geneva – 18/19 june 2007 eurogroups register a pilot study for eurostat to create a register of...

Geneva – 18/19 June 2007

EuroGroups Register

A pilot study for Eurostat to create a register of multinational enterprise

groups

John Perry – UK ONSBarry Coenen – CBS Netherlands

CONSORTIUMCONSORTIUM

This project was carried out for the European Commission by This project was carried out for the European Commission by a consortium led by Harrie van der Ven (CBS) comprising :a consortium led by Harrie van der Ven (CBS) comprising :

• Office for National Statistics (ONS)Office for National Statistics (ONS)• Statistisches Bundesamt (DeStatis)Statistisches Bundesamt (DeStatis)• Statistics Hungary (KSH)Statistics Hungary (KSH)• Statistics Netherlands (CBS)Statistics Netherlands (CBS)• Sogeti Luxemburg SASogeti Luxemburg SA

This consortium delivered the product to Eurostat at the end This consortium delivered the product to Eurostat at the end of December 2006. of December 2006.

Aims of projectAims of project

To create a working system using dual To create a working system using dual private sector sourcesprivate sector sources

Delineating multinational enterprise Delineating multinational enterprise groups with group members within the EUgroups with group members within the EU

For 600 enterprise groupsFor 600 enterprise groups

Identifying issues for full implementationIdentifying issues for full implementation

MAIN RESULTSMAIN RESULTS The project demonstrated the elements of the required The project demonstrated the elements of the required

infrastructure to create and maintain a EuroGroups register infrastructure to create and maintain a EuroGroups register (EGR) through(EGR) through::

Creation of an Oracle database systemCreation of an Oracle database system

Importing data from two private sector suppliers, Importing data from two private sector suppliers, Bureau van Dijk and Dun and Bradstreet.Bureau van Dijk and Dun and Bradstreet.

Transforming country, legal form, industrial Transforming country, legal form, industrial classifications, national identifiers and dates to a classifications, national identifiers and dates to a standard formstandard form

Linking source data through national identifiers Linking source data through national identifiers and legal namesand legal names

MAIN RESULTS MAIN RESULTS (continued)(continued)

Communication standards for transmission to and Communication standards for transmission to and receipt from Member States for legal units and receipt from Member States for legal units and their relationshipstheir relationships

Providing views of global and national enterprise Providing views of global and national enterprise group clustersgroup clusters

Consolidating enterprise groupsConsolidating enterprise groups

It has created an integrated database for 600 It has created an integrated database for 600 multinational groups, their group members and multinational groups, their group members and the relationships, both control and percentage the relationships, both control and percentage ownership, between the members.ownership, between the members.

The current version of the EGR is scaleable.The current version of the EGR is scaleable.

Some design principlesSome design principles

Basis: use of sources with (maximal) global Basis: use of sources with (maximal) global coveragecoverage

Use of ‘National ID’s’ as basis for linkage of unitsUse of ‘National ID’s’ as basis for linkage of units Data integration: steered by flexible preference Data integration: steered by flexible preference

rules (source, time lag, attribute)rules (source, time lag, attribute) Cyclic process driven by changes (in pilot yearly)Cyclic process driven by changes (in pilot yearly) Series of processes (with feedback to Series of processes (with feedback to

administrator)administrator) Delineation of groups: concept of controlDelineation of groups: concept of control

Import Source Dun & Bradstreet - Bureau van Dijk

MAIN PROCESSMAIN PROCESS

Source Source datadata(number of legal units)(number of legal units)

CountryCountry BvDBvD DnBDnB TotalTotal

DEDE 1244812448 56165616 1806418064

HUHU 595595 440440 10351035

NLNL 67906790 49344934 1172411724

UKUK 1564415644 1107011070 2671426714

Other EU/ Other EU/ EFTAEFTA

2738127381 1562615626 4300743007

Rest of Rest of WorldWorld

1987119871 1734517345 3721637216

Import Source

Transform source


Import Source

Transform source

Link sources


Import Source

Transform source

Link sources Com case 1


Communication case 1Communication case 1

Country checks own unitsCountry checks own units

Confirms existence and may correct Confirms existence and may correct national IDnational ID

Identifies units that are dead (why Identifies units that are dead (why and when)and when)

Some results Communication case 1Some results Communication case 1

CountryCountry BvD & DnB BvD & DnB linked linked

automatically automatically

ResultingResulting

consolidated consolidated recordsrecords

Live on Live on national national registerregister

DEDE 63%63% 1503215032 --

HUHU 92%92% 875875 831831

NLNL 99%99% 82808280 75207520

UKUK 99%99% 1902519025 1575015750

Import Source

Transform source

Link sources

Create relationships


Import Source

Transform source

Link sources

Create relationships Com case 2


Communication Case 2Communication Case 2

Country checks upward linksCountry checks upward links Country checks downward links, where not in EUCountry checks downward links, where not in EU Country must confirm control relationshipsCountry must confirm control relationships Preliminary cluster and global group provided to Preliminary cluster and global group provided to

NSINSI The country with the largest national truncated The country with the largest national truncated

group within a global group takes responsibility group within a global group takes responsibility

for checking the global groupfor checking the global group Checks NACEChecks NACE Checks employment etcChecks employment etc

Some results Communication case 2Some results Communication case 2

CountryCountry NACE NACE present in present in

both – 2 both – 2 digit digit

differsdiffers

RelationshipsRelationships

To be To be removed removed from EGRfrom EGR

Same Same parentparent

Same Same subsidiary subsidiary

different different parentparent

New to New to national national registerregister

To be To be added added to EGRto EGR

DEDE 44%44% -- -- -- -- --

HUHU 27%27% 117117 1515 8686 815815 55

NLNL 24%24% 902902 41204120 23062306 18711871 652652

UKUK 18%18% 35423542 88348834 228228 19271927 --

Import Source

Transform source

Link sources


Final control cluster


Import Source

Transform source

Link sources


Final control cluster

Final group


Two ExamplesTwo Examplesof checking of checking

by member statesby member states

Oceantech Ltd Dun & Bradstreet

1 - Oceantech LTD GB

2 - Ocean Technical Systems LTD GB

6 - Submarine Technology LTD GB 7 - Oceantech Marine LTD GB 8 - Oceantech-Datawatt LTD GB

3 - Trans Ocean Trading LTD GB

4 - Datawatt International BV NL

5 - Datawatt BV NL

Oceantech Ltd – Bureau van DIJK

1 – Oceantech Public Limited Company GB

2 - Ocean Technical Systems Limited GB

4 – Datawatt International BV NL6 - Submarine

Technology Limited GB7 - Oceantech Marine Limited GB

3 - Trans Ocean Trading Limited GB

8 - Oceantech-Datawatt Limited GB

5 – Datawatt BV NL

Oceantech Ltd – Integrated

Dun & Bradstreet is preferred source for link



6 - Submarine Technology LTD GB 7 - Oceantech Marine LTD GB 8 - Oceantech-Datawatt LTD GB



5 - Datawatt BV NL


UK checks links 3 -2, 2-1, 6-1, 7-1 and 8-1



6 - Submarine Technology LTD GB

7 – Oceantech Marine LTD GB

8 - Oceantech-Datawatt LTD GB



5 - Datawatt BV NL


NL checks links 5-4 and 4-2



6 - Submarine Technology LTD GB

7 - Oceantech Marine LTD GB 8 - Oceantech-Datawatt LTD GB



5 - Datawatt BV NL

Risol Imports Ltd – Dun & Bradstreet

1 – Risol Imports LTD GB

2 – Regatta LTD GB 6 - Timescale LTD GB

3 – Regatta GmbH DE 4 – Regatta Ltd NL 5 –RGO Retail Ltd GB

Risol Imports Ltd – Bureau van Dijk

Keith J Black (7) owns 66.03% of 1

7 - Keith J Black (natural person)


2 – Regatta LTD GB

3 – Regatta GmbH DE 5 –RGO Retail Ltd GB

6 - Timescale LTD GB

Risol Imports Ltd – Integrated




3 – Regatta GmbH DE4 – Regatta Ltd NL


5 –RGO Retail Ltd GB


UK checks 1 -7, 2 – 1, 6 -1, 5 - 2








DE checks 3-2








NL checks 4 - 2







US

DE

GB

FR GB

AU

GLOBAL CLUSTER OF CONTROL

US

GB

GB

AU

DE

FR

NATIONAL GROUP STRUCTURE (EU)

US

GB

GB

AU

DE

FR

GLOBAL GROUP

TWO VIEWS ON THE GROUPSTWO VIEWS ON THE GROUPS

The next two slides show a part of the data The next two slides show a part of the data in the pilot database of the EGRin the pilot database of the EGR

• Slide 1: country view of a global enterprise Slide 1: country view of a global enterprise groupgroup

• Slide 2: legal structure view of a global Slide 2: legal structure view of a global enterprise groupenterprise group

Note: the data are from publicly available sources and do not contain data checked by statistical offices

ConclusionsConclusions Project demonstrated the elements of the Project demonstrated the elements of the

required infrastructure to create the EuroGroup required infrastructure to create the EuroGroup RegisterRegister

National ID is essential for automated linkage – National ID is essential for automated linkage – minimises clerical resourceminimises clerical resource

Control relationships form the definitive part of Control relationships form the definitive part of the systemthe system

An EGR will improve national systemsAn EGR will improve national systems

Single data source likely to produce incomplete Single data source likely to produce incomplete systemsystem

Conclusions Conclusions (continued)(continued)

Feedback from national systems is not essential but will Feedback from national systems is not essential but will improve the quality of the EGRimprove the quality of the EGR

Meta data are essential and should be maintained centrallyMeta data are essential and should be maintained centrally

Legal unit may not be the appropriate level to provide valid Legal unit may not be the appropriate level to provide valid economic dataeconomic data

Rules for treatment of natural persons, Special Purpose Rules for treatment of natural persons, Special Purpose Entities, decision centres and branches should be agreedEntities, decision centres and branches should be agreed

Feedback to private data suppliers is required for the Feedback to private data suppliers is required for the completeness of the system (legal and policy constraints)completeness of the system (legal and policy constraints)


System is complex and further development System is complex and further development requires co-operation with senior users - requires co-operation with senior users - Communication in the project with users showed Communication in the project with users showed that requirements are not always clearthat requirements are not always clear

Resources with funding are necessary both in Resources with funding are necessary both in Eurostat for the development and management of Eurostat for the development and management of the central systems and in Member States for the the central systems and in Member States for the management of the local systems and the linking management of the local systems and the linking proceduresprocedures

Consistency over time will be difficult to achieve Consistency over time will be difficult to achieve without continuity of private sector supplier without continuity of private sector supplier contractscontracts


Accurate time-stamping is needed to deliver quality efficiently

Agreeing quality measurement

Keeping up with developing user needs

Organisational issuesOrganisational issues Involvement of stakeholders to identify their

needs

Definition of roles and responsibilities of different parties (in particular, who is responsible for quality of a group)

Ensuring that the necessary skills and controls are in place

Provision of leadership in the further development

geneva – 18/19 june 2007 eurogroups register a pilot study for eurostat to create a register of...

Documents

multinational groups

national identifiers

group members

legal form

national statistics

legal names

legal units

implementation slide