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The Deloitte Belgium CFO Survey Q3 2019 Edition
CFO Survey | Q3 2019 Edition
Q3 2019: Navigating the geo-political waves and uncertainty
The uncertain economic and political environment has caught up with the CFO Survey participants. Optimism hits the lowest level we have witnessed since 2013. Geo-political risks are a key culprit of CFO pessimism. Survey participants have never expressed more concern about geo-political turmoil than today. Notwithstanding this sentiment, the indicators related to company performance, growth expectations and investment intentions remain overall strong. Survey participants are traditionally more optimistic about the prospect of their own organisation than about economic performance as a whole. But this quarter we see this gap widening.
Notwithstanding the scepticism towards the national and global political atmosphere, expectations related to revenue, operational margins and profits have once again increased. 53% of corporates expect to increase capital expenditure and 42% plan to increase their organisation’s headcount. Belgian CFOs focus on cost control, and organic growth to increase productivity and efficiency.
Expansion remains on the agenda, 62% of the survey participants plan to pursue enlargement strategies. Supporting this expansion plans are the positive evaluation of financing: the cost of credit decreased and companies are planning to increase corporate debt. For the first time since 2015, survey participants consider interest rate decreases more likely than interest rate increases. In September the ECB announced its decision to keep interest rates on hold and to restart its quantitative easing bond-buying programme as of November. But when asked about the appropriateness of EU monetary policy, negativity outweighed positive sentiments, which is a first since the launch of the Belgian CFO survey in 2009.
Five months after the elections in May, Belgium still does not have a new federal government, and the outlook to form a new coalition in the short term remains grim. As a consequence, confidence in the appropriateness of financial and economic policy making for the long term success of businesses in Belgium has plummeted further. Close to 60% of participants expressed a negative opinion about Belgian financial and economic policy making. When asked about the appropriateness of specific policy domains, not a single one displays a net-positive score. Highest on this list are taxation policy and Education and training at -10%. Energy policy scored lowest on this list at -45%.
This edition of the CFO survey includes a special topic on the inclusion of climate change strategies within the corporate strategy. CFOs report board members, management and employees as well as customers are exerting the most pressure on organisation to act on climate change. Less than 40% report feeling notable pressure from government or regulators. When it comes to actions, companies are especially looking at low-hanging fruit, being greening the fleet and increasing the efficiency of energy use. 4 in 10 report having corporate emission targets in place. When such emission targets exist they are almost always a formalised part of the corporate strategy or vision. However, only rarely are there any financial incentives for management attached to obtaining these goals.
In summary, Belgian CFOs are pessimistic about the general economic environment in which they navigate, but remain confident in the performance of their own organisations. The future will tell if and how these gaps in expectations will reconcile.
Thierry Van SchoubroeckPartner
Click on the dashboard frames to see a detailed overview
CFO Survey | Q3 2019 Edition
The macroeconomic backdrop to the Deloitte Q3 2019 Survey
The global economy continued to slow over the third quarter with the OECD and IMF downgrading their growth forecasts for 2019. This was due in part to the ongoing US-China trade dispute, which escalated in Augustas both countries announced new tariffs.
The economic impact of the trade dispute crystallised, with global trade volumes and manufacturing activity the hardest hit. Manufacturing output contracted in the US, the UK, Germany and Japan. German manufacturing has been particularly weak, sparking fears of a recession in the country.
The US Federal Reserve and the European Central Bank (ECB) both eased monetary policy in the face of the slowdown, cutting interest rates and, in the ECB’s case, restarting asset purchases. Financial markets reflected the deterioration in the outlook, with the yield on short-term US government debt rising above long-term yields, a so-called inversion of the US yield curve, which has preceded the previous seven US recessions.
Geopolitical tensions flared in the Middle East, with an attack on Saudi Arabian oil production facilities prompting a sharp spike in the oil price. In the UK, Brexit uncertainty remained elevated.
Ian Stewart, Deloitte UK Chief Economist
Deloitte CFO Survey Q3 2019 Dashboard
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. On-going cost control2. Organic growth3. Increasing productivity/
efficiency
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 geo-political risks
3. Changes in regulation
Economic uncertainty
Risk appetite
Turnover growth
Belgian economic growth
Climate change Special Topic:
Pressure to act on climate change, Corporate measures on climate change
CFO Survey | Fourth quarter 2017 Edition
General environment
Optimism
Economic uncertainty
Risk appetite
Belgian economic growth
Estimated Inflation (distribution)
Estimated Inflation (history)
Business concerns
Performance to Budget
CFO Survey | Q3 2019 Edition
“ Pessimism hits the lowest level since 2013 ”
Mor
e op
timis
ticLe
ss o
ptim
istic
Net % of CFOs who are more/less optimistic about the financial prospects for their company
-50%
-40%
-30%
-20%
-10%
0%
10%
20%
30%
40%
50%
60%
'19 Q3
'19 Q2
'19 Q1
'18 Q4
'18 Q3
'18 Q2
'18 Q1
'17 Q4
'17 Q3
'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
'09 Q3
'09 Q2
'09 Q1
-18%
22%
0%
17%
40%
53%
26%
8%
-34%
12%12%
-42%
-27%
-11%
-29%
-15%
34%37%
38%
49%48%
34%
20%
6%3%
-2%
-24%
-16%
-4%
30%
39%35%
8% 8%9%
24%27%
23% 23%
-13%
11%
44%
25%
CFO Survey | Fourth quarter 2017 Edition
General environment
Optimism
Economic uncertainty
Risk appetite
Belgian economic growth
Estimated Inflation (distribution)
Estimated Inflation (history)
Business concerns
Performance to Budget
CFO Survey | Q3 2019 Edition
% 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%
'19 Q3
'19 Q2
'19 Q1
'18 Q4
'18 Q3
'18 Q2
'18 Q1
'17 Q4
'17 Q3
'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
50% 50%
44%
33%
61%
85%
82%
22%24% 25%
53%50%
39%
46%
30%
39%43%
81%
88%85%85%
77%79%
69%63%
49%54%
56% 56%66%
63%
77%
60%
49%
CFO Survey | Fourth quarter 2017 Edition
General environment
Optimism
Economic uncertainty
Risk appetite
Belgian economic growth
Estimated Inflation (distribution)
Estimated Inflation (history)
Business concerns
Performance to Budget
CFO Survey | Q3 2019 Edition
“ CFOs risk appetite drops after signs of recovery from the last two quarters ”
% of CFOs who think now is a good time to be taking greater risk onto their balance sheets
5%
17%17%
21% 23%
28%31% 35%
41%
35%
19%
13%
19%
8%
14%
30%
24%
40%
39% 38%
23%
31%39%
43%
69%
52%
45%45%
41%
37%
21% 24%
28%
15%
21%
22%21%
35%
42%
33%
36%
41%44%
0
10
20
30
40
50
60
70
80
‘19 Q3
‘19 Q2
‘19 Q1
‘18 Q4
‘18 Q3
‘18 Q2
‘18 Q1
‘17 Q4
‘17 Q3
‘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
‘09 Q3
‘09 Q2
‘09 Q1
CFO Survey | Fourth quarter 2017 Edition
General environment
Optimism
Economic uncertainty
Risk appetite
Belgian economic growth
Estimated Inflation (distribution)
Estimated Inflation (history)
Business concerns
Performance to Budget
CFO Survey | Q3 2019 Edition
“ CFOs are cautions concerning Belgian economic growth. ”
32%
9%6%
53%
What do you expect the economic growth in Belgium to be in 2019?
1,9% to 2,5%
Greater than 2,5%
1,5% to 1,9%
1% to 1,4%
0% to 0,9%
Less than 0%
CFO Survey | Fourth quarter 2017 Edition
General environment
Optimism
Economic uncertainty
Risk appetite
Belgian economic growth
Estimated Inflation (distribution)
Estimated Inflation (history)
Business concerns
Performance to Budget
CFO Survey | Q3 2019 Edition
Estimated inflation (ditribution)
0%
10%
20%
30%
40%
50%
60%
70%
<0% 0,0% 0,6% 1,1% 1,6% 2,1% 2,6% >3,0% 0,5% 1,0% 1,5% 2,0% 2,5% 3,0%
Eurozone Belgium
CFO Survey | Fourth quarter 2017 Edition
General environment
Optimism
Economic uncertainty
Risk appetite
Belgian economic growth
Estimated Inflation (distribution)
Estimated Inflation (history)
Business concerns
Performance to Budget
CFO Survey | Q3 2019 Edition
Estimated inflation (history)
0,0
0,2
0,4
0,6
0,8
1,0
1,2
1,4
1,6
1,8
2,0
Eurozone Belgium
2018 Q3 2018 Q4 2019 Q1 2019 Q2 2019 Q3
CFO Survey | Fourth quarter 2017 Edition
General environment
Optimism
Economic uncertainty
Risk appetite
Belgian economic growth
Estimated Inflation (distribution)
Estimated Inflation (history)
Business concerns
Performance to Budget
CFO Survey | Q3 2019 Edition
“ As Shortage of (skilled) labour remains a top concern, the Current geopolitical risks jumps to second place ”
CFO business concerns over the next 12 months
0% 20% 40% 60% 80% 100%
Deflation risk
China’s slow-down
Increasing sovereign risk
Euro exchange rate
European Union Stability
Access to capital/funding
Impact of Belgian financial & economic policy making
Monetary policy
Eurozone stability
Inflation risk
Competitive position in the market
Economic outlook/growth
Changes in regulation
Current geopolitical risks
Shortage of (skilled) labour
Not a concernSomewhat of a concernStrong concern
69% 25% 6%
32% 50% 18%
32% 35% 32%
26% 65% 9%
24% 53% 24%
18% 21% 62%
15% 71% 15%
15% 38% 47%
12% 56% 32%
12% 21% 68%
9% 68% 24%
9% 42% 50%
9% 35% 56%
9% 32% 59%
3% 21% 76%
CFO Survey | Fourth quarter 2017 Edition
General environment
Optimism
Economic uncertainty
Risk appetite
Belgian economic growth
Estimated Inflation (distribution)
Estimated Inflation (history)
Business concerns
Performance to Budget
CFO Survey | Q3 2019 Edition
“ Survey participants observe a positive performance of the actuals ”
Comparison of the surveyed organisations' actuals performance versus budget
‘13Q4
‘14Q1
‘14Q2
‘14Q3
‘14Q4
‘15Q1
‘15Q2
‘15Q3
‘15Q4
‘16Q1
‘16Q2
‘16Q3
‘16Q4
‘17Q1
‘17Q2
‘17Q3
‘17Q4
‘18Q1
‘18Q2
‘18Q3
‘18Q4
‘19Q1
‘19Q2
‘19Q3
Worse than expectedAs expectedBetter than expected
0%
20%
40%
60%
80%
100%
Net %
38%
52%
32%32%
35%45%
30%30% 36%
37%41%
30%
30%
32%
44%
21%
41%
29%
30% 30%
37%
30%
31%
20%
39%
30% 50%24%
39%
36%
25%
33% 33%
36%
20%
31%
47%
41%
35%
24%
42%
33%
24%
21%
40%48%
29%
62%
27%17%15%
27%
40%30% 31%
29%
37%32%
37%33%
37%
32%
42%
28%
35%
24%
40%33%
31% 30%26%
33%
-37%
9%
-5%
8%
-5%
-13%
-9%
6%
-4% -5%
-9%
7%
-5%
-17%
-4%
-10%
10%
17%
11%
-1%
4%
13%
7%
-3%
CFO Survey | Q3 2019 Edition
Business priorities
Priorities
Business Strategy
Evolution of Business priorities
Capex, headcount anddiscretionary spending
Capex expectations
Revenue expectations over the next 12 months
Business metrics
“ On-going cost control and Organic Growth steer the priorities of the surveyed organisations ”
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
Increasing operating expenditure (OPEX)
Disposing of assets
Increasing capital expenditure (CAPEX)
Expanding by acquisition abroad
Reducing leverage
Expanding by acquisition in Belgium
Expanding into new markets
Increasing focus on sustainability programmes
Increasing cash flow
Digitalisation
Introducing new products/services
Hiring new talent
Increasing productivity/efficiency
Organic Growth
On-going cost control 29%71%
26% 3%
3%
71%
29%68%
26% 9%65%
29% 9%62%
32% 9%59%
50% 9%41%
26% 35%38%
12% 68%21%
44% 38%18%
29% 56%15%
32% 56%12%
24% 65%12%
24% 74%3%
12% 85%3%
38% 3%59%
CFO Survey | Q3 2019 Edition
Business priorities
Priorities
Business Strategy
Evolution of Business priorities
Capex, headcount anddiscretionary spending
Capex expectations
Revenue expectations over the next 12 months
Business metrics
Consolidate/defensive strategies
38%
62%
Which strategy is currently highest on your priority list?
Implement expansionary strategies
CFO Survey | Q3 2019 Edition
Business priorities
Priorities
Business Strategy
Evolution of Business priorities
Capex, headcount anddiscretionary spending
Capex expectations
Revenue expectations over the next 12 months
Business metrics
Business Priority
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
19'Q3 19'Q2 19'Q118'Q418'Q318'Q2 18'Q1 17'Q4 17'Q3 17'Q2 17'Q1 16'Q4 16'Q3 16'Q2 16'Q1 15'Q4
76%
24%
37% 37%
30%
38%
21%24% 24%
15%
32%
39%
37%
44%
34% 31% 38%
63%63%
70%
62%
79%
76% 76%
85%
68% 61% 63%
56%
66%69%
62%
Expansion Defensive
CFO Survey | Q3 2019 Edition
Business priorities
Priorities
Business Strategy
Evolution of Business priorities
Capex, headcount anddiscretionary spending
Capex expectations
Revenue expectations over the next 12 months
Business metrics
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%33%39%
45%
41%
57%57%
63%
51%
50%
48%
36%
11%
35%
26%25%
50%
37%
9%
27%
53%
46%48%49%
67%
44%
42% 42%
11%3%
48%53%
58%
19%
56%
14%
2%
20%
12%
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
‘18Q1
‘18Q2
‘18Q3
‘19Q1
‘19Q2
‘19Q3
‘18Q3
CFO Survey | Q3 2019 Edition
Business priorities
Priorities
Business Strategy
Evolution of Business priorities
Capex, headcount anddiscretionary spending
Capex expectations
Revenue expectations over the next 12 months
Business metrics
“ 68% of the participants expect an increase in capital expenditures over the next 12 months ”
CAPEX expectations over the next 12 months
15% 15% 38% 18% 6%9%
Increase between 6% and 10%
Increase between 1% and 5%
Same Level
Decrease between 1% and 5%
Decrease between 6% and 10%
Decrease with more than 10%Increase with more than 10%
CFO Survey | Q3 2019 Edition
Business priorities
Priorities
Business Strategy
Evolution of Business priorities
Capex, headcount anddiscretionary spending
Capex expectations
Revenue expectations over the next 12 months
Business metrics
Revenue expectations over the next 12 months
3% 15%3% 9% 12% 58%
Decrease with more than 5%
Decrease between 2% and 5%
Decrease between 0% and 2%
Same level Increase with more than 5%
Increase between 0% and 2%:
Increase between 2% and 5%
CFO Survey | Q3 2019 Edition
Business priorities
Priorities
Business Strategy
Evolution of Business priorities
Capex, headcount anddiscretionary spending
Capex expectations
Revenue expectations over the next 12 months
Business metrics
How are the following key metrics for your company likely to change over the next 12 months?
0% 20% 40% 60% 80% 100%
IncreaseSame levelDecrease
6%
13%
24% 21%
18%
24%
3%
15% 21%
22%6%
21% 27%
15% 27%
15% 18%
33%
55%
61%
9%
32%
85%
55%
55%
21%
21%
64%
64%
72%
21%
58%
68%Capex
Headcount
Inventory levels
Levels of cash and cash equivalents on balance sheet
Operating cash flow
Profit before taxes
Financing costs
Discretionary spending, for instance on travel, training and marketing
Operating costs
Operating margins
Revenues
CFO Survey | Q3 2019 Edition
Financing options
Usage of resources
Attractiveness
Interest rates
Euro
Cost of credit
Expected Interest rate
% of CFOs who intend to increase financing source
0%
20%
40%
60%
80%
100%
internal financingbank borrowing (credit)corporate debtequity
45% 58% 64% 85%
CFO Survey | Q3 2019 Edition
Financing options
Usage of resources
Attractiveness
Interest rates
Euro
Cost of credit
Expected Interest rate
Attractiveness of funding sources
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Negative
Neutral
Positive
bank borrowing (credit)
corporate debt
equity
internal financing 4%32%
19%44%
7%
4%64%
7%87%
64%
37%
32%
CFO Survey | Q3 2019 Edition
Financing options
Usage of resources
Attractiveness
Interest rates
Euro
Cost of credit
Expected Interest rate
Net % of CFOs expecting interest rates to increase in the next 12 months
-20%
0%
20%
40%
60%
80%
100%
14%
33% 39%
46%
27%
18%
39%
47%
80%
38%
40%
13%
8%1%
-8%
66%
47%
61%
40%
11%
38%
85%85%
77%
93%
90%89%
72%
34%
23%
-3%
88%
83%
‘13Q4
‘14Q1
‘14Q2
‘14Q3
‘14Q4
‘15Q1
‘15Q2
‘15Q3
‘15Q4
‘16Q1
‘16Q2
‘13Q3
‘16Q3
‘16Q4
‘17Q1
‘17Q2
‘13Q1
‘13Q2
‘17Q3
‘17Q4
‘18Q1
‘18Q2
‘18Q3
‘18Q4
‘19Q1
‘19Q2
‘19Q3
‘12Q4
‘11Q4
‘12Q1
‘12Q2
‘12Q3
‘11Q3
CFO Survey | Q3 2019 Edition
Financing options
Usage of resources
Attractiveness
Interest rates
Euro
Cost of credit
Expected Interest rate
28%
72%
% of CFOs preferring a weak/strong Euro
Weaker Euro
Stronger Euro
CFO Survey | Q3 2019 Edition
Financing options
Usage of resources
Attractiveness
Interest rates
Euro
Cost of credit
Expected Interest rate
Net % of CFOs reporting the availability and cost of credit
‘13Q4
‘14Q1
‘14Q2
‘14Q3
‘14Q4
‘15Q1
‘15Q2
‘15Q3
‘15Q4
‘16Q1
‘16Q2
‘13Q3
‘16Q3
‘16Q4
‘17Q1
‘17Q2
‘13Q1
‘13Q2
‘17Q3
‘17Q4
‘18Q1
‘18Q2
‘18Q3
‘18Q4
‘19Q1
‘19Q2
‘19Q3
‘12Q4
‘11Q4
‘12Q1
‘12Q2
‘12Q3
‘11Q3
‘11Q1
‘11Q2
‘10Q3
‘10Q1
‘10Q2
‘10Q4
-80%-70%-60%-50%-40%-30%-20%-10%
0%10%20%30%40%50%60%70%80%
Available Costly
“ Credit remains cheap and available ”
CFO Survey | Q3 2019 Edition
Financing options
Usage of resources
Attractiveness
Interest rates
Euro
Cost of credit
Expected Interest rate
“ Interest rates are expected to remain stable over the next 12 months ”
Decrease significantlyDecrease somewhat
No changeIncrease somewhat
25%25%
47%
3%
Expected Interest rate evolution over the next 12 months
CFO Survey | Q3 2019 Edition
Policies
Government perception
Importance of policies
“ With a caretaker federal Government in place and the uncertainty of the ongoing negotiations, confidence in appropriate financial and economic policy making continues to decline. ”
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%
31%
25%
25%14%
12%
21%21%
11%14%
-7%
-23%
-57%
24%
33%
-3%
64%59%
33%
-52%
-46%-44%
-63%
-21%
-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
2018
Q1
2018
Q2
2018
Q3
2018
Q4
2019
Q1
2019
Q2
2019
Q3
2017
Q3
2017
Q4
CFO Survey | Q3 2019 Edition
Policies
Government perception
Importance of policies
Net % of CFOs rating the government policies as important
0% 20% 40% 60% 80% 100%
Immigration policy
General levels of regulation affecting business
Urban & town planning
Public expenditure
Climate and environmental policy
Infrastructure
Financial regulation
Education & training
Monetary policy, including interest rates, inflation and the availability of credit (Eurozone policy)
Energy policy
Taxation policy
Labour market
70%
83%
63%
67%
53%
47%
63%
70%
60%
60%
20%
46%
CFO Survey | Q3 2019 Edition
Special Topics
Pressure to act
Corporate measures on climate change
Corporate strategy on Climate Change
“ The pressure for climate change action is performed mainly by the agents closer to the core of the company ”
From whom and to what extent do companies feel pressure to act on climate change
Not at all To a small extent To a moderate extent To a large extent
20%
36%
25%
16%
31%
24%
31%
15%
25%
24%
18%
18%
13% 20%
18% 9%
15%
15%
18%
29%
18%
15%
25%
31%
33%
18%
22%
0 20 40 60 80 100
Banks/lenders
Competitors
Shareholders/investors
Regulators/government
Civil society (e.g. activists, media)
Employees
Clients/customers
Board members/ management
66%
34%
25%
28%
25%
3%
16%
13%
48%
34%
38%
31%
38%
34%
31% 25%
39% 10%
9%
9%
41%
41%
31%
25% 13%
28% 9%
19%
3%
16% 19%
CFO Survey | Q3 2019 Edition
Special Topics
Pressure to act
Corporate measures on climate change
Corporate strategy on Climate Change
Corporate measures on climate change
Not at all To a small extent To a moderate extent To a large extent
0% 20% 40% 60% 80% 100%
Relocate plants and machineries in areas less prone to extreme weather events
Purchase insurance coverage against extreme weather risks
Offset carbon emissions, e.g. by buying carbon credits
Renew facilities to make them resistant to extreme weather events
Include management and monitoring of climate risks in corporate governance processes
Reduce carbon emissions in the upstream supply chain and/or in logistics
Reduce travel (car / air miles)
Shift operational energy usage towards renewable energy sources
Use energy-efficient or climate-friendly machinery, technologies and equipment
Develop new climate-friendly products and services
Assess the risks of climate change for the business
Increase the efficiency of energy use (e.g. energy efficiency in buildings)
Greening the fleet (hybrid / electric) 6%
6%
16%
19%
16%
19%
16%
30%
22%
45%
50%
70%
74%
26%
31%
29%
34%
31%
38%
23%
38%
35%
31%
23%
23%
42%
34%
42%
38%
31%
34%
27%
31%
16%
9%
7%
3%
26%
19%
10%
13%
19%
13%
20%
9%
3%
5%
25% 47% 22%
CFO Survey | Q3 2019 Edition
Special Topics
Pressure to act
Corporate measures on climate change
Corporate strategy on Climate Change
Corporate emission targets
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
We have emission targets in line with the Paris agreement
Don’t know
We have our own emission targets
We do not have emission targets in place 50%
9%
6%
34%
Yes
Company's vision towards Climate Change
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Financial incentives to (senior) management are linked to climate goals
Emission goals are a formalised part of the corporate strategy / vision
Climate change risks and opportunities are part of the non-financial disclosure
Yes No
3% 97%
34%
44% 56%
66%
AuthorsThierry Van SchoubroeckPartner, Finance [email protected]
Wim Jansens Senior [email protected]
Luis Fernandes [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 participantsCFO Survey | Q1 2019 Edition
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 2019 third quarter survey took place between September 16, 2019 and September 30, 2019. A total of 34 CFOs completed the 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 equal signs are 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.
15%
38%
47%
What was your company's approximate turnover last year?
Turnover < €100mn€100mn < Turnover < €999mnTurnover > €1bn
Which category best describes your business?
9%
12%
9%
3%
9%12%
12%
6%
15%
6%3% 3%
Business & Professional Services
Other
Transport & logistic
Construction
Technology, Media, Telecommunication
Life Sciences
Industrial products & services Financial Services
Consumer goods
Other
Retail
Public Sector
Energy, Utilities, Mining
45%
30%
25%
What percentage of revenues does your company derive outside of Belgium?
0% - 30%
31% - 69%
70% - 100%
52%
42%
6%
What percentage of revenues does your company derive outside of Belgium?
0% - 30%
31% - 69%
70% - 100%
CFO Survey | Q3 2019 Edition
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