1. CZECH STATISTICAL OFFICE | Na padesatem 81, 100 82 Prague 10 | www.czso.cz Vladislava Korbelová DELINEATION OF STATISTICAL UNITS AND TESTING PROFILING: SO FAR EXPERIENCE How to compile statics on global enterprises Luxembourg, 3-5 March 2015 – BECH A3/015

2. 2 ■Input files defining the population and structure of GEG and DEG are the basis for the use of new statistical units in business statistics ■Current quality and topicality of the both files is not good ■Some figures from the EGR file for the Czech Republic: ■28 units are missing EU_LEU_ID ■1143 units are missing NSA_ID ■218 units are missing NACE ■385 units are missing GLOBAL_EG_NAME/ GDC_EU_LEU_ID/ GDC_COUNTRY_CODE ■17 units are missing GEN_ID ■35 units are missing GEN_NACE ■10 units are missing TEN_NACE Quality of EGR file - missing characteristics

3. 3 ■The most serious missing attribute is EU_LEU_ID ■Without a primary identification key is a unit useless ■Unnecessary loss, because for 23 of the 28 units with missing EU_LEU_ID we were able to trace NSA_ID ■An interesting missing attributes are GLOBAL_EG_NAME/ GDC_EU_LEU_ID/ GDC_COUNTRY_CODE ■Common denominator of these units is that they are controlled by the general government sector (S13) ■Central or local government ■Not determined GDC Quality of EGR file – remarkableness

4. 4 ■Inconsistent form of indicators ■For example TEN_ID ■CZ _ 900000813101 ■CZ100984045201 ■CZ9039465053-02 ■CZ9087071779 ■Using spaces „CZ _ “ can cause problems in combination with a program with automatic formatting of cells (MS Excel) Quality of EGR file – Form of indicators

5. 5 ■Joint Venture ■In the first record is like GDC identified group, which co-founded a joint venture and in the second case is the GDC headquarters of the joint venture in Czech Republic ■What is the approach in determining the GDC for the joint venture? ■Equated GDC with headquarters of joint venture is against FATS and EGR manual Methodologically interesting duplicates

6. 6 ■Date determines the structure of the group ■The unit changed the senior owner from one enterprise group to another in the second half of 2012 ■Therefore, there are two records for both the original and new owner (both with the same EU_LEU_ID) ■What date determines the structure of the group for a given year? ■We use state of the group structure to 31.12. Methodologically interesting duplicates

7. 7 ■Added 1130 missing NSA_ID from NSI BR ■45 duplicates resolved ■Removing units with the missing EU_LEU_ID (28) ■Removing units not belonging to Czech Republic (7) ■Removing completely mysterious units (3) ■Removing units without legal personality – can´t be LeU (6) ■Removing units outside SBS 2012 - governmental, non-profit (779) ■Removing inactive units - no revenues or no employment (74) Cleaning of the EGR file: finished work

8. 8 ■Comparison LeU NACE from EGR and Czech SBS ■ 16% mismatch ■Comparison GDC from EGR and UCI from Czech iFATS ■30% mismatch ■EGR error or iFATS error ■Natural persons as owner ■Empty shell in EGR ■17 groups from Cyprus, 115 groups from the Netherlands ■many of them are Czech groups with empty shell as GGH ■Comparison Number of persons employed between EGR and Czech SBS ■Reprofiling of the adjusted EGR file? Improving the EGR file: ongoing / future work

9. 9 ■Status of the financial corporations (S12) ■Only part of the financial corporations have the same type of accounting as non-financial corporations ■It is difficult to obtain from them the full range of data and indicators necessary for automatic consolidation ■How to approach groups containing these units? Thinking about potential problems 1

10. 10 ■Status from NACE 01 – Crop and animal production, hunting and related service activities ■LeUs from NACE 01 often performs the role of auxiliary or upstream units in the group ■These units are not covered by Czech SBS ■Czech Statistical Office has only a limited number of indicators from administrative sources, which are not sufficient for automatic consolidation Thinking about potential problems 2

11. 11 ■High level of file changes over time ■255 units of 4829 units, consider to be economically active in Czech SBS 2012, ended their economic activity from 2012 until the end of 2014 ■Level of changes over time indicates the potential high personnel and time costs to update file and keeping the systems running Thinking about potential problems 3

12. 12 ■Medium-sized groups ■Large group come through intensive profiling and consolidation / small groups come through automatic profiling and consolidation ■What about medium-sized groups that are too complex for automatic profiling and too small for desk / intensive profiling? ■Great risk of increased burden Thinking about potential problems 4

13. 13 ■During the investigation files GEG and DEG, we discovered a potentially new relationships between the LeUs in the group ■Upstream/Downstream/Support - raw materials for power plants ■U: 0510/0520/0610/0620 D: 3511 S: 3512/3513/3514 ■U: 0510/0520/0610/0620 D: 3530 ■„Reverse“ sale activity – first LeU purchasing raw material for second one production ■For example: Sale 4672 / Production 2573 ■Production unit as support for retail sale ■For example: Support 1071 / Retail sale 4711 New relationships between LeUs?

14. CZECH STATISTICAL OFFICE | Na padesatem 81, 100 82 Prague 10 | www.czso.cz Thank you for your attention