The Deloitte CFO Survey Third quarter edition 2016 · Q1 2015 Favourae usiness conditions give conﬁdence for expansion Q2 2015 “Solid mid-year ﬁnancials” Q3 2015 “Good performance

The Deloitte CFO Survey Third quarter edition 2016Persistent focus on investmentQ3 2016

The Deloitte CFO Survey | Third quarter edition 2016

02

Introduction 03

Looking Back: Business confidence through

the financial and economic cycle 04

Impact of Brexit today expected to be limited 06

Optimism recovered slightly from the Brexit vote 07

Significant increase in planned capital expenditure 11

Strong expectations on taxation policy

and labour market reforms 13

External sources of financing remain attractive 14

Belgium within the EU: on average more optimism 16

Profile of the Belgian third quarter participants 18

Contents

AuthorsThierry Van SchoubroeckPartner Finance [email protected]

Emilie WiliquetSenior [email protected]

Wim JansensSenior [email protected]

Julien GosséBusiness [email protected]

ContactsThierry Van SchoubroeckPartner Finance [email protected]

Tom Van CauwenbergeFinance Lead, [email protected]

For current and past copies of the survey, please visit:http://www2.deloitte.com/be/en/services/finance/cfo-connect.html

The macroeconomic backdrop to the Deloitte CFO Survey Q3 2016Following the shock of the UK’s Brexit vote the FTSE100 and 250 equity indices more than recovered their initial post-referendum losses. Economic data showed signs of a post-referendum rebound and suggest the UK, though likely to see a slowdown next year, has a good chance of avoiding a full-blown recession. Sterling fell to a 31-year low against the dollar on the news that the UK will trigger the start of the Brexit process by March 2017 and concerns that the UK may leave Europe’s single market. US consumer confidence rose to the highest level in nine years, while jobs growth remained robust. The US Federal Reserve provided a strong signal that US interest rates are likely to rise before the end of the year. The euro area’s steady, unspectacular recovery continued and the EU sought to regain political momentum with a plan to strengthen Franco-German defence cooperation. The outlook for emerging markets continued to improve with Chinese growth stabilising and Brazil and Russia emerging from recession.

Ian Stewart, Deloitte UK Chief Economist


03

Introduction

Three months after the Brexit referendum and the United Kingdom’s decision to leave the European Union, CFO Optimism recovered somewhat from the drop the outcome of the vote had caused. Last quarter we expected the damage done to business confidence by Brexit was likely to be transient. It is a huge political shock, but not a global economic shock and seems to have had little influence on the corporate sector’s sentiment in Belgium. CFO’s remain primarily focused on expansionary strategies and expectations related to capital expenditure and headcount growth remain strong. Third quarter actuals are, with 62% of corporates reporting they are on – or have outperformed – the financial budget – in line with third quarter results in previous years. The majority of our survey participants do not expect Brexit to have a significant negative impact on their businesses. The participants that do expect an impact are almost exclusively pessimistic with 38% expecting negative impact and only 2% expecting a somewhat positive impact. If Brexit takes place, CFOs expect first of all an increased cost of doing business with the UK through different regulatory requirements in the UK versus the EU, reduced exports due to tariff barriers and restrictions in workforce mobility.

Since the launch of the survey in 2009, CFO’s have always been most concerned about the pace of the economic recovery and the competitive position of their company in the market. They are still today. But CFOs also got used to navigating in a low growth environment, and general conditions affecting business are overall not bad.

Eurozone growth forecasts are good. Financing is widely available and central banks aggressive quantitative easing policies keeps interest rates low and credit cheap. Many corporates have internal financing options available. And CFO’s remain overall positive about the appropriateness of the governments’ financial and economic policy making for the success of businesses in Belgium. The conclusions of the ongoing debates related to the budgetary deficit and the corporate income tax will however only be reflected in the fourth quarter survey.

Within this context, CFOs overall remain somewhat positive about the financial prospects of their organisations – as they have been in the past two to three years. They are however less upbeat on the growth potential as are the ECB and the European Commission: only 41% of our survey panel expect the growth rate of over 1% for Belgium that these institutions project.

Notwithstanding the continued importance of cost cutting and productivity enhancement initiatives, today 70% of our survey panel reports expansionary strategies are more important than defensive strategies. And these expansionary ambitions are backed up with some key growth indicators.

Expectations for capital expenditure increase, with 49% reporting capital expenditure will increase up from 13% one year ago. The percentage of CFO’s planning to increase headcount in the next 12 months similarly continued to go up since the beginning of the year and is at 56% in the third quarter, up from 43% in the first quarter. As a consequence, and for the first time since the launch of the survey, shortage of skilled labour has entered the top three concerns of CFOs. Discretionary spending, a third indicator of growth policies is on the rise as well.

The dominant view is that growth will endure, and corporates focus on expansionary strategies to capture their share of it.

Thierry Van Schoubroeck, Partner Finance Transformation


04

Looking Back: Business confidence through the financial and economic cycle (2009-2016)

Mor

e O

ptim

istic

Less

Opt

imis

tic

Q3 2009 “Financial

conservatism is back”

Q4 2009“Diverging fortunes

going into 2010”

Q1 2010“Financial

repair, economical uncertainty”

Q2 2010“Confidence

grows”

Q3 2010“Higher confidence,

good results”

Q4 2010“Planning for

growth”

Q1 2011“Call for caution” Q2 2011

“At a turning point”

Q3 2011“Results under

pressure”

Q4 2011“Outlook 2012:

a very difficult year”

Q1 2012“Anxiety has eased,

but plenty ofrisks remain”

Q4 2012“Outlook 2013:

how CFOs are preparing for 2014”

Q1 2013“Concerns dominate”

Q2 2013“Call for action”

Q3 2012“The New Normal

is here to stay“

Q2 2012“Corporates

are defensive“

Q3 2013“A new mood”

Q4 2013“Growth ambitions”

Q4 2014“Reasonable year, prudent growth”

Q1 2015“Favourable business

conditions give confidence

for expansion”

Q2 2015“Solid mid-year

financials”

Q3 2015“Good performance

amid the haze”

Q4 2015“Cautious

investment towards growth”

Q1 2016“Optimism fades,

but growth ambitions hold”

Q2 2016“Post Brexit

Vote Outlook”

Q3 2016“Persistent focus on

investment”

Q1 2014“More appetite

for risk”

Q3 2014 “Amid more uncertainty,

declining optimism”

Q2 2014“Concern over

government policies clouds current

optimism”

Optimism



05


Mor

e O

ptim

istic

Less

Opt

imis

tic

Q3 2009 “Financial

conservatism is back”

Q4 2009“Diverging fortunes

going into 2010”

Q1 2010“Financial

repair, economical uncertainty”

Q2 2010“Confidence

grows”

Q3 2010“Higher confidence,

good results”

Q4 2010“Planning for

growth”

Q1 2011“Call for caution” Q2 2011

“At a turning point”

Q3 2011“Results under

pressure”

Q4 2011“Outlook 2012:

a very difficult year”

Q1 2012“Anxiety has eased,

but plenty ofrisks remain”

Q4 2012“Outlook 2013:

how CFOs are preparing for 2014”

Q1 2013“Concerns dominate”

Q2 2013“Call for action”

Q3 2012“The New Normal

is here to stay“

Q2 2012“Corporates

are defensive“

Q3 2013“A new mood”

Q4 2013“Growth ambitions”

Q4 2014“Reasonable year, prudent growth”

Q1 2015“Favourable business

conditions give confidence

for expansion”

Q2 2015“Solid mid-year

financials”

Q3 2015“Good performance

amid the haze”

Q4 2015“Cautious

investment towards growth”

Q1 2016“Optimism fades,

but growth ambitions hold”

Q2 2016“Post Brexit

Vote Outlook”

Q3 2016“Persistent focus on

investment”

Q1 2014“More appetite

for risk”

Q3 2014 “Amid more uncertainty,

declining optimism”

Q2 2014“Concern over

government policies clouds current

optimism”

Optimism



06

The majority of our survey panel (56%) believe Brexit will not have an impact on their business, while 32% report it will have a somewhat negative impact (and 6% a very negative impact). Only 2% of the CFOs expect the negotiations to have a somewhat positive impact.

These results are in line with the results of Deloitte CFO Surveys in other EU countries. Nearly half of the European CFOs (48%) think Brexit negotiations will not have an impact on their business. 6% think it will have a positive impact and 39% a negative impact.

If or when the UK leaves the EU, the main factor that is expected to affect the companies’ businesses is an increased complexity and cost due to the introduction of different regulatory requirements. This is followed by concerns on restrictions in workforce mobility and decreased export opportunities due to tariff barriers.

Impact of Brexit today expected to be limited

58%

42%

How do you think your business would be affected if the UK leaves the EU

0% 5% 10% 15% 20% 25% 30% 35% 40%

Difficulties obtaining financing given the uncertainties surrounding London’s financial sector

Increased opportunities to buy assets in the UK as a result of sterling devaluation and an easing of monetary policy

Strengthening of competitiveness compared to UK companies due to advantageous EU market access and/or positive currency movement

Decreased export opportunities due to non-tariff barriers

Decreased cooperation and fewer mergers with UK-based companies

Improved UK tax and regulatory environment as the UK government seeks to reinforce attractiveness of the UK market

Relocation cost of business and talent out of the UK

Higher tax-related outlay (deployment of employees, transfer prices, tariffs)

Potential reconsideration and reorganisation of the value chain

Reallocation of EU subsidies from the UK to other EU countries

Weakening of competitiveness compared to UK companies due to market access limitations and/or negative currency movements

Decreased export opportunities due to tariff barriers

Restrictions in workforce mobility

Increased complexity and cost due to the introduction of different regulatory requirements between the EU and the UK

38%

29%

29%

16%

14%

14%

14%

13%

11%

11%

7%

7%

5%

4%

56%

32%

4%

6%

How will the Brexit negotiations between the EU27 and the UK impact your business?

2%

Very negative

Somewhat positive

Somewhat negative

Not clear (or prefer not to say)No impact

56%

32%

4%

6%


2%

Very negative

Somewhat positive

Somewhat negative


56%

32%

4%

6%


2%

Very negative

Somewhat positive

Somewhat negative



07

The drop of optimism observed in the second quarter following the Brexit referendum has somewhat recovered. Net optimism is today at the highest since the beginning of the year.

The majority of the CFOs expect to navigate in a slow growth environment in 2016: 25% of the respondents expect the economy to grow by only 0% to 0.4%, and a third of the surveyed CFOs expect a growth rate between 0.5% and 0.9%.

Expected economic growth in 2016

1,6% to 2%

1% to 1,5%

0,5% to 0,9%

0% to 0,4%

Less than 0%

Greater than 2%

25%

33%

24%

15%

2% 2%

Optimism recovered slightly from the Brexit vote

Mor

e op

timis

ticLe

ss o

ptim

istic

Net % of CFOs who are more/less optimistic about the financial prospects for their company

'10 Q4

'11 Q1

'11 Q2

'11 Q3

'11 Q4

'12 Q1

'12 Q2

'12 Q3

'12 Q4

'13 Q1

'13 Q2

'13 Q3

'13 Q4

'14 Q1

'14 Q2

'14 Q3

'14 Q4

'15 Q1

'15 Q2

'15 Q3

'15 Q4

'10 Q3

'10 Q2

'10 Q1

'09 Q4

'16 Q3

'16 Q2

'16 Q1

-80

-70

-60

-50

-40

-30

-20

-10

0

10

20

30

40

50

60

8%

-13%

11%17%

25%

44%40%

53%

26%

8%

-34%

-42%

-27%

-11%

-29%

-15%

34%30%

39%35%

8% 9%

23%24% 23%27%

12%12%


08

We have seen in the past that optimism and risk appetite are often correlated. This quarter the rise in optimism is again reflected in a rising risk appetite. Risk appetite now increased slightly but remains still lower than in the beginning of the year.

% of CFOs who think now is a good time to be taking greater risk onto their balance sheet

0%

10%

20%

30%

40%

50%

2016

Q3

2016

Q2

2016

Q1

2015

Q4

2015

Q3

2015

Q2

2015

Q1

2014

Q4

2014

Q3

2014

Q2

2014

Q1

2013

Q4

2013

Q3

2013

Q2

2013

Q1

2012

Q4

2012

Q3

2012

Q2

2012

Q1

2011

Q4

2011

Q3

2011

Q2

2011

Q1

2010

Q4

2010

Q3

2010

Q2

2010

Q1

2009

Q4

2009

Q3

2009

Q2

2009

Q1

31%

5%

23%

17%

31%

41%

17%

28%

21%

35% 35%

19%

14%

19%

24%22%

13%

30%

8%

21%21%

35%

41%

33%

40%

38%

42%44%

36%39%

23%

Around 70% of the surveyed CFOs expect revenues, cash flow and profit before taxes to grow over the next 12 months. Half or more of the surveyed CFOs expect margins, headcount and levels of cash and cash equivalents on the balance sheet to grow as well.

CFOs expectations on the evolution of the following metrics in the next twelve months

DecreaseThe sameIncrease

Financing costs

Inventory levels

Discretionary spending, for instance on travel, training and marketing

Operating costs

Levels of cash and cash equivalents on balance sheet

Headcount

Operating margins

Profit before taxes

Operating cash flow

Revenues 72% 9%

13%

11%

22%

21%

33%

30%

37%

60%

59%

19%

17%

22%

22%

25%

17%

24%

26%

19%

22%

70%

67%

56%

55%

50%

46%

37%

21%

19%


09

The general level of uncertainty remains stable. This quarter again, 50% of the surveyed CFOs rate the general level of external financial and economic uncertainty facing their business as high. The uncertainty on Brexit has not impacted the general level of uncertainty.

% CFOs rating the general level of external financial and economic uncertainty facing their business as high

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2016

Q3

2016

Q2

2016

Q1

2015

Q4

2015

Q3

2015

Q2

2015

Q1

2014

Q4

2014

Q3

2014

Q2

2014

Q1

2013

Q4

2013

Q3

2013

Q2

2013

Q1

2012

Q4

2012

Q3

2012

Q2

2012

Q1

2011

Q4

2011

Q3

2011

Q2

50% 50%

61%

85%85%

85%

77%

81%

82%

88%

79%

66% 63%

77%

63% 60%

56%

49%54%

69%

56%

49%

CFOs are positive about top-line growth. Only one fifth of the respondents believe their turnover/top-line will decrease over the next 12 months; 9% expect it to remain steady and the vast majority (71%) expect it to increase. 29% of respondents even think top-line will increase by more than 5%.

Increase with more than 5%

Increase between 2% and 5%


Same level

Decrease between 0% and 2%


Decrease with more than 5%

7% 9% 9% 21% 21% 29%4%

How do you expect your turnover/top-line to evolve in 2016?


10

Looking at the surveyed companies’ performance for the third quarter of 2016, 62% of corporates report being on budget or outperforming the financial budget. This is in line with third quarter results in 2014 and 2015.

Comparison of the surveyed organizations' actuals performance versus budget

‘13Q4

‘14Q1

‘14Q2

‘14Q3

‘14Q4

‘15Q1

‘15Q2

‘15Q3

‘15Q4

‘16Q1

‘16Q2

‘13Q3

‘16Q3

‘11Q4

‘12Q1

‘12Q2

‘13Q1

‘13Q2

‘12Q3

‘12Q4

Worse than expectedAs expectedBetter than expected

0%

20%

40%

60%

80%

100%

-60%

-50%

-40%

-30%

-20%

-10%

0%

10%

20%

35%

38%49%

37%

57%

45% 43%

57%

47%54% 52%

32%

32%

35%

44%

30%30%

36% 37%41%

30%

30%

32%29%

24%20%

25%

35%

8%

18%22%

15%

27%

40%

30% 31% 29%

37%32%

37%33%

37%

22% 39%

23%30%

22%35%

24%

32%

42%

28%

35%

24%

40%

33%

31%30%

26%

33%

-20%

-14%

-38%

-20%

-8%

-49%

-29%-32%

-37%

-5%

8%

-5%

-13%

-1%

6%

-4%-5% -5%

-9%

7%

Net %

Better than expected


11

The economic outlook, the competitive position in the market and the shortage of skilled labour are CFOs main concerns. For the first time since the launch of the survey, shortage of skilled labour has entered the top three concerns of CFOs. Concerns about the European Union’s stability have dropped with 28 percentage points since the second quarter.

70% of respondents prioritise an expansionary strategies over defensive strategies. The top three business priorities have not changed since last quarter: increasing productivity/efficiency, on-going cost control and organic growth.

Significant increase in planned capital expenditure

Concerns

Not a concernSomewhat a concernStrong concern

Access to capital/funding

Increasing sovereign risk

Monetary tightening

China's slow-down

Inflation risk

Deflation risk

Euro exchange rate

European Union Stability

Current geopolitical risks

Impact of Belgian financial & economic policy making

Eurozone stability

Changes in regulation

Shortage of (skilled) labour

Competitive position in the market

Economic outlook/growth 29%

34%

29%

20%

18%

9%

16%

20%

20%

5%

4%

4%

2%

2%

66%

46%

46%

55%

50%

59%

48%

39%

32%

32%

36%

29%

30%

30%

18%

5%

20%

25%

25%

32%

32%

36%

41%

48%

63%

64%

66%

66%

68%

80%

Business priorities

Not a prioritySomewhat of a priorityStrong priority

Raising dividends or share buy backs

Disposing of assets

Expanding by acquisition in Belgium

Increasing capital expenditure (CAPEX)

Reducing leverage

Increasing operating expenditure (OPEX)

Expanding by acquisition abroad

Increasing focus on sustainability programmes

Expanding into new markets

Introducing new products/services

Increasing cash flow

Cost Reduction

Organic Growth

On-going cost control

Increasing productivity/efficiency 73%

66%

61%

50%

50%

50%

48%

29%

23%

18%

11%

11%

7%

4%

4%

22%

34%

32%

36%

32%

29%

34%

48%

25%

9%

39%

32%

25%

14%

9%

5%

0%

7%

14%

18%

21%

18%

23%

52%

73%

50%

57%

68%

82%

88%

Business priorities

Not a prioritySomewhat of a priorityStrong priority

Raising dividends or share buy backs

Disposing of assets

Expanding by acquisition in Belgium

Increasing capital expenditure (CAPEX)

Reducing leverage

Increasing operating expenditure (OPEX)

Expanding by acquisition abroad

Increasing focus on sustainability programmes

Expanding into new markets

Introducing new products/services

Increasing cash flow

Cost Reduction

Organic Growth

On-going cost control

Increasing productivity/efficiency 73%

66%

61%

50%

50%

50%

48%

29%

23%

18%

11%

11%

7%

4%

4%

22%

34%

32%

36%

32%

29%

34%

48%

25%

9%

39%

32%

25%

14%

9%

5%

0%

7%

14%

18%

21%

18%

23%

52%

73%

50%

57%

68%

82%

88%


12

Increase with more than 10%



Same level


Decrease with more than 10%

47% 20% 13% 16%

2%2%

Capital Expenditures expectations

Several key indicators predicting investment behaviour are on the rise: capital expenditure continues to grow while headcount has been steadily high since the end of last year. Discretionary spending peaks again after a small drop in the second quarter.

Half of the survey correspondents (49%) plan to increase capital expenditure. Only 5 % of the correspondents expect their CAPEX to decrease in the next 12 months.

Net % of CFOs who expect Belgian corporates' capital expenditure, headcount, and discretionary spending to increase over the next 12 months

-20%

-10%

0%

10%

20%

30%

40%

50%

Capital Expenditure

Headcount

Discretionary Spending

2016Q3

2016Q2

2016Q1

2015Q4

2015Q3

2015Q2

2015Q1

2014Q4

2014Q3

2014Q2

2014Q1


13

In light of the recent government budget negotiations and debates during the execution of the survey, 9 out of 10 CFOs rate taxation policy as important, with labour market reforms and infrastructure following closely.

CFOs perceive the Belgian government continues to contribute to the positive development of business climate by setting the right priorities for financial and economic policy making.

The impact of the approved budget will be displayed in the final CFO survey of this year.

Strong expectations on taxation policy and labour market reforms

Net % of CFOs rating the governemt policies as important

0% 20% 40% 60% 80% 100%

Immigration policy

Urban & town planning

Financial regulation

Public expenditure

Energy policy

General levels of regulation affecting business

Monetary policy, including interest rates, inflation and the availability of credit (Eurozone policy)

Education & training

Infrastructure

Labour market

Taxation policy 89%

83%

77%

65%

61%

60%

51%

50%

43%

24%

15%

CFOs' net % perception of the way in which the Belgian government is setting the right priorities for financial and economic policy making

-80%

-60%

-40%

-20%

0%

20%

40%

60%

80%

2016

Q3

2016

Q2

2016

Q1

2015

Q4

2015

Q3

2015

Q2

2015

Q1

2014

Q4

2014

Q3

2014

Q2

2014

Q1

2013

Q4

2013

Q3

2013

Q2

2013

Q1

2012

Q4

2012

Q3

2012

Q2

2012

Q1

19% 25%31%

25%25%

64%59%

31% 33%

-33%

-52%

-29%

-46% -44%

-25%

-63%

-20%

-34% -27%


14

Net % of CFOs reporting the availability and cost of credit

-80%

-60%

-40%

-20%

0%

20%

40%

60%

80%

Available Costly

2016

Q3

2016

Q2

2016

Q1

2015

Q4

2015

Q3

2015

Q2

2015

Q1

2014

Q4

2014

Q3

2014

Q2

2014

Q1

2013

Q4

2013

Q3

2013

Q2

2013

Q1

2012

Q4

2012

Q3

2012

Q2

2012

Q1

2011

Q4

2011

Q3

2011

Q2

2011

Q1

2010

Q4

2010

Q3

2010

Q2

2010

Q1

2009

Q4

2009

Q3

2009

Q2

2009

Q1

All the main sources of financing are considered to be relatively attractive. The attractiveness of bank borrowing and corporate debt raise back after their drop in the second quarter, while equity and internal financing display a small decrease. All the main sources of financing are considered to be relatively attractive. The attractiveness of bank borrowing and corporate debt raise back after their drop in the second quarter, while equity and internal financing display a small decrease.

The Belgian CFOs continue to view credit as being available and cheap. The cost of credit decreases back to its value at the beginning of the year.

External sources of financing remain attractive

Net % of CFO rating the following sources of funding as attractive/unattractive

-40%

-20%

0%

20%

40%

60%

80%

100%

Internal Financing

Equity

Corporate debt

Bank Borrowings

2016

Q3

2016

Q2

2016

Q1

2015

Q4

2015

Q3

2015

Q2

2015

Q1

2014

Q4

2014

Q3

2014

Q2

2014

Q1

2013

Q4

2013

Q3

2013

Q2

2013

Q1

2012

Q4

2012

Q3

2012

Q2

2012

Q1

2011

Q4

2011

Q3

2011

Q2

2011

Q1

2010

Q4

2010

Q3

2010

Q2

2010

Q1

2009

Q4

2009

Q3

2009

Q2

2009

Q1


15

% of CFOs that wants to increase the usage of resources

0%

20%

40%

60%

80%

100%

Using internal financing

Raising bank borrowings

Raising corporate debt

Raising equity

14% 30% 45% 82%

As compared to the previous quarter, the usage of internal financing continues to strengthen its position as the most used financing option, while the usage of bank borrowings increases by 5 percentage points.


16

Belgium was the second European country to launch the CFO survey. Since the Belgian launch in 2009, the number of countries has expanded to cover most of the European Union. A part of the questions have been aligned across the different countries, allowing for a comparison of the results. For the third quarter 2016 Belgian CFOs are on average more optimistic than their EU peers regarding most indicators.

CFOs in Belgium are more optimistic (11%) on their financial prospects of their organisation as are their EU peers (-1%).

Belgium within the EU: on average more optimism

-35% -30% -25% -20% -15% -10% -5% 0 5% 10% 15% 20% 25% 30% 35%

Euro area

EU

Austria

Belgium

Finland

France

Germany

Ireland

Italy

The Netherlands

Poland

Portugal

Spain

Sweden

United Kingdom -31%

31%

20%

0%

0%

0%

-8%

18%

5%

7%

16%

11%

11%

4%

-1%

Net Optimism


17

Also, expectations on capital expenditure are significantly higher. With 45% of the surveyed CFOs expecting to increase capital expenditure, Belgium ranks the second highest while on average only 8% of the European CFOs expect an increase.

Similar results are observed regarding the net expectation of an increase in number of employees. 30% of the Belgian CFOs expect an increase in headcount, while on average only 4% of the European CFOsplan to increase the number of their employees.

-50% -40% -30% -20% -10% 0 10% 20% 30% 40% 50% 60% 70% 80%

Euro area

EU

Austria

Belgium

Finland

France

Germany

Ireland

Italy

The Netherlands

Poland

Portugal

Spain

Sweden

United Kingdom -50%

10%

20%

21%

34%

68%

8%

36%

-5%

26%

0%

45%

31%

22%

8%

Net Capex

-50% -40% -30% -20% -10% 0 10% 20% 30% 40% 50%

Euro area

EU

Austria

Belgium

Finland

France

Germany

Ireland

Italy

The Netherlands

Poland

Portugal

Spain

Sweden

United Kingdom -42%

2%

17%

-8%

15%

41%

19%

45%

-9%

13%

14%

30%

-4%

14%

4%

Net Headcount


18

Turnover < €100m€100m < Turnover < €999mTurnover > €1bn

16%

47%

36%

Companies' approximate turnover


16%

47%

36%



16%

47%

36%


% of revenues generated outside of Belgium

70% - 100%31% - 69%0% - 30%

31%

50%

19%


70% - 100%31% - 69%0% - 30%

31%

50%

19%


70% - 100%31% - 69%0% - 30%

31%

50%

19%

A total of 56 CFOs active in a variety of industries completed our 2016 third quarter survey. 16% of the participating companies have a turnover of over €1 billion, 47% of between €100 million and €1 billion, and 36% of less than €100 million. 50% of the participating companies derive up to 30% of their revenues from outside Belgium, 19% between 31% and 69%, and 31% derive more than 69% of their revenues from outside Belgium.

Profile of the Belgian third quarter participants

Business category of respondents

Energy, Utilities, Mining

Other (please specify below)

Transportation

Real Estate

Consumer Business (incl. transport&logistics, leisure&travel)

Construction

Life Sciences

Business & Professional Services

Financial Services

Technology, Media, Telecommunication

Manufacturing

20%

13%

13%

11%

11%

9%

9%

5%4%

4% 2%




Transportation

Real Estate


Construction

Life Sciences


Financial Services


Manufacturing

20%

13%

13%

11%

11%

9%

9%

5%4%

4% 2%




Transportation

Real Estate


Construction

Life Sciences


Financial Services


Manufacturing

20%

13%

13%

11%

11%

9%

9%

5%4%

4% 2%




Transportation

Real Estate


Construction

Life Sciences


Financial Services


Manufacturing

20%

13%

13%

11%

11%

9%

9%

5%4%

4% 2%


19


70% - 100%31% - 69%0% - 30%

31%

50%

19%


70% - 100%31% - 69%0% - 30%

31%

50%

19%

A note on methodologyNot all survey questions are reported in each quarterly survey. In response to the current financial economic situation survey questions will be selected. In case you participated to the survey and would like to receive information about non-reported questions 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 2016 third quarter survey took place between September 22th, 2016 and October 10th, 2016. A total of 56 CFOs completed our survey.

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.

Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee (“DTTL”), its network of member firms, and their related entities. DTTL and each of its member firms are legally separate and independent entities. DTTL (also referred to as “Deloitte Global”) does not provide services to clients. Please see www.deloitte.com/about for a more detailed description of DTTL and its member firms.

Deloitte provides audit, tax and legal, 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 has in the region of 225,000 professionals, all committed to becoming the standard of excellence.

This publication contains general information only, and none of Deloitte Touche Tohmatsu Limited, its member firms, or their related entities (collectively, the “Deloitte Network”) is, by means of this publication, rendering professional advice or services. Before making any decision or taking any action that may affect your finances or your business, you should consult a qualified professional adviser. No entity in the Deloitte Network shall be responsible for any loss whatsoever sustained by any person who relies on this publication.

© November 2016 Deloitte Belgium 4242

Documents

The Deloitte CFO Survey Third quarter edition 2016 · Q1 2015 Favourae usiness conditions give conﬁdence for expansion Q2 2015 “Solid mid-year ﬁnancials” Q3 2015 “Good performance