Quali saranno i fattori di successo per una crescita economica sostenibile? Una survey internazionale condotta da Mercuri Urval su i principali Paesi dell\'Europa occidentale, coinvolgendo più di 800 Manager e CEO, ci svela che....

2. 1 Sample's features Executive summary / Synthesis 2 3 Overview 4 Evaluation of the economic changes 5 Perception of the key success factors for growth Action plan evaluation

4. Sample's features / most mentioned sectors [A] - Belgium [B] - Denmark [C] - France [D] - Germany [E] - Italy [F] - Holland [G] – Switzerland Total Europe N= 844 Automotive and industrial sectors: Automotive industry + Technical service - Other + Machinery & Tools + Office Machinery Pharmaceuticals/Medical care : Pharmaceuticals / Medical care /medical device + Health & Medical care Insurance/Bank & Finance: Bank & finance + insurance FMCG: Food and non food Electrical and electronic products : Electronic components + Electrical products (high-tension) Transport: Transport equipment + Transport & Forwarding Q1 In which industry do you currently work? Automotive and industrial sectors Pharmaceuticals/ Medical Care Insurance/ Bank & Finance EDP - consultancy Information and technology FMCG - Food FMCG – Non-Food Transport Electronic components/ Electrical products Automotive and industrial sectors Pharmaceuticals/ Medical Care Insurance/ Bank & Finance EDP - consultancy Information and technology FMCG - Food FMCG – Non-Food Transport Electronic components/ Electrical products

6. Synthesis: Key success factors for growth As the financial crisis engenders an economical recession, the levers for a durable growth are mostly based on the return to financial and commercial profitability. The crisis has every signal from a recession : hence, the directors and managers’ levers are logically centered on a stronger customer/market orientation and strengthened core competencies. 2 )- Core competencies: as the economy is subject to the competition from the emerging countries’ costs, the European industries have understood the key role of the innovation – its rhythm must be accelerated . Two other levers allow to complete the available assets: the quality of service and the mobilization of the intellectual and human assets. 1 )- Market orientation: the conquest of new customers is the main priority. Some of the countries nuance it with the investment in the customer’s loyalty . The European economies have realized that the customer’s loyalty implies to invest in a strong service policy (the product is no longer enough). 3)- Internal management : the crisis engendered the erosion of the employees’ motivation. That preoccupation is particularly strong in Southern Europe (Italy) where the employees’ demotivation may engender a degradation of the social climate (hence a more pronounced preoccupation towards salary grids management). In Northern Europe, that fear also applies to the managers and directors. Their demotivation leads to the implementation of revisited management methods (project management, network/collaborative organization, etc.). 4) Financial management : the crisis engendered an erosion of profitability due a lower level of activity.Hence, the financial crisis also endered an economical crisis. Thus, the return to profitability implies to increase the activity and control the customers’ financial health . Some of the countries (Italy) are more affected by a liquidity crisis.

7. Synthesis: Action plans’ evaluation Whereas the urgent action plans have been promptly set up, the HR action plans still need to be implemented in most of the countries As a whole, the European companies have quickly faced the economic changes (less quickly in Switzerland). Emergency plans are mostly ongoing or achieved. 1)- The market/customer orientation : the accent has been put on strengthening the orders portfolio . Facing the lower activity (and for some of the countries the degradation of the orders portfolio), European managers have implemented action plans in order to improve orders portfolio, the quality of service (customers’ loyalty), while the internationalization and openess to new markets seems to be a less urgent priority. 2)- Core competencies: in order to improve the service to the client, the action plans are mainly focused on improving the quality of service, accelerating the innovations’ rythm and prioritizing the organic growth vs. the external growth. 3)- Internal management: the whole considered action plans towards internal management are more recessed (ongoing or achieved in less than 6 companies out of 10), even on the three most important factors – employees’ remobilization and remotivation. 4)- Financial management: emergency plans have consisted in classic “recipes” in order to find profitability and manage liquidity issues : skills insourcing, reduction of the outsourcing expenses, process strengthening, etc. Most of the European directors and upper managers consider that the current economic changes constitue an opportunity in order to develop new managerial practices , while the external (clients) and internal (employees) publics are meant to have active role. That reflexion fits a highly liberal trend (with some nuances though!), as the whole country plead for the market’s self-regulation. The economic changes’ context is favorable to organizational and managerial changes.

8. Synthesis: Key factors vs. actions : overall results Key factors + Completed or ongoing + (Ongoing: 79%) (Ongoing: 85%) (Ongoing: 71%) (Ongoing: 73%) (Ongoing: 79%) Profitability Acquiring new clients Innovation frequency Quality of services Client retention/ loyalty

9. Key factors + Completed or ongoing + (Ongoing: 80%) Italy confirms the trends that have been observed in the other countries, prioritizing the consolidation of the market/client orientation (acquisition of new customers, detection of new expectations). The cash crisis explains the specific attention that is brought towards the customers’ financial health and the return to solvability. Still, Italy also bets on a permanent innovation policy and on the investment in the employees and executive’ mobilization. Client Retention Profitability Innovation frequency Employees' level of motivation Intellectual - human capital Financial health of clients Acquiring new clients Synthesis: Key factors vs. actions : Italy

10. Evaluation of the economic changes Current situation per country 27% 21% 41% 7% 24% 41% 28% 73% 79% 59% 93% 76% 59% 72% Xx% Unaffected: completely + rather unaffected Affected: rather affected + very much affected Xx% 27% 73% [A] - Belgium [B] - Denmark [C] - France [D] - Germany [E] - Italy [F] - Holland [G] -Switzerland Total Europe N= 844 Q04- How would you say your company's situation has been affected so far by the current economic change? Would you say it has been... Completely unaffected Rather unaffected Rather affected Very much affected Completely unaffected Rather unaffected Rather affected Very much affected

11. Evaluation of the economic changes Current situation of the most mentioned sectors Q04- How would you say your company's situation has been affected so far by the current economic change? Would you say it has been... [C] Insurance/ Bank & Finance N = 41 [G] Electronic components + Electrical Products N= 29 [D] EDP Consultancy Information & technology N= 48 [E] FMCG food and Non Food N= 42 [A] Automotive and industrial sectors N= 125 [B]Pharmaceuticals/ Medical Care N= 73 [F] Transports N= 31 Xx% Unaffected: completely + rather unaffected Affected: rather affected + very much affected Xx%

12. Evaluation of the economic changes Forecast of the situation per country Xx% Better than today: better + slightly better Worse than today: slightly worse + worse Xx% 61% 12% 68% 8% 78% 7% 49% 13% 59% 15% 54% 19% 71% 5% 62% 14% [A] - Belgium [B] – Denmark [C] - France [D] - Germany [E] - Italy [F] - Holland [G] -Switzerland Total Europe N= 844 Q07- How do you expect the health of your company to evolve over the next 12 months? Would you say it will be… Better Slightly better Neither better nor wose Slightly worse Worse I can't tell / I don't know Better Slightly better Neither better nor wose Slightly worse Worse I can't tell / I don't know

13. Evaluation of the economic changes Forecast situation of the most mentioned sectors Q07- How do you expect the health of your company to evolve over the next 12 months? Would you say it will be… Xx% Xx% Better than today: better + slightly better Worse than today: slightly worse + worse [C] Insurance/ Bank & Finance N = 41 [G] Electronic components + Electrical Products N= 29 [D] EDP Consultancy Information & technology N= 48 [E] FMCG food and Non Food N= 42 [A] Automotive and industrial sectors N= 125 [B]Pharmaceuticals/ Medical Care N= 73 [F] Transports N= 31 Xx% Difference: I can’t tell / neither better nor worse

14. Evaluation of the economic changes impact INFORMATION sources per country [A] - Belgium [B] - Denmark [C] - France [D] - Germany [E] - Italy [F] - Holland [G] -Switzerland (1) : Information provided by Upper Management + Analysis by external consultants + management indicators + accounting and financial audits + Internal management meetings (2) : Discussions with colleagues in the company+ Discussions with employees from other companies+ Facts of which I have knowledge internally +My intuition (3) : Information from economic publications + Information from internal newsletters / communications Total Europe N= 812 Q08- You indicated that your company's health will be …..over the next 12 months. What are the sources of information that lead you to believe this? Please select the three primary sources. . (1) Formal information (2) Informal information (3) Economical press (1) Formal information (2) Informal information (3) Economical press

15. Perception of the key success factors for growth Importance of the key success factors for growth per country More important As important Less important [A] - Belgium [B] - Denmark [C] - France Total Europe N= 844 [D] - Germany [E] - Italy [F] - Holland [G] -Switzerland [DG] Q26- Assess the importance of these 4 categories AFTER the current economic change in terms of maintaining sustainable growth. Client / market orientation Core competencies Internal management Financial management Client / market orientation Core competencies Internal management Financial management

16. Perception of the key success factors for growth Focus on the CLIENT/ MARKET ORIENTATION per country Total Europe (N = 844) Belgium Denmark France Germany Italy Holland Switzerland 76% 52% Q16- In your opinion, which key factors of success must your company improve in order to take the opportunity of growth in the near future? 2 1 3 61% 39% [E] - Italy Acquiring new clients Client retention / loyalty Openness to new markets 61%

17. Perception of the key success factors for growth Focus on the CORE COMPETENCIES per country Switzerland Q12- In your opinion, which key factors of success must your company improve in order to take the opportunity of growth in the near future? Belgium Denmark France Germany Italy Holland 2 1 3 82% 63% 45% [E] - Italy Innovation frequency Intellectual / human capital Quality of service Total Europe (N = 844)

18. Perception of the key success factors for growth Focus on the INTERNAL MANAGEMENT per country Q20- In your opinion, which key factors of success must your company improve in order to take the opportunity of growth in the near future? Total Europe (N = 844) Denmark France Germany Italy Holland Switzerland 2 1 3 77% 52% 48% Skills / profiles management [E] - Italy Employees' level of motivation Middle management's level of motivation Total Europe (N = 844) Belgium

19. Perception of the key success factors for growth Focus on the FINANCIAL MANAGEMENT per country Q24- In your opinion, which key factors of success must your company improve in order to take the opportunity of growth in the near future? Total Europe (N = 844) Belgium Denmark France Germany Italy Holland Switzerland [E] - Italy 2 1 3 77% 61% 45% Profitability Cash reserves / liquidity management Financial health of clients

20. Perception of the key success factors for growth Top 3 of the key success factors for growth whatever the PILLAR 2 1 3 71% 66% 63% [A] - Belgium [B] - Denmark [C] - France Total Europe N= 844 [D] - Germany [E] - Italy [F] - Holland [G] -Switzerland 2 1 3 73% 70% 65% 2 1 3 73% 68% 61% 2 1 3 72% 71% 69% 2 1 3 77% 60% 55% 2 1 82% 77% 2 1 3 72% 71% 68% 2 1 3 76% 65% 57% Acquiring new clients Profitability Innovation frequency Quality of service Employees’ level of motivation Client retention / loyalty Intellectual / human capital Acquiring new clients Profitability Acquiring new clients Innovation frequency Innovation frequency Employees’ level of motivation Profitability Profitability Acquiring new clients Employees’ level of motivation Acquiring new clients Acquiring new clients Profitability Acquiring new clients Profitability Quality of service Intellectual / human capital 77% 3

21. Action plan evaluation Lessons learnt from the economic changes [A] - Belgium [B] - Denmark [C] - France [D] - Germany [E] - Italy [F] - Holland [G] - Switzerland Total Europe N= 844 The economic changes is… The economic changes is… Q33- Which of these statements best describes your opinion as of today? a wonderful opportunity to reflect on and deploy new management practices is similar to all the others…. a wonderful opportunity to reflect on and deploy new management practices is similar to all the others….

22. Action plan evaluation Hi GHEST PRIORITIES for your company % high priority Q34- We'd like to know your opinion on potential levers of sustainable growth. For each, please indicate how much of a priority it represents for your company Total Europe (N = 844) Belgium Denmark France Germany Italy Holland Switzerland [E] - Italy 2 1 3 88% 84% 68% strengthening human capital increasing employee motivation, involvement improving ability to listen to the client

23. Action plan evaluation ACTION PRIORITY for the CLIENT / MARKET ORIENTATION per country [A] - Belgium [B] - Denmark [C] - France [D] - Germany [E] - Italy [ [F] - Netherlands Total Europe [G] - Switzerland Considered: Ongoing + Completed Not considered: Not being considered + under consideration but not yet begun 1 1 1 1 1 1 1 1 3 3 3 3 2 2 3 2 2 2 2 2 2 3 3 3 Q27- For each area listed below, please indicate whether an action plan is currently considered or not Acquiring new clients Business internationalization Customer service Client retention / loyalty Quality of orders portfolio Openness to new markets Level of orders portfolio Responsiveness / ability to deliver Quality of client portfolio Identifying new expectations Ease / difficulty in negotiating Acquiring new clients Business internationalization Customer service Client retention / loyalty Quality of orders portfolio Openness to new markets Level of orders portfolio Responsiveness / ability to deliver Quality of client portfolio Identifying new expectations Ease / difficulty in negotiating

24. Action plan evaluation ACTION PRIORITY for the CORE COMPETENCIES per country [A] - Belgium [B] - Denmark [C] - France [D] - Germany [E] - Italy [ [F] - Netherlands Total Europe Considered: Ongoing + Completed Not considered: Not being considered + under consideration but not yet begun [G] - Switzerland [DEG] 1 2 3 1 3 2 1 2 3 1 2 3 1 2 3 1 2 3 1 2 3 1 2 3 Q27- For each area listed below, please indicate whether an action plan is currently considered or not Quality of services Organic growth Quality of offering Innovation frequency Staff turnover rate Investment frequency Quality of recruitment Intellectual / human capital Quality of training External growth Material / technological capital Quality of services Organic growth Quality of offering Innovation frequency Staff turnover rate Investment frequency Quality of recruitment Intellectual / human capital Quality of training External growth Material / technological capital

25. Action plan evaluation ACTION PRIORITY for the INTERNAL MANAGEMENT per country [A] - Belgium [B] - Denmark [C] - France [D] - Germany [E] - Italy [ [F] - Netherlands Total Europe [G] - Switzerland Considered: Ongoing + Completed Not considered: Not being considered + under consideration but not yet begun 1 1 1 1 1 1 1 1 2 2 3 3 3 2 2 3 3 3 2 2 2 2 3 3 Q27- For each area listed below, please indicate whether an action plan is currently considered or not Internal advancement Schedule flexibility Skills / profiles management Middle management's motivation Employees' level of motivation Project management Social climate Executives' level of motivation Network / collaborative management Delegation Career management Salary grid management Career internationalization Internal advancement Schedule flexibility Skills / profiles management Middle management's motivation Employees' level of motivation Project management Social climate Executives' level of motivation Network / collaborative management Delegation Career management Salary grid management Career internationalization

26. Action plan evaluation ACTION PRIORITY for the FINANCIAL MANAGEMENT per country [A] - Belgium [B] - Denmark [C] - France [D] - Germany [E] - Italy [ [F] - Netherlands Total Europe [G] - Switzerland 1 Considered: Ongoing + Completed Not considered: Not being considered + under consideration but not yet begun 1 1 1 1 1 1 1 2 2 3 3 2 3 3 3 2 2 2 3 2 2 3 3 Q27- For each area listed below, please indicate whether an action plan is currently considered or not Working capital Cash flow Cash reserves management Profitability Working capital needs Debt control Control over the stock price Financial analysis / rating Financial health of clients Dividend paid to shareholders Financial health of suppliers Working capital Cash flow Cash reserves management Profitability Working capital needs Debt control Control over the stock price Financial analysis / rating Financial health of clients Dividend paid to shareholders Financial health of suppliers