www.pwc.com/ceosurvey

January 2016

19th Annual Global CEO SurveyKey Findings – Finland

PwC

Global survey is based on interviews with 1409 CEOs from 83 countries during Q4 2015

Slide 2

North America(10%)*

South America(12%)

Western Europe(22%)

Middle East & Africa(10%)

CEE(12%)

Asia Pacific(34%)

* Percentage of interviews per continent

PwC

The Finnish CEOs represented both private and listed companies. The total number of participants was 35.

Slide 3

2

38

60

0

46

54

Don't know/ refused

Publicly listed

Privately owned

Ownership of firm (%)

Base 2016: All respondents (Finland = 35; Global = 1,409)

5

28

38

25

5

0

14

40

43

3

Not stated

Up to $100 million

$101-$999 million

$1-$10 billion

More than $10 billion

Revenue (%)

Growth

PwC

Global CEO short-term confidence in growth has fallen

Slide 5

Do you believe global economic growth will improve, stay the same, or decline over the next 12 months? How confident are you about your company’s prospects for revenue growth over the next 12 months?

31%

41%

52%50%

21%

31%

48%

40%

36%39%

39%35%

14%18%

44%

37%

27%

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

CEOs very confident in own business growth CEOs confident global economy will improve

Base: All respondents (2016= 1,409; 2015=1,322; 2014=1,344; 2013=1,330; 2012=1,258; 2011=1,201; 2010=1,198; 2009=1,124; 2008=1,150; 2007=1,084)

PwC

Finnish CEOs are still pessimistic regarding improvement of global economy, but are increasingly optimistic regarding growth of their own companyDo you believe global/Finnish economic growth will improve, stay the same, or decline over the next 12 months?How confident are you about your company’s prospects for revenue growth over the next 12 months?

Slide 6

31%

41%

52%50%

21%

31%

48%

40%

36%39%

39%

35%

14%

18%

44%

37%

27%18%

28%

21%

37%

5%

47%

29%

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

CEOs very confident in own business growthCEOs confident global economy will improveFinnish CEOs very confident in own business growthFinnish CEOs confident global economy will improve

Base: All respondents (2016= 1,409; 2015=1,322; 2014=1,344; 2013=1,330; 2012=1,258; 2011=1,201; 2010=1,198; 2009=1,124; 2008=1,150; 2007=1,084)Finland (2016 = 35, 2015=38, 2014=43, 2012=40; year 2013 missing)

PwC

Confidence in growth of the own company is highest in India. The Finnish confidence is now on global average level.

Slide 7

Global 39%

Confidence vs. 2015:IncreasedDecreased

64%

26%

India

Russia

Argentina

Brazil

Mexico

US

Canada

Australia

China

Germany

Spain

UK

Italy

South Africa

42%

24%38%

24%

28%

54%

20%

20%

37%

FinlandSweden36% 37%

31%

33%

46%

How confident are you about your company’s prospects for revenue growth over the next 12 months?Respondents who stated ‘very confident’

PwC

0

3

15

47

35

3

6

20

34

37

Don't know/refused

Not confident at all

Not very confident

Somewhat confident

Very confident

1

3

12

45

39

0

5

18

55

21

Don't know/refused

Not confident at all

Not very confident

Somewhat confident

Very confident

Finland Global

While confidence among Finnish CEOs has increased, one in four is still not confident on growth for their companies

Slide 8

How confident are you about your company’s prospects for revenue growth over the next 12 months?

(%)2016 2015

2015 Base: Finland (38); Global (1,322)

PwC

Finnish CEOs are planning less cost-reduction initiatives and more M&A activities than last year

Slide 9

2015 Base: Finland (38); Global (1,322)

Which, if any, of the following restructuring activities do you plan to initiate in the coming 12 months?

(%)2016 2015

3

11

17

25

42

28

42

61

9

11

23

31

43

43

43

63

End an existingstrategic alliance or

joint venture

Sell majorityinterest in a

business or exit asignificant market

Insource apreviouslyoutsourced

business process…

Complete adomestic M&A

Enter into a newstrategic alliance or

joint venture

Outsource abusiness process or

function

Complete a cross-border M&A

Implement a cost-reduction initiative

8

13

14

27

29

31

51

71

8

16

13

32

26

29

37

89

End an existingstrategic alliance or

joint venture

Sell majority interestin a business or exita significant market

Insource apreviously

outsourced businessprocess or function

Complete a cross-border M&A

Complete adomestic M&A

Outsource abusiness process or

function

Enter into a newstrategic alliance or

joint venture

Implement a cost-reduction initiative

PwC

Finnish CEOs see more opportunities in 2016 than 2015

Slide 10

To what extent do you agree or disagree with the following statements about threats and opportunities facing your business? Respondents who stated ‘agree’ or ‘agree strongly’

59

61

82

53

Finland Global

66

60

69

60

There are more threats to thegrowth of my company today than

there were 3 years ago

There are more growthopportunities for my company than

there were 3 years ago

2016 2015

2015 Base: Finland (38); Global (1,322)

(%)

PwC

In 2016, almost as many Finnish companies plan to increase as to decrease headcount. Last year plans to decrease outnumbered plans to increase almost by 2:1.

Slide 11

Decrease47%

Stay the same29%

Increase24%

Finland

Decrease31%

Stay the same40%

Increase29%

2016

Decrease21%

Stay the same28%

Increase50%2015

Decrease21%

Stay the same30%

Increase48%2016

2015

Global

Do you expect headcount at your company to increase, decrease or stay the same over the next 12 months?

2015 Base: Finland (38); Global (1,322)

PwC

9

8

11

5

19

5

34

39

3

3

9

9

11

14

23

29

India

Brazil

UK

Russia

Germany

Japan

China

USA

The importance of China and Japan for growth prospects is increasing

Slide 12

Which three countries, excluding the one in which you are based, do you consider most important for your overall growth prospects over the next 12 months? (maximum of 3 responses were provided)

(%)2016 2015

2015 Base: Finland (38); Global (1,322)

9

8

10

11

34

6

19

38

5

5

8

11

13

18

24

24

India

Japan

Brazil

UK

China

Russia

Germany

USA

Main concerns and expectations for government

PwC

CEOs see over-regulation as the top threat to companies’ growth prospects. Finnish CEOs consider geopolitical uncertainty as the most serious concern.

How concerned are you about the following potential economic, policy and social threats to your organization's growth prospects? Respondents who stated ‘extremely’ or ‘somewhat concerned’ . Change vs. 2015 figures is indicated in parenthesis (“+” = Increased from 2015, “- “=Decreased from 2015, N/A= Data was not available last year)

Slide 14

Geopolitical uncertainty

Over-regulation

71%(-8)

Availability of key skills

Exchange rate volatility

Government response to fiscal deficit and debt

burden

69%(-10%)

Finland(N=38)

79%(+1%)

71%(-1%)

72%(-1%)

74%(+2%)

Global(N=1,322)

Increasing tax burden

77%(-2%)

63%(N/A)

73%(N/A)

57%(-9%)

41%(-38%)

69%(-1%)

2015 Base: Finland (38); Global (1,322)

PwC

A skilled, educated and adaptable workforce is seen as the most important priority for the government by Finnish CEOs

Slide 15

19

10

25

17

13

41

50

56

53

0

3

6

9

9

57

60

60

86

Greater income equality

Safeguards around usage of personal data

Reduced environmental impacts

Good health and well-being of the workforce

Workforce diversity and inclusiveness

High levels of employment

Adequate physical and digital infrastructure

A clearly understood, stable and effective taxsystem

A skilled, educated and adaptable workforce

Finland Global

Which three of these outcomes do you think should be government priorities, in the country in which you are based? (Maximum of 3 responses were provided)

(%)

PwC

Employment and effective tax system stand out as important but in-effectively managed in Finland

Slide 16

-100

-80

-60

-40

-20

0

20

40

60

80

100

0 50 100

Net score

A skilled, educatedand adaptable workforce %

Reduced environmental impacts

High levels of employment

A clearly understood, stable and effective tax system

Greater income equality

Good health and well-being of the workforce

Workforce diversity and inclusiveness

Safeguards around usage of personal data

% of CEO mentioned as government priority

Net

sat

isfa

ctio

n sc

ore*

*Net satisfaction score is calculated according to the formula below for each question:

Net Satisfaction = (Respondents who stated ‘Greatly effective’ or ‘effective’)-(Respondents who stated ‘Greatly ineffective’ or ‘ineffective)

Adequate physical and digital infrastructure

Dissatisfied, not but important

Dissatisfied, important

Satisfied, but not important

Satisfied, important

PwC

A stable tax system is seen as more important than low rates of tax by almost 80% Finnish CEOs

Slide 17

With wider stakeholder expectations in mind, to what extent would you agree with the following statements on tax? Respondents who stated ‘Agree strongly’ or ‘Agree

48

73

71

67

87

43

60

71

77

86

Our board is actively involved in determining the business’ tax strategy

Reducing the burden of tax administration is asbeneficial as reducing the rates of tax

Our business‘ approach to tax and tax transparency affects our reputation

A stable tax system is more important than lowrates of tax

Tax is a business cost that needs to be managedefficiently (as per other business costs)

Finland Global

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Please contact

Hannu SuonioPartner, Advisory LeaderPwC Finland

Tel. +358 40 511 9324hannu.suonio@fi.pwc.com

www.pwc.fi/ceo