Latin American Business Outlook Part of the Global Business Outlook

Latin American Business OutlookPart of the Global Business Outlook

A joint survey effort between

Duke University,Fundação Getúlio Vargas

and

CFO magazine

Latin American Business Outlook Duke University / FGV / CFO Magazine Mar 2014 1

Top Internal Concerns for Latin American CFOs


1. Ability to maintain margins

2. Attracting and retaining qualified employees

3. Maintaining morale/productivity

4. Ability to forecast results

5. Working capital management

6. Managing IT systems

7. Supply chain risk

8. Counterparty risk

9. Data security

10. Cost of health care

11. Balance sheet weakness

Top External Concerns for Latin American CFOs


1. Federal government policies

2. Consumer demand

3. Corporate tax rates

4. Currency risk

5. Price pressure from competitors

6. Global financial instability

7. Credit markets/interest rates

8. Inflation

9. Federal budget deficit

10. Cost of fuel

11. Foreign competition

Forecast of % change over next 12 monthsHistorical Responses Mar 2014 Response

Rev

enue

Notes: Presented data are the mean value for each region or country.


Mar 2013 Jun 2013 Sep 2013 Dec 2013 Mar 2014

-5%

0%

5%

10%

15%

Latin America United States Europe AsiaAfrica

Pro

duct

Pric

es


-5%

0%

5%

10%

15%

Latin America United States EuropeAsia Africa

United States

Europe Asia Latin America

Brazil Peru Chile0%

5%

10%

15%

United States


Brazil Peru Chile

-5%

0%

5%

10%

15%

Historical Responses

Cap

ital S

pend

ing

Mar 2014 Response



-5%

0%

5%

10%

15%

Latin America United States Europe AsiaAfrica

Forecast of % change over next 12 months

Notes: Presented data are the mean value for each region or country,except medians are shown for Latin American earnings in Mar 2013 and Mar 2014.

Ear

ning

s


-5%

0%

5%

10%

15%

Latin America United States EuropeAsia Africa United

StatesEurope Asia Latin

AmericaBrazil Peru Chile

0%

5%

10%

15%

United States


Brazil Peru Chile0%

5%

10%

15%

Historical Responses

# F

T E

mpl

oyee

sW

ages

& S

alar

ies

Mar 2014 Response



-5%

0%

5%

10%

Latin America United States Europe

Asia Africa


-5%

0%

5%

10%

Latin America United States Europe Asia

Africa

Forecast of % change over next 12 months

Notes: Presented data are the mean value for each region or country,except medians shown for Latin America in Mar 2013.

#FT=Number of Fulltime Employees

United States


Brazil Peru Chile

-5%

0%

5%

10%

United States


Brazil Peru Chile0%

5%

10%

Latin American Business Outlook Duke University / FGV / CFO Magazine Mar 2014

Business Optimism Index (Scale from 0 to 100)Historical Responses

Cou

ntry

/ R

egio

nO

wn

Com

pany

Mar 2014 Response

7

Mar 2013 Jun 2013 Sep 2013 Dec 2013 Mar 201435.0

45.0

55.0

65.0

75.0

Latin America United States EuropeAsia Africa

Mar 2013 Jun 2013 Sep 2013 Dec 2013 Mar 201435.0

45.0

55.0

65.0

75.0

Latin America United States Europe

Asia Africa

Brazil Mexico Argentina Chile Peru Colombia Ecuador0

1020304050607080

Brazil Mexico Argentina Chile Peru Colombia Ecuador0

1020304050607080

Notes: Presented data are the mean value for each region or country

Mergers and Acquisitions


United States


Africa Brazil Peru Chile0%

5%

10%

15%

20%

25%

30%

35%

Plan to Acquire Cross-border Acquisition

Where will your cross-border acquisitions occur?


US Europe Asia Latin America0%

20%

40%

60%

80%

100%

US/Canada Europe Asia/Pacific BasinLatin America Africa

Targ

et R

egio

n

Effects of Tighter FED Monetary Policy


US Europe Asia Latin America Africa0%

20%

40%

60%

80%

100%

Very negative Somewhat negative None Somewhat positive Very positive

What effect, if any, has the U.S. Federal Reserve Bank's plan to taper its quantitative easing program had on your company's optimism about its business prospects for 2014?


Uncertainty and Business Planning—Econ Conditions

11

Does Uncertainty about Economic Conditions Affect Your Business Planning?

0%

10%

20%

30%

40%

50%

60% 56%54%

25%

5%


Uncertainty and Business Planning—Govt Policies

12

Does Uncertainty about Government Economic Policies Affect Your Business Planning?

0%

10%

20%

30%

40%

50%

60%

70%

54%

68%

18%

5%

Corporate Culture


United States Latin America

Customer-orienta-tionIntegrityAdaptabilityCollaborationNear-term results orientationStrategic results orientation

Changes to Corporate Culture


Strate

gic re

sults

orientation

Customer-

orientati

on

Adaptabilit

y

Near-t

erm re

sults

orientation

Internal tr

ansp

arency

Collborati

on0%

10%

20%

30%

40%

29.6%

24.3%

14.8%11.3%

6.1% 6.1%

First Priority for Improvement in Latin American Corporate Culture:

Real Estate Bubbles


US Europe Asia Latin America

Africa Brazil Peru Chile China0%

20%

40%

60%

80%

100%

Yes No

Do you think that there is a real estate bubble in your country?


Past and Expected Return on Assets (ROA)

16

US Europe Asia Latin America Africa Brazil Peru Chile0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

Approximate ROA in 2013 Expected ROA in 2014

Duke/FGV CFO Survey in Latin America Press



Duke/FGV CFO Survey in Latin America Press

Latin American Business OutlookPart of the Global Business Outlook

A joint survey effort between

Duke University,Fundação Getúlio Vargas

and

CFO magazine


Documents

Latin American Business Outlook Part of the Global Business Outlook