International Restructuring Study 2012 - Roland Berger Strategy ...

RESTRUCTURING STUDY
International 2012
Sovereign debt crisis –
Effects on financing and the real economy
Düsseldorf, September 2012

2
Contents
Page
A. Goal and methodology 4
B. Summary in brief 7
C. Key results 11
D. Contacts 34
© Roland Berger Strategy Consultants
Roland Berger_Internationale Restrukturierungsstudie_2012_Final_E_JQ.pptx

Roland Berger_Internationale Restrukturierungsstudie_2012_Final_E_JQ.pptx
3
Our study – Preliminary notes
> In June and July 2012, Roland Berger Strategy Consultants conducted its study of restructuring
trends for the eighth time since 2001
> Across the world, board members and managing directors of some 5,000 companies from
different industries were surveyed, with a 12% response rate
> The aim of the study was to learn how, in view of the current sovereign debt crisis, managers are
preparing their companies for such possible scenarios as a renewed economic downturn or the
exit of individual countries from the euro
> The key study results are grouped into four regions and presented here:
– North Western Europe (NWE)
– South Western Europe (SWE)
– Central & Eastern Europe (CEE)
– Special feature: Japan

A.
Goal and
methodology

5
A. GOAL AND METHODOLOGY
The study is widely applicable thanks to the large number and good
balance of industries represented
Study participants by industry [share in %]
Participating companies came from
more than 13 different industries
Media
Tourism
Pharmaceuticals &
2
3
healthcare
3
Chemicals
4
Logistics
Construction
6
7
Other
6
Financial services
17
14
Engineered products
SMEs
40%
The results are widely applicable
due to the broad spread of industries
The financial services, engineering
and trading/retail industries are best
represented, accounting for 10% or
more
40% of companies surveyed
consider themselves to be SMEs
and 34% are listed companies
Automotive and
suppliers
Consumer goods, electronics,
textiles
7
8
9
Energy, utilities
14
Trading/retail
Listed
companies
34%
Source: Roland Berger Restructuring Survey 2012
Roland Berger_Internationale Restrukturierungsstudie_2012_Final_E_JQ.pptx

6
A. GOAL AND METHODOLOGY
The high validity of the survey results is due to the fact that companies
of almost all size categories in many regions of the world were included
in the study
In all of the regions the survey
encompassed companies of all sizes
– small to medium-sized companies
dominate in NWE and SWE (sales of
EUR 0.1-0.5 bn)
Size of surveyed companies based on sales [%]
EUR bn NWE SWE
CEE Japan
Most of the companies surveyed in
CEE are small or very large (sales of
> EUR 5.0 bn)
5.0
13
14
29
35
Source: Roland Berger Restructuring Survey 2012
Roland Berger_Internationale Restrukturierungsstudie_2012_Final_E_JQ.pptx

B.
Summary in brief

9
B. SUMMARY IN BRIEF
The most important restructuring actions in 2012, besides cutting costs
and boosting efficiency, are growth and sales initiatives – Management
commitment is the main success factor
Management summary (2/3)
5
A collapse of the eurozone is feared especially by survey participants from SWE and Japan, with
57% and 53%, respectively, citing this concern (European average: 29%). Whereas 54% think a
possible Greek exit from the eurozone makes sense, 61% also consider this likely. Around one
third of companies in Europe and Japan have already taken or planned steps to prepare
6
Across Europe, the most important restructuring actions in 2012 are cost-cutting or efficiencyboosting
programs (74%). While the countries of SWE are focusing on costs in view of the crisis,
NWE and CEE are also putting more effort into growth actions in parallel
7
Stronger risk management is seen as relevant by 55% of companies – though, compared with
growth and cost issues, Europe continues to underestimate its importance, unlike Japan, and
ought to attach greater significance to this aspect – commodity price risks and currency risks are
viewed as equally important for the first time this year, being cited by 60% of respondents each
8
Management commitment (93%) remains the main success factor and is seen as even more
important this year – rapid implementation (75%) of actions is now considered much more
important than it was in previous years and even ranks top in Japan
Source: Roland Berger Restructuring Survey 2012
Roland Berger_Internationale Restrukturierungsstudie_2012_Final_E_JQ.pptx

10
B. SUMMARY IN BRIEF
More than 70% of European companies see the risk of a renewed credit
crunch or liquidity crisis as high – Internal sources of financing and
restructuring actions are what companies focus on
10
9
11
Management summary (3/3)
In spite of the sovereign debt crisis, ≤ 8% of those surveyed in NWE and Japan rate their liquidity
situation as critical or very critical – however, the liquidity situation is very difficult in SWE as a
result of the crisis (25-41% said it was critical or very critical). The risk of a renewed credit
crunch or even a liquidity crisis is seen as high by 71% of European companies
Particularly as a consequence of the deterioration in the business environment (esp. due to the
European sovereign debt crisis and the new capital adequacy guidelines in the wake of Basel III)
and the lack of ability to fulfill covenants, around 49% and 29% of companies, respectively,
anticipate a negative impact on their financing in 2012 – They mostly fear the non-approval of
new or existing credit lines (28% each)
As last year, internal financing power is therefore the key source of financing for almost all
European companies (87%). However, this potential is underrated in SWE, where companies are
focusing more on bank loans (72%) in the sovereign debt crisis – this makes the implementation
of restructuring actions (especially with respect to working capital) of crucial importance
12
Traditional bank financing continues to be the most important source of debt financing – Only
7% view SME bonds as relevant (9% in NWE), whereas 16% would consider a traditional bond
Source: Roland Berger Restructuring Survey 2012
Roland Berger_Internationale Restrukturierungsstudie_2012_Final_E_JQ.pptx

C.
Key results

12
C. KEY RESULTS
Major fall in GDP growth in Europe in late 2011/early 2012 – However,
the ifo Business Climate Index is again moving in a positive direction in
H1 2012 following a decline in 2011
Current economic climate
GDP growth in Europe [%] 1)
1.9
2.5
0.7
-0.1
Q4 /10 Q1/11 Q4/11 Q1/12
Late 2010 and early 2011 still saw sound growth of
1.9% and 2.5% quarter on quarter
At the end of 2011 there was already a major
reduction in growth, down to 0.7% quarter on quarter –
and GDP even fell by -0.1% in the 1st quarter of 2012
For 2012 as a whole, the European participants in this
year's study also anticipate GDP growth of just 0.1%
ifo Business Climate Index
100
[2005 = 100]
107.7
78.7
-12%
2007 2008 2009 2010 2011 2012
The mood throughout the global economy is now
lifting following the sharp fall in H2 2011 – recovery
began in Q1 2012 in spite of the sovereign debt crisis
95.0
+20%
The ifo Business Climate Index measures the current
business situation and the expectations for the next 6
months
It serves as an early indicator of the business trend
and shows industry's expectations for the future
Source: EIU; ifo; Roland Berger
Roland Berger_Internationale Restrukturierungsstudie_2012_Final_E_JQ.pptx

2012
2013
13
C. KEY RESULTS
Europe expects the economy to stagnate overall in 2012 and grow 0.6%
in 2013, with sentiment for 2012 being more positive in NWE (0.7%) than
in SWE (-1.8%) and CEE (-0.2%) – Japan's growth to be 1.3% in 2012
On average, the European regions
in the survey anticipate economic
growth (GDP) of just 0.1% in 2012
and 0.6% in 2013
NWE is moderately optimistic,
expecting 0.8% growth
CEE expects economic development
of -0.2% – a slight decrease
The outlook for the future is much
more pessimistic in SWE, on the
other hand – Southern European
countries expect GDP to be down
-1.8% in 2012 and still down -0.6%
in 2013
By comparison, Japanese
expectations are much more
optimistic, at 1.3% economic
growth in 2012 – the 0.9% growth
expected in 2013 is on a par with
NWE
Growth expectations in the various regions in 2012 and 2013 [%, GDP] 1)
0.1% European average
1.3
0.7
-0.2
-1.8
NWE SWE CEE Japan
0.6% European average
0.9
0.4
0.9
-0.6
NWE SWE CEE Japan
1) Weighted average growth per region
Source: Roland Berger Restructuring Survey 2012
Roland Berger_Internationale Restrukturierungsstudie_2012_Final_E_JQ.pptx

14
C. KEY RESULTS
62% of the companies surveyed in Europe can see the threat of a
recession in their country – They think it will happen in Q3 2012 (SWE
considers itself to be in recession since Q1)
62% of the companies in Europe
perceive the threat of recession in
their country – all of the companies
surveyed in Japan see a recession
as unavoidable
In NWE just half of companies
believe there is a risk of recession,
77% think this in CEE and 92% in
SWE
Threat and time of a recession [%]
Do you think your country is facing the threat of recession?
NWE SWE
CEE Europe
Japan
49% 92% 77%
62% 100%
Those companies in SWE that
consider a recession to be likely
believe they are already in
recession and have been since Q1
2012 – for those in CEE it is
beginning right now and in NWE it
is not expected until the end of 2012
Most respondents across Europe
anticipate a recession for Q3 2012
– Japan expects it to happen in late
2012
Response "Yes"
If so, when might this start to happen?
2012
Avg. across
Europe 1) :
26
Q3 2012
15
Q1
Q2
21 18 20
Q3
Q4
2013
Avg. by region 1) :
SWE
CEE
NWE
Japan
1) Weighted average for Europe or the region
Source: Roland Berger Restructuring Survey 2012
Roland Berger_Internationale Restrukturierungsstudie_2012_Final_E_JQ.pptx

15
C. KEY RESULTS
European and Japanese companies see the main risk in declining
demand among private households – Europe expects a profitability
collapse due to stagnating or declining prices
The current situation is expected to
worsen in an economic downturn
particularly in terms of declining
demand among private
households (64% on average
across Europe) and in terms of a
profitability collapse due to
stagnating or declining prices (60%
on average across Europe)
Areas where the current situation will worsen due to an economic downturn [avg. of responses] 1)
Declining demand among
private households
Profitability collapse due to
stagnating or declining prices
NWE SWE CEE Euro. avg. Japan
57
59
79
70
71
59
64
60
82
35
Declining intra-European exports
(71%) is seen as the main risk in
NWE – companies in SWE fear
rising unemployment (87%) and
more restrictive lending (87%) the
most
Japanese companies have noticed
a major deterioration of the situation
in terms of declining demand
among private households (82%)
and in the fact that surplus
capacity arises in the market
(production) (71%)
Rising unemployment
Declining intra-European
exports
More restrictive lending
(credit crunch)
Surplus capacity arises in the
market (production)
Growing capital tie-up due to
lower inventory turnover
Declining extra-European
exports
47
71
53
43
36
42
87
27
87
56
48
12
69
50
56
28
37
28
59
59
58
39
37
34
59
65
47
71
18
1) Multiple responses possible; % of "very strong" and "strong"
Source: Roland Berger Restructuring Survey 2012
Roland Berger_Internationale Restrukturierungsstudie_2012_Final_E_JQ.pptx

BACKUP
16
C. KEY RESULTS
The focus of corporate growth for European companies in 2012 is on
Western Europe (43%), followed by Central/Eastern Europe (43%) and
Asia (37%) – Japan plans growth in Asia and Central/Eastern Europe
The European companies in the
survey plan to grow mainly in
Western Europe (43%) – as many
as 58% of companies in NWE plan
growth in Western Europe, as
against just 20% of those located in
South Western Europe
Companies from SWE plan to grow
more in Asia (48%) and Central/
South America (46%) in 2012
Half of the companies from CEE
plan growth in their own region in
2012 – the focus for Japan lies on
Asia (69%) and Central/Eastern
Europe (47%)
Planned growth by region in 2012 [% of responses] 1)
North America (24%)
NWE 29%
SWE
CEE 7%
Japan
18%
35%
NWE 29%
SWE
CEE 8%
Japan
Western
Europe (43%)
NWE 58%
SWE
Japan
20%
CEE 19%
46%
41%
12%
Central/South America (26%)
Central/Eastern Europe (42%)
NWE 40%
SWE
Japan
33%
CEE 50%
Middle East (19%)
NWE 21%
SWE
CEE 10%
Japan
32%
47%
41%
NWE 46%
SWE
CEE 14%
Japan
Asia (37%)
48%
69%
1) Multiple responses possible Country (x%) = weighted average European response
Source: Roland Berger Restructuring Survey 2012
Roland Berger_Internationale Restrukturierungsstudie_2012_Final_E_JQ.pptx

BACKUP
17
C. KEY RESULTS
Lack of qualified staff is the greatest obstacle to future growth for 54%
of the European companies surveyed, followed by lack of willingness
to take risks (43%)
54% of companies see a continued
high to very high risk that a lack of
qualified staff could hamper
growth
Compared with last year, lack of
qualified staff and lack of
management/shareholder
willingness to take risks are rated
as less relevant – all other
threats are seen as more
important
In particular, the insufficient
financing options constitute a
greater hindrance to growth
compared with 2011 (+5
percentage points)
Possible threats or obstacles to future growth [% of responses] 1)
European
average 2) 76
71 71
71
65
59
52
52
47
41
38
41 39 41
34
19
6
54% 43% 42% 37% 12%
Lack
of qualified staff
Lack of
management/
shareholder
willingness to take
risks
Inadequate
financing options
Increased
protectionism/
trade restrictions
(e.g. import
duties)
39
30
41
Excessive
management/share
holder willingness to
take risks
NWE
SWE
CEE
Japan
1) Multiple responses possible; % of "very high risk" and "high risk" responses 2) Weighted average European response
Source: Roland Berger Restructuring Survey 2012
Roland Berger_Internationale Restrukturierungsstudie_2012_Final_E_JQ.pptx

18
C. KEY RESULTS
57% of European companies consider themselves (much) better
equipped than their competitors for an economic slowdown or a new
crisis in 2012
In 2011, 58% of companies
surveyed stated that the economic
crisis of 2008/09 had even been a
great help to them in increasing
their competitiveness long term on
the back of restructuring
In the event of an economic
slowdown or an emerging liquidity/
currency crisis, 57% of the
companies think they are currently
well or very well positioned – last
year around 64% of those surveyed
stated that their companies were
currently very competitive
On the other hand, 10% of the
companies in Europe think they are
poorly or very poorly prepared for
an economic slowdown – and in
Japan, 24% of the companies
surveyed believe they are not
prepared for a new crisis
Company competitiveness [% of responses] 1)
How well is your company equipped for a
possible economic slowdown or renewed
liquidity/currency crisis compared with
competitors?
Very well
62 NWE
57
47
50
12
SWE
CEE
European avg. 2)
Japan
Very poorly
5
15
16
10
24
1) % of "very well" and "well" or "poorly" and "very poorly" responses 2) Weighted average European response
Source: Roland Berger Restructuring Survey 2012
Roland Berger_Internationale Restrukturierungsstudie_2012_Final_E_JQ.pptx

19
C. KEY RESULTS
The sovereign debt crisis is expected to impact companies much less
than the economy as a whole – 84% believe that it has yet to reach its
peak (late 2012/early 2013)
Impact and peak of the sovereign debt crisis [% of responses]
How much did the
discussion about the
European sovereign debt
97
crisis impact the
economy in your country
or your company? 1)
When do you
think the peak of
the European
sovereign debt
crisis was
reached or when
do you think it will
be reached?
NWE SWE
CEE Europe
Japan
55
28
Your country
2012
Avg. across 4 5
Europe 1) :
8
Q4 2012/Q1 2013
Avg. by region 2) :
Q4
2011
54
Your company
Q1
Q2
SWE
61
40
CEE
NWE
61
34
Japan
65 53
26
17
11
4 2 15
9
Q3
Q4
Q1
84%
Q2
2013
Q3
Q4
> 2013
IMPACT of the crisis
61% of those surveyed in Europe
see a strong negative impact of
the sovereign debt crisis on the
economy in their own country – the
impact on their own company is
lower (34%)
SWE companies, in particular, rate
the negative impact on the
economy in their own country as
very high or high – more than 50%
also see the negative impact on
their own company as very strong
or strong
PEAK of the crisis
Most companies across Europe
think the sovereign debt crisis will
peak in late 2012 or early 2013 –
Japan does not expect it to peak
until mid-2013
1) % of "very strong" and "strong" responses 2) Weighted average for Europe or the region
Source: Roland Berger Restructuring Survey 2012
Roland Berger_Internationale Restrukturierungsstudie_2012_Final_E_JQ.pptx

20
C. KEY RESULTS
29% of European companies think the euro will collapse (SWE: 57%;
Japan: 53%) – 54% think a possible Greek exit makes sense and 61%
deem it likely
Assessment of the survival of the euro [% of responses]
Do you fear a collapse of the euro?
NWE
SWE
CEE
Europe
Japan
29
7
36 57
25
25
29
18
44
52
46
28
23
29
53
Yes
No
Not sure
How do you feel about a possible Greek exit from the euro?
Makes sense
Likely
As a
consequence:
collapse of the
eurozone
46
53
39
NWE
49
76
24
SWE
69
68
19
CEE
54
61
31
Europe
While 46% of those surveyed in
Europe are certain that there will be
no collapse of the euro, 25% are
not sure – however, the majority in
SWE believe it will indeed collapse
(Japan is also pessimistic, with
53% of companies holding this view)
On average across Europe, 54%
consider a (voluntary) Greek exit
from the eurozone to make sense
(especially CEE, where 69% hold
this view) – 61% also think it likely,
at least in the medium to long term
(especially SWE, where the figure is
76%)
Less than one third of the
companies deem a collapse of the
eurozone to be a likely
consequence of a Greek exit
Source: Roland Berger Restructuring Survey 2012
Roland Berger_Internationale Restrukturierungsstudie_2012_Final_E_JQ.pptx

Yes
21
C. KEY RESULTS
35% of the companies in Europe have already taken or planned steps for
the collapse of the eurozone – Their focus was primarily on establishing
contractual safeguards with respect to customers/suppliers (26%)
Arrangements for a possible collapse of the euro [% of responses]
Have you taken/planned steps to prepare for
the possible collapse of the eurozone?
39
39
26
35
29
On average across Europe, 35% of
companies surveyed have already
taken or planned steps to prepare –
the level of preparedness in CEE is
thus below average, at 26% of
companies
Areas in which steps were taken or planned 1)
NWE
SWE
CEE
Europa
Japan
NWE SWE
CEE Europe Japan
Where steps have been taken, these
have predominantly involved
establishing contractual
safeguards with respect to
customers/suppliers (26%) and
generally reducing own business
activity in affected countries (24%)
Establishing contractual safeguards with respect to
customers/suppliers
Generally reducing own business activity or
presence in potentially affected countries
28
25
27
33
19 26 25
21
24
25
Unlike the majority of European
countries, Japan is placing greater
focus on examining favorable
acquisition opportunities (38%)
Examining/scaling back cooperation with companies that
operate in potentially affected countries
25
27
20
23
25
Examining favorable acquisition opportunities
1) Multiple responses possible
Source: Roland Berger Restructuring Survey 2012
19
29 11
38
18
Roland Berger_Internationale Restrukturierungsstudie_2012_Final_E_JQ.pptx

BACKUP
22
C. KEY RESULTS
Financial services (83% on average) were hardest hit by the sovereign
debt crisis, followed by the construction trade (68%) and the
automotive and supplier industry (52%)
Industries affected by the sovereign debt crisis to date [avg. of responses] 1)
How strongly do you think the sovereign debt crisis has affected the various industries in Germany?
Clear vote: 83% of those surveyed
think the negative impact of the
sovereign debt crisis is "strong" to
"very strong" on the financial
services sector
83%
89
40
68%
95 95
68 69
54
85
25
Financial services
Construction
45% 44% 40%
63 72
49
34
19
Consumer goods, electronics, textiles
Trading/retail
54
25
52%
82
76
44
56
Automotive and suppliers
63
42 50
34
Engineered products
The construction trade (68%) and
the automotive and supplier
industry (52%) were also strongly
affected
Companies in SWE view the
financial services sector (95%),
construction (95%) and automotive
(suppliers) (82%) as particularly
badly affected by the sovereign debt
crisis – respondents in NWE think it
mainly affected the financial services
sector (89%)
As far as Japan is concerned, the
automotive and supplier industry
(76%) has been hardest hit by the
sovereign debt crisis to date
NWE SWE CEE Japan
Source: Roland Berger Restructuring Survey 2012
1) "strong" and "very strong" responses
Roland Berger_Internationale Restrukturierungsstudie_2012_Final_E_JQ.pptx

23
C. KEY RESULTS
The focus in South Western Europe lies on costs – North Western
Europe and Central/Eastern Europe have a dual focus on growth and
sales
Focus of actions in 2012 [% of responses] 1)
In which areas do you intend to take action in 2012?
A
Cost-cutting or efficiencyboosting
program
NWE SWE CEE
71
90
76
Euro. avg.
74
Japan
76
North Western Europe's focus:
Promoting growth (73%) while also
cutting costs and boosting
efficiency(71%)
South Western Europe's focus:
Mainly costs (cost cutting 90% and
cost flexibility 85%) – growth
actions rank behind stronger
liquidity and risk management
B
C
D
Growth/sales initiatives
Cost flexibility program (cutting
fixed costs)
Stronger liquidity management
73
57
56
56
85
64
70
64
65
70
63
60
65
53
29
Japan's focus: Strategy/business
model are more important; esp.
cost-cutting actions (76%)
Except in Japan (65%), only
around half of the companies are
planning to enter into any general
discussions concerning their
strategy/business model
F
G
Stronger risk management
Strategy/adjusting the business
model
49
54
60
56
65
54
55
54
29
65
The issue of risk management
continues to be underestimated
compared with growth and cost
issues
1) Multiple responses possible
Source: Roland Berger Restructuring Survey 2012
Roland Berger_Internationale Restrukturierungsstudie_2012_Final_E_JQ.pptx

24
C. KEY RESULTS
Minimizing commodity price risks is less important to companies in
South Western Europe than to those in Europe's North West – Japan is
very conscious of commodity risks
Relevance of/minimizing commodity risks [% of responses] 1)
COMMODITY PRICE RISKS: Relevance
European
average
19
21 60
Actions: IMPORTANCE
Passing the commodity price
risks on to the customer
Hedging
R&D or substitutes
(commodities)
Actions: FEASIBILITY
55
45
45
57
49
48
71
68
61
68%
51%
53%
The relevance of commodity
price risks is much higher in
Japan (82%) than in Europe (60%)
Passing the risks on to the
customer is the most important
measure (68% in Europe) –
however, only 36% consider this to
be feasible
The feasibility of actions to
minimize risks is seen as much
lower in South Western Europe
(e.g. 22% hedging) than in North
Western Europe (e.g. 44%)
Japan
High
Medium
Low
12
6
82
Passing the commodity price
risks on to the customer
Hedging
R&D or substitutes
(commodities)
18
35
40
22
44
33
42
28
33
36%
38%
38%
1) Multiple responses possible x% Weighted average European response
NWE SWE CEE
Source: Roland Berger Restructuring Survey 2012
Roland Berger_Internationale Restrukturierungsstudie_2012_Final_E_JQ.pptx

25
C. KEY RESULTS
Companies in NWE and CEE focus the most on actions to minimize
currency risks – Hedging is fairly easy to do in North Western Europe
(67%) due to the availability of suitable instruments
Relevance of/minimizing currency risks [% of responses] 1)
CURRENCY RISKS: Relevance
European
average
16
24 60
Actions: IMPORTANCE
Passing the currency risks on
to the customer
Hedging
"Natural hedging": More
purchasing in own currency
50
50
61
57
54
50
59
47
55
53%
55%
56%
There is a noticeably higher
awareness of currency risks in
Japan (76%) than in Europe (60%)
In Europe, hedging against
currency risk is seen as much
more feasible (59%) than using
hedging to minimize commodity
price risks (38%)
Actions: FEASIBILITY
Japan
High
Medium
Low
12
12
76
Passing the currency risks on
to the customer
Hedging
"Natural hedging": More
purchasing in own currency
23
18
35
47
48
54
39
43
67
26%
59%
49%
1) Multiple responses possible x% Weighted average European response
NWE SWE CEE
Source: Roland Berger Restructuring Survey 2012
Roland Berger_Internationale Restrukturierungsstudie_2012_Final_E_JQ.pptx

BACKUP
26
C. KEY RESULTS
Management commitment remains the main success factor – Rapid
implementation is becoming much more important than in past years
and even tops the list of factors in Japan
Management commitment (93%
Europe; 94% Japan) remains the
most significant factor in
restructuring – change will only be
successful if change is truly lived
by the management themselves
Rapid implementation (74%
Europe; 100% Japan) is gaining
rapidly in importance in a volatile
market environment
Communication of goals/
progress (75% Europe; 88%
Japan) is of greater importance in
Eastern and Asian cultures
Intensive project monitoring
(Europe 72%; Japan 65%) is
relevant in CEE in particular
A comprehensive concept (62%
Europe; 65% Japan) is less
important than in past years
Main success factors for implementation [% of responses] 1)
What do you think were/are the key success factors within the measures?
European
average 2) 93% 75% 75% 72% 62% 22%
93 95 96
100
94
88
82
84
75 79
72 75
76
67
68 65 66
59
65
54
33
18
NWE
Management
commitment
SWE
CEE
Rapid
implementation
Japan
Communication
of goals/progress
Intensive project
monitoring
Comprehensive
concept
33
25
Use of a CRO
1) Multiple responses possible 2) Weighted average European "very important" and "important" responses
Source: Roland Berger Restructuring Survey 2012
Roland Berger_Internationale Restrukturierungsstudie_2012_Final_E_JQ.pptx

27
C. KEY RESULTS
Differing views of the liquidity situation – While over the last three
years just ≤ 8% in NWE/Japan see their liquidity situation as critical or
very critical, the figure in South Western Europe is 25-40%
Differing views of companies'
own liquidity situation:
Estimate of the liquidity situation [% of responses]
Further improvement in North
Western Europe in spite of the
sovereign debt crisis – this
year's 5% represents an
improvement over last year's 7-
8% (Western Europe)
2010
7
1 6
25
17
8
7
14
7
0
0 0
11%
The sovereign debt crisis is
having an extremely negative
effect on the liquidity situation
of companies in South Western
Europe: Over the last three years
25-40% of those surveyed rated it
as critical or very critical
2011
1
8
7
35
25
10
7
18
12
0
0 0
14%
40
2012
5
0 5
25
15
8
19
11
6
0 6
14%
NWE
SWE
CEE
Japan
Very critical Critical x% Weighted average "very critical" and "critical" responses
Source: Roland Berger Restructuring Survey 2012
Roland Berger_Internationale Restrukturierungsstudie_2012_Final_E_JQ.pptx

28
C. KEY RESULTS
The fear of a credit crunch is particularly high in South Western Europe
– The sovereign debt crisis is seen as a bigger cause than the outcome
of the bank stress tests/new capital adequacy guidelines
In South Western Europe the
vast majority of the companies
agree that either the continued
sovereign debt crisis (89%) or the
outcome of the bank stress
tests/new capital adequacy
guidelines (70%) will lead to a
renewed credit crunch or
liquidity squeeze
Outside of Europe, about half of
the Japanese companies still
expect a credit crunch or
liquidity crisis to happen
Risk of a renewed credit crunch or liquidity crisis [% of responses]
Due to European
sovereign debt crisis
NWE
SWE
CEE
9
22
4
7
4
25
69
89
70
Due to bank stress tests/
new capital adequacy guidelines
NWE
SWE
CEE
13
32 55
9
21
45
10
70
46
Europe
7
21
71
Europe
12
35 54
High
Medium
Low
Japan
24
24
53
Japan
35
12
53
Source: Roland Berger Restructuring Survey 2012
Roland Berger_Internationale Restrukturierungsstudie_2012_Final_E_JQ.pptx

29
C. KEY RESULTS
Around 30% of European companies expect to have new credit line
applications turned down and existing lines reduced in 2012 (especially
in SWE, where the figure is 62%, and Japan, at 24%)
Around 30% of the companies in
Europe fear a deterioration in
financing conditions in 2012 in
the form of new or existing credit
lines not being approved
Especially companies in SWE see
a danger of new credit lines not
being approved (67%)
NWE (23%) and CEE (32%)
anticipate a deterioration in
financing conditions caused by a
lack of shareholder funds
Financing 2012: Negative developments [% of responses] 1)
NWE SWE CEE
Euro. avg.
Japan
22
A Non-approval of new credit lines
48
28% 12%
31
Reduction of existing credit
B 20
lines
62
28% 24%
29
C Lack of shareholder funds
12%
23
25
32
Limit reductions in trade credit
insurance
19
42
30
25%
Lack of interest on the part of
F external investors (e.g. hedge
funds)
16
28
20
19%
6%
D 12%
Lack of demand for issuing a
G
bond
13
16
15% 18%
26
H Illiquidity of the mezzanine
21
7
15
market
11%
7%
26%
1) Multiple responses possible; % of "very important" and "important" responses
Source: Roland Berger Restructuring Survey 2012
Roland Berger_Internationale Restrukturierungsstudie_2012_Final_E_JQ.pptx

30
C. KEY RESULTS
Half of the European companies believe the negative development of
financing conditions to have been caused by a deterioration in the
business environment (Japan: 29%)
Around half of the companies
surveyed in Europe put the
deterioration in their financing
conditions down to a general
deterioration of the business
environment – in NWE 48% of
companies, in SWE 57% and in
CEE 47%
29% of respondents in Europe
consider a lack of ability to fulfill
financial covenants as the
reason behind the negative
development (especially in NEW,
where 33% of companies believe
this to be relevant)
Financing 2012: Causes of negative development [% of responses] 1)
Deteriorated business
A 48
57
environment
47
49% 29%
Breach or lack of ability to
fulfill financial covenants
NWE SWE CEE
NWE
B 20
29% 18%
33
Difficulties in satisfying stricter
C
reporting/information obligations
15
15
19% 18%
22
D Lack of ability to provide required
15
22
22
collateral
18% 12%
CEE
23
Euro. avg.
Japan
Lack of ability to satisfy
F
repayments
17
11%
5
12%
25
No possibility of additional
availability fees
G 10% 12%
1) Multiple responses possible; % of "very important" and "important" responses
Source: Roland Berger Restructuring Survey 2012
7
H Lack of ability to service
20
17
interest charges
3
9%
12%
20
11
Roland Berger_Internationale Restrukturierungsstudie_2012_Final_E_JQ.pptx

31
C. KEY RESULTS
87% of the companies in Europe (82% in Japan) consider internal
financing power the most important form of financing – The great
importance of bank loans in SWE is surprising given the debt crisis
Compared with external financing
sources, almost all companies
(87%) attributed the greatest
importance to internal financing
power this year, too (last year: 81%)
Importance of different forms of financing [% of responses] 1)
NWE SWE CEE Euro. avg. Japan
Traditional bank loans (51%) are
still the dominant form of debt
financing, as last year (56%) –
capital increases through existing
(41%) or new investors (29%) are
less relevant, though they have
grown in importance since last
year (when the figures were 31%
and 19%, respectively)
By comparison, issuing bonds on
the capital market (24%) and
especially mezzanine financing
(11%) remain barely relevant at all
Internal financing power
Bank loans
Capital increase through
existing investors
Capital increase through
new investors
Bonds
93
50
48
34
30
71
72
11
24
21
83
46
38
23
13
87
51
41
29
24
82
65
18
Mezzanine
15
9
4
11
12
1) Multiple responses possible; % of "very important" and "important" responses
Source: Roland Berger Restructuring Survey 2012
Roland Berger_Internationale Restrukturierungsstudie_2012_Final_E_JQ.pptx

32
C. KEY RESULTS
Working capital actions like improved debt collection (64%, 53%) and
inventory optimization (62%, 82%) are the most important internal financing
forms in Europe, Japan – Liquidity potential from working capital
underrated in SWE
Among the internal forms of
financing, working capital actions
continue to come out top –
companies will mostly implement
these through improved debt
collection (64%), sustainable
reduction of inventory assets
(62%) and optimization of payment
terms (accounts payable/receivable)
Japan focuses on inventory
optimization (82%)
The sale of non-operating assets
is fourth, with 31% of responses
Asset-based financing forms such
as fixed asset leasing and sale &
lease back programs are seen as
less important, with 21% and 20%,
respectively
Importance of internal financing forms [% of responses] 1)
Improved debt collection
Inventory optimization
Payment terms optimization
(accts. payable/receivable)
Sale of non-operating
assets
Use of factoring
or ABS
Fixed asset leasing
NWE SWE CEE Euro. avg. Japan
61
66
56
23
29
23
60
60
57
45
44
16
41
75
57
73
26
20
64
62
61
31
30
21
53
82
65
35
18
6
Sale & lease back
22
25
15
20
6
1) Multiple responses possible; % of "very important" and "important" responses
Working capital actions
Source: Roland Berger Restructuring Survey 2012
Roland Berger_Internationale Restrukturierungsstudie_2012_Final_E_JQ.pptx

33
C. KEY RESULTS
Traditional bank financing is still the most important form of debt
financing – 41% in SWE plan on expanding their existing credit lines
Planned changes in debt financing
will be realized in 2012 primarily by
extending existing credit lines
(49%) or by applying for new
credit lines (37%) – followed by
expanding existing lines (33%)
Planned changes in debt financing in 2012 [% of responses] 1)
NWE SWE CEE
A Extending existing credit lines 51
54
45
Euro. avg.
49
Japan
24
Before resorting to capital market
instruments or taking on external
investors, companies foresee
refinancing through shareholder
loans (27%)
B
C
Applying for new credit lines
Expanding existing credit lines
42
36
27
41
33 31
37
33
24
18
Only 16% of the European
companies would consider
issuing a traditional bond on the
capital market, and just 7% would
consider issuing an SME bond
(e.g. in the "bond M" segment)
D
F
Taking on a shareholder loan
Taking on an external investor
37
36
11
15
12
14
27
27
G
Issuing a traditional bond on
the capital market
20
13
8
16
6
H
Issuing an SME bond
9
4
3
7
12
1) Multiple responses possible; % of "very important" and "important" responses
Traditional bank financing
Source: Roland Berger Restructuring Survey 2012
Roland Berger_Internationale Restrukturierungsstudie_2012_Final_E_JQ.pptx