Material on this website is © 2012 Deloitte Global Services Limited, or a member firm of Deloitte Touche Tohmatsu Limited, or one of their affiliates. See Legal for copyright and other legal information.
Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee, and its network of member firms, each of which is a legally separate and independent entity. Please see www.deloitte.com/about for a detailed description of the legal structure of Deloitte Touche Tohmatsu Limited and its member firms.
Diverging fortunes going into 2010Deloitte Belgium publishes results of its fourth 2009 CFO Survey |
Brussels, 3 February 2010 – Growth came back to Belgium in the fourth quarter. Cautious optimism provides a bit of fresh air to business as 2010 is seen as the year of recovery. For some corporates the attention shifts from surviving to winning in a changing world after the recession. But financial conservatism and a focus on cost management stay top of mind for CFOs, along with concerns on liquidity and funding. Many worry that the recovery will be weak and that 2010 will be another difficult year.
The fourth edition of the Deloitte Belgian CFO Survey “Diverging fortunes going into 2010”, conducted from 15 December to 10 January is published today. Since the start of the year, Deloitte’s quarterly poll has explored the changing attitudes of CFOs in this country as their firms cope with this particularly challenging period.
Fresh air, fresh credit
“For the first time in a year, the expected timing of the recovery hasn’t shifted backwards,” remarked Thierry Van Schoubroeck, Partner, Deloitte CFO Services, who conducted the survey. “Corporates more and more think beyond the crisis. For the first time in a year, we see a significant reduction in typical crisis management measures.”
The stabilisation of the financial sector has led to a gradual improvement in the cost and the availability of credit for the corporate sector. Low base rates finally seem to translate into lower interest rates for corporates. “But the survey shows that for 40% of respondents bank borrowing is still difficult to obtain, “adds Thierry Van Schoubroeck.
Focus on the future
In the recession, CFOs understood the need for focusing on costs, cash and investor confidence. While this focus will continue in 2010, CFOs are also planning to expand revenues. “These priorities testify to both the risks and the opportunities that CFOs see ahead,” observed Thierry Van Schoubroeck.
Highlights of the fourth 2009 CFO Survey
Growth is back in the fourth quarter. More and more, cautiously optimistic corporates are thinking beyond the recession. While typical crisis management measures remain widespread, for the first time this year we see a significant reduction in their further implementation.
- Two-thirds of CFOs see more for their products and services in 2010. Yet concerns about the speed of the recovery remain widespread. Larger organisation are less optimistic about the timing of this acceleration.
- Over 90% of CFOs expect M&A activity to increase over the next year. One third insist their companies will be a buyer or seller in M&A activity in 2010. An additional third considers this likely.
- Gradual improvement in the cost and availability of credit. Thanks to stabilisation of the financial sector, in low base rates finally seem to translate into lower interest rates for the corporate sector as well.
- Bank borrowing remains difficult to get for 40% of corporates. Corporates are divided into two categories: those with access to credit and those without. More stringent capital adequacy requirements for banks might further increase this trend.
- Equity and bond issuance more often attractive than bank borrowing. This is particularly true for larger companies.
- Cost management stays high on the corporate agenda. Other prominent priorities are structural measures, such as off-shoring of support or core functions.
- Trust in domestic politics remains low. Respondents have little confidence in the efficiency and effectiveness of financial and economic policy making.
“Today the economy and the financial system are still a long way from normal,” concluded Thierry Van Schoubroeck, “but as the CFO Survey demonstrates, things are looking up.”
About the survey
The 2009 fourth-quarter edition of the Deloitte Belgian CFO Survey was conducted from 15 December to 10 January. A total of 50 CFOs took part. 50% represented a listed company with the rest representing privately held firms. Covering a variety of industries, 35% of the participating companies had a turnover of over €1 billion, 44% had €100 million to €1 billion, and 21% had less than €100 million.
For more details on the results, please check www.deloitte.com/be/cfo-survey
Last updated:
Contacts
- Name:
- Gaëlle Vilatte
- Company:
- Deloitte Belgium
- Job Title:
- PR Manager
- Phone:
- +32 2 600 61 64
- gvilatte@deloitte.com