Slovak CEO Survey 2015PwC and Forbes magazine surveyed how CEOs view prospects for thebusiness environment in Slovakia

Redefining the way of competing

www.pwc.com/sk/ceo-survey

80%expect their revenues to grow next year

47%started or considered doingbusiness in a new sector

121CEOs expressed theiropinion

2 Slovak CEO Survey 2015

Juraj PorubskýEditor-in-chief, Forbes Slovensko

Slovak CEOs trust in themselves. Despite the global economicsituation becoming more complex and a war conflict bursting East toour border, CEOs expect that their firms will do well and revenueswill grow. However, at the same time they recognise that the globaleconomy will not take them onto the wave of growth. So how to besuccessful?

The recent Slovak CEO Survey offers several recipes. After years ofrelative standstill, the share of CEOs considering mergers oracquisitions grows. Similarly, the growth has been recorded in thepercentage of CEOs who consider collaboration either with suppliersor customers. At the same time, business leaders in Slovakia areaware of the competition may also emerge from non-traditionalindustries.

Business is changing not only in Slovakia but also anywhere in theworld. Thanks to digital and mobile technologies, customersdiscover new hidden opportunities. Now, a car parking somewherefor 22 hours can be changed into an easily usable asset provided thatsomeone can simply find it and borrow it. An apartment that is freeduring weekends can be easily used as a hotel room. And manyother assets that you previously had to own can now be borrowedeasily - films, music, books.

Customers can make better use out of their limited resources and, atthe same time, satisfy their own needs. Their behaviour is changing.

Some goods and services have become a mass commodity whereonly the price and volume decide. Others are changing to becomepremium personal items offering experience, for the sake of whichpeople are willing to give up really much.

How can a business be successful at such time? CEOs understandthat they must continue controlling the costs. Even though they donot focus on this to the extent they did during the deepest economiccrisis, costs saving still remains number one priority in takingrestructuring actions. At the same time, CEOs understand thatdistinctive quality can be offered only by skilled people and that iswhy CEOs notify the government of the skill shortage.

The battle in the market will be sharpening. The doors thatglobalisation opens increase in number and even the industries thatused to be protected are not safe now. Who would believe that sometaxi service will be able to surpass the number of yellow cabs in NewYork within just a few months? And that happened.

If CEOs wish that their businesses to be successful, they will have tobe creative and look for opportunities wherever they might occur.They should use any help and collaborate also with competitorsbecause it is more often to be true in business that 1+1 not onlyequals two, but also equals three, ten or even a hundred, onlydepending on a proper combination.

Todd BradshawCountry Managing Partner, PwC Slovakia

I am pleased to present you the results of our Slovak CEO Surveywhich we have now run for six consecutive years. PwC has conductedthe same survey worldwide for 18 years. The findings from the surveyrepresent the "voice of CEOs" in the world, and it maps the trends thatare happening in business. It has been an inspiration for us to createthe same initiative in Slovakia and thus present a market study whichaims to act as a sort of a compass for executive managers in Slovakiaand can help them mould their strategic direction.

The main message of this year's CEO survey is cooperation andcollaborative partnerships. It's a trend that we witness in the world aswell as in Slovakia. Companies have begun to realise that their energyshould be focused primarily on those areas where they are good at andwhere they are the top performers. They are supporting the non-coreparts of their business through partnerships with various groups ofbusiness partners - from suppliers and customers through academia tostart-ups. This happens for several reasons: to gain access to newtechnologies, new customers, new geographic markets, and not leastto strengthen innovation and brand reputation.

It is also fascinating to watch the ‘disruptors’ and their impact ontraditional industries. The traditional business models are beingturned upside down and failure to be flexible and adapt can cost youyour market share. We see a continual fierce fight for customers whosebehaviour in today's digital age is changing dramatically. Innovationand the desire for growth are driving companies into sectors theypreviously did not operate in. Some examples from the market areGoogle selling smart phones; retailers offering telecommunicationservices or/and financial services; energy distributors offering homeinsurance; automotive companies offering financial services; gasdistributors selling energy and vice versa; etc.

My sincere thanks go to all 121 CEOs who participated in the surveythis year and devoted their time in order to help us to obtain theirvaluable insights. The findings we present to you in this report. I firmlybelieve that our survey will provide some inspiring reading that canhelp you stay ahead of the pack.

Redefining the way of competing

New business models

3PwC

Welcome to 2015

Cross-sectorcollaboration

More than quarter ofCEOs stated that in recentyears their firms havestarted business in a newsector.

Technologies willdominate

Two-thirds of CEOsbelieve that higheroperating efficiency is oneof three mayor benefits of digital technologies.

Low trust in globaleconomy, trust inthemselves

Compared to last year,three-times more CEOsthink that the globaleconomic situation willdeteriorate.

The global economy is a greater threatto business than it was last year.Compared to last year, increasinglymore business leaders in Slovakiaexpect that the global economy willdeteriorate over the next 12 months.

Therefore, collaboration of firms andfocus on transition between industrieshas become increasingly important.While supressed by the crisis, firmshave focused on their core businessand continually sought ways to furtherstreamline their costs, but CEOs arenow looking for new space for businessgrowth, which includes looking outsidetheir traditional industries.

More often we will see businessestrying to leverage their distributionnetworks for the provision of newservices (such as retailers involved infinance, power businesses intelecommunications). Convincingtraditional customers that theirrecognised brand can also offer newservices will be a big challenge.

Adopting new technologies remaina major trend that changes eachbusiness sphere. Whilst in the past theymostly supported the development ofthe IT sector, they are nowfundamentally changing traditionalindustries such as healthcare,education, or taxi services. Get readyfor further disruption.

4 Slovak CEO Survey 2015

Concerns about global development and trust in own powers

Whilst last year optimism was ruling among CEOs in their view of global development, the situation is different these days. This could be either due todevelopment in the Ukraine, drop in oil markets ornew uncertainty in the Eurozone. However, theshare of those who expect improvements in theglobal economy within the next 12 months andthose who expect its deterioration has flattened(25% and 26% respectively). Last year, the numberof optimists was five times higher. Those who arethe most pessimistic are the CEOs from CEEcountries: as much as 30% of business leaders in theregion believe that the global economy willdeteriorate.

On the other hand, CEOs in Slovakia still trust intheir businesses. Almost 80% of surveyed businessleaders are expecting revenue growth in the next 12 months and the percentage of those who expectthe growth in three-year term is even slightly higher(85%).

Optimism is reflected in the fact that only less thanone-tenth of the survey participants intend toreduce headcount and almost a half of respondentsintend to recruit new staff. On one hand, CEOs inSlovakia do not expect the global economicsituation will support them, but they have faith inthe success of their own businesses.

80%of surveyed businessleaders are expectingrevenue growth in the

next 12 months

“In general, it holds true that theeconomic and businessenvironment do not offer CEOsbig reasons to celebrate. In spite ofthis, CEOs show a big deal ofcourage. Possibly because intoday’s environment of one-digitgrowth, firms tend to createopportunities rather than rely onthe market-towed growth. If we

have learnt something from 2014, then it is the factthat in this world, increasingly governed bytechnologies, none of the firms remains immuneagainst the impact of changes.”

Alica PavúkováPartner, PwC

Figure 1: CEOs in Slovakia trust their business

Question: How confident are you about your company’s prospects for revenue growth overthe next 12 months?

Very confident

Somewhat confident

Not very confident

Not confident at all

48% 30% 39%

31% 43% 45%

13% 9% 3%

8% 17% 2%

Slovakia CEE World

5PwC

Mergers, acquisitions and strategicpartnerships are on the increase

The struggle with in existing markets has alreadybeen so strong that CEOs have become aware oftheir limits for growth. Although increasing theirmarket share in markets where they havetraditionally been operating still remains animportant priority for growth, it has dropped downcompared to last year and CEOs have rankedinnovation of services and products first.

The middle-term prospective for economic growthand the state of competition show that CEOs willhave to reach for a different arsenal in order toachieve dynamic growth. Mergers and acquisitionsranked third, whilst the percentage of respondentswho cited this option doubled on a year-to-yearbasis. Even though this option is still behindinnovations and the struggle for market share; it isnot off the table as an opportunity.

As was the case last year, CEOs are aware that theymust invest in enhancing customer services,growing their customer base and improveoperational efficiency. However, the restructuringchanges have resulted in several shifts. Outsourcingefforts dropped significantly, but on the other hand,the desire for local mergers and acquisitionsincreased. Cost reduction initiatives remain priorityNo. 1 followed by entry into strategic partnership asNo. 2 priority.

Figure 2: Ways of achieving growth

Question: What do you see as the main opportunity to grow your business in the next 12 months?

Figure 3: Where do the investments go?

Question: What are your top 3 investment priorities over the next 12 months? You can mark up to 3 areas.

53%

48%

41%

36%

30%

30%

20%

12%

6%

39%(38% in 2014)

37%(46% in 2014)

9%(4% in 2014)

7%(8% in 2014)

1%(2% in 2014)

7%(2% in 2014)

Product/service innovation Increased share in existing marketsMergers & acquisitionsNew joint ventures and/or strategic alliancesNew geographic marketsDon’t know

Improving operationaleffectiveness

Enhancing customerservice

Growing your customerbase

Implementing newtechnology

R&D and innovation

Manufacturing capacity

New M&A / joint ventures/ strategic alliances

Filling talent gaps

Securing raw materialsor components

60%Implement

a cost-reduction initiative

23%Enter into

a new strategic alliance or joint

venture

14%Complete

a domesticM&A

14%Complete

a cross-borderM&A

Figure 4: How do companies plan to change their businessmodels in 2015?

Question: Which, if any, of the following restructuring activities doyou plan to initiate in the coming 12 months? You canmark more options.

6 Slovak CEO Survey 2015

What are CEOs concerns?

Figure 5: Question of sufficient talent is becoming more acute

Question: How concerned are you about the following potential business threats to your growthprospects?

There is a shortage of talent and today, the ability toattract skilled staff will decide whether a firm cansucceed or not. CEOs are aware of this andtherefore, not surprisingly, almost three-quarters ofsurvey participants have selected the unavailabilityof key skills as a major threat. Corruption andbribery ranked second and as much as one-third ofsurvey participants are extremely concerned aboutit. So far, CEOs are not very much concerned aboutcyber security, but on the other hand, as much asa half of them are aware of the threat of changes inconsumer behaviour and spending.

If CEOs could advise the government on whichareas to focus, they would choose an internationallycompetitive and efficient tax system (71%) andensuring the availability of a skilled and flexibleworkforce (69%). However, in their individualnotes, CEOs also mentioned the enforceability oflaw – for example one CEO added a comment“should be much higher“. And, if the governmentwants to support businesses, it would be worthgiving attention to the development of aninnovative environment (45%).

Availability of key skills

Bribery and corruption

Shift in consumer spending andbehaviours

New market entrants

Lack of trust in business

Speed of technological change

47% 25% 72%

23% 32% 55%

27% 21% 48%

36% 6% 42%

25% 15% 40%

26% 13% 39%

Somewhat concerned Extremely concerned

“As Jim Rohn, a famous Americanmotivational speaker, has alreadysaid, we are an average of the fivepeople we surround ourselveswith. As indicated by the CEOs inthe survey, the concern increasesthat the quality of ‘those fiveselected individuals’ will not besufficient. So, the question, whatwe can do to improve the quality

of people surrounding us and therefore also ourselves,remains open...”

Christiana SerugováPartner, PwC

7PwC

Collaboration for a better business

Specialisation in business helps firms to succeed intough competition but everything is more difficultwithout engaging with partners. CEOs in Slovakia,similarly to the global CEOs, focus on two groups ofpartners within their closer work relationships –suppliers and customers. In particular, supplierssignificantly affect the ability of a business toproduce high quality goods and services. Almost60% of surveyed CEOs in Slovakia already have orare considering closer engagement with supplierswhich corresponds with the findings of the globalsurvey (almost 70%). Only slightly less CEOs havesaid that they are engaging more with customers.Similarly important for Slovak CEOs is engagementwith academia. On the other hand, the governmentor non-governmental institutions are not viewed asattractive partners.

And why should they engage with third parties,either through a joint venture, strategic alliance orinformal agreement? The clear reason is access tonew customers.

22%Non-governmental

organisations(world: 36%) 59%

Suppliers(world: 69%)

55%Academia

(world: 52%)

53%Customers(world: 66%)

44%Firms from other

industries(world: 52%)

42%Competitors(world: 50%)

35%Start-ups

(world: 44%)

20%Government (world: 37%)

52%Business networks,

clusters or tradeorganisations(world: 53%)

Figure 6: CEOs start to develop diverse collaborations

Question: Are you currently engaged with or considering engaging with, any offollowing types of business partners through joint ventures, strategicalliances or informal collaborations?

Figure 7: Cooperation opens the door to new customers

Question: Please rank your top three reasons, if any, for collaborating with a third party in joint ventures, strategic alliances or informalcollaborations.

Top three reasons for collaboration

Access to newcustomers

Access tonew/emergingtechnologies

Ability to strengthenbrand or reputation

66% 34% 30%

“Along with increased focus onwhat they are good at, CEOs aresearching for partners who couldadd on or develop their owncapabilities. However, the diversecooperation results in increasedcomplexity. Stakeholders areriding several horses at the sametime: e.g. customers may act assuppliers or business partners

concurrently.It is inevitable for such collaborations that innovativeways are identified of how to set the relationship sothat it is beneficial for all involved parties. These newinteraction ecosystems will become extensivelyimportant and confidence will be essential to theirsuccess.”

Alexander ŠrankPartner, PwC

8 Slovak CEO Survey 2015

Are we lagging behind in technology?

In the area of technologies that can providea competitive edge, data analyses is considered themost important by Slovak CEOs. Almost 60% ofrespondents designated data mining and analysis asextremely important. This is followed bycybersecurity and mobile technologies to enhancecustomer engagement. On the lower levels ofimportance ranked personal items equipped withmodern technologies (such as heart activitymeasurement equipment or special smart glasses),robotics and, in particular, 3-dimensional printers.

Comparison with the results achieved in the GlobalCEO Survey shows that priorities are similar tothose cited by CEOs in Slovakia. The top 3 mostimportant technology trends are very similar.However, it is apparent that Slovak CEOs assign lessimportance to technologies in the competitivestruggle compared to their foreign colleagues.Whilst mobile technologies for customerengagement lead the importance ranking globally(81%), only half of survey participants in Slovakiaassigned similar importance to it.

It is interesting that similar differences can be seenif we compare findings in Slovakia with thoseachieved in the CEE region. They are much closer toglobal findings compared to Slovak firms’preferences. Any possible explanation? Slovakbusiness leaders appreciate technology that isalready spread widely rather than the new onewhich they might have only read about.

59%54%

36%

26%

20%19%

12% 7%

27%

51%

Data mining and analysis(world: 80%)

Cybersecurity(world: 78%)

Mobile technologies for customer engagement

(world: 81%)

Internet of Things(world: 65%)

Cloud computing(world: 60%)

Socially enabled business processes

(world: 61%)

Robotics(world: 36%)

Battery and powertechnologies (world: 47%)

3D printing(world: 27%) Wearable

computing(world: 33%)

Figure 8: Collection, analysis and use of information by technology is the key

Question: How strategically important are the following digital technologies for yourorganisation?

Note: % of CEOs who responded ‘extremely important’.

9PwC

Among the benefits of digital technologies for abusiness, improvement of operational efficiency isdominating. This is highly appreciated by colleaguesfrom the CEE region and the global CEOs. On theother hand, a dramatic difference has beenidentified in the perception of technologies as themeans for enhancing customers’ experience (inSlovakia only less than one-fifth of CEOs considerthis as a benefit; globally, it is more than three-thirds of respondents) as well as in the area ofdigital confidence (7% vs. 72%).

Figure 9: Investing in digital technology pays off - it brings value andinfluences costs

Question: From the following lists, please rank top three contributions that digitaltechnologies create for your business.

Top three contributions of digital technologies

Operational efficiency

Data and data analytics

Internal/externalcollaboration

66% 50% 41%

“CEOs no longer challenge theneed of implementing technologyinto their core business. Digitaltechnologies brought revolutionin customers’ perception of thevalue. Creating customer’sindividual experience becomesincreasingly desired and requiresan extreme level of responsivenessand innovation adaptability.

If all this is to be done effectively, it cannot beperformed marginally. Firms become increasinglyaware of that they must change their business models.In order to make this happen, it is necessary not onlyto invest into proper digital technology but also use itsmartly and efficiently.”

Ivo DoležalPartner, PwC

10 Slovak CEO Survey 2015

Competitors are behind the door

Traditional competitors remain in the market;however, the competition for customers will alsofrom a new direction. In the global survey, CEOspointed out that the firms from other industries areincreasingly entering their traditional waters. Asmuch as 56% of surveyed CEOs believe that in thenext three years, their firms will probably becompeting in the industries in which they do notoperate at present.

Competitors from other industries can bringsubstantial changes in the business models. SlovakCEOs most often expect that new competitors willemerge from the Technology industry. Just asAmazon changed the retail business and Uber ischanging taxi services, technology firms willdominate not only the IT industries. They havealready changed Media and Entertainment and nowthe next will be traditional industries.

CEOs are aware that in the next five years theirindustry will be most influenced by changes incustomer behaviour (more than 80% count on this).And these changes arise from the use of newtechnology or from priorities where CEOs investtheir own time.

Figure 11: According to CEOs, Technology sector has the greatest potential tocompete across industries

Question: From which industry outside of your own, if any, do you think a significantcompetitor is emerging or could emerge? Mark all options that apply.

Figure 10: What causes changes in the traditional functioning of industries?

Question: How disruptive do you think the following trends will be for your industry overthe next five years?

Changes in customer behaviours

Increase in number of significantdirect and indirect competitors –

traditional and new

Changes in distribution channels

Changes in core technologies of production or service provision

(e.g. 3-D printing, mobile customer service)

Changes in industry regulation

44% 39%

48% 20%

40% 22% 62%

68%

83%

32% 21% 53%

23% 30% 53%

Somewhat disruptive Very disruptive

25%Technology

21%Retail

and WholesaleDistribution

20%Professional andBusiness Services(Consulting, Law,Marketing, SSCs)

15%Transport &

Logistics

18%Manufacturing –

IndustrialProducts

12%Financial Services,

including Real Estate

12%Communications,

Entertainment & Media

13%Energy, Utilities

and Mining

11PwC

Even though a majority of Slovak CEOs stated thatthey did not start operating in a new industry in thelast three years, almost 30% have already tried thisoption and others are considering it. We still lagslightly behind the global trend and, therefore, thepercentage of transitions into new areas willprobably be growing.

Figure 12: Penetration into new industries

Question: Has your organisation entered a new industry, or considered doing so, withinthe past three years? By this we mean any industry that your organisation wasnot already involved in.

28%

19%

53%

Yes, we haveentered a newindustry

We haven’t entereda new industry but

considered doing so

No, we haven’t entered a new industry nor considered doing so

“Increasing focus on customers isbroadening the field ofcompetition. Forward-thinkingCEOs are increasingly questioningjust what business they are reallyin and they are actively takingbusinesses into adjacent orcompletely new sectors.Cross-industry moves aren’t anew phenomenon, of course.

Corporate history is packed with stories of companiesthat shifted focus to take advantage of new marketopportunities. Nokia, for example, famously began lifeas a paper mill. But what the digital age has done issupercharge the opportunities for businesstransformation and demonstrate how vulnerablecompanies are if they don’t understand what theircustomers want.”

Jens HörningPartner, PwC

12 Slovak CEO Survey 2015

What should the CEO of tomorrow look like?We have mentioned ways how the competitive dynamics of industries changes. We asked theCEOs to identify capability, which they believe is the most important for them to leverage thepotential of these changes and turn them into opportunities.

“Properlyforesee andestimatedevelopmentsand trends inmarket needsin givenindustry. Bethe top ininnovation

processes, bring new non-traditional solutions to the needsin given field (research,development, applieddevelopment). Search for a newmaterial and energy resources(substitutes for a depletablematerial and energy resources).”

Vladimír MužilaManaging Director and Chairman of the BoardAGRO CS Slovakia

“Analysis andability toleverageinformation.”

Miroslav HrdinaChairman of the BoardDOMOSS TECHNIKA

“Ability totake a riskand sacrificeshort-termprofits.”

Martin KultanCEODÔVERA zdravotná poisťovňa

“Courage.”

Silvia VančováManaging DirectorFerno Slovakia

“To recogniseup-front themarket needsand shifts, tooversee the 1-5 yearsindustrytrends and toset thecompany

priorities according to that.”

Igor KočišCEOGA Drilling

“Focusing onproducts andservices, newdistributionchannels, andnew types ofproducts.”

Ján OtčenášGeneral ManagerGEEA

“Ability toanalyse theenvironmentin order todevelop aproperstrategy,assess the riskand definethe back-up

strategy. Understandrobotisation and internal socialrelationships in the robotisedenvironment within the firm.”

Marián ČapkovičManaging DirectorLKW Komponenten

"Sufficientinnovativestaff withinternationalreach.“

Štefan RosinaChairman of the Board MATADOR HOLDING

13PwC

“Ability tofind acommonlanguagewithcolleaguesfrom strategy,technology,marketing,sales and

finance functions. It means,ability to develop an adequatelystrong chain from the very firstidea to its delivery to thecustomer.”

Pavol LančaričCEOOrange Slovensko

“Estimate thescope and thepossibleimpact of allchangesalready at thebeginning oftheirexistence/attheir

inception, based on long-termexperience.”

Matej BugárManaging DirectorPorsche Inter Auto Slovakia

“Beingsensitive toconsumer’s/customer’sneeds withemphasis oncustomisa -tion andrelevant workwith data

whilst having in mind theavailability of provided services.”

Jaroslav PilátCEOPRVÁ PENZIJNÁ SPRÁVCOVSKÁSPOLOČNOSŤ POŠTOVEJBANKY a Dôchodkovásprávcovská spoločnosť Poštovej banky

“Ability toforesee theorigination ofnew synergieswithin whatseemed to benon-competitiveareas orindustries at

the first sight.”

Jozef GimaCEORYBA Košice

“Digitalliteracy isessential,however itdoes notsuffice.Ability toshorten andmakeeffective the

analytical and distributionprocesses.”

Peter SitányiCEOSITCON

“Flexibilityand analyticprediction.”

Magdaléna DobišováCEOSkanska SK

“Any successis built onuniqueness. Itmust besearched for;bedetermined,open minded,enthuse thebest ones for

it and work hard to achieve it.”

Tomáš DruckerManaging Director and Chairman of the BoardSlovenská pošta

“Understandtrends andprepare theorganisationfor change atthe righttime. Timingis even morecritical thanunderstan -

ding. Performing a change tooearly could be as bad as too lateor never.”

Ondrej SmolárCEOSOITRON

14 Slovak CEO Survey 2015

“CEO’s abilityto see anopportunityat the timewhen othersdo not see ityet. Properlyassess themarketpotential.

Proper timing change.”

Matúš BabíkManaging Directorand Member of the BoardTATRAVAGÓNKA

“Analysis andsearch forsynergies andeffectivenessuponpenetrationinto otherindustries.”

Bohuš HlavatýCEOTatry mountain resorts

“What:Under -standingmarketchanges, newtechnologies,customerrequirementsandexpectations.

Why: To respond to marketdemand, recognise, adapt andcapture opportunities at an earlystage.”

Dino AjanovićCountry General ManagerTNT Express Worldwide

“Attractingtalent –educatedyoung peoplewho are ableto improvetheirperformanceas quickly asmodern

technologies do. Older generationis no longer able to keep pacewith technologic changes andopportunities such changes bringfor firms.”

Peter ZávodskýManaging DirectorTOPOS TOVARNÍKY

“Skills, talentpool andtalentmanage -ment.”

Thomas Georg BogdainManaging DirectorT-Systems Slovakia

“With nodoubt, abilityto analyseand foresee.”

Jozef HricChairman of the Board and Managing DirectorTuCon

“Readinessfor an earlyresponse totechnologydevelopmentsand newmarketrequire -ments.”

Igor GnapCEOVAŠA Slovensko

PwC’s Global CEO Survey 2015 New ways to compete

PwC has conducted the Global CEO Survey for 18 years and every year it is officially presented at the World Economic Forum in Davos.In the 2015 edition of the Survey, we asked CEOs to name the one capability that tomorrow’s CEO must have.

Strategic thinking and adaptability were cited by an overwhelming number of business leaders. Small wonder; constant change is thekey characteristic of today’s competitive landscape. Megatrends, and how companies react to them, are changing the markets whereCEOs seek growth, the range of threats to business and the very fundamentals of entire industries.

We have identified six steps that business leaders can take to help build success in 2015. We believe that those CEOs who can developthe strategic focus and capabilities considered here will be best placed to win in the emerging competitive landscape. It’s arguable thatthese approaches wouldn’t have been substantially different ten years ago. But what’s different now is the impact of digitaltechnologies on virtually every aspect of business.

Find out more by visiting www.pwc.com/ceosurvey.

Six steps that business leaders can taketo help build success in 2015

1. Focus on what you’re good atIn an increasingly confusing marketplace, it’s crucial to identifyyour organisation’s key capabilities, those which make itunique. We don’t think companies can manage more than threeto six truly differentiating capabilities.

2. Re-evaluate the business you’re inOnce you understand your strengths, consider the true valueyou give to stakeholders. Recognise who your competitorsreally are – including those in different industries. Ensurethere’s strong cohesion between your organisation’scapabilities, value proposition and product and serviceofferings. It could be that your core strengths could excel in asector you’ve never been part of before.

3. Anticipate policy issuesPre-empt them by self-regulating effectively. Work withgovernment to develop effective and balanced policies, as partof a collaborative network of partners.

4. Build diverse yet aligned partnershipsConsider how partnerships could enhance your capabilities.Develop a broad, diverse and dynamic ecosystem ofpartnerships that you can adjust upwards or downwardsdepending on needs. And strengthen collaborations byidentifying mutually beneficial outcomes.

5. Transform through digitalUnderstand the impact of digital technologies on yourstakeholders and the value they seek. Assess how youroperating model needs to change to fulfil new needs anddesires – and have a clear vision and plan for how digitalinvestments can help achieve these changes.

6. Develop a good mix of talentLeverage the full spectrum of differences in thinking andworking to build a collaborative and technologically skilledworkforce that can deliver the innovation you need to competein the new economy.

Technology

Partnerships

Diversity

Customer- driven

capabilities

Todd BradshawCountry Managing Partner, PwC+421 2 59350 600todd.bradshaw@sk.pwc.com

Zuzana SehnalováMarketing and Communications Leader, PwC+421 2 59350 133zuzana.sehnalova@sk.pwc.com

Juraj PorubskýEditor-in-chief, Forbes Slovensko+421 2 208 66 337jporubsky@forbes.sk

© 2015 PwC. All rights reserved. In this document, “PwC” refers to PricewaterhouseCoopers Slovensko, s.r.o., PricewaterhouseCoopers Tax, k.s., PricewaterhouseCoopers Advisorys.r.o. and PricewaterhouseCoopers Legal, s.r.o., which are member firms of PricewaterhouseCoopers International Limited, each member firm of which is a separate legal entity.

www.pwc.com/sk/ceo-survey

PwC BratislavaNámestie 1. mája 18, 815 32 Bratislavatel.: +421 2 59350 111

PwC KošiceAupark Tower, Protifašistických bojovníkov 11, 040 01 Košicetel.: +421 55 32153 11

Contacts

Slovak CEO Survey 2015

The Survey was conducted by consultancy firm PwC in co-operation with the Slovak edition of Forbes magazine. The CEOs contactedreplied via an on-line or printed questionnaire from 12 January 2015 to 13 March 2015.

121 top representatives of companies operating in the Slovak market participated in the Survey. Industry sectors included: financialservices (banking & insurance), industrial manufacturing, construction, automotive, retail & distributive wholesale, consumer goods,transportation & logistics, information technology, telecommunications, energy & utilities and other.

Characteristics of companies represented in the survey:Type: 61% a subsidiary or branch of an international parent company, 39% Slovak company (privately owned, family business, etc.). Years of doing business in Slovakia: 42% 5-15 years, 37% 15-25 years, 18% over 25 years, 3% less than 5 years.Revenues: 26% EUR 5 - EUR 15 million, 21% EUR 15 - EUR 30 million, 14% EUR 100 - EUR 250 million, 13% EUR 30 - EUR 100 million,16% less than EUR 5 million, 10% over EUR 250 million.

About PwC

PwC helps organisations and individuals create the value they’relooking for. We’re a network of firms in 157 countries with morethan 195,000 people who are committed to delivering quality inassurance, tax and advisory services. Find out more and tell us whatmatters to you by visiting us at www.pwc.com/sk.

About Forbes

Forbes Slovensko is a monthly Slovakia's country edition publishedby the Business Consulting & Media, s.r.o. under a licenceagreement with Forbes Media LLC. Forbes Media encompassesForbes, the largest business media brand worldwide, Forbes.com, as well as 32 licensee editions. See www.forbes.sk for moreinformation.