MIRA
INFORM REPORT
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Report Date : |
25.08.2011 |
IDENTIFICATION DETAILS
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Name : |
FONTERRA LIMITED |
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Registered Office : |
9 Princes Auckland 1010 |
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Country : |
New Zealand |
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Financials (as on) : |
31.01.2011 |
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Date of Incorporation : |
25.08.1998 |
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Com. Reg. No.: |
920718 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Manufacturing and distribution dairy products. |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 700,000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
NOTES :
Any query related to this report can be made
on e-mail: infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – March 31st, 2011
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Country Name |
Previous Rating (31.12.2010) |
Current Rating (31.03.2011) |
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New Zealand |
A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
IDENTIFICATION DETAILS
Verified Address
Subject name : FONTERRA LIMITED
Business
address : 9 Princes Street Town : Auckland Central Province : Auckland Zip/postal code : 1010
Country : New Zealand
Tel : +64 9 3749000
Fax : +64 9 3749001
Website : www.fonterra.com
Registered
address : 9 Princes Street Town : Auckland Central Province : Auckland Zip/postal code : 1010
Country : New Zealand
Postal address :
Private Bag 92032
Town : Victoria Street West
Province : Auckland
Zip/postal code :
1142
Country : New Zealand
SUMMARY DETAILS
Executive Summary
Date founded or registered : 25/08/1998
Legal
form : Private Limited Company Chief executive : Paul David Washer
Issued & paid up capital : NZD 101
Sales
turnover :
NZD 16,726,000,000 (Group Consolidated 12 months, 31/07/2010) Net income :
NZD 685,000,000 (Group Consolidated 12 months, 31/07/2010) Total fixed assets : NZD 14,169,000,000 (Group Consolidated 12
months, 31/07/2010)
Line of business :
Holding company for its subsidiaries that is mainly engaged in manufacturing
and distribution dairy products.
Staff employed : 15,600 (Group)
CREDIT RISK OPINION
Credit Risk Interpretation
Credit risk rating :
GOOD
Credit risk theory : Sound financial and operational base
for the group. Small to medium credits may be considered with confidence that
the commitment will be sustained in almost all cases. This is based on criterions
such as years of establishment, number of employees, sales turnover, profit
after tax, total assets, reserve, and others. Normal credit control policy
applies.
Company Analysis
Country risk : Country risk is minimal
Operation trend : Operational trend is steady
Management experience : Management is adequately experienced
Financial performance : Group financial performance is good
Organisation structure : Organisational structure is consistent
Detrimental : No detrimental records found
Payment history : No payment delays noted
Credit amount suggestion : USD 700,000
Credit amount asked : Not
described.
Comments : Larger credit can still be considered. The
Subject is well positioned in the market and the financial stability of the
group is positive.
STATUTORY DETAILS
Registry Data
Registration date :
25/08/1998
Legal form : Private Limited Company
Registration no 920718
Registered authority : New
Zealand Companies Office
Registry status :
Live/Active
Previous name : The Subject was established on
25-08-1998 under the name DAIRY NEW ZEALAND LIMITED and changed its name to
NZMP LIMITED on 21-12-2001. The Subject then adopted to the current style on
08-06-2004.
Comments : On 31-07-2011, The Lactose Company of
New Zealand Limited (Company No:
170352) and Milk Products
International Limited (Company No: 401930) was amalgamated into Fonterra
Limited.
On 01-01-2009, Whareroa Farm Limited (Company No: 1104522) and Whareroa
Power Limited
(Company No: 621256) was amalgamated into Fonterra Limited.
MANAGEMENT / DIRECTORS
Key Management
Name : Paul David Washer
Designation : Director
Name : Christopher Paul Caldwell
Designation : Director
Name : Jennifer Kerr
Designation : Group Human Resources Director
BOARD OF DIRECTORS/ OTHER APPOINTMENTS
Appointments
Name : Paul David Washer Designation : Director Appointment date : 02/06/09
Address : 12 North West Anchorage, Rd 6
Warkworth, 0986
New Zealand
Name : Christopher Paul Caldwell
Designation : Director
Appointment date : 04/04/11
Address : 61 Potts Road, Rd 1
Howick, 2571
New Zealand
Staff employed : 15,600
(Group)
Key Advisors
Auditors : PricewaterhouseCoopers
PricewaterhouseCoopers Tower
188 Quay Street
Private Bag 92162
Auckland 1142
New Zealand
SHARE CAPITAL
Composition
Authorized Capital :
NZD 101
No of shares : 101 Shares
Share par value :
NZD 1
Issued capital : NZD 101
Paid up capital : NZD 101
OWNERSHIP / SHAREHOLDERS
How listed : Full List
Composition
Shareholder name : FONTERRA CO-OPERATIVE GROUP LIMITED
Address : 9 Princes Street
Auckland Central, Auckland 1010
New Zealand
No. of shares : 100 Shares
Shareholder name : NEW ZEALAND
DAIRY BOARD Address : 9 Princes Street
Auckland Central, Auckland 1010
New Zealand
No. of shares : 1 Share
RELATED COMPANIES &
CORPORATE AFFILIATIONS
Structure
Name : FONTERRA CO-OPERATIVE GROUP LIMITED Affiliation
type : Parent Company
Address : 9 Princes Street
Auckland Central, Auckland 1010
New Zealand
Comments : Fonterra Co-operative Group Limited is
a New Zealand multinational dairy co-operative owned by almost 10,500 New Zealand
farmers. he company is responsible for approximately 30% of the world's dairy
exports and with revenue exceeding NZ$16.75 billion, is New Zealand's largest
company.
Name : ANCHOR ETHANOLLIMITED
Affiliation type : Wholly-owned Subsidiary
Address : New Zealand
Name : FONTERRA (NEW ZEALAND) LIMITED
Affiliation type : Subsidiary
Address : New Zealand
Name : FONTERRA (INTERNATIONAL) LIMITED
Affiliation type : Wholly-owned Subsidiary
Address : New Zealand
Name : FONTERRA BRANDS (NEW ZEALAND) LIMITED
Affiliation type : Sister Company
Address : New Zealand
Name : FONTERRA BRANDS (TIP TOP) LIMITED
Affiliation type : Sister Company
Address : New Zealand
Name : CANPAC INTERNATIONAL LIMITED
Affiliation type : Sister Company
Address : New Zealand
Name : FONTERRA BRANDS (AUSTRALIA) PTY LTD
Affiliation type : Sister Company
Address : Australia
Name : FONTERRA AUSTRALIA PTY LTD
Affiliation type : Sister Company
Address : Australia
Name : FONTERRA BRANDS LIMITED
Affiliation type : Sister Company
Address : New Zealand
Related companies and corporate affiliations comments
: Other companies of the Fonterra
Co-Operative Group Limited should be considered affiliates of the Subject. We
are unable to list all the associated companies within the group therefore we
have enclosed an attachment to this report.
BANK & MORTGAGES
Bank Details
Name of bank : ANZ National Bank Limited
Address : New Zealand
Account details : Current Account
Name of bank : HSBC Bank New Zealand
Address : New Zealand
Account details : Current Account
Comments: It is generally not the policy of local
banks to provide credit status information to non related parties, however
interested parties would be advised to consult first with the Subject if
banker's references are required.
Mortgages : Nonereported.
Legal Fillings
Bankruptcy fillings : None reported. Court judgements : None reported. Tax liens : None reported. Others : None reported.
FINANCIAL DATA
Description
Source of financial statement :
Public Record Sources
Financial statement date : 31/01/11
Type of accounts : Full audited
Currency : New Zealand, Dollar (NZD)
Exchange rate : 1 USD = NZD 1.21 as of16-08-2011
Summarized financial information
New Zealand, Dollar (NZD)
Consolidation Type Group Group Group
Consolidated Consolidated Consolidated
Currency New
Zealand, Dollar New
Zealand, Dollar New
Zealand,
Dollar
Denomination : (x1) One (x1)
One (x1) One
Date of financial year end : 31/01/11 31/07/10 31/07/09
Length of accounts : 6 months 12
months 12 months
Sale turnover / Income : 9,356,000,000 16,726,000,000 16,035
Gross profit : 1,441,000,000 2,751,000,000 2,818,000,000
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Operating profit : |
492,000,000 |
1,022,000,000 |
922,000,000 |
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Profit before
tax : |
300,000,000 |
765,000,000 |
542,000,000 |
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Net income : |
293,000,000 |
685,000,000 |
610,000,000 |
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Non current
assets : |
7,901,000,000 |
8,082,000,000 |
8,129,000,000 |
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Current assets : |
9,395,000,000 |
6,087,000,000 |
5,988,000,000 |
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Inventories : |
5,207,000,000 |
2,870,000,000 |
2,656,000,000 |
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Total assets : |
17,296,000,000 |
14,169,000,000 |
14,117,000,000 |
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Current
liabilities : |
5,684,000,000 |
3,558,000,000 |
4,414,000,000 |
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Non current
liabilities : |
5,721,000,000 |
4,944,000,000 |
4,898,000,000 |
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Total
liabilities : |
11,405,000,000 |
8,502,000,000 |
9,312,000,000 |
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Share equity : |
5,891,000,000 |
5,667,000,000 |
4,805,000,000 |
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Retained earning : |
586,000,000 |
547,000,000 |
26,000,000 |
Comments : The Subject does not publish non-consolidated
financial statement as the
Subject’s Parent Company files group consolidated financials.
The group’s consolidated
financial information above relates to the Subject’s Parent / Ultimate Holding
Company Fonterra Co-Operative Group Limited and all its subsidiaries which
include the Subject.
OPERATION DETAILS
Main activities :
The Subject is a holding company for
its subsidiaries that is mainly
engaged in manufacturing and
distribution of dairy products. The Subject is also involved in sourcing and
trading of products on and for behalf of the group.
The Subject is part of Fonterra Co-Operative
Group Limited, which is a
co-operative company,
engages in the collection, manufacture, and sale of milk and milk derived
products New Zealand and internationally. The group offers butter, cheese,
dried milk, butter, casein, ice cream, desserts, and other product derived from
milk or milk solids. The Group also provides ingredients for bars and snack
foods, cultured foods, cheese, organics, medical foods, and pediatric
nutrition. The group sells its products primarily under the Anchor, Tip Top,
Anlene, Brownes, Anmum, Mainland, Fresh 'N Fruity, Soprole, and Fernleaf brand
names.
Purchases
International : Worldwide
Sales
International : Worldwide
Property & Assets
Premises : The Subject operates from group
headquarters located at the verified heading address consisting of administrative
office, production facilities, warehouse.
Branches : None reported.
SUMMARIZED COUNTRY RISK
Gross Domestic Products (GDP) & Economic Overview
Central bank : Reserve Bank of New Zealand
Reserve of foreign exchange & gold : US$ 18.421 billion (November 2010)
Gross domestic product - GDP : US$ 153.252 billion
GPP (Purchasing power parity) : 120.2 billion of International dollars
GDP per capita - current prices : US$ 34,701
GDP - composition by sector : agriculture: 4.6% industry: 23.7% services: 71.7%
Inflation : 2008: 4%
2009: 2.1%
2010: 2.3%
Unemployment rate : 2008: 4.2%
2009: 6.2%
2010: 6.5%
Public debt
(General Government gross debt as a % GDP) : 2008: 20.4%
2009: 26.1%
2010: 31.6%
Government bond ratings : Standard & Poor's: AA+/Stable/A-1+
Moody's rating: Aaa
Moody's outlook: STA
Market value of publicly traded shares : US$67.061 billion
Largest companies in the country : Telecom of New Zealand, Fletcher Building
Trade & Competitiveness Overview
Total exports : US$33.24 billion
Exports commodities : dairy products, meat, wood and wood products, fish, machinery
Total imports : US$31.11 billion
Imports commodities : machinery and equipment, vehicles and aircraft, petroleum, electronics, textiles, plastics
Export - major partners : Australia 22%, US 11.5%, Japan 9.2%, China 5.3%, UK 4.6%
Import - major partners : Australia 20.7%, China 13.4%, US 9.7%, Japan 9.5%, Singapore 4.9%, Germany 4.7%
FDI Inflows : 2007: US$3,441 million
2008: US$4,993 million
2009: US$348 million
FDI Outflows : 2007: US$3,703 million
2008: US$-239 million
2009: US$-406 million
Best countries for doing business :
3 out of 183 countries
Global competitiveness ranking :
23 (ranking by country on a basis of
133, the first is the best)
Country and Population Overview
Total population :
4.37 million
Total area : 270,467 km2
Capital : Wellington
Currency : New Zealand dollars (NZD)
Internet users as % of total population:
84.38%
PAYMENT HISTORY
Purchase Term
Local : Cheque, Prepayment, Credit up to 120
days
International : L/C, Credit up to 120 days
Sales Term
Local : Bank transfer, Prepayment, Credit up to
120 days
International : L/C, Credit up to 120 days
Trade Reference/ Payment
Behaviour
Comments : As
local and international trade references were not supplied, the Subject's
payment track record history cannot be appropriately determined but based on
our research, payments are believed to be met without delay.
Investigation Note
Sources : Interviews and material provided by the
Subject
: Other official and local
business sources
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.45.77 |
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|
1 |
Rs.75.57 |
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Euro |
1 |
Rs.65.97 |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit transaction.
It has above average (strong) capability for payment of interest and
principal sums |
Large |
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56-70 |
A |
Financial & operational base are regarded healthy. General unfavourable
factors will not cause fatal effect. Satisfactory capability for payment of
interest and principal sums |
Fairly Large |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with full
security |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NB |
New Business |
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This score serves as a reference to assess SC’s credit risk and
to set the amount of credit to be extended. It is calculated from a composite
of weighted scores obtained from each of the major sections of this report. The
assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.