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The CFO Survey
Q22013
Just when you thought it was safe to go back in the water
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Contents
The Deloitte CFO Survey targets the CFOs o major Australian listed companies.
It has been conducted on a quarterly basis since the third quarter o 2009. This survey
covers the second quarter o 2013 and took place between 26 June 2013 and 12 July
2013. 54 CFOs participated, representing businesses with a combined market value
o approximately $220 billion or 16% o the Australian quoted equity market.
The Deloitte CFO Survey 04
Confdence rocked by slowdown in China 06
Impact o uncertainty 08
Falling dollar and interest rates provide some relie 11
Credit cheaper and more available 14
Appendix 16
Contact us 18
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Contacts
Keith Skinner
Chie Operating Oicer
Tel: +61 2 9322 7580
email: [email protected]
Stephen Gustason
Partner
Tel: +61 2 9322 7325
email: [email protected]
Following three quarters o escalating optimism, conidence among Australian CFOs
has taken a dive, reaching its lowest level since 2009 when we irst conducted the
Deloitte CFO survey.
In stark contrast, CFOs in North America and the United Kingdom continue to ride a
wave o improving conidence, enjoying their highest levels o optimism in recent years.
CFO sentiment has previously tracked in line across the three regions; this is the irst
time we have seen a signiicant divergence.
So why have Australian CFOs become so glum?
Respondents pinpointed the slowdown in China as the most negative impact on
optimism. But should Chinas 7.5% growth ring alarm bells or Australian businesses?
This certainly conirms that conidence levels are ragile, and is likely to continue to
impact strategic decision business making.
Australian Government policy uncertainty also continues to dampen CFO optimism.
However, this d id not low through to business decisions, with the majority o
CFOs reporting that the orthcoming election was not inluencing their plans or
acquisitions, divestments, hiring or capital expenditure.
This quarters survey also ollowed continued commentary about Australias economic
challenges post the mining investment boom, a series o proit downgrades or major
corporates and soter economic data around exports, imports and manuacturing.This may help to explain why CFOs are less positive than they were three months ago.
Although optimism is down, the beneits o the lower dollar and interest cuts are
slowly starting to emerge. While close to 50% o CFOs said that interest rates and
the value o the dollar were having a positive inluence, they still view the multi-speed
economy as hurting businesses, which indicates that the dollar may continue to drop.
Overall, while we have seen a heightened interest in M&A, and although credit is
becoming cheaper and more available, CFOs are still waiting or more certainty beore
they consider getting back in the water.
Keith Skinner
Chie Operating Oicer
For additional copies o this report pleasecontact Kirstie Williams on +61 2 9322 3881or email [email protected]
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The Deloitte CFO SurveyJust when you thought it was
sae to go back in the waterKey points rom the CFO Survey
CFOs net optimism has allen to its lowest
level since the survey began, ollowing
three consecutive quarters o positive
growth
The slowdown in China has had the
biggest negative impact on CFOs
optimism, edging out the previous
ront-runner, Australian Government
policy uncertainty, which continues to
have a signiicant negative impact
Appetite or risk has dipped again; only
a quarter o CFOs believe now is a good
time to take risk onto the balance sheet
More than hal o the CFOs surveyed
showed renewed interest in M&A, while
organic growth remains the leading
business strategy or the year ahead
Expectations or the value o the
Australian dollar have shited signiicantly;
hal o the respondents expected it to all
beneath US$0.90, compared to zero who
expressed the same expectation in the last
survey
More than hal o CFOs said the
depreciation o the Australian dollar
had improved their companys inancial
prospects while the majority agreed
that it improved Australias global
competitiveness
Views on interest rates shited
signiicantly; two-thirds o CFOs
expected rates to all urther below2.75%, compared to 8% who predicted
this in the last quarter
While the upcoming Federal election
is impacting business conidence,
it was generally not seen as a reason or
deerring capital expenditure, acquisitions,
divestments or hiring
CFOs reported that credit is cheaper and
more available now than any other time in
recent years, but companies continue to
be cautious in their approach to gearing.
Conidence rocked by slowdown in China
Net optimism among CFOs dropped to its lowest level
since the survey began, ollowing three consecutive
quarters o rising optimism.
CFOs are becoming less concerned about U.S. and
European economic issues. But the slowdown in China
has made a major dent in conidence, with 85% o
CFOs citing it as a negative impact, up rom 34% in
Q1 2013. This makes China the biggest concern or
Australian CFOs, relecting the challenges and concerns
that are continuing to emerge post the mining
investment boom.
Not withstanding China, Federal Government policy
uncertainty continued to be a signiicant actor having
a negative impact on 75% o CFOs.
Meanwhile, CFOs in the United Kingdom and North
America continue to report rising optimism relecting
the strengthening o their local economies. While CFO
sentiment in the three regions has traditionally tracked
in line, this is the irst time we have seen signiicant
divergence in conidence levels.
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Impact o uncertainty
CFOs reported that their general levels o economic
uncertainty have crept up again; 83% gauged
economic uncertainty as above normal, up rom 58%
last quarter. Most believe that this will be with us or
more than another year. Appetite or risk also dipped;
less than a quarter o respondents considered this to
be a good time to take risk onto the balance sheet.
These levels o uncertainty were driven to an extent
by the orthcoming Federal election which was having
a negative impact on the conidence o close tohal the CFOs surveyed. But interestingly, CFOs were
not letting the election get in the way o business
strategies such as capital expenditure, acquisitions,
divestments or hiring.
Falling dollar and interest rates provide some
relie
As expected, alling interest rates and the depreciation
o the Australian dollar have had the most positive
impacts on CFO optimism, improving the outlook o
44% and 46% o respondents respectively.
52% o CFOs said the lower dollar has improved theircompanys inancial prospects, while 83% said it has
improved Australias global competitiveness. CFOs
expect the value o the Australian dollar to shit down
signiicantly over the coming year, in the wake o its
recent depreciation.
Similarly, CFOs are expecting interest rates to all
urther. 65% o CFOs expect rates to land below
2.75% in the next 12 months, compared to only
8% who predicted this in the Q1 survey.
Credit cheaper and more available
CFOs stated that credit is cheaper and more available
now than at any other time since the survey began
clearly inluenced by the recent all in interest rates.
Bank borrowing has continued to surge in popularity;
79% o the CFOs surveyed viewed it as an attractive
or very attractive option. Meanwhile, the appeal
o corporate debt, internal unding and equity has
remained airly stable compared to the previous
quarter.
CFOs were divided on the outlook or gearing,
with 28% expecting it to increase and 24% planning to
reduce gearing. This suggests that while debt is more
available and aordable, companies are still exercising
caution and conservatism with their own balance
sheets; a possible orward indicator o things to come.
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Confdence rocked byslowdown in China
Chart 1
Financial prospects
Net percentage o CFOs who are more optimistic about the fnancial prospects o
their company than they were three months ago
Net percentage o international CFOs who are more optimistic about the fnancial
prospects o their company than they were three months ago
Net optimism among CFOs took a sharp dive rom 24%
to -11%, ollowing three consecutive quarters o rising
optimism. This is the lowest level o conidence since the
survey began in 2009. Despite this, more than hal (52%)
o CFOs are broadly unchanged in their eelings about
their companys inancial prospects.
1 The Deloitte CFO Survey (UK): Planning for Growth
(Q2 2013), Deloitte.
2 CFO Signals: what North Americas top finance executives
are thinking and doing (Q2 2013), Deloitte.
These results have bucked the trends shown by CFOs in
North America and the UK, who are continuing on the
trajectory o growing optimism. Net conidence among
CFOs in the UK has risen or the ourth consecutive
quarter to net 18%, which is now above its long-term
average1. This comes o the back o reduced concern
about the risk o a breakup in the Euro area, and
waning perceptions o external macroeconomic and
inancial risk.
For North American CFOs, net optimism continued
to rise, reaching 48% in Q22 up rom 32% in Q1.
This may be attributed to the U.S. emerging rom a
particularly weak period and now showing stronger
signs o growth.This divergence o conidence between Australian
CFOs and their North American and UK counterparts
has not been seen in the past three years as conidence
levels have generally tracked quite consistently across
the three regions.
-20%
-10%
0%
10%
20%
30%
40%
50%
60%
70%
80%
51%
25%
45% 45%41%
25%
4%
-10%
-5% -5%
0%
8%
24%
-11%
Q1-10 Q2-10 Q3-10 Q4-10 Q1-11 Q2-11 Q3-11 Q4-11 Q1-12 Q2-12 Q3-12 Q4-12 Q1-13 Q2-13
Q2-11 Q3-11 Q4-11 Q1-12 Q2-12 Q3-12 Q4-12 Q1-13 Q2-13Q1-11
-50%
-40%
-30%
-20%
-10%
0%
10%
20%
30%
40%
50%
Net % Australia Net % UK Net % North America
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Chart 2
Impact on levels o optimism
Extent to which CFOs net optimism levels have been aected by global and
domestic economic actors
This quarter, conidence levels were most prooundly
inluenced by the slowdown in China, with 85% o
CFOs citing it as a negative impact, up rom 34%
who elt this way in Q1. This makes China the biggest
concern or Australian CFOs. Federal Government
policy uncertainty continued to have a signiicant
negative impact on 75% o CFOs, consistent with the
past ew quarters.
CFOs continue to be less concerned about U.S. and
European economic issues. 48% o respondents elt
the U.S. economy had a positive impact on theirconidence while 28% still elt that the European
economic conditions made them eel less conident.
As expected, alling interest rates and the depreciation
o the Australian dollar also had a positive impact on
CFO optimism, at 44% and 46% respectively. 63% o
respondents elt that the multi-speed economy is still
hurting business, indicating that the dollar may have
urther to all.
-100%
-80%
-60%
-40%
-20%
0%
20%
40%
Q2-12 Q3-12 Q1-13 Q1-13 Q2-13
Positiveimpact
Negativeimpact
U.S. economic uncertainty European sovereign debt Slowdown in China
Q2-12 Q3-12 Q4-12 Q1-13 Q2-13
Value of Aust. doll ar Interest rates Fed. Govt. poli cy uncertainty
Multi-speed economy
Positiveimpact
Negativeimpact
-100%
-80%
-60%
-40%
-20%
0%
20%
40%
60%
Deloitte perspective
Is China really to blame or the gloom? The answer may be a mixture oreality and perception. Chinas recent growth rate o 7.5% is well below previousdecades, but is still solid and likely to remain so or some time to come. Despite concerns
about the impact o commodity prices on Australias mining revenues as well as therecent threat o unsustainable credit growth, Chinas impact on Australia in the
past has been signifcantly positive. While this impact may lessen, the underlyingtrend should provide some reassurance to Australian CFOs.
Matt Judkins, Partner, China Services Groups, Inrastructure and Commercial Advisory Lead
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Chart 4
Timerame or uncertainty
CFOs expectations o how long the current levels o uncertainty will last
The largest proportion o CFOs (59%) expected the
current level o uncertainty to last between one and two
years, with another 20% estimating two to three years.However, an optimistic group o CFOs (15%, up rom
11% in Q1) still believe the uncertainty will lessen within
a year.
Chart 3
Financial and economic uncertainty
CFOs views on the general level o external fnancial and economic uncertainty
acing businesses
CFOs general levels o economic uncertainty have crept
up again to the highest levels since this time last year.
83% o respondents regarded economic uncertainty
as above normal, up rom 58% last quarter. Only 17%
classiied the prevailing economic conditions as normal.
Impact o uncertainty
Deloitte perspective
Domestic politics has been driving business uncertainty or several quarters nowand wed hoped the election could provide the trigger o confdence needed to jump
start the economy. People want certainty and rationality and a consistent narrative.But people are still asking i policy will be any more certain ater the election. The recent
decisions on things like 457 visas, carbon tax and Fringe Benefts Tax appear to beaecting business and business confdence.
Proessor Ian Harper, Partner, Deloitte Access Economics
90%
70%
50%
30%
0%
10%
20%
40%
60%
80%
Q2-11
6%
13%
6%
27%
Q3-11 Q4-11 Q1-12 Q2-12 Q3-12 Q4-12 Q1-13 Q2-13
Very high level of uncertainty High level of uncertainty Above normal level of uncertainty
7%
34%
1%
25%
6%
28%
23%
7%
18%
3%
10%
4%
22%
49%
44%
38%
43%
53%
54%51%
45%
57%
0%
10%
20%
30%
40%
50%
60%
Q2-13Q1-13Q4-12Q3-12
Less thanone year
More thanone year
More thantwo years
More thanthree years
15%11%12%
6%
20%16%
26%24%
4%8% 8%7%
2%
10%
3%4%
59%55%
51%
59%
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Although the impending election aected CFOs
conidence levels, the majority did not see it as a
reason to deer key business strategies like capital
expenditure (87%), acquisitions (81%), divestments
(83%) or hiring (85%). This suggests that the corporate
sector is not letting the election inluence their business
decisions.
Chart 7
Impact o the upcoming Federal election on business strategies
Extent to which the upcoming Federal Government election was a signifcant driver
in the decision to deer the ollowing business strategies
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
Capital expenditure Acquisitions Divestments Hiring
Yes No N/A
6% 7%4%
87%
81%83%
15%17%
0%
6%9%
85%
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Chart 8
RBAs ofcial cash interest rate
Chart 9
Value o the Australian dollar
Following a cut to the RBAs oicial cash interest rate
in May to an all-time low o 2.75% over 65% o
CFOs expect it to all even urther. This is a signiicant
shit rom Q1, when only 8% o respondents expected
the oicial cash rate to be lower than 2.75% and 67%
expected it to be 3% or higher. In this survey,
only 19% expect it to be higher in a years time.
Expectations or the value o the Australian dollar
have shited signiicantly down by 10 cents in many
cases ollowing its recent depreciation. While over
hal the CFOs surveyed last quarter believed the
Australian dollar would land between US$1.00 and
US$1.05 in a years time, only 2% held that view in Q2.
Now, 50% o CFOs believe the dollar will all below
US$0.90 compared to zero in the previous survey
and 44% believe it will land between US$0.90 and
US$0.95.
Falling dollar and interestrates provide some relie
0%
10%
20%
30%
40%
50%
< 2.5% 2.5% 2.75% 3.0% 3.25% 3.5% > 3.5%
Q1-13 Q2-13
0%
17%
8%
48%
26%
17%15%
34%
18%
4%
13%
0%2%
0%
< U.S. $0.90 U.S. $0.90 $0.95
U.S. $0.95$1.00
U.S. $1.00$1.05
U.S. $1.05$1.10
> U.S. $1.10
0%
10%
20%
30%
40%
50%
60%
70%
50%
3%0%
44%
29%
4%
55%
2%
11%
0%2%
0%
Q1-13 Q2-13
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Chart 10
Extent to which the recent depreciation o the dollar has improved
companies fnancial prospects and Australias global competitiveness
Chart 11
Australian business metrics
52% o CFOs said that the recent depreciation o the
Australian dollar had improved their companys inancial
prospects, while 83% agree that it has improved
Australias global competitiveness.
Expectations or revenue growth have weakened
slightly compared to the previous two quarters,
with 65% o CFOs expecting an increase. The ocus
remains on improving operating cash lows, with
decreasing discretionary spending and inancing
costs expected also. On the employment ront;
37% o CFOs expect to increase headcount in the
next 12 months, up rom 34% last quarter.
Revenues
Operating margins
Operating costs
Headcount
Discretionaryspending
Financing costs
Operatingcash flow
Levels of cashholdings
Inventory levels
Capital expenditure
Bank borrowing
Bond issuance
Equity issuance
Dividends/
share buybacks
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
2% 20% 70% 7%
2%4% 17% 78%
2%17% 81%
2% 35% 41% 20% 2%
6% 22% 44% 24% 4%
9% 69% 22%
31% 43% 22% 4%
4% 50% 24% 20% 2%
2% 19% 37% 43%
17% 39% 37% 7%
4% 33% 30% 33%
4% 56% 15% 26%
28% 35% 33% 4%
13% 52% 17% 4%15%
Increasesomewhat
No change Decreasesomewhat
Decreasesignificantly
Increasesignificantly
0% 20% 40% 60% 80% 100%
ImprovedAustralias globalcompetitiveness
Improved thecompanys
financialprospects
Strongly agree Agree Neutral Disagree Strongly disagree
13%
13%
70% 17%
33% 11% 4%39%
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Chart 12
Business strategies
Net percentage o CFOs who have identifed the ollowing business strategies as a
priority over the next 12 months
There are signs o renewed interest in M&A among
54% o CFOs, up rom 40% or the irst quarter o 2013,
which relects ongoing consolidation in the economy.
Organic growth continued to be a strategic priority
or 63% o respondents, and close to hal identiied
introducing new products and services or expanding
into new markets and renegotiating inance acilities. On
the other hand, it will be a quiet year ahead or capital
raisings and asset disposals, with 80%
o respondents reporting no planned movement in
these areas.
Deloitte perspective
They say you can lead a horse to water...While CFOs are cashed up with cheaperand more available unding, they are still sitting on their hands, reluctant tomake the big investment decisions. CFOs cant see their way clear even though the
conditions are all systems go. The transition rom the investment phase o the mining
boom to the export phase has been bumpier than expected with exports slower to take oand a shortage o business investment.
Proessor Ian Harper, Partner, Deloitte Access Economics
0% 20% 40% 60% 80% 100%
Increasesomewhat
No change Decreasesomewhat
Decreasesignificantly
Increasesignificantly
Introducing new products/services or expanding
into new markets
Leverage
Asset disposal
New capital raising
Renegotiatingfinancing facilities
Organic expansion
M&A 13% 41% 46%
6% 57% 31% 6%
4% 43% 50% 4%
2% 28% 52% 19%
2% 17% 80% 2%
4% 17% 80%
6% 43% 48% 4%
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Chart 13
Favoured sources o corporate unding
Net percentage o CFOs reporting the ollowing unding sources as attractive
Bank borrowing has continued to surge in popularity
ollowing urther cuts to interest rates; 79% o
participating CFOs viewed it as attractive or very
attractive. The attractiveness o corporate debt, internal
unding and equity remained airly stable relative to the
previous quarter.
Chart 14
Cost and availability o credit
Net percentage o CFOs reporting that credit is available and the net percentage o
CFOs reporting that credit is expensive
Ater the RBA dropped interest rates to 2.75% in May,
CFOs perception that credit is expensive ell to their
lowest level since the survey began 41% said they
ound credit either somewhat or very cheap. The
accessibility o credit also continued to improve; 85%
o CFOs said credit was somewhat or very available and
only 9% ound it hard to get. These results make it clear
that credit is cheaper and more available now than any
other time since the survey began.
Credit cheaper andmore available
Q4-12 Q1-13 Q2-13Q3-12Q2-12Q1-12Q4-11Q3-11
Bank borrowing Corporate debt Equity Internal funding
-60%
-40%
-20%
0%
20%
40%
60%
80%
Cost Availability
-20%
0%
20%
40%
60%
80%
Q3-12Q2-12 Q4-12 Q1-13 Q2-13Q1-12Q4-11Q3-11Q2-11Q1-11Q4-10Q3-10Q2-10Q1-10
Creditcheap
Creditunavailable
Cre
ditcostly
Cred
itavailable
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Chart 16
Bank lending standards and credit terms
CFOs views on how bank lending standards and credit terms have changed
over the past 12 months
Close to one-third o CFOs reported increases in the
maximum size o credit lines over the past 12 months,
while another 30% indicated that maximum loan terms
were getting higher. 43% o respondents said they were
seeing lower margins over base lending rates a sign
o increasing competitiveness in the corporate lending
market.
More than 70% o CFOs reported no change to loan
documentation requirements, covenant requirements,
liquidity requirements and minimum interest coverage
ratios over the past 12 months.
Chart 15
Level o gearing on Australian corporate balance sheets
Net percentage o CFOs who expect to increase their own company gearing
in the next 12 months
While 50% o CFOs thought Australian balance sheets
were optimally geared, 43% still viewed balance
sheets as under-geared. Only 28% o CFOs expected
to raise their own company gearing levels in the next
12 months, whereas 24% o CFOs expected to reduce
gearing. So, although debt continues to be aordable
and available, companies are still taking a cautious
approach to gearing.
Documentationrequirements
Liquidity facilities
Fees
Covenantrequirements
Margin over baselending rate
Maximumloan term
Minimum interestcoverage ratios
Maximum size ofcredit lines
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
7%57%
31%4%
11%
4%7%
78%
57%9%
4%30%
7%37%
43%13%
9%
11%74%
6%
7%61%
19%13%
11%81%
6%2%
7%76%
4%13%
Higher Lower No change N/A
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16/2016
Appendix
A note on methodology
Many o the charts in the Deloitte CFO Survey show the results in the orm o a net balance. For example, this net balance could represent the
percentage o respondents reporting that bank credit is attractive, less the percentage saying bank credit is unattractive. This is a standard way
o presenting survey data. To aid interpretation o the results, this table contains a ull breakdown o responses to some o the questions covered
in this report which have historical signiicance. Due to rounding, responses to the questions covered in this report may not sum to 100.
Q2
2013
Q1
2013
Q4
2012
Q3
2012
Q2
2012
Q1
2012
Q4
2011
Q3
2011
Q2
2011
Q1
2011
Q4
2010
Q3
2010
Q2
2010
Q1
2010
Q4
2009
Q3
2009
Chart 1: Compared to three months ago how do you feel about the financial prospects for your company?
Signiicantly more optimistic 0% 3% 7% 6% 0% 5% 4% 6% 3% 9% 6% 7% 6% 18% 13% 15%
Somewhat more optimistic 19% 32% 26% 17% 16% 33% 22% 17% 20% 45% 42% 48% 34% 39% 48% 57%
Broadly unchanged 52% 53% 42% 55% 63% 50% 42% 45% 58% 33% 48% 34% 46% 37% 37% 28%
Somewhat less optimistic 26% 11% 22% 21% 21% 13% 29% 29% 19% 12% 2% 11% 11% 5% 2% 0%
Signiicantly less optimistic 4% 0% 3% 1% 0% 0% 3% 4% 0% 1% 2% 0% 3% 1% 0% 0%
Chart 3: How would you rate the general level of external financial and economic uncertainty facing your business?
Very high level o uncertainty 4% 3% 7% 0% 6% 1% 7% 6% 6%
High level o uncertainty 22% 10% 18% 23% 28% 25% 34% 27% 13%
Above normal level o uncertainty 57% 45% 51% 54% 53% 43% 38% 44% 49%
Normal level o uncertainty 17% 42% 25% 24% 13% 26% 19% 20% 33%
Below normal level o uncertainty 0% 0% 0% 0% 1% 5% 1% 2% 0%
Chart 5: Is this a good time to be taking greater risk onto your balance sheet?
Yes 24% 34% 23% 14% 23% 46% 25% 45% 49% 52% 45% 35% 42% 53% 35%
No 76% 66% 77% 84% 78% 54% 67% 55% 51% 48% 55% 60% 58% 47% 65%
N/A 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 5% 0% 0% 0%Chart 13: How do you currently rate bank borrowing as a source of funding for Australian corporates?
Very attractive 20% 15% 8% 6% 4% 5% 4% 0% 8% 6% 8% 2% 2% 4% 2% 12%
Somewhat attractive 59% 52% 49% 44% 46% 39% 36% 51% 49% 34% 34% 35% 33% 39% 37% 31%
Neutral 19% 27% 26% 35% 35% 35% 38% 31% 36% 47% 44% 42% 44% 37% 25% 27%
Somewhat unattractive 2% 5% 12% 11% 13% 20% 22% 15% 8% 12% 15% 19% 16% 19% 33% 27%
Very unattractive 0% 2% 4% 4% 3% 1% 0% 2% 0% 1% 0% 1% 6% 1% 3% 3%
Chart 13: How do you currently rate corporate debt as a source of funding for Australian corporates?
Very attractive 7% 6% 4% 1% 0% 4% 3% 2% 8% 7% 5% 5% 1% 4% 5% 4%
Somewhat attractive 52% 47% 53% 42% 29% 41% 27% 24% 41% 29% 26% 31% 29% 32% 33% 25%
Neutral 31% 40% 33% 46% 51% 35% 41% 51% 38% 42% 50% 41% 46% 37% 30% 33%
Somewhat unattractive 9% 5% 10% 7% 16% 19% 27% 21% 13% 20% 16% 21% 22% 28% 32% 33%
Very unattractive 0% 2% 0% 3% 4% 1% 1% 1% 1% 1% 3% 2% 1% 0% 0% 4%
Chart 13: How do you currently rate equity issuance as a source of funding for Australian corporates?Very attractive 0% 8% 1% 1% 0% 4% 0% 1% 2% 6% 6% 4% 2% 5% 10% 15%
Somewhat attractive 24% 24% 18% 20% 16% 20% 12% 17% 30% 41% 42% 42% 34% 52% 37% 45%
Neutral 48% 31% 36% 31% 18% 34% 30% 26% 34% 24% 31% 22% 33% 29% 37% 16%
Somewhat unattractive 15% 26% 38% 31% 45% 30% 37% 35% 31% 28% 18% 24% 26% 13% 15% 22%
Very unattractive 13% 11% 7% 17% 21% 13% 21% 21% 4% 1% 3% 8% 6% 1% 2% 1%
Chart 13: How do you currently rate internal funding (from profits) as a source of funding for Australian corporates?
Very attractive 17% 29% 26% 15% 29% 23% 27% 33%
Somewhat attractive 43% 34% 36% 61% 44% 43% 47% 39%
Neutral 39% 32% 34% 21% 23% 30% 19% 21%
Somewhat unattractive 2% 3% 4% 1% 0% 3% 5% 4%
Very unattractive 0% 2% 0% 1% 5% 3% 1% 2%
7/27/2019 Deloitte CFO Survey Q22013 Web
17/2017
Q2
2013
Q1
2013
Q4
2012
Q3
2012
Q2
2012
Q1
2012
Q4
2011
Q3
2011
Q2
2011
Q1
2011
Q4
2010
Q3
2010
Q2
2010
Q1
2010
Q4
2009
Q3
2009
Chart 14: How would you rate the overall cost of new credit for Australian corporates?
Very costly 0% 5% 5% 7% 8% 13% 8% 7% 2% 7% 11% 8% 11% 13% 15% 25%
Somewhat costly 20% 26% 36% 42% 50% 55% 56% 51% 49% 59% 56% 73% 64% 49% 68% 58%
Neutral 39% 39% 36% 38% 30% 24% 25% 37% 42% 33% 32% 18% 24% 33% 13% 10%
Somewhat cheap 39% 26% 15% 11% 11% 8% 10% 4% 8% 1% 0% 1% 1% 5% 3% 6%
Very cheap 2% 5% 8% 1% 1% 1% 1% 1% 0% 0% 0% 0% 0% 0% 0% 0%
Chart 14: How would you rate the overall availability of new credit for Australian corporates?
Very available 13% 6% 15% 8% 3% 8% 5% 7% 5% 13% 15% 8% 4% 7% 3% 0%
Somewhat available 72% 61% 45% 46% 61% 59% 45% 60% 53% 41% 52% 48% 49% 54% 40% 43%
Neutral 6% 19% 25% 18% 11% 18% 14% 15% 17% 20% 15% 11% 17% 8% 13% 9%
Somewhat hard to get 9% 10% 12% 25% 20% 14% 30% 17% 15% 25% 16% 31% 28% 24% 35% 42%
Very hard to get 0% 3% 3% 1% 5% 3% 5% 1% 0% 1% 3% 2% 1% 3% 8% 6%
Chart 15: What do you think of the level of gearing on Australian Corporate Balance Sheets?
Over-geared 7% 3% 10% 15% 6% 9% 5% 2% 8% 5% 6% 5% 12% 15% 17% 12%
Optimally geared 50% 58% 52% 46% 54% 48% 53% 49% 50% 47% 48% 53% 48% 53% 58% 76%
Under-geared 43% 39% 38% 38% 40% 44% 41% 49% 42% 48% 45% 42% 39% 32% 25% 12%
Chart 15: What is your aim for your level of gearing over the next 12 months?
Raise signiicantly 2% 2% 1% 7% 4% 8% 10% 12% 8% 8% 3% 6% 9% 5% 4% 3%
Raise somewhat 26% 19% 21% 25% 28% 38% 26% 33% 29% 31% 34% 44% 33% 32% 32% 31%
No change 46% 40% 42% 31% 41% 30% 33% 36% 40% 34% 39% 27% 30% 42% 42% 42%
Reduce somewhat 22% 29% 23% 24% 21% 19% 22% 14% 16% 19% 15% 18% 20% 20% 18% 21%
Reduce signiicantly 2% 8% 7% 6% 3% 6% 5% 4% 5% 4% 3% 5% 2% 1% 3% 3%
N/A 2% 2% 5% 7% 4% 0% 4% 1% 2% 4% 6% 1% 6% 0% 0% 0%
7/27/2019 Deloitte CFO Survey Q22013 Web
18/2018
Contact us
National/Sydney
Keith Skinner
Chie Operating Oicer
Tel: +61 2 9322 7580
email: [email protected]
Brisbane
Richard Wanstall
Partner
Tel: +61 7 3308 7179
email: [email protected]
Sydney
Stephen Gustason
Partner
Tel: +61 2 9322 7325email: [email protected]
Melbourne
Paul Wensor
Partner
Tel: +61 3 9671 7067email: [email protected]
Adelaide
Jody Burton
PartnerTel: +61 8 8407 7610
email: [email protected]
Hobart
David Harradine
PartnerTel: +61 3 6237 7016
email: [email protected]
Perth
Tim Richards
Partner
Tel: +61 8 9365 7248
email: [email protected]
Western Sydney
Helen Hamilton-James
Partner
Tel: +61 2 9840 7380
email: [email protected]
7/27/2019 Deloitte CFO Survey Q22013 Web
19/2019
7/27/2019 Deloitte CFO Survey Q22013 Web
20/20
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