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Report Date : |
11.06.2012 |
IDENTIFICATION DETAILS
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Name : |
RAFAEL ADVANCED
DEFENSE SYSTEMS LTD. |
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Formerly Known As : |
RAFAEL - ARMAMENT DEVELOPMENT AUTHORITY LTD., |
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Registered Office : |
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Country : |
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Financials (as on) : |
31.12.2010 |
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Year of Establishment : |
1948 |
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Legal Form : |
Government-Owned Private Limited Company |
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Line of Business : |
Developers, designers,
manufacturers, marketers and exporters of wide range of high-tech defense
systems for air, land, sea and space applications. |
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No. of Employees : |
6,153 |
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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Status : |
Good |
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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, 2012
|
Country Name |
Previous Rating (31.12.2011) |
Current Rating (31.03.2012) |
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Israel |
A2 |
A2 |
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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 |
RAFAEL ADVANCED DEFENSE SYSTEMS LTD.
Telephone 972 4 879 44 44; 4 879 47 77
Fax 972 4 879 46 81; 4 879 46 53/ 7
HAIFA 3102102 ISRAEL
A government-owned private limited company, registered as per file
No. 52-004218-5 on the 01.01.1995. Until December 2001 RAFAEL, originally
established in 1948, operated as a department of the Ministry of Defense,
Government of Israel.
Since the 01.01.2002 subject turned into a
state-owned government company, taking over all activities of the RAFAEL
Authority (see CHARACTER for more).
Originally registered under the name RAFAEL -
ARMAMENT DEVELOPMENT AUTHORITY LTD., which changed to the present name on the
24.09.2007.
Authorized share capital of NIS
1,000,000,000.00, divided into:-
10,000,000 ordinary
shares of NIS 100.00 each,
of which 5,798,311 shares amounting to NIS
579,831,100.00 were issued.
Subject is fully owned by the State of Israel, through the Ministry of
Defense.
1. Ilan Biran, Chairman (Major
General, Res.),
2. Dr. Raanan Cohen,
3. Ra'anan Elran,
4. Ms. Sara Friesch,
5. Ms. Zvia Gross,
6. Ovadia Harari,
7. Ehud Gindes,
8. Ms. Eti Balachsan Levi.
Yedidia Ya'ari (Major General, Res.)
Developers, designers, manufacturers, marketers and exporters of wide range
of high-tech defense systems for air, land, sea and space applications.
Marketing is carried out through foreign branches, Israel’s embassies
(special delegates), etc.
In 2011 59.7% of sales were for export (61.1% in 2010).
Activities are divided into the following
divisions:
1. Missiles Division, handling air/air missiles, air/surface missiles,
air defense and electro optical systems (flagship system is "Kipat
Barzel" (Iron Dome) missile and rocket interceptor system).
2. Electronics Systems Division, handling intelligence and
electronic warfare systems, communications systems, cellular communications,
simulators, information technologies, electro-magnetic, law enforcement
products line (i.e. police mobile computing, computerized traffic law
enforcement systems, etc.).
3. Ordnance Systems Division, handling armor products (reactive
armor), passive armor, ceramic armor), ballistics and explosives, pulsed power
and high power electro-magnetic, etc.
4. Propulsion and
explosives directorate, handling propulsion systems, pyrotechnic devices,
warheads, fusing devices, expendable naval decoys.
Also, directly and via subsidiaries, handling:
·
Combat vehicle upgrades and
navel systems
·
Navigating and attack
system for fighter planes
·
Remote Control Weapon
Stations (RCWS)
·
Micro-satellites (jointly
with the ISRAEL AEROSPACE INDUSTRIES).
Main client is the Israel Ministry of Defense (IDF) (35.9% of sales in
2011, 35.5% in 2010).
Among other clients are defense forces worldwide, including US Army &
Navy, The Polish Defense Ministry/ WZM, Dutch Air-Force.
Subject maintains strong cooperation with RAYTHEON COMPANY of the U.S.A.
Amongst local suppliers: EL-FAR ELECTRONICS, P.L.R. SYSTEMS, G.M. CASES,
NICE SYSTEMS, NEW TECHNOLOGY R.K., B.T.I QUALITY METAL CENTER, GUMI TEL AVIV, VERED
EROSIA, WIETEC, DGS LASER SAFETY, ELI HAJAJ, BQR RELIABILITY ENGINEERING, B.G.
TECHNICAL SUPPORT, NEPCON MANUFACTURING TECH., GLOBUS TECHNICAL EQUIPMENT, ELMO
MOTION CONTROL, POLYURETHANE, ARAN RESEARCH, ELI SEVI GENERATORS, A. HUBER
& SONS, SEGEN TECHNOLOGIES, AHARON YOSEF - PACKAGING INDS., K.B.I. LAHAT
TECHNOLOGIES, LEWENSTEIN WOLFSON AGENCIES, R.C.M., GIGALINX, HAIM YUDASHKIN,
etc.
Operating from corporate headquarters premises and plants in the David
Center (“Machon David”), Kiryat Bialik (near Haifa), from the Missile Division
facility in Leshem Industrial Park, Misgav (in the Upper Galilee) and the
Shadma Plant in the Negev. Also operating from a marketing office in Givatayim.
Also operate from branches in Washington and New York, U.S.A., Seoul
(Korea), Rio De Janeiro (Brazil), Canberra (Australia), New Delhi (India),
London (UK) and Madrid (Spain).
Having 6,153 employees (had 6,142 employees in 2010).
According to a report from January 2010, some 80% of employees are in
R&D.
Consolidated B/S
shows:
NIS
(thousands)
31.12.2009 31.12.2010
ASSETS
Current assets
Cash & cash equivalents 1,023,105 1,063,214
Short term investments 1,260,162 1,235,620
Customers 1,657,141 2,148,563
Other debtors 351,615 341,076
Inventories 825,216 743,386
5,117,239 5,531,859
Investments & long term debentures 93,785 163,302
Fixed assets, net 1,133,918 1,237,315
Other non-current assets 114,325 110,129
6,459,267 7,042,605
======== ========
LIABILITIES
Current liabilities 3,402,413 3,611,784
Long term liabilities 1,249,711 1,233,482
Equity 1,807,143 2,197,339
6,459,267 7,042,605
======== ========
31.12.2011 B/S main indicators (full B/S unavailable):
Total assets NIS 7,592.5 million.
Equity: NIS 2,617 million.
During 2005 subject raised NIS 350 million in a
private bonds issue for institutional bodies.
In March 2012 subject raised NIS 450 million in
a private bonds issue (rated AAA) for institutional bodies.
Consolidated backlog orders as of 31.12.2011
were NIS 13.24 billion, 71% of which for export.
In 2011, NIS 499.5 million was invested in
R&D (NIS 538.6 million in 2010).
In June 2012 subject transferred the Ministry of
Finance NIS 316 in dividends for its 2010 profits.
There are 16 charges for unlimited amounts registered
on the company’s assets, in favor of local banks (last charge placed November
2010).
Consolidated
Statement of Income
NIS
(thousands)
Year
ended 31.12
2008 2009 2010
Revenues
Local Ministry of Defense 2,265,954 2,681,164 2,456,787
Other local clients 212,116 171,105 230,506
Overseas 3,005,190 3,469,256 4,223,351
5,483,260 6,321,525 6,910,644
Gross profit 1,138,978 1,387,061 1,392,888
Operating profit 316,044 444,225 294,976
Profit before taxes on
income 204,144 573,345 534,406
Net profit 166,040 441,415 632,799
======== ======== ========
Note: Exceptional profit in 2010 derived from financial deals and the sale
of grand-daughter company MEDINGO.
2011 consolidated sales were NIS 7,080.2 million, making a net profit of
NIS 396.6 million.
Among subsidiaries (main ones):
SEMI-C
R.F.D.L. LTD., 100%, holding company.
OPGAL LTD., 49.99%, developers, manufacturers of
electro-optic systems,
RAFAEL USA INC. (RUSA), 100%, USA, a holding and marketing company,
GAL-EL (MMIC),
50%, co-owned by subject and ELTA.
R.D.C. RAFAEL DEVELOPMENT CO. LTD., 49.9% (a
joint venture with ELRON ELECTRONIC), an incubator, business development and a
holding company, for civilian commercializing of developments by subject, for
hi-tech companies in a wide range of disciplines - from medical devices to
telecommunications and semiconductors, and many others. Holds shares in several
companies.
ERCAS B.V., 100%, the Netherlands, fully owns DYNAMIT NOBEL DEFENCE (DND),
of Germany manufacturers of weapon systems, and PAP of Spain.
R-JET, 10%,
BECKER TURBO SYSTEMS ENGINEERING 2005 LTD., 50%, development of tiny jet
engines.
SMART SYSTEMS PTE LTD., 50%,
RAFAEL FAR EAST PTE LTD. (RFE), 100%, a holding
company.
VISIONMAP, 24%.
MPREST SYSTEMS (2003) LTD., 50%, developers of control and radar software.
SHAFIR PRODUCTION SYSTEMS LTD., 49%, manufacturers, exporters and marketers
of custom-made automatic computerized machinery and robots.
ACCUBEAT LTD., 50%, Developers, manufacturers, marketers and exporters of very
high precision oscillators and clocks, based on the rubidium atom.
CONTROP PRECISION TECHNOLOGIES LTD., 50%, developers, manufacturers, marketers and
exporters of electro-optics and control systems.
Bank Hapoalim Ltd., Kikar Paris Branch (No.
736), Haifa, account No. 222202 (and other accounts as well).
Israel Discount Bank Ltd., Main Branch (No.
070), Haifa, account No. 40045.
Mizrahi Tefahot Bank Ltd., Haifa Business Branch
(No. 070), Haifa, account No. 147538.
A check with the Central Banks’ database did not
reveal any negative information regarding subject’s a/m accounts.
Also known to all local banks.
Nothing unfavorable learned.
Subject is veteran and one of the world's leading companies in design,
development, production and delivery of a wide range of high-tech defense
systems. Its know-how is embedded in almost all Israel Defense Forces (IDF)
systems in operation today. It has been developing break-through military
technologies and systems, such as "Kipat Barzel" which was developed
(jointly with local company ELTA) in less than 3 years and became operational
during 2011, designed for protecting population from short-range rockets.
Subject is certified for AS9100, ISO14001, ISO9001:2008 and others.
In June 2006, it was reported that subject will supply the Czech Army with
advanced combat stations for US$ 120 million (6 years deal). The deal was won
jointly with an Austrian firm (a subsidiary of GENERAL DYNAMICS), which is the
main contractor. In May 2008 it was reported that the deal has been frozen due
to disagreements between GD and the Czech Government. Subject reportedly
delayed payments to some subcontractors. Later it was reported that the deal
will probably come through eventually.
In July 2006, it was reported that subject will supply the US Army in Iraq
with amour vehicles protection systems for US$ 55 million.
Subject supplied the British Air Force navigation systems in value of US$
103 million, according to reports from August 2006.
In February 2007, it was reported that subject, jointly with PVE of the
USA, will provide the US Marines with amour vehicles in a deal value of US$ 37
million.
In June 2007, there were several reports on new deals, including winning a
tender of US$ 425 million anti-tanks supply for Spanish combat helicopters.
Another report was concerning major significant deals with the Indian
Ministry of Defense in total value of US$ 4 billion, for air defense systems by
subject and other Israeli military systems manufacturers. In that aspect, there
were reports on corruption accusations involving subject, which came from
Indian MoD officials, but proved false. In September 2008 it was reported that
the Indian Defense Cabinet approved the deals. In this framework subject was awarded
a US$ 270 million contract for missiles systems, followed by a
In July 2007 Israeli MoD signed a contract with subject for supply of 100
anti-rockets monitoring and neutralizing defense systems, in a project volume
of NIS 300 million.
In December 2007, it was reported that subject will upgrade attack and
navigation systems "Lightning" systems) in the German Air-Force
aircraft "EuroFighter", in a deal value of US$ 25 million, similar to
a previous order.
This deal also continuing a wave of recent deals: selling naval arms
systems to the U.S. Navy (US$ 36 million deal jointly with BAE, subject's part
is US$ 25 million), and other deals to the American Army, including a U.S. ARMY
tender won in September 2007, for distant doors blasting systems in value of
US$ 52 million. This system won the US Army Development Award.
A business dispute erupted between ELRON and subject regarding their joint
venture R.D.C. and the rights for using its technology in the civilian markets.
In December 2007, the parties reached an agreement settling the dispute and
amending their initial agreement. Pursuant to the Addendum, RDC’s rights to
commercialize certain technologies of subject will continue without time
restrictions.
In February 2008 it was reported that subject will supply Singaporean Air
Force weapon system for several hundred million US$.
In August 2008 it was reported that subject will supply armament to the US
Army for US$ 16 million.
In April 2009 it was reported that subject won an US Army tender in volume
of US$ 20 million to provide defensive for armored personnel carriers. Subject is a sub-contractor for GENERAL DYNAMICS in the project, where the two already
cooperate in similar project in volume of US$ 120 million for armored vehicles
protection in Afghanistan and Iraq.
Reportedly, during 2009 subject sold anti tanks missiles to several
European countries in total value of US$ 400 million.
In November 2010 subject acquired 49% SHAFIR PRODUCTION SYSTEMS, for NIS 28
million.
In January
During 2011, subject acquires 50% of ACCUBEAT. (April, price not
forthcoming) and CONTROP PRECISION TECHNOLOGIES (July, for a reported sum of
NIS 150 million – NIS 175 million). Also subject's subsidiary ERCAS B.V.
acquired PAP of Spain, for NIS 9.2 million.
In September 2011 it was reported that subject will supply missiles to
South Korea in volume of US$ 43 million.
In April 2012 it was reported that subject is acquiring 40% of Brazilian
company GESPI, providing system maintenance services.
Israel is
considered one of the largest exporters of military and defense equipment in
the world. Israel military and defense industries sales in 2010 rose 3% from
2009 to US$ 9.6 billion, of which US$ 7.2 billion for export (comparing to US$
6.9 billion in 2009). The U.S.A. is the largest market for the military and
defense industries' export, followed by India. Further US$ 1 billion are
exported in broader defense systems.
Sales by the 4
largest local defense industries (subject, IAI, ELBIT SYSTEMS and IMI)
comprised some 85% of overall sales.
Good for trade engagements.
Good for all credits.
Note: Since the beginning of 2012 Israel Post
started using a new area code method of 7 digits (the old method of 5 digits
will still be valid till end of 2012).
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.55.36 |
|
|
1 |
Rs.85.64 |
|
Euro |
1 |
Rs.69.21 |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.