MIRA INFORM REPORT

Report Date :

14.01.2012

IDENTIFICATION DETAILS

Name :	CONFORAMA ITALIA SPA
Registered Office :	Via Sempione 63, Vergiate, 21029; VA
Country :	Italy
Financials (as on) :	31.12.2010
Date of Incorporation :	27.03.2001
Com. Reg. No.:	13401220150
Legal Form :	Public Subsidiary
Line of Business :	Retail Trade in Furniture, Garden Furniture, Home Accessories and Electric Appliances
No. of Employees :	1,725

RATING & COMMENTS

MIRA’s Rating :

Ba

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Status :	Good
Payment Behaviour :	No Complaints
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 – September 30, 2011

Country Name	Previous Rating (30.06.2011)	Current Rating (30.09.2011)
Italy	A2	A2

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

Company name and address

Conforama Italia SpA

Via Sempione 63, Vergiate, 21029; VA, Italy

Tel: 39 (0331) 941111

Fax: +39 0331 946293

www.conforama.it

company info

Employees: 1,725

Company Type: Public Subsidiary

Corporate Family: 20 Companies

Ultimate Parent: Steinhoff International Holdings Limited

Incorporation Date: 27-Mar-2001

Financials in: USD (mil)

Fiscal Year End: 31-Dec-2010

Reporting Currency: Euro

Annual Sales: 395.1

Total Assets: 211.5

Business Description

Conforama Italia SpA is primarily engaged in retail sale of (household appliances; radio and television goods and other household audio/visual equipment including DVD players; musical and audio/visual tapes, CDs, DVDs and cassettes; and musical instruments and scores).

Industry

Industry Retail (Specialty)

ANZSIC 2006: 4211 - Furniture Retailing

NACE 2002: 5244 - Retail sale of furniture, lighting equipment and household articles not elsewhere classified

NAICS 2002: 442110 - Furniture Stores

UK SIC 2003: 5244 - Retail sale of furniture, lighting equipment and household articles not elsewhere classified

US SIC 1987: 5712 - Furniture Stores

Key Executives

Name	Title
Christophe Lota	Chief Executive Officer
Thierry Louis Joseph Guibert	President
Francesca Gaspardo	Human Resources Manager
Alexandre Nodale	Member of the board
Pascale Rus	Member of the board

Registered No.(ITA)

13401220150

1 - Profit & Loss Item Exchange Rate: USD 1 = EUR 0.7550783

2 - Balance Sheet Item Exchange Rate: USD 1 = EUR 0.7454064

Corporate Overview

Location Via Sempione 63 Vergiate, 21029; VA Italy Tel: 39 (0331) 941111 Fax: +39 0331 946293 www.conforama.it

Sales EUR(mil): 298.3 Assets EUR(mil): 157.6 Employees: 1,725 Fiscal Year End: 31-Dec-2010 Industry: Retail (Specialty)

Incorporation Date: 27-Mar-2001 Company Type: Public Subsidiary Quoted Status: Not Quoted Registered No.(ITA): 13401220150 Chief Executive Officer: Christophe Lota

Industry Codes

ANZSIC 2006 Codes:

4211 - Furniture Retailing

4221 - Electrical, Electronic and Gas Appliance Retailing

NACE 2002 Codes:

5245 - Retail sale of electrical household appliances and radio and television goods

5244 - Retail sale of furniture, lighting equipment and household articles not elsewhere classified

NAICS 2002 Codes:

443112 - Radio, Television, and Other Electronics Stores

443111 - Household Appliance Stores

442110 - Furniture Stores

US SIC 1987:

5722 - Household Appliance Stores

5712 - Furniture Stores

5731 - Radio, Television, and Consumer Electronics Stores

UK SIC 2003:

5245 - Retail sale of electrical household appliances and radio and television goods

5244 - Retail sale of furniture, lighting equipment and household articles not elsewhere classified

Business Description

Retail trade in furniture, garden furniture, home accessories and electric appliances

More Business Descriptions

Conforama Italia SpA is primarily engaged in retail sale of (household appliances; radio and television goods and other household audio/visual equipment including DVD players; musical records and audio/visual tapes, CDs, DVDs and cassettes; and musical instruments and scores).

Furniture Merchant Wholesalers

Financial Data

Financials in: EUR(mil) Revenue: 298.3 Assets: 157.6 Current Assets: 68.7 Total Liabilities: 157.6 Net Worth: 16.8 Date of Financial Data: 31-Dec-2010

1 Year Growth -2.1% NA

Key Corporate Relationships

Bank: Unicredit Ag, Intesa Sanpaolo Ag

Corporate Structure News

Steinhoff International Holdings Limited
Conforama Italia SpA

Corporate Family

Conforama Italia SpA
Total Corporate Family Members: 20

Company Name	Company Type	Location	Country	Industry	Sales (USD mil)	Employees
Steinhoff International Holdings Limited	Parent	Sandton	South Africa	Furniture and Fixtures	6,144.0	48,840
Conforama Holding	Subsidiary	Lognes	France	Retail (Specialty)	4,094.9	13,400
Conforama France	Subsidiary	Lognes	France	Retail (Specialty)	3,109.7	9,169
Sodice Expansion S.A.	Subsidiary	Seclin	France	Retail (Specialty)	175.0	12
Conforama Luxembourg SA	Subsidiary	Strassen	Luxembourg	Furniture and Fixtures
Conforama Italia SpA	Subsidiary	Vergiate	Italy	Retail (Specialty)	395.1	1,725
Conforama Portugal, S.A.	Subsidiary	Alcabideche	Portugal	Retail (Specialty)	45.8	191
Ihtm France	Subsidiary	Lognes	France	Computer Services	1.4	14
Conforama SA	Subsidiary	Bussigny-près-Lausanne	Switzerland	Retail (Specialty)	431.6
Kanizsa Trend Kft	Subsidiary	Nagykanizsa	Hungary	Furniture and Fixtures		550
Vitafoam (Pty) Ltd	Subsidiary	Industria	South Africa	Containers and Packaging		400
Steinhoff Germany GmbH	Subsidiary	Westerstede	Germany	Miscellaneous Financial Services		110
Bruno Steinhoff GmbH	Subsidiary	Westerstede, Niedersachsen	Germany	Furniture and Fixtures	66.4	51
Steinhoff Asia Pacific Limited	Subsidiary	Lane Cove, NSW	Australia	Furniture and Fixtures	1.0
PG Bison Holdings (Pty) Ltd	Subsidiary	Boksburg	South Africa	Retail (Home Improvement)
Pennypinchers Building Materials Ltd	Subsidiary	Cape Town	South Africa	Retail (Home Improvement)	75.0
Vitafoam SA	Subsidiary	Johannesburg	South Africa	Furniture and Fixtures
Steinhoff Southern Cape (Pty.) Ltd.	Subsidiary	George	South Africa	Furniture and Fixtures
Woodline Timber Industries	Subsidiary	George	South Africa	Forestry and Wood Products
PG Bison Limited	Subsidiary	Bedfordview	South Africa	Construction and Agriculture Machinery

Executives Report

Board of Directors

Name	Title	Function
Alexandre Nodale	Member of the board	Director/Board Member
Pascale Rus	Member of the board	Director/Board Member

Executives

Name	Title	Function
Christophe Lota	Chief Executive Officer	Chief Executive Officer
Thierry Louis Joseph Guibert	President	President
Francesca Gaspardo	Human Resources Manager	Human Resources Executive

Annual Profit & Loss

	31-Dec-2010	31-Dec-2009	31-Dec-2008
Period Length	12 Months	12 Months	12 Months
Filed Currency	EUR	EUR	EUR
Exchange Rate (Period Average)	0.755078	0.719047	0.683679
Consolidated	No	No	No
Total income	415.6	442.0	597.7
Net sales	395.1	423.9	578.1
Other operating income	20.5	18.1	19.6
Raw materials and consumables employed	271.8	288.7	406.7
Other expenses	76.9	85.3	114.2
Total payroll costs	68.7	69.0	92.2
Fixed asset depreciation and amortisation	70.9	77.0	79.2
Other operating costs	4.5	5.4	7.9
Net operating income	-77.2	-83.4	-102.4
Total financial income	1.3	0.9	-0.4
Total expenses	0.8	1.5	3.1
Profit before tax	-76.7	-83.9	-105.9
Extraordinary result	0.8	-0.1	-34.6
Profit after extraordinary items and before tax	-76.0	-84.0	-140.5
Total taxation	0.7	-	0.9
Net loss	76.6	84.0	141.4

Annual Balance Sheet

Financials in: USD (mil)

	31-Dec-2010	31-Dec-2009	31-Dec-2008
Filed Currency	EUR	EUR	EUR
Exchange Rate	0.745406	0.696986	0.719399
Consolidated	No	No	No
Total stockholders equity	22.5	21.1	62.7
Provision for risks	8.0	17.1	46.8
Provision for pensions	16.9	19.0	25.4
Other long-term liabilities	0.6	0.6	0.7
Trade creditors	136.5	145.3	187.9
Bank loans and overdrafts	0.5	6.4	5.0
Other current liabilities	26.4	86.9	55.8
Accruals and deferred income	0.0	0.2	0.7
Total current liabilities	163.5	238.8	249.4
Total liabilities (including net worth)	211.5	296.6	385.0
Intangibles	64.5	136.1	195.5
Buildings	27.7	24.3	25.0
Total tangible fixed assets	48.3	49.7	54.5
Long-term investments	5.2	5.5	5.4
Total financial assets	5.2	5.5	5.4
Receivables due after 1 year	1.4	-	-
Total non-current assets	119.4	191.3	255.4
Finished goods	75.5	85.0	96.7
Net stocks and work in progress	75.5	85.0	96.7
Trade debtors	1.1	0.7	0.5
Other receivables	9.3	10.6	20.5
Cash and liquid assets	4.5	6.1	7.8
Accruals	1.6	2.9	4.2
Total current assets	92.1	105.3	129.6
Total assets	211.5	296.6	385.0

Annual Ratios

Financials in: USD (mil)

	31-Dec-2010	31-Dec-2009	31-Dec-2008
Period Length	12 Months	12 Months	12 Months
Filed Currency	EUR	EUR	EUR
Exchange Rate	0.745406	0.696986	0.719399
Consolidated	No	No	No
Current ratio	0.60	0.40	0.50
Quick ratio	0.10	0.10	0.10
Current liabilities to net worth	0.07%	0.11%	0.04%
Sales per employee	-	0.15	0.17
Profit per employee	-	-0.03	-0.04
Average wage per employee	-	0.02	0.03
Net worth	22.5	21.1	62.7
Number of employees	-	1,993	2,360

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.51.43
UK Pound	1	Rs.79.10
Euro	1	Rs.66.17

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
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
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
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
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
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
----	NB	New Business	----

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%)

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.