PwC’s COVID-19 CFO Pulse Survey

What finance leaders in Denmark are focused on: Round 2, April 2020

Danish CFOs are keeping their M&A strategy

63% of the Danish CFOs expect no change in their M&A strategy as a result of COVID-19, which is much more than CFOs overall (40%).

However, CFOs expect cancellations of investments

50% of the Danish CFOs expect deferral/cancelation of investments as a result of COVID-19.

Global recession is by far the top concern in Denmark

Today 88% of Danish CFOs rate the possibility of a global recession as their top concern. Two weeks ago the number was 76%.

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
April 2020

The current level of concern among CFOs in Denmark regarding COVID-19 and business impact

Question: What is your company's current level of concern related to COVID-19?
%
%
%
%
Potential for significant impact to our business operations, and it is causing us great concern.
Limited to specific regions in our business currently, but we are monitoring closely.
An isolated challenge; not greatly impacting our business currently, but we are monitoring the situation for any change.
Not currently impacting our business..
Source: PwC COVID-19 CFO Pulse Survey, 22 April 2020
Base: 48

Potential global recession is the top concern for Danish CFOs, largely ahead of others

Question: What are your top three concerns with respect to COVID-19?

Potential global recession
%
Financial impact, including effects on results of operations, future periods and liquidity and capital resources
%
Decrease in consumer confidence reducing consumption
%
Effects on our workforce/reduction in productivity
%
Supply chain issues
%
Cybersecurity risks
%
Not having enough information to make good decisions
%
Difficulties with funding
%
Fraud risks
%
Impacts on tax, trade or immigration
%
Privacy risks
%
Lack of a comprehensive/tested company emergency preparedness plan
%
Financial disclosures including effects on results of operations, future periods, and liquidity and capital resources
%
Other
%
PwC COVID-19 CFO Pulse Survey, 22 April 2020
Base: 48

73 % of the Danish CFOs expect a decrease in revenue as a result of COVID-19

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

Decreased revenue and/or profits
%
We do not expect any impact on revenue and/or profits
%
It is difficult to assess at this point
%
Increased revenue and/or profits
%
Source: PwC COVID-19 CFO Pulse Survey, 22 April 2020
Base: 48

Cost containment and cancelation of investments are the actions 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
%
Adjusting guidance
%
Changing company financing plans
%
We are not considering any financial actions as a result of COVID-19
%
Changing M&A strategy
%
Other
%
Source: PwC COVID-19 CFO Pulse Survey, 22 April 2020
Base: 48

63 % of the Danish CFOs report that COVID-19 is not affecting their M&A strategy

Question: How is COVID-19 affecting your M&A strategy?

63%
No change
13%
Difficult to assess currently
13%
Decreasing appetite
13%
Increasing appetite


Source: PwC, COVID-19 CFO Pulse, 22 April 2020
Base: 48

Improve risk protection measures and understanding health of suppliers top the Danish list of planned changes in supply chain strategy

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

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)
%
Developing additional, alternate sourcing options
%
Change contractual terms (e.g., to provide your company added flexibility and downside protection)
%
Diversify product assembly and/or service delivery locations (e.g., to comply with regulations, shorten delivery lead time)
%
Extend tools to better understand customer demand (e.g., changes in desired mix of offerings, triggers to place orders)
%
Use automation to improve the speed and accuracy of decision making
%
Other
%
Source: PwC COVID-19 CFO Pulse Survey, 22 April 2020
Base: 48

Favored measures when companies are 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?

Reconfigure work sites to promote physical distancing
%
Change workplace safety measures and requirements (e.g., wearing masks, offering testing to workers)
%
Change shifts and/or alternate crews to reduce exposure
%
Make remote work a permanent option for roles that allow
%
Accelerate automation and new ways of working
%
Reduce real-estate footprint (e.g., partial opening of offices, retail locations)
%
Evaluate new tools to support workforce location tracking and contact tracing
%
Offer targeted benefits for on-site workers in affected areas (e.g., childcare, private transportation)
%
Provide hazard pay for on-site workers in affected areas
%
Other
%
PwC COVID-19 CFO Pulse Survey, 22 April 2020
Base: 48

Despite their concern, a majority of CFOs believe their company could get 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
54%
 
Note: Sums may not total 100 due to rounding.
Source: PwC COVID-19 CFO Pulse Survey, 22 April 2020
Base: 48

About the survey

PwC is tracking sentiment and priorities about the COVID-19 outbreak among finance leaders. We surveyed 871 CFOs and finance leaders from 24 countries or territories during the week of 20 April. We report on local trends in countries with at least 30 respondents. In Denmark 48 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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