1. European family business barometer
Embracing innovation
Seventh edition
Patrick De Schutter
— Brussels, November 6th 2018

2. Welcome to the seventh edition
of the European Family Business Barometer, a collaboration between European Family Businesses (EFB) and KPMG Enterprise.
Our annual survey 1,576 responses from family business owners across 26 countries in Europe.
Family businesses revealed that they are confident about the future but must become more agile, innovate faster and attract top talent to remain competitive and continue to grow.

3. Respondents’ profiles
Which generation of your family is currently involved in the business
Concerning the ownership structure of your business...
How long has your business been operating with family ownership?
Approximately how many people do you employ? (the equivalent of full‑time employees)
Regarding ownership:
What is the percentage of the family ownership
1st generation 36%
Less than 20 years 16%
100% 74%
Less than 50 35%
25% – 49% 4%
50 – %
2nd or 3rd generation 49%
20 – 50 years 43%
250 – 1,000 18%
Less than 25% 1%
4th plus generation 13%
More than 50 years 39%
More than 1,000 12%
50% – 99% 19%
What is the approximate annual turnover of the business?
Are you a… ?
Regarding governance:
Is your family business?
1st generation 33%
Listed 3%
Less than € 10m 35%
Non family member 16%
€ 10 – 50m 27%
2nd or 3rd generation 49%
Non-listed /
privately held 94%
€ 50 – 200m 20%
Family member 84%
4th plus generation 13%
More than € 200m 13%

4. How do you feel about your family business’ economic perspective over the next 12 months?5 1

5. How do you feel about your family business’ economic perspective over the next 12 months?
Very confident
16%
Confident
57%
Neutral
20%
Negative 6%
26%
58%
11% 5%
Belgium

6. How did your turnover develop within your family business over the last 12 months?5 1

7. Europe
How did your turnover develop within your family business over the last 12 months?
Increased between 0-50%
60%
Increased more than 50% 4%
Maintained turnover
24% 6 7 8
Decreased turnover
11%
Belgium
Increased between 0-50%
58%
Increased more than 50% 5%
Maintained turnover
32% 6 7 8
Decreased turnover 5%

8. Europe
How did you staff numbers develop within your family business over the last 12 months?
Increased
54%
Maintained
35%
10%
Decreased 6 7 8
Belgium
Increased
53%
Maintained
37%
Decreased
10% 6 7 8

9. Europe
How did your activities abroad develop within your family business over the last 12 months?
Increased
36%
Maintained
30% 4%
Decreased 6 7 8
28%
No activities abroad
Belgium
Increased
58%
Maintained
11%
Decreased
10% 6 7 8
No activities abroad
21%

10. What are the major issues your family business is facing right now?5 1

11. What are the major issues your family business is facing right now
What are the major issues your family business is facing right now? (contd.) 5 1

12. What are your Family Business priorities for the next 2 years?5 1

13. What are your Family Business priorities for the next 2 years. (contd5 1

14. Does your strategic plan include investments in?
Core business
Innovation and technology
Recruitment and training
Diversification
Internationalization
86%
83%
81%
61%
54%

15. Is sustainability part of your company's future strategy?
Europe
Is sustainability part of your company's future strategy?
Yes
80% No
13%
No answer 6% 6 7 8
Belgium 6 7 8
Yes
89% 5 No
11% 2 3 4
No answer 0% 1

16. Which of the following financing options do you consider the most attractive over the next 12 months? 5 1

17. Sale of business in next 3 years
Passing your management to next generation
Are you considering…
53%
Passing your governance to next generation
50%
Yes
53%
Passing your ownership
to next generation
Appointment of
non-family CEO
33%
12%
Sale of business in next 3 years
88%
15%
15%
15%
To third party
To employees
To family
To IPO 5 1

18. Europe
Do you think the fact that people are generally living longer has impacted the way you plan for succession in your business?
Yes
29% No
60%
No answer
11% 6 7 8
Belgium
Yes
16% No
79%
No answer 5% 6 7 8 5 1

19. Belgium Specific Questions

20. How do you feel about the recently enacted corporate tax reform?
63%
32% 5%
Positive
Neutral
Negative

21. How do you feel about the announced reform of the inheritance tax legislation?
42%
53% 5%
Positive
Neutral
Negative

22. Do you plan to transfer the company to the next family generation?
Yes
Yes
47% No No
26%
Not decided yet
27%
Yes No

23. Do you believe Belgium has become a more competitive country over the last 5 years?
Yes
Yes
58% No No
42%
Yes No

24. Thank you for your attention