credit risk eng

credit risk 2013monitoring survey on the credit management tools used by companies

Rome, 9 January 2013 (2012-098fo B02)

Rome, 9 January 2013 | *2

agenda technical specifications

observed phenomena

methodology aspects

terms and conditions

1 |


technical specifications | eight years of studies on the tools used by companies for credit management

since 2006, Format has carried out every year a monitoring survey on credit management tools used by Italian companies.

the results of the monitoring study are transferred to subscribers of the survey for a fee.

customisations of the study can be arranged (e.g., analysis of survey areas of specific interest to a customer). Customisations lead to an increase in costs. The results of the customisations remain the property of the Client.

in 2013 the Monitoring Survey is expected to carry out a survey of firms in 13 European countries.


technical specifications | represented universe

• Sample survey, carried out with CATI telephone interviews(computer assisted telephone interviews).

Description of the universe of companies of interest :

• Italian companies - excluding:o farms,

o players in public administration,

o players in the financial sector,

o companies that work for cash

o companies with a single customer or operating only within their own group,

o companies that work exclusively for the public sector.

• legal form: corporations

• turnover between 2.5 million Euros and 149.9 million Euros

• size: companies with more than 10 employees

The sampling plan with reference to turnover is slightly different from previous years.*


technical specifications | analysis of companies

The sample of companies is stratified according to the following criteria

Territory

• North West (Valle d'Aosta, Piemonte, Liguria, Lombardia);

• North East (Trentino Alto Adige, Veneto, Friuli Venezia Giulia, Emilia-Romagna);

• Centre (Tuscany, Marche, Umbria, Lazio);

• South and Islands (Campania, Calabria, Abruzzo, Molise, Puglia, Basilicata, Sicily, Sardinia).

Size of companies (3 classes based on the number of employees).

• Small companies (10-49 employees)

• Medium-sized companies (49-249 employees)

• Large companies (over 249 employees)

The sample of companies is stratified according to the following criteria

• Territory

• Company size

• Sector of economic activity (manufacturing, trade, services)

• Company turnover (2.5 to 9.9 mil; 10 to 49.9 mil; 50 to 149.9 mil)


technical specifications | the "numbers" represented

Source: ISTAT (2001 census and subsequent updates).

Universo delle imprese (numero)

Da 2,5 a 9,9 MIL € Da 10 a 49,9 MIL € Oltre 50 MIL € Totale

Nord-Ovest 29743 11451 4095 45289

Nord-Est 12753 4633 1304 18690

Centro 18067 6066 1810 25943

Sud e Isole 20886 5630 1464 27980

ITALIA 81449 27780 8673 117902

Campione delle imprese (numero)

Da 2,5 a 9,9 MIL € Da 10 a 49,9 MIL € Oltre 50 MIL € Totale

Nord-Ovest 236 114 74 424

Nord-Est 39 40 31 110

Centro 137 90 49 276

Sud e Isole 73 73 44 190

ITALIA 485 317 198 1000

From 2.5 to 9.9 mil From 10 to 49.9 mil From 50 to 149.9 mil

From 2.5 to 9.9 mil From 10 to 49.9 mil From 50 to 149.9 mil


technical specifications | the survey in Europe

in 2013 the same topics addressed in Italy will be surveyed in 13 European countries:

17 sectors of economic activity (34 cases in each country)

total interviews: n°442 completed interviews (n°34 interviews per country)

France

Germany

Spain

United Kingdom

Switzerland

Hungary

The Netherlands

Poland

Czech Republic

Belgium

Sweden

Austria

Turkey



observed phenomena

methodology aspects

terms

2 |


observed phenomena | characterisation of the demand

Characterisation of the

demand

Level of knowledge of the

tools for credit

management

Level of use of the tools

for credit management

Means within the company

Financial instruments

Business Information

Credit Insurance

Debt collection

Law Office

Factoring

usersANALYSIS OF THE

USERS

-size

-turnover

-sector

-geographical area

Note: for non-users the

reasons for "non-use" are

analysed.


observed phenomena | services and competitors

Tools for credit

management

Level of knowledgeof

the single tools for credit

management

Policies of use of the

tools for credit

management

Competitors known and used:

-Notoriety

-Channels of knowledge

and information

Means within the company

Financial instruments

Business Information

Credit Insurance

Debt collection

Law Office

Factoring

competitors

Note:

A) analysis of the best

known and most widely used

competitors for each single

instrument for credit

management.

B) How businesses have

come to know the suppliers.

C) On what basis they have

been chosen.

D) Who chooses the

suppliers within companies

E) How businesses keep

each other informed about

suppliers.


observed phenomena | policies for credit management

How to use tools for

reducing the risk of

insolvency

Sales information:

-Prevention of financial risk

for the company

-Assessment of reliability of

new customers

-Prevention of risks of

commercial insolvency

Credit insurance:

-Assistance in the assumption

and management of trade

receivables

-Cover and compensation for

loss incurred (political risk)

-Cover and compensation for

loss incurred (economic risk)

-Prior assessment of

customer solvency

-On-going customer

monitoring

-Debt collection

Debt collection:

-Quick tax deductibility

-Reduction of times, costs

and workload

Factoring:

-Credit management and

collection

-Advance compensation

of credit transfers

-Taking the risk of default

on transferred debts



observed phenomena

methodology aspects

terms

4 |


methodology | technical aspects of the survey

• Contact Method - Respondents, recruited by telephone, are invited to fill in the surveyquestionnaire prepared on an encrypted site, with restricted access via password (CAWIsystem, Computer Assisted Web Interview). Questionnaire provided by Format. Thequestionnaires are drawn up in the respondents' languages.

• Source for the definition of the universe - National Institutes of Statistics for eachcountry of reference.

• Sample processing - The personal data of the survey sample are extracted using themost appropriate statistical techniques (systematic step) from official and recognisedstatistical sources. For the purposes of sample management two lists of master data arecreated: a basic sample list (n = sample size), and a reserve sample list (twice that ofthe basic sample), which is used for any master data replacements that may becomenecessary on the basic list.

• Reference person - The questionnaire will be administered at each statistical unit tothe "reference person", i.e. the one who due to the tasks carried out, classification orrole, will prove to be suitable more for the interview than others, in this case, CFO,Credit Manager, Managing Director or other individuals with similar roles.

• Data Processing - Implementation of frequency distributions (absolute unweightedvalues, weighted percentages) of all variables in the questionnaire crossed with thestudy domains of the sample. Results presented with statistical tables, synthesis graphs,double entry tables, longitudinal analysis of trends and conjuncture.


Methodology | How to transfer results

The results of the work are presented to customers, for each year of datacollection, using the following operating modes:

• The ITALIA macrodata database (double entry table). Document on DVD(MS Excel, SPSS).

• The EUROPE macrodata database (double entry table). Document onDVD (MS Excel, SPSS).

• Research Report for ITALY. Hardcopy report, and DVD (MS PowerPoint).The research report presents the results of the annual survey, analysed on anational scale and depending on the size of the companies and the businesssector in which they operate. The research report includes anycustomizations.

• Research Report for EUROPE. Hardcopy report, and DVD (MSPowerPoint). The research report presents the results of the annual survey,analysed on a national scale and depending on the size of the companies andthe business sector in which they operate and the markets/countryconsidered. The research report includes any customizations.



observed phenomena

methodological aspects

terms5 |


conditions | research budget, and purchase conditions

budget• It is possible to know the standard cost of research by contacting Format.• Any personalisations are listed from time to time with the customers.

timing• Release of the report by the end of April 2013.

Code of Conduct• ICC/ESOMAR Code on Market and Social Research. • Code of Conduct for the Association of Italian Market Research Institutes ASSIRM. • Italian Law on Privacy D.lgs 196/03.

rights• All rights for research are reserved. • Sale of research results is explicitly prohibited.

information: Mr. Daniel Serio

Phone: +39 06 86.32.86.81

Mobile: +39 345.33.97.685

E-mail: daniele.serio@ formatresearch.com


This document is the base for an oral presentation,

without which it has limited significance and may

give rise to misunderstandings.

Reproductions, albeit partial, of the content of this

document, are forbidden without previous written

authorization by Format.

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credit risk eng

Economy & Finance