An overview on payments in Europe and worldwide: Denmark is the country with the higher percentage of companies that paid at the due date (83%), followed by German (79%), Taiwan (70%) and Mexico (52%). In Europe the worst is Portugal, with only 17% of virtuous companies. Check out our CRIBIS D&B COMMUNITY onhttp://www.cribis.com/Pages/FormCommunity.aspx

1. Payments Study
Turkey
September 24, 2013
Marco Preti, CEO CRIBIS D&B

2. © 2011
D&B's Global Economic Outlook
2013 to 2017
•
Positively, no breakup of the European area
is anticipated in the forecast period.
•
However, the region will experience belowtrend growth in 2013 and very uneven
growth until 2017.
•
Payment and credit risk will remain
elevated until 2014 at least, especially in
Italia
southern European member states.
•
Deteriorating: France, Greece, Italy,
Poland, Spain, UK (16 out of 30 in total).
•
D&B Global Outlook
2
Improving: None.

3. © 2011
Italy - Gross Domestic Product
Growth rate
•
•
•
•
-2.1%
Source: Istat
3
•
Italian economy still in
contraction in 2013
Gross Investments are
the weakest component
of internal demand
Consumptions at minum
level
Decresing in spendig
power and investment
of families
Production capacity in
reduction in many
sectors

4. © 2011
GDP - Europe
•
GDP has decreases in
Euro Zone since 2010 (1,7% versus IIq 2010).
•
Decreasing in
consumptions and
investments level
•
Loans to companies in
contraction especially in
mediterranean countries
(Spain, -14%, Italy -4%
in2013).
•
GDP
2013-II
General decrease of
consumption level of
Area
Euro
DE
ES
FR
IT
-0.5
0.5
-1.6
0.3
-2.1
families
•
USA economy is facing a
slight recovery with
+2,5% in GDP (Iq 2013)
4

5. © 2011
Unemployment Rate
2012 (%) 2013 (%)
EU (27 countries)
10.5
10.9
EU (15 countries)
10.7
11.2
5.4
5.3
Spain
25.6
26.3
France
10.3
11.0
Italy
10.7
12.0
Germany
5

6. © 2011
Payments Worldwide
December 2012
Payments on due date (Payment s Study 2013)
6

7. © 2011
Payments in Europe - 2012
Payments on due date (Payments Study 2013)
7

8. © 2011
Who pays badly?
2010
Punta più bassa
More than 30 days of delay (Payments Study 2013)
8

9. © 2011
Payments in Italy 2010 – 3Q 2013
Payment delay
has become
standard
payment
terms
Polarization of
behaviours
2010
Punta più bassa
Variation III Q 2013/2010 (Payments Study 2013)
9
Today
payments are
the center of a
company
strategy

10. © 2011
Payments in Italy 2010- 3Q 2013
- Sectors
The D&B Paydex It’s
a score that evaluates
the historic payment
performance to
suppliers
D&B Medium Paydex 2010
D&B Medium Paydex 2013
10
D&B Paydex has
decreased in all
sectors.
Retail trade is the
most suffering one (10.83% vs 2010)
followed by Mining
industries (-6,84% vs
2010).

11. © 2011
Polarization of the market: more
failures and insolvencies
Il the last 12 months
36% of insolvencies
have been provocated by
historic clients
(Observatory on Credit
Management)
• 3728
faliures in 2Q 2013
• + 20% vs 2012
• +56% vs 2009
(Falilures Analysis)
11

12. © 2011
Payment and reputation
Custome
r
manage
ment
Credit
collection
Planning
Payments are the
center of the company
financial processes.
They are the mirrow of
Payments
the trustwothiness of
Financial
Trustwor.
Banks
one company.
Payments mean
REPUTATION
Cash
Manag.
Supplier
Credit
12

13. © 2012
Payments and bad reputation
Insurances
•High insurance costs
•Higher insurance
premium
Suppliers
Banks
Paymets are the
•Higher prices
•Inadequate
promotional support
•No investments in
loyalty programs
•Lower credit access
•Higher interests
•More guarantees
face of a company
and stakeholders
behavoiurs are a
direct
consequence
Partner
13
•Difficulties in making
agreemets
•Difficulties in finding
companies available
to make conjoint
invetments

14. © 2011
What companies must be wondering
•
Do I know about my clients reputation?
•
Am I financing only clients with a good reputation?
•
Am I sure to know promptly if one of my clients begins to have a
bad reputation?
•
Do the other companies trust my clients?
14

15. © 2011
Payments and collection: an example
Companies with protests or
failed in Hotel/ Restaurant
/ Catering sector (IIIq
2012)
In 2009 D&B Failure
Score was already
under the mean of
the sector (41,8)
Protest or
failure
Gradual deterioration of D&B Failure Score
15

16. © 2011
What about the future?
Analysis on German balance
sheets (2002 – 2009): the first
source of financing in the short
term is Trade Credit, composed
for 2/3 by timing of payments
towards suppliers
Source: Deutsche Bundesbank
Anaysis 2002 - 2009
16

17. © 2011
In the future? Investing on the best
clients
Before Credit Crunch, Italian companies
had a high Trade credit level. Trade
credit level represents a sales leverage
and doomed to increase its weight on
companies’ balance sheets.
Managing the payment leverage is
becoming more and more strategic.
Companies have to invest on their top
clients.
Fonte: Deutsche Bundesbank
Analisi statistica 2002 - 2009
17

18. © 2011
Commercial Debt – Italy
Source: Analysis on Balance Sheets of
Italian companies - CRIF Decision
Solutions
18

19. © 2011
Thanks for your attention
Marco Preti
CEO CRIBIS D&B
CRIBIS D&B Community
@cribisdnb
cribisdnb