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

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.

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 – 249 33% 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%

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

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

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

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%

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

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%

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

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

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

What are your Family Business priorities for the next 2 years. (contd 5 1

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

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

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

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

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

Belgium Specific Questions

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

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

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

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

Thank you for your attention