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REGIONAL SURVEY 2010: CURRENT ECONOMIC TRENDS


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BDO Regional Survey 2010: Current economic trends

CONTENTS FOREWORD RESEARCH METHODOLOGY SURVEY RESULTS ROMANIA Own company Revenues Profit Number of clients Access to funding Overall spending and costs Bad Debts Investments in personnel training Employee remuneration & benefits Personnel turnover Employee satisfaction Staff headcount National economic environment Unemployment GDP Foreign direct investments Inflation VAT Overall indicators compared to median value Own company National economic environment Time to return to pre-crisis levels

3 4 5 5 5 6 6 7 7 8 8 9 9 10 10 11 11 12 12 13 14 15

REGION Own Company Revenues Profit Number of clients Access to funding Overall spending & costs Bad debts Investments in personnel training & development Employee remuneration & benefits Personnel turnover Employee satisfaction Staff headcount National Economic Environment Unemployment GDP Foreign Direct Investments Inflation VAT Time to return to pre-crisis levels Regional sample characteristics Main field of activity Company size (no of employees) Company turnover (Euro)

16 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35


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BDO Regional Survey 2010: Current economic trends

FOREWORD Developments over the recent period have reinforced the importance of rapid and effective policy responses to economic crises. This survey should be seen in relation to the increased need for information, which becomes critical in the current highly uncertain environment. By focusing on regional economic trends, this report provides a quick and up-to-date overview of the actual conditions and expectations on key business and economic indicators in each participating country. This “Current Economic Trends� survey is not about predicting the future! Nonetheless, it aims to provide a close observation of the market, in order to enhance the understanding of the existing trends in our regional economic environment. Survey topics include the opinions of key decision makers from respondent companies on both their own businesses and on the current market conditions and trends in their national economies, for the coming period. Since this research is our first attempt at organising such a large scale survey in our region, there are no historical data for comparison; the survey is expected to be conducted annually. Our appreciation goes to all respondents who invested time in sharing with us their thoughts, making it possible for us to release this report.


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BDO Regional Survey 2010: Current economic trends

RESEARCH METHODOLOGY Background In order to have an updated view on the current trends in the economic and business environment, a survey regarding important related issues was launched amongst BDO domestic and foreign clients. The survey involved 8 countries and was run by each local BDO office from: Bulgaria, Croatia, Greece, Hungary, Romania, Serbia, Slovenia and Turkey. Research method The research was conducted by way of a B2B web-based questionnaire Survey (Computer Assisted Web Interview). The questionnaire had 17 questions, all with predetermined answers. The main topics of the survey referred to changes expected in the coming year, regarding economic growth, expenditures, local investments, access to funding, staff structure & size. All the figures from this report are rounded to the nearest value starting with the second decimal. There were no personal information required, however the respondents had to input data regarding the company size (in terms of employees and turnover) and the main field of activity. The questionnaire was accessible via Internet, in both English and the local language and was identical in all eight countries. The entire methodology ensures the harmonisation of data, and was designed so as to allow direct comparisons of business expectations across different countries and also with the entire region. Target population This report was based on responses received from the representatives of 450 companies. Senior financial managers, general managers or key decision makers were asked to share their thoughts on future business conditions. Fieldwork All the data were collected in October 2010. The survey will continue on an annual basis, in order to offer chronological comparisons.


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BDO Regional Survey 2010: Current economic trends

SURVEY RESULTS: CROATIA Looking at your own company business prospects for the next 12 months, would you anticipate an overall increase or decrease for the following topics? Will decrease a lot

Will decrease

Will increase

Will increase a lot

Will decrease a lot

Will decrease

Will increase

Will increase a lot

HR

REVENUES REG

HR

PROFIT REG


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BDO Regional Survey 2010: Current economic trends

Looking at your own company business prospects for the next 12 months, would you anticipate an overall increase or decrease for the following topics?

Will decrease a lot

Will decrease

Will increase

Will increase a lot

Will decrease a lot

Will decrease

Will increase

Will increase a lot

HR

NUMBER OF CLIENTS REG

HR

ACCESS TO FUNDING REG


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BDO Regional Survey 2010: Current economic trends

Looking at your own company business prospects for the next 12 months, would you anticipate an overall increase or decrease for the following topics?

Will decrease a lot

Will decrease

Will increase

Will increase a lot

Will decrease a lot

Will decrease

Will increase

Will increase a lot

HR

OVERALL SPENDINGS & COSTS REG

HR

BAD DEBTS REG


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BDO Regional Survey 2010: Current economic trends

Looking at your own company business prospects for the next 12 months, would you anticipate an overall increase or decrease for the following topics?

INVESTMENTS IN PERSONNEL TRAINING & DEVELOPMENT

Will decrease a lot

Will decrease

Will increase

Will increase a lot

Will decrease a lot

Will decrease

Will increase

Will increase a lot

HR

REG

HR

EMPLOYEE REMUNERATION & BENEFITS REG


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BDO Regional Survey 2010: Current economic trends

Looking at your own company business prospects for the next 12 months, would you anticipate an overall increase or decrease for the following topics?

Will decrease a lot

Will decrease

Will increase

Will increase a lot

Will decrease a lot

Will decrease

Will increase

Will increase a lot

HR

PERSONNEL TURNOVER REG

EMPLOYEE SATISFACTION


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BDO Regional Survey 2010: Current economic trends

Looking at your own company business prospects for the next 12 months, would you anticipate an overall increase or decrease for the following topics? Will decrease a lot

Will decrease

Will increase

Will increase a lot

STAFF HEADCOUNT

Looking at your national business environment prospects for the next 12 months, would you anticipate an overall increase or decrease for the following topics?

GR

UNEMPLOYMENT

REG


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BDO Regional Survey 2010: Current economic trends

Looking at your national business environment prospects for the next 12 months, would you anticipate an overall increase or decrease for the following topics?

HR

GDP REG

FOREIGN DIRECT INVESTMENTS

HR

REG


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BDO Regional Survey 2010: Current economic trends

Looking at your national business environment prospects for the next 12 months, would you anticipate an overall increase or decrease for the following topics?

INFLATION

VAT

HR

REG


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BDO Regional Survey 2010: Current economic trends

OVERALL INDICATORS COMPARED TO MEDIAN VALUE

OWN COMPANY

HR REG


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BDO Regional Survey 2010: Current economic trends

OVERALL INDICATORS COMPARED TO MEDIAN VALUE

NATIONAL ECONOMIC ENVIRONMENT

HR REG


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BDO Regional Survey 2010: Current economic trends

When do you expect your company’s revenue growth to return to pre-crisis levels (before 2008)?

HR REG


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BDO Regional Survey 2010: Current economic trends

SURVEY RESULTS: REGION Looking at your own company business prospects for the next 12 months, would you anticipate an overall increase or decrease for:

REVENUES

Will decrease a lot

Will decrease a lot

Will decrease

Will increase

Will decrease

Will remain the same

Will increase a lot

Will increase

Will increase a lot

*compared to regional average value (3.19)


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BDO Regional Survey 2010: Current economic trends

Looking at your own company business prospects for the next 12 months, would you anticipate an overall increase or decrease for:

PROFIT

Will decrease a lot

Will decrease a lot

Will decrease

Will increase

Will decrease

Will remain the same

Will increase a lot

Will increase

Will increase a lot

*compared to regional average value (2.99)


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BDO Regional Survey 2010: Current economic trends

Looking at your own company business prospects for the next 12 months, would you anticipate an overall increase or decrease for:

NUMBER OF CLIENTS

Will decrease a lot

Will decrease a lot

Will decrease

Will increase

Will decrease

Will remain the same

Will increase a lot

Will increase

Will increase a lot

*compared to regional average value (3.11)


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BDO Regional Survey 2010: Current economic trends

Looking at your own company business prospects for the next 12 months, would you anticipate an overall increase or decrease for:

ACCESS TO FUNDING

Will decrease a lot

Will decrease a lot

Will decrease

Will increase

Will decrease

Will remain the same

Will increase a lot

Will increase

Will increase a lot

*compared to regional average value (2.89)


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BDO Regional Survey 2010: Current economic trends

Looking at your own company business prospects for the next 12 months, would you anticipate an overall increase or decrease for:

OVERALL SPENDINGS & COSTS

Will decrease a lot

Will decrease a lot

Will decrease

Will increase

Will decrease

Will remain the same

Will increase a lot

Will increase

Will increase a lot

*compared to regional average value (3.09)


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BDO Regional Survey 2010: Current economic trends

Looking at your own company business prospects for the next 12 months, would you anticipate an overall increase or decrease for:

BAD DEBTS

Will decrease a lot

Will decrease a lot

Will decrease

Will increase

Will decrease

Will remain the same

Will increase a lot

Will increase

Will increase a lot

*compared to regional average value (3.13)


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BDO Regional Survey 2010: Current economic trends

Looking at your own company business prospects for the next 12 months, would you anticipate an overall increase or decrease for:

INVESTMENTS IN PERSONNEL TRAINING

Will decrease a lot

Will decrease a lot

Will decrease

Will increase

Will decrease

Will remain the same

Will increase a lot

Will increase

Will increase a lot

*compared to regional average value (2.92)


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BDO Regional Survey 2010: Current economic trends

Looking at your own company business prospects for the next 12 months, would you anticipate an overall increase or decrease for:

EMPLOYEE REMUNERATION & BENEFITS

Will decrease a lot

Will decrease a lot

Will decrease

Will increase

Will decrease

Will remain the same

Will increase a lot

Will increase

Will increase a lot

*compared to regional average value (3.01)


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BDO Regional Survey 2010: Current economic trends

Looking at your own company business prospects for the next 12 months, would you anticipate an overall increase or decrease for:

PERSONNEL TURNOVER

Will decrease a lot

Will decrease a lot

Will decrease

Will increase

Will decrease

Will remain the same

Will increase a lot

Will increase

Will increase a lot

*compared to regional average value (2.95)


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BDO Regional Survey 2010: Current economic trends

Looking at your own company business prospects for the next 12 months, would you anticipate an overall increase or decrease for:

EMPLOYEE SATISFACTION

Will decrease a lot

Will decrease a lot

Will decrease

Will increase

Will decrease

Will remain the same

Will increase a lot

Will increase

Will increase a lot

*compared to regional average value (2.84)


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BDO Regional Survey 2010: Current economic trends

Looking at your own company business prospects for the next 12 months, would you anticipate an overall increase or decrease for:

STAFF HEADCOUNT

Will decrease a lot

Will decrease a lot

Will decrease

Will increase

Will decrease

Will remain the same

Will increase a lot

Will increase

Will increase a lot

*compared to regional average value (2.91)


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BDO Regional Survey 2010: Current economic trends

Looking at your national business environment prospects for the next 12 months, would you anticipate an overall increase or decrease for:

UNEMPLOYMENT

Will decrease

Will decrease

Will increase

Will remain the same

Will increase

*compared to regional average value (2.36)


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BDO Regional Survey 2010: Current economic trends

Looking at your national business environment prospects for the next 12 months, would you anticipate an overall increase or decrease for:

GDP

Will decrease

Will remain the same

Will decrease

Will increase

Will increase

*compared to regional average value (1.85)


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BDO Regional Survey 2010: Current economic trends

Looking at your national business environment prospects for the next 12 months, would you anticipate an overall increase or decrease for:

FOREIGN DIRECT INVESTMENTS

Will decrease

Will decrease

Will remain the same

Will increase

Will increase

*compared to regional average value (1.83)


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BDO Regional Survey 2010: Current economic trends

Looking at your national business environment prospects for the next 12 months, would you anticipate an overall increase or decrease for:

INFLATION

Will decrease

Will decrease

Will increase

Will remain the same

Will increase

*compared to regional average value (2.37)


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BDO Regional Survey 2010: Current economic trends

Looking at your national business environment prospects for the next 12 months, would you anticipate an overall increase or decrease for:

VAT

Will decrease

Will decrease

Will increase

Will remain the same

Will increase

*compared to regional average value (2.09)


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BDO Regional Survey 2010: Current economic trends

When do you expect your company’s revenue growth to return to pre-crisis levels (before 2008)?


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BDO Regional Survey 2010: Current economic trends

REGIONAL SAMPLE CHARACTERISTICS INDUSTRY SECTORS


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BDO Regional Survey 2010: Current economic trends

REGIONAL SAMPLE CHARACTERISTICS COMPANY SIZE (NO. OF EMPLOYEES)


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BDO Regional Survey 2010: Current economic trends

COMPANY TURNOVER (EURO)


If you would like further information about this publication or our wide range of services, please contact your local BDO office:

BDO Bulgaria Ltd. +359 2421 0656

BDO Croatia d.o.o. +385 1239 5741

BDO Certified Registered Auditors A.E. +3021 0889 4300

BDO Magyarorszรกg +36 1235 3010

ROMANIA BDO AUDIT SRL +402 1319 9476

SERBIA BDO d.o.o. + 3811 1328 1288

SLOVENIA BDO Svetovanje Ltd./BDO Revizija d.o.o. + 386 1530 0936

TURKEY BDO DENET +9021 2275 9690

This publication has been carefully prepared, but it has been written in general terms and should be seen as broad guidance only. The publication cannot be relied upon to cover specific situations and you should not act, or refrain from acting, upon the information contained therein without obtaining specific professional advice. Please contact your BDO local office to discuss these matters in the context of your particular circumstances. BDO, its partners, employees and agents do not accept or assume any liability or duty of care for any loss arising from any action taken or not taken by anyone in reliance on the information in this publication or for any decision based on it. This report cannot be use for predicting turning points in economic cycles: there is no guarantee for the national/regional representativeness of collected data. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the written prior permission of the publisher. Each BDO local office is a member of BDO International Limited, a UK company limited by guarantee, and forms part of the international BDO network of independent member firms. BDO is the brand name of the BDO network and for each of the BDO Member Firms.


BDO Regionalno ispitivanje 2011