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Payments Study in english

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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

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Payments Study in english

  1. 1. Payments Study Turkey September 24, 2013 Marco Preti, CEO CRIBIS D&B
  2. 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. 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. 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. 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. 6. © 2011 Payments Worldwide December 2012 Payments on due date (Payment s Study 2013) 6
  7. 7. © 2011 Payments in Europe - 2012 Payments on due date (Payments Study 2013) 7
  8. 8. © 2011 Who pays badly? 2010 Punta più bassa More than 30 days of delay (Payments Study 2013) 8
  9. 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. 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. 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. 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. 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. 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. 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. 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. 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. 18. © 2011 Commercial Debt – Italy Source: Analysis on Balance Sheets of Italian companies - CRIF Decision Solutions 18
  19. 19. © 2011 Thanks for your attention Marco Preti CEO CRIBIS D&B CRIBIS D&B Community @cribisdnb cribisdnb

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