MIRA INFORM REPORT

 

 

Report Date :           

06.03.2012

 

IDENTIFICATION DETAILS

 

Name :

GSM (OPERATIONS) PTY LTD

 

 

Registered Office :

1 Billabong Place,   Burleigh Heads , Queensland , Zip/postal code  4220

 

 

Country :

Australia

 

 

Financials (as on) :

31.12.2011

 

 

Date of Incorporation :

20.01.1999

 

 

Com. Reg. No.:

085950803

 

 

Legal Form :

Australian Proprietary Company

 

 

Line of Business :

Manufacturing, wholesale and retail of surfwear and accessories, snow and sports apparel, skate clothing and hardware etc

 

 

No. of Employees :

6,000 (Billabong Group)

 

RATING & COMMENTS

 

MIRA’s Rating :

A

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Maximum Credit Limit :

USD 4,000,000

 

 

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 30th, 2011

 

Country Name

Previous Rating

                   (30.06.2011)                  

Current Rating

(30.09.2011)

Australia

a1

a1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

 Bottom of Form

Identification details  Bottom of Form

 

 

Verified Address

Subject name                :   GSM (OPERATIONS) PTY LTD

 

Business address         :   1 Billabong Place

Town                             :   Burleigh Heads

Province                        :   Queensland

Zip/postal code              :   4220

Country                         :   Australia

Tel                                :   +61 7 55899899

Fax                               :   +61 7 55899800

Website                                    :   www.billabongbiz.com  

           

Registered address      :   1 Billabong Place

Town                             :   Burleigh Heads

Province                        :   Queensland

Zip/postal code              :   4220

Country                         :   Australia

 

 

Postal address             :   P.O. Box 283

Town                             :   Burleigh Heads

Province                        :   Queensland

Zip/postal code              :   4220

Country                                                           :   Australia

 

 

Summary details

 

Executive Summary

Date founded or registered          :   20/01/1999

Legal form                                 :   Australian Proprietary Company

Chief executive                          :   Derek O'Neill

Issued & paid up capital             :   AUD 1,713,773

Sales turnover                            :   AUD 1,687,733,000 (Group-consolidated 12 months, 30/06/2011)

Net income                                :   AUD 118,045,000 (Group-consolidated 12 months, 30/06/2011)

Total fixed assets                       :   AUD 2,419,965,000 (Group-consolidated 12 months, 30/06/2011)

Line of business                         :   Manufacturing, wholesale and retail of surfwear and accessories, snow and sports apparel, skate clothing and hardware etc.

Staff employed                                                                        :   6,000 (Billabong Group)

 

Credit risk opinion

 

Company Analysis

Country risk                               :   Country risk is minimal

Operation trend                          :   Operational trend is declining

Management experience :   Management is adequately experienced

Financial performance                :   Financial performance is good

Organization structure                :   Organizational structure is stable

Detrimental                    :   No detrimental records found

Payment history                                    :   No payment delays noted

Credit amount suggestion     :   USD 4,000,000

Credit amount asked                                      :   Not described.

 

 

Statutory details

 

Registry Data

Registration date            :   20/01/1999

Legal form                     :   Australian Proprietary Company

Registration no              :  Australian Company Number: 085950803

Registered authority       :   Australian Securities & Investments Commission

Fiscal/ Tax no                :   Australian Business Number: 67085950803

Registry status              :   Live/Active

Previous name               :   None reported.

Change of legal form       :   None reported.

 

 

Management / directors

 

Key Management

Name                :           Derek O'Neill

Designation       :           Chief Executive Officer

 

Name                :           John Craig Uttermare White

Designation       :           Chief Financial Officer

 

 

Board of directors / other appointments

 

Appointments

Name                            :           Derek O'Neill

Designation                   :           Director

Appointment date           :           15/01/03

Address                        :           5 Harper Court

Casuarina, NSW 2487

Australia

 

Biography                      :           Born on 29-01-1963 in Yallourn, Victoria, Australia.

 

Mr. Derek O'Neill is Chief Executive Officer and Executive Director of Billabong International Limited since January 1, 2003. He was appointed as Executive Director on March 5, 2002. He has previously held senior management positions with Billabong, including General Manager of the Company's European operations from 1992 to 2003. In 2002, Mr. O'Neill was awarded a Chevalier d’Ordre de Merite Nationale for services to business in France.

 

Name                         :      John Craig Uttermare White

 

Designation                :      Director

 

Appointment date        :      23/05/05

 

Address                     :      57 Woodgee Street

Currumbin, QLD 4223

Australia

 

Biography                   :      Born on 20-12-1962 in Harare, Zimbabwe.

 

Mr. Craig White is Chief Financial Officer of Billabong International Limited. He has held this post since October 29, 2004. He holds a Bachelor of Science in Accounting and Economics from University of Southampton and a Masters of Business Administration from Deakin University.

 

 

Name                         :      Julian Ross Blanchard

 

Designation                :      Director

 

Appointment date                                      :            23/04/10

 

Address                     :      8 Bittern Avenue

Burleigh Waters, QLD 4220

Australia

 

Biography                   :      Born on 07-08-1961 in Blackwood, South Australia, Australia.

 

Name                            :           Colette Paull

Designation                   :           Alternate Director

Appointment date           :           19/08/05

Address                       :      725 Currumbin Creek Road

Currumbin Valley, QLD 4223

Australia

 

Biography                   :      Born on 04-11-1950 in Sydney, New South Wales, Australia.

 

Ms. Colette Paull is Independent Non-Executive Director of Billabong International Limited since July 4, 2000. Ms. Paull was one of the employees of the Company’s business in 1973. Since that time, Ms. Paull has been involved in the development of the Company’s business from its initial growth within Australia to its expansion. Ms. Paull previously held the position of Company Secretary until October

1, 1999. She is also Director of Plantic Technologies Limited. She is Member of the Nominations, Human Resource and Remuneration Committees.

Name                            :           Maria Manning

Designation                   :           Company Secretary

Appointment date           :           27/04/06

Address                        :           3 Clarkson Place

Kenmore Hills, QLD 4069

Australia

 

Biography                      :           Born on 17-01-1959 in Gympie, Queensland, Australia.

 

Ms. Maria A. Manning is Company Secretary of Billabong International Limited since April 2006. She has over 20 years of experience as Company Secretary of publicly-listed companies in Australia. She holds a Bachelor of Business in Accounting and is Certified Practising Accountant and Fellow of the Institute of Chartered Secretaries.

 

 

Staff employed            :      6,000 (Billabong Group)

 

 

Key Advisors

Auditors                       :      PRICEWATERHOUSECOOPERS

1 Eagle Street

Brisbane, QLD 4000

Australia

 

 

Share capital

 

Composition

Authorized Capital                                 :   AUD 1,713,773

No of shares                                         :   1,713,773 Ordinary Shares

Share par value                                     :   AUD 1

Issued capital                                       :   AUD 1,713,773

Paid up capital                                                                                              :   AUD 1,713,773

 

 

ownership / shareholders

 

How listed                                            :   Full List

 

Composition

Shareholder name          :   BILLABONG INTERNATIONAL LIMITED

Address                        :   1 Billabong Place

Burleigh Heads, QLD 4220

Australia

 

No. of shares                 :   1,713,773 Ordinary Shares

% of shares                            :   100%

 

 

Related companies & corporate Affiliations

 

Structure

 

Name                :   BILLABONG INTERNATIONAL LIMITED

Affiliation type    :   Parent Company

Address            :   1 Billabong Place

Burleigh Heads, QLD 4220

Australia

 

Comments                                         :   Billabong International Limited engages in the wholesaling and retailing of surf, skate, and snow apparel and accessories. Geographical Segments Australasia: This segment includes Australia, New Zealand, Japan, South Africa, Singapore, Malaysia, and Indonesia. Americas: This segment includes the United States of America, Canada, Brazil, Peru, and Chile. Europe: This segment includes France, Germany, the United Kingdom, Spain, Italy, the Netherlands, Belgium, and Austria. Rest of the World: This segment relates to royalty receipts from third party operations. Acquisitions In July 2008, the company acquired the assets and certain liabilities of Sector 9 Incorporated. In September 2008, the company acquired the assets and certain liabilities of Eternity Surf Pty Limited and I.J.J. Pty Limited. In October 2008, the company acquired 100% of the issued shares of Two Seasons Limited. History Billabong International Limited was founded in 1973.

 

Name                :   GSM (NZ OPERATIONS) LIMITED

Affiliation type    :   Sister Company

Address            :   44 Arrenway Drive

Albany, Auckland 0632

New Zealand

 

Name                :   GSM (JAPAN) LIMITED

Affiliation type    :   Sister Company

Address            :   4-3-2 Ohtsu-Grand Building 6F Bakuro-Machi Chuo-Ku

Osaka 541-0059

Japan

 

Name                :   PINEAPPLE TRADEMARKS PTY LTD

Affiliation type    :   Sister Company

Address            :   1 Billabong Place

Burleigh Heads, QLD 4220

Australia

 

Name                :   NIXON EUROPE SARL

Affiliation type    :   Sister Company

Address            :   185 Avenue de Pascouaou

40150 Soorts Hossegor

France

 

Name                :   NIXON PACIFIC PTY LTD

Affiliation type    :   Sister Company

Address            :   1 Billabong Place

Burleigh Heads, QLD 4220

Australia

 

Name                :   GSM TRADING (SINGAPORE) PTY LTD

Affiliation type    :   Sister Company

Address            :   8 Jalan Kilang Timor #03-05

Kewalram House

Singapore 159305

Singapore

 

Comments        :   Registered in Australia.

 

Name                :   GSM (CENTRAL SOURCING) PTY LTD

Affiliation type    :   Sister Company

Address            :   27th Floor Langham Place Office Tower

8 Argyle Street Mongkok, Kowloon Hong Kong

Comments        :   Registered in Australia.

 

Name                :   GSM (CANADA) PTY LTD

Affiliation type    :   Sister Company

Address            :   5825 Kieren Street Ville St Laurent Quebec H4S 0A3, Canada

Comments        :   Registered in Australia.

 

Name                :   GSM TRADING (SOUTH AFRICA) PTY LTD

Affiliation type    :   Sister Company

Address            :   2A Da Gama Road

Jeffrey's Bay, Eastern Cape 6330

South Africa

 

Comments      :   Registered in Australia.

 

Related companies and corporate affiliations comments

Other companies of the Billabong Group should be considered affiliates of the Subject.

 

 

Bank & mortgages

 

Bank Details

Name of bank                                       :   Commonwealth Bank of Australia

Address                                               :   Australia

Account details                                     :   Current Account

 

Name of bank                                       :   HSBC Bank Australia Limited

Address                                               :   Australia

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

 

Satisfied Charges:

 

ASIC Charge Number: 689273

Date Registered: 31-03-1999

Charge type: Both Fixed & Floating

Date Created: 12-03-1999

Chargees Name: HSBC BANK AUSTRALIA LIMITED & HSBC BANK PLC

 

ASIC Charge Number: 706921

Date Registered: 28-07-1999

Charge type: Both Fixed & Floating

Date Created: 30-06-1999

Chargees Name: COMMONWEALTH BANK OF AUSTRALIA

 

ASIC Charge Number: 706926

Date Registered: 28-07-1999

Charge type: Both Fixed & Floating

Date Created: 30-06-1999

Chargees Name: COMMONWEALTH BANK OF AUSTRALIA

 

ASIC Charge Number: 762792

Date Registered: 21-08-2000

Charge type: Both Fixed & Floating

Date Created: 04-08-2000

Chargees Name: COMMONWEALTH BANK OF AUSTRALIA

 

ASIC Charge Number: 899144

Date Registered: 25-10-2002

Charge type: Both Fixed & Floating

Date Created: 22-10-2002

Chargees Name: CBA CORPORATE SERVICES (NSW) PTY LIMITED

 

ASIC Charge Number: 901300

Date Registered: 06-11-2002

Charge type: Both Fixed & Floating

Date Created: 22-10-2002

Chargees Name: CBA CORPORATE SERVICES (NSW) PTY LIMITED

 

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                       :   31/12/11

Type of accounts                                  :   Full audited

Currency                                              :   Australia Dollar (AUD)

Exchange rate                                      :   1 USD = AUD 0.93 as of 03-02-2012

 

Summarized Financial Information

Consolidation type                                                                               :   Group Consolidated          Group Consolidated         Group Consolidated Currency                                                                                                  :   Australia Dollar (AUD)       Australia Dollar (AUD)      Australia Dollar (AUD) Denomination                                                                                        :   (x1) One                            (x1) One                           (x1) One

Date of financial year end                                                                    :   31/12/11                             30/06/11                            30/06/10

 

Length of accounts                                                                              :   6 months                           12 months                        12 months

 

Sale turnover / Income                                                                             :   849,834,000                        1,687,733,000                    1,487,527,000

 

Profit before tax                                                                                        :   22,802,000                          126,900,000                       203,031,000

 

Net income                                                                                               :   15,975,000                          118,045,000                       145,166,000

 

Non current assets                                                                                  :   1,523,579,000                     1,511,111,000                    1,331,634,000

 

Current assets                                                                                         :   914,893,000                        908,854,000                       878,685,000

 

Inventories                                                                                                :   376,992,000                        348,738,000                       240,400,000

 

Total assets                                                                                              :   2,438,472,000                     2,419,965,000                    2,210,319,000

 

Current liabilities                                                                                     :   417,246,000                        389,208,000                       354,779,000

 

Non current liabilities                                                                              :   860,026,000                        833,918,000                       637,961,000

 

Total liabilities                                                                                          :   1,277,272,000                     1,223,126,000                    992,740,000

 

Share equity                                                                                             :   1,161,200,000                     1,196,839,000                    1,217,579,000

 

Retained earning                                                                                     :   646,361,000                        663,289,000                       630,290,000

 

Comments                                         :   The group’s consolidated financial information above relates to the Subject’s Parent / Ultimate Holding Company Billabong International Limited and all its subsidiaries.

 

Note: Billabong International Limited, GSM (Europe) Pty Ltd, GSM (Operations) Pty Ltd, GSM (Trademarks) Pty Ltd, Pineapple Trademarks Pty Ltd, GSM (Central Sourcing) Pty Ltd, Amazon (New Zealand) Pty Ltd, GSM Trading (South Africa) Pty Ltd, Board Sports Retail Pty Ltd, Seal Trademarks Pty Ltd and GSM (Canada) Pty Ltd are parties to a deed of cross guarantee under which each company guarantees the debts of the others. By entering into the deed, the wholly-owned entities have been relieved from the requirement to prepare a financial report and Directors’ report under Class Order 98/1418 (as amended) issued by the Australian Securities and Investments Commission.

 

 

Operation details

 

Main activities                                    :   The Subject is engaged in manufacturing, wholesale and retail of surfwear and accessories, snow and sports apparel, skate clothing and hardware etc.

 

The Subject is a wholly owned subsidairy of Billabong International Limited. Billabong International Limited's core business is the marketing, distribution, wholesaling and retailing of apparel, accessories, eyewear, wetsuits and hardgoods in the boardsports sector under the Billabong, Element, Von Zipper, Honolua Surf Company, Kustom, Palmers Surf, Nixon, Xcel, Tigerlily, Sector 9, DaKine and RVCA brands.

 

Billabong International Limited's shares are publicly listed on the Australian Securities Exchange.

 

Billabong International Limited's products are licensed and distributed in more than 100 countries and are available in approximately 11,000 doors worldwide. Products are distributed through specialised boardsports retailers and through the Billabong International Limited's own branded retail outlets.

 

The majority of revenue is generated through wholly-owned operations in Australia, North America, Europe, Japan, New Zealand, South Africa and Brazil.

 

Recent news:

On 16 February 2012, trading in Billabong International Limited shares was halted at the companies request because of reports of a A$776 million takeover offer from TPG Capital, a United States private equity firm.

 

On 17 February 2012, Billabong International Limited announced it intentions to undergo a major restructure. Up to 150 stores will be closed.

 

400 full-time jobs will be lost internationally, including up to 80 in Australia.

 

48.5% of its' Nixon watches and accessories brand name will be sold to Trilantic Capital Partners (TCP) to establish Nixon as a joint venture.

 

The partial sale will give approximately $US285 ($A265.78) million in net proceeds to Billabong International Limited. It is intended that proceeds from the sale will be used to reduce debt.

 

In February 2012, TPG Capital made two takeover proposals which were both unaccepted. Billabong International Limited announced that Gordon Merchant, who owns 15% of the company's shares, had rejected the both offers.

 

Product & services                                :   - Surf apparel, accessories and hardware

- Skate apparel, accessories and hardware

- Snow and sports apparel, accessories and  hardware

- Eyewear

- Wetsuits

 

Brand                                                :   Billabong

Palmers Surf

Honolua Surf Swell.com Von Zipper

Kustom (footwear) Nixon

Xcel Wetsuits and Tigerlily brands and

Element skate clothing and hardware

 

Purchases

International                                         :   Mainly from China

 

Sales

Local                                                   :   Yes

International                                         :   Worldwide

 

 

Key events                                           :   28 February 2012

Billabong Ends TPG Talks After Rejecting Sweetened $906 Million

Takeover

 

Billabong International Ltd. (BBG), Australia’s largest surfwear company, ended talks with TPG Capital after rejecting a sweetened A$841.8 million ($906 million) takeover offer.

 

The Fort Worth, Texas-based buyout firm was prepared to raise its bid 10 percent to A$3.30 a share to gain access to the retailer’s accounts, Billabong said in a statement today. Unanimously rejecting the offer, the company’s board also said founder and largest shareholder Gordon Merchant and another director wouldn’t consider a bid of less than A$4 a share.

 

Billabong, which had a market value of A$3.84 billion in May 2007, plans to sell assets, cut jobs and close stores as debt payments loom and retailers battle stalling demand worldwide. The stock today retained most of the gain since TPG’s approach was disclosed this month, after Billabong said it

was still ready to “engage” with the firm or another suitor.

 

“It’s not too dramatic a selloff,” said Stan Shamu, market analyst at IG Markets in Melbourne. “Most shareholders would have been thinking this is a great opportunity to salvage something out of the stock. Whichever way you look at it, it’s a tough industry to be in at the moment.”

 

Shares in the Gold Coast-based retailer, which fetched A$1.79 before Billabong disclosed TPG’s approach on Feb. 17, fell 2.3 percent to A$2.98 at the close of Sydney trading. The stock has declined 65 percent in the past 12 months.

 

Opposing Directors

 

A letter to the board from lawyers representing Merchant, who founded Billabong in 1973, and Colette Paull, who joined the company the same year, said both would oppose steps to let TPG conduct due diligence even with an offer of A$4 a share, the retailer said.

 

Merchant owns almost 15 percent of the stock and Paull owns 1.2 percent, according to the company’s 2011 annual report.

Any sale may have to be structured such that Merchant retains a stake in Billabong after a takeover, Andrew McLennan, an equity analyst at Commonwealth Bank of Australia in Sydney, said yesterday.

 

“The board is prepared to engage with TPG or any other party that makes a proposal which is in the best interest of the company and its shareholders,” Billabong said in its statement today.

 

The offer could be increased to A$3.85 a share and still be the cheapest comparable clothing sector takeover since at least 1998, according to data compiled by Bloomberg.

‘In Play’

 

“The company is in play -- there’s obviously a high level of interest,” said Nick Berry, a Sydney-based analyst at Nomura Holdings Inc. Still, Merchant’s opposition is an impediment to a takeover and Billabong’s earnings performance in the next 12 months “probably isn’t going to improve greatly,” he said.

After reaching a record high of A$17.67 in 2007, Billabong’s shares then slid 90 percent before TPG’s approach was disclosed, the biggest drop for any consumer discretionary stock in Australia’s benchmark S&P/ASX 200

Index in that period.

 

The company’s debt increased following acquisitions as Billabong sought

to reduce reliance on its namesake brand, which generated almost all of its sales at the time of its IPO in 2000.

 

Profits tumbled as consumer spending slumped in the U.S., Europe and Australia and major stores introduced their own brands to compete with independent surf labels. The decline has been compounded as a stronger Australian dollar cuts the value of overseas sales when earnings are repatriated.

 

First-half net income fell 72 percent to A$16.1 million in the six months ended Dec. 31. That was the smallest half-year profit since the surfwear maker first sold shares to the public in 2000. Net debt totaled A$525.6 million.

 

Billabong said this month that it will close as many as 150 of its 677 stores worldwide by June 2013, and cut about 400 jobs. It also agreed to sell 51.5 percent of its Nixon accessory and clothing business to buyout firm Trilantic Capital Partners and management to raise $285 million and reduce borrowings by more than one-third.

 

Credit Suisse Holdings (Australia) Limited Acquires Stake In Billabong

International Limited

Monday, 20 Feb 2012

Billabong International Limited announced that Credit Suisse Holdings (Australia) Limited (on behalf of Credit Suisse Group AG and its affiliates) has acquired 12,852,218 common stock in the Company, which represents

5.04% of the voting power.

 

 

Billabong International Limited Establishes Nixon Joint Venture

Thursday, 16 Feb 2012

Billabong International Limited announced that it has entered into definitive agreements with Trilantic Capital Partners (TCP) to establish a joint

venture to accelerate the growth of the Nixon brand globally. Billabong and Trilantic will each hold approximately 48.5% of Nixon, a brand in the global youth accessory market, and management will purchase the remaining

3.0% stake. The transaction is expected to close within 90 days, subject to certain anti-trust approval and customary closing conditions.

 

Billabong International Limited Announces H1 2012 Dividend

Thursday, 16 Feb 2012

Billabong International Limited announced an interim dividend of AUD 0.03 per share for the first half of fiscal 2012 (previous corresponding period interim dividend: AUD 0.16 per share). The record date is March 19, 2012 and the dividend will be paid on April 19, 2012.

 

Billabong International Limited Completes Surfection Acquisition

Thursday, 22 Sep 2011

Billabong International Limited announced that it moved to 100% control of the Sydney-based retailer Surfection, a business previously operated under a joint venture between the Billabong Group and interests associated with retailer Chris Athas. The acquisition was funded through the issue of

1,064,516 new ordinary shares in the Company at an issue price of AUD

3.72 per share.

 

Invesco Australia Limited Acquires Stake In Billabong International Limited

Friday, 9 Sep 2011

Billabong International Limited announced that Invesco Australia Limited has acquired 14,231,976 ordinary shares in the Company, which represents 5.60% of the voting power.

 

Invesco Australia Ltd Ceases To Be Substantial Holder In Billabong

International Limited

Friday, 2 Sep 2011

Billabong International Limited announced that Invesco Australia Ltd has ceased to be a substantial holder in the Company as of August 31, 2008. Previously, Invesco Australia Ltd held 12,742,665 ordinary shares in the Company, which represents 5.02% of the voting power.

 

Billabong International Limited Announces FY 2011 Final Dividend

Thursday, 18 Aug 2011

Billabong International Limited announced that it has resolved to pay a final dividend of AUD 0.13 per fully paid ordinary share partially franked to 25% based on tax paid at 30% (2010: AUD 0.18 partially franked to 50% based on tax paid at 30%). The record date is September 23, 2011 and the dividend will be paid on October 21, 2011.

 

Invesco Australia Ltd Acquires Stake In Billabong International Limited

Thursday, 16 Jun 2011

Billabong International Limited announced that Invesco Australia Ltd has acquired 12,742,665 ordinary shares in the Company, which represents

5.02% of the voting power.

 

 

Invesco Australia Limited Ceases To Be Substantial Holder In Billabong

International Limited

Wednesday, 8 Jun 2011

Billabong International Limited announced that Invesco Australia Limited has ceased to be a substantial holder in the Company as of June 6, 2011. Previously, Invesco Australia Limited held 12,949,033 ordinary shares in the Company, which represents 5.11% of the voting power.

 

National Australia Bank Ltd. Ceases To Be Substantial Holder In Billabong

International Limited

Monday, 28 Feb 2011

Billabong International Limited announced that National Australia Bank Ltd. has ceased to be a substantial holder in the Company as of February 23,

2011. Earlier National Australia Bank Ltd. held 13,125,139 ordinary shares representing 5.191% issued share capital of the Company.

 

Billabong International Limited Announces Interim Dividend

Thursday, 17 Feb 2011

Billabong International Limited announced an interim dividend of AUD 0.16 per share. The record date for determining entitlements to the dividend is March 21, 2011 and will be paid on April 21, 2011.

 

Billabong International Limited Announces Holding Interest Of Franklin

Resources, Inc And Its Affiliates

Sunday, 16 Jan 2011

Billabong International Limited announced that Franklin Resources, Inc and its affiliates have an interest of 12,679,517 ordinary shares, which represents 5.00% of voting power in the Company.

 

 

Property & Assets

Premises                                             :   The Subject operates from premises located at the verified heading

address consisting of production facilities, warehouse, administrative office.

 

Branches                                                                                                      :   None reported.

 

 

 

 

Summarized country risk

 

Central bank                                          :   Reserve Bank of Australia

Reserve of foreign exchange & gold         :   US$ 43.879 billion

Gross domestic product – GDP               :   US$ 1.448 trillion

 

GPP (Purchasing power parity)               :   918.529 billion of International dollars

 

GDP per capita - current prices               :   US$ 64,351

 

GDP - composition by sector                  :   agriculture: 4.1% industry: 26% services: 70%

 

Inflation :                                               2008: 4.4%

2009: 1.8%

2010: 2.8%

 

Unemployment rate                                2008: 4.2 %

2009: 5.6 %

2010:5.2  %

 

Public debt

(General Government gross

debt as a % GDP)                                  2008:  11.6%

2009:  17.6%

2010:    22.3 %

 

Government bond ratings                        Standard & Poor's: AAA-/Stable/A-1+

Moody's rating: Aaa

Moody's outlook: STA

 

Market value of publicly traded shares      US$ 1.258 trillion

 

Largest companies in the country         :   Westpac Banking Group (Major Banks), BHP Billiton (Diversified Metals & Mining), Commonwealth Bank (Major Banks), National Australia Bank (Major Banks), ANZ Banking (Major Banks), Telstra (Telecommunications services), Wesfarmers (Food Retail)

 

Trade & Competitiveness Overview

 

Total exports                                         US$210.7 billion

 

Exports commodities                             coal, iron ore, gold, meat, wool, alumina, wheat

 

Total imports                                         US$187.2 billion

 

Imports commodities                             machinery and transport equipment, computers and office machines, telecommunication equipment and parts, crude oil and petroleum products

 

Export - major partners                           Japan 18.9%, China 14.2%, South Korea 8%, US 6%, NZ 5.6%, India

5.5%, UK 4.2%

 

Import - major partners                           China 15.5%, US 12.8%, Japan 9.6%, Singapore 5.6%, Germany

5.2%, UK 4.3%, Thailand 4.2%

 

FDI Inflows                                            2008: US$46,722 million

2009: US$22,572 million

2010: US$32,472 million

 

 

 

FDI Outflows                                                                          2008: US$32,819 million

2009: US$18,426 million

2010: US$26,431 million

 

 

Best countries for doing business           :   10 out of 183 countries

Global competitiveness ranking               :   20 (ranking by country on a basis of 142, the first is the best)

 

 

Country and Population Overview

Total population                                    : 22.23 million

Total area                                             : 7,692,024 km2

Capital                                                 :  Canberra

Currency                                                                                                      :   Australian Dollars (AUD)

Internet users as % of total population     : 76.00%

 

 

Payment history

 

Purchase Term

Local                                                    :   Prepayment, Bank transfer, Credit up to 120 days

International                                          :   L/C, Prepayment, Telegraphic transfer, Credit up to 120 days

 

Sales Term

Local                                                    :   Prepayment, Bank transfer, Credit up to 120 days

International                                          :   L/C, Prepayment, Telegraphic transfer, 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

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.49.79

UK Pound

1

Rs.78.79

Euro

1

Rs.65.73

 

 

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

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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%)

 

 

 

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.