MIRA INFORM REPORT

 

 

Report Date :

24.08.2013

 

IDENTIFICATION DETAILS

 

Name :

PRYSMIAN TELECOM CABLES & SYSTEMS AUSTRALIA PTY LTD

 

 

Formerly known as :

PIRELLI TELECOM CABLES & SYSTEMS AUSTRALIA PTY LIMITED

 

 

Registered Office :

1 Heathcote Road, Liverpool, New South Wales, Zip/postal code 2170

 

 

Country :

Australia

 

 

Financials (as on) :

31.12.2012

 

 

Date of Incorporation :

30.09.1975

 

 

Com. Reg. No.:

001313551

 

 

Legal Form :

Australian Proprietary Company

 

 

Line of Business :

Manufacturer and distributor of telecommunication cables, wires and accessories

 

 

No. of Employees :

149 employees (Subject); 19,562 employees (Prysmian 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 – March 31st 2013

 

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

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, 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 :             PRYSMIAN TELECOM CABLES & SYSTEMS AUSTRALIA PTY LTD

 

Business address :         1 Heathcote Road

Town :                     Liverpool

Province :                 New South Wales

Zip/postal code :          2170

Country :                  Australia

Tel :                      +61 2 96000777

Fax :                      +61 2 96000876

Email :                    sales.au@prysmiangroup.com

Website :                  www.prysmiangroup.com

 

 

Registered address :              1 Heathcote Road

Town :                            Liverpool

Province :                 New South Wales

Zip/postal code :          2170

Country :                  Australia

 

 

SUMMARY DETAILS

 

Executive Summary

Date founded or registered :      30/09/1975

Legal form :                      Australian Proprietary Company

Chief executive :                 John Llyr Lewis Roberts

Issued & paid up capital :        AUD 38,500,000

Sales turnover :                  AUD 81,523,000 (Non-Consolidated 12 months, 31/12/2012)

Net income :                      AUD 7,659,000 (Non-Consolidated 12 months, 31/12/2012)

Total fixed assets :              AUD 82,820,000 (Non-Consolidated 12 months, 31/12/2012)

Line of business :                Manufacturing and distribution of telecommunication cables, wires and

accessories.

Staff employed :                  149 employees (Subject); 19,562 employees (Prysmian Group)

 

 

CREDIT RISK OPINION

 

Company Analysis

Country risk :             Country risk is minimal

Operation trend :          Operational trend is progressing

Management experience :    Management is adequately experienced

Financial performance :    Financial performance is 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 :        30/09/1975

Legal form :               Australian Proprietary Company

Registration no            Australian Company Number: 001313551

Registered authority :     Australian Securities and Investments Commission

Fiscal/ Tax no :           Australian Business Number: 14001313551

Registry status :          Live/Active

Previous name :            PIRELLI TELECOM CABLES & SYSTEMS AUSTRALIA PTY LIMITED

PIRELLI CABLES AUSTRALIA LTD

PIRELLI ERICSSON CABLES LTD

PIRELLI CABLES AUSTRALIA LTD (initial)

Change of legal form :     None reported.

 

 

MANAGEMENT / DIRECTORS

 

Key Management

Name :                     John Llyr Lewis Roberts

Designation :              Managing Director

 

Name :                     Saskia Veerkamp

Designation :              Chief Financial Officer

 

 

BOARD OF DIRECTORS/ OTHER APPOINTMENTS

 

Appointments

Name :                     Saskia Veerkamp

Designation :              Director

Appointment date :   09/09/11

Address :            2A Marida Street

Randwick, NSW 2031

Australia

Biography :          Born on 22-09-1971 in Netherlands.

 

Name :                     John Llyr Lewis Roberts

Designation :        Director

Appointment date :   01/01/11

Address :            59 Henley Marine Drive

Rodd Point, NSW 2046

Australia

Biography :          Born on 13-07-1964 in United Kingdom.

Name :                     David Klarich

Designation :              Company Secretary

Appointment date :   21/12/10

Address :            61 Murdoch Street

Turramurra, NSW 2074

Australia

Biography :          Born on 02-10-1961 in Neutral Bay, New South Wales, Australia.

Staff employed :           149 employees (Subject); 19,562 employees (Prysmian Group)

 

Key Advisors

Auditors :           PRICEWATERHOUSECOOPERS

Darling Park Tower 2

201 Sussex  Street Sydney , NSW 2000

Australia

 

 

SHARE CAPITAL

 

Composition

Authorized Capital :              AUD 38,500,000

No of shares :                    154,000,000 Ordinary Shares

Share par value :          AUD 0.25

Issued capital :                  AUD 38,500,000

Paid up capital :          AUD 38,500,000

OWNERSHIP / SHAREHOLDERS

 

OWNERSHIP / SHAREHOLDERS

 

How listed :         Full List

 

Composition

Shareholder name :   PRYSMIAN CAVI E SISTEMI S.R.L.

Address :            Viale Sarca 222

20126 Milan

Italy

 

No. of shares :            154,000,000 Ordinary Shares

% of shares :              100%

 

 

RELATED COMPANIES & CORPORATE AFFILIATIONS

 

Structure

Name :                     PRYSMIAN S.P.A.

Affiliation type :         Ultimate Holding Company

Address :            Viale Sarca 222

20126 Milan

Italy

 

Comments :           Prysmian S.p.A. engages in the design, development, production, supply, and

installation of various cables for applications in the energy and telecom industries

worldwide. It operates in two segments, Energy and Telecom.

 

The Energy segment provides high voltage cables for underground and

submarine power transmission; produces cables and systems for the trade and

installers market for the wiring of buildings; distributes electricity to or in

commercial and residential buildings; and offers fire-resistant and low smoke

halogen-free cables, as well as residual products.

 

The Telecom segment manufactures cables and accessories for the voice, video,

and data transmission industry. This segment also offers optical fiber, optical

cables, connectivity components and accessories, optical ground wires, and

copper cables. Prysmian S.p.A. was founded in 1872 and is headquartered in

Milano, Italy.

 

PRYSMIAN S.p.A is known to be the world's largest cable maker.

 

 

Name :                     PRYSMIAN CAVI E SISTEMI S.R.L.

Affiliation type :         Parent Company

Address :            Viale Sarca 222

20126 Milan

Italy

 

 

Name :                     PRYSMIAN CABLES & SYSTEMS LIMITED

Affiliation type :         Sister Company

Address :            Chickenhall Lane

Eastleigh SO50 6YU

Hampshire

United Kingdom

 

Name :                     PRYSMIAN CAVI E SISTEMI ITALIA S.R.L.

Affiliation type :         Sister Company

Address :            Viale Sarca 222

20126 Milan

Italy

 

Name :                     PRYSMIAN CABLES ASIA-PACIFIC PTE. LTD.

Affiliation type :         Sister Company

Address :            4 Tuas Avenue 12

Singapore 639047

Singapore

 

Related companies and corporate affiliations comments :

Other companies of the Prysmian 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 :   Commercial Registry Filings

Financial statement date : 31/12/12

Type of accounts :         Full audited

Currency :                 Australia Dollar (AUD)

Exchange rate :            1 USD = AUD 1.11 as of 22-08-2013

 

Summarized Financial Information

Consolidation type :                  Non Consolidated         Non Consolidated                     Group Consolidated

Currency :                 Australia Dollar           (AUD) Australia Dollar (AUD)      Euro (EUR)

Denomination :                    (x1) One             (x1) One                   (x1) One

Date of financial year end :      31/12/12             31/12/11                   31/12/12

Length of accounts :              12 months            12 months                  12 months

Sale turnover / Income :   81,523,000           78,666,000                 7,848,000,000

Profit before tax :        10,580,000           10,591,000                 244,000,000

Net income :               7,659,000            7,630,000                  171,000,000

Non current assets :       30,372,000           27,594,000                 2,478,000,000

Current assets :           52,448,000           53,975,000                 3,536,000,000

Inventories :                     10,725,000           9,138,000                  897,000,000

Total assets :                    82,820,000          81,569,000                6,018,000,000

Current liabilities :             32,636,000          31,379,000                 2,843,000,000

Non current liabilities :         3,322,000            3,791,000                  2,016,000,000

Total liabilities :               35,958,000           35,170,000                 4,859,000,000

Share equity :                    46,862,000           46,399,000                 1,159,000,000

Retained earning :         8,242,000            7,779,000


 

Comments :                 The non consolidated financial information above relates to the Subject only.

 

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

Ultimate Holding Company Prysmian S.P.A. and all its subsidiaries which include

the Subject.

 

 

OPERATION DETAILS

 

Main activities :                 The Subject engages in manufacturing and distribution of

telecommunication cables, wires and accessories.

 

The Subject is ultimately owned by Prysmian S.p.A., the world's largest

cable maker.

 

Prysmian S.p.A. is an Italy-based company active in the production, supply

and installation of cables. Its business is organized in two segments:

 

Energy and Telecom. The Energy segment is divided into four lines of

business, including Utilities, which consists of power transmission systems,

submarine power transmission and distribution systems, power distribution

cables and systems, and grid accessories and components; Trade &

Installers, comprising low and medium voltage cables for power distribution

to and within buildings; Industrial, which includes cables and accessories

for special industrial applications based on specific requirements, and

Other, which is active in the sale of semi-finished products, raw materials or

other goods. The Telecom segment provides such products as optical fiber,

optical cable, copper cables, accessories and Fiber To The Home (FTTH)

cables, among others. On November 15, 2012, the Company acquired

Global Marine Systems Energy Limited.

 

Product & services :

·         Optical fiber

·         Optical and copper cables

·         Optical cable systems

·         Optical Distribution Frame (ODF)

·         Accessories

 

Brand :

PRYSMIAN

 

Purchases

International :            Worldwide

 

Sales

Local :                    Yes

International :            Worldwide

Key events :         17 January 2011

 

Prysmian awarded €223 million contract to supply fibre optic cables for the

development of the Australian National Broadband Network (NBN)

Prysmian Cables & Systems, a world leader in the energy and

telecommunications cables industry, has been awarded a major contract by

the Australian government-owned NBN Co Limited, for the supply of fibre

optic cables for the development of the new national broadband network.

Total value of the contract, which has been secured by Prysmian Telecom

Cables & Systems Australia Pty Limited, is up to €223 million (AUD 300

million) over five years, with an initial purchase order of €112 million

(AUD150 million).

 

With this agreement, Prysmian will become a major fibre cable supplier to

the national broadband network, and provide a wide range of ribbon and

multi-fibre communication cables including termite resistant, rodent-proof

and high strength cables. The Australian Government is investing in the

creation of a Fibre-to-the-Premises network that will connect 93% of

Australia’s residential and business premises with fibre. Through its

partnership with NBN Co, Prysmian is helping the Australian Government

to achieve its vision of a next generation broadband network, and will be an

integral part of the largest national building infrastructure project in

Australia’s history.

 

The Group is a true world leader in telecom cables and connectivity,

supplying a comprehensive portfolio of optical cables including OPGW,

blown fibre, optical fibre and copper telecom cables. It operates 18 multiple

production facilities in four continents, with a production centre in Italy

where around 10 million km of optical fibers are produced annually (approx

5% of the whole worldwide industry production). A strong focus on R&D

ensures constant innovation especially for access network solutions, FTTH,

FTTx with various bespoke systems to address customer needs. Prysmian

has developed a full range of optical fibres including Bend-Insensitive

family of CasaLight fibre in compliance with ITU G 657 and offers a

complete service from system design to production and technical support

of commissioned cable networks with planning and logistics. The Group

has become the partner of choice for major TLC operators such as Bharti

Airtel, BT, France Telecom, Telecom Italia, Telefonica, Verizon, Vodafone

and Telstra.

 

In order to enhance its Australian-based manufacturing and assembly

capacity, Prysmian will invest around € 10 million (AUD 13 million) to

manufacture the specialised cables at its manufacturing facility in Dee

Why, Australia, expanding its operations as part of a commitment to source

in Australia approximately 80 per cent of the value of its contract with NBN

Co.

 

Present in Australia since 1975, Prysmian counts almost 500 employees in

the region and two manufacturing facilities in Dee Why and Liverpool NSW,

and it is the only company in Australia and New Zealand producing a full

range of communication cables and associated connectivity systems

including optical fibre, Sirocco Blown Fibre systems, FTTP (Fibre To The

Premises) solutions, metallic and premises/data cables.

 

Prysmian

A leading player in the industry of high-technology cables and systems for

energy and telecommunications, the Prysmian Group is a truly global

company with sales in excess of € 3.7 billion in 2009 and a strong position

in higher value-added market segments. With its two businesses, Energy

Cables & Systems (submarine and underground cables for power

transmission and distribution, for industrial applications and for the

distribution of electricity to residential and commercial buildings) and

Telecom Cables & Systems (optical cables and fibres and copper cables

for video, data and voice transmission), Prysmian boasts a global presence

with subsidiaries in 39 countries, 56 plants in 24 countries, 8 Research &

Development Centres in Europe, USA, South America and Asia, and

around 12,000 employees. Specialising in the development of products and

services designed to customer customers’ specific requirements,

 

Prysmian’s key strengths include: a focus on Research & Development,

the capacity to innovate products and production processes, and the use of

advanced proprietary technologies. Prysmian is listed on the Milan Stock

Exchange in the Blue Chip index.

Source: www.prysmian.com

 

Property & Assets

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

consisting of a production facility, warehouse and an administrative office.

 

Branches :           In addition, the Subject operates from branch production facility located at:

 

4 Thew Parade

Cromer, NSW 2099

Australia

Tel: +61 2 99317100

 

 

SUMMARIZED COUNTRY RISK

 

Gross Domestic Products (GDP) & Economic Overview

Central bank :                           Reserve Bank of Australia

 

Reserve of foreign exchange & gold :     US$ 46.714 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 :                       2010: 2.8%

2011: 3.4%

2012: 2.7%

 

Unemployment rate :               2010: 5.2%

2011: 5.1%

2012: 5.2%

Public debt

(General Government gross debt as

a % GDP)                          : 2010: 20.4%

2011: 22.9%

2012: 24%

 

Government bond ratings :         Standard & Poor's: AAA

Moody's rating: Aaa

Moody's outlook: STA

Market value of publicly traded shares   : US$1.198 trillion

 

Largest companies in the country :       Qantas Airways (Airline),Coca-Cola Amatil (Beverages), CSL (Biotechs),

Brambles (Business & Personal Services),Crown Ltd (Casinos &  aming), Amcor (Containers & Packaging),Suncorp-Metway (Diversified Insurance), BHP Billiton (Diversified Metals & Mining),Newcrest Mining (Diversified Metals & Mining), Orica (Diversified Metals & Mining), Iluka Resources (Diversified Metals & Mining), Origin Energy (Electric Utilities), AGL Energy (Electric Utilities), Wesfarmers (Food Retail), Woolworths (Food Retail), Metcash (Food Retail), Macquarie Group (Investment services), AMP (Investment services), Challenger Ltd (Investment services), Fortescue Metals Group (Iron & Steel), Bluescope Steel (Iron & Steel), Commonwealth Bank (Major Banks), Westpac Banking Group (Major Banks), National Australia Bank (Major Banks), ANZ (Major Banks), Woodside Petroleum (Oil & Gas Operations), Santos (Oil & Gas Operations), Caltex Australia (Oil & Gas Operations), WorleyParsons (Oil Services & Equipment), Toll Holdings (Other Transportation), Transurban Group (Other Transportation), QBE Insurance Group (Property & Casualty Insurance), Insurance Australia Group (Property & Casualty Insurance), QR National (Railroads), Westfield Group (Real Estate), Stockland Australia (Real Estate), Westfield Retail Trust (Real Estate), Lend Lease (Real Estate), CFS Retail Property Trust (Real Estate), Goodman Group (Real Estate), Bendigo & Adelaide Bank (Regional Banks), Bank of Queensland (Regional Banks), Incitec Pivot (Specialized Chemicals), Telstra (Telecommunications Services)

 

Trade & Competitiveness Overview

Total exports :                   US$263.9 billion

Exports commodities :             Coal, iron ore, gold, meat, wool, alumina, wheat, machinery and transport

equipment

Total imports :                   US$239.7 billion

Imports commodities :             Machinery and transport equipment, computers and office machines,

telecommunication equipment and parts; crude oil and petroleum products

 

Export - major partners : China 27.4%, Japan 19.2%, South Korea 8.9%, India 5.8%

Import - major partners : China 18.5%, US 11.4%, Japan 7.9%, Singapore 6.3%, Germany 4.7%

 

FDI Inflows :                     2009: US$26,554 million

2010: US$35,556 million

2011: US$41,317 million

 

FDI Outflows :                    2009: US$16,693 million

2010: US$12,791 million

2011: US$19,999 million

Best countries for doing business : 10 out of 185 countries

 

Global competitiveness ranking : 20 (ranking by country on a basis of 144, the first is the best)

 

Country and Population Overview

Total population :         22.68 million

Total area :               7,692,024 km2

Capital :                  Canberra

Currency :                 Australian dollars (AUD)

Internet users as % of total

Population                 79%

 

PAYMENT HISTORY

PAYMENT HISTORY

Purchase Term

International :            L/C, Telegraphic transfer, D/P, D/A, Credit 30-120 days

 

 

Sales Term

Local :                    Bank transfer, D/P, D/A, Credit 30-120 days

International :            L/C, Telegraphic transfer, D/P, D/A, Credit 30-120 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

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.64.69

UK Pound

1

Rs.100.79

Euro

1

Rs.86.30

 

INFORMATION DETAILS

 

Report Prepared by :

MNL

 

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.