Deloitte Belgium has released its Chief Financial Officer (CFO) survey: “Benchmarking Corporate Financial Attitudes”. This is the first edition in what will become a quarterly poll of chief financial officers and group finance directors of Belgian companies. It is also the first to gauge attitudes to valuations, risk and financing of major corporate users of capital in Belgium.

The global economy is in the middle of the worst recession in decades. Just as the EU economy has not escaped this worldwide downturn, so too has Belgian GDP growth decreased over the last months. According to the EU Commission’s January forecast, Belgian GDP is expected to fall by nearly 2% in 2009. It should recover gradually to around 0.5% in 2010, partly because of the effects of policy measures at European and national levels under the European Economic Recovery Plan (EERP).

It was in this context that the first Deloitte quarterly CFO Survey took place between 21 March and 10 April. During our survey, 53 CFOs participated, representing both listed and non-listed companies. “Although the survey shows a certain amount of optimism in Belgium, it is tempered with a lot of caution,” comments Thierry Van Schoubroeck, Partner in charge of Deloitte CFO Services.

Deloitte CFO Survey 2009 Q1: key findings

• Most CFOs say that base rate cuts and government action to bolster the financial system have had little or no effect on the price or availability of new credit. Credit conditions for corporations have improved slightly but remain very tough.
• CFOs are more positive about the future and believe that credit conditions will improve. A majority of respondents expect an improvement in the price and availability of credit in the first half of 2010.
• Leverage is high on the agenda. One third of the CFOs think that the balance sheets of Belgian companies are over-leveraged. CFOs expect a shift in balance sheet components away from debt and towards equity, as soon as the economy recovers.
• CFOs’ sentiments about the prospects of their own organization remain depressed: 40% of the CFOs are still more pessimistic than 3 months ago.
• Forty percent expect the free cash flow of their companies to decrease in the next 12 months.
• The majority of the CFOs expect the demand for their products and services to increase as of the first half of 2010.
• Seventy percent of the Corporates surveyed are cutting current employee numbers or are planning to do so. However, in smaller companies this number is reduced to 22%. Cost cutting is a universal theme and capital spending is severely under pressure.
• According to 60% of those surveyed, M&A activity will increase in the coming months.
• CFOs generally think that equities are undervalued: they expect the Bel20 to be higher in 12 months time.

Going forward

“The real value of the survey data lies less in the absolute value of each indicator than in the identification of trends and possible turning points,” explains Thierry Van Schoubroeck. “Hence, we are already looking forward to the 2009 second quarter Deloitte Belgian CFO Survey to be conducted in the second half of June.”

The report

To download the results of the Deloitte CFO Survey, please see Downloads below or visit the Deloite Belgian CFO survey web page. 
For further information about the survey or about taking part in the next edition, please contact Thierry Van Schoubroeck.

About Deloitte
A leading audit and consulting practice in Belgium, Deloitte offers value added services in audit, accounting, tax, consulting and corporate finance. In Belgium, Deloitte has more than 2.400 employees in over 14 offices across the country, serving national and international companies, from small and middle sized enterprises, to public sector and non-profit organisations. The turnover reached 308 million euro in the financial year 2008.

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