PwC’s COVID-19 CFO Pulse Survey

What finance leaders in Denmark are focused on: Round 4, June 2020

Potential for second wave of outbreak looms

55% of the Danish CFOs worry about a rise in COVID-19 infections affecting returns to work.

Decrease in revenue up to 25 % are expected

As a result of COVID-19, 56 % of the Danish CFO’s now expect a decrease in revenue up to 25 %.

Changes in products and services

72 % of the Danish CFO cite changes in products as important in order rebuilding or enhancing their revenue streams.

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.

Most Danish CFOs anticipate a decrease in revenue this year

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, 8 June 2020
Base: 40

CFOs cite changes in products or services as the main lever to rebuild revenues

Changes in which of the following will be most important to rebuilding or enhancing your revenue streams?

Products or services (e.g. offering new, enhanced, repurposed, or pared-down solutions)
%
Pricing strategies (e.g. increasing/decreasing price of solutions, offering different payment terms)
%
Customer segments (e.g. selling direct-to-consumer, targeting new industries, moving from B2C to B2B)
%
Distribution channels (e.g. changing from in-person to virtual sales or delivery)
%
Geographic markets (e.g. entering new markets, leaving current markets)
%
Supply chain strategies (e.g., develop alternate sourcing options, change contractual terms)
%
Mergers, acquisitions, joint ventures, or alliances
%
Talent (e.g., acquiring new talent, upskilling)
%
Other
%
Source: PwC COVID-19 CFO Pulse Survey, 8 June 2020
Base: 40

Cost containment is the financial action most frequently considered as a result of COVID-19

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

Implementing cost containment
%
Deferring or cancelling planned investments
%
Adjusting guidance
%
We are not considering any financial actions as a result of COVID-19
%
Changing company financing plans
%
Changing M&A strategy
%
Source: PwC COVID-19 CFO Pulse Survey, 8 June 2020
Base: 40

CFOs are likely to think it will take over 3 months to get back to “business as usual”

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
43%
 
Source: PwC COVID-19 CFO Pulse Survey, 8 June 2020
Base: 40

30 % of the Danish CFOs still expect to see layoffs in the near future

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)
%
Other
%
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
%
Insufficient staffing to accomplish critical work (workforce capacity)
%
Source: PwC COVID-19 CFO Pulse Survey, 8 June 2020
Base: 40

COVID-19 is accelerating new ways of working

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

Improve the remote working experience
%
Accelerate automation and new ways of working
%
Reconfigure work sites to promote physical distancing
%
Make remote work a permanent option for roles that allow
%
Change workplace safety measures and requirements (e.g., wearing masks, offering testing to workers)
%
Change shifts and/or alternate crews to reduce exposure
%
Evaluate new tools to support workforce location tracking and contact tracing
%
Reduce real-estate footprint (e.g., partial opening of offices, retail locations)
%
Other
%
Source: PwC COVID-19 CFO Pulse Survey, 8 June 2020
Base: 40

75% think work flexibility will make their company better in the long run

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
%
Better resiliency and agility
%
Technology investments
%
Leaner operations
%
Community and societal engagement
%
None of these
%
Source: PwC COVID-19 CFO Pulse Survey, 8 June 2020
Base: 40

Top concerns in returning to the workplace are the impacts of downturn and a new wave of infections

Question: What are your top-three concerns with respect to returning to the workplace and operating in a changed business environment?

Impacts of global economic downturn
%
A new wave of COVID-19 infections
%
Financial impact, including effects on results of operations, future periods, and liquidity and capital resources
%
Decrease in consumer confidence reducing consumption
%
Cybersecurity risks
%
Supply chain disruptions
%
Ability to effectively manage hybrid remote and onsite work models
%
The effects on our workforce/reduction in productivity
%
Not having enough information to make good decisions
%
Increased costs of doing business
%
Lack of employee confidence in ability to keep them safe
%
Other
%
Source: PwC COVID-19 CFO Pulse Survey, 8 June 2020
Base: 40

About the survey

PwC is tracking sentiment and priorities about the COVID-19 outbreak among finance leaders. We surveyed 989 CFOs and finance leaders from 23 countries or territories during the week of 8 June. We report on local trends in countries with at least 30 respondents. In Denmark 40 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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