10 th Annual Global CEO Survey Willem Bröcker Porto, 18 de Abril 2007

Transcription

1 10 th Annual Global CEO Survey Willem Bröcker Porto, 18 de Abril 2007 *connectedthinking PwC

2 10 th Annual Global CEO Survey Position for graphic or image

3 Business Confidence CEOs are generally confident in the revenue growth of their company over the short and longer term Very confident Somewhat confident Not very confident 5 6 Next 3 years Next 12 months Not confident at all 1 1 Don't Know/Refused Base: All respondents (1,084) Slide 3

4 Business Confidence Levels of confidence in revenue growth have grown significantly over the last 5 years 60 stating very confident Slide 4

5 Ten years inside the minds of CEOs : From boundless optimism to uncertainty Let the good times roll Ebusiness takes the world by storm Optimism peaks before the plunge Clouds on the horizon Geopolitics and scandal: an era of uncertainty One third of CEOs is extremely optimistic about growth prospects. CEOs not fully aware of the impact of globalisation and the internet. Optimism is still very high and rising. Disruption in the Asian markets and the turbulence in commodity prices in emerging markets hardly temper it. 91 of CEOs is optimistic about growth prospects in the next three years. CEOs entered the new millennium on the wave of a revolution in ebusiness. CEOs are still optimistic about their companies growth prospects over the next three years. 86 believed that the capital markets would prosper even though confidence was muted by the first signs of that the dot.com bubble was set to burst. Following 9/11, 43 of CEOs revised downward their financial forecasts. Workforce reductions, outsourcing of noncore business functions. CSR on top of CEOs agenda.

6 Ten years inside the minds of CEOs : Recovering to a record level of optimism The fragile recovery Optimism returns Battling with compliance Going global Balancing the global equation 72 of CEOs are at least somewhat confident about growth in the next 12 months. Rebuilding trust as a key priority. Concern about overregulation becomes as big as global terrorism. More than 80 of CEOs were confident about revenue growth for the next 3 years. CEOs start to focus on riskmanagement. CEOs are optimistic about growth, but optimism is tempered by caution. Trade imbalances, currency fluctuations, skyrocketing energy costs and increasing regulations. CEOs focus on Governance, Risk Management and compliance. Support for globalisation: getting stronger. Motivation: no longer only about costcutting. CEOs move to BRIC countries in order to find new customers. Overregulation is the number one barrier. 58 of CEOs say that globalisation will have positive Impact. 93 of CEOs are optimistic about growth in the next 3 years. Overregulation and availability of key skills were cited as the 2 biggest potential threats concerning CEOs.

7 Business Confidence Overregulation and availability of key skills were cited as the 2 biggest potential threats concerning CEOs Not concerned at all Not very concerned Somewhat concerned Extremely concerned Refused/Don t Know Overregulation Availability of key skills Low cost competition Energy prices Commodity prices Downturn in major economies Energy security Technological disruptions Security of the supply chain Base: All respondents (1,084) Slide 7

8 Business Confidence Threats that are outside the remit of the CEO, such as pandemic, global warming and climate change were least concern to CEOs Not concerned at all Not very concerned Somewhat concerned Extremely concerned Refused/Don t Know Terrorism Inadequacy of basic infrastructure Intellectual property rights The spread of protectionist tendencies of national governments Scarcity of natural resources (for example oil, water) Political instability Global warming and climate change A pandemic such as bird flu Base: All respondents (1,084) Slide 8

9 Business Confidence Better penetration of existing markets for existing products was cited by almost onequarter of CEOs as being the major opportunity to grow business in the next 12 months Better penetration of existing markets for existing products 23 Access to new markets through geographic expansion 21 Acquiring new business via mergers and acquisitions New product development Technological innovation 9 Access to and retention of key talent 7 Improved customer service 6 Improved sourcing/supply chain management 3 Partnering with competitors Other Base: All respondents (1,084) Slide 9

10 Balancing the Global Equation Almost twothirds of CEOs stated that gaining access to new markets and customers was/is the main purpose of the crossborder merger and acquisition Gain access to new markets/customers 65 Obtain new product lines 10 Achieve vertical integration 8 Eliminate competitor 4 Other 11 Don't Know/Refused Base: All respondents who have completed or plan to complete a crossborder merger and acquisition (502) Slide 10

11 Balancing the Global Equation Western Europe is the most popular region for M&A Western Europe 43 Asia 31 North America 25 Eastern Europe 23 Latin America 13 Africa Middle East 5 5 Australasia 4 All of the above 3 Other Base: All respondents who have completed or plan to complete a crossborder merger and acquisition (502) Slide 11

12 Balancing the Global Equation Almost 8 in 10 CEOs stated that this growth would be financed by internally generated cash flow Internally generated cash flow 79 The debt market 28 Equity markets 18 Private equity/venture capital 10 Divestiture of existing assets 10 Other Base: All respondents (1,084) Slide 12

13 Balancing the Global Equation Almost threequarters of CEOs plan to source or locate their business in low cost countries over the next 3 years Less than More than Do not source/have business in lowcost countries 19 Don't Know/Refused 8 Base: All respondents (1,084) Slide 13

14 Balancing the Global Equation CEOs expect to find significant growth opportunities in many of the developing/emerging economies (beyond BRICs) CEE (excl Russia) Other Middle East and Africa Other Latin America Mexico Other Asia Pacific Indonesia Vietnam Korea Turkey Poland South Africa Other Western Europe Thailand India Argentina China Ukraine Romania North America Nonregional others None of the above Base: All respondents (1,084) Slide 14

15 Balancing the Global Equation Almost threequarters of CEOs agreed that globalisation is generally good for both developed and developing markets Disagree strongly Disagree Agree Agree strongly Globalisation is generally good for both developed and developing markets Neither/Nor 13 Don't Know/ Refused 1 Globalisation has adverse effects on society in the shortterm but benefits it in the long run Globalisation benefits developed markets more than developing markets Base: All respondents (1,084) Slide 15

16 10 th Annual Global CEO Survey 2007 LLP. All rights reserved. refers to LLP (a limited liability partnership in the United Kingdom) or, as the context requires, other member firms of International Limited, each of which is a separate and independent legal entity. *connectedthinking is a trademark of. PwC