The Deloitte CFO Survey Sustained optimism despite ...foreign demand. The Corporate Growth sub-index...

The Deloitte CFO SurveySustained optimism despite increasing risks

Q2 2014 Results July 2014Switzerland

Audit. Tax. Consulting. Corporate Finance.

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The Deloitte CFO Survey Sustained optimism despite increasing risks2 |

Contents

This is the 20th quarterly survey of Chief Financial Officers and Group Financial Directors of major companies based in Switzerland. The Survey gauges their attitudes towards the outlook for business, financing, risks and strategies and is designed to identify trends and key themes in the Swiss corporate sector. The CFO Survey is the only survey of its kind in Switzerland.

The Q2 2014 Survey was conducted between 26 May and 18 June 2014. A total of 120 CFOs participated, representing listed companies and relevant private companies. The participants represent all major industries in the Swiss economy.

The Deloitte CFO Survey is written and produced by Dr. Michael Grampp, Chief Economist, and Dennis Brandes, Research Manager, Deloitte Research.

A note on methodologySome of the charts in the survey show results as an index value (net balance). This is calculated by subtracting the percentage of respondents giving a negative response from the percentage giving a positive response; responses that are neither positive nor negative are deemed to be neutral. Some charts present data according to companies’ total revenue (below/above CHF 500 million) and the proportion of their revenue earned in Switzerland and abroad (predominantly in Switzerland, with less than one-third earned abroad/predominantly outside Switzerland, with more than two-thirds earned abroad).

Because of rounding, percentages may not add up to 100. To improve readability, only questions relevant to the current financial and economic situation have been included in the published survey. If you would like to receive information about unreported questions, please contact us.

Deloitte CFO Confidence Index 3

Key findings of the CFO Survey 4

Sustained optimism about the economy 5

Corporate outlook unchanged 6

Concern about increasing political risks… 7

…and about rising costs 8

A positive financing environment 9

Special questions on debt management 10

Appendix 1: Additional charts 11

Appendix 2: Data archive 12



| 3The Deloitte CFO Survey Sustained optimism despite increasing risks

Deloitte CFO Confidence Index

The mood among Swiss CFOs continues to be upbeat. The Deloitte CFO Confidence Index is up a further two percentage points this quarter, to +39. This continues the sustained improvement since the end of 2011, when the Index stood at a low of -36.

However, CFOs are more optimistic about the outlook for the corporate environment than about their own company’s growth prospects (+48 as against +32). This general trend is also borne out in their responses to individual questions. CFOs see a higher level of risk to their own company than to the Swiss economy as a whole this quarter. As a result, many companies are still opting for defensive corporate strategies.

39 (+2)

POSITIVE

NEGATIVE

0

-100

100

DELOITTE CFO CONFIDENCE INDEX

48

POSITIVE

NEGATIVE

0

-100

100

(+1)

POSITIVE

NEGATIVE

0

-100

100

32(+1)

CORPORATEENVIRONMENT

CORPORATE GROWTH OUTLOOK

TRENDS IN THE DELOITTE CFO CONFIDENCE INDEX

The Deloitte CFO Confidence Index The Deloitte CFO Confidence Index aggregates findings of the regular CFO Survey. It comprises two sub-indices: the Corporate Environment sub-index (weighted at 40%) and the Corporate Growth sub-index (weighted at 60%).

The Corporate Environment sub-index reflects CFOs’ views of the economic situation as a whole and includes their views on prospects for the economy, the financing environment (cost and availability of credit), currency risk and foreign demand. The Corporate Growth sub-index reflects corporate views on growth and includes CFOs’ views on the prospects for business, revenue growth, investment, new hirings, risk appetite and M&A activities. All values within the sub-indices have equal weighting.

-100

-80

-60

-40

-20

0

20

40

60

80

100

2014Q2

2013Q4

2013Q2

2012Q4

2012Q2

2011Q4

2011Q2

2010Q4

2010Q2

2009Q4

NEG

ATIV

EPO

SITI

VE

Figure in brackets represents change from Q1 2014.




Key findings of the CFO Survey

Economic outlook unchanged CFOs continue to be optimistic about Switzerland’s economic outlook this quarter, with just 6% believing that the country will face a recession over the next two years.

of Swiss CFOs are optimistic about the economic outlook overthe next 12 months.

Higher revenue and margin expectationsCFOs are also optimistic about the prospects for higher revenues and growth in operating margins. 81% expect revenues to rise over the next 12 months, while 41% expect margins to increase.

Compared with preceding quarters, revenue expectations remain high and expectations for margins continue to improve: in Q1 2014, 35% of CFOs expected margins to increase, while two years ago the figure was just 6%.

see operating marginsincreasing in the next12 months.

Greater risk appetite There has been a tangible increase in Swiss CFOs’ risk appetite since the beginning of the year. At the end of 2011, only 10% of CFOs were willing to take more risk on to their balance sheet, compared with 43% this quarter.

believe it is the righttime to increase risk.

Concern about political riskExternal risks are the major source of concern for Swiss CFOs. By far the most widely perceived risks are greater business regulation in Switzerland (59%) and geopolitical risks (54%). Factors previously perceived as major risks, such as the strength of the Swiss Franc and stress in the financial system, have now receded (35% and 29% respectively). However, detailed analysis shows that CFOs’ perceptions of risk differ markedly according to the size of their company and the extent to which their business is internationally focused (see pages 7 and 8).

see geopolitical risksto their business.




Sustained optimism about the economy

Swiss CFOs remain optimistic about the economic outlook this quarter. Currently, 75% take a positive view of Switzerland’s economic outlook over the next 12 months, with just 3% having a negative view (a net balance of 73%). Fears of a recession over the next two years also remain muted, with just 6% of CFOs believing that Switzerland will face a recession by 2016.

This is broadly in line with the view taken by economists. Forecasts for economic growth have recently been revised downwards – for Switzerland, from 2.1% to 2.0% for 2014 and from 2.3% to 2.2% for 2015 (EIU) – but the outlook for growth remains positive, particularly in the US and the UK. Experts forecast gradual recovery in the eurozone, Switzerland’s main trading partner, and a slight slowdown in economic growth in China (often referred to as a “soft landing”). Export growth is, therefore, likely to remain a major driver of economic growth in Switzerland.

Deloitte also conducts the CFO Survey in other countries. Responses to the question relating to companies’ financial prospects indicate a substantial improvement in CFOs’ perceptions of financial prospects in most of Switzerland’s major foreign markets. Responses from CFOs in Germany, the UK and North America produce net balances of 36%, 23% and 26% respectively.

CHART 1. EXPECTATIONS FOR ECONOMIC GROWTH

CHART 3. INTERNATIONAL COMPARISON OF COMPANIES’ FINANCIAL PROSPECTS

CHART 2. INTERNATIONAL GDP GROWTH AND FORECAST

-100%

-80%

-60%

-40%

-20%

0%

20%

40%

60%

80%

100%

Q22014

Q42013

Q22013

Q42012

Q22012

Q42011

Q22011

Q42010

Q22010

Q42009

NEG

ATIV

EPO

SITI

VE

73%

75%

23%

3%

Austria Germany Switzerland United Kingdom North America

-60%

-40%

-20%

0%

20%

40%

60%

Q22014

Q42013

Q22013

Q42012

Q22012

Q42011

Q22011

Q42010

NEG

ATIV

EPO

SITI

VE

Japan

Eurozone

Switzerland

UK

US

World

China

2013

Source: Economist Intelligence Unit (EIU), International Monetary Fund; * forecast

2014* 2015*

7.7%7.3%

7.0%3.0%

3.6%3.9%

1.9%2.4%

3.0%1.8%

3.0%2.6%

2.0%2.0%

2.2%

1.1%1.5%1.5%

-0.5%

1.4%1.3%

Net balance of CFOs rating Switzerland’s economic prospects over the next 12 months as positive/negative

Net balance showing how CFOs view their company’s financial prospects now compared with three months ago (most recent available data)

Annual growth in GDP in Switzerland and other major economies




Corporate outlook unchanged

Most Swiss CFOs are also optimistic about their company’s financial prospects, but this optimism is more muted than in other countries. It is also down on Q1: the proportion of CFOs reporting positive views is four percentage points lower this quarter.

Nevertheless, detailed analysis of business outlook responses shows that perceptions remain stable and positive. 81% of CFOs expect revenues to increase over the next 12 months while 9% expect them to decrease, a net balance of 72%. Expectations for operating margins are more mixed, with 41% of CFOs expecting them to increase and 30% expecting them to decrease. However, this net balance of 10% indicates that CFOs remain positive overall in their expectations for operating margins.

The outlook for business expenditure has improved this quarter. The number of CFOs expecting capital expenditure to increase over the next 12 months is up by seven percentage points to a net balance of 31%. There is also a seven percentage point rise in those expecting an increase in employee numbers, while expectations for higher discretionary spending rose even more markedly, by 15 percentage points.

CHART 4. COMPANIES’ FINANCIAL PROSPECTS

CHART 5. BUSINESS OUTLOOK: REVENUES AND MARGINS

-60%

-40%

-20%

0%

20%

40%

60%

Q22014

Q42013

Q22013

Q42012

Q22012

Q42011

Q22011

Q42010

Q22010

Q42009

LESS

OPT

IMIS

TIC

MO

RE O

PTIM

ISTI

C

21%

33%

56%12%

-80%

-60%

-40%

-20%

0%

20%

40%

60%

80%

10%

72%

Revenues Operating margins

Q42010

Q22011

Q42011

Q22012

Q42012

Q22013

Q42013

Q22014

DEC

REA

SEIN

CREA

SE

Net balance showing how CFOs view their company’s financial prospects now compared with three months ago

Net balance of CFOs who expect revenues and operating margins to increase/decrease over the next 12 months

CHART 6. BUSINESS OUTLOOK: EXPENDITURE

Number of employees

-0.80

-0.64

-0.48

-0.32

-0.16

0.00

0.16

0.32

0.48

0.64

0.80

Q22014

Q42013

Q22013

Q42012

Q22012

Q42011

Q22011

Q42010

31%

80%

-80%

-60%

-40%

-20%

20%

40%

60%

0%

13%

-2%

DEC

REA

SEIN

CREA

SE

Discretionary spendingCapital expenditure

Net balance of CFOs who expect discretionary spending, capital expenditure and number of employees to increase/decrease over the next 12 months




Concern about increasing political risks…

The sustained risk appetite of Swiss companies is a further positive indicator. 43% of Swiss CFOs believe that this is a good time to be taking greater risk on to their balance sheet.

Breaking down the participating companies by size and business focus reveals some interesting differences in risk appetite. Those with the greatest risk appetite are large companies with a predominantly international focus, and which are best placed to benefit from the forecast upturn in global economic growth. (For category definitions, see “A note on methodology” on page 2 of this Survey)

Nevertheless, CFOs still perceive substantial risks to their companies. Despite greater concern about domestic demand, the overall perception of economic risks remains modest. However, political risk is now a greater cause for concern. The most frequently cited risks include greater business regulations in Switzerland and geopolitical risks. It is now more likely that labour market regulations will be increased in Switzerland, while a number of regions around the world face heightened geopolitical tension, not least Ukraine.

-100%-80%-60%-40%-20%

0%20%40%60%

Q22014

Q42013

Q22013

Q41012

Q22012

Q42011

Q22011

Q42010

Q22010

Q42009

NO

YES

43%

57%

SMALL COMPANIES

DO

MES

TICA

LLY

FOCU

SED

COM

PAN

IES

INTE

RNAT

ION

ALL

Y FO

CUSE

DCO

MPA

NIE

S

LARGE COMPANIES

Yes27%

No73%

No67%

No18%

No55%

Yes33%

Yes82%

Yes45%

Q4 2013

*Question first asked in Q1 2014 ** Question first asked in Q2 2014

Q1 2014 Q2 2014

65%59%

54%31%

30%38%

36%32%

35%47%

34%32%

26%40%

31%32%

30%29%

Stress in the financial system

Rising barriers to trade /protectionism

Weaker foreign demand

Strength of the Swiss Franc

Weaker domestic demand

Geopolitical risks**

Increasing business regulationsin Switzerland*

CHART 7. RISK APPETITE

CHART 8. RISK APPETITE BY COMPANY SIZE AND FOCUS

CHART 9. EXTERNAL RISKS OVER TIME

Is this a good time to be taking greater risk on to your balance sheet?

Is this a good time to be taking greater risk on to your balance sheet? (For category definitions, see “A note on methodology” on page 2)

Which of the following factors are likely to pose a substantial risk to your company over the next 12 months? (Multiple responses possible)




…and about rising costs

Unsurprisingly, geopolitical risks are a particular concern for companies whose operations are largely focused abroad: 72% of CFOs of such companies cite this factor. However, 61% of these CFOs also express concerns about weaker foreign demand. By contrast, the strength of the Swiss Franc is not perceived as a significant risk either by domestically focused companies or by internationally focused ones.

Equally unsurprisingly, a majority (70%) of domestically focused companies perceive increasing business regulations in Switzerland as the greatest risk. Weaker domestic demand is also frequently cited as a risk factor. However, this seems to be the result of companies’ dependence on domestic demand rather than of specific fears of a downturn in the economy: just 7% of domestically focused companies believe that Switzerland will face a recession over the next two years.

Overall, fears of internal risks are receding: only rising input and labour costs are causing CFOs concern this quarter. It is, therefore, not surprising that reducing costs continues to be one of the most important strategies adopted by companies (see Appendix 1).

There is a much less marked difference between domestically and internationally focused companies in terms of internal risks: both groups view rising input and labour costs as the most serious internal risk factors they face.

CHART 10. EXTERNAL RISKS BY BUSINESS FOCUS

CHART 12. INTERNAL RISKS BY BUSINESS FOCUS



Domestically focused companies

*Question first asked in Q1 2014 ** Question first asked in Q2 2014

Internationally focused companies

70%43%

50%15%

33%72%

29%33%

26%40%

13%48%

11%61%

Weaker foreign demand

Rising barriers to trade /protectionism

Strength of the Swiss Franc

Stress in the financial system

Geopolitical risks**

Weaker domestic demand

Increasing business regulationsin Switzerland*

CHART 11. INTERNAL RISKS OVER TIME


Q4 2013 Q1 2014 Q2 2014

48%40%

44%42%42%42%

31%35%35%

17%11%

17%12%13%

11%Shortage of capital

Cost of capital

Deterioration of cash flow

Rising labour costs

Rising input costs

48%40%

39%48%

38%31%

13%13%

6%

22%

Shortage of capital

Cost of capital

Deterioration of cash flow

Rising inut costs

Rising wage costs

Domestically focused companies Internationally focused companies




A positive financing environment

Record low interest rates also make for very positive ratings of the financing environment this quarter. Around three-quarters of CFOs rate bank borrowing as attractive, with only 9% rating it as unattractive – a net balance of 66%. Bank borrowing remains companies’ preferred form of financing. However, corporate debt continues to be an attractive source of financing, although the higher net balance registered in Q1 has not been sustained in Q2. Small and large companies take differing views of the attractiveness of different forms of financing.

Large companies are more likely than small companies to rank all forms of financing as attractive. Large companies tend to have higher credit ratings and are, therefore, at less risk of default. Most also have greater scope for negotiation and a wider range of alternative forms of financing. The greatest difference between large and small companies is their view of corporate debt: large companies are over twice as likely as small companies to rank it as an attractive form of financing. Corporate debt is also a major alternative to traditional bank borrowing for large companies.

For the first time this quarter, CFOs were also asked to rank internal financing/cash reserves as a form of financing. The net balance of CFOs ranking this as an attractive form of financing was 49% for small companies and 54% for large companies, demonstrating that CFOs rank this form of financing as very attractive.

The Survey rates credit financing for companies by asking about the perceived cost and availability of credit. More CFOs rank availability as good this quarter – a net balance of 53% – while just 8% of CFOs report that credit is hard to get.

Unsurprisingly, with interest rates low, CFOs continue to rate the cost of credit as low and rank credit as cheap (a net balance of 55%).

CHART 13. ATTRACTIVENESS OF THE FINANCING ENVIRONMENT

How do you rank the following forms of financing as possible sources of financing for Swiss companies? (net balance)

-40%

-20%

0%

20%

40%

60%

80%

Bank borrowing Equity issuanceDebt raising

66%

45%

29%

Q42009

Q22010

Q42010

Q22011

Q42011

Q22012

Q42012

Q22013

Q42013

Q22014

UN

ATTR

ACTI

VEAT

TRAC

TIVE

CHART 14. ATTRACTIVENESS OF DIFFERING FORMS OF FINANCING BY COMPANY SIZE

How do you rank the following forms of financing as possible sources of financing for Swiss companies? (net balance)

CHART 15. COST AND AVAILABILITY OF CREDIT FINANCINGNet balance of CFOs who rate credit as costly/cheap and hard to get/available

Credit cost Credit availability

55%

53%

Q42009

Q22010

Q42010

Q22011

Q42011

Q22012

Q42012

Q22013

Q42013

Q22014CR

EDIT

IS C

OST

LY/

HA

RD T

O G

ETCR

EDIT

IS C

HEA

P/AV

AIL

ABL

E

Corporate debtEquityInternal financingBank borrowing

56%

82%

49%54%

32% 34%

68%

31%

Small companies Large companies

ATTR

ACTI

VE




Special questions on debt management

This quarter, the Survey asked CFOs about their company’s average payment term and what checking and safeguarding instruments they use to avoid bad debts. The results indicate that companies operating predominantly in Switzerland have to wait a shorter time for invoices to be paid than those operating predominantly abroad. The average Days Sales Outstanding (DSO) figure is around 14 days higher for internationally focused companies. Payment terms are longer in many foreign markets and payment practices are often less rigorous than in Switzerland, which naturally has an impact on internationally focused companies with clients abroad. Average DSO are virtually unchanged to 2013.

Therefore, it is unsurprising that internationally focused companies are, on average, more likely than domestically focused companies to opt for more regular manual checks to ensure that their clients are adhering to their credit limits. More or less equal proportions of domestically focused and internationally focused companies have introduced automatic checking systems.

Internationally focused companies are particularly likely to opt for letters of credit to avoid or safeguard against bad debts. Credit insurance and, of course, export risk insurance are also frequently cited by internationally focused companies. Domestically and internationally focused companies are almost equally likely to use third party debt collection agencies.

CHART 16. COMPARATIVE DSO FOR PREDOMINANTLY DOMESTICALLY FOCUSED AND PREDOMINANTLY INTERNATIONALLY FOCUSED COMPANIES

CHART 17. MANUAL OR AUTOMATIC CHECKS?

CHART 18. INSTRUMENTS

What is your current average DSO (Days Sales Outstanding) figure?

How do you check that your debtors’ exposure to debt does not exceed their agreed credit limits?

Which instruments are you using to avoid or safeguard against bad debts?


36 50

No checkManual check,annual

Manual check,quarterly

Manual check,monthly

Automatic systemcheck againstoverflowing

44% 46%

11%

31%

15%18%

9%

18%

6%2%


SERV (Swiss ExportRisk Insurance)

Letter of creditCredit insurance /accounts receivable

insurance

Third party debtcollection agencies

38%32%

13%

40%

59%

8%3%

15%





Appendix 1: Additional charts

EXCHANGE RATE EXPECTATIONS STABLE

DEFENSIVE CORPORATE STRATEGIES

LITTLE EXPECTATION OF A RECESSION

INFLATION EXPECTATIONS SLIGHTLY LOWER

EXPANSIONARY CORPORATE STRATEGIES

M&A ACTIVITIES

What exchange rate do you expect for the Swiss Franc against the euro in the next 12 months time?

To what extent will your company prioritise the following defensive corporate strategies over the next 12 months? Please rank your response on a scale from 1 to 7, with 1 representing a very low priority and 7 a very high priority.

Do you expect Switzerland to face a recession over the next two years?

What inflation rate do you expect in two years’ time, as measured against the Swiss Consumer Price Index?

To what extent will your company prioritise the following expansionary corporate strategies over the next 12 months? Please rank your response on a scale from 1 to 7, with 1 representing a very low priority and 7 a very high priority.

What change do you expect over the next 12 months in M&A activities in the markets in which your company operates?

1.181.201.221.241.261.28

Q22014

Q12014

Q42013

Q32013

Q22013

Q12013

Q42012

Q32012

Q22012

Q12012

Q42011

Q32011

1.23

CHF

Exchange rate expectations (EUR/CHF) Exchange rate floor

Disposing of assets

Reducing currencyexposure

Reducing leverage

Increasing cash flow

Reducing costs 5.1

4.8

3.1

3.2

2.1

45%

65%

37% 36% 33% 27%17% 15%

5% 4% 7% 6%

55%

35%

63% 64% 67% 73%83% 85%

95% 96% 93% 94%

Q42011

Q32011

Q22012

Q12012

Q42012

Q32012

Q22013

Q12013

Q42013

Q32013

Q22014

Q12014

Q22014

Q12014

Q42013

Q32013

Q22013

Q12013

Q42012

Q32012

Q22012

Q12002

Q42011

Q32011

Q22011

Q12011

Q42010

Q32010

1.6% 1.7%

2.0%1.9%

1.5% 1.6% 1.5%1.3% 1.2% 1.3%

1.4%1.2% 1.3% 1.2% 1.3% 1.2%

Expanding by acquisitionin Switzerland

Expanding by acquisition abroad

Increasing production capacityabroad

Increasing production capacityin Switzerland

Research and development

Increasing capital expenditure

Expanding into new markets

Introducing new products / services

Organic growth 5.4

5.0

3.9

3.7

3.3

2.9

2.7

2.7

2.4

55%61%

72%

42%37%

27%

3% 2% 1%

DecreaseNo changeIncrease

Q4 2013 Q2 2014Q1 2014




Appendix 2: Data archive

To make the results easier to interpret, this table contains a full breakdown of responses to some of the questions covered by the Survey. Because of rounding, percentages may not add up to 100. You can find all the survey results since Q3 2009 on our website at: www.deloitte.com/ch/cfosurvey

Q4 2010

Q1 2011

Q2 2011

Q3 2011

Q4 2011

Q1 2012

Q2 2012

Q3 2012

Q4 2012

Q1 2013

Q2 2013

Q3 2013

Q4 2013

Q1 2014

Q2 2014

How do you judge the economic outlook for Switzerland over the next 12 months?

Positive 76% 81% 58% 10% 4% 20% 33% 26% 28% 53% 56% 63% 80% 76% 75%

Neither positive nor negative 22% 16% 27% 24% 13% 45% 39% 44% 41% 35% 39% 32% 18% 22% 23%

Negative 2% 2% 15% 66% 83% 36% 28% 30% 32% 11% 5% 4% 2% 3% 3%

Net balance 75% 79% 42% -56% -79% -16% 5% -4% -4% 42% 51% 59% 79% 73% 73%

Compared with 3 months ago how do you feel about the financial prospects for your company?

More optimistic 33% 42% 18% 13% 10% 27% 20% 26% 35% 32% 36% 37% 38% 37% 33%

No change 58% 50% 55% 35% 38% 52% 53% 46% 42% 52% 45% 50% 55% 55% 56%

Less optimistic 9% 8% 27% 52% 52% 21% 27% 28% 23% 16% 19% 13% 7% 8% 12%

Net balance 24% 34% -8% -39% -42% 7% -7% -2% 11% 17% 16% 24% 30% 29% 21%

In your view how are revenues of Swiss corporates likely to change over the next 12 months?

Increase 82% 89% 74% 22% 14% 38% 39% 40% 34% 57% 75% 73% 74% 80% 81%

No change 16% 6% 13% 11% 16% 29% 27% 27% 38% 31% 15% 15% 18% 13% 10%

Decrease 2% 5% 13% 67% 69% 33% 34% 34% 28% 11% 10% 13% 8% 7% 9%

Net balance 80% 84% 61% -45% -55% 5% 4% 6% 6% 46% 65% 60% 66% 72% 72%

In your view how are operating margins of Swiss corporates likely to change over the next 12 months?

Increase 37% 36% 24% 3% 5% 7% 6% 13% 26% 23% 30% 32% 35% 35% 41%

No change 33% 31% 19% 14% 8% 24% 31% 27% 24% 46% 35% 38% 42% 41% 29%

Decrease 29% 33% 57% 83% 87% 70% 63% 60% 50% 31% 35% 30% 23% 24% 30%

Net balance 8% 2% -33% -80% -81% -63% -56% -47% -24% -8% -5% 2% 12% 11% 10%

In your view how is capital expenditure of Swiss corporates likely to change over the next 12 months?

Increase 61% 69% 45% 13% 10% 18% 14% 29% 26% 27% 31% 48% 44% 39% 43%

No change 35% 26% 39% 30% 15% 31% 37% 29% 32% 45% 42% 40% 41% 47% 46%

Decrease 4% 5% 16% 57% 75% 51% 49% 42% 42% 27% 27% 12% 15% 14% 11%

Net balance 57% 64% 29% -44% -65% -33% -35% -13% -16% 0% 4% 37% 30% 25% 31%

In your view how is the number of employees of Swiss corporates likely to change over the next 12 months?

Increase 60% 69% 51% 9% 8% 10% 12% 15% 15% 16% 22% 22% 31% 29% 32%

No change 34% 26% 35% 22% 14% 50% 42% 33% 31% 54% 55% 61% 44% 50% 50%

Decrease 6% 5% 14% 69% 78% 40% 46% 52% 54% 31% 23% 17% 25% 21% 18%

Net balance 54% 64% 36% -60% -70% -31% -34% -38% -40% -15% -2% 5% 7% 7% 13%

In your view how is discretionary spending of Swiss corporates likely to change over the next 12 months?

Increase 24% 47% 18% 6% 5% 10% 2% 9% 10% 8% 7% 16% 17% 19% 24%

No change 57% 41% 57% 24% 22% 25% 33% 28% 27% 49% 52% 52% 50% 46% 50%

Decrease 20% 12% 25% 70% 73% 66% 65% 63% 63% 43% 41% 31% 32% 35% 26%

Net balance 4% 35% -7% -65% -67% -56% -63% -54% -52% -35% -34% -15% -15% -17% -2%

How would you rate the overall cost of new credit for corporates?

Costly 13% 13% 9% 11% 9% 15% 12% 9% 5% 5% 6% 10% 12% 6% 8%

Neutral 26% 31% 28% 31% 27% 27% 26% 21% 31% 28% 25% 31% 26% 31% 28%

Cheap 60% 56% 63% 59% 65% 58% 62% 70% 64% 67% 69% 59% 62% 62% 63%

Net balance 47% 43% 54% 48% 56% 42% 50% 62% 59% 62% 64% 50% 50% 56% 55%

How would you rate the overall availability of new credit for corporates?

Available 57% 61% 62% 43% 37% 38% 38% 42% 49% 54% 54% 61% 56% 53% 61%

Neutral 28% 24% 28% 39% 41% 35% 39% 41% 32% 34% 36% 29% 33% 35% 31%

Hard to get 15% 15% 10% 18% 21% 27% 23% 16% 19% 11% 9% 10% 11% 12% 8%

Net balance 42% 46% 51% 25% 16% 11% 16% 26% 31% 43% 45% 51% 44% 41% 53%




Contacts and authors

Acknowledgement We would like to thank all participating CFOs for their support in completing the survey.

The Deloitte CFO Survey is supported by the CFO Forum Schweiz, the independent association of Chief Financial Officers in Switzerland.

Participating in our Survey and accessing previous surveysIf you would like to take part in our Survey or would like to receive further copies of this report, please contact us at [email protected]

For copies of previous CFO Surveys, visit www.deloitte.com/ch/cfosurvey

James BairdManaging Partner Audit+41 58 279 63 [email protected]

Dr. Michael GramppChief Economist+41 58 279 68 [email protected]

Rolf SchönauerHead of AuditFinancial ServicesZurich/Basel+41 58 279 63 [email protected]

Jan-Dominik RemmenPartner Corporate Finance+41 58 279 64 [email protected]

Markus KochPartner Consulting+41 58 279 61 [email protected]

Contacts Authors

James Horiguchi Head of Audit Corporates Zurich/Basel+41 58 279 62 [email protected]

Dennis BrandesResearch Manager+41 58 279 65 [email protected]




Notes




Notes

Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited (“DTTL”), 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/ch/about for a detailed description of the legal structure of DTTL and its member firms.

Deloitte AG is a subsidiary of Deloitte LLP, the United Kingdom member firm of DTTL.

Deloitte AG is recognised as auditor by the Federal Audit Oversight Authority and the Swiss Financial Market Supervisory Authority.

This publication has been written in general terms and therefore cannot be relied on to cover specific situations; application of the principles set out will depend upon the particular circumstances involved and we recommend that you obtain professional advice before acting or refraining from acting on any of the contents of this publication. Deloitte AG would be pleased to advise readers on how to apply the principles set out in this publication to their specific circumstances. Deloitte AG accepts no duty of care or liability for any loss occasioned to any person acting or refraining from action as a result of any material in this publication.

© 2014 Deloitte AG. All rights reserved.

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