PwC Annual Global CEO Survey

Global Challenges & Responses These are uncertain times. While change presents opportunity for some, most business thrives on stability – and the fact that this is elusive makes plans increasingly hard to develop. Over 1,250 company leaders from 60 countries shared their thinking with us for the PwCAnnual Global CEO Survey – now in its 15th year. Some of the top ideas are outlined in this graphic. You can explore many more stories and much of the data at www.pwc.com/ceosurvey. CEO Survey EXPLORE THE SURVEY рис ©2012 Pricewaterhouse Coopers LLP. All rights reserved. Confidence v Mounting рис uncertainties 40% 15% CEOS expecting growth in 2012 in their companies in the global economy CEOS are nearly three times more confident in their company's growth prospects than they are in the global economy's. 000000. How confident are you about your company's prospects for revenue growth over the next year? "The days of being able to assume that the economy is going to take care of itself are gone.' 40 30 20 Richard O'Brien, President and CEO, Newmont Mining Corporation 10 2003 2004 2005 2009 2010 2007 CEO confidence fell this year, but remains well above the levels seen in 2009 and 2010. 2006 2008 2011 2012 ©2012 Pricewaterhouse Coopers LLP. All rights re served. What's giving 45 1% рис CEOS confidence? belleve trade will be easter 56% only 31% disagree CEOS believe trade and cross-border capital flows will become easier believe cross-border capital flows will be easter The trends that support long-term investments to build emerging markets operations and create innovations remain firmly in place. "Problems like the European debt crisis and the unemployment rate in the US are serious, but the emerging market is actually one of the major driving forces for future development." CEO interest in driving growth with new products or services has increased over the past few years. 2012 28% 2011 29% 2010 20% 2009 17% Yang Yuanqing, Chairman and 2008 20% CEO, Lenovo 2007 13% e2012 PricewaterhouseCoopers LLP. All rights reserved. Interest in China in 2012 Growth isn't рис only in the BRICS 30 fell from 39% in 2011 More than 60 different countries listed as top overseas markets CEOS' commitments to global markets continue to expand despite economic uncertainties. "Once upon a time we relied on the markets in The US and Gerrnany joined China, India and Brasil arnong the most frequently named priority narkets. Europe and the US to a greater extent. If you look at the statistics over the Top 10 countries named as target overseas markets by CEOS. last five years Asian economies are trading 30 22 15% 14% Бrаzil with each other much 12% more than ever before." China US India Germany 5% 5% Japan 4% Jaime Augusto Zobel de Ayala, Chairman and CEO, Ayala Corporation Russia UK France Australia e2012 PricewaterhouseCoopers LLP. All rights reserved. Expanding in emerging рис markets Growing operations, hiring staff and sourcing new products locally 70 operations of CEOS prefer to recrult local talent talent talent CEOS aren't just exporting current offerings. Rather, they're building fully fledged businesses in these markets. products exports Local Markets Operational objectives in key markets "You have to innovate, design, manufacture and source locally to be successful anywhere." 19% 22% 27% 15% 24% Build R&D/innovation capacity or acquire intellectual property 21% 33% 30% 11% 10% 49% 61% 55% 42% 32% Australia Brazil China France Germany Build manufacturing capacity David Cote, Chairman and CEO, Honeywell 31% 29% 19% 22% 26% 10% 12% 31% 179% Access local talent base 61% 44% 53% 47% 46% India Japan Russia UK US e2012 PricewaterhouseCoopers LLP. All rights reserved. 2014 2013 2012 рис Challenges to growth 47 see growth over the next 3 years Disparity between confidence in growth and access to talent From economic volatility, including the European debt crisis, to natural disasters, there's plenty for CEOS to be worried 30 think they'll have the talent they need about. "In a globalised world, even localised crises end Businesses need to be agile, to navigate a range of CEOS' concerns. up having an impact on all economies. The 2008 crisis taught us that." 80% 56% 46* 30* Luiza Helena Trajano Inácio Rodriguez, CEO, Magazine Luiza SA Over-regulation Energy Costs Uncertain or volatile economic grow th Inadequacy of basic infrastructure e2012 Priewaterhouse Coopers LLP. All rights reserved.