gearing up for growth central europe cfo survey 2015 · gearing up for growth central europe cfo...

Gearing up for growthCentral Europe CFO Survey 2015

2015 results | 6th editionRomania

© 2015 Deloitte Central Europe2

This issue of the Deloitte CFO Survey provides some positive results and expectations, but it also suggests that the Romanian financial environment remains difficult. As Romania’s economic fundamentals improve – and moderate economic growth is expected in the medium term – CFOs should balance their focus in order to benefit from the overall improvement in the economic environment. They should also, however, continue to keep a close eye on external risks.


I am pleased to present the results of the sixth edition of the Deloitte Central Europe CFO Survey for Romania. This report focuses on the views of survey participants on a range of key economic and financial factors influencing finance executives and their companies. The report also compares the business sentiment of CFOs from countries across the region (Albania, Bulgaria, Croatia, the Czech Republic, Estonia, Hungary, Kosovo, Latvia, Lithuania, Poland, Romania, Serbia, Slovakia and Slovenia).

This issue of the Deloitte CFO Survey provides some positive results and expectations, but it also suggests that the Romanian financial environment remains difficult. As Romania’s economic fundamentals improve – and moderate economic growth is expected in the medium term – CFOs should balance their focus in order to benefit from the overall improvement in the economic environment. They should also, however, continue to keep a close eye on external risks.

The Deloitte CFO Survey identifies the main priorities and concerns envisioned by senior finance managers in Romania, and I hope that you will find it both interesting and useful. I would also like to take the opportunity to invite you to participate in our next survey to be held in October/November 2015.

Introduction

Introduction

1 Macroeconomic Insight

2 About the sixth Deloitte CE CFO Survey

3 Key findings

4 Growth

5 Risk

6 Debt

7 Financing

8 Talent

Contents

Ahmed HassanCountry Managing PartnerDeloitte Romania

About the sixth Deloitte CE CFO Survey



1

2

3

4

5

6

7

8

PL

RO

BG

CZ

HR

LT

LV

EE

SK

HUSI

RS

RKS

AL

This report compares the expectations of CFOs from 14 Central European economies (Albania AL, Bulgaria BG, Croatia HR, the Czech Republic CZ, Estonia EE, Hungary HU, Kosovo RKS, Latvia LV, Lithuania LT, Poland PL, Romania RO, Serbia RS, Slovakia SK and Slovenia SI). It is based on the answers of 550 CFOs from a broad range of industries who responded to our survey in October and November 2014. The survey captures shifts in CFOs’ opinions on factors including risk, GDP growth and financing priorities. It has become a benchmark for agile decision-making that takes into account the financial attitudes of major corporations across Central Europe.


Key Findings


1

2

3

4

5

6

7

8

The attractiveness of bank borrowing, as well as expectations for companies’ greater ability to service their debt over the next three years, has improved since the last survey. These developments are most likely attributable to falling interest rates and banks’ efforts to resume lending in the corporate sector, as well as a general improvement in the economic environment and in the financial position of Romanian companies.

Key findings

Confidence regarding economic growth and company prospects continued to improve slightly over the course of 2014. 100% of participating Romanian CFOs are confident there will be positive economic growth in 2015; they are also the second most optimistic in the region, after Poland, as regards GDP expanding by over 3%.

CFOs’ views on their companies’ prospects have further improved during the course of 2014, with only 12% of participants being less optimistic than six months before. These results are largely aligned with expectations for economic development; in the case of Romania, they may also be attributable to further improvements in the political environment.


1

2

3

4

5

6

7

8

58% of participants consider external economic and financial uncertainties to be at normal or above normal levels, which represents an improvement in the level of external uncertainties perceived by CFOs. The increasing distance from the peak of the European debt crisis, general improvements in the business environment and, in the case of Romania, an improvement in the political environment might all have contributed to these results.

Key findings

The results also suggest that CFOs’ goals have become clearer as companies have made progress in prioritising their initiatives for 2015. Growing revenues from their current markets has emerged as the most important focus area for companies. Reducing direct and indirect costs also continues to represent a key priority, while new investments are still a disappointingly low priority.

Approximately one third of CFOs in Romania expect talent shortages in the finance area in the next 12 months, especially at senior and management levels.

In 2014, Romanian CFOs’ views regarding M&A activity became largely aligned with those of their Central European peers, as the results from the last survey showed a more pessimistic view.

GrowthModerate growth expected



1

2

3

4

5

6

7

8

Growth

Moderate growth expected

The confidence of Romanian CFOs regarding economic growth and the prospects of their own companies continued to improve over the course of 2014.

All local survey participants expect economic growth to continue in 2015 (with no expectations of recession). This is in line with developments in other countries across the CE region such as the Czech Republic, Slovakia and Poland.

Although most CFOs expect economic growth to be in the range of 0% to 3%, Romanian participants are the second most optimistic in the region after Poland – 3.8% of the interviewed CFOs in Romania expected GDP to grow in excess of 3% in 2015. Conversely, none of the local participants in the previous two CFO Surveys expected economic growth to exceed 3% in 2014.

Graph 1Local CFO’s expectations for Romanian GDP growth in 2014/2015

5th CFO Survey

6th CFO Survey

0%

10%

20%

30%

40%

50%

60%

70%

Growth(>3%)

Moderategrowth

(1,5-3%)

Stagnation(0-1,5%)

Recession

0%

10%

20%

30%

40%

50%

60%

Lessoptimistic

UnchangedSomewhatoptimistic

Veryoptimistic

0%

10%

20%

30%

40%

50%

NormalAbove normalHighVery high

0%

10%

20%

30%

40%

50%

60%

Decreasea lot

Decreasea little

Remainthe same

Increasea little

Increasea lot

0%

10%

20%

30%

40%

50%

60%

Decreasesignificantly

Decreasesomewhat

Remainthe same

Increasesomewhat

Increasesignificantly

0%

10%

20%

30%

40%

50%

Toplevel

Seniorlevel

Middlelevel

Juniorlevel

Graduatelevel

0%

10%

20%

30%

40%

50%


Decreasesomewhat

NeutralIncreasesomewhat


0%

10%

20%

30%

40%

50%

60%

UnattractiveNeither attractivenor unattractive

Attractive

0%

10%

20%

30%

40%

50%

60%

Lessoptimistic


Veryoptimistic

0%

20%

40%

60%

80%

100%

4th CFO Survey5th CFO Survey6th CFO Survey

0%

20%

40%

60%

80%

100%


0%

20%

40%

60%

80%

100%


0%

20%

40%

60%

80%

100%

HRBGSKHUCZRO

0%

20%

40%

60%

80%

100%

HRBGSKHUCZPLRO

0%

20%

40%

60%

80%

100%

SKPLHUCZHRBGRO

0%

10%

20%

30%

40%

50%

60%

HRBGSKHUCZPLRO

0%

10%

20%

30%

40%

50%

60%

70%

HRBGSKHUCZPLRO

0 20 40 60 80 100

Revenue growth (current markets)

Revenue growth (new markets)

Cost Reduction - direct costs

Cost reduction- indirect costs

Improved liquidity

New investments

0

7

58

52

3841

40


1

2

3

4

5

6

7

8

Estimates of GDP dynamics for the third quarter of 2014, released by Eurostat in December, suggest that Romania registered the highest quarter-on-quarter advance of all EU member states (1.8%) – this provides confidence for year-end results and for those of 2015.

CFOs’ views on their companies’ prospects further improved during the course of 2014, as was the case in 2013. Almost half of the respondents are somewhat optimistic while only 12% are less optimistic than six months ago.

Graph 2Central European CFOs’ expectations for their countries’ GDP growth in 2015

Moderate growth (1.5-3%)

Stagnation (0 - 1.5%)

Recession

Growth (>3%)

0%

10%

20%

30%

40%

50%

60%

70%

Growth(>3%)

Moderategrowth

(1,5-3%)

Stagnation(0-1,5%)

Recession

0%

10%

20%

30%

40%

50%

60%

Lessoptimistic


Veryoptimistic

0%

10%

20%

30%

40%

50%


0%

10%

20%

30%

40%

50%

60%

Decreasea lot

Decreasea little

Remainthe same

Increasea little

Increasea lot

0%

10%

20%

30%

40%

50%

60%


Decreasesomewhat

Remainthe same

Increasesomewhat


0%

10%

20%

30%

40%

50%

Toplevel

Seniorlevel

Middlelevel

Juniorlevel

Graduatelevel

0%

10%

20%

30%

40%

50%


Decreasesomewhat



0%

10%

20%

30%

40%

50%

60%


Attractive

0%

10%

20%

30%

40%

50%

60%

Lessoptimistic


Veryoptimistic

0%

20%

40%

60%

80%

100%


0%

20%

40%

60%

80%

100%


0%

20%

40%

60%

80%

100%


0%

20%

40%

60%

80%

100%

HRBGSKHUCZRO

0%

20%

40%

60%

80%

100%

HRBGSKHUCZPLRO

0%

20%

40%

60%

80%

100%

SKPLHUCZHRBGRO

0%

10%

20%

30%

40%

50%

60%

HRBGSKHUCZPLRO

0%

10%

20%

30%

40%

50%

60%

70%

HRBGSKHUCZPLRO

0 20 40 60 80 100





Improved liquidity

New investments

Graph 3Local CFOs’ views on their companies’ financial prospects compared with six months ago

0%

10%

20%

30%

40%

50%

60%

70%

Growth(>3%)

Moderategrowth

(1,5-3%)

Stagnation(0-1,5%)

Recession

0%

10%

20%

30%

40%

50%

60%

Lessoptimistic


Veryoptimistic

0%

10%

20%

30%

40%

50%


0%

10%

20%

30%

40%

50%

60%

Decreasea lot

Decreasea little

Remainthe same

Increasea little

Increasea lot

0%

10%

20%

30%

40%

50%

60%


Decreasesomewhat

Remainthe same

Increasesomewhat


0%

10%

20%

30%

40%

50%

Toplevel

Seniorlevel

Middlelevel

Juniorlevel

Graduatelevel

0%

10%

20%

30%

40%

50%


Decreasesomewhat



0%

10%

20%

30%

40%

50%

60%


Attractive

0%

10%

20%

30%

40%

50%

60%

Lessoptimistic


Veryoptimistic

0%

20%

40%

60%

80%

100%


0%

20%

40%

60%

80%

100%


0%

20%

40%

60%

80%

100%


0%

20%

40%

60%

80%

100%

HRBGSKHUCZRO

0%

20%

40%

60%

80%

100%

HRBGSKHUCZPLRO

0%

20%

40%

60%

80%

100%

SKPLHUCZHRBGRO

0%

10%

20%

30%

40%

50%

60%

HRBGSKHUCZPLRO

0%

10%

20%

30%

40%

50%

60%

70%

HRBGSKHUCZPLRO

0 20 40 60 80 100





Improved liquidity

New investments

5th CFO Survey

6th CFO Survey

38 51

67

28

2

70

36

58

7

36

58

630

4958

4 2

04

48

56

36 37

12

7


1

2

3

4

5

6

7

8

Regional developments follow a similar trend, with a significant share of participants indicating moderately optimistic or very optimistic views of their companies’ prospects. These results are largely aligned with expectations of economic development; in the case of Romania, results may also be attributed to further improvements in the political environment.

Graph 4Central European CFOs’ views on their companies’ financial prospects compared with six months ago

Somewhat optimistic

Unchanged

Less optimistic

Very optimistic

0%

10%

20%

30%

40%

50%

60%

70%

Growth(>3%)

Moderategrowth

(1,5-3%)

Stagnation(0-1,5%)

Recession

0%

10%

20%

30%

40%

50%

60%

Lessoptimistic


Veryoptimistic

0%

10%

20%

30%

40%

50%


0%

10%

20%

30%

40%

50%

60%

Decreasea lot

Decreasea little

Remainthe same

Increasea little

Increasea lot

0%

10%

20%

30%

40%

50%

60%


Decreasesomewhat

Remainthe same

Increasesomewhat


0%

10%

20%

30%

40%

50%

Toplevel

Seniorlevel

Middlelevel

Juniorlevel

Graduatelevel

0%

10%

20%

30%

40%

50%


Decreasesomewhat



0%

10%

20%

30%

40%

50%

60%


Attractive

0%

10%

20%

30%

40%

50%

60%

Lessoptimistic


Veryoptimistic

0%

20%

40%

60%

80%

100%


0%

20%

40%

60%

80%

100%


0%

20%

40%

60%

80%

100%


0%

20%

40%

60%

80%

100%

HRBGSKHUCZRO

0%

20%

40%

60%

80%

100%

HRBGSKHUCZPLRO

0%

20%

40%

60%

80%

100%

SKPLHUCZHRBGRO

0%

10%

20%

30%

40%

50%

60%

HRBGSKHUCZPLRO

0%

10%

20%

30%

40%

50%

60%

70%

HRBGSKHUCZPLRO

0 20 40 60 80 100





Improved liquidity

New investments

48

4

36

12

30

9

43

19

4

39

52

28

5053

20

13

35

2626

44

11

3

42

12

32

42

14


1

2

3

4

5

6

7

8

With regard to business focus, results suggest that goals have become clearer as companies have made progress in prioritising their initiatives for 2015. Since the last survey – when participants assigned high importance to almost all focus areas – growing revenues from current markets has now emerged as by far the most important focus area. Reducing direct and indirect costs also continues to represent a key priority for companies, according to local CFOs. However, new investments continue to represent a disappointingly low priority for companies, and expansion into new markets also seems to have fallen in importance.

1

3

5

2

4

6

Graph 5Companies’ business focus for the next 12 months(1 - least important to 6 - most important)

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



Cost reduction - direct costs

Cost reduction - indirect costs

Improved liquidity

New investments 30

22

10

20 20 20 20 20

13191961331

5 5 15 5 5 65

20 30 35 5

17 22 9 22 9

26 17 9 17


1

2

3

4

5

6

7

8

Approximately half of the participating CFOs from across Central Europe expect somewhat or significantly increased levels of M&A activity in the next 12 months. Local results show that Romanian CEOs’ views became largely aligned with those of their Central European peers in 2014, as the previous year’s results showed pessimism for M&A activity in Romania. This time the survey reveals an increase in anticipation of M&A activity, with 46% of CFOs expecting a moderate increase, 8% anticipating significant growth and only 4% expecting a moderate decrease in activity.

M&A activity is likely to be driven by foreign direct investment (FDI), an overall improvement in the region’s and Europe’s economic environment, and by increasing levels of competition in different sectors of the economy.

Graph 6How CFOs expect levels of M&A activity to change in Romania over the next 12 months

0%

10%

20%

30%

40%

50%

60%

70%

Growth(>3%)

Moderategrowth

(1,5-3%)

Stagnation(0-1,5%)

Recession

0%

10%

20%

30%

40%

50%

60%

Lessoptimistic


Veryoptimistic

0%

10%

20%

30%

40%

50%


0%

10%

20%

30%

40%

50%

60%

Decreasea lot

Decreasea little

Remainthe same

Increasea little

Increasea lot

0%

10%

20%

30%

40%

50%

60%


Decreasesomewhat

Remainthe same

Increasesomewhat


0%

10%

20%

30%

40%

50%

Toplevel

Seniorlevel

Middlelevel

Juniorlevel

Graduatelevel

0%

10%

20%

30%

40%

50%


Decreasesomewhat



0%

10%

20%

30%

40%

50%

60%


Attractive

0%

10%

20%

30%

40%

50%

60%

Lessoptimistic


Veryoptimistic

0%

20%

40%

60%

80%

100%


0%

20%

40%

60%

80%

100%


0%

20%

40%

60%

80%

100%


0%

20%

40%

60%

80%

100%

HRBGSKHUCZRO

0%

20%

40%

60%

80%

100%

HRBGSKHUCZPLRO

0%

20%

40%

60%

80%

100%

SKPLHUCZHRBGRO

0%

10%

20%

30%

40%

50%

60%

HRBGSKHUCZPLRO

0%

10%

20%

30%

40%

50%

60%

70%

HRBGSKHUCZPLRO

0 20 40 60 80 100





Improved liquidity

New investments

42

11

60

35

4 5

48

33

8

46

8

Neutral

Increase somewhat

Increase significantly

Decrease somewhat

RiskDecreasing levels of perceived external risk



1

2

3

4

5

6

7

8

Risk

Decreasing levels of perceived external risk

Results point to a reduction in the level of external economic and financial uncertainty from previous surveys, although over 40% of respondents still consider this to be either high or very high. 58% of Romanian CFOs consider external uncertainties to be at normal or above normal levels, as compared to 48% in the previous survey.

Correspondingly, the proportion of participants reporting a high or very high level of external uncertainty has fallen by almost 10 percentage points over the last year.

Graph 7Romanian CFOs’ opinions on the general level of external financial and economic uncertainty facing their businesses

0%

10%

20%

30%

40%

50%

60%

70%

Growth(>3%)

Moderategrowth

(1,5-3%)

Stagnation(0-1,5%)

Recession

0%

10%

20%

30%

40%

50%

60%

Lessoptimistic


Veryoptimistic

0%

10%

20%

30%

40%

50%


0%

10%

20%

30%

40%

50%

60%

Decreasea lot

Decreasea little

Remainthe same

Increasea little

Increasea lot

0%

10%

20%

30%

40%

50%

60%


Decreasesomewhat

Remainthe same

Increasesomewhat


0%

10%

20%

30%

40%

50%

Toplevel

Seniorlevel

Middlelevel

Juniorlevel

Graduatelevel

0%

10%

20%

30%

40%

50%


Decreasesomewhat



0%

10%

20%

30%

40%

50%

60%


Attractive

0%

10%

20%

30%

40%

50%

60%

Lessoptimistic


Veryoptimistic

0%

20%

40%

60%

80%

100%


0%

20%

40%

60%

80%

100%


0%

20%

40%

60%

80%

100%


0%

20%

40%

60%

80%

100%

HRBGSKHUCZRO

0%

20%

40%

60%

80%

100%

HRBGSKHUCZPLRO

0%

20%

40%

60%

80%

100%

SKPLHUCZHRBGRO

0%

10%

20%

30%

40%

50%

60%

HRBGSKHUCZPLRO

0%

10%

20%

30%

40%

50%

60%

70%

HRBGSKHUCZPLRO

0 20 40 60 80 100





Improved liquidity

New investments

4

11

3841

38

30

19 18

5th CFO Survey

6th CFO Survey


1

2

3

4

5

6

7

8

Similarly, results from other Central European countries show a shift in responses towards lower levels of perceived external financial and economic uncertainty. The growing distance from the peak of the European debt crisis, general improvements in the business environment and, in the case of Romania, an improvement in the political environment, might all have contributed to these results.

Graph 8Central European CFOs’ opinions on the general level of external financial and economic uncertainty facing their businesses

High

Above normal

Normal

Very high

0%

10%

20%

30%

40%

50%

60%

70%

Growth(>3%)

Moderategrowth

(1,5-3%)

Stagnation(0-1,5%)

Recession

0%

10%

20%

30%

40%

50%

60%

Lessoptimistic


Veryoptimistic

0%

10%

20%

30%

40%

50%


0%

10%

20%

30%

40%

50%

60%

Decreasea lot

Decreasea little

Remainthe same

Increasea little

Increasea lot

0%

10%

20%

30%

40%

50%

60%


Decreasesomewhat

Remainthe same

Increasesomewhat


0%

10%

20%

30%

40%

50%

Toplevel

Seniorlevel

Middlelevel

Juniorlevel

Graduatelevel

0%

10%

20%

30%

40%

50%


Decreasesomewhat



0%

10%

20%

30%

40%

50%

60%


Attractive

0%

10%

20%

30%

40%

50%

60%

Lessoptimistic


Veryoptimistic

0%

20%

40%

60%

80%

100%


0%

20%

40%

60%

80%

100%


0%

20%

40%

60%

80%

100%


0%

20%

40%

60%

80%

100%

HRBGSKHUCZRO

0%

20%

40%

60%

80%

100%

HRBGSKHUCZPLRO

0%

20%

40%

60%

80%

100%

SKPLHUCZHRBGRO

0%

10%

20%

30%

40%

50%

60%

HRBGSKHUCZPLRO

0%

10%

20%

30%

40%

50%

60%

70%

HRBGSKHUCZPLRO

0 20 40 60 80 100





Improved liquidity

New investments

4

38 38

19

11

0

36

53

2

12

28

58

2

30

39

43

4843

9

0

8

39

33

19 17

42

29

12

DebtBank financing improving slightly



1

2

3

4

5

6

7

8

Debt

Bank financing improving slightly

The attractiveness of bank borrowing as a source of funding has increased, with 35% of respondents considering the option to be “attractive” for their companies – an improvement of nine percentage points since the previous study. This development is most likely attributable to declining interest rates and banks’ efforts to resume lending in the corporate sector, as well as a general improvement in the economic environment and in the financial statements of companies.

Graph 9Local CFOs’ attitudes to bank borrowing as a source of funding

0%

10%

20%

30%

40%

50%

60%

70%

Growth(>3%)

Moderategrowth

(1,5-3%)

Stagnation(0-1,5%)

Recession

0%

10%

20%

30%

40%

50%

60%

Lessoptimistic


Veryoptimistic

0%

10%

20%

30%

40%

50%


0%

10%

20%

30%

40%

50%

60%

Decreasea lot

Decreasea little

Remainthe same

Increasea little

Increasea lot

0%

10%

20%

30%

40%

50%

60%


Decreasesomewhat

Remainthe same

Increasesomewhat


0%

10%

20%

30%

40%

50%

Toplevel

Seniorlevel

Middlelevel

Juniorlevel

Graduatelevel

0%

10%

20%

30%

40%

50%


Decreasesomewhat



0%

10%

20%

30%

40%

50%

60%


Attractive

0%

10%

20%

30%

40%

50%

60%

Lessoptimistic


Veryoptimistic

0%

20%

40%

60%

80%

100%


0%

20%

40%

60%

80%

100%


0%

20%

40%

60%

80%

100%


0%

20%

40%

60%

80%

100%

HRBGSKHUCZRO

0%

20%

40%

60%

80%

100%

HRBGSKHUCZPLRO

0%

20%

40%

60%

80%

100%

SKPLHUCZHRBGRO

0%

10%

20%

30%

40%

50%

60%

HRBGSKHUCZPLRO

0%

10%

20%

30%

40%

50%

60%

70%

HRBGSKHUCZPLRO

0 20 40 60 80 100





Improved liquidity

New investments

5th CFO Survey

6th CFO Survey

35

26

5048

15

26


1

2

3

4

5

6

7

8

Romanian CFOs’ perceptions of the availability of new credit have also improved since the previous survey, with the majority of respondents (57.7%) now indicating “normal” availability. Furthermore, a new category for Romania has emerged, with 3.8% of participants indicating that new credit is easily available for companies; however, Romania still trails behind many of its regional peers in this respect.

Graph 10How Romanian CFOs rate the overall availability of new credit for companies

Difficult to obtain

Normally available

Easily available

0%

10%

20%

30%

40%

50%

60%

70%

Growth(>3%)

Moderategrowth

(1,5-3%)

Stagnation(0-1,5%)

Recession

0%

10%

20%

30%

40%

50%

60%

Lessoptimistic


Veryoptimistic

0%

10%

20%

30%

40%

50%


0%

10%

20%

30%

40%

50%

60%

Decreasea lot

Decreasea little

Remainthe same

Increasea little

Increasea lot

0%

10%

20%

30%

40%

50%

60%


Decreasesomewhat

Remainthe same

Increasesomewhat


0%

10%

20%

30%

40%

50%

Toplevel

Seniorlevel

Middlelevel

Juniorlevel

Graduatelevel

0%

10%

20%

30%

40%

50%


Decreasesomewhat



0%

10%

20%

30%

40%

50%

60%


Attractive

0%

10%

20%

30%

40%

50%

60%

Lessoptimistic


Veryoptimistic

0%

20%

40%

60%

80%

100%


0%

20%

40%

60%

80%

100%


0%

20%

40%

60%

80%

100%


0%

20%

40%

60%

80%

100%

HRBGSKHUCZRO

0%

20%

40%

60%

80%

100%

HRBGSKHUCZPLRO

0%

20%

40%

60%

80%

100%

SKPLHUCZHRBGRO

0%

10%

20%

30%

40%

50%

60%

HRBGSKHUCZPLRO

0%

10%

20%

30%

40%

50%

60%

70%

HRBGSKHUCZPLRO

0 20 40 60 80 100





Improved liquidity

New investments

38

58

4

59

41

60

40


1

2

3

4

5

6

7

8

Expectations regarding companies’ ability to service their debt over the next three years have improved for 30.8% of respondents, representing an encouraging development for local companies. Furthermore, an increasing number of CFOs expect this ability to remain the same (53.8%) while only 15.4% anticipate a decreasing ability to service their debt.

Graph 11How CFOs expect their ability to service debt to change over the next three years

0%

10%

20%

30%

40%

50%

60%

70%

Growth(>3%)

Moderategrowth

(1,5-3%)

Stagnation(0-1,5%)

Recession

0%

10%

20%

30%

40%

50%

60%

Lessoptimistic


Veryoptimistic

0%

10%

20%

30%

40%

50%


0%

10%

20%

30%

40%

50%

60%

Decreasea lot

Decreasea little

Remainthe same

Increasea little

Increasea lot

0%

10%

20%

30%

40%

50%

60%


Decreasesomewhat

Remainthe same

Increasesomewhat


0%

10%

20%

30%

40%

50%

Toplevel

Seniorlevel

Middlelevel

Juniorlevel

Graduatelevel

0%

10%

20%

30%

40%

50%


Decreasesomewhat



0%

10%

20%

30%

40%

50%

60%


Attractive

0%

10%

20%

30%

40%

50%

60%

Lessoptimistic


Veryoptimistic

0%

20%

40%

60%

80%

100%


0%

20%

40%

60%

80%

100%


0%

20%

40%

60%

80%

100%


0%

20%

40%

60%

80%

100%

HRBGSKHUCZRO

0%

20%

40%

60%

80%

100%

HRBGSKHUCZPLRO

0%

20%

40%

60%

80%

100%

SKPLHUCZHRBGRO

0%

10%

20%

30%

40%

50%

60%

HRBGSKHUCZPLRO

0%

10%

20%

30%

40%

50%

60%

70%

HRBGSKHUCZPLRO

0 20 40 60 80 100





Improved liquidity

New investments

31

0

54

8 8

FinancingOptimism over access to finance



1

2

3

4

5

6

7

8

Financing

Optimism over access to finance

Half of the participants do not expect any change in the costs of company finance in the next 12 months, and 30.8% expect the trend of decreasing costs to continue at a moderate rate. None of the participating local CFOs expect significant changes to the costs of finance over the next year.

Graph 12How local CFOs expect the costs of finance for companies in Romania to change over the next 12 months

0%

10%

20%

30%

40%

50%

60%

70%

Growth(>3%)

Moderategrowth

(1,5-3%)

Stagnation(0-1,5%)

Recession

0%

10%

20%

30%

40%

50%

60%

Lessoptimistic


Veryoptimistic

0%

10%

20%

30%

40%

50%


0%

10%

20%

30%

40%

50%

60%

Decreasea lot

Decreasea little

Remainthe same

Increasea little

Increasea lot

0%

10%

20%

30%

40%

50%

60%


Decreasesomewhat

Remainthe same

Increasesomewhat


0%

10%

20%

30%

40%

50%

Toplevel

Seniorlevel

Middlelevel

Juniorlevel

Graduatelevel

0%

10%

20%

30%

40%

50%


Decreasesomewhat



0%

10%

20%

30%

40%

50%

60%


Attractive

0%

10%

20%

30%

40%

50%

60%

Lessoptimistic


Veryoptimistic

0%

20%

40%

60%

80%

100%


0%

20%

40%

60%

80%

100%


0%

20%

40%

60%

80%

100%


0%

20%

40%

60%

80%

100%

HRBGSKHUCZRO

0%

20%

40%

60%

80%

100%

HRBGSKHUCZPLRO

0%

20%

40%

60%

80%

100%

SKPLHUCZHRBGRO

0%

10%

20%

30%

40%

50%

60%

HRBGSKHUCZPLRO

0%

10%

20%

30%

40%

50%

60%

70%

HRBGSKHUCZPLRO

0 20 40 60 80 100





Improved liquidity

New investments

0

19

50

31

0


1

2

3

4

5

6

7

8

Romanian CFOs continue to be some of the most optimistic in the region when it comes to financing costs. The high share of respondents who expect the costs of finance to decrease or stay the same contrasts somewhat with results from other non-eurozone Central European countries. These include Bulgaria, Croatia and Hungary, where a significantly larger share of participants is expecting a moderate or significant increase in the costs of finance.

Graph 13In your view how are financing costs for companies in your country likely to change over the next 12 months?

0%

10%

20%

30%

40%

50%

60%

70%

Growth(>3%)

Moderategrowth

(1,5-3%)

Stagnation(0-1,5%)

Recession

0%

10%

20%

30%

40%

50%

60%

Lessoptimistic


Veryoptimistic

0%

10%

20%

30%

40%

50%


0%

10%

20%

30%

40%

50%

60%

Decreasea lot

Decreasea little

Remainthe same

Increasea little

Increasea lot

0%

10%

20%

30%

40%

50%

60%


Decreasesomewhat

Remainthe same

Increasesomewhat


0%

10%

20%

30%

40%

50%

Toplevel

Seniorlevel

Middlelevel

Juniorlevel

Graduatelevel

0%

10%

20%

30%

40%

50%


Decreasesomewhat



0%

10%

20%

30%

40%

50%

60%


Attractive

0%

10%

20%

30%

40%

50%

60%

Lessoptimistic


Veryoptimistic

0%

20%

40%

60%

80%

100%


0%

20%

40%

60%

80%

100%


0%

20%

40%

60%

80%

100%


0%

20%

40%

60%

80%

100%

HRBGSKHUCZRO

0%

20%

40%

60%

80%

100%

HRBGSKHUCZPLRO

0%

20%

40%

60%

80%

100%

SKPLHUCZHRBGRO

0%

10%

20%

30%

40%

50%

60%

HRBGSKHUCZPLRO

0%

10%

20%

30%

40%

50%

60%

70%

HRBGSKHUCZPLRO

0 20 40 60 80 100





Improved liquidity

New investments

Remain the same

Increase significantly

Increase somewhat

Decrease somewhat

Decrease significantly

31

50

19

34

36

23

6

10

1 2 4

55

32

2

20

46

28

4

17

39

35

4

25

22

50

3

14

42

42

2


1

2

3

4

5

6

7

8

No major changes have taken place since the previous survey regarding attitudes towards equity financing. Only 12% of local CFOs consider equity financing to be unattractive, compared to 15% in the previous survey. However, most still find it neither attractive nor unattractive (up by six percentage to 53.8%). Considering the relative stability of attitudes towards equity financing, a significant wave of IPO activity is unlikely to occur.

Graph 14CFOs’ attitudes to raising equity as a source of funding

0%

10%

20%

30%

40%

50%

60%

70%

Growth(>3%)

Moderategrowth

(1,5-3%)

Stagnation(0-1,5%)

Recession

0%

10%

20%

30%

40%

50%

60%

Lessoptimistic


Veryoptimistic

0%

10%

20%

30%

40%

50%


0%

10%

20%

30%

40%

50%

60%

Decreasea lot

Decreasea little

Remainthe same

Increasea little

Increasea lot

0%

10%

20%

30%

40%

50%

60%


Decreasesomewhat

Remainthe same

Increasesomewhat


0%

10%

20%

30%

40%

50%

Toplevel

Seniorlevel

Middlelevel

Juniorlevel

Graduatelevel

0%

10%

20%

30%

40%

50%


Decreasesomewhat



0%

10%

20%

30%

40%

50%

60%


Attractive

0%

10%

20%

30%

40%

50%

60%

Lessoptimistic


Veryoptimistic

0%

20%

40%

60%

80%

100%


0%

20%

40%

60%

80%

100%


0%

20%

40%

60%

80%

100%


0%

20%

40%

60%

80%

100%

HRBGSKHUCZRO

0%

20%

40%

60%

80%

100%

HRBGSKHUCZPLRO

0%

20%

40%

60%

80%

100%

SKPLHUCZHRBGRO

0%

10%

20%

30%

40%

50%

60%

HRBGSKHUCZPLRO

0%

10%

20%

30%

40%

50%

60%

70%

HRBGSKHUCZPLRO

0 20 40 60 80 100





Improved liquidity

New investments

Unattractive

Attractive

Neither attractive nor unattractive

12

54

35

15

48

37

20

55

25

TalentTalent shortages in the finance area to continue at seniorand top levels



1

2

3

4

5

6

7

8

Talent

Talent shortages in the finance area to continue at senior and top levels

Approximately one third of Romanian respondents indicate that they expect talent shortages in the finance area. This is largely in line with the expectations of their peers from other Central European countries.

No

Yes

Graph 15Do you expect talent shortages in the finance area over the next year?

0%

10%

20%

30%

40%

50%

60%

70%

Growth(>3%)

Moderategrowth

(1,5-3%)

Stagnation(0-1,5%)

Recession

0%

10%

20%

30%

40%

50%

60%

Lessoptimistic


Veryoptimistic

0%

10%

20%

30%

40%

50%


0%

10%

20%

30%

40%

50%

60%

Decreasea lot

Decreasea little

Remainthe same

Increasea little

Increasea lot

0%

10%

20%

30%

40%

50%

60%


Decreasesomewhat

Remainthe same

Increasesomewhat


0%

10%

20%

30%

40%

50%

Toplevel

Seniorlevel

Middlelevel

Juniorlevel

Graduatelevel

0%

10%

20%

30%

40%

50%


Decreasesomewhat



0%

10%

20%

30%

40%

50%

60%


Attractive

0%

10%

20%

30%

40%

50%

60%

Lessoptimistic


Veryoptimistic

0%

20%

40%

60%

80%

100%


0%

20%

40%

60%

80%

100%


0%

20%

40%

60%

80%

100%


0%

20%

40%

60%

80%

100%

HRBGSKHUCZRO

0%

20%

40%

60%

80%

100%

HRBGSKHUCZPLRO

0%

20%

40%

60%

80%

100%

SKPLHUCZHRBGRO

0%

10%

20%

30%

40%

50%

60%

HRBGSKHUCZPLRO

0%

10%

20%

30%

40%

50%

60%

70%

HRBGSKHUCZPLRO

0 20 40 60 80 100





Improved liquidity

New investments

73

27

78

22

71

29

78

22

78

22

74

26

52

48


1

2

3

4

5

6

7

8

These expected talent shortages are skewed towards the higher levels of seniority: senior and management levels are expected to experience the largest shortages, while some shortfall is also expected in the middle levels.

Graph 16Where do you expect significant shortages in talent in finance over the next year?

0%

10%

20%

30%

40%

50%

60%

70%

Growth(>3%)

Moderategrowth

(1,5-3%)

Stagnation(0-1,5%)

Recession

0%

10%

20%

30%

40%

50%

60%

Lessoptimistic


Veryoptimistic

0%

10%

20%

30%

40%

50%


0%

10%

20%

30%

40%

50%

60%

Decreasea lot

Decreasea little

Remainthe same

Increasea little

Increasea lot

0%

10%

20%

30%

40%

50%

60%


Decreasesomewhat

Remainthe same

Increasesomewhat


0%

10%

20%

30%

40%

50%

Toplevel

Seniorlevel

Middlelevel

Juniorlevel

Graduatelevel

0%

10%

20%

30%

40%

50%


Decreasesomewhat



0%

10%

20%

30%

40%

50%

60%


Attractive

0%

10%

20%

30%

40%

50%

60%

Lessoptimistic


Veryoptimistic

0%

20%

40%

60%

80%

100%


0%

20%

40%

60%

80%

100%


0%

20%

40%

60%

80%

100%


0%

20%

40%

60%

80%

100%

HRBGSKHUCZRO

0%

20%

40%

60%

80%

100%

HRBGSKHUCZPLRO

0%

20%

40%

60%

80%

100%

SKPLHUCZHRBGRO

0%

10%

20%

30%

40%

50%

60%

HRBGSKHUCZPLRO

0%

10%

20%

30%

40%

50%

60%

70%

HRBGSKHUCZPLRO

0 20 40 60 80 100





Improved liquidity

New investments

8

3

19

41

30


1

2

3

4

5

6

7

8

Romanian CFOs do not anticipate any major changes in the unemployment situation over the next 12 months, but the proportion of participants indicating a moderate decrease in unemployment is higher than those indicating a moderate increase.

Graph 17Over the next 12 months how do you expect levels of unemployment to change in your country?

0%

10%

20%

30%

40%

50%

60%

70%

Growth(>3%)

Moderategrowth

(1,5-3%)

Stagnation(0-1,5%)

Recession

0%

10%

20%

30%

40%

50%

60%

Lessoptimistic


Veryoptimistic

0%

10%

20%

30%

40%

50%


0%

10%

20%

30%

40%

50%

60%

Decreasea lot

Decreasea little

Remainthe same

Increasea little

Increasea lot

0%

10%

20%

30%

40%

50%

60%


Decreasesomewhat

Remainthe same

Increasesomewhat


0%

10%

20%

30%

40%

50%

Toplevel

Seniorlevel

Middlelevel

Juniorlevel

Graduatelevel

0%

10%

20%

30%

40%

50%


Decreasesomewhat



0%

10%

20%

30%

40%

50%

60%


Attractive

0%

10%

20%

30%

40%

50%

60%

Lessoptimistic


Veryoptimistic

0%

20%

40%

60%

80%

100%


0%

20%

40%

60%

80%

100%


0%

20%

40%

60%

80%

100%


0%

20%

40%

60%

80%

100%

HRBGSKHUCZRO

0%

20%

40%

60%

80%

100%

HRBGSKHUCZPLRO

0%

20%

40%

60%

80%

100%

SKPLHUCZHRBGRO

0%

10%

20%

30%

40%

50%

60%

HRBGSKHUCZPLRO

0%

10%

20%

30%

40%

50%

60%

70%

HRBGSKHUCZPLRO

0 20 40 60 80 100





Improved liquidity

New investments

19

0

46

35

0


For more information on the Deloitte CFO Survey please contact:

Ahmed HassanCFO Programme LeaderCountry Managing PartnerDeloitte Romania+40 (21) 2075 [email protected]

Ioana BardanClients & MarketsSenior Co-ordinatorDeloitte Romania+40 (21) 2075 [email protected]

About the survey

The 6th CE CFO survey took place in October & November 2014. A total of 550 CFOs across 14 countries completed our survey. The Deloitte CFO Survey is the only survey that seeks to establish the views of CFOs in relation to the financial markets, economic outlook and business trends on a quarterly basis.

Deloitte CE CFO survey is a “pulse survey” that provides CFOs with information regarding their peers’ thinking across a variety of topics. It is not, nor is it intended to be, scientific in its number of respondents, selection of respondents, or response rate —especially within individual industries.

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 organization 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, consulting, financial advisory and legal services to public and private clients spanning multiple industries. With a globally connected network of member firms in more than 150 countries and territories, Deloitte brings world-class capabilities and high-quality service to clients, delivering the insights they need to address their most complex business challenges. Deloitte’s more than 200,000 professionals are committed to becoming the standard of excellence.

Deloitte Central Europe is a regional organization of entities organized under the umbrella of Deloitte Central Europe Holdings Limited, the member firm in Central Europe of Deloitte Touche Tohmatsu Limited. Services are provided by the subsidiaries and affiliates of Deloitte Central Europe Holdings Limited, which are separate and independent legal entities.

The subsidiaries and affiliates of Deloitte Central Europe Holdings Limited are among the region’s leading professional services firms, providing services through more than 3,900 people in 34 offices in 17 countries.

© 2015 Deloitte Central Europe

gearing up for growth central europe cfo survey 2015 · gearing up for growth central europe cfo...

Documents