Financing
External Internal
Divestments
Financing Financing
Size by
Number of Companies Employees
Headcount
0 148.012 49,5% 0 0,0%
1-9 119.898 40,1% 356.590 16,0%
10-49 25.300 8,5% 503.549 22,6%
50-249 4.914 1,6% 494.600 22,2%
SME 298.124 99,6% 1.354.739 60,9%
250+ 1.071 0,4% 870.472 39,1%
In Total 299.195 100,0% 2.225.211 100,0%
Austrian companies by sector
100,000
80,000
60,000
40,000
20,000
-
craft and services trade tourism information and transport and industry banks and
consulting traffic assurances
Employees by sector
600,000
500,000
400,000
300,000
200,000
100,000
-
craft and services trade tourism information and transport and industry banks and
consulting traffic assurances
Average Return on Sales
Return on Sales
4,0
1,6
Equity of SMEs
41
36
12 11
13,4
• Volatile environment
Changes due to the financial crisis
• Internal financing becoming more important
▫ Build up and ensure liquidity stock and receivables disposal
(to the disadvantage of ROI)
• Adjustment of the financing portfolio
▫ Make new financial resources accessible equity financing
more attractive than bank borrowings
• Planning and controlling getting more difficult
• Risk reduction
• Adjustment of portfolio
equities, projects, investments
• Adjustment of internal structures
value added, core- and support activities, outsourcing vs. insourcing
Changes due to the financial crisis
• Focus on liquidity (instead of ROI/ROE)
▫ Adjustment of targets and incentive systems
▫ Assessement of projects with regard to their liquidity contribution
• Increase of Free Cashflows
• Revaluation of balance and risk positions
▫ Decline of the initial euphoria in matters of IFRS and the fair value
evaluation
▫ The prudence principle and creditor protection are important again
▫ Decrease of financial risks in the balance sheets
• Change of focus: from income statement to balance sheet
▫ Working Capital
▫ Less Debts
Attractivity of long-term
financing instruments
• For many corporates, particulary larger companies, equity
and bond issuance has proven to be a more attractive way to
financing their business than bank borrowings.
Free Cashflow becoming more important