1. Main findings of Finpro 09 Pulse Survey
Executive Summery in Logistic sector
Finpro CSE
January-February, 2009

2. 1. Background & investigated areas
Background
• Finpro CSE has contacted the relevant associations and major companies in
• Construction,
• Logistics &
• Machinery sector
• The geographical coverage was Central and Southeast Europe, as in following countries
• Austria
• Czech Republic,
• Slovakia
• Hungary
• Slovenia
• Croatia
• Serbia
• Romania
• Bulgaria
• Turkey
• Around 100 managers were interviewed
• The phone-based survey was conducted in February 2009.
• Special note: the Survey is not based on representative primary research, it just gave some
“feelings” & summarize some subjective thoughts from market players` point of views.
© Finpro ry / 2009

3. 2. Main findings from Finpro Pulse 09 survey
Pulse 09: Logistics
6,0
5,0
4,0
3,0
2,0
1,0
0,0
Performance Openness
Notes:
• Scaling at sector performance from 1 (deep recession) to 7 (healthy growth)
• Scaling at sector openness from 1 (no opportunities to launch new technologies & business model)
to 7 (lucrative business to come up with new technologies & business models)
© Finpro ry / 2009

4. 3. Major comments from the region
Country Sector performance Major problem in the sector Major opportunity in your
sector
Highly depended on production, There is very little to be The healthiest companies in the field
if no production available, transported and thence have an advantage and within the
absolutely no transportation nor overcapacity will mean on fierce year these companies will obtain a
logistics. There is currently competition and even can lead to much stronger position. However the
overcapacity and since there are unhealthy price competition in upcoming year will be challenging
little investments, the year will order to survive
be rather challenging Better situation cost vs. Prices,
Austria Uncertainty in the companies. improving cost structure and product
Business in the logistics industry Most of the expenses will be cut innovation. Lower cost, better
will be hard and difficult down, no additional transportation services and higher quality
of any other cost. Nobody knows
what is going on and there is
already a stop of investments
going on
Transportation will suffer the Highly qualified cheap workforce, Banks not supporting domestic
most, other areas of logistics not central position, 1-day delivery investments, so no domestic capital.
that much, but he expects 2009 time throughout the Europe On the other hand, opportunity for
to be much worse than 2008 foreign investors.
overall. Building of logistics Dependency of the sector, and the
centres is delayed until further whole CZ industry, on the No opportunities in this sector in CZ
Czech notice. automotive industry, which is not
doing good Larger and multinational companies
Republic
Very bad, getting worse can gain market shares if they have
Automotive industry and ceramics resources to invest to the market.
The sector is affected by the that have been strong in CZ are Consolidation and acquisitions are
financial downturn, but it varies pulling other sectors with them. expected.
from sub sector to another. In
general SME's are suffering. © Finpro ry / 2009

5. 3. Major comments from the region
Country Sector performance Major problem in the sector Major opportunity in your
sector
Very bad start Decrease of the business Central geographical
volume position,
Slovakia
Would be -30 or even -40
drop Improved infrastructure
10-15% decrease at major Uncertain future at electronics, to survive 2009 &
players, Radical drops at machinery & automotive, while consolidation in 2010,
SME's `long` stagnation at FMCG cluster-building at SME`s
Decreasing order stock, Financial issues (late Evaluation of logistics
main problems at automotive payments & cash flow companies opportunities,
& electronic service problems) at service providers, market re-positioning with
providers, FMCG would be while credit shortage at quick actions
Hungary
Ok. producers
More complex offering to
Too many players on the Closing production plants Clients
market --> acquisitions; late Price pressure --> offer on
payments --> cash-flow break-even points or going Cleaning the market &
problems at SME`s under a bit to keep the Clients consolidation
-20% drop at road transport
& -10-15% at rail transport
© Finpro ry / 2009

6. 3. Major comments from the region
Country Sector performance Major problem in the Major opportunity in
sector your sector
To get cargos from
Situation momentary. Future has several Dropping quantity of cargos
different areas (incl.
options, impossible to tell
The Middle East) that
Financial crisis impacts
currently are using
Hoping that this year is the same as last customers and in that way
Slovenia different ports
year but it's not going to be better for sure indirectly effects us
No new opportunities.
Doing the same as last
year.
-40% drop, financial problems at service less trade with Croatia, market consolidation,
Croatia providers financial problems introduction of new
business models
If administration and legal issues Differences between EU Central position, but
regarding foreign companies are not and domestic laws and first administrative
Serbia simplified, it'll do much more harm then legislations, infrastructure issues must be taken
the general crisis unable to support care of
developing economy
© Finpro ry / 2009

7. 3. Major comments from the region
Country Sector performance Major problem in the Major opportunity in your
sector sector
In 2009, for the logistic sector, the request Delayed payments, non- The companies will externalize
of the services will grow, but the volume of payments, longer terms of the logistical services to
the goods will decline. payment specialized companies in order
to be more efficient and to
-20% drop forecasted Decreasing the turn over, reduce costs. Due to this the
difficult to take loans from logistic companies will have
Romania 30% drop estimated for 2009; price/km the banks, the clients try to more clients event the volumes
went down (0.6- 0.7 Euro cent/km) delay the payments are reduce.
compared to the same time period of 2007-
2008; Big delays in payments; Accession of the UE Funds
difficulties in obtaining bank (Structural Funds)
loans;
Decrease in freight volumes because of Uncertain future Consolidation. Better offering to
drop in foreign trade and construction customers and more efficient
sector. Another problem is the uncertain Slowdown in related sectors management of the activities.
future of the main steel producer in Bulgaria - trade and construction
(about 20% of the total freight volume). More complex services and
Logistics sector will be more cost efficient operations.
Decreasing order stock due to slowdown in seriously affected if the
industry and construction sectors. Some crisis in construction sector
Bulgaria
small companies will close down their becomes deeper.
operations, which will give better
opportunities to big players in long term. Decrease of production
output. Decrease in
Lower transportation volumes because of container traffic.
difficulties in related sectors.
Very fragmented market -> consolidation is
© Finpro ry / 2009
expected.

8. 3. Major comments from the region
Country Sector performance Major problem in the Major opportunity in your
sector sector
Past two month 25% down -it Quotas- EU export will With annual 15% growth
will continue with negative be contracted heavily - performance in the past will
trend - very difficult year not enough support attract foreign investors to
from the government the sector-opportunity for
20-25 decrease - mergers ands acquisition
M&A –
consolidation - small Export-import
companies will disappear unbalanced - not
enough import goods Cost reduction - outsourcing
Turkey
20-25 decrease - 2007-2008 compared to export - tendency - need for
were golden years - increase in export warehouse -stockings
transport
Differentiated markets -
Quotas in EU - Big Middle east offering
logistic sector - harsh
price competition
© Finpro ry / 2009