Download | Statistical Press Release Lisbon, 21 October 2013

Statistical Press Release | Lisbon, 21 October 2013 |
New statistics on non-financial corporations from the Central Balance Sheet Database
Starting from the October 2013 issue of its Statistical Bulletin (Section A.19 and Chapter G), Banco de Portugal will
disseminate new statistics on non-financial corporations from the Central Balance Sheet Database – except for those
1
under Section A of NACE Rev.2 (agriculture, forestry and fishing).
The new statistics reflect developments in the economic and financial situation of non-financial corporations in
Portugal, namely in terms of financing, profitability and days accounts receivables and days accounts payables.
The quarterly series starts in 2006 and ends in the second quarter of 2013, combining different points of analysis,
namely concerning the capital-holding sector, economic activity sector and size.
The dissemination of new statistics has been made possible due to the fact that for a relatively long period of time
relevant information has been available for the reference population in Portugal, which since 2007 has been provided
by the wide encompassing Simplified Corporate Information (IES – Informação Empresarial Simplificada) and, more
recently, an adequate methodology to select corporations in the Quarterly Survey to Non-Financial Corporations
(ITENF – Inquérito Trimestral às Empresas Não Financeiras).
The new statistics on non-financial corporations are produced using a new methodology: based on information
collected from a set of corporations, results for the non-financial corporations sector in Portugal are inferred. As such,
annual data incorporate an estimated share of “non-response” to the IES, and quarterly data include an extrapolated
component on the basis of annual data and responses to the ITENF.
These statistics complement statistical information compiled and disseminated for the non-financial corporations
sector from other information systems, e.g. in the scope of monetary and financial statistics, balance of payments and
international investment position statistics and financial accounts. Chapter G provides additional information on
corporations that serve as reference for the non-financial corporations sector, namely in the context of Chapters A, B,
C, F and K of the Statistical Bulletin.
The new statistics are based on accounting aggregates, which may result in methodological differences compared to
other results featured in other chapters of the Statistical Bulletin. In most cases, methodological differences are
associated with the scope and valuation of items.
1
This activity sector is not covered by the underlying quarterly data source.
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| Statistical Press Release | Lisbon, 21 October 2013 |
Characterisation of non-financial corporations in Portugal
According to Central Balance Sheet data office estimates, there were around 370,000 non-financial corporations in
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Portugal in 2012, a figure that has not changed significantly over the past few years (Chart 1). The vast majority of
these are small or medium-sized corporations. In 2012 private corporations accounted for 94.5% of total assets of
non-financial corporations.
By economic activity sector, “Other services” and “Wholesale and retail trade; repair of motor vehicles and
motorcycles” include a substantial share of corporations (157,000 and 102,000 respectively) and are also relevant in
terms of both balance sheet (assets) and income statement (income) of total non-financial corporations.
“Manufacturing, mining and quarrying” and “Non-financial holdings”, respectively, are also important in terms of
income and assets (Chart 1).
Chart 1 – By sector and size of corporations – 2012
%
100
80
60
40
20
0
Manufacturing, Electricity, gas Construction
Public mining and
and water
corporations not included in quarrying
the general government sector
Wholesale and Transportation Other services
retail trade; and storage
repair of motor vehicles and motorcycles
Non‐financial Small and holdings
medium‐sized corporations
Private corporations by economic activities
Number of corporations
Total assets
Large corporations
Size*
* Excludes Non-financial holdings
Total income
In 2012 total assets of non-financial corporations continued to follow the downward path started in 2011, standing at
around €650 billion (Chart 2). By component, “Financial investments” and “Non-financial fixed assets, inventories and
biological assets” posted the largest shares, each accounting for approximately one third of that value. In relative
terms, “Financial investments” grew the most between 2006 and 2012.
Chart 2 – Total assets (EUR millions) and percentage breakdown
800 000
17.9
600 000
200 000
2006
-200 000
2006
2007
2008
Changes
2
32.6
28.9
0
2009
2010
Total assets
2011
2012
35.6
5.5
9.6
10.8
400 000
16.8
36.6
5.8
2012
Non-fin. fixed assets, inventories and bio. assets
Financial investments
Trade debtors
Cash and bank deposits
Other assets
Excludes corporations under Section A of NACE Rev2: Agriculture, forestry and fishing.
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| Statistical Press Release | Lisbon, 21 October 2013 |
Income generated by non-financial corporations has followed a downward path since 2008 (with the exception of
2010), standing at €328 billion in 2012 (Chart 3). The main contribution came from the activity component (net
turnover), which also impacted on expenses.
Chart 3 – Profit and loss account
10 6
euros
Total income- contributions to changes
%
15
10 6
euros
Total expenses- contributions to changes
%
600.000
15
600.000
10
500.000
10
500.000
5
400.000
5
400.000
0
300.000
0
300.000
-5
200.000
-5
200.000
100.000 -10
100.000
-10
0
-15
2007
2008
Net turnover
Annual rate of change
2009
2010
2011
2012
Other income
Total income (rigtht-hand scale)
0
-15
2007
2008
2009
2010
2011
2012
Costs of goods sold and mat. consum.+External supplies and serv.+Staff costs
Other expenses
Annual rate of change
Total expenses (rigtht-hand scale)
Return on assets
Profitability indicators tend to somewhat reflect developments in non-financial corporations activity. At the end of
2012 return on assets, on average (Chart 4), was approximately one half of the value at the end of 2006 (4.1% and
8.1% respectively). In the second quarter of 2013 it slightly recovered (to 4.5%) across most sectoral aggregates and
size classes.
However, sizeable differences exist between the various groups of corporations: private corporations always post
higher return on assets than public corporations, although due to a substantial decrease in 2011 and 2012 this gap
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has closed somewhat. All economic activities except for “Electricity, gas and water” have contributed to this
convergence. Both this sector and “Manufacturing, mining and quarrying” post the highest return. By size classes,
large corporations’ profitability is always higher than that of small and medium-sized corporations.
3
For the purposes of these statistics, only public corporations not included in the General Government sector are considered.
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| Statistical Press Release | Lisbon, 21 October 2013 |
Chart 4 – EBITDA / Total assets (%)
Public corporations not included in the general government sector and private corporations
Private corporations (excluding Non‐financial holdings) ‐ Size
16
16
14
14
12
12
10
10
8
8
6
6
4
4
2
2
0
Empresas privadas
0
Dec Mar Jun
2006 2007 2008 2009 2010 2011
2011
Sep Dec Mar Jun
2012
Dec Mar Jun Sep Dec Mar Jun
2013
2006 2007 2008 2009 2010 2011
2011
2012
2013
Private corporations ‐ Economic activities
16
16
14
14
12
12
10
10
8
8
6
6
4
4
2
2
0
0
Dec Mar Jun
2006 2007 2008 2009 2010 2011
2011
Sep
2012
Dec Mar Jun
2013
Average
Electricity, gas and water
Wholesale and retail trade; repair of motor vehicles and motorcycles
Other services
Public corporations
Small and medium-sized corporations
Dec Mar Jun
2006 2007 2008 2009 2010 2011
2011
Sep Dec Mar Jun
2012
2013
Manufacturing, mining and quarrying
Construction
Transportation and storage
Non-financial holdings
Private corporations
Large corporations
Structure of funding
Non-financial corporations in Portugal have raised capital mainly via equity and obtained funding. At the end of the
first half of 2013, each accounted for nearly 40% of total corporations’ financing (Chart 5). Over the past few years,
developments in these forms of financing have diverged, with a decline in the weight of equity (43.2% of total assets
in 2006) and an increase in that of obtained funding (30.6% of total assets in 2006).
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| Statistical Press Release | Lisbon, 21 October 2013 |
Chart 5 – Structure of funding
Equity / Total assets (in %)
70
60
50
40
30
20
10
0
Public Private corporations corporations
not included in the general government sector
Manufacturing, Electricity, gas mining and and water
quarrying
Total
Construction
Wholesale and Transportation Other services
retail trade; and storage
repair of motor vehicles and motorcycles
Non‐financial holdings
Private corporations by economic activities
2006 2012 Small and medium‐sized corporations
Large corporations
Private corporations (excludes Non‐financial holdings) by size
2013 Jun
Obtained funding/ Total assets (in %)
70
60
50
40
30
20
10
0
Public corporations not included in the general government sector
Private corporations
Manufacturing, Electricity, gas mining and and water
quarrying
Total
Construction
Wholesale and Transportation Other services
retail trade; and storage
repair of motor vehicles and motorcycles
Private corporations by economic activities
2006 2012 Non‐financial holdings
Small and medium‐sized corporations
Large corporations
Private corporations (excludes Non‐financial holdings) by size
2013 Jun
Equity (in terms of assets) of public corporations as a whole4 is well below that of private corporations. Conversely,
funding (as a share of assets) obtained by public corporations is higher than that of private corporations.
Within private corporations, “Non-financial holdings” hold the highest shares of equity.
“Construction”, “Transportation and storage” and “Electricity, gas and water” have the lowest equity levels and, at the
same time, the highest in terms of obtained funding. In the case of “Transportation and storage” and “Electricity, gas
and water”, obtained funding accounted for more than half of total assets over the most recent period.
On average, the weight of equity has declined for small and medium-sized corporations as well as for large
corporations. However, the weight of equity in large corporations continues to exceed that of small and medium-sized
corporations.
4
For the purposes of these statistics, only public corporations not included in the General Government sector are considered.
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| Statistical Press Release | Lisbon, 21 October 2013 |
Cost of obtained funding and financial pressure
Between 2006 and 2012, the cost of obtained funding of non-financial corporations, calculated as the weight of
interest expenses in obtained funding, has stood between 5.4% (a peak in 2008) and 3.4% (a minimum in 2010)
(Chart 6), while most recently following an upward path.
The cost of obtained funding has converged both between public and private corporations and across economic
activity sectors. More recently, however, cost of obtained funding has become higher in the “Transportation and
storage” sector and lower for “Other services”.
Chart 6 – Interest expenses / obtained funding (%)
8
7
6
5
4
3
07
08
09
10
12
Public corporations
Manufacturing, mining and quarrying Construction
Transportation and storage
Other services
06
07
09
10
11
Jun
Dec
12
Mar
Jun
Sep
Dec
Mar
Jun
Sep
Dec
Mar
Jun
Sep
Dec
Mar
Jun
08
Sep
Dec
Mar
Jun
Sep
Dec
Mar
Jun
Sep
Mar
Jun
13
Public corporations not included in the general government sector and private corporations
Dec
Dec
Mar
Jun
Sep
Dec
11
Mar
Jun
Sep
Dec
Mar
Jun
Sep
Dec
Mar
Jun
Sep
Dec
Mar
Jun
Sep
Dec
Mar
Jun
Sep
Dec
06
Mar
2
13
Private corporations by economic activities
Private corporations
Electricity, gas and water
Wholesale and retail trade; repair of motor vehicles and motorcycles
Non‐financial holdings
Financial pressure on non-financial corporations in Portugal, which may be inferred from the EBITDA / Interest
expenses ratio, increased in 2012 from 2006. EBITDA exceeds corporations interest expenses by 2.9 times, i.e. well
5
below 2006 (6.1 times). Over this period, public corporations were under the greatest financial pressure. Turning to
private corporations, “Construction” and “Transportation and storage” are under the greatest pressure. In the case of
“Construction”, EBITDA did not exceed interest expenses.
Days accounts payables and days accounts receivables
Between 2006 and 2010 the average number of days accounts payables and days accounts receivables for nonfinancial corporations in Portugal stood in the 60-80 day range, with the average number of days accounts payables
slightly exceeding that of receivables (Chart 7).
The average number of days accounts receivables for public corporations
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was lower than that for private
corporations by around 30 days, while the average number of days accounts payables increased substantially
compared to private corporations since 2010.
By economic activity sector, there are significant differences: “Construction” posts the highest average number of
days (around 160-180 days); conversely, “Electricity, gas and water” has the lowest average number of days
(approximately 40 days). By size classes, large corporations post the lowest average number of days (around 60
days).
5
For the purposes of these statistics, only public corporations not included in the General Government sector are considered.
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| Statistical Press Release | Lisbon, 21 October 2013 |
Chart 7 – Average number of days
Accounts receivables
175
150
125
100
75
06
07
08
09
10
11
12
06
07
09
10
11
Jun
Dec
Mar
Jun
Sep
Dec
Mar
Jun
Sep
Dec
Mar
Jun
Sep
Dec
Mar
Jun
08
Public corporations not included in the general government sector and privat corporations
Sep
Dec
Mar
Jun
Sep
Dec
Mar
Jun
Sep
Mar
Jun
13
Dec
Dec
Mar
Jun
Sep
Dec
Mar
Jun
Sep
Dec
Mar
Jun
Sep
Dec
Mar
Jun
Sep
Dec
Mar
Jun
Sep
Dec
Jun
Sep
Dec
Mar
25
Mar
50
12
13
Private corporations by economic activities
Public corporations
Manufacturing, mining and quarrying Construction
Transportation and storage
Private corporations
Electricity, gas and water
Wholesale and retail trade; repair of motor vehicles and motorcycles
Other services
Accounts payables
175
150
125
100
75
07
09
10
11
Public corporations
Manufacturing, mining and quarrying Construction
Transportation and storage
06
07
11
12
Jun
Dec
Mar
Jun
Sep
Dec
Mar
Jun
Sep
Mar
Sep
10
Dec
Jun
Mar
Sep
09
Dec
Jun
Mar
Sep
08
Dec
Jun
Mar
Dec
Jun
Sep
Mar
Jun
13
Dec
Dec
12
Public corporations not included in the general government sector and privat corporations
Mar
Jun
Sep
Dec
Mar
Jun
Sep
Dec
Mar
Jun
Sep
Mar
Sep
Dec
Jun
Mar
Sep
08
Dec
Jun
Mar
Sep
Jun
Dec
06
Mar
25
Dec
50
13
Private corporations by economic activities
Private corporations
Electricity, gas and water
Wholesale and retail trade; repair of motor vehicles and motorcycles
Other services
7