the central balance sheet data office (cbso): a source of ... · 1. cbso: non-financial corporation...

STATISTICS DEPARTMENT

The Central Balance Sheet Data Office (CBSO): a source of microdata on non-financial corporations used by the Banco de España in FASE (Financial Accounts of the Spanish Economy)

A practical example of mobilising a source of microdata on NFC Bank of Algeria - IFC Seminar (Developing and improving Sectoral Financial Accounts) Algiers, 20-21 January 2016 Manuel Ortega Head of Central Balance Sheet Data Office Division. Statistics Department. Banco de España Chairman of ERICA (European Records of IFRS Consolidated Accounts) WG of the European Committee of Central Balance Sheet Data Offices (ECCBSO)

CBSO, a source of microdata on non-financial corporations used in Financial Accounts

CONTENTS: 1. CBSO: non-financial corporation (NFC) data at National Central Banks

2. Use of CBSO data in FASE (Financial Accounts of the Spanish Economy)

1. Products and users of the Spanish CBSO 2. Towards a full set of accounts for NFCs: MENF project 3. Other uses: Stock options / Holding companies / Non-financial assets of NFCs (market value)

3. Valuing unlisted shares at market value: a particular use of CBSO

accounting data for FASE

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1. CBSO: NFC data at National Central Banks A global world: increasing need for microdata

3

We have to know the population

We need to know the singularities: the importance of ouliers

And diversity as well!

And yes, nationality is still important

National Accounts and Financial Accounts are not enough: need for details of subsets of institutional sectors

Microdata: a source of contrast and of statistical distributions Key performance indicators of NFCs: an increasing demand But taking account of the reporting burden: use of business accounting /

use of XBRL (active participation in XBRL Spain) What about harmonisation? IFRS is the solution Need for more microdata, to know how the cake is cut and who eats it


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For the full report see http://www.bde.es/f/webbde/SES/Secciones/Publicaciones/InformesBoletinesRevistas/BoletinEconomico/14/Jun/Files/art2e.pdf


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One example: analysis published in June 2014 on the financial situation of non-financial corporations that belong to a large group, using CBSO data (aggregation of corporations included in large groups and statistical distribution)

A rock, a vegetable or

an animal?

What is a CBSO?

Hairy frogfish North Sulawesi , Indonesia

1st award Underwater contest. Liège , Belgium

Rudy Trogh ©

1. CBSO: NFC data at National Central Banks Some information about CBSOs in Europe

What is a Central Balance Sheet Database? • Raw data collection of accounting data • Databases with microdata • Directly obtained from Non-Financial Corporations • Based in their normal language: accounting data • Accounting data: individual accounts / consolidated accounts • Different periodicity and timeliness (annual, quarterly, other). Some lags… • Used for different purposes: statistics, risk assessment, other

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To find out more: www.eccbso.org • “Products and services of the European CBSOs” • BACH database: aggregated data and statistical distributions of individual

accounts • ERICA database: results of listed European groups • FSA WG: “Profitability, equity capitalization and Net worth at risk” • Risk Assessment WG: risk analysis of private collateral accepted by NCBs

1. CBSO: NFC data at National Central Banks Some information about CBSOs in Europe

http://www.eccbso.org/

1

European Committee of Central Balance-Sheet Data Offices

ECCBSO

REPORT 2013 | Products and Services of the European CBSOs

The European Committee of Central Balance-Sheet Data Offices (ECCBSO) is an informal body whose members consist of experts either from the Central

Balance-Sheet Data Offices belonging to or associated with the National Central Banks (NCB) of the European Community, or from National Statistical Institutes.

The main task of the ECCBSO is to improve the analysis of Non-financial corporate enterprises data through the exchange of information and joint studies, on the

basis of the work carried out by the national central balance-sheet data offices which collect, store and diffuse descriptive and accounting firm data, and starting

from these information, they develop economic and financial research.

The structure of the ECCBSO is the following:

ECCBSO PRESENTATION


ECCBSO

CHAIRMAINSHIP

MEMBERS

BANCO DE PORTUGAL (from December 2013 to November 2016)

Banca d'Italia | Banco de Portugal | Banco de España | Bank of England | Bank of Greece | Banque de France | Banque Nationale de Belgique – Nationale Bank van België | Central Bank of Ireland | Cerved Group spa -Centrale dei Bilanci | Czech National Bank | Danmarks NationalBank | Deutsche Bundesbank | European

Central Bank | National Bank of Poland | National Bank of Romania | National Bank of Slovakia | NationalBank of Slovenia | Oesterreichische Nationalbank | STATEC – Luxembourg | Statistics Finland | Statistics

Netherlands | Statistics Sweden | Statistics Denmark

PERMANENT OBSERVERS

European Commission

OBSERVERS

IFRS Foundation

April 2013

1. CBSO: NFC data at National Central Banks European Committee of CBSOs

8

9

2


ECCBSO

REPORT 2013 | Products and Services of the European CBSOs

CBSOs DATABASES

BOX 1| DATABASES BY PERIODICITY AND ACCOUNTS CONSOLIDATION

April 2013

3

2 2

11

1

1

1

11

1

1 1

1 1

2

1

1

1

1 1

1

1

2

1

2

2

1

2

1

1

3

2

1 1 1

1 1

Annual Indiv

Annual Cons

Annual Indiv & Cons

Quarterly Indiv

Quarterly Cons

Quarterly Indiv & Cons

Semi-annual Indiv

Semi-annual Cons

Other

1. CBSO: NFC data at National Central Banks ECCBSO: databases available in European CBSOs

CBSO, a source of microdata on non-financial corporations. Used in Financial Accounts






10

2.1 Main products and users of the Spanish CBSO CBSO, main databases

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Quaterly database Listed groups Unlisted groups

NUMBER OF COMPANIES / GROUPS (left scale)COVERAGE: Gross value added at basic prices of the database w ith respect to non-financial companies total (right scale). In the case of consolidated accounts, thenumerator also includes the GVA generated by non-resident subsidiaries, w hat affects the reliability of this indicator.

"Central de Balances", databases, number of companies and coverage. Year 2015/2013

Individual accounts Consolidated accounts (groups)Annual databases

7.537

811

113

727

34,4

24,9

9,5

13,5

19,5

8,3

0,0

10,0

20,0

30,0

40,0

50,0

0

2.000

4.000

6.000

8.000

10.000

2014 2014 2014 I a III 2015 2014 2013

Direct survey (CBA)

Administrative source (Mercantile Registers) (CBB)

Direct survey (CBQ)

Stock exchange Commission

(CNMV)

Administrative source (Mercantile

Registers)

334.821342.358

Integrated Database

(CBI)

Aggregated data Public web site, including:

– Annual CBSO report – Sectoral aggregates

Grossing up (total population) MENF Public enterprises aggregate and Central

Government portfolio Quarterly report

Statistical series (statistical bulletin) Summary indicators of NFCs Contribution to BACH database Aggregated sectoral studies, on demand

Financial Soundness Indicators (FSI) Statistical distributions Contribution to BACH (RSE) database Ratios of Spanish sectors of activity Individual data: Corporations reports “CB on line”

Microdata for FSAP exercise

Users General public (GP)

–GP –GP, but especially Universities

NSI; Financial Accounts of Spanish Economy (FASE) Internal use and FASE Governing Council (Banco de España). Weeks later, GP and reporting companies GP Governing Council (Banco de España) European Committee of Central Balance Sheet Data Offices Banking Supervision and Regulation Departments; other departments of Directorate General Economics, Statistics and Research IMF and GP (Statistical bulletin) GP / Credit institutions (risk assessment) GP Reporting companies. Banking Regulation and Supervision Departments; Operations Department (risk assessment in collateral list); Balance of Payments Department; other departments of Directorate General Economics, Statistics and Research IMF

2.1 Main products and users of the Spanish CBSO

12

13

2.1 Main products and users: quarterly report

CBSO quarterly report, using annual and quarterly data

Example of use of accounting data for

analysis of non-financial corporations

Activity

Employment

Employee compensation

EBITDA: margins

13

14



analysis of non-financial corporations

Financial cost

Ordinary profit

Profitability (return on

investment, ROI)

Cost of debt

2.1 Main products and uses: quarterly report

14

15



analysis of non financial

corporations:

adjustments to individual data of companies that

belong to groups

Financial position ratios

2.1 Main products and uses: quarterly report

15

2.1 Main products and users: example of individual study for non-financial corporations Two approaches to data: Mean

average and Median

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CBSO, a source of microdata of non-financial corporations. Used in Financial Accounts

CONTENT: 1. CBSO: non-financial corporation (NFC) data at National Central Banks





17

18

Compilation began in the early 1980s: requirements of users to place

monetary flows in a broader accounting framework in BdE reports Annual / quarterly accounts

1980 / 1990 (annual)

1990 QI / 2014 QII (quarterly)

Quarterly compilation: 3m+1w (internally) / 3m+2w (on the web) Complete set of accounts – ESA 2010

Sectors (6) / Subsectors (9)

Financial instruments (18)

Counterpart information

Stocks / financial transactions / other flows

Integration with other statistics and databases: Balance of Payments / International Investment Position / Debt and deficit protocol / Securities database / Credit Register

2.2 Use of CBSO in FASE. Introduction: remarkable features of FASE

2.2 Use of CBSO in FASE. Introduction: remarkable features of FASE

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Intermediate system, from business accounting to NA:

- To obtain the full set of accounts and balances - Adjustments from accounting value to a proxy of market value

Data are classified into a matrix according to:

- Legal form (public limited companies / private limited companies / cooperatives and similar / state-owned companies)

- Size (9 categories) - Sector of activity (37 categories)

Grossing up, from sample to population:

The matrix is grossed up to the total economy using an extrapolation factor for each cell ( ci ), where:

ci = workers DIRCE */ workers CBSO Rare companies (outliers) excluded ahead of grossing-up

*DIRCE: INE (NSI) Central Directory of Firms.

2.2 Use of CBSO in FASE: MENF project. Grossing-up of non financial corporations

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SOME SINGULARITIES: New corporations and corporations with no employees

50 TO 249 EMPLOYEES

LESS THAN 49 EMPLOYEES

CBB

STRAIGHT USE + CR CBA AND

CBB ESTIMATIONS

STRAIGHT USE +

STRAIGHT USE

EMPLOYEES DIRCE/CBA+CBB

EMPLOYEES DIRCE/CBA+CBB

3 37

STRATIFICATION CRITERIA SAMPLE

LEGAL FORM

CATEGORIES BY

EMPLOYMENT

SECTOR OF ACTIVITY (CNAE 09)

1

4

4

> 5000 EMPLOYEES

50 TO 4999 EMPLOYEES

LESS THAN 49 EMPLOYEES

CBA

MULTIPLIERS

MULTIPLIER = 1

Whole accounts of NFC

CR CBB ESTIMATIONS

Grossing up process applied to CBI


MENF project. Main steps

1995

• Consideration as outliers (not submitted for grossing-up), companies with adjustments indicated above (parent/subsidiaries transactions)

• Estimators differentiated for real estate companies 2003

• First edition of MENF results (use of intermediate system, from business accounting to National Accounts, and grossing-up to total

population)

2001

• Elimination of double accounting created by intercompany transactions at parent/subsidiaries belonging to the same group (financial income,

dividends paid and received) 2002

• Improvement in discount rate selected for valuing unlisted shares (using median of electronic market, rather than average mean of IBEX

(index market, only 35 corporations))



2008

• Discount rate, previously divided in two (electricity suppliers, other), now unified (median of continuous market)

• Connections between open and closing balance and flows for the year (operations, revaluations and changes in volume): working with a base

year

2010

• Change of intermediate system to Spanish GAAP 2007 • Change to multipliers: average employment in DIRCE

• Listed corporations and those with special operations (mergers, splits, outsourcing...) considered outliers (not grossed up)

• Change to NACE 2009 (from 30 to 37 aggregates) • New quality control: sensibility analysis 2009

• Adjustments of FISIM estimation 2005



• Enlargement of sample used, including more medium-sized and small companies

2011

• Adjustment of corporations created in year, detailed in matrix by sector of activity

• Improvement in valuation at market value of share portfolio (resident / non- resident)

2012


GENERAL ECONOMIC ANALYSIS TABLE 3.14SUB-SECTOR OF NON FINANCIAL CORPORATIONSReconciliation statement. Link between opening and closing balance sheet. 2009

1 2 5BALANCE SHEET CHANGES IN BALANCE SHEETAS OF 31/12/08 BALANCE SHEET AS OF 31/12/09

TOTAL 3 42 = 5 - 1 CAPITAL AND OTHER CHANGES OF

FINANCIAL ACCOUNT ASSETS (AND LIABILITIES)(TRANSACTIONS) ACCOUNT (b)

3 = 2 - 4

ANF. NON FINANCIAL ASSETS (S.7*) 1.434.285 1.625 31.764 -30.139 1.435.910

Of which:

ANF.1 Produced assets 1.365.362 -5.081 31.271 -36.352 1.360.281

AF. FINANCIAL ASSETS 2.142.124 -55.624 -77.304 21.680 2.086.500Of which:

AF.4. Loans 238.628 -1.779 -17.159 15.380 236.849AF.5. Shares and other equity 895.841 4.605 -6.448 11.053 900.446AF.7. Other accounts receiv able 685.995 -46.774 -46.728 80 639.221

A. ASSETS (ANF + AF = NW + L) 3.576.409 -53.999 -45.540 -8.459 3.522.410

NW. NET WORTH (NW)/CHANGE IN NET WORTH(CNW) = (A - L = ANF + AF - L) -32.082 -35.324 18.824 (c) -54.150 -67.406

ANF. Non f inancial assets 1.434.285 1.625 31.764 -30.139 1.435.910AFN. Financial assets less liabilities (AF - L) -1.466.367 -36.949 -12.940 -24.011 -1.503.316

L. LIABILITIES 3.608.491 -18.675 -64.364 45.691 3.589.816Of which:

AF.4. Loans 1.456.373 -7.102 -28.740 21.638 1.449.271AF.5. Shares and other equity 1.457.740 33.352 13.635 19.717 1.491.092AF.7. Other accounts pay able 668.963 -46.375 -48.910 2.535 622.588

NW + L. LIABILITIES AND NET WORTH ( = A ) 3.576.409 -53.999 -45.540 -8.459 3.522.410

MEMORANDUM ITEM:EQUITY (NW + AF.5 (Liabilities)) 1.425.658 -1.972 32.459 -34.433 1.423.686

ACCUMULATION ACCOUNTS 2009

ES

TIM

AT

ED

DA

TA

(a)

2.2 Use of CBSO in FASE: MENF project. Example of data obtained: balances and flows

25

MENF financial accounts are integrated in FASE: one of the sources for the elaboration of FASE Regarding integration, two alternatives: • Full integration: 100% or at least the key items. Ranking in data sources

becomes necessary because of the discrepancies between data: • Adjustments in counterpart information; or • Adjustments in other sectors; or • Adjustments in total amount of financial instrument

• Partial integration: Only certain items. Two alternatives: • Include the total amounts estimated. Only acceptable for assets /

liabilities where CBSO data are representative of the instrument. For instance, stock options.

• Estimate the items by ratios, structures, indicators, etc. Best approach where: • There are inconsistencies with other data sources and certain

characteristics have to be maintained • Accounting data doesn´t cover the informal (hidden) economy

2.2 Use of CBSO in FASE: MENF project. Integration options of use and decision (partial integration)

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Use of CBSO data in FASE (SNA 2008)

Balance sheets Financial transactions FA L FA L

Currency and deposits Currency (1) Currency (1)

Debt securities

Loans

LIsted shares

Unlisted shares (2)

Other equity (3) (3)

Mutual fund shares

Insurance, pension and standardised guarantees

(4) (4)

Financial derivatives and stock options

(4)

Trade credits (5) (5) (5) (5)

Other accounts receivable

2.2 Use of CBSO in FASE: MENF project

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Partial integration of data, mainly by ratios

– [1] Currency: cash ratio (currency/transferable deposits) – [2] Unquoted shares issued by NFCs

Market value = ONR (Profits)/[r (Discount rate) +3%] r = IRR from stock market 3% = illiquidity premium

– [3] Shares held by general government (State portfolio in NFCs) Book value or market value (for public liability companies)

– [4] Pension entitlements / Stock options Accounting data provided by companies (actuarial calculations)

– [5] Trade credits (aim: to maintain same structure of balance sheet) R1 = suppliers / MFI loans R2 = clients / suppliers Information on commercial paper discounted at MFIs Ratio loans granted / received from RoW

2.2 Use of CBSO in FASE: MENF project

28

CBSO, a source of microdata of non-financial corporations. Used in Financial Accounts






29

1. Data available in business accounting: • Theoretically the following information is available:

1. IFRS 2, for listed groups 2. Valuation rule 17, in Spanish GAAP

• In 2014, 29 companies (individual) reported to CBSO that they had stock option plans for their staff (Yes/No)

2. But the reality is different: • In a special survey of 29 companies in July 2014 some said “No” • Lack of harmonisation. Example of 15 listed groups, whose data have to be provided in their Annex; some results:

1. Lack of harmonisation in definition of plans (who will provide the shares): parent company shares / subsidiaries (Spanish or foreign) 2. Lack of harmonisation in information disclosed: compensation to employees well declared; difficult to distinguish between financial transactions and revaluation

• Anyway, information received during 2015 has improved its quality 30

2.3 Other uses of CBSO in FASE: SNA 2008, Stock Options at NFCs

31

2.3 Other uses of CBSO in FASE: SNA 2008, Holding Companies in Spain

1. We follow the decisions taken by the Task Force on Holding Companies, Head Offices and similar entities (June 2013), in brief:

1. To be an institutional unit (independence), and signs (obtained by CBSO): 1. More than 1 owner 2. In all cases when the owner is “Rest of the world” (non-resident units)

2. Declaring itself to be a holding company (NACE 6420) and having more than 50% of its assets in shares and other equity, and less than 3 employees (0,1 or 2) 3. Not having significant turnover

2. Some figures: 1. Number of corporations changed from NFCs to Financial institutions: 370 2. Balance sheet data transferred (% of GVA)

1. Total liabilities (18%) 2. Loans (3%) 3. Shares and other equity (15%)

2.3 Other uses of CBSO in FASE: NFC balance sheets, proxy to market value (non-financial assets)

Valuation of tangible fixed assets, methodological summary of adjustment Hypothesis: - The book value of capital assets at 1983 was similar to market value (General Budget Law) - Companies depreciate their assets using the straight-line method Calculations by company: - Classification of tangible fixed assets into two groups: construction and others - Calculation of average age of each group - Elimination of effects of legal or voluntary revaluations - Calculation of market (current) value of each group of assets by applying an index price Remarks:

- Fixed assets in progress and computers and communications equipment are excluded from the calculations and are valued at book value - Companies with tangible fixed assets over €200 million are reviewed individually

32

2.3 Other uses of CBSO in FASE: NFC balance sheets, proxy to market value (non-financial assets)

20,0

25,0

30,0

35,0

40,0

45,0

50,0

55,0

60,0

0

100.000

200.000

300.000

400.000

500.000

600.000

700.000

800.000

900.000

1.000.000

1.100.000

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

EUR

mill

ions

MARKET VALUEBOOK VALUEREVALUATION RATE

TANGIBLE FIXED ASSETS

%

33

CBSO, a source of microdata on non-financial corporations. Used in Financial Accounts



1. Products and uses of the Spanish CBSO 2. Towards a full set of accounts for NFCs: MENF project 3. Other uses: Stock options / Holding companies / Non-financial assets of NFCs (market value)



34

3. Valuing unlisted shares of NFCs at market value. Conceptual framework

SNA 2008. (13.71).“When actual market values are not available, an estimate is required. Alternative methods of approximating market value of shareholders’ equity in a direct investment enterprise follow. These are not ranked according to preference, and each would need to be assessed according to the circumstances and the plausibility of results.” Among these alternative methods, SNA includes the PRESENT VALUE/PRICE TO EARNINGS RATIOS: “The present value of unlisted equity can be estimated by discounting the forecast future profits. At its simplest, this method can be approximated by applying a market or industry price-to-earnings ratio to the (smoothed) recent past earnings of the unlisted enterprise to calculate a price. This method is most appropriate where there is a paucity of balance sheet information but earnings data are more readily available.”

ESA 2010 (7.73) “The values of unlisted shares, which are not traded on organized markets,

should be estimated with reference to either (a) the values of quoted shares where appropriate, (b) the value of own funds, or (c) discounting forecast profits by applying an appropriate market price to earnings ratio to the smoothed recent earnings of the institutional unit. However, these estimates should take into account differences between listed and unlisted shares, notably their liquidity and should consider the net worth accumulated over the life of the corporation and its branch of business.”

35

Legal form and marketability of NFCs in Spain (2012): a narrow market

3. Valuing unlisted shares of NFCs at market value. Why we rule out the first option (value of listed shares)

36

Abs. Number % Abs. Number %Consolidated employees (3)

TOTAL NON-FINANCIAL FIRMS 2.794.163 100,00 9.401.023 100,00

A.- SOLE PARTNERSHIPS 1.570.670 56,21 1.165.837 12,40

B.- NON FINANCIAL CORPORATIONS 1.223.493 43,79 8.235.186 87,60

1.- Public limited companies 93.830 3,36 3.251.107 34,58

1. Quoted 144 0,01 146.058 1,55

1. Continuous market 98 0,00 140.388 1,49 1.447.869 Of which, IBEX-35 25 0,00 77.747 0,83 1.093.183 2. MAB 22 0,00 1.741 0,02 1.741 3. Floor trading. 22 0,00 3.826 0,04 11.076 4. Quoted abroad 2 0,00 103 0,00 857

2. Unquoted 93.686 3,35 3.105.049 33,03

2.- Privated limited companies 1.107.254 39,63 4.724.820 50,26

3.- Other corporate status 22.409 0,80 259.259 2,76

(1)(2) Source: INE and data estimated by the Banco de España Central Balance Sheet Data Office

(3) Includes employees from both national and international companies of the group

Source : Central Directory of Firms (DIRCE) of the National Institute of Statistics (INE)

Number (1) Employees (2)

Unlisted public limited companies are not well represented in Spain by listed ones (with the exception of banks) because:

– Listed public limited companies are usually bigger than unlisted ones – Listed public limited companies usually have a different financial structure to

unlisted ones – Listed public limited companies are concentrated in particular economic activities

that usually demand a larger volume of funds – The number of listed public limited companies is very small relative to the total – Main problem, anyway: the value of listed companies refers to their group value

(including Spanish and foreign subsidiaries) What about a PanEuropean database for this purpose?

– It was tried, but it wasn’t a success – Two main objections: i) a Spanish or Greek company, for example, would be valued

according to the value of a German company; and ii) capitalisation values international listed groups, not only the national part of them, so is it realistic to apply valuations of multinationals to unlisted medium-sized corporations?

The discount method based on listed shares also has most of these limitations, but it is probably more accurate and it is certainly the method preferred by financial analysts (the value of a company depends on the elements implicit in the discount, more than on own funds)

3. Valuing unlisted shares of NFCs at market value. Why we rule out the first option (value of listed shares)

37

Market value of shares issued by unlisted non-financial firms: present value of future profits generated by such firms

Where ONRq (Ordinary net result) is the expected profit for the following year, and dc is the implicit discount factor

Market value of listed firms: obtained by dividing their expected profits by a discount factor

Underlying this method is the hypothesis that the profits generated by these firms are considered to be perpetual

Risk-free interest rate

Risk premium

(-) Expected growth rate of profits

ONRq

dq

Capitalisation = MVq =

3. Valuing unlisted shares of NFCs at market value. Formula used

38

As in the case of listed shares, the following expression can be deduced for unlisted shares:

ONRnq ONRnq

dnq dq + 0,03MVnq= =

ONRnq is calculated, company by company in the database, as the weighted average of ordinary net profit over the last five years, as follows:

5ONRnqn +4ONRnqn-1 +3ONRnqn-2 +2ONRnqn-3 +ONRnqn-4

15ONRnq =

NB: More than 50,000 public limited companies are available for this calculation out of a total population of around 93,000.


39

Ordinary Net Profit (ONP) is defined as :

Gross Value Added at factor cost <Personnel Costs>

<Net Financial Charges>

<Operating Depreciation and Provisions> Ordinary Net Profit (ONP) <Corporate income taxes>

<Other net provisioning> <Capital losses and extraordinary expenses>

Capital gains and extraordinary revenue Net Profit


40

In relation to dq:

dq is calculated as the median of the discount rates of all the listed non-financial corporations traded on the continuous market, which means excluding floor-traded companies

Extremely volatile corporations are stripped out of the aggregate by means of the trust interval, which is defined as the average plus/minus twice the standard deviation

In the first years of MENF, sector differentiation was applied in the case of the electricity sector owing to its specific characteristics; it is now estimated with the rest

In relation to dnq:

dnq is defined as: where: a) 0.03 is the illiquidity premium which also includes the possibility that unlisted

public limited companies’ profits are not as perpetual as those of listed ones b) This premium has been quantified according to theoretical analysis of the gap

between perpetual income and temporary income

dnq = dq + 0,03


41

3. Valuing unlisted shares of NFCs at market value. Some results: comparison quoted/unquoted

-50%

-40%

-30%

-20%

-10%

0%

10%

20%

30%

40%

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

UNQUOTED SHARES QUOTED SHARES

42

43

Working Group on Unquoted Shares (WGUS): Results obtained:

3. Valuing unlisted shares of NFCs at market value. Some results: comparison to PanEuropean data

0.0

2.0

4.0

6.0

8.0

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

Capitalization / Own Funds: The Median. Its fluctuation band in Europe

Spain

Cap. / Own Funds

100,000

300,000

500,000

700,000

900,000

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

Market value of Spanish unquoted shares: Pan-European Capitalization/Own Funds ratio versus

Present value of future profits

By using the Pan-European Database Median (1)

By using the Present Value of Future Profits

(1) Median from the breakdown by activity in Europe

The Central Balance Sheet Data Office Division

Find out more at: http://www.bde.es/webbde/en/cenbal/cenbal.html About FASE: http://www.bde.es/f/webbde/SES/Secciones/Publicaciones/PublicacionesSeriadas/NotasEstadisticas/07/nest05e.pdf About ECCBSO (and its databases, BACH, ESD and ERICA) at: http://www.eccbso.org/ About XBRL Spain at: http://www.xbrl.es

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http://www.bde.es/webbde/en/cenbal/cenbal.html

http://www.bde.es/f/webbde/SES/Secciones/Publicaciones/PublicacionesSeriadas/NotasEstadisticas/07/nest05e.pdf

http://www.bde.es/f/webbde/SES/Secciones/Publicaciones/PublicacionesSeriadas/NotasEstadisticas/07/nest05e.pdf

http://www.eccbso.org/

http://www.xbrl.es/

STATISTICS DEPARTMENT

ANY QUESTIONS?

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