MIRA INFORM REPORT

Report Date :

13.04.2013

IDENTIFICATION DETAILS

Name :	AL EZZ DEKHEILA STEEL COMPANY SAE – ALEXANDRIA (EZDK ALEX)

Registered Office :	Nefertari Building, No. 12 Agami Road Betash, El Dekhiela PO Box 21537 Alexandria

Country :	Egypt

Financials (as on) :	31.12.2012

Date of Incorporation :	July 1982

Com. Reg. No.:	104918, Alexandria

Legal Form :	Egyptian Joint Stock Company

Line of Business :	Production and export of steel

No. of Employees :	3,410

RATING & COMMENTS

MIRA’s Rating :

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 – June 30^th, 2012

Country Name

Previous Rating

(31.03.2011)

Current Rating

(30.06.2012)

Egypt

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

EGYPT - ECONOMIC OVERVIEW

Occupying the northeast corner of the African continent, Egypt is bisected by the highly fertile Nile valley, where most economic activity takes place. Egypt's economy was highly centralized during the rule of former President Gamal Abdel NASSER but opened up considerably under former Presidents Anwar EL-SADAT and Mohamed Hosni MUBARAK. Cairo from 2004 to 2008 aggressively pursued economic reforms to attract foreign investment and facilitate GDP growth. Despite the relatively high levels of economic growth in recent years, living conditions for the average Egyptian remained poor and contributed to public discontent. After unrest erupted in January 2011, the Egyptian Government drastically increased social spending to address public dissatisfaction, but political uncertainty at the same time caused economic growth to slow significantly, reducing the government's revenues. Tourism, manufacturing, and construction are among the hardest hit sectors of the Egyptian economy, and economic growth is likely to remain slow at least through 2012. The government is utilizing foreign exchange reserves to support the Egyptian pound and Egypt may seek a loan from the International Monetary Fund.

Source : CIA

SUMMARY

Company Name : AL EZZ DEKHEILA STEEL COMPANY SAE – ALEXANDRIA (EZDK ALEX)

Country of Origin : Egypt

Legal Form : Egyptian Joint Stock Company

Registration Date : July 1982

Commercial Registration Number : 104918, Alexandria

Tax Card Number : 100-133-789

Issued Capital : £E 1,336,441,300

Paid up Capital : £E 1,336,441,300

Total Workforce : 3,410

Activities : Production and export of steel.

Financial Condition : Good

Payments : Nothing detrimental uncovered

Operating Trend : Steady

COMPANY NAME

AL EZZ DEKHEILA STEEL COMPANY SAE – ALEXANDRIA (EZDK ALEX)

ADDRESS

Registered & Physical Address

Building : Nefertari Building, No. 12

Street : Agami Road

Area : Betash, El Dekhiela

PO Box : 21537

Town : Alexandria

Country : Egypt

Telephone : (20-3) 3082300 / 3082220 / 3082663

Facsimile : (20-3) 3082667 / 3088623

Email : ansdk@alexnet.com.eg

Premises

Subject operates from a large suite of offices and a steel mill that are owned and located in the Industrial Area of Alexandria.

Branch Office (s)

Location Description

· 21 Orabi Street Rented office premises

Mohandessin, Giza

Cairo

Tel: (20-2) 33453371

Fax: (20-2) 33459602

· 10 Shehab Street Rented office premises

Mohandessin, Giza

Cairo

Tel: (20-2) 37622144 / 37622155 / 37622166

Fax: (20-2) 37620022 / 37688188

· 8 Amr Street Rented office premises

Mohandessin, Giza

Cairo

Tel: (20-2) 33030493

· 1^st Industrial Zone Rented factory premises

10^th of Ramadan City

Sharkeya

Tel: (20-15) 410460

Fax: (20-15) 410731

KEY PRINCIPALS

Name Position

· Farouk Zaki Ibrahim Chairman

· Alaa Abu El Kheir Managing Director

· Mohamed Raed Mahmoud Nour El Din El Bablawy Director

· Paul Phillip Chekaiban Director

· Gamal Omar Naguib Director

· Mamdouh Fakher El Din Hussein El Roubi Director

· Saher Ibrahim El Far Director

· Gamil Fouad Iskandr Director

· Fayez Ali Zein El Abdin Saleh Director

· Safwat Mohamed Sayed Hamad Director

· El Sayed Talal Tawfik Director

· Ali Mahmoud Ali Nasar Director

· Ahmed Shawky Farid El Hank Director

· Mansour Atteia Kilada Antone Director

· Khaled El Ghazaly Mohamed Harb Director

· Mahmoud Sabry Abd El Wahab El Garf Director

· Moustafa Kamel Brekaei Finance Manager

· Samir Noaman Sales Manager

· Farouk Ibrahim Production Manager

· Nabil El Khattib Purchasing Manager

· Naser Barakat Human Resources Manager

· Ayman Nour El Din Accounts Manager

LEGAL FORM & OWNERS

Date of Establishment : July 1982 (Production began in May 1986)

History : Subject was originally established in 1982 under the name of “Alexandria National Iron & Steel Co SAE (ANSDK)”. It changed to its current style on 24^th May 2006.

Legal Form : Egyptian Joint Stock Company

Commercial Reg. No. : 104918, Alexandria

Tax Card No. : 100-133-789

Issued Capital : £E 1,336,441,300

Paid up Capital : £E 1,336,441,300

Name of Shareholder (s) Percentage

· Ezz Steel Rebars 54.59%

· National Investment Bank 10.76%

· Social Insurance Fund of Public Sector 9.63%

· Misr Insurance 7.93%

· Ahly Capital Holding 5.77%

· Egyptian General Petroleum Corporation (EGPC) 4.79%

· Industrial & Mining Projects 2.05%

· Local businessmen and private investors 4.48%

OPERATIONS

Activities: Engaged in the production and export of steel.

Subject is ISO 9002 & ISO 14001 accredited.

Production Capacity: 4,000,000 tonnes per year.

Import Countries: Europe, Canada, Sweden, United States of America and Asia.

Export Countries: Saudi Arabia, Yemen, the United States of America, Canada, Spain, Sudan, Bahrain, Libya,

Canada, Nigeria, Turkey, France, Cyprus, Mauritius, Morocco, Bulgaria, Tunisia, Algeria and

China.

Brand Names: EZDK and EZZ STEEL.

Operating Trend: Steady

Subject has a workforce of approximately 3,410 employees.

FINANCIAL DATA

Financial highlights provided by local sources are given below:

Currency: Egyptian Pounds (£E)

Year Ending 31/12/11: Year Ending 31/12/12:

Total Sales £E 11,639,005,731 £E 14,041,689,050

Local sources consider subject’s financial condition to be Good.

The above financial figures are based on estimations by our local sources.

BANKERS

· Banque Misr

El Hanoville Street

Agami

Alexandria

Tel: (20-3) 4302697

· National Bank of Egypt

21, Tosson Street

Alexandria

Tel: (20-3) 4824802 / 4825715

· Commercial International Bank (CIB)

61 Sultan Hussein Street

Alexandria

Tel: (20-3) 4824643 / 4834255

Fax: (20-3) 4832240

· Egyptian American Bank

14 Salah Salem Street

PO Box: 1737

Alexandria

Tel: (20-3) 4835008

· Banque du Caire SAE

19 Adly Street

Cairo

Tel: (20-2) 33926915

Fax: (20-2) 33951713

PAYMENT HISTORY

No complaints regarding subject’s payments have been reported.

GENERAL COMMENTS

During the course of this investigation nothing detrimental was uncovered regarding subject’s operating history or the manner in which payments are fulfilled. As such the company is considered to be a fair trade risk.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.54.44
UK Pound	1	Rs.83.77
Euro	1	Rs.71.33

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%)

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