MIRA INFORM REPORT

 

 

Report Date :

22.04.2013

 

IDENTIFICATION DETAILS

 

Name :

MYER PTY LTD

 

 

Formerly Known As :

MYER LIMITED

 

 

Registered Office :

800 Collins Street Docklands Victoria 3008

 

 

Country :

Australia

 

 

Financials (as on) :

26.01.2013 (Group Consolidated)

 

 

Date of Incorporation :

09.02.1928

 

 

Com. Reg. No.:

004143239

 

 

Legal Form :

Australian Proprietary Company

 

 

Line of Business :

Department store chain, retailing a broad range of merchandise including women's, men's and children's clothing, footwear and accessories; cosmetics and fragrance; homewares; electrical; furniture and bedding; toys; books and stationery; food and confectionery; and travel goods.

 

 

No. of Employees :

12,500 employees (Myer Group)

 

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 – June 30th, 2012

 

Country Name

Previous Rating

(31.03.2011)

Current Rating

(30.06.2012)

Australia

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

AUSTRALIA - ECONOMIC OVERVIEW

 

The Australian economy has experienced continuous growth and features low unemployment, contained inflation, very low public debt, and a strong and stable financial system. By 2012, Australia had experienced more than 20 years of continued economic growth, averaging 3.5% a year. Demand for resources and energy from Asia and especially China has grown rapidly, creating a channel for resources investments and growth in commodity exports. The high Australian dollar has hurt the manufacturing sector, while the services sector is the largest part of the Australian economy, accounting for about 70% of GDP and 75% of jobs. Australia was comparatively unaffected by the global financial crisis as the banking system has remained strong and inflation is under control. Australia has benefited from a dramatic surge in its terms of trade in recent years, stemming from rising global commodity prices. Australia is a significant exporter of natural resources, energy, and food. Australia's abundant and diverse natural resources attract high levels of foreign investment and include extensive reserves of coal, iron ore, copper, gold, natural gas, uranium, and renewable energy sources. A series of major investments, such as the US$40 billion Gorgon Liquid Natural Gas project, will significantly expand the resources sector. Australia is an open market with minimal restrictions on imports of goods and services. The process of opening up has increased productivity, stimulated growth, and made the economy more flexible and dynamic. Australia plays an active role in the World Trade Organization, APEC, the G20, and other trade forums. Australia has bilateral free trade agreements (FTAs) with Chile, Malaysia, New Zealand, Singapore, Thailand, and the US, has a regional FTA with ASEAN and New Zealand, is negotiating agreements with China, India, Indonesia, Japan, and the Republic of Korea, as well as with its Pacific neighbors and the Gulf Cooperation Council countries, and is also working on the Trans-Pacific Partnership Agreement with Brunei Darussalam, Canada, Chile, Malaysia, Mexico, New Zealand, Peru, Singapore, the US, and Vietnam

Source : CIA


IDENTIFICATION DETAILS

 

Verified Address

Subject name :              MYER PTY LTD

Business address :        800 Collins Street

Town :                           Docklands

Province :                      Victoria

Zip/postal code :            3008

Country :                       Australia

Tel :                              +61 3 86676000

Fax :                             +61 3 96613770

Website :                      www.myer.com.au

 

Registered address :      800 Collins Street

Town :                           Docklands

Province :                      Victoria

Zip/postal code :            3008

Country :                       Australia

Postal address :            P.O. Box 869J

Town :                           Melbourne

Province :                      Victoria

Zip/postal code :            3001

Country :                       Australia

 

SUMMARY DETAILS

 

Executive Summary

Date founded or registered :        09/02/1928

Legal form :                               Australian Proprietary Company

Chief executive :                        Bernard Joseph Brookes

Issued & paid up capital :           AUD 841,532,130

Sales turnover :              AUD 3,119,119,000 (Group-consolidated 12 months, 28/07/2012)

Net income :                              AUD 141,067,000 (Group-consolidated 12 months, 28/07/2012)

Total fixed assets :                     AUD 1,918,193,000 (Group-consolidated 12 months, 28/07/2012)

Line of business :                       Department store chain, retailing a broad range of merchandise including

women's, men's and children's clothing, footwear and accessories; cosmetics and

fragrance; homewares; electrical; furniture and bedding; toys; books and

stationery; food and confectionery; and travel goods.

Staff employed :                         12,500 employees (Myer Group)

 

CREDIT RISK OPINION

 

Company Analysis

Country risk :                 Country risk is minimal

Operation trend :            Operational trend is steady

Management experience : Management is adequately experienced

Financial performance : Financial performance is very good

Organization structure : Organizational structure is consistent

Detrimental :      No detrimental found

Payment history :          No payment delays noted

Comments :                  Larger credit can still be considered. The Subject is well positioned in the market

and the financial stability of the group is positive.

 

STATUTORY DETAILS

 

Registry Data

Registration date :          09/02/1928

Legal form :                   Australian Proprietary Company

Registration no              Australian Company Number: 004143239

Registered authority :     Australian Securities and Investments Commission

Fiscal/ Tax no :              Australian Business Number: 83004143239

Registry status :            Live/Active

Previous name :             MYER LIMITED

MYER STORES LIMITED

MYER SOUTHERN STORES LIMITED

MYER (BALLARAT) LIMITED

THE MYER EMPORIUM (BALLARAT) LIMITED

THE MYER EMPORIUM (BALLARAT) PROPRIETARY LIMITED

PATERSON POWELL PROPRIETARY LIMITED

PATERSON POWELL & SANDFORD PROPRIETARY LIMITED (initial)

Change of legal form :     None reported.

 

MANAGEMENT / DIRECTORS

 

Key Management

Name :                          Bernard Joseph Brookes

Designation :                 Managing Director

 

Name :                          Mark Stephen Ashby

Designation :                 Chief Financial Officer

 

Name :                          Gregory James Travers

Designation :                 Executive General Manager Business Services

 

Name :                          Marion Joan Rodwell

Designation :                 General Counsel and Company Secretary


BOARD OF DIRECTORS/ OTHER APPOINTMENTS

 

Appointments

Name :              Bernard Joseph Brookes

Designation :     Director

Appointment date : 02/06/06

Address :          14 Haven Place

Dural, NSW 2158

Australia

Biography :        Born on 08-11-1959 in Birmingham, United Kingdom.

Mr. Bernard Brookes, Bernie serves as the Chief Executive Officer of

Myer Pty Ltd. Mr. Brookes has been the Chief Executive Officer and

Managing Director of Myer Holdings Limited. (formerly, NB Flinders

Pty Ltd.) since June 2, 2006. He served as Chief General Manager of

Supermarket Buying and Marketing at Woolworths Ltd. and served as

its Chief General Manager of Stage 3 of Project Refresh since July

14, 2004. He has spent 34 years working within the retail industry in

local and international roles in India and China. Prior to joining Myer,

Mr. Brookes served as a Management Director of Woolworths and

was a Chief Architect of Woolworths’ Project Refresh. His

Woolworths experience also included a variety of general

management positions in three states across the Buying, IT,

Marketing and Operations departments. Mr. Brookes has also held a

number of roles as president and executive of various industry

organisations including Retail Traders Association in Queensland and

Victoria and President of the Queensland Grocery Association, and

he has assisted on a number of charitable and government ventures

and committees. He has received many awards, including Food

Week Retail Executive of the Year, National Retail Association Food

Industry Executive of the Year and Food Week Buyer of the Year for

four years during the 1980s and 1990s. Mr. Brookes has been a

Director of Myer Holdings Limited, since July 12, 2006. Mr. Brookes is

patron of the Australian Joe Berry Memorial Award and the Australian

representative judge of the World Retail Awards. He holds Bachelor

of Arts and Diploma of Education degrees from Macquarie University.

 

Name :              Mark Stephen Ashby

Designation :     Director

Appointment date : 30/06/11

Address :          1 Lakewood Court

MacLeod, VIC 3085

Australia

Biography :        Born on 15-03-1960 in Melbourne, Victoria, Australia.

Mark was appointed Chief Financial Officer (CFO) of Myer in January

2008. As CFO, Mark’s responsibilities cover all accounting, treasury

management, taxation, compliance and internal audit aspects of the

business. In addition Mark has responsibility for Procurement and the

Financial Services division of Myer.Prior to joining Myer, Mark was

CFO of Mitre 10, the Finance Director of Motorola and a Finance

Director in a number of organisations in retail and technology. Mark

is a fellow of CPA Australia and a member of the Australian Institute

of Company Directors.

 

Name :              Gregory James Travers

Designation :     Director

Appointment date : 30/06/11

Address :          24 Scott Grove

Glen Iris, VIC 3146

Australia

Biography :        Born on 24-07-1958 in Adelaide, South Australia, Australia.

Greg has 29 years of industry experience and was appointed a

Director of Strategic Planning and Human Resources in June 2006.

In his role, Greg oversees the human resource management of the

Company including organisational development, recruitment and

training, employee relations, risk and safety, the procurement function

and the development of the Company‘s strategic planning

framework.

Previously, Greg spent 11 years with WMC Resources, where he

held the role of Executive General Manager, Group Services,

responsible for human resources, risk and safety, procurement, IT,

corporate affairs and business services. Prior to his time at WMC

Greg worked for seven years at the Pratt Group in operations and

human resources and seven years at BHP in various human

resources roles. Greg was previously a Director of Australian Mines

and Metals Association and a Director of the Institute for Public Affairs.

 

Name :              Marion Joan Rodwell

Designation :     Company Secretary

Appointment date : 02/04/08

Address :          339 Danks Street

Middle Park, VIC 3206

Australia

Biography :        Born on 28-01-1963 in Melbourne, Victoria, Australia.

Marion has 22 years of commercial experience and was appointed

General Counsel and Company Secretary in 2008. As General

Counsel Marion manages the legal function of Myer, incorporating

internal legal advice for the Company and management of the legal

group. In addition, Marion is Company Secretary of all companies in

the Myer Group.

She has extensive corporate, commercial, litigation and governance

experience having held General Counsel and Company Secretary

roles in the financial services, gaming and retail industries over many

years. Previously Marion held the role of General Counsel and

Company Secretary of Tattersall’s and prior to that, she was general

counsel and Company Secretary of IOOF. Marion was heavily

involved in the IPO of Tattersall’s in 2005 and has negotiated

numerous joint venture and supply arrangements within Australia and

internationally.

Marion holds a Bachelor of Laws, Bachelor of Economics and is a

member of the Law Institute of Victoria and the Australian Corporate

Lawyers Association.

Staff employed : 12,500 employees (Myer Group)

 

Key Advisors

Auditors :          PRICEWATERHOUSECOOPERS

Level 19, Freshwater Place

2 Southbank Boulevard

Southbank, VIC 3006

Australia

 

SHARE CAPITAL

 

Composition

Authorized Capital :        AUD 841,532,130

No of shares :                26,465 Cumulative Non Participating Non Redeemable Preference Shares /

958,200 Ordinary Shares / 100 Redeemable A Preference Shares / 8,410,000

Redeemable Preference Shares

Share par value :            AUD 2 for Cumulative Non Participating Non Redeemable Preference Share /

AUD 0.5 for Ordinary Share / AUD 1 for Redeemable A Preference Share / AUD

100 for Redeemable Preference Share

Issued capital :              AUD 841,532,130

Paid up capital :             AUD 841,532,130

 

OWNERSHIP / SHAREHOLDERS

 

How listed :                   Full List

 

Composition

Shareholder name :        MYER GROUP PTY LTD

Address :                      800 Collins Street

Docklands, VIC 3008

Australia

No. of shares :               26,465 Cumulative Non Participating Non Redeemable Preference Shares /

958,200 Ordinary Shares / 100 Redeemable A Preference Shares / 5,910,000

Redeemable Preference Shares

 

Shareholder name :        THE MYER EMPORIUM PTY LTD

Address :                      800 Collins Street

Docklands, VIC 3008

Australia

No. of shares :               2,500,000 Redeemable Preference Shares


RELATED COMPANIES & CORPORATE AFFILIATIONS

 

Structure

Name :                          MYER HOLDINGS LIMITED

Affiliation type :              Ultimate Holding Company

Address :                      800 Collins Street

Docklands, VIC 3008

Australia

Comments :                  Myer Holdings Limited engages in the operation of department stores in Australia.

The company offers approximately 600,000 product lines across 11 product

categories comprising 2,400 brands. Its product categories include womenswear,

menswear, youth fashion, childrenswear, intimate apparel, homewares, electrical

goods, toys, fashion accessories, and general merchandise, as well as beauty,

fragrance, and cosmetics. The company also provides retail customer loyalty

programs. It operates approximately 67 stores under the MYER brand name.

Myer Holdings Limited was founded in 1900 and is based in Docklands, Australia.

 

Name :                          MYER GROUP PTY LTD

Affiliation type :              Parent Company

Address :                      800 Collins Street

Docklands, VIC 3008

Australia

 

Name :                          THE MYER EMPORIUM PTY LTD

Affiliation type :              Minority Shareholder

Address :                      800 Collins Street

Docklands, VIC 3008

Australia

 

Name :                          MYER GROUP FINANCE LIMITED

Affiliation type :              Sister Company

Address :                      800 Collins Street

Docklands, VIC 3008

Australia

 

Name :                          MYER SOURCING ASIA LTD

Affiliation type :              Sister Company

Address :                      13/F Gloucester Tower, The Landmark

15 Queen’s Road

Central

Hong Kong

 

Name :                          MYER TRAVEL PTY LTD

Affiliation type :              Sister Company

Address :                      800 Collins Street

Docklands, VIC 3008

Australia

 

Name :                          BOOGIE & BOOGIE PTY LTD

Affiliation type :              Sister Company

Address :                      Studio 5, 32 Ralph Street

Alexandria, NSW 2015

Australia

 

Name :                          WAREHOUSE SOLUTIONS PTY LTD

Affiliation type :              Sister Company

Address :                      800 Collins Street

Docklands, VIC 3008

Australia

 

Name :                          NB COLLINS PTY LTD

Affiliation type :              Sister Company

Address :                      800 Collins Street

Docklands, VIC 3008

Australia

 

Name :                          NB RUSSELL PTY LTD

Affiliation type :              Sister Company

Address :                      800 Collins Street

Docklands, VIC 3008

Australia

 

Related companies and corporate

affiliations comments:     Other companies of the Myer Group should be considered affiliates of the

Subject.

 

BANK & MORTGAGES

 

Bank Details

Name of bank :              National Australia Bank 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 :                   None reported.

 

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 :          28/07/12

Type of accounts :                     Full audited

Currency :                                 Australia Dollar (AUD)

Exchange rate :                         1 USD = AUD 0.97 as of 17-04-2013

 

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 :          26/01/13                        28/07/12                        28/07/11

Length of accounts :                   6 months                      12 months                     12 months

Sale turnover / Income : 1,732,481,000                3,119,119,000               3,158,774,000

Gross profit :                             714,020,000                  1,288,421,000                1,271,630,000

Profit before tax :                       127,359,000                  204,868,000                  224,657,000

Net income :                              89,151,000                    141,067,000                  159,665,000

Non current assets :                   1,458,255,000                1,476,721,000                1,531,211,000

Current assets :                         565,801,000                  441,472,000                  442,920,000

Inventories :                               363,072,000                  385,702,000                  381,261,000

Total assets :                            2,024,056,000                1,918,193,000               1,974,132,000

Current liabilities :                      599,139,000                  502,869,000                  548,360,000

Non current liabilities :                510,395,000                  537,644,000                  64,442,000

Total liabilities :                          1,109,534,000                1,040,513,000                1,112,802,000

Share equity :                            914,522,000                  877,680,000                  861,330,000

Retained earning :                      398,777,000                  363,357,000                  349,396,000

 

Comments :      The group’s consolidated financial information above relates to the Subject’s

Ultimate Holding Company Myer Holdings Limited and all its subsidiaries which

include the Subject.

 

OPERATION DETAILS

Main activities : The Subject is engaged in operation of Myer department stores in

Australia. It offers womenswear, menswear, youth fashion, childrens wear,

beauty, fragrance and cosmetics, homewares, electrical goods, toys,

fashion accessories and general merchandise products.

The Subject has stores in Western Australia, South Australia, Queensland,

New South Wales, Australian Capital Territory, Victoria, and Tasmania in

Australia.

The Subject operates as a subsidiary of Myer Group Pty. Ltd. and is

ultimately owned by Myer Holdings Limited, a public listed company on

Australia Stock Exchange.

Myer is Australia’s largest department store group and offers more than

600,000 product lines comprising 2,400 brands sourced from over 800

suppliers globally. Myer Holdings Limited operates 67 stores across

Australia generating total sales of over $3.1 billion in 2012.

Product & services :       Womenswear

Menswear

Youth fashion

Childrens wear

Intimate apparel

Beauty, fragrance and cosmetics

Homewares

Electrical goods

Toys

Fashion accessories

General merchandise

Brand : MYER

 

Purchases

International : Worldwide

 

Sales

Local : Yes

International : No exports.

 

Property & Assets

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

consisting of an administrative office.

Branches :        In addition, the Subject operates from 67 department stores located at

across Australia.

 

SUMMARIZED COUNTRY RISK

 

Gross Domestic Products (GDP) & Economic Overview

Central bank :                                        Reserve Bank of Australia

Reserve of foreign exchange & gold :       US$ 43.879 billion

Gross domestic product - GDP :             US$ 1.586 trillion

GPP (Purchasing power parity) :             954.296 billion of International dollars

GDP per capita - current prices :             US$ 68,916

GDP - composition by sector :                agriculture: 4%

industry: 25.6%

services: 70.4%

Inflation :                                               2009: 1.8%

2010: 2.8%

2011: 3.4%

Unemployment rate :                              2009: 5.6%

2010: 5.2%

2011: 5.1%

Public debt

(General Government gross debt as

a % GDP):                                            2009: 16.9%

2010: 20.4%

2011: 22.9%

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 :          Commonwealth Bank (Banking), BHP Billiton (Materials), Westpac Banking Group (Banking), Rio Tinto (Materials), National Australia Bank (Banking), ANZ Banking (Banking), Telstra (Telecommunications)

 

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$46,843 million

2009: US$25,716 million

2010: US$32,472 million

FDI Outflows :                                        2008: US$33,604 million

2009: US$16,160 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%

 

PAYMENT HISTORY

 

Purchase Term

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

 

Sales Term

Local : Cash, Credit card

 

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.54.03

UK Pound

1

Rs.82.43

Euro

1

Rs.70.49

 

 

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.