MIRA INFORM REPORT

Report Date :

05.07.2012

IDENTIFICATION DETAILS

Name :	MARCEGAGLIA SPA
Registered Office :	Via Bresciani 16 Gazoldo degli Ippoliti, 46040
Country :	Italy
Financials (as on) :	31.12.2010
Date of Incorporation :	27.06.1983
Com. Reg. No.:	01331020204
Legal Form :	Public Parent
Line of Business :	Manufacture of basic iron and steel and of ferro-alloys
No. of Employees :	3,608

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 :	Satisfactory
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 – March 31^st, 2012

Country Name	Previous Rating (31.12.2011)	Current Rating (31.03.2012)
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

Top of Form

Bottom of Form

Marcegaglia SpA

Via Bresciani 16
Gazoldo degli Ippoliti, 46040
Italy
Tel:	(39) 03766851
Fax:	+39 0376 685600
www.gruppomarcegaglia.com

Employees:	3,608
Company Type:	Public Parent
Corporate Family:	51 Companies
Incorporation Date:	27-Jun-1983

Financials in:	USD (mil)
Fiscal Year End:	31-Dec-2010
Reporting Currency:	Euro
Annual Sales:	4,305.9
Total Assets:	3,454.0

Business Description

Marcegaglia SpA (Marcegaglia) is an Italian company principally engaged in the operation in steel, tourism, metallurgical, manufacturing, financial, and environmental services sectors. Marcegaglia operates as a subsidiary of Marfin Srl. The company is engaged in the production and rental of field equipment and steel structures for buildings. It develops and manages vacation resorts and hotels. The company has a network of 51 sales offices, 210 representations and 50 manufacturing plants all over the world. The company has its operations and sales in countries like Brazil, China, Poland, the UK, the US, Romania, Russia, Germany and France. The company is headquartered in Mantova, Italy.

Industry

Industry	Iron and Steel
ANZSIC 2006:	2110 - Iron Smelting and Steel Manufacturing
NACE 2002:	2710 - Manufacture of basic iron and steel and of ferro-alloys
NAICS 2002:	331111 - Iron and Steel Mills
UK SIC 2003:	2710 - Manufacture of basic iron and steel and of ferro-alloys
US SIC 1987:	3312 - Steel Works, Blast Furnaces (Including Coke Ovens), and Rolling Mills

Key Executives

Name	Title
Steno Marcegaglia	Founder, Chairman & President
Luciano Costi	Responsabile-Finanziario
Stefano Montolli	Responsabile-Marketing
Fiorenza Maestrini	Segreteria
Marco Campi	Direttore-Sistemi Informativi

News

Title	Date
Italy: Employers' chief urges EU measures to help growth Dar Al Hayat (Lebanon) (282 Words)	15-May-2012
Italy wants to boost ties with Turkey, head of Italian federation Anadolu Agency (208 Words)	2-May-2012
Italy: Fighting mafia is matter of economics, business leader says Dar Al Hayat (Lebanon) (189 Words)	27-Feb-2012
Research and Markets: The World Market for Stainless Steel Welded Tube & Pipe - Outlook to 2015 Business Wire (502 Words)	23-Feb-2012
Energy Conversion Devices Files Chapter 11; Seeks Sale of Businesses GlobeNewswire (1795 Words)	14-Feb-2012

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 Bresciani 16
Gazoldo degli Ippoliti, 46040
Italy

Tel:	(39) 03766851
Fax:	+39 0376 685600

www.gruppomarcegaglia.com

Sales EUR(mil):	3,251.3
Assets EUR(mil):	2,574.6
Employees:	3,608
Fiscal Year End:	31-Dec-2010

Industry:	Iron and Steel

Incorporation Date:	27-Jun-1983
Company Type:	Public Parent
Quoted Status:	Not Quoted
Registered No.(ITA):	01331020204

Founder, Chairman & President :	Steno Marcegaglia

Contents Industry Codes Business Description Financial Data Subsidiaries

Key Corporate Relationships

Industry Codes

ANZSIC 2006 Codes:
2110	-	Iron Smelting and Steel Manufacturing
2210	-	Iron and Steel Forging

NACE 2002 Codes:
2710	-	Manufacture of basic iron and steel and of ferro-alloys
2840	-	Forging, pressing, stamping and roll forming of metal; powder metallurgy

NAICS 2002 Codes:
332111	-	Iron and Steel Forging
331111	-	Iron and Steel Mills

US SIC 1987:
3312	-	Steel Works, Blast Furnaces (Including Coke Ovens), and Rolling Mills
3462	-	Iron and Steel Forgings

UK SIC 2003:
2840	-	Forging, pressing, stamping and roll forming of metal; powder metallurgy
2710	-	Manufacture of basic iron and steel and of ferro-alloys

Business Description

Steel processing including the manufacture of welded tubes, bright bars, drawn tubes, strips and plates from stainless steel,carbon steel and aluminium

More Business Descriptions

Producer of Welded Carbon Steel & Stainless Steel Tubes, Sheets, Sections, Drawn Steel & Colded Rolled Strips

MARCEGAGLIA SPA is primarily engaged in manufacture of seamless tubes, by hot rolling, hot extrusion or hot drawing, or by cold drawing or cold rolling; manufacture of welded tubes by cold or hot forming and welding, by forming and cold drawing, or by hot forming and reducing; and manufacture of steel tube fittings (flat flanges and flanges with forged collars of steel, butt welding fittings of steel, threaded fittings and other fittings of steel).

Marcegaglia SpA (Marcegaglia) is an Italian company principally engaged in the operation in steel, tourism, metallurgical, manufacturing, financial, and environmental services sectors. Marcegaglia operates as a subsidiary of Marfin Srl. The company is engaged in the production and rental of field equipment and steel structures for buildings. It develops and manages vacation resorts and hotels. The company has a network of 51 sales offices, 210 representations and 50 manufacturing plants all over the world. The company has its operations and sales in countries like Brazil, China, Poland, the UK, the US, Romania, Russia, Germany and France. The company is headquartered in Mantova, Italy.

Iron and Steel Pipe and Tube Manufacturing from Purchased Steel

Financial Data

Financials in:	EUR(mil)
Revenue:	3,251.3
Assets:	2,574.6
Current Assets:	1,663.8
Total Liabilities:	2,574.6
Net Worth:	733.4
Date of Financial Data:	31-Dec-2010

1 Year Growth

51.9%

NA

Subsidiaries

Company	Percentage Owned	Country
Steam Generators SRL
Societa di Servizi Formativi In Siderurgia SRL
E.T.A. Energie Tecnologie Ambiente SpA
I.M.A.T. SpA
Albarella SpA O
Elet.Ca SRL
Oskar SRL
Made Hse SRL
Marcegaglia Buildtech SRL
Gaia Turismo SRL
Siderfactor SpA
Oto SpA
Mariven SRL
Bvb SRL
Outsourcing Inox SRL
Consorzio Stabile Gestioni Ambientali Soc Consortile A Rl
Marcegaglia Impianti Srl	100%	ITALY
Marcegaglia Deutschland GmbH	100%	ITALY
Marcegaglia UK	100%	ITALY
Marcegaglia S Giorgio Nojaro	100%	ITALY

Key Corporate Relationships

Bank:	Banco Popolare di Verona e Novara, UniCredit Banca, Intesa SanPaolo

Corporate Structure News

Marcegaglia SpA
Total Corporate Family Members: 51

Company Name	Company Type	Location	Country	Industry	Sales (USD mil)	Employees
Marcegaglia SpA	Parent	Gazoldo degli Ippoliti, MN	Italy	Iron and Steel	4,305.9	3,608
Marcegaglia Ravenna	Subsidiary	Ravenna	Italy	Miscellaneous Fabricated Products	1.0	5,500
Marcegaglia Finanziaria	Subsidiary	Gazoldo degli Ippoliti	Italy	Miscellaneous Fabricated Products		1,300
Marcegaglia Buildtech SRL	Subsidiary	Lomagna, Lecco	Italy	Metal Mining	297.0	618
Marcegaglia Casalmaggiore	Subsidiary	Casalmaggiore, Cremona	Italy	Miscellaneous Fabricated Products	1.0	350
Marcegaglia Forli	Subsidiary	Forlimpopoli, Forli	Italy	Miscellaneous Fabricated Products	1.0	345
IMAT	Subsidiary	Pordenone	Italy	Miscellaneous Fabricated Products	52.8	270
Nooter Eriksen Inc.	Subsidiary	Fenton, MO	United States	Miscellaneous Capital Goods		270
Nooter/Eriksen Srl	Subsidiary	Varese	Italy	Miscellaneous Fabricated Products	50.4	96
Nooter Eriksen	Branch	Edina, MN	United States	Business Services	0.2	1
Marcegaglia do Brasil	Subsidiary	Garuva, SC	Brazil	Miscellaneous Fabricated Products		230
Oto SpA	Subsidiary	Boretto, Reggio Emilia	Italy	Miscellaneous Capital Goods	75.8	182
Oto Automation SRL	Subsidiary	Sovizzo, Vicenza	Italy	Electronic Instruments and Controls	17.0	63
Marcegaglia Milano	Subsidiary	Milan	Italy	Miscellaneous Fabricated Products		180
Marcegaglia USA	Subsidiary	Munhall, PA	United States	Miscellaneous Fabricated Products	81.5	125
Marcegaglia (UK) Ltd.	Subsidiary	Dudley	United Kingdom	Construction - Supplies and Fixtures	77.1	119
Oskar	Subsidiary	Bologna	Italy	Miscellaneous Fabricated Products	33.1	112
Ponteggi Dalmine	Subsidiary	Graffignano, Lodi	Italy	Miscellaneous Fabricated Products	1.0	100
Morteo Nord	Subsidiary	Pozzolo Formigaro, Alessandria	Italy	Miscellaneous Fabricated Products	1.0	100
Earcanal	Subsidiary	Leioa, Vizcaya	Spain	Miscellaneous Fabricated Products		100
Albarella SpA O	Subsidiary	Rosolina, Rovigo	Italy	Business Services	25.6	94
Ponteggi Dalmine	Subsidiary	Milan	Italy	Construction and Agriculture Machinery		85
Bvb SRL	Subsidiary	San Lorenzo In Campo, Pesaro E Urbino	Italy	Electronic Instruments and Controls	10.4	72
Elletre S.r.l.	Subsidiary	Sovizzo	Italy	Engineering Consultants	1.0	50
ElleTre	Subsidiary	Montebello Vicentino, Vicenza	Italy	Miscellaneous Fabricated Products		50
Marcegaglia Albignasego	Subsidiary	Albignasego, Padova	Italy	Miscellaneous Fabricated Products		46
E.T.A. Energie Tecnologie Ambiente SpA	Subsidiary	Cutro, Crotone	Italy	Electric Utilities	32.1	44
Eta S.p.A.	Subsidiary	Lainate, Milano	Italy	Miscellaneous Fabricated Products		40
Made	Subsidiary	Gazoldo degli Ippoliti, Mantova	Italy	Miscellaneous Fabricated Products	4.0	39
Marcegaglia Albairate	Subsidiary	Albairate	Italy	Miscellaneous Fabricated Products	1.0	30
Elet.Ca SRL	Subsidiary	Campi Bisenzio, Firenze	Italy	Audio and Video Equipment	5.4	20
Elet.Ca	Subsidiary	Florence	Italy	Miscellaneous Fabricated Products	1.0	16
Marcegaglia Corsico	Subsidiary	Milan	Italy	Construction - Supplies and Fixtures	1.0	15
Consorzio Stabile Gestioni Ambientali Soc Consortile A Rl	Subsidiary	Massafra, Taranto	Italy	Engineering Consultants	7.4	13
Progetto Ambiente Provincia di Lecce SRL	Subsidiary	Massafra, Taranto	Italy	Waste Management Services	11.3	16
Marcegaglia Deutschland	Subsidiary	Dusseldorf	Germany	Miscellaneous Fabricated Products	1.0	11
Marcegaglia Engineering Division S.P.A.	Subsidiary	Saronno, Varese	Italy	Miscellaneous Fabricated Products	1.0	10
Marcegaglia Iberica	Subsidiary	Barcelona	Spain	Miscellaneous Fabricated Products		10
Euroenergy Group	Subsidiary	Lainate, Milano	Italy	Miscellaneous Fabricated Products	25.9	9
Appia Energy SRL	Subsidiary	Lainate, Milano	Italy	Construction Services	22.1	37
Oto Mills USA	Subsidiary	Chicago, IL	United States	Miscellaneous Capital Goods		5
La Gaiana S.p.A.	Subsidiary	Genoa	Italy	Real Estate Operations	1.0	4
Steam Generators SRL	Subsidiary	Lainate, Milano	Italy	Miscellaneous Capital Goods	0.0	1
Marcegaglia Poland Sp Z O O	Subsidiary	Praszka	Poland	Miscellaneous Capital Goods	43.2
Marcegaglia Contino	Subsidiary	Mantova	Italy	Miscellaneous Fabricated Products	1.0
Marcegaglia Buildtech	Subsidiary	Milano	Italy	Construction - Supplies and Fixtures	1.0
CCT	Subsidiary	Varese	Italy	Miscellaneous Fabricated Products
Green Power	Subsidiary	Lugano	Switzerland	Miscellaneous Fabricated Products
Marcegaglia Ireland	Subsidiary	Dublin	Ireland	Miscellaneous Fabricated Products
Marcegaglia S.p.A.	Subsidiary	San Giorgio di Nogaro	Italy	Miscellaneous Fabricated Products
Marcegaglia Austria	Subsidiary	Vienna	Austria	Miscellaneous Fabricated Products

Marcegaglia SpA

Competitors Report

CompanyName	Location	Employees	Ownership
Appia Energy SRL	Lainate, Milano, Italy	37	Private
Falck Renewables SpA	Sesto San Giovanni, Italy	239	Public
Moncada Energy Group SRL	Milano, Milano, Italy	23	Private
Officine Maccaferri SpA	Zola Predosa, Bologna, Italy	229	Public
Sorgenia SpA	Milano, MI, Italy	253	Public

Executives Report

Board of Directors

Name	Title	Function
Steno Marcegaglia	Founder, Chairman & President	Chairman

Executives

Name	Title	Function
Steno Marcegaglia	Founder, Chairman & President	President
Palmira Bazzani	Managing director	Managing Director
Emma Marcegaglia	Managing director	Managing Director
Education: New York University, Bocconi University (Business Economy) New York University, Master (Business Administration)
Antonio Marcegaglia	Managing director	Managing Director
Education: Milan¡¯s Luigi Bocconi University, business studies
Palmira Bazzani Marcegaglia	Managing Director	Managing Director
Cristiano Nevi	Responsabile-Sicurezza e Ambiente	Environment/Safety Executive
Claudio Tonelli	Responsabile-Controllo di Gestione	Administration Executive
Fiorenza Maestrini	Segreteria	Company Secretary
Luciano Costi	Responsabile-Finanziario	Finance Executive
Rino Pavesi	Responsabile-Contabilitá	Accounting Executive
Stefano Scotioli	Responsabile-Fiscale	Corporate Tax Executive
Plinio Fiorini	Direttore-Personale e Produzione	Human Resources Executive
Rino Pinotti	Direttore-Vendite	Sales Executive
Giancarlo Spotti	Direttore-Vendite	Sales Executive
Stefano Montolli	Responsabile-Marketing	Marketing Executive
Marco Campi	Direttore-Sistemi Informativi	Information Executive
Arnaldo Barini	Responsabile-Tecnico	Engineering/Technical Executive
Mario Leoni	Responsabile-Logistica	Logistics Executive
Franco Leorati	Responsabile-Acquisti	Purchasing Executive
Luciano Venturini	Responsabile-Qualitá	Quality Executive
Lorenzo Bonacina	Executive	Other
Lucio Casiraghi	Executive	Other
Sergio Cecchin	Executive	Other
Enrico Ceresetti	Executive	Other
Fabio Agostino Fasoli	Executive	Other
Fabio Favero	Executive	Other
Aldo Fiorini	Executive	Other
Lorenzo Formaglio	Executive	Other
Ezio Ercole Galli	Executive	Other
Gabriele Gavina	Executive	Other
Luciano Giol	Executive	Other
Domenico Navone	Executive	Other
Pierluigi Pistore	Executive	Other
Giovanni Romano	Executive	Other
Mauro Rosatti	Executive	Other
Stefano Zini	Executive	Other

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	4,487.5	3,115.9	5,690.1
Net sales	4,305.9	2,975.9	5,520.0
Other operating income	17.6	19.1	24.2
Raw materials and consumables employed	3,433.6	2,182.0	4,419.8
Other expenses	577.7	514.1	731.3
Total payroll costs	243.5	232.2	251.1
Fixed asset depreciation and amortisation	89.5	85.8	99.2
Other operating costs	12.4	7.4	8.9
Net operating income	130.8	94.5	179.8
Total financial income	32.8	24.1	26.3
Total expenses	56.3	72.6	117.0
Profit before tax	107.3	46.0	89.1
Extraordinary result	-61.7	15.0	-22.4
Profit after extraordinary items and before tax	45.6	61.0	66.7
Total taxation	11.9	21.4	22.1
Net profit	33.7	39.7	44.6

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	983.8	1,015.3	948.7
Provision for risks	100.7	85.6	64.7
Provision for pensions	33.6	38.7	41.1
Mortgages and loans	629.8	787.4	645.1
Trade creditors	1,215.2	1,094.6	945.4
Advances received	3.4	25.1	13.8
Bank loans and overdrafts	261.7	178.0	549.3
Other current liabilities	224.0	197.0	122.0
Accruals and deferred income	1.8	2.4	7.0
Total current liabilities	1,706.0	1,497.1	1,637.5
Total liabilities (including net worth)	3,454.0	3,424.0	3,337.2
Intangibles	5.2	6.3	6.8
Buildings	283.0	279.8	201.3
Total tangible fixed assets	745.7	827.3	651.6
Long-term investments	470.5	453.4	344.5
Total financial assets	470.8	453.8	345.0
Receivables due after 1 year	0.2	-	0.1
Total non-current assets	1,221.9	1,287.4	1,003.4
Work in progress	-	13.4	16.8
Finished goods	764.6	635.3	495.9
Net stocks and work in progress	1,523.9	1,326.4	1,423.5
Trade debtors	64.5	58.2	123.3
Other receivables	550.0	648.4	648.2
Cash and liquid assets	10.3	13.8	21.3
Marketable securities	60.4	85.1	84.4
Accruals	22.8	4.7	33.1
Total current assets	2,232.0	2,136.6	2,333.8
Total assets	3,454.0	3,424.0	3,337.2

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	1.30	1.40	1.40
Quick ratio	0.40	0.50	0.60
Current liabilities to net worth	0.02%	0.02%	0.02%
Sales per employee	0.91	0.59	1.02
Profit per employee	0.01	0.01	0.01
Average wage per employee	0.05	0.05	0.05
Net worth	983.8	1,015.3	948.7
Number of employees	3,591	3,631	3,692

Bottom of Form

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.54.55
UK Pound	1	Rs.85.48
Euro	1	Rs.68.70

INFORMATION DETAILS

Report Prepared by :

PRL

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.