In addition to analysing publicly available data for listed companies, Deloitte also surveyed 271 executives at listed (73 respondents) and non-listed companies (198 respondents) in 14 countries. The analysis of the listed companies’ cash position is supported by this survey, with 77% of respondents reporting a cash surplus in 2014.

This suggests that both listed and non-listed companies across EMEA have been conserving their cash instead of investing. This is a radical change since the financial crisis and confirms the trends first explored in the Deloitte CFO survey on treasury and access to funding. The CFO survey unveiled that due to the challenging economic environment, cash management and working capital requirements figure among Luxembourg CFOs’ major concerns.

When questioned about what the priorities for the next 12 months were, one can observe two key emerging trends for the Benelux countries, as compared to EMEA key priorities. Benelux respondents clearly stated that cash reserve strengthening was a key priority, with 30% to 60% above the EMEA average. Furthermore, the cash investment priority varied between 32% and 45% above the EMEA average, whereas returning cash to shareholders ranked lower in the list.

Petra Hazenberg, Partner at Deloitte Luxembourg states “Whereas last year’s CFO survey outlined that 60% of Luxembourg CFOs confirmed using the organisation’s own funding for investment purposes, the trend remains constant when firms appear generally less in debt and rely primarily on cash available in the company. “

On an EMEA scale, the Cash to growth – Pivot point’ survey shows that 55% of those prioritising investment chose growth as their main focus. Next is innovation with around a fifth focusing on improving their products and processes. Other areas of investment include staff training and new technologies.

Basil Sommerfeld, partner at Deloitte Luxembourg, states: “The results of the survey show that in the Benelux countries, businesses prioritising investment are keen on expanding into new markets like China, Asia Pacific, Latin America or Africa while also focusing on new technologies. Staff training and development are also considered as crucial.”

The reasons and driving force of these investment decisions given by the participating EMEA companies were among others market opportunities (89%), competitive pressure (79%), external demand (75%) and economic confidence (68%).

When looking into the future, 58% of the respondents stated having an investment plan for 2017, with 33% forecasting an increase in their investment amount in the next 12 months.

The full version of the ‘Cash to growth – Pivot point’ is available on Deloitte Luxembourg's website at the following address: http://www.deloitte.com/lu/cash-to-growth