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
Latin American Business Outlook Duke University / FGV / CFO Magazine Mar 2014 2
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
Latin American Business Outlook Duke University / FGV / CFO Magazine Mar 2014 3
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.
Latin American Business Outlook Duke University / FGV / CFO Magazine Mar 2014 4
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
Mar 2013 Jun 2013 Sep 2013 Dec 2013 Mar 2014
-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
Europe Asia Latin America
Brazil Peru Chile
-5%
0%
5%
10%
15%
Historical Responses
Cap
ital S
pend
ing
Mar 2014 Response
Latin American Business Outlook Duke University / FGV / CFO Magazine Mar 2014 5
Mar 2013 Jun 2013 Sep 2013 Dec 2013 Mar 2014
-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
Mar 2013 Jun 2013 Sep 2013 Dec 2013 Mar 2014
-5%
0%
5%
10%
15%
Latin America United States EuropeAsia Africa United
StatesEurope Asia Latin
AmericaBrazil Peru Chile
0%
5%
10%
15%
United States
Europe Asia Latin America
Brazil Peru Chile0%
5%
10%
15%
Historical Responses
# F
T E
mpl
oyee
sW
ages
& S
alar
ies
Mar 2014 Response
Latin American Business Outlook Duke University / FGV / CFO Magazine Mar 2014 6
Mar 2013 Jun 2013 Sep 2013 Dec 2013 Mar 2014
-5%
0%
5%
10%
Latin America United States Europe
Asia Africa
Mar 2013 Jun 2013 Sep 2013 Dec 2013 Mar 2014
-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
Europe Asia Latin America
Brazil Peru Chile
-5%
0%
5%
10%
United States
Europe Asia Latin America
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
Latin American Business Outlook Duke University / FGV / CFO Magazine Mar 2014 8
United States
Europe Asia Latin America
Africa Brazil Peru Chile0%
5%
10%
15%
20%
25%
30%
35%
Plan to Acquire Cross-border Acquisition
Where will your cross-border acquisitions occur?
Latin American Business Outlook Duke University / FGV / CFO Magazine Mar 2014 9
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
Latin American Business Outlook Duke University / FGV / CFO Magazine Mar 2014 10
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?
Latin American Business Outlook Duke University / FGV / CFO Magazine Mar 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%
Latin American Business Outlook Duke University / FGV / CFO Magazine Mar 2014
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
Latin American Business Outlook Duke University / FGV / CFO Magazine Mar 2014 13
United States Latin America
Customer-orienta-tionIntegrityAdaptabilityCollaborationNear-term results orientationStrategic results orientation
Changes to Corporate Culture
Latin American Business Outlook Duke University / FGV / CFO Magazine Mar 2014 14
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
Latin American Business Outlook Duke University / FGV / CFO Magazine Mar 2014 15
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?
Latin American Business Outlook Duke University / FGV / CFO Magazine Mar 2014
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
Latin American Business Outlook Duke University / FGV / CFO Magazine Mar 2014 17
Latin American Business Outlook Duke University / FGV / CFO Magazine Mar 2014 18
Duke/FGV CFO Survey in Latin America Press
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