deloitte belgium cfo survey report outlook 2018 edition · 2020. 7. 25. · q2 2010 “conﬁdence...

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Deloitte Belgium CFO Survey ReportOutlook 2018 Edition

CFO Survey | Outlook 2018 Edition

Outlook 2018: Ready for another solid year2017 was a good year for the Belgian corporate sector. CFOs had started the year with renewed optimism and had budgeted for growth with enthusiasm. At the end of the year close to half of CFOs reported their companies’ financial performance was even better as budgeted – significantly more than we have been able to report since the launch of the survey in 2009. Based on the results of the Outlook 2018 edition of the CFO survey, we conclude that 2018 will likely outperform the previous record year. But as always, there are a few things to carefully monitor as well throughout the year.

A solid platform for growth One year ago CFOs had a positive outlook for 2017. The initial shocks brought about by the unexpected Brexit vote in the UK and the US election results had subdued and companies had turned again to growth ambitions. The vast majority of CFOs expected top-line growth and higher profits, and they have not been disappointed: CFO optimism on the financial prospects of their organization remained significantly higher than in 2016 throughout the year. Reported levels of financial and economic uncertainty dropped to an historic low. And optimism was justified, as 48% of our survey panel reported 2017 performance has beaten the budgets.

The business environment evolved positively throughout the year. The National Bank of Belgium, the European Commission and the OECD increased their economic growth projections. Continued central bank’s quantitative easing policies kept interest rates low, and external funding attractive. After a sharp drop at the end of 2016 corporates gradually regained confidence in the current government’s ability to set the right priorities for financial and economic policy making and implement. As compared to one year ago, CFOs appreciation of taxation and labor market policies – the two most important policies for the future success of businesses according to CFOs - have surged.

2018: Better than 2017?

Our survey results indicate 2018 has the potential to outperform the previous year. Today, most of the CFO surveys growth indicators are higher than they were one year ago. Corporate growth plans are far from completed.

For a record 85% of CFOs, implementing expansionary strategies has priority over defensive strategies. Organic growth, productivity and digitalization are the top business priorities for 2018. Half of survey participants expect to (further) increase capital expenditure. 70% expect headcount to (further) increase over the next 12 months.

On average survey participants expect their companies’ turnover to grow by 4.1% in 2018. As such, CFOs are more bullish for the growth potential of their own organization as they are for the economy as a whole.

Things to watch out for Promising intentions are not without risk, and signs of trouble should be closely monitored and managed. As compared to the previous quarters, CFO optimism went down. Based on our Outlook 2018, here are 4 things to watch out for throughout the year that might hinder the realization of our outlook.

As growth plans are overall aggressive, CFOs biggest concern today is shortage of skilled labor to fuel that growth. As Central banks’ announced reduced quantitative easing, long term interest rates are likely to increase. Our survey results illustrate that credit conditions have already started to turn for the first time in years. Although CFOs look very favorably towards Belgian financial and economic policy making (and more in particular taxation and labor market policy), much of what is announced for 2018 still needs to pass the vote in the Parliament. Upcoming (local) elections might further complicate financial and economic policy making and implementation. In the fourth quarter optimism declined somewhat and uncertainty rose noticeably compared to the previous quarter. And although perceived uncertainty remains low, the list of international events for which the outcome is unpredictable remains long (German government coalition, Brexit, US and Chinese policy, Iran, migration, parliamentary elections in Hungary, Italy, Latvia, Luxembourg…).

The quarterly Deloitte CFO survey will continue to monitor these evolutions. In the Chinese year of the dog, we will let you know if these fleas appear in its fur.

Thierry Van SchoubroeckPartner


Based on CFO expectations on key financial metrics: 2018 has the potential to outperform the previous year

Outlook 2018: Ready for another solid year Outlook 2017: CFOs regained confidence

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

Increase with more than 5%

Increase between 2% and 5%


Same Level

Decrease between 0% and 2%


Decrease with more than 5%

Financing costs

Discretionary spending

Headcount

Operating margins

Profit before taxes

Capex (adjusted to scale)

Revenues

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

36%

34%

34%

15%15%25%

40%9% 9%

12%

12%

12%

14%

14%

18%

18%

18%

23% 23% 25%

25%

21%

21%

22%14% 14%41%

42%

53%

63%

35%

35%

28%

9%

9% 11%

9%

9%4% 4%

5%

5%

4%

4%

4%

4%

4% 4%

4%

4%

4%

4%

4%

4%4% 4%

3%3%6%

6% 10%

10%

10%

12%

12% 25% 25%

24%

18% 29% 22%

22% 16%

16%

16% 20%

20%

16%

41%

67%6%

2%

2%

2%2%

2%

2%

2%

2%

4,1%

Average increase Breakdown Average increase Breakdown

2,7%

2,2%

2,1%

2,0%

0,5%

0,0%

3,4%

1,8%

2,1%

1,7%

0,6%

-0,1%

0,0%


Things to watch out for in 2018Shortage of skilled Labour • 70% expect headcount to (further) increase over the next 12 months • The European Commission projects the Belgian unemployment rate at 7,3% for 2017 and this is expected to drop to 7,0% in 2018. For the Eurozone the unemployment rate is projected at 9,1% for 2017 and is expected to drop to 8,5% in 2018

• Shortage of skilled labour is now the biggest concern for CFOs; 98% of CFOs report concerns about shortage of skilled labour. This is up 30pp. compared to one year ago

• Eurostat reported the average Eurozone job vacancy rate at 1.9% in Q3 2017. The Belgian job vacancy rate was 3,6%, the second highest in the EU

Financial and economic policy making • After a sharp drop at the end of 2016 corporates gradually regained confidence in the current government’s ability to set the right priorities for financial and economic policy making

• Over the last year perceptions on appropriateness of taxation and labour policy have surged, whereas perceptions on appropriateness immigration policy, infrastructure policy and education & training policy have fallen

• However, much of what is announced for 2018 still needs to pass the vote in the Parliament

• Upcoming (local) elections might further complicate financial and economic policy making and implementation

Credit conditions • CFO appreciation of credit conditions was at its best this in 2017. In the second quarter perception of the overall costliness of new credit reached a new low, followed by a new high in perception of availability of new credit in Q3

• However, at year-end this trend seems to have turned. There is strong consensus among CFOs that interest rates will rise over the next 12 months

• Central banks have announced or are implementing tightened monetary policy

International eventsThis brief, non-exhaustive list of international events with unclear or unpredictable outcomes illustrates the uncertainties that corporates face and that could influence their business prospects: • German government coalition; at the date of writing there is strong skepticism about a new grand coalition in Germany

• Brexit, the focus has shifted from divorce terms to the future relationship between the UK and the EU

• Parliamentary elections in 2018 in Hungary, Italy, Latvia, Luxembourg • North America: stability of free trade agreements; US mid-term elections; • Tensions in the Korean Peninsula • The Iran–Saudi Arabia proxy conflict

Click on the dashboard frames to see a detailed overview


The macroeconomic backdrop to the Deloitte CFO Survey Q4 2017

The global recovery picked up pace in the second half of 2017, driven by faster growth in developed economies. The euro area saw a broad-based acceleration in growth across member nations, while Japan grew for the seventh successive quarter, its longest period of growth since 2001. Business and consumer confidence rose in the developed world, particularly in the euro area and the US.

Unemployment continued to decline globally, with the EU’s unemployment rate reaching its lowest level in nine years. Despite falls in unemployment, wage growth has picked up only modestly.

Central banks continued to tighten monetary policy during the final quarter of 2017. The European Central Bank announced that it would slow its quantitative easing programme. In moves which were widely anticipated by financial markets, the Bank of England raised interest rates for the first time in a decade and the US Federal Reserve raised rates for the fifth time since 2015.

Following elections in Germany, Angela Merkel’s ruling CDU/CSU coalition and the Social Democrats are in talks of a renewed ‘grand coalition’. Brexit talks achieved a breakthrough with the UK and EU agreeing a deal on the ‘divorce’ payment, paving the way for talks over future trading arrangements.

Ian Stewart, Deloitte UK Chief Economist

Deloitte CFO Survey Outlook 2018 Dashboard

For the Outlook 2018 edition we present the key CFO Survey indicators comparing the results from Q4 2017 with Q4 2016.

Financing options

Bank borrowing availability

Attractiveness bank borrowings

Bank borrowing costliness

Attractiveness corporate debt

Interest rate evolution

Attractiveness equity

Financial leverage Attractiveness internal financing

Business priorities

Expansionary focus

Top 3 CFOs’ priorities:

1. Organic growth2. Increasing productivity/

effectiveness3. Digitalisation

Capital expenditure growth

Headcount growth

Discretionary spending

Policies

Appropriateness of financial and economic policies

General environment

Optimism

Top 3 CFOs’ concerns:

1. Shortage of (skilled) labour

2. Current geopolitical risks

3. Competitive position in the market

Economic uncertainty

Risk appetite

Turnover growth

Belgian economic growth


Looking back:Outlook 2018: Ready for another solid year

Mor

e O

ptim

istic

Less

Opt

imis

tic

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”

Q4 2016“Optimism is close

to recent years’ highs”

Q2 2017“Optimistic business

sentiment acceleratesfocus on growth”

Q3 2017“Skilled labour

scarcity threatens growth prospects”

Q4 2017“Ready for another

solid year”

Q1 2017“Favourable business

environment drives expansion”

Q2 2016“Post Brexit

Vote Outlook”

Q3 2016“Persist

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

Looking Back: Favourable business environment drives expansionOptimism is close to recent years’ highs


Long term trends Taking a long term perspective we see that CFO expectations about financial metrics have gradualy but steadiliy risen over the last 3 years. CFOs are optimistic about the prospects of their organisations.

However, in the last quarter of 2017 we saw a clear drop in expectations for revenue growth, operating margins and profit before tax. Capex and headcount expectations remained high but the upwards trend is flattening out.

Throughout 2018 the quarterly Deloitte CFO survey will closely monitor these trends.

Revenue of growth expectations

0%

20%

40%

60%

80%

100%

12 Month Roling Revenues

‘15Q1

‘15Q2

‘15Q3

‘15Q4

‘16Q1

‘16Q2

‘16Q3

‘16Q4

‘17Q1

‘17Q2

‘17Q3

‘17Q4

Profit before taxes expectations

0%

20%

40%

60%

80%

100%

12 Month Roling Profit before taxes

‘15Q1

‘15Q2

‘15Q3

‘15Q4

‘16Q1

‘16Q2

‘16Q3

‘16Q4

‘17Q1

‘17Q2

‘17Q3

‘17Q4

Operating margins expectations

0%

20%

40%

60%

80%

100%

12 Month Roling Operating margins

‘15Q1

‘15Q2

‘15Q3

‘15Q4

‘16Q1

‘16Q2

‘16Q3

‘16Q4

‘17Q1

‘17Q2

‘17Q3

‘17Q4

Headcount expectations

0%

10%

20%

30%

40%

50%

60%

70%

80%

12 Month Roling Headcount

‘15Q1

‘15Q2

‘15Q3

‘15Q4

‘16Q1

‘16Q2

‘16Q3

‘16Q4

‘17Q1

‘17Q2

‘17Q3

‘17Q4

Capital expenditure expectations

0%

10%

20%

30%

40%

50%

60%

70%

12 Month Roling Capital expenditure

‘15Q1

‘15Q2

‘15Q3

‘15Q4

‘16Q1

‘16Q2

‘16Q3

‘16Q4

‘17Q1

‘17Q2

‘17Q3

‘17Q4

CFO Survey | Fourth quarter 2017 Edition

General environment

Optimism


Risk appetite

Turnover growth


Concerns

Actuals performance vs. budget


“CFOs remain in an optimistic mood albeit less than in the second half of 2017”

Mor

e op

timis

ticLe

ss o

ptim

istic

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

'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

'16 Q1

'16 Q4

'17 Q1

'17 Q2

'17 Q3

'17 Q4

'16 Q3

'16 Q2

-50%

-40%

-30%

-20%

-10%

0%

10%

20%

30%

40%

50%

60%

8%

-13%

11%

37%38%

49% 48%

34%

26%

8%

-34%

-42%

-27%

-11%

-29%

-15%

34%30%

39%35%

8% 9%

23%24% 23%27%

12%12%


General environment

Optimism


Risk appetite

Turnover growth


Concerns



“Financial and economic uncertainty: still navigating in calm waters”

% 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%

'17Q4

'17Q3

'17Q2

'17Q1

'16Q4

'16Q3

'16Q2

'16Q1

'15Q4

'15Q3

'15Q2

'15Q1

'14Q4

'14Q3

'14Q2

'14Q1

'13Q4

'13Q3

'13Q2

'13Q1

'12Q4

'12Q3

'12Q2

'12Q1

50% 50%

44%

33%

85%

85%

77%

22% 24%30%

82%

88%

79%

66%63%

77%

63% 60%56%

49%

54%

69%

56%

49%


General environment

Optimism


Risk appetite

Turnover growth


Concerns



“Appetite for risk weakens somewhat, but remains high”

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

0%

10%

20%

30%

40%

50%

60%

70%

80%

31%

39%

41%

69%

52%

45%

23%

31%

41%

28%21%

35% 35%

19%14%

19%

24%22%

13%

30%

8%

21% 21%

35%

41%

33%

40%

38%

42%44%

36% 39%

23%

'17 Q3

'17 Q4

'17 Q2

'17 Q1

'16 Q4

'16 Q3

'16 Q2

'16 Q1

'15 Q4

'15 Q3

'15 Q2

'15 Q1

'14 Q4

'14 Q3

'14 Q2

'14 Q1

'13 Q4

'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


General environment

Optimism


Risk appetite

Turnover growth


Concerns



“Topline growth expectations are bullish; with close to 80% of CFOs expecting more than 5% topline growth”

How do you expect your turnover/top-line to evolve over the next 12 months?

2% 4% 9% 9% 40% 36%


Increase between 6 % and 10%

Increase with more than 10%Same level


Decrease with more than 10%



General environment

Optimism


Risk appetite

Turnover growth


Concerns



“CFOs expect more bullish growth for their own organisations as they do for the Belgian economy as a whole”

11% 11%

19%

58%

What do you expect the economic growth in Belgium to be?

1% to 1,4%0% to 0,9% 1,5% to 1,9% 1,9% to 2,5%


General environment

Optimism


Risk appetite

Turnover growth


Concerns



“War for talent intensifies, and almost all CFOs are concerned about shortage of skilled labour”

CFO business concerns over the next 12 months

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

Increasing sovereign risk

Deflation risk

Access to capital/funding

Inflation risk

European Union Stability

China's slow-down

Euro exchange rate

Eurozone stability

Current geopolitical risks

Economic outlook/growth

Impact of Belgian financial & economic policy making

Competitive position in the market

Changes in regulation

Shortage of (skilled) labour

Not a concernSomewhat of a concernStrong concern

12%

43%

29%

14%

12%

30%

41%

28%

10%

4%

14%

33%

10%

4%

4%

2%

53%

55%

56%

60%

58%

66%

49%

72%

84%

51%

24%

50%

20%

32%

2%

35%

15%

26%

30%

16%

66%

46%

33%47%

64%


General environment

Optimism


Risk appetite

Turnover growth


Concerns



“Strong year-end financial performance: half of organisations have performed better as initially budgeted”

Comparison of the surveyed organisations' actuals performance versus budget

‘13Q4

‘14Q1

‘14Q2

‘14Q3

‘14Q4

‘15Q1

‘15Q2

‘15Q3

‘15Q4

‘16Q1

‘16Q2

‘13Q3

‘16Q3

‘16Q4

‘17Q1

‘17Q2

‘13Q1

‘13Q2

‘17Q3

‘17Q4

‘12Q4

Worse than expectedAs expectedBetter than expected

0%

20%

40%

60%

80%

100%

-50%

-40%

-30%

-20%

-10%

0%

10%

20%

Net %

Better than expected

38%

43%

57%

47%54% 52%

32%

32%

35%

45%

44%

30%30%

36%37% 41%

30%

30%

32%

44%

21%41%

29%

30%

30%

31%

30%

21%

40%48%

29% 62%

27%17%

35%

8%18%

22%

15%

27%

40%

30% 31% 29%

37%32%

37%33%

37%

22%35%

24%32%

42%

28%

35%

24%

40%

33%

31%30%

26%

33%

35%

-8%

-49%

-29%

-32%

-37%

-5%

8%

-5%

-13%

-9%

6%

-4% -5% -5%-4%

-17%

-9%

7%

-10%

10%

17%


Business priorities

Priorities

Capex, headcount and discretionary spending

Capex expectations

Metrics

“For 85% of CFOs expansionary strategies are on top of the agenda”

CFO business priorities over the next 12 months

Not a prioritySomewhat of a priorityStrong priority

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

Raising dividends or share buy backs

Reducing leverage

Disposing of assets

Increasing operating expenditure (OPEX)

Expanding by acquisition in Belgium

Increasing focus on sustainability programmes

Increasing capital expenditure (CAPEX)

Expanding by acquisition abroad

Cost Reduction

Expanding into new markets

Increasing cash flow

Hiring new talent

Introducing new products/services

On-going cost control

Digitalisation

Increasing productivity/efficiency

Organic Growth 75% 21%

2%

2%

4%

62% 24%

40%

42% 17%40%

51% 9%

34% 45% 21%

33% 42% 25%

25% 18% 57%

23% 47% 30%

19% 44% 37%

12% 29% 60%

9% 30% 60%

16% 76%8%

41% 53%

13%6%

6%

81%

56% 40%

51% 47%

50% 40% 10%

4%


Business priorities

Priorities


Capex expectations

Metrics

“Leading investment indicators remain strong”

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%

60%

70%

Capital Expenditure Headcount Discretionary Spending

3%

20% 22%

11%

14%

13%

33% 32%

39%

45%

41%

57% 57%

63%

51% 50% 48%

14%

35%

27%

53%

56%

12%

2%

11%

30%

32%

-7%

2%

28%30%

6%

17%

-11%

0%-5%

5%0%

-9%-10%

-2%

‘14Q3

‘14Q4

‘15Q1

‘15Q2

‘15Q3

‘15Q4

‘16Q1

‘16Q2

‘16Q3

‘16Q4

‘17Q1

‘17Q2

‘17Q3

‘17Q4


Business priorities

Priorities


Capex expectations

Metrics

“Two-thirds of CFOs expect to increase capital expenditure in 2018”

Capital Expenditures expectations

4% 2% 6% 25% 30% 11% 23%


Increase between 6 % and 10%

Increase with more than 10%Same level


Decrease between more than 10%



Business priorities

Priorities


Capex expectations

Metrics

CFOs' expectations on the evolution of the following metrics in the next 12 months

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

Inventory levels

Financing costs

Discretionary spending, for instance on travel, training and marketing

Levels of cash and cash equivalents on balance sheet

Operating cash flow

Operating margins

Operating costs

Profit before taxes

Headcount

Revenues

DecreaseThe sameIncrease

82% 6%

20%12%

12%

12%

14%

26% 16%

16%

67% 14%

22%20%

65%

63%

59%

25%

24%

16%

12%

70%

69%

58%

41%43%

20%

71% 14%16%


Financing options

Financial leverage

Attractivenes of funding sources

Usage of resources

Availability and cost of credit

Interest rates

Euro

Net % of CFOs who think Belgian corporate balance sheets are overleveraged/underleveraged

over

leve

rage

dun

derle

vera

ged

-100%

-60%

-20%

20%

60%

100%

9%2%

-11%-13% -11%

-10%

-10%-3%

-9%

0%

-7%

0%

-4%

0%

-22%

-15%

-17%-9%

-5%-10%

-13%-14%-5%

-19%-25%

-17% -17%

-13%

-14%-14%-8%

11%

‘13Q4

‘14Q1

‘14Q2

‘14Q3

‘14Q4

‘15Q1

‘15Q2

‘15Q3

‘15Q4

‘16Q1

‘16Q2

‘13Q3

‘16Q3

‘16Q4

‘17Q1

‘17Q2

‘13Q1

‘13Q2

‘17Q3

‘17Q4

‘12Q4

‘11Q4

‘12Q1

‘12Q2

‘12Q3

‘11Q3

‘11Q1

‘11Q2

‘10Q3

‘10Q1

‘10Q2

‘10Q4


Financing options

Financial leverage


Usage of resources


Interest rates

Euro

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

Attr

activ

eU

natt

ract

ive

‘13Q4

‘14Q1

‘14Q2

‘14Q3

‘14Q4

‘15Q1

‘15Q2

‘15Q3

‘15Q4

‘16Q1

‘16Q2

‘13Q3

‘16Q3

‘16Q4

‘17Q1

‘17Q2

‘13Q1

‘13Q2

‘17Q3

‘17Q4

‘12Q4

‘11Q4

‘12Q1

‘12Q2

‘12Q3

‘11Q3

‘11Q1

‘11Q2

‘10Q3

‘10Q1

‘10Q2

‘10Q4


Financing options

Financial leverage


Usage of resources


Interest rates

Euro

% of CFOs who want to increase the usage of resources

0

20%

40%

60%

80%

100%

Using internal financing

Raising bank borrowings

Raising corporate debt

Raising equity

23% 42% 45% 82%


Financing options

Financial leverage


Usage of resources


Interest rates

Euro

“External financing remains cheap and available, although the positive trend has reversed”

Net % of CFOs reporting the availability and cost of credit

-80%

-60%

-40%

-20%

0%

20%

40%

60%

80%

Available Costly

‘13Q4

‘14Q1

‘14Q2

‘14Q3

‘14Q4

‘15Q1

‘15Q2

‘15Q3

‘15Q4

‘16Q1

‘16Q2

‘13Q3

‘16Q3

‘16Q4

‘17Q1

‘17Q2

‘13Q1

‘13Q2

‘17Q3

‘17Q4

‘12Q4

‘11Q4

‘12Q1

‘12Q2

‘12Q3

‘11Q3

‘11Q1

‘11Q2

‘10Q3

‘10Q1

‘09Q4

‘10Q2

‘10Q4


Financing options

Financial leverage


Usage of resources


Interest rates

Euro

“Gradually strengthening monetary policy will likely increase interest rates somewhat”

Net % of CFOs expecting interest rates to increase in the next 12 months

0%

20%

40%

60%

80%

100%

32%

55%

48%

54%

38%

29%

46%

54%

81%

45%

47%

36%

30%

14%

20%

69%

51%

61%

40%

26%

43%

85%85%

77%

88%

83%

‘13Q4

‘14Q1

‘14Q2

‘14Q3

‘14Q4

‘15Q1

‘15Q2

‘15Q3

‘15Q4

‘16Q1

‘16Q2

‘13Q3

‘16Q3

‘16Q4

‘17Q1

‘17Q2

‘13Q1

‘13Q2

‘17Q3

‘17Q4

‘12Q4

‘11Q4

‘12Q1

‘12Q2

‘12Q3

‘11Q3


Financing options

Financial leverage


Usage of resources


Interest rates

Euro40%

60%

% of CFOs preferring a weak/strong Euro

Weaker Euro

Stronger Euro


Policies


Detailed appropriateness

Importance of government policies

“Corporates gradually regained confidence in financial and economic policy making”

Perception of a net % of CFOs of the way in which the Belgian governmentis setting the right priorities for financial and economic policy making

-80%

-60%

-40%

-20%

0%

20%

40%

60%

80%

19% 25%31%

25%25%

14%

12%

21%

33%

-3%

64%59%

31% 33%

-52%

-29%

-46% -44%

-63%

-20%

-34% -27%

2017

Q2

2017

Q1

2016

Q4

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

2017

Q4

2017

Q3


Policies




“As compared to one year ago, the perception of appropriateness of tax and labour market policies improved significantly”

2017 Q42016 Q4

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

Infrastructure

Urban & town planning

Energy policy

Public expenditure

General levels of regulation affecting business

Immigration policy

Labour market

Financial regulation

Taxation policy

Education & training

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

CFO's net perception about appropriateness of government policies

46%

-24%-6%

12%

12%

-44%

-17%

2%

-2%-19%

4%

-42%-39%

-41%-48%

-49%-31%

-54%-38%

-53%-63%

7%


Policies




“Labour market and taxation policies are deemed most important for the future success of business in Belgium”

Net % of CFOs rating the government policies as important

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

Immigration policy

Urban & town planning

Financial regulation

Public expenditure

General levels of regulation affecting business

Energy policy

Education & training

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

Infrastructure

Labour market

Taxation policy

90%

92%

73%

75%

49%

65%

77%

61%

60%

31%

43%

AuthorsThierry Van SchoubroeckPartner, Finance [email protected]

Wim Jansens Senior [email protected]

Thomas Backè[email protected]

Veronika Mü[email protected]

ContactsThierry Van SchoubroeckPartner, Finance [email protected]

Tom Van CauwenbergeFinance Lead, [email protected]

For current and past copies of the survey, please visit:

www.deloitte.be

Profile survey participants


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 2017 fourth quarter survey took place between December 7th 2017 and January 5th 2018. A total of 53 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.

Rules on the dashboard indicatorsThe following methodology was applied for the symbols and indicators used in the CFO survey dashboard: An upward arrow is displayed in case an indicator has increased with 5 or more percentage points since the previous survey. A downward arrow is used in case an indicator has decreased with 5 or more percentage points since the previous survey. The equals signs is used in case the indicator remained stable between these upper and lower thresholds. A green symbol is used in case the indicator, from a business perspective, displays a favourable trend or situation; a red colour is used in case the indicator displays an unfavourable trend or situation; a grey colour is in case of ambiguous or neutral outcomes.

16%

40%

44%

What was your company's approximate turnover last year?

Turnover>€1bn

€100mn < Turnover < €999mn

Turnover < €100mn

Other

Manufacturing

Financial Services

Technology, Media, Telecommunication)

Consumer business

(incl. transport & logistics, leisure&travel)

Life Sciences

Construction

Real estate

Energy, Utilities, Mining

Which category best describes your business?

4%

15%

13%11%

11%

9%

9%

11%

19%

45%

25%

30%

What percentage of revenues does your company derive from outside of Belgium?

0% - 30%

31% - 69%

70% - 100%

mailto:tvanschoubroeck%40deloitte.com?subject=

mailto:wjansens%40deloitte.com?subject=

[email protected]

mailto:tvancauwenberge%40deloitte.com?subject=

www.deloitte.be


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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.

© 2018 Deloitte Belgium

deloitte belgium cfo survey report outlook 2018 edition · 2020. 7. 25. · q2 2010 “conﬁdence...

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