No 10 • October 2014
Results for non-financial corporations in the Central
Balance Sheet Database for 2013 and the 1st half of
2014
Banco de Portugal's Statistical Bulletin of October 2014 discloses the results for non-financial corporations in the Central
1
Balance Sheet Database, incorporating data from Simplified
Corporate Information (IES) for 2013 and the main developments identified for the year ended in the second quarter of
2014. Changes associated with the new European System of
2
National and Regional Accounts (ESA 2010) are also introduced, resulting in a change in the reference population of the
non-financial corporate sector, the impact of which is also
described.
Characterisation of non-financial
corporations
According to Central Balance Sheet Database estimates, there
were around 370 thousand non-financial corporations in
3
Portugal in 2013. This number did not change significantly
over the past few years. “Small and medium-sized corporations” accounted for around 99.2% of non-financial corpora-
tions, 50.6% of total assets of non-financial corporations and
4
54.5% of total income (Chart 1).
Around 160 thousand corporations, with a share of 26.2% in
total assets of non-financial corporations, were included in
the aggregate “other services”, which includes, among others, accommodation and food service activities, information
and communication and professional, scientific, technical
and administrative activities. “Trade” was the sector with
the highest share in total income (36%) (Chart 1).
Chart 1
Breakdown by sector and size in 2013
100%
80%
60%
Number of corporations
Total assets
40%
Total income
20%
0%
Small and medium-sized corporations
Large corporations
Private corporations by size class (excludes non-financial holdings)
50%
45%
40%
35%
1
The Central Balance Sheet Database statistics use an underlying compilation methodology that aims to reflect the results for all the non-financial
corporations in Portugal, based on a sample. For further information on the
compilation methodology used for this information, see Supplement 2/2013
of the Statistical Bulletin of October 2013, available at
http://www.bportugal.pt/enUS/Estatisticas/PublicacoesEstatisticas/Tumbnails%20List%20Template/Sup
lemento-2-2013-en.pdf.
2
Further information on these changes may be found at
http://www.bportugal.pt/enUS/Estatisticas/MetodologiaseNomenclaturasEstatisticas/AlteracoesMetod
ológicasSEC2010BPM6/Pages/AlteracoesMetodológicasSEC2010BPM6.aspx
and the Statistical Press Release No 11|2014.
3
Excluding corporations in section A of NACE Rev. 2: Agriculture, forestry
and fishing.
30%
25%
20%
15%
10%
5%
0%
Industry
Electricity, gas
and water
Construction
Trade
Transportation Other services Non-financial
and storage
holdings
Private corporations by economic activity
4
Income generated by corporations, consisting of turnover and other
operating and financial income.
2
STATISTICAL PRESS RELEASE • October 2014
The implementation of ESA 2010 significantly altered the
population of non-financial corporations, resulting in a contraction of around 1% in the number of corporations. This
change had a greater impact on economic variables and was
particularly marked in total assets (Chart 2).
Chart 2
Impact of the change in the non-financial corporate sector:
number of corporations, total assets and total income –
relative difference as a percentage
0%
As regards assets, the increase in the balance sheet of nonfinancial corporations is determined by an increase in financial
investments, partially offset by a decrease in non-financial
fixed assets, inventories and biological assets.
In equity and liabilities, the increase in the balance sheet results from growth in the components equity and other liabilities, offsetting the decrease in obtained funding (Chart 4).
Chart 4
Breakdown of the change in the balance sheet in 2013, by
instrument – EUR millions
8.000
-5%
6.000
4.000
-10%
2.000
0
-15%
-2.000
-4.000
-20%
-6.000
Total
-25%
2006
2008
2010
Number of corporations
Total assets
2012
Total income
The redefinition of the population of non-financial corporations had a particularly relevant impact on the aggregates
“public corporations” and “non-financial holdings”, “trade”
and “other services” (Chart 3). In private corporations, the
impact of the reclassification on “trade” and “other services”
was more significant until 2010, when corporations with
their head office in the Madeira Free Trade Zone started to
relocate. Following the implementation of ESA 2010, a significant share of these corporations was reclassified in the
financial sector.
Chart 3
Change in the non-financial corporate sector - total assets by
sector, EUR millions
Non-financial
fixed assets,
inventories
and biological
assets
Financial
Trade debtors Cash and bank Other assets
investments
deposits
8.000
6.000
4.000
2.000
0
-2.000
-4.000
-6.000
Credit inst. Participated
and fin.
and
Corp. and participant
securities companies
market
Total
Equity
Obtained funding
Other
funders
Trade
creditors
Other
liabilities
The capital ratio (equity / total assets) of non-financial corporations in Portugal went from 32.5% in 2012 to 33.3% in 2013.
700.000
The increase in the capital ratio was felt in the majority of the
economic activities, with the exception of “non-financial holdings”.
600.000
500.000
400.000
300.000
200.000
100.000
0
2006
2012
2006
2012
2006
Public corporations Private corporations
not included in the
general government
sector
Public vs. private corporations
2012
Trade
2006
2012
Other services
2006
2012
Non-financial
holdings
More affected economic activities
ESA 95
ESA 2010
Balance-sheet structure
The total balance sheet of non-financial corporations in Portugal increased by EUR 3 779 million in 2013, accounting for a
change of 0.7% from the previous year.
“Small and medium-sized corporations” recorded a capital
ratio of 28.7%, 1.9 p.p. more than in 2012.
The capital ratio of “large corporations”, albeit higher than
that of “small and medium-sized corporations”, decreased by
1.4 p.p. to 33.4%.
According to available information, in 2014 the capital ratio of
non-financial corporations increased again, standing at 34.1%
at the end of the first half of the year. This increase was
broadly-based across all sectors of activity, with the exception
of “transportation and storage” (Chart 5).
STATISTICAL PRESS RELEASE • October 2014
Chart 6
EBITDA / (equity + obtained funding) – as a percentage
Public vs.
private
corporations
Public vs.
private
corporations
Chart 5
Equity / total assets – as a percentage
3
Private corporations
Public corporations (1)
Private corporations
Public corporations (1)
Non-financial holdings
Private corporations by economic activity
Other services
Transportation and storage
Trade
Construction
Industry
Private
corporations
by size class (2)
Other services
Transportation and storage
Trade
Construction
Electricity, gas and water
Industry
Electricity, gas and water
Private
corporations
by size class (2)
Private corporations by economic activity
Non-financial holdings
Small and medium-sized corp.
Large corporations
Small and medium-sized corp.
TOTAL
Large corporations
2012
2013
jun 2014 0
jun 2014
0
5
10
15
(1) Public corporations not included in the general government sector
(2) Excludes non-financial holdings
TOTAL
2012
2013
10
20
30
40
50
60
(1) Public corporations not included in the general government sector
(2) Excludes non-financial holdings
The increase in the gross return on investment results from
developments in EBITDA. EBITDA grew by 17.8% from 2012
(up by EUR 4,648 million). All EBITDA components have contributed to this increase (Chart 7).
Information available for 2014 (year ended in the first semester) points to a decrease of 0.3 p.p. to 7.1% in the gross
return on investment.
Gross return on investment
5
In 2013 gross return on investment (EBITDA / capital in6
vested) of non-financial corporations increased by 1.1 p.p.
to 7.4% (Chart 6).
Nevertheless, the gross return on investment increased in
“industry”, “electricity, gas and water” and “non-financial
holdings” and, by size, in “small and medium-sized corporations”.
The contraction in “other services” and, by size, in “large
corporations” is partly the result of an ongoing restructuring
in the telecommunications sector.
5
EBITDA stands for earnings before interest, tax, depreciation and amortisation.
6
Capital invested is the sum of equity and obtained funding.
4
STATISTICAL PRESS RELEASE • October 2014
Chart 7
Breakdown of the change in EBITDA in 2012 and 2013 by
instrument – EUR millions
Chart 8
Interest expenses / obtained funding (as a percentage) and
EBITDA / interest expenses ratio
6.000
6,0
4.000
5,0
2.000
jun 2014
0
Interest
expenses /
obtained
funding
-2.000
2013
2011
2012
2012
2011
4,0
2013
jun 2014
-4.000
3,0
1,0
-6.000
Sales margin*
Staff costs
2012
Other
expenses
2,0
Other income
4,0
3,0
EBITDA/interest expenses
Small and medium-sized corp.
5,0
6,0
Large corporations
2013
* Sales margin = Turnover – costs of goods sold and material consumed –
external supplies and services
Cost of obtained funding and financial
pressure
The cost of obtained funding (interest expenses / obtained
funding) remained virtually stable from 2012 to the end of
the second quarter of 2014 (around 4.3%). In 2013 financial
7
pressure decreased as a result of an increase in EBITDA and
a decrease in interest expenses. The ratio of EBITDA to interest expenses went from 2.7 in 2012 to 3.3 in 2013. However,
this improvement was partly reversed. In the year ended in
the first half of 2014, the ratio stood at 3.1.
The cost of obtained funding of “small and medium-sized
corporations” went from 4.2% in 2012 to 3.9% in 2013 and
decreased further in the first half of 2014 to 3.8%.
The financial pressure on “small and medium-sized corporations” also declined. The ratio of EBITDA to interest expenses
went from 1.7 in 2012 to 2.8 in 2013 and 2.9 at the end of
the first half of 2014.
Opposite developments were observed in “large corporations”: the cost of obtained funding increased in 2013 and
recorded further growth in the year ended in the first half of
2014. The financial pressure also increased (Chart 8).
7
Percentage of EBITDA absorbed by interest expenses, the reverse of the
EBITDA / interest expenses ratio.
Days accounts payables and days
accounts receivables
In 2013 days accounts payables and days accounts receivables decreased by 3 and 2 days respectively, standing at 72
days for days accounts payables and 69 days for days accounts receivables at the end of the year.
According to available information, the differential between
days accounts payables and days accounts receivables also
decreased for the year ended in the first half of 2014 (Chart
9).
Chart 9
Days accounts payables and days accounts receivables (days)
80
70
60
50
40
30
20
10
0
Mar
Jun
Sep
Dec
Mar
Jun
Sep
Dec
Mar
Jun
Sep
Dec
Mar
Jun
Sep
Dec
Mar
Jun
Sep
Dec
Mar
Jun
Sep
Dec
Mar
Jun
Sep
Dec
Mar
Jun
EBITDA
2007
2008
Differential
2009
2010
2011
Days accounts receivables
2012
2013
2014
Days accounts payables
Although the differential between days accounts payables
and days accounts receivables has decreased, net financing
8
by trade creditors as a percentage of total assets remained
stable, around -2% for 2013 and the first half of 2014 (Chart
10).
8
This corresponds to the differential between the trade creditors balance
and the trade debtors balance.
STATISTICAL PRESS RELEASE • October 2014
Chart 10
Share of trade creditors and trade debtors in total assets (as
a percentage)
14
12
10
8
6
4
2
0
-4
Mar
Jun
Sep
Dec
Mar
Jun
Sep
Dec
Mar
Jun
Sep
Dec
Mar
Jun
Sep
Dec
Mar
Jun
Sep
Dec
Mar
Jun
Sep
Dec
Mar
Jun
Sep
Dec
Mar
Jun
-2
2007
2008
Differential
2009
2010
2011
Trade creditors
2012
2013
Trade debtors
2014
5