EY - A Vision For Growth - EN 2016

A vision for growth
Business outlook barometer

Romania 2016
What is A vision for growth?

A vision for growth is a survey that explores the perceptions of top executives from major companies operating in
Romania regarding the business outlook for 2016. In this edition we also provide comparative data with the similar
surveys conducted at the beginning of 2014 and 2015.
This EY report is based on an online survey of 421 C-suite level executives from companies in various sectors,
who provided a perspective on how the domestic business environment is perceived at the beginning of 2016.
In 2016 companies seem to measure their success by a combination of customer satisfaction, financial results, and market
share. Customer satisfaction goes up from 78% in 2014 and 72% in 2015 to 83% in 2016. Financial results have landed
on the plateau of 68% in 2016 after a 28% fall in 2015, from 96% in 2014. Compared with 2014 (63%) and 2015 (55%),
market share goes marginally up from 55% to 56%, while brand awareness is on the rise from 41% up to 51%.
According to the results of our survey, 41% of respondent companies foresee a significant growth of +10% to +30%
of turnover in 2016, while 32% expect a growth rate of +5% to +10% in 2016. The forecasts regarding the evolution
of the profit in 2016 are optimistic as well, since 28% of the respondents profit growth rates in the interval from +5%
to +10% and 32% expect the profit of their company to grow between +10% to over 30%.
5 main
findings
4
5
Page 2
20% of respondents expect no increase in the employees number in 2016. At the same time, 35% of companies
say they expect their staff to increase by +1% to +5% this year. Moreover, 36% of respondents expect the
number of their employees to grow between +5% and over 30%. These percentages lead us to believe that the
projected expansion of businesses in 2016 commensurate with the optimism of the economic growth.
25% of respondents say they have earmarked investment growth rates of +1% to +5% in 2016 compared to 17% in
H2 2015, followed by 45% who say will increase investments by +5% to +20% vs. 42% in H2 2015, and 11% who
foresees their investments going up between 20% and exceeding 30% in 2016, compared with 17% at in second
half of last year.
In 2016, most companies (44%) expect salaries to go up between +1% to +5%, followed by 31% of companies which
expect salaries to go up by +5% to +10% and 12% of companies which expect higher increases of +10% to more than
20%. Still 13% of companies expect no changes in the salary level in 2016.
See here the previous edition of the survey from February 2015.
A vision for growth

Business outlook barometer
Romania 2016
Our survey reflects the increased focus
companies have on sustainable growth in a
business environment which, in spite of the
prospects for a positive economic evolution,
brings both challenges and opportunities.
Bogdan Ion, Managing Partner, EY Romania
Which is your confidence level in the current economic

direction of the country? (single answer)
Question 1 Overall responses
2%
Extremely confident
13%
Very confident
48%
Confident
32%
Somehow confident
5%
Not at all confident
0%
10%
20%
30%
40%
50%
60%
Total responses: 421

(Skipped this questions: 0)
At the beginning of 2016, 63% of the respondent companies show confidence in the current economic direction of the country,
with 13% of them being very confident and 2% being extremely confident. This majority of responses illustrates the
background of positive business outlook for the current year.
Page 4
Please indicate the main three elements that you think will
define success in your industry? (only three answers)
Question 2 A 3-year perspective
2014
2015
2016
120%
96%
100%
78%
80%
83%
72%
68% 68%
60%
63%
55% 56%
51%
39% 41%
40%
26%
15%
7%
20%
13%
7% 7%
6% 4%
9%
4% 1%
0%
Customer
satisfaction
Financial
results
Market share
Brand
awareness
Number of
years on the
market
Number of
employees
Going public
(IPO)
Other
In 2016 companies seem to measure their success by a combination of customer satisfaction, financial results, and market share.
Customer satisfaction goes up from 78% in 2014 and 72% in 2015 to 83% in 2016. Financial results have landed on the plateau of
68% in 2016 after a 28% fall in 2015, from 96% in 2014. Compared with 2014 (63%) and 2015 (55%), market share goes marginally
up from 55% to 56%, while brand awareness is on the rise from 41% up to 51%.
Page 5
How much you expect your turnover to grow in 2016?

(single answer)

6%
Exceeding 30%
12%
+20% to +30%
23%
+10% to +20%
32%
+5% to +10%
20%
+1% to +5%
2%
0%
3%
-1% to -5%
2%
-5% to -10%
-10% to -20%
-20% to -30%
Exceeding -30%
0%
5%
10%
15%
20%
25%
30%
35%

The outlook for turnover growth is somehow in line with the positive economic growth for 2016. According to the results of our
survey, 41% of respondent companies foresee a significant growth of +10% to +30% of turnover in 2016, while 32% expect a
growth rate of +5% to +10% in 2016.
Page 6

(single answer)
Question 3 By industry sector
Industry sector
Industry / Manufacturing
Less -20% -10% -5%

than
to
to
to
-30% -30% -20% -10%
5%
Retail & Wholesale Trade
-1%
to
-5%
2%
0%
5%
2%
Services
3%
Information Technology (IT)
3%
3%
3%
Food & Beverages / Agriculture

Construction / Real Estate
Power & Energy
6%
10%
9%
14%
Transportation
5%
Pharmaceuticals / Healthcare
Telecom
9%
9%
9%
+1% +5% +10% +20%

Over
to
to
to
to
30%
+5% +10% +20% +30%
24% 26% 27% 9%
2%
20%
46%
12%
14%
6%
10%
50%
13%
18%
13%
22%
30%
16%
16%
21%
31%
21%
21%
6%
13%
22%
31%
6%
13%
19%
29%
10%
14%
4%
26%
48%
16%
5%
16%
25%
17%
25%
18%
37%
18%
17%
According to responses received to fist half-year edition of the survey for 2016, the following are the top 3 industries that
foresee turnover growth rates exceeding 30%: pharmaceuticals industry (17%), IT (16%), and construction/real estate (13%).
Page 7

(single answer)

Exceeding 30%
+20% to +30%
+10% to +20%
+5% to +10%
+1% to +5%
0%
-1% to -5%
-5% to -10%
9%
5%
2%
5%
10%
20%
30%
Information Technology
Exceeding 30%
+20% to +30%
+10% to +20%
+5% to +10%
+1% to +5%
0%
-1% to -5%
-5% to -10%
6%
14%
12%
46%
20%
2%
0%
20%
40%
30%
22%
13%
3%
10% 20% 30% 40%
Exceeding
+20% to +30%
+10% to +20%
+5% to +10%
+1% to +5%
0%
-1% to -5%
-5% to -10%
0%
6%
21%
21%
31%
21%
20%
Exceeding 30%
+20% to +30%
+10% to +20%
+5% to +10%
+1% to +5%
0%
-1% to -5%
-5% to -10%
60%
16%
16%
0%
Services

Exceeding 30%
+20% to +30%
27% +10% to +20%
+5% to +10%
26%
+1% to +5%
24%
0%
-1% to -5%
-5% to -10%
2%
0%
Not shown intervals received zero answers.
40%
18%
13%
50%
10%
3%
3%
3%
0%
20%
40%
60%

Exceeding 30%
+20% to +30%
+10% to +20%
+5% to +10%
+1% to +5%
0%
-1% to -5%
-5% to -10%
13%
0%
22%
13%
9%
6%
0%
10%
20%
30%
These are the industry sectors which received the largest number of answers per industry. Therefore, we show the distribution
of the answers by these six industries for the questions which regard the expected evolution of turnover, profit, investments,
number of employees, salary level for 2016.
Page 8

(single answer)
Question 3 By revenues
Exceeding 30%
8%
+20% to +30%
8%
12%
+10% to +20%
10%
19%
34%
8%
31%
30%
6%
34%
36%
14%
37%
13%
100 M EUR+
+5% to +10%
15%
8%
25%
38%
14%
50 - 100 M EUR
10 - 50 M EUR
+1% to +5%
11%
0%
11%
14%
29%
36%
10%
1 - 10 M EUR
Less than 1 M EUR
-1% to -5%
34%
20%
-5% to -10%
10%
22%
20%
33%
0%
10%
20%
40%
34%
30%
40%
33%
50%
10%
11%
60%
70%
22%
80%
90%
100%

As shown in this chart, the large companies (those with revenue levels between 50 and 100 M EUR+) are more pessimistic
regarding the evolution of their turnover in 2016. Also interesting are the results shown for SMEs with revenue levels of under
50M EUR which appear to have optimistic prospects for turnover growth in 2016.
Page 9
How much you expect your turnover to grow? (single answer)

2014
2015
2016
2%
Exceeding 30%
6%
7%
+20% to +30%
12%
19%
+10% to +20%
35%
23%
+5% to +10%
26%
+1% to +5%
17%
3%
4%
2%
2%
3%
0%
-1% to -5%
-5% to -10%
1%
2%
-10% to -20%
2%
30%
32%
37%
20%
-20% to -30%
Exceeding -30%
0%
5%
10%
15%
20%
25%
30%
35%
40%
In the past 3 years the most important shift in the outlook for turnover growth was from the interval of +1% to +5% which
reached 37% of the responses in 2014, to the interval of +10% to +20% which reaches 35% of the responses in 2016.
Page 10
How much you expect your profit to grow in 2016?

(single answer)

4%
Exceeding 30%
10%
+20% to +30%
18%
+10% to +20%
28%
+5% to +10%
29%
+1% to +5%
7%
0%
-1% to -5%
2%
-5% to -10%
2%
-10% to -20%
-20% to -30%
Exceeding -30%
0%
5%
10%
15%
20%
25%
30%
35%

The forecasts regarding the evolution of the profit in 2016 are optimistic as well, since 28% of the respondents expect profit
growth rates in the interval from +5% to +10% and 32% expect the profit of their company to grow between +10% to over 30%.
Page 11

(single answer)
9%
+1% +5% +10% +20%

Over
to
to
to
to
30%
+5% +10% +20% +30%
30% 31% 16% 7%
5%
2%
40%
24%
24%
10%
11%
24%
24%
24%
10%
5%
5%
19%
27%
25%
13%
11%
3%
18%
46%
12%
9%
12%
6%
10%
28%
31%
19%
6%
5%
29%
14%
14%
5%
9%
5%
37%
37%
21%
42%
8%
33%
17%
28%
9%
27%
18%
Industry sector
Less -20% -10% -5%

than
to
to
to
-30% -30% -20% -10%
1%
-1%
to
-5%
1%
Services
2%

Power & Energy
19%
Transportation
0%
Telecom
18%
5%
In 2016, 12% of respondents from food & beverages/agriculture industry, followed by 11% of respondents from IT industry
foresee a significant increase of over 30% for their companys profit, in contrast with 19% of the respondents from the power &
energy industry expect a profit decrease of -5% to -10%.
Page 12

(single answer)

Exceeding 30%
+20% to +30%
+10% to +20%
+5% to +10%
+1% to +5%
0%
-1% to -5%
-5% to -10%
Exceeding 30%
+20% to +30%
+10% to +20%
+5% to +10%
+1% to +5%
0%
-1% to -5%
-5% to -10%
16%
31%
30%
9%
1%
1%
20%
40%
60%
25%
27%
19%
5%
20%
40%
10%
24%
24%
40%
2%
0%
Exceeding 30%
+20% to +30%
+10% to +20%
+5% to +10%
+1% to +5%
0%
-1% to -5%
-5% to -10%
11%
13%
0%
Exceeding 30%
+20% to +30%
+10% to +20%
+5% to +10%
+1% to +5%
0%
-1% to -5%
-5% to -10%
20%
40%
60%
Exceeding 30%
+20% to +30%
+10% to +20%
+5% to +10%
+1% to +5%
0%
-1% to -5%
-5% to -10%
Services
5%
7%
0%
60%
12%
9%
12%
46%
18%
3%
0%
20%
40%
60%
5%
10%
24%
24%
24%
11%
2%
0%
20%
40%
60%

Exceeding 30%
+20% to +30%
+10% to +20%
+5% to +10%
+1% to +5%
0%
-1% to -5%
-5% to -10%
6%
19%
31%
28%
10%
6%
0%
20%
40%
60%
of answers by these six industries for the questions which regard expected evolution of turnover, profit, investments, number of
employees, salary level for 2016.
Page 13

(single answer)
Exceeding 30%
6%
+20% to +30%
13%
+10% to +20%
14%
28%
39%
13%
21%
5%
27%
33%
27%
20%
38%
16%
100 M EUR+
+5% to +10%
12%
11%
29%
+1% to +5%
12%
11%
30%
36%
12%
50 - 100 M EUR
10 - 50 M EUR
0%
13% 3%
-1% to -5%
13%
-5% to -10%

30%
38%
20%
10%
33%
17%
40%
60%
1 - 10 M EUR
Less than 1 M EUR
21%
37%
50%
0%
37%
12%
17%
80%
16%
100%
Companies with revenue level of 10-50 M EUR are more optimistic regarding the envisaged profit growth rate for 2016. On the
reserved side are the large companies with revenue levels of 100 M EUR+, which have a large percentage distribution across
the negative level of -5% to -10% interval of the scale.
Page 14
How much you expect your profit to grow? (single answer)

2014
7%
Exceeding 30%
4%
5%
+20% to +30%
2015
2016
9%
7%
10%
19%
20%
18%
21%
+10% to +20%
+5% to +10%
25%
28% 30%
29%
+1% to +5%
0%
-1% to -5%
1%
-5% to -10%
6%
7%
8%
28%
10%
2%
2%
-10% to -20%
3%
2%
-20% to -30%
1%
Exceeding -30%
0%
5%
10%
15%
20%
25%
30%
35%
In the past 3 years, companies have reduced their expectations of profit levels exceeding 30%, from 7% in 2014, to 4% in 2016. Still,
the following interval of positive profit growth rates (+20% to +30%) has seen significant increases, but there were slight negative
fluctuation of the percentages in the interval +10% to +20% and +1% to +5%. Also noteworthy is the constant lowering of percentages
of the number of companies expecting 0% profit growth rate.
Page 15
How much you expect your number of employees

to grow in 2016? (single answer)
3%
Exceeding 30%
4%
+20% to +30%
10%
+10% to +20%
19%
+5% to +10%
35%
+1% to +5%
20%
0%
6%
-1% to -5%
2%
-5% to -10%
1%
-10% to -20%
-20% to -30%
Exceeding -30%
0%
5%
10%
15%
20%
25%
30%
35%
40%
20% of respondents expect no increase in the employees number in 2016. At the same time, 35% of companies say they expect their
staff to increase by +1% to +5% this year. Moreover, 36% of respondents expect the number of their employees to grow between +5%
and over 30%. These percentages lead us to believe that the projected expansion of businesses in 2016 commensurate with the
optimism of the economic growth.
Page 16

-1%
to
-5%
7%
18%
+1% +5% +10% +20%

Over
to
to
to
to
30%
+5% +10% +20% +30%
35% 22% 13% 2%
1%
6%
28%
42%
14%
4%
4%
2%
Services
5%
5%
40%
26%
11%
5%
5%
19%
27%
19%
21%
8%
3%
15%
18%
21%
24%
3%
3%
7%
3%
25%
38%
28%
6%
9%
29%
19%
5%
5%
5%
5%
10%
11%
53%
5%
11%
5%
5%
33%
34%
17%
28%
18%
Industry sector
Less -20% -10% -5%

than
to
to
to
-30% -30% -20% -10%
2%

3%
3%
6%

Power & Energy
14%
9%
Transportation
Telecom
8%
0%
8%
9%
27%
18%
Telecom (45%) and IT (32%) are the ones expecting major increases, between +10% and over 30%, in the number of
employees in 2016. However, all the industries foresee an increase in the number of employees of +1% to +10%, this being the
bracket where services, construction/real estate and transportation sectors show the highest percentages.
Page 17

Exceeding 30%
+20% to +30%
+10% to +20%
+5% to +10%
+1% to +5%
0%
-1% to -5%
-5% to -10%
-10% to -20%

Exceeding 30%
+20% to +30%
+10% to +20%
+5% to +10%
+1% to +5%
0%
-1% to -5%
-5% to -10%
-10% to -20%
1%
2%
13%
22%
35%
18%
7%
2%
0%
20%
40%
60%
Exceeding 30%
+20% to +30%
+10% to +20%
+5% to +10%
+1% to +5%
0%
-1% to -5%
-5% to -10%
-10% to -20%
3%
40%
Exceeding 30%
+20% to +30%
+10% to +20%
+5% to +10%
+1% to +5%
0%
-1% to -5%
-5% to -10%
-10% to -20%
14%
42%
28%
6%
0%
Exceeding 30%
+20% to +30%
+10% to +20%
+5% to +10%
+1% to +5%
0%
-1% to -5%
-5% to -10%
-10% to -20%
21%
19%
27%
19%
20%
2%
4%
4%
20%
40%
60%
7%
3%
3%
6%
3%
20%
40%
26%
40%
5%
5%
0.2
0.4
0.6

Exceeding 30%
+20% to +30%
+10% to +20%
+5% to +10%
+1% to +5%
0%
-1% to -5%
-5% to -10%
-10% to -20%
24%
21%
18%
15%
0%
5%
5%
11%
60%
3%
8%
0%
Services
60%
6%
28%
38%
25%
3%
0%
20%
40%
60%
Page 18

Exceeding 30%
8%
16%
+20% to +30%
13%
+10% to +20%
12%
+5% to +10%
13%
15%
12%
23%
31%
10%
4%
38%
31%
27%
13%
34%
31%
17%
40%
12%
100 M EUR+
50 - 100 M EUR
+1% to +5%
8% 6%
0%
12%
31%
12%
38%
23%
17%
40%
10 - 50 M EUR
13%
1 - 10 M EUR
Less than 1 M EUR
-1% to -5%
32%
-5% to -10%
16%
25%
28%
16%
50%
-10% to -20%
13%
67%
0%
10%
20%
30%
8%
12%
33%
40%
50%
60%
70%
80%
90%
100%

Quite interestingly, the companies which have revenue levels between 50-100 M EUR show very conservative prospects
regarding staff growth in 2016 or even expect important decreases in their number of employees. The companies with the most
positive prospects regarding the number of employees increases are those with revenue levels between 1-10 M EUR.
Page 19

to grow? (single answer)
2014
Exceeding 30%
2015
2016
3%
5%
4%
+20% to +30%
9%
+10% to +20%
10%
5%
+5% to +10%
14%
14%
19%
30%
+1% to +5%
0%
36%
35%
37%
20%
-1% to -5%
5%
-5% to -10%
3% 5%
2%
-10% to -20%
9%
6%
2%
1%
-20% to -30%
Exceeding -30%
0%
5%
10%
15%
20%
25%
30%
35%
40%
The 3-year perspective on companies expectations regarding the evolution of their number of employees show a steep
decrease of percentages for 0% staff number growth, from 37% in 2014 to 20% in 2015 and 2016. The corresponding increase
is seen in the interval +1% to +5% (30% in 2014, 35% in 2016) and in the interval +5% to +10% (5% in 2014, 19% in 2016).
Page 20
How much you expect your investments to grow in 2016?

(single answer)

5%
Exceeding 30%
6%
+20% to +30%
21%
+10% to +20%
24%
+5% to +10%
25%
+1% to +5%
15%
0%
-1% to -5%
1%
-5% to -10%
1%
-10% to -20%
1%
-20% to -30%
1%
Exceeding -30%
0%
5%
10%
15%
20%
25%
30%
25% of respondents say they have earmarked investment growth rates of +1% to +5% in 2016 compared to 17% in H2 2015,
followed by 45% who say will increase investments by +5% to +20% vs. 42% in H2 2015, and 11% who foresees their
investments going up between 20% and exceeding 30% in 2016, compared with 17% at in second half of last year.
Page 21

(single answer)
-1%
to
-5%
1%
15%
+1% +5% +10% +20%

Over
to
to
to
to
30%
+5% +10% +20% +30%
23% 27% 21% 5%
6%
2%
10%
24%
28%
26%
4%
4%
Services
25%
27%
20%
20%
5%
3%
8%
22%
22%
30%
8%
10%
7%
18%
33%
24%
6%
9%
16%
34%
22%
12%
10%
3%
28%
19%
9%
19%
5%
Transportation
11%
44%
22%
17%
8%
31%
8%
31%
Telecom
10%
10%
40%
20%
Industry sector
Less -20% -10% -5%

than
to
to
to
-30% -30% -20% -10%
1%
1%
2%
3%

Power & Energy
3%
10%
5%
5%
0%
6%
15%
7%
20%
The table shows that there are many industries which have earmarked significant investment growth rates for 2016. Moreover,
there are industries such as pharmaceuticals/healthcare, telecommunications, and IT which say their investments for 2016 will
go up by +20% to over 30%.
Page 22

(single answer)

Exceeding 30%
+20% to +30%
+10% to +20%
+5% to +10%
+1% to +5%
0%
-1% to -5%
-5% to -10%
-10% to -20%
-20% to -30%
Exceeding -30%
Exceeding 30%
+20% to +30%
+10% to +20%
+5% to +10%
+1% to +5%
0%
-1% to -5%
-5% to -10%
-10% to -20%
-20% to -30%
Exceeding -30%
21%
27%
23%
15%
1%
1%
1%
0%
20%
40%
10%
8%
30%
22%
22%
8%
0%
20%
40%
Exceeding 30%
+20% to +30%
+10% to +20%
+5% to +10%
+1% to +5%
0%
-1% to -5%
-5% to -10%
-10% to -20%
-20% to -30%
Exceeding -30%
4%
4%
26%
28%
24%
10%
2%
2%
0%
60%
Exceeding 30%
+20% to +30%
+10% to +20%
+5% to +10%
+1% to +5%
0%
-1% to -5%
-5% to -10%
-10% to -20%
-20% to -30%
Exceeding -30%
Services
6%
5%
20%
40%
60%

Exceeding 30%
+20% to +30%
+10% to +20%
+5% to +10%
+1% to +5%
0%
-1% to -5%
-5% to -10%
-10% to -20%
-20% to -30%
Exceeding -30%
60%
7%
3%
40%
0%
Exceeding 30%
+20% to +30%
+10% to +20%
+5% to +10%
+1% to +5%
0%
-1% to -5%
-5% to -10%
-10% to -20%
-20% to -30%
Exceeding -30%
24%
33%
18%
20%
20%
20%
27%
25%
20%
40%
60%
9%
6%
0%
3%
5%
60%
3%
10%
12%
22%
34%
16%
3%
0%
20%
40%
60%
Page 23

(single answer)
Exceeding 30%
13% 4%
+20% to +30%
9% 4%
+10% to +20%
16%
+5% to +10%
26%
26%
11%
31%
52%
11%
12% 5%
+1% to +5%
26%
28%
37%
25%
14%
9%
8%
38%
32%
20%
33%
10%
100 M EUR+
50 - 100 M EUR
0%
10% 7%
-1% to -5%
32%
36%
33%
-5% to -10%
34%
10 - 50 M EUR
1 - 10 M EUR
33%
67%
-10% to -20%
15%
Less than 1 M EUR
33%
33%
33%
34%
-20% to -30%
Exceeding -30%
20%
0%
40%
20%
40%
40%
60%
80%
100%
According to the findings of the current edition of the report, respondents from companies with revenue levels of 1-10 M EUR
are quite positive and expect their investments to go up in 2016, followed by companies with revenue levels of 10-50 M EUR.
The most reserved outlook regarding investments is shown by companies with revenue levels of 50-100 M EUR.
Page 24
How much you expect your investments to grow? (single answer)

2015
Exceeding 30%
10%
5%
+20% to +30%
2016
6%
7%
19%
+10% to +20%
21%
23%
24%
+5% to +10%
17%
+1% to +5%
0%
15%
25%
19%
2%
-1% to -5%
1%
-5% to -10%
1%
-10% to -20%
1%
-20% to -30%
1%
Exceeding -30%
1%
0%
5%
10%
15%
20%
25%
30%
The chart shows that only 15% of companies expect no increase in investments in 2016 compared to 19% in the previous year.
Also, the most important increase of +8% is seen in the number of companies which expect their investments to grow by +1%
to +5% in 2016, whilst there is a significant decrease in the number of companies which expect investments to grow by +30%.
Page 25
How much you expect the salary level in your company

2%
Exceeding 20%
10%
+10% la +20%
31%
+5% la +10%
44%
+1% la +5%
13%
0%
-1% la -5%
-5% la -10%
-10% la -20%
Exceeding -20%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%

In 2016, most companies (44%) expect salaries to go up between +1% to +5%, followed by 31% of companies which expect
salaries to go up by +5% to +10% and 12% of companies which expect higher increases of +10% to more than 20%. Still 13%
of companies expect no changes in the salary level in 2016.
Page 26

Less
than
-20%
10%
+1%
to
+5%
42%
8%
48%
26%
16%
2%
Services
21%
34%
32%
10%
3%
11%
41%
35%
11%
2%
6%
52%
33%
9%
19%
44%
31%
6%
Power & Energy
48%
43%
Transportation
5%
37%
17%
Telecom
9%
Industry sector
-10%
to
-20%
-5%
to
-10%
-1%
to
-5%
0%
+5%
to
+10%
36%
+10%
to
+20%
12%
Over
20%
5%
4%
48%
5%
5%
42%
25%
16%
64%
18%
9%
No less than 18% of companies in retail & wholesale trade expect major increases in salary level of +10% to +20%. However,
all the industries foresee an increase in the salary level of +1% to +5%, the interval where telecommunications, food &
beverages / agriculture, and retail & wholesale trade industry sectors show the highest percentages.
Page 27

Exceeding 20%
Exceeding 20%
+10% to +20%
+1% to +5%
40%
60%
Exceeding 20%
2%
+10% to +20%
+1% to +5%
60%
20%
60%
21%
0%
20%
40%
60%
31%
+1% to +5%
44%
0%
6%
0%
6%
+5% to +10%
52%
0%
40%
34%
+10% to +20%
33%
+1% to +5%
11%
0%
40%
9%
+5% to +10%
41%
+1% to +5%
Exceeding 20%
+10% to +20%
35%
0%
20%
Exceeding 20%
+5% to +10%
32%
0%
8%
11%
10%
+5% to +10%
48%
0%
3%
+10% to +20%
26%
0%
10%
20%
16%
+1% to +5%
42%
0%
Exceeding 20%
+5% to +10%
36%
0%
2%
+10% to +20%
12%
+5% to +10%
Services
50%
100%
19%
0%
20%
40%
60%
Page 28

Exceeding 20%
+10% to +20%
14%
14%
10% 7%
43%
21%
29%
33%
29%
100 M EUR+
50 - 100 M EUR
+5% to +10%
11% 6%
27%
41%
15%
10 - 50 M EUR
1 - 10 M EUR
+1% to +5%
14%
0%
14%
0%
10%
18%
20%
31%
34%
25%
40%
11%
29%
60%
Less than 1 M EUR
14%
80%
100%

Depending on the industry sector there are SMEs of 1-10 M EUR that seems to be on the optimistic side with high percentages
of expected salary growth rates, while the other companies are more conservative regarding the salary growth rates in 2016.
Page 29

to grow? (single answer)
2014
Exceeding 20%
2%
2%
+10% la +20%
6%
2015
2016
10%
19%
+5% la +10%
30%
31%
+1% la +5%
44%
0%
11%
13%
-1% la -5%
49%
60%
19%
2%
-5% la -10%
1%
-10% la -20%
Exceeding -20%
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
Besides the important decrease in the number of companies which expected no salary changes, from 19% in 2014 to 13% in 2015,
there is a even more significant decrease in the number of companies expecting only a 1-5% salary growth rate, from 60% in 2014 to
44% in 2016. The corresponding increase is shown in the number of companies earmarking salary increases of +5% to over 20% both
in 2015 and 2016.
Page 30
How confident do you feel regarding the growth of

your industry, for the next 12 months? (single answer)
2014
2015
2016
7%
15%
17%
Very confident
30%
34%
Somewhat confident
42%
49%
43%
Slightly confident
29%
14%
7%
12%
0%
10%
20%
30%
40%
50%
60%
The level of confidence in industry growth consolidates in 2016, with 42% of somewhat confident responses vs 34% in 2015,
and 30% in 2014. The percentage of very confident responses increases to 17% in 2016, from 15% in 2015 and 7% in 2014.
At the same time, there is a 5% increase in the not at all confident responses, from 7% in 2015 to 12% in 2016.
Page 31

your industry, for the next 12 months? (single answer)
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
19%
23%
15%
37%
36%
3%
10%
23%
11%
10%
17%
43%
19%
42%
30%
Somewhat confident
16%
50%
42%
51%
42%
17%
17%
36%
41%
42%
Slightly confident
33%
17%
6%
8%
Very confident
14%
18%
50%
37%
20%
27%
40%
40%
27%
13%
50%
12%
43%
50%
50%
38%
17%
36%
25%
14%
11%
33%
37%
18%
13%
12%
Total Respondents 399

(Skipped this question: 22)
In 2016, the top 3 industries not at all confident regarding the sectors growth potential are: power & energy (38%), telecom
(18%), and chemicals (17%), while the top 3 very confident industries are: R&D / New technology (50%), IT (36%), and
tourism (27%).
Page 32

your company for the next 12 months? (single answer)
2014
2015
2016
40%
32%
Very confident
35%
37%
19%
Somewhat confident
42%
23%
45%
Slightly confident
20%
3%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
The number of respondents that are slightly confident in the growth of their company drop to 20% in 2016, from 45% in 2015,
and 23% in 2014. At the same time, the percentage of those somewhat confident goes up from 19% in 2015 to 42% currently,
and the percentage of very confident responses goes up from 32% in 2015 to 25% currently.
Page 33

your company for the next 12 months? (single answer)
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
29%
50%
36%
57%
52%
34%
8%
8%
33%
39%
21%
10%
Somewhat confident
19%
42%
50%
Very confident
35%
33%
17%
41%
39%
33%
20%
28%
50%
18%
40%
34%
35%
30%
40%
41%
20%
13%
10%
13%
34%
53%
33%
16%
3%
Slightly confident
4%
14%
50%
8%
33%
14%
61%
33%
17%
4%
24%
21%

In 2016, the top 3 industries not at all confident regarding the companys growth potential are: power & energy (14%), tourism
(13%), and telecom (10%), while the top 3 very confident industries are: food & beverage / agriculture (57%), chemicals
(50%), publishing & printing (50%) and R&D / New technology (50%).
Page 34
Please select the main strength of your competition in the

local market (Romania). (single answer)
2014
45%
2016
41%
40%
37%
33%
35%
30%
2015
29%
30%
26%
25%
20%
17%
14%
15%
14%
13%
9% 9%
10%
7%
5% 6%
5%
7%
3%
0%
Low cost
Strong brand
awareness (trust)
Partnerships
Distribution
channels
R&D
Other
Low cost remains the main strength of the respondents competition in the local market despite decreasing from 41% in 2015 to
33% in 2016. Brand awareness (trust) decreases from 37% in 2014, to 29% in 2015 and up to 30% in 2016, and is now on the
second place. A spectacular increase is seen in Partnerships up to 17% in 2016 from only 9% in 2014 and 2015.
Page 35
Please select the main strength of your competition in the

local market (Romania). (single answer)
Distribution channels
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
42%
16%
3%
26%
17%
8%
20%
3%
20%
20%
52%
32%
7%
17%
31%
Low cost
30%
17%
3%
25%
33%
17%
3%
13%
19%
5%
17%
R&D
33%
50%
17%
25%
5%
33%
Strong brand awareness (trust)
50%
17%
9%
9%
22%
8%
38%
33%
37%
33%
33%
Partnerships
42%
28%
46%
33%
27%
3%
17%
20%
37%
27%
28%
6%
18%
20%
22%
43%
28%
3%
12%
44%
6%
36%
6%

Low cost is still seen as a the main strength of the competition across most of the industry sectors, except for strong brand
awareness in pharmaceuticals / healthcare, publishing & printing, services, and tourism industries, as it is partnerships for the
power & energy sector and R&D in case of new technology sector.
Page 36
To what extent do you expect your customers' demand

to change in the next 12 months? (single answer)
3%
Increase dramatically
62%
Somewhat increase
30%
Stay the same
5%
Somewhat decrease
Decrease dramatically

0%
0%
10%
20%
30%
40%
50%
60%
70%
A remarkable 62% of respondents expect their customers demand to somewhat increase in 2016 compared to only 3%
which expect it to increase dramatically. Just 5% believe customers demand will somewhat decrease, while 30% expect it
to stay the same.
Page 37
To what extent do you expect your customers' demand

to change in the next 12 months? (single answer)
Increase dramatically
Somewhat increase
Transportation
Stay the same
20%
64%
Services 3%
58%
Retail & Wholesale Trade 2%
60%
R&D / New Technology
17%
Publishing & Printing
17%
27%
28%
8% 3%
32%
6%
16%
50%
33%
57%
17%
33%
42%
Information Technology 3%
5%
41%
75%
4%
17%
60%
Food & Beverages / Agriculture 3%
42%
64%
10%
20%
30%
3%
39%
58%
Other 3%
3%
27%
61%
Chemicals
5%
33%
67%
0%
9%
67%
5%

33%
80%
Telecommunication / Media
Decrease dramatically
67%
Tourism
Power / Energy / Mining
Somewhat decrease
21%
40%
50%
60%
70%
80%
12%
90%
100%
There is only one industry sector which expect their customers demand to decrease dramatically in 2016, namely services
industry sector. The industries that have the highest percentage of respondents who say their customers demand will increase
dramatically in 2016 are pharmaceuticals / healthcare and R&D / New technology industries.
Page 38
In your opinion, which is the most important obstacle entrepreneurs

and managers have to overcome to develop the business? (multiple answers)
54%
Bureaucracy
53%
Uncertainty
51%
Lack of political stability and public policy vision
49%
Taxation level
37%
The state of the national economy
30%
Lack of entrepreneurial education
25%
Difficult access to finance
15%
The state of the local economy

0%
10%
20%
30%
40%
50%
60%
According to the respondents to the current edition of the survey, the most important obstacle entrepreneurs and managers
have to overcome to develop the business is bureaucracy (54%) and uncertainty (53%), followed by lack of political stability
and public policy vision (51%), and taxation level (49%).
Page 39
On a scale from 1 to 5, please indicate to what extend the following

changes in legislation will impact your business in 2016?
(1 - lowest impact, 5 - highest impact) (one answer for each option)
Question 13 By intensity of impact

Lowest impact (1)
(2)
New developments in the international taxation (BEPS,

FATCA, CRS)
(3)
Highest impact (5)
25%
Decrease of tax on dividends rate
26%
19%
Relaxation of taxation regime for micro-companies
23%
34%
23%
42%
Change of the tax system for freelancers (PFA/PFI)
20%
18%
18%
25%
11% 4%
23%
20%
52%
Reduction to 20% of VAT
Total Respondens: 348

(Skipped this question: 73
(4)
25%
14%
14%
23%
Reinvested profit tax exemption
17%
19%
27%
25%
Other
17%
17%
32%
17%
0%
20%
40%
60%
12%
80%
58%
6%
10% 6%
7% 55%
12%
64%
17%
100%
Respondents say that the following changes in legislation will have the highest impact & high impact in their businesses going
forward: reinvested profit tax exemption (64%), decrease of tax on dividends (58%), and reduction to 20% of VAT (55%).
Page 40
Please name other legislative changes for your business operation

you expect in 2016?
Legislative changes mentioned
by respondents
Top 10 legislative changes (%)
No. of
answers
Decrease of salary taxes
33
Less bureaucracy
5%
Fewer taxes
28
Public acquisition law
5%
Labor legislation
24
Corporate income tax decrease
18
Excises legislation
17
Other
Laws to support SMEs
7%
Simplified access to EU funds
9%
16
Other
9%
Simplified access to EU funds
16
Excises legislation
9%
Laws to support SMEs
14
Corporate income tax decrease
Public acquisition law
11
Less bureaucracy
11
Energy laws
Tax exemption for the reinvested profit
Insolvency law
10%
Labour legislation
13%
Fewer taxes
15%
Decrease of salary taxes
18%
0%
5%
10%
15%
20%

(Skipped this question: 212
The number one legislative changes for their business operation that respondents expect in 2015 is the New Fiscal Code (20
responses), followed by salary tax decrease (18 responses), and amended Labor Laws (17 responses).
Page 41
On a scale from 1 to 5, please rate the importance of innovation for the

successful performance of your company? (1 - lowest impact, 5 - highest impact)
(single answer)
35%
Very high impact
39%
High impact
18%
Medium impact
7%
Low impact
1%
No impact

0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
Innovation is seen as having a very high impact & high impact in the successful performance of the company by 74% of
respondents in 2016. Only of companies see innovation as having a medium impact, and even fewer (7%) consider
innovation of low impact, while just 1% say innovation is of no impact on their business agenda.
Page 42
On a scale from 1 to 5, please rate the importance of innovation for the

successful performance of your company? (1 - lowest impact, 5 - highest impact)
(single answer)

Highest impact (5)
Transportation
(4)
27%
Tourism
(3)
20%
34%
43%
23%
7%
25%
14%
Services
Lowest impact (1)

40%
33%
(2)
40%
26%
20%
42%
32%
67%
33%
52%
33%
38%

19%
Chemicals
18%
Other
10%
12%
36%
19%
55%
20%
40%
50%
60%
18%
10%
70%
80%
4%
12%
9%
37%
30%
6%
14%
50%
43%
0%
15%
44%
46%
9%
60%
6%
40%
20%
8%
21%
60%
14%
26%
30%
8%
29%
37%
6%
3% 7%
90%
100%
Total Respondents: 348

There are very few industry sectors where innovation is seen as having the lowest impact for successful performance. These
are: transportation (7%) and services (6%). The industries where innovation has the highest impact are pharmaceuticals /
healthcare (67%), R&D / New technology (60%), and IT (52%).
Page 43
What are the main drivers for innovation in your company?

(multiple answers)

66%
Efficiency
62%
Performance
51%
People
48%
Competition
47%
Cost
34%
Change
29%
Market share
23%
Increased production
13%
Environment preservation
10%
Technical uncertainty
6%
Fewer resources
1%
Other
0%
10%
20%
30%
40%
50%
60%
70%

The most important driver for innovation is efficiency (66%), followed by performance (62%), people (51%), the need to beat
competition (48%) and cost (47%). Unfortunately, the lowest percentages are recorded by: environment preservation (13%),
technical uncertainty (10%), and diminishing resources (6%).
Page 44
What are the main drivers for innovation in your company?

(multiple answers)

Technical uncertainty
Change
Cost
Increased production
Market share
Efficiency
Competition
Performance
Fewer resources
Environment preservation
People
All of the above
Transportation
Tourism
Services
Chemicals
Other
5% 5%
14%
7%
8%
18%
14%
13%
3%
13%
7%
10%
10%
13%
15%
12%
18%
2% 3% 10%
3% 10%
7%
7%
7%
16%
13%
17%
7%
13%
4% 7%
11%
5%
8%
19%
8%
20%
2%1% 15%
2% 9%
13%
1% 8%
19%
14%
18%
2%
14%
16%
5% 5%
16%
11%
21%
5%
21%
15%
7%
14%
14%
14%
36%
3% 9%
10%
6%
10%
17%
16%
14%
7%
8%
8%
16%
4% 4%
16%
20%
12%
4% 8%
8%
2%
12%
11% 2% 5%
19%
12%
18%
3% 1% 15%
2% 8%
12%
12%
7%
15%
12%
16%
2%4%
9% 1%
3% 8%
15%
9%
9%
16%
11%
10% 2% 3%
14%
5% 7%
14%
4% 5%
17%
14%
17%
1% 4%
12%
13%
11%
9%
4%
18%
7%
13%
2% 5%
18%
1% 9%
11% 2% 9%
16%
13%
17%
1%5%
16%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
The most important driver for innovation in publishing & printing sector is lack of people (36%), in R&D / New technology is
performance (21%), in services sector is also performance (20%), and in retail & wholesale trade is efficiency (19%).
Page 45
Which of the following best describe your company's primary strategy

for financing its investments in the past 12 months? (single answer)
2014
2015
2016
Our company used intercompany

loans, own resources, or reinvested
profit to finance its investments
Our company used intercompany

loans, own resources, or reinvested
profit to finance its investments
34%
18%
43%
54%
Our company used bank loans to

finance its investments
No investments
2016
42%
34%
43%
Our company used bank loans to

finance its investments
34%
No investments
5%
12%
12%
Our company used share capital
increase to finance its investments
Our company used venture capital
to finance its investments
10%
23%
6%
2%
12%
3%
Our company used share capital

increase to finance its investments
6%
Our company used venture capital

to finance its investments
3%
Other
2%
Other
2%
0% 10% 20% 30% 40% 50% 60%
0% 10% 20% 30% 40% 50%
In 2015 companies used mainly intercompany loans, own resources, or reinvested profit to finance investments (43%),
followed by bank loans (34%). Compared to 2014, there is a 9% increase in intercompany loans and own resources and a 10%
decrease in bank loans.
Page 46
Which of the following best describe your company's primary strategy

for financing its investments in the past 12 months? (single answer)
Our company used bank loans to finance its investments
Our company used intercompany loans, own resources, or reinvested profit to finance its investments
Our company used share capital increase to finance its investments
Our company used venture capital to finance its investments
No investments
Other
Transportation
Tourism
Services
Chemicals
Other
33%
47%
17%
7%
67%
29%
31%
35%
20%
20%
26%
33%
36%
37%
39%
38%
71%
23%
9%
20%
48%
20%
5% 5%
50%
52%
45%
43%
50%
18%
7% 3%
43%
20%
6%
21%
80%
20%
64%
10%
31%
5% 2%
37%
27%
0%
13%
16%
30%
40%
50%
60%
70%
80%
20%
16%
17%
3% 3% 3% 3%
11% 3%1% 3%
7% 4% 7%
4% 8%
9%
9%
17%
3%
90%
100%
In 2015 companies from all industries used mainly intercompany loans, own resources, or reinvested profit to finance investments,
followed by bank loans. Financing by share capital increase appear in the chart only at companies from publishing & printing (20%)
and pharmaceuticals / healthcare (17%). No investments are shown mainly in services (31%) and trade (21%) industry sectors.
Page 47
Which the following best describes your company's preferred strategy

for financing of investments for the following 12 months? (single answer)
2014
2015
2016
2016
39%
Intercompany loans, own

resources, or reinvested profit
13%
46%
49%
53%
Bank loans

resources, or reinvested profit
46%
Bank loans
34%
34%
No investments
No investments
4%
10%
10%
12%
Share capital increase
21%
6%
6%
Venture capital
9%
Venture capital
2%
Other
2%
2%
Other
2%
0% 10% 20% 30% 40% 50% 60%
0% 10% 20% 30% 40% 50%
Intercompany loans, own resources or reinvested profit will remain companies preferred strategy to finance investments in
2016, according to 46% of respondents, up from 13% in 2015. The second preferred financing source will be bank loans (34%),
down from 53% in 2015.
Page 48
Which the following best describes your company's preferred strategy

for financing of investments for the following 12 months? (single answer)
Transportation
26%
Tourism
67%
17%
42%
34%
20%
20%
40%
7%
40%
6%
50%
39%
38%
Food & Beverages /
Chemicals
20%
14%
40%
4%4%
60%
80%
No investments
4%
4%
27%
46%
Venture capital
4% 1%3% 1%
64%
25%
0%
9% 6%3%
32%
64%
Other
20%
33%
53%
32%
20%

resources, or reinvested
profit
22%
43%
50%
6%
12% 5%
20%
39%
17%
22%
60%
33%
Bank loans
10% 3%
36%
8%
71%
25%

33%
29%
Services
7%
Other
9%
18%
3%
100%
Intercompany loans, own resources or reinvested profit will remain companies preferred strategy to finance investments in
2016 across all industry sectors as well. The second preferred financing source will be bank loans, while share capital increase
will be used by pharma companies (33%), and venture capital will be used by publishing & printing companies (20%).
Page 49
Which of the following factors best describe the reaction of your

company to the business environment in the past year? (single answer)
2014
2015
2016
32%
Productivity increase
27%
22%
21%
Cost reduction
30%
17%
New products
19%
15%
14%
16%
Restructure of the organization

5%
6%
Talent acquisition
2%
1%
Attraction of EU funds
4%
5%
2%
4%
Mergers & Acquisitions

Reduced market coverage
2%
2%
1%
Reduced capital investment
5%
Other
0%
5%
10%
15%
20%
25%
30%
35%
The most important shift in responses is that cost reduction ceases to be the reaction of the companies to the changes of the
business environment (21% in 2016 vs. 30% in 2015). The first position is occupied now by the productivity increase (27% in
2016 and 2015 vs. 32% in 2014), followed by new products (19% in 2016 and 2015 vs. 17% in 2014). Talent acquisition and
access to EU funds show also important percentage increases in the current edition of the survey.
Page 50
Which of the following factors best describe the reaction of your

company to the business environment in the past year? (single answer)
Transportation
Tourism
20%
9%
7%
8%
16%
19%
16%
22%
26%
40%
33%
6%
17%
9%
Industry / Manufacturing 4%
7%
17%
17%
25%
36%
Chemicals
Other 4%
0%
18%
4%
New products
6%
20%
4%
16%
27%
25%
7%
Productivity increase
Reduced capital investment
17%
12%
1% 1% 20%
18%
28%
27%
16%
25%
4% 12%
Cost reduction
20%
18%
14%
46%
2% 5% 12% 3%
Attraction of EU funds
20%
32%
7%
3%
Mergers & Acquisitions
37%
22%
25%
20%
17%
9% 3% 12%
15%
20%
11%
33%
14%
6%
20%
6%
8% 8%
14%
26%
20%

3%
40%
14%
7%
42%
43%
9%
20%
25%
Services
47%
3%
18%
Reduced market coverage

Restructure of the organization
Talent acquisition
Other
12%
9%
14%
10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Productivity increase was the most important reaction of companies transportation to the business environment in the past year
(47%), while companies in chemicals focused on cost reduction (46%), companies in R&D / New technology focused on
attraction of EU funds (40%) and companies on publishing & printing focused on new products (40%).
Page 51
In case of stagnation/decline in your current markets what will be the

step/s your company will pursue in the next 12 months? (multiple answers)
2014
2015
2016
56%
Stay on the market until is stable again in order to secure

it and increase the trust level
65%
70%
56%
Transform the market through innovative approaches
47%
47%
10%
12%
15%
Grow on the market through M&A (Mergers &

Acquisitions)
10%
8%
10%
Seek external funding to secure our position on the

market
5%
2%
7%
Leave the market and seek new ones
Other
1%
2%
0%
10%
20%
30%
40%
50%
60%
70%
80%
In case of stagnation / decline of the market 70% of companies will stay on the market until is stable again in order to secure it
and increase the trust level in 2016 compared to 65% in 2015 and 56% in 2014. In 2016, 47% say will transform the market
through innovative approaches and 15% say that will grow on the market through M&A.
Page 52
In case of stagnation/decline in your current markets what will be the

step/s your company will pursue in the next 12 months? (multiple answers)
Transportation
52%
Tourism
36%
61%
2%
49%
28%
3%
33%
49%
34%
38%
19%
2%
Chemicals
8%
34%
7%
30%
0%
20%
9% 3%
28%
10%
40%
26%
60%
15%
Seek external funding to secure
our position on the market
16% 2%
60%
43%
Transform the market through

innovative approaches
Grow on the market through
M&A (Mergers & Acquisitions)
7% 4%
41%
6%
Leave the market and seek new

ones
16%
33%
33%
52%
Other
12%
20%
6%
Stay on the market until is stable

again in order to secure it and
increase the trust level
27%
34%
42%
10% 8%
18%
12%
42%
9% 2%
29%
27%
11%
33%
4%
38%
8%
22%
54%
4%
31%
67%
Services

8%
Other
6% 6%
10% 9% 2%
80%
100%
While companies from all industries will stay on the market until is stable again in order to secure it and increase the trust level,
the top 3 ones that are ready to transform the market through innovative approaches are: food & beverages (41%),
transportation (36%), and pharmaceuticals / healthcare (34%).
Page 53
Which the following actions is your company

taking to increase sales? (multiple answers)
2014
2015
2016
Introducing new products and/ or services for existing

client and to attract new clients
66%
24%
Increase investment in marketing and sales
29%
31%
15%
73%
41%
41%
32%
Enter new geographic markets for existing

products/services
Opening new distribution channels/ reorganizing
distribution to use multiple channels
Adapting existing product/service for new geographic
markets
80%
38%
40%
38%
22%
23%
10%
10%
14%
5% 9%
11%
7%
7%
9%
Cutting prices
Increase prices
Merging with and/or acquiring competitors to increase
market share
Other
2%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
73% of the companies are introducing new products or services for existing clients and attracted new clients in order to
increase sales in 2015, 41% are increasing the investments in marketing and sales, 40% are entering new geographical
markets, and 38% are opening new distribution channels. Only 14% are cutting prices and 11% are increasing prices.
Page 54
Which of the following actions is your company taking to

increase sales in 2016? (multiple answers)
Transportation
9%
Tourism
8%
30%
21%
21%
26%
Services
15%
35%
18%
28%
28%
14%
15%
19%
3%
20%
5% 4% 4%
24%
12%
23%
27%
15%
19%
30%
13%
16%
Chemicals
18%
Other
24%
30%
30%
20%
5%
23%
36%
15%
0%
17%
5%
40%
16%
5% 10%
13%
7%
14% 4% 2% 2%
12%
12% 4% 3% 7%
18%
7% 10% 5%
5% 12% 2% 7% 5%
11%
60%
8% 7%
13%
13%
10% 7%
18%
3% 7% 4% 2%
8%
20%
20%
14%
7% 7%
7%
27%
16%
33%
4% 9% 4%
15%
23%
23%
18%
25%
18%
31%
15%
7%
29%
10%
8%
26%
18%
12%
18%
16%
80%
4% 7%
4% 6%
Enter new geographic markets for existing

products/services
Introducing new products and/ or services for
existing client and to attract new clients
Increase investment in marketing and sales
Adapting existing product/service for new
geographic markets
Opening new distribution channels/ reorganizing
distribution to use multiple channels
Merging with and/or acquiring competitors to
increase market share
Increase prices
Cutting prices
Other
100%
Companies from all industries are planning to enter new geographic markets for existing products/services and also to
introduce new products and/or services for existing clients and to attract new clients. It is noteworthy that 10% of companies
from transportation sector are cutting prices, while 10% of companies in food & beverages are increasing prices.
Page 55
Mention briefly the main challenge that you are noticing now in your
industry/field of activity? (number of answers)
46
Pressure on margins
42
Labor market and demographics
27
Low competitiveness
19
19
Political instability
Corruption
17
Business development
14
14
14
14
Sustainable growth
Poor infrastructure
Harsh competition
Customer satisfaction
11
11
11
Managing financial risks

Legal framework uncertainty
Cost cutting
Cash flow management

0
10
15
20
25
30
35
40
45
50

There are 3 main challenges respondent companies notice in their industry/field of activity for 2016 are the following: pressure
on margins (46 responses), difficult labor market and demographic conditions (42 responses), and low competitiveness of the
Romanian economy (27 responses).
Page 56
Mention briefly the main opportunity that you are noticing now in your
industry/field of activity? (number of answers)
48
Domestic market growth potential
28
Decreased VAT
24
Partnerships and alliances
21
20
20
Growing demand for IT services

Technological advancements
More entrepreneurial businesses
16
Entering new markets
13
12
11
11
10
10
10
Changing business models

Market consolidation
Social economy
Disruptive innovation (IoT)
Energy infrastructure
e-commerce
Access to EU funds
6
5
Low costs
Cloud technology
10
20
30
40
50
60
The 3 main opportunities respondent companies notice in their industry/field of activity for 2016 are the following: domestic
market growth potential (48 responses), decreased VAT rate (28 responses), partnerships & alliances (24 responses).
Page 57
Mention briefly the main potential for investment /development that

you are looking at for the next 1-3 years in your industry.
21%
Increase efficiency
17%
Expand market with new customer segments
16%
Expand market in new countries
15%
Expand operations
14%
Change/adapt the business model

Expand market with new regions (in Romania)
8%
Secure sustainability
8%
2%
Other

0%
5%
10%
15%
20%
25%
According to the respondents to the survey, the main potential for investment in 2016 is triggered by the need to increase efficiency
(21% of companies), followed by the need to expand the market with new customer segments (17%), and expand the market in new
countries (16%). The need to secure sustainability is mentioned as an area for future development only by 8% of companies.
Page 58
Demographics
The results of this survey reflect the
responses received to our
questionnaire in the period between
27 January and 12 February 2016,
from 421 top executives of major
companies operating in Romania.
Demographics
Romanian company (yes/no)
County where the company is based

Bucureti
40%
7%
Cluj
6%
Ilfov
Braov
5%
Timi
40%
Yes
No
60%
4%
Mure
3%
Arge
3%
Iai
3%
Bacu
2%
Prahova
2%
Sibiu
2%
Bihor
2%
Arad
2%
Constana
1%
18%
Other
0%
Page 60
10%
20%
30%
40%
50%
Demographics
Company revenue level (for 2015)
Industry sector
21%
13%

Services
9%
9%
Food & Beverages /
8%
10%
50 - 100 M EUR
8%
5%
4%
Transportation
28%
10 - 50 M EUR
3%
Tourism
Pharmaceuticals /
3%
Chemicals
3%
3%
35%
1 - 10 M EUR
2%
1%
14%
Less than 1 M EUR
8%
Other
0%
Page 61
13%
100 M EUR+
10%
20%
30%
0%
10%
20%
30%
40%
Demographics
Respondents job title
Entity type
CEO/President/Managing
director
82%
Privately owned
31%
16%
Manager
15%
Head of department
9%
CFO/Treasurer/Controller
10%
Publicly listed
6%
SVP/VP/Director
5%
Board member
Private Equity portfolio
company
6%
Government/State-owned
enterprise
2%
Other C-level executive
4%
Head of business unit
4%
CIO/Technology director
4%
6%
Other
0%
Page 62
25%
50%
75% 100%
0%
10%
20%
30%
40%
The project team
Constantin Mgdlina
Elena Badea
Senior Knowledge Management

Branding, Marketing & Communication
EY Romania
Associate Director
Branding, Marketing & Communication
EY Romania
constantin.magdalina@ro.ey.com
elena.badea@ro.ey.com
We would like to thank all who have responded to our questionnaire and thus made
possible the existence of this mid-year edition of the survey. We have been very
glad to see the increasing interest in this survey reflected in the increasing number
of responses received. A special thank you goes to Diana Dumitracu, Executive
Director of doingbusiness.ro for her significant and always prompt support in the
preparation of this survey.
This is a quantitative survey/analysis which aims at showcasing the trends of the surveyed topic and advance working hypotheses
which might be subsequently validated by extensive market research conducted on representative samples. This written material is
accurate to the best of our knowledge at the time of issue. It is, however, meant as a general guide and comes with the
recommendation that professional advice be sought before any action is taken.
Page 63
EY | Assurance | Tax | Transactions | Advisory

About EY
EY is a global leader in assurance, tax, transaction and
advisory services. The insights and quality services we
deliver help build trust and confidence in the capital
markets and in economies the world over. We develop
outstanding leaders who team to deliver on our promises
to all of our stakeholders. In so doing, we play a critical
role in building a better working world for our people, for
our clients and for our communities.
2016 EYGM Limited.
All Rights Reserved.
ey.com

EY - A Vision For Growth - EN 2016

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A vision for growth

Business outlook barometer

What is A vision for growth?

A vision for growth

Which is your confidence level in the current economic

Not at all confident

Total responses: 421

How much you expect your turnover to grow in 2016?

Question 3 Overall responses

Total responses: 411

How much you expect your turnover to grow in 2016?

Question 3 By industry sector

Less -20% -10% -5%

Retail & Wholesale Trade

Information Technology (IT)

Food & Beverages / Agriculture

+1% +5% +10% +20%

How much you expect your turnover to grow in 2016?

Question 3 By industry sector

Food & Beverages / Agriculture

Retail & Wholesale Trade

Not shown intervals received zero answers.

Construction / Real Estate

How much you expect your turnover to grow in 2016?

Not shown intervals received zero answers.

Total responses: 411

How much you expect your turnover to grow? (single answer)

How much you expect your profit to grow in 2016?

Question 4 Overall responses

Total responses: 411

How much you expect your profit to grow in 2016?

Question 4 By industry sector

+1% +5% +10% +20%

Information Technology (IT)

Food & Beverages / Agriculture

Less -20% -10% -5%

Retail & Wholesale Trade

Construction / Real Estate

How much you expect your profit to grow in 2016?

Question 4 By industry sector

Food & Beverages / Agriculture

Retail & Wholesale Trade

Not shown intervals received zero answers.

Construction / Real Estate

How much you expect your profit to grow in 2016?

Not shown intervals received zero answers.

Total responses: 411

How much you expect your profit to grow? (single answer)

How much you expect your number of employees

How much you expect your number of employees

+1% +5% +10% +20%

Retail & Wholesale Trade

Less -20% -10% -5%

Information Technology (IT)

Construction / Real Estate

How much you expect your number of employees

Not shown intervals received zero answers.

Retail & Wholesale Trade

Construction / Real Estate

Food & Beverages / Agriculture

How much you expect your number of employees

Not shown intervals received zero answers.

Total responses: 411