Italian medium-sized industrial companies

Transcription

1 Milan, 15 February 2008 Fulvio Coltorti, Mediobanca Research Department

2 3,984 MSEs in by size of value added 50% of total along Turin-Venice axis 2

3 What they do Value added universe 4,711 1,675 7,770 6, , ,821 2,433 1, , Mechanical engineering Personal and household goods Food and drink Chemicals Iron and steel Paper and publishing Others In 1996 Change,

4 Growth in Italy Net change 1998-: 609 more companies From small companies To large companies Turnover ratio 4

5 Medium-sized companies: turnover and value added Index 1996=100 closed set - MB estimates for Medium-sized companies - turnover Medium-sized companies - value added 5

6 Medium-sized companies: exports Index 1996=100 closed set - MB estimates for 2006 and

7 Profit margins and employee headcount MB estimates for 2006 index based on closed sets Employee index EBITDA index 7

8 Medium-sized companies and districts Focus 1

9 How to identify medium-sized companies in districts p Districts: from ISTAT statistics, to regional laws to on-theground research p Companies within districts: provinces, ATECO codes 9

10 Inside and outside districts Companies in districts and LPSs = 40% of total bn universe data Exp. districts=42.7% Exp. LPSs=39.7% Exp. other areas=28.8% Sales outside Italy Sales in Italy 10

11 MSEs in districts/lpss: winners & losers Turnover in bn universe 27 DIs/LPSs: > 50% 24 DIs/LPSs: 25-50% 33 DIs/LPSs: 0-25% 31 DIs/LPSs: declining Sales in Italy Sales outside Italy 11

12 MSEs in districts/lpss: winners Growth universe (DI/LPSs with more than 15 companies) Sales in m Comp. Meccanica PN TV Sebino Gomma plastica Fabriano Mecc-eldo Parma Langhirano Valle dell'arno VA met Est Milanese elettro Mecc. Subforn. PD Lecchese Metalli Sales in Italy Sales outside Italy % increase 12

13 MSEs in 55 ISTAT districts: changes in headcount Growing ISTAT districts Chg. empl. ISTAT Bergamasca Valcav. Castelgoffredo Mobile pianura veneta Capannori Gallaratese Carpi Civitanova / Montegranaro Chg. empl. headcount Mobile della Brianza Fermo / Montegiorgio Como Biella Comp & Mecc Lecchese Metalli Valli Bresciane Area murgiana ISTAT districts declining 13

14 Medium-sized companies and competitiveness Focus 2

15 Some don t want them... p p p p p Too small: must grow! Small size = insufficient resources for competing on non-italian markets Unable to compete (on what grounds?) Low growth in productivity = high labour costs per unit produced Weak financial structure p Unattractive, family-based capitalism holding companies preferable 15

16 ... while others can t get enough of them Attali report, January

17 Medium-sized companies: to grow, or not to grow? (staff. no. avg. per company/group in - universe data) Europe large EMNs 123,800 We are here Italy 48,600 53,100 61,300 71,600 79,900 26, ,014 SMEs Mediumsized/largedomestic groups - Non- Larger branches individual Larger groups - total SVE UK CH Benelux FR DE 17

18 Medium-sized companies: average size No. of staff per company Universe Median

19 Medium-sized and large firms: from 1996 to 2006 index 1996=100 closed sets - MB data and MB-UC MB estimates for MSEs - turnover Larger groups - consolidated global turnover MSEs - value added Larger groups - value added in Italy 19

20 Hard to break into foreign markets? No. of staff makes no difference MSE universe : share of exports and no. of staff numero dipendenti quota % di fatturato estero 20

21 Hard to break into foreign markets? Nor does finance MSE universe : share of exports and capital invested 400, , , ,000 capitale investito in 000 euro 200, , ,000 50, quota % di fatturato estero 21

22 Medium-sized and large firms: non-domestic sales index 1996=100 Mediobanca and Mediobanca-Unioncamere data MSEs - exports from Italy Larger groups - exports from Italy Larger groups - total non-domestic sales $/ exchange rate 22

23 Percentage accounted for by MSEs Base: ISTAT survey of companies profit and loss results Year No. of staff Value added Fixed investments Exports 23

24 Competitiveness: data per employee 000 in MSE universe - R&S data for manufacturing EMNs CL/VA = 74.5% CL/VA = 75.1% CL/VA = 68.7% Total SMEs Italian multinationals European multinationals Per capita cost of labour Per capita net value added 24

25 Productivity of labour 20 classes of capital invested - Capital intensity increasing, returns down Labour productivity (net per capita VA in '000) Per capita fixed assets ROI % Log. (ROI %) Lineare (Per capita fixed assets) 25

26 performances compared Consolidated balance-sheet data MSEs Mediumsized/large Largest Italian groups Large groups foreign branches NOM/VA FP/VA VA/Capital inv. ROI FD as % of cap. inv. Cost of borrowing Extraordinary items Tax rate ROE

27 Medium-sized companies: are they profitable? Difference between ROE and risk-free rate - universe Avg. difference = 3.6 points ROE % M/l gov't bonds Difference ROE-gov't bonds 27

28 Weak financial structure? % of tangible invested capital universe data 37,3 61,2 62,7 38,8-33,4-23,7-21,5-38,5-45,1-37,8 MSEs European multinationals Short-term debt M/l term debt Net capital Current assets Fixed assets 28

29 Micro-climate Percentage of companies in - R&S-Unioncamere scoring model All Italian SMEs Medium-sized companies Solid Intermediate Problematic 29

30 Mediobanca Research Department Piazzetta M. Bossi 1, Milan, Italy Website: