PwC’s COVID-19 CFO Pulse Survey

What finance leaders in Denmark are focused on: Round 3, May 2020

8 out 10 CFO’s expect a decrease in revenue

As a result of COVID-19, 83 % of the Danish CFO’s now expect a decrease in revenue. 49 % expect a decrease in revenue of more than 10 %.

More CFOs are implementing cost containment

In order to mitigate the financial effects of COVID-19, 82 % of the CFOs are now implementing cost containment. Two weeks ago the number was 73 %.

Danish CFO are much more likely to make remote work permanent

When transitioning to on-site work, 72 % of the Danish CFOs are planning to make remote work permanent. Overall the number is 49 %.

Danish CFOs are in crisis mode

Finance leaders around the world are preparing for a recessionary environment, forcing many to make tough decisions around costs and staffing. Discover how finance leaders in Denmark view a COVID-19 world — and the actions they are taking to respond.

Previous survey results

49 % of the Danish CFOs and 57 % overall expect a decrease in revenue of more than 10 %

Question: What impact do you expect on your company’s revenue and/or profits this year as a result of COVID-19?

Increase revenue and/or profits
%
We do not expect any impact to revenue and/or profits
%
Decrease < 10%
%
Decrease 10% to 24.9%
%
Decrease 25% to 50%
%
Decrease > 50%
%
Decrease but range unknown
%
It is difficult to assess at this point
%
Source: PwC COVID-19 CFO Pulse Survey, 4 May 2020
Base: 39

Among Danish CFO’s, cost containment is the financial action most frequently considered as a result of COVID-19

Question: Which of the following financial actions is your company considering as a result of COVID-19?

Implementing cost containment
%
Deferring or cancelling planned investments
%
Changing company financing plans
%
Adjusting guidance
%
Other
%
Changing M&A strategy
%
We are not considering any financial actions as a result of COVID-19
%
Source: PwC COVID-19 CFO Pulse Survey, 4 May 2020
Base: 39

In terms of supply chain, developing alternate sourcing options tops the list of planned changes

Question: As a result of COVID-19, in which of the following areas are you planning changes to your supply chain strategy?

Developing additional, alternate sourcing options
%
Extend tools to better understand customer demand (e.g., changes in desired mix of offerings, triggers to place orders)
%
Change contractual terms (e.g., to provide your company added flexibility and downside protection)
%
Use automation to improve the speed and accuracy of decision making
%
Improve risk-protection measures (e.g., disaster insurance coverage, more flexible force majeure contract clauses)
%
Understand financial and operational health of suppliers
%
Extend visibility into your suppliers' network (e.g., risk alerts, what-if scenario planning)
%
Diversify product assembly and/or service delivery locations (e.g., to comply with regulations, shorten delivery lead time)
%
Other
%
Source: PwC COVID-19 CFO Pulse Survey, 4 May 2020
Base: 39

CFOs are considering disclosures on impact on macroeconomic & industry factors and risk profile

In the next six months, which of the following COVID-related disclosures are you considering?

Macroeconomic and industry factors
%
Impact on risk assessment/risk profile
%
Liquidity disclosures
%
Difficult to assess currently
%
Guidance adjustments
%
Environment, social and governance reporting
%
Impact on controls
%
Not applicable
%
Source: PwC COVID-19 CFO Pulse Survey, 4 May 2020
Base: 39

If COVID-19 were to end today, 51 % of the Danish CFOs believe they could be back to “business as usual” within 3 months

Question: If COVID-19 were to end today, how long would you estimate it would take for your company to get back to ‘business as usual’?
%
%
%
%
%
Less than a month
1 to 3 months
3 to 6 months
6 to 12 months
More than 12 months
51%
 
Note: Sums may not total 100 due to rounding.
Source: PwC COVID-19 CFO Pulse Survey, 4 May 2020
Base: 39

Layoffs and change in staffing are still likely to be expected by Danish CFOs

Question: As a result of COVID-19, which of the following does your company expect to occur in the next month?

A change in staffing due to low/slow demand (temporary furloughs)
%
Separation of staff (layoffs)
%
Higher demand for employee protections (e.g., including sick leave policies, increase demand for benefits, discrimination)
%
Productivity loss due to lack of remote work capabilities
%
Other
%
Insufficient staffing to accomplish critical work (workforce capacity)
%
PwC COVID-19 CFO Pulse Survey, 4 May 2020
Base: 39

Danish CFOs are much more likely to make remote work permanent when transitioning to on-site work

Question: Which of the following is your company planning to implement once you start to transition back to on-site work?

Make remote work a permanent option for roles that allow
%
Reconfigure work sites to promote physical distancing
%
Accelerate automation and new ways of working
%
Change shifts and/or alternate crews to reduce exposure
%
Change workplace safety measures and requirements (e.g., wearing masks, offering testing to workers)
%
Reduce real-estate footprint (e.g., partial opening of offices, retail locations)
%
Evaluate new tools to support workforce location tracking and contact tracing
%
Provide hazard pay for on-site workers in affected areas
%
Other
%
Offer targeted benefits for on-site workers in affected areas (e.g., childcare, private transportation)
%
PwC COVID-19 CFO Pulse Survey, 4 May 2020
Base: 39

In returning to the workplace, 9 out of 10 Danish CFOs are very confident their company can create a safe working environment

Question: In returning to the workplace, how confident are you in your company's ability to provide a safe working environment?

Very confident
Moderately confident
Not at all confident

90%
8%
3%


Source: PwC, COVID-19 CFO Pulse, 4 May 2020
Base: 39

The current situation have an impact on Danish CFOs future approach to work flexibility and ways to serve customers

Question: What about the current situation will make your company better in the long run?

Work flexibility (e.g., hours, location)
%
New ways to serve customers
%
Leaner operations
%
Better resiliency and agility
%
Technology investments
%
Community and societal engagement
%
None of these
%
PwC COVID-19 CFO Pulse Survey, 4 May 2020
Base: 39

About the survey

PwC is tracking sentiment and priorities about the COVID-19 outbreak among finance leaders. We surveyed 876 CFOs and finance leaders from 24 countries or territories during the week of 4 May. We report on local trends in countries with at least 30 respondents. In Denmark 39 finance leaders answered the biweekly survey.

Contact us

Jan Christiansen

Jan Christiansen

Partner, Head of Consulting, PwC Denmark

Tel: 3945 9500

Brian Christiansen

Brian Christiansen

Partner, Head of Risk Assurance, PwC Denmark

Tel: 3945 9080

Kim Tromholt

Kim Tromholt

Partner, statsaut. revisor, PwC Denmark

Tel: 3945 3059

Natasha Lembke

Natasha Lembke

Partner, Head of Financial Effectiveness, PwC Denmark

Tel: 5133 1677

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