20%
30%
40%
50%
60%
-0,5%
to -0,2%
-0,1%
to 0,1%
0,2%
to 0,5%
0,6%
to 1%
Greater
than 1%
Less than
-1%
-1% to
-0,6%
0% 0% 0% 0%1%
17%
56%
45%
19%
34%
6%
14%
5%3%
Deloitte Belgian CFO Survey A new mood 9
CFOs are less worried today that our economy will enter into a new recession: only 17% of CFOs consider it a likely scenario, down from 33% three months ago. Similarly, only one out of five CFOs assign a high likelihood to a new recession in the Eurozone in the next two years, compared to over 40% in the previous quarter.
Though still important, economic recovery is no longer the number one concern of the vast majority of CFOs. For the first time in the past two years, they are now equally concerned about the ability of their companies to compete within the global economy. The impact of the Belgian financial and economic policy making completes the top three concerns.
Net % of CFOs' expectations on the likelihood of a (new) recession in Belgium/Eurozone in the next 2 years
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2013 Q2
1%
32%
42%
24%29%
55%
17%
39%
3%
39%
17%
1%
1%1%
56%
21%
1%
20%
32%
2013 Q3 2013 Q2 2013 Q3
Very high
Quit high
Neither high nor low
Quite low
Very low
Belgium Eurozone
CFOs' perception on the greatest concern for their business in the next 12 months
Economic recovery
Competitive position in the market
Impact of Belgian financial &
economic policy making
Changes in regulation
Commodity prices
Slow-down in China
Interest rates
Access to capital
One or more member states
leaving the Eurozone
Increasing sovereign risk
34%
34%
10%
7%
5%
4%3%
3%
0%0%12%
10
CFOs' expectations on the evolution by year-end of the following metrics compared to budget
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
24% 25% 51%
24%
43%
28%
17%
22%
29% 38% 33%
7%72%21%
33% 45% 22%
18%62%20%
22% 63% 14%
65% 7%
8%75%
29% 49%
38% 18%
25% 51%
Better than expected The same Worse than expected
Revenues
Operating margins
Operating costs
Discretionary spending, for instance on travel, training and marketing
Financing costs
Profit before taxes
Operating cash flow
Capital expenditure
Levels of cash and cash equivalentson balance sheet
Inventory levels
Headcount
Optimistic mood not yet translated into performance
After the first nine months of 2013, close to 55% of the respondents’ organisations are lagging behind budget. Only 22% is performing somewhat better than expected. For most companies, the more optimistic mood has clearly not yet translated into actual performance.
For the last three years about half of the CFOs have reported disappointing performance to budget, and the trend has not yet reversed.
Comparison of the surveyed organisations' actual performance versus budget
Significantly better than expected
Somewhat better than expected
As expected
Somewhat worse than expected
Significantly worse than expected
21%
8%
1%
46%24%
Comparison of the surveyed organizations' actuals performance versus budget over time
Worse than expected As expected Better than expected
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2013Q3
2010Q3
2010Q4
2011Q2
2011Q3
2011Q4
2012Q1
2012Q2
2013Q1
2013Q2
2012Q3
2012Q4
18%
41%
41%
2010Q2
20%
38%
42%
12%
35%
53%
29%
37%
34%
50%
23%
27%
49%
22%
29%
37%
39%
24%
57%
23%
20%
45%
30%
25%
43%
22%
35%
57%
8%
35%
47%
35%
18%
54%
24%
22%
Deloitte Belgian CFO Survey A new mood 11
Looking forward towards the end of the calendar year, performance is unlikely to improve. More than half of the survey respondents do not expect to make their financial budget this year. While organisations seem to manage their costs rather well, the revenue side of the equation – and lack of growth - appears to be causing most of the headache.
CFOs' expectations on the evolution by year-end of the following metrics compared to budget
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
24% 25% 51%
24%
43%
28%
17%
22%
29% 38% 33%
7%72%21%
33% 45% 22%
18%62%20%
22% 63% 14%
65% 7%
8%75%
29% 49%
38% 18%
25% 51%
Better than expected The same Worse than expected
Revenues
Operating margins
Operating costs
Discretionary spending, for instance on travel, training and marketing
Financing costs
Profit before taxes
Operating cash flow
Capital expenditure
Levels of cash and cash equivalentson balance sheet
Inventory levels
Headcount
12
% of CFOs who think now is a good time to be taking greater risk onto their balance sheet
5%
17%17%
21% 23%
28%
31% 35%
41%
35%
30%
21%
22%24%
14%
19%19%
8%
13%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
'13 Q3
'13 Q2
'13 Q1
'12 Q4
'12 Q3
'12 Q2
'12 Q1
'11 Q4
'11 Q3
'11 Q2
'11 Q1
'10 Q4
'10 Q3
'10 Q2
'10 Q1
'09 Q4
'09 Q3
'09 Q2
'09 Q1
Furthermore, CFOs’ priorities have also not changed compared to the previous quarter: in the next 12 months organisations will mainly focus on defensive strategies: increasing productivity/efficiency, cost management and cash flow management. CFOs are still more cautious in planning for growth.
Although business conditions are improving, CFOs’ risk appetite is not (yet) rising. At this point only 22% of the respondents, similar to last quarter, believe now is a good time to be taking greater risk onto their balance sheets.
Business strategies likely to be a priority for the CFO's businesses over the next 12 months
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Strong priority Somewhat of a priority Not a priority
Increasing productivity/efficiency
Reducing costs
Expanding organically
Increasing cashflow
Introducing new products/services orexpanding into new markets
Increasing focus on sustainability programmes
Expanding by acquisition
Reducing leverage
Increasing capital expenditure
Disposing of assets
Raising dividends or share buy backs
58%
46% 47% 7%
18%36%46%
45% 43% 12%
19%44%37%
18% 57% 26%
61%24%
34% 57%
15%
9%
8% 30% 62%
70%23%7%
5% 93%
38%
4%
1%
Continued focus on defensive strategies
Deloitte Belgian CFO Survey A new mood 13
Stimulating/Inhibiting factors to investment plans (current impact)
-80% -70% -60% -50% -40% -30% -20% -10% 0% 10% 20% 30% 40%
-74%-63%
-35%-38%
-36%-19%
-46%-28%
17%
12%
13%
9%
-3%
-3%
13%0%
15%16%
-7%
2013 Q2 2013 Q3
Uncertainty about the economic and financial environment
Financial and economic policy making in Belgium
Actal or expected growth in Belgium
Actal or expected growth in the euro area
Actal or expected growth in US, Japan, Asia-Pacific
Actal or expected growth in emerging markets
Cost and availability of external finance
Availability of internal finance
Secular or long-term growth for your products or services
Inhibiting Stimulating
However, CFOs have become more positive regarding the prospects for economic activity throughout the world. As opposed to last quarter, actual or expected growth in the US, Japan, Asia-Pacific and in the emerging markets is now perceived as a stimulating factor for an organisation’s investment plans. The economic situation in Belgium and the Eurozone continues to be an inhibiting factor, but to a lesser extent compared to the previous quarter. Secular or long-term growth for products or services continues to be one of the main stimulating drivers for investment plans.
Since early 2012, organisations have been focusing more on defensive strategies than on expansionary strategies. Up until now, we have not witnessed a significant shift in this trend.
*Arithmetic average of the % of the CFOs who rated expansionary and defensive strategies as a strong priority for their business in the next 12 months. Expansionary strategies are introducing new products/services or expanding into new markets, expanding by acquisition and increasing capital expenditure. Defensive strategies are reducing costs, reducing leverage and increasing cash flow. Expansionary strategies Defensive strategies
CFO priorities: defensive vs. expansionary strategies
20%
30%
40%
50%
‘13 Q3
‘13 Q2
‘13 Q1
‘12 Q4
‘12 Q3
‘12Q2
‘12 Q1
‘11 Q4
‘11 Q3
‘11 Q2
‘11 Q1
14
Stimulating/Inhibiting factors to investment plans (current impact)Local vs. international companies
-80% -70% -60% -50% -40% -30% -20% -10% 0% 10% 20% 30% 40%
Organisations deriving 0-30% of revenu from outside belgium
Organisations deriving 70-100% of revenu from outside belgium
Uncertainty about the economic and financial environment
Financial and economic policy making in Belgium
Actal or expected growth in Belgium
Actal or expected growth in the euro area
Actal or expected growth in US, Japan, Asia-Pacific
Actal or expected growth in emerging markets
Cost and availability of external finance
Availability of internal finance
Secular or long-term growth for your products or services
-61%-65%
-42%-39%
-24%-10%
-21%-27%
9%
0%
-3%
3%
3%
26%
30%
-19%
-13%
26%
Inhibiting Stimulating
Net % of CFOs who expect M&A activity to increase over the next 12 months
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
'13 Q3
'13 Q2
'13 Q1
'12 Q4
'12 Q3
'12 Q2
'12 Q1
'11 Q4
'11 Q3
'11 Q2
'11 Q1
'10 Q4
'10 Q3
'10 Q2
'10 Q1
'09 Q4
'09 Q3
'09 Q2
'09 Q1
36%
69%
76%
89% 90%
76% 74%
84%88%
70%
30%
5% 12%
24%
36%
55%
50%
57%48%
Especially for organisations deriving at least 70% of their revenues from outside Belgium, actual or expected growth in the US, Japan, Asia-Pacific and the emerging markets has a positive impact on their current investment plans. On the other hand, for local companies, growth (or rather the absence of growth) in Belgium continues to one of the factors inhibiting investment.
The percentage of respondents expecting M&A activity to increase over the next 12 months has not changed significantly compared to the previous quarter.
Deloitte Belgian CFO Survey A new mood 15
Corporate debt and bank borrowing remain attractive
Net % of CFOs reporting the following sources of funding as attractive/unattractive
-80%
-60%
-40%
-20%
0%
20%
40%
60%
80%
'13 Q3
'13 Q2
'13 Q1
'12 Q4
'12 Q3
'12 Q2
'12 Q1
'11 Q4
'11 Q3
'11 Q2
'11 Q1
'10 Q4
'10 Q3
'10 Q2
'10 Q1
'09 Q4
'09 Q3
'09 Q2
'09 Q1
Att
ract
ive
Una
ttra
ctiv
e
Bank borrowings EquityCorporate debt
Net % of CFOs reporting credit is costly and net % reporting credit is available
-80%
-60%
-40%
-20%
0%
20%
40%
60%
80%
-80%
-60%
-40%
-20%
0%
20%
40%
60%
80%
'13 Q3
'13 Q2
'13 Q1
'12 Q4
'12 Q3
'12 Q2
'12 Q1
'11 Q4
'11 Q3
'11 Q2
'11 Q1
'10 Q4
'10 Q3
'10 Q2
'10 Q1
'09 Q4
'09 Q3
'09 Q2
'09 Q1
Cre
dit
is c
ostly
Cre
dit
is c
heap
Cre
dit
is a
vaila
ble
Cre
dit
is u
nava
ilabl
e
Costly Available
Overall, corporate debt and bank borrowing remain attractive means of financing. Equity is attractive as well, and received the highest rating in two years.
Following the steady increase that started one year ago, the availability of credit has remained stable compared to the previous quarter. As in the previous quarters, for one third of CFOs, bank credit remains hard to get. Credit is still perceived as cheap for the average CFO.
Net % of CFOs who expect M&A activity to increase over the next 12 months
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
'13 Q3
'13 Q2
'13 Q1
'12 Q4
'12 Q3
'12 Q2
'12 Q1
'11 Q4
'11 Q3
'11 Q2
'11 Q1
'10 Q4
'10 Q3
'10 Q2
'10 Q1
'09 Q4
'09 Q3
'09 Q2
'09 Q1
36%
69%
76%
89% 90%
76% 74%
84%88%
70%
30%
5% 12%
24%
36%
55%
50%
57%48%
16
Going forward 43% of the CFOs expect higher price terms and/or harder lending terms.
While over the past few years corporate balance sheets were perceived as appropriately leveraged by the majority of CFOs, close to 30% of the respondents now think corporate balance sheets are underleveraged. With the reduced financial and economic uncertainty, balance sheets are today evaluated differently than yesterday.
CFOs' expectations about evolution of price terms and lending terms in the next 6 months
Higher price terms and/ or harder lending terms
No change
Lower price terms and/ or easier lending terms
5%
43%
52%
34%
13%
4%
9%
2%
-11%-13% -11%
-10%
-10%
-3%
-9%
0%
-7%
0%
-4%
0%
-22%
Net % of CFOs who think Belgian corporate balance sheets are overleveraged/underleveraged
-30%
-20%
-10%
0%
10%
20%
30%
40%
‘13 Q3
‘13 Q2
‘13 Q1
‘12 Q4
‘12 Q3
‘12Q2
‘12 Q1
‘11 Q4
‘11 Q3
‘11 Q2
‘11 Q1
‘10 Q4
‘10 Q3
‘10 Q2
‘10 Q1
‘09 Q4
‘09 Q3
‘09 Q2
Ove
rleve
rage
dU
nder
leve
rage
d
CFOs' expectations about the evolution of the long term interest rates in the next 6 months
Increase significantly
Increase somewhat
No change
Decrease somewhat
Decrease significantly
18%
1% 0%0%
81%
Over 80% of the CFOs expect long term interest rates to increase in the next six months. CFOs seem to think that the period of quantitative easing might be coming to an end.
Deloitte Belgian CFO Survey A new mood 17
Close to 60% of the CFOs rate the way in which the federal government is setting the right priorities for financial and economic policy making as negative. The percentage of CFOs who rate the priority setting as positive has slightly increased from less than 5% to 12%.
CFOs continue to be unhappy about almost all current policy settings in Belgium, especially those related to the labour market and taxation policy. Current policy setting is perceived as not contributing to the long-term success of business in Belgium. The monetary policy, which is a Eurozone policy, is perceived as more appropriate for the long-term success of businesses in Belgium.
-33%
-25%
-29%
-20%
-52%
-63%
-46%
2012 Q1 2012 Q2 2012 Q3 2012 Q4 2013 Q1 2013 Q2 2013 Q3
Perception by a net % of CFOs of the way in which the Belgian government is setting the right priorities for financial and economic policy making
-70%
-60%
-50%
-40%
-30%
-20%
-10%
0%
Net % of CFOs evaluating appropriateness of the current policy settings in the following areas for the long-term success of business in Belgium
Labour market
Taxation policy
General levels of regulation affecting business
Public expenditure
Infrastructure
Urban & town planning
Financial regulation
Energy policy
Immigration policy
Education & training
Monetary policy, including interest rates, inflation
and the availability of credit (Eurozone policy)
-80% -70% -60% -50% -40% -30% -20% -10% 0% 10% 20% 30% 40%
Inappropriate Appropriate
-68%
-68%
-46%
-42%
-24%
-24%
-22%
-14%
0%
0%
38%
Negative report on financial & economic priority setting by Belgian government
18
CFOs seem to think that we have left the euro crisis behind us. Hardly any CFOs still assign a high rating to the likelihood of one or more member states leaving the Eurozone in the next 12 months.
CFOs' rating on the likelihood of one or more member states leaving the Eurozone in the next 12 months
0%
10%
20%
30%
40%
50%
0%0% 1%4%
16%
21%
41% 42%
34%
41%
Very high Quite high Neither highnor low
Quite low Very low
2013 Q2
2013 Q3
From the specific 2013 recommendations for Belgium, published by the European Commission, shifting taxes and restoring competitiveness are expected to have the most positive impact on organisations.
Restore competitiveness
Shifting taxes
Reduce disincentives, improve mobility, social inclusion
Improve competition in network industries & services
Long-term sustainability
Reduce budget deficit
Meet greenhouse gas emissions target
Net % of CFOs rating the impact of the implementation of the following EC recommentations on their company as positive
0% 10% 20% 30% 40% 50% 60% 70% 80%
75%
66%
63%
46%
23%
16%
7%
Deloitte Belgian CFO Survey A new mood 19
“CFOs think the euro crisis is behind us”
As a consequence, the vast majority of companies are not making any plans to deal with this scenario. Only 7% of the CFOs are currently making some changes to their plans in order to deal with the risk of the Euro stress.
Extent to which companies are changing their plans to deal with the risk of the Euro stress
Significant change in plans
Somewhat change in plans
No change in plans
7%
93%
0%
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Profile Q3 survey participants
A total of 77 CFOs completed our 2013 third quarter survey.
22% of the participating companies have a turnover of over €1 billion, 43% of between €100 million and €1 billion, and 35% of less than €100 million.
The participating CFOs are active in variety of industries. 45% of the participating companies derive up to 30% of their revenues from outside Belgium, 13% between 31% and 69%, and 42% derive more than 69% of their revenues from outside Belgium.
Industry sector
Manufacturing
Retail/wholesale
Construction/mining
Banking/finance/insurance
Transport
Services/consulting
Technology
Healthcare/pharmaceuticals
Communication/media
Real estate
Energy/utilities
Leisure/entertainment
31%
12%
12%9%
7%
8%
7%
4%4%
4% 1% 0%
Turnover
> € 1 bn
€100-€999 mn
< € 100 mn22%
43%
35%
Revenues derived from outside Belgium
0% - 30%
31% - 69%
70% - 100%
45%
13%
42%
Deloitte Belgian CFO Survey A new mood 21
The Deloitte Belgium CFO Survey is produced by Thierry Van Schoubroeck, Partner, Ann Moerman, Senior Consultant and Romana Jelinkova, Consultant.
A note on methodologyNot all survey questions are reported in each quarterly survey. Survey questions are selected in response to the current financial economic situation. In case you participated in the survey and would like to receive information about non-reported questions, please do not hesitate to contact us.
Some of the charts in the Deloitte CFO survey show the result in the form of a net % balance. This is the percentage of respondents reporting, for instance, that bank credit is attractive minus the percentage saying bank credit is unattractive. This is a standard way of presenting survey data.
The 2013 third quarter survey took place between 17 September and 4 October, 2013. A total of 77 CFOs completed our survey. The participating CFOs are active in a variety of industries. 22% of the participating companies have a turnover of over €1 billion, 43% of between €100 million and €1 billion, and 35% of less than €100 million.
We would like to thank all participating CFOs for their efforts in completing our survey. We hope the report makes an interesting read, clearly highlighting the challenges facing CFOs, and providing an important benchmark to understand how your organisation rates among peers.
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Delivering the voice of the CFO community
Joël BrehmenPartner Deloitte CFO Platform [email protected]
Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee, and its network of member firms, each of which is a legally separate and independent entity. Please see www.deloitte.com/about detailed description of the legal structure of Deloitte Touche Tohmatsu Limited and its member firms.
Deloitte provides audit, tax, consulting, and financial advisory services to public and private clients spanning multiple industries. With a globally connected network of member firms in more than 150 countries, Deloitte brings world-class capabilities and high-quality service to clients, delivering the insights they need to address their most complex business challenges. Deloitte's more than 195,000 professionals are committed to becoming the standard of excellence.
© November 2013 Deloitte ConsultingDesigned and produced by the Creative Studio at Deloitte, Belgium.
ContactThierry Van SchoubroeckPartner CFO [email protected]+ 32 2 749 56 04
