MIRA INFORM REPORT

 

 

Report Date :

19.02.2013

 

IDENTIFICATION DETAILS

 

Name :

FALABELLA RETAIL S.A.

 

 

Registered Office :

Rosas 1665 Santiago XIII Region Metropolitana

 

 

Country :

Chile

 

 

Date of Incorporation :

08.07.1998

 

 

Legal Form :

Private Stock Company

 

 

Line of Business :

Import and marketing of products for department stores, such as clothes, gifts, advertising and promotion products, etc.

 

 

No. of Employees :

67.961

 

 

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)

Chile

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

CHILE - ECONOMIC OVERVIEW

 

Chile has a market-oriented economy characterized by a high level of foreign trade and a reputation for strong financial institutions and sound policy that have given it the strongest sovereign bond rating in South America. Exports account for more than one-third of GDP, with commodities making up some three-quarters of total exports. Copper alone provides one-third of government revenue. During the early 1990s, Chile's reputation as a role model for economic reform was strengthened when the democratic government of Patricio AYLWIN - which took over from the military in 1990 - deepened the economic reform initiated by the military government. Since 1999, growth has averaged 4% per year. Chile deepened its longstanding commitment to trade liberalization with the signing of a free trade agreement with the US, which took effect on 1 January 2004. Chile claims to have more bilateral or regional trade agreements than any other country. It has 59 such agreements (not all of them full free trade agreements), including with the European Union, Mercosur, China, India, South Korea, and Mexico. Over the past seven years, foreign direct investment inflows have quadrupled to some $15 billion in 2010, but foreign direct investment had dropped to about $7 billion in 2009 in the face of diminished investment throughout the world. The Chilean government conducts a rule-based countercyclical fiscal policy, accumulating surpluses in sovereign wealth funds during periods of high copper prices and economic growth, and allowing deficit spending only during periods of low copper prices and growth. As of November 2011, those sovereign wealth funds - kept mostly outside the country and separate from Central Bank reserves - amounted to more than $18 billion. Chile used this fund to finance fiscal stimulus packages during the 2009 economic downturn. In December 2009, the OECD invited Chile to become a full member, after a two year period of compliance with organization mandates, and in May 2010 Chile signed the OECD Convention, becoming the first South American country to join the OECD. The economy started to show signs of a rebound in the fourth quarter of 2009, and GDP grew 5.1% in 2010 and 6.5% in 2011. Chile achieved this growth despite the 8.8 magnitude earthquake that struck in February 2010, which was one of the top 10 strongest earthquakes on record. The earthquake and subsequent tsunamis it generated caused considerable damage near the epicenter, located about 70 miles from Concepcion - and about 200 miles southwest of Santiago.

Source : CIA


 

IDENTIFICATION                                                        

FALABELLA RETAIL S.A.

Rosas 1665
Santiago
XIII Region Metropolitana
CHILE

Telephone         : 56-2-23802000, 56-2-23802202, 56-2-23802205
Fax                   : 56-2-23802047

E_Mail              : pgacitua@falabella.cl
Web Site           : www.falabella.cl
Postal Code      : 8340236

SUMMARY

Started                          : 1998
Total Employees              : 67.961
Payments                     : Prompt
Capital                          : 000's$     58.440.099.-

Sic(s) : 6719

Line of Business: Import and marketing of products for department stores.-

Financial indicators

Financial statements could not be obtained, thus financial analysis can not be
carried out

COMMERCIAL INFORMATION

Commercial Bulletin      : As at 15/02/2013 subject does not register protested
                           checks, bank drafts nor promissory notes in the
                           commercial information bulletin

Labor Bulletin           : As at 15/02/2013 does not register work infringements

Previsional Bulletin     : As at 15/02/2013 does not register social security
                           infringements

Consolidated delinquency : As at 15/02/2013, subject does not register any
                           delinquent bill

TRADE REFERENCES 

Suppliers' trade references are supplied as follows:

Detail of References

Old            : Since 2005
Last purchase  : 12-2012
Terms          : 60 days
Payment        : Prompt
Notes          : invoice
Credit         : -
Owes           : -
Due            : Does not Register
Paying Comments: Good
Amounts undisclosed.-

Old            : Since 2004
Last purchase  : 12-2012
Terms          : 60 days
Payment        : Prompt
Notes          : invoice
Credit         : -
Owes           : -
Due            : Does not Register
Paying Comments: Good

Old            : Since 2003
Last purchase  : 11-2012
Terms          : 30 days
Payment        : Prompt
Notes          : invoice
Credit         : -
Owes           : -
Due            : Does not Register
Paying Comments: Good
Amounts undisclosed.-

Old            : Since 1985
Last purchase  : 11-2012
Terms          : 60 days
Payment        : Prompt
Notes          : bank transfer
Credit         : (000'sUS$) 1.500.000
Owes           : (000'sUS$) 1.200.000
Due            : Does not Register
Paying Comments: Excellent
Purchase Aver. : (Monthly 000's$) 1.200.000

Detail of Former Trade References
--------------------------------------------------------------------------------
           Last                                           Credit            Owes
Old        Purch. Payment.    Notes                     (000'sUS$)        (000'sUS$)
--------------------------------------------------------------------------------
Since 2003 08-11  Prompt      invoice                          -               -
Since 1985 08-11  Prompt      checks                   1.500.000       1.000.000
Since 2005 09-11  Prompt      invoice                          -               -
Since 2003 08-11  Prompt      invoice                  2.500.000               -
Since 2004 09-11  Prompt      invoice                          -               -
Since 1985 02-11  Prompt      checks                   1.500.000       1.134.000
Since 2003 11-10  Prompt      invoice                  2.500.000               -
Since 1998 03-11  Prompt      invoice                          -               -
Since 2003 02-11  Prompt      invoice                          -            None
Since 2003 07-10  Prompt      invoice                       Open            None
Since 1999 07-10  Prompt      sight draft                900.000            None
Since 1999 07-10  Prompt      invoice                       Open            None
Since 1998 07-10  Prompt      invoice                       Open            None
Since 2003 06-10  Prompt      invoice                       Open            None
Since 1999 07-10  Prompt      invoice                       Open            None
Since 1995 07-10  Prompt      invoice                     80.000            None
Since 1995 04-10  Prompt      invoice                          -            None
Since 1999 04-10  Prompt      invoice                       Open            None
Since 2003 01-10  Prompt      invoice                       Open            None
Since 1998 04-10  Prompt      invoice                       Open            None
Since 1999 04-10  Prompt      invoice                       Open            None
Since 2003 04-10  Prompt      invoice                       Open            None
Since 1999 04-10  Prompt      sight draft                900.000            None
Since 2004 04-10  Prompt      invoice                       Open            None
Since 1995 12-09  Prompt      invoice                          -            None
Since 1999 04-09  Prompt      invoice                       Open            None

During the last 6 months, the account holder credit history shows 134 credit
review inquiries requested by financial institutions, consultancy agencies,
telecommunication companies, industries, insurance companies, health insurance
companies and businesses in general.-

The account holder credit report reflects no delinquent payment history, no

protests, and no social security and/or work infringements as of the date of

this report.

AVERAGE PAYMENTS IN CHILE

International Risk and Payment Review reported in June 2011

The local delays in payment average 0-1 month.

BANKS 

Subject operates with the following banks:

-  Banco Bilbao Vizcaya Argentaria, Chile
-  Banco de Chile
-  Banco de Credito e Inversiones
-  Banco Santander Chile
-  Banco Security

OPERATIONS 

Line of Business : Import and marketing of products for department stores, such
                   as clothes, gifts, advertising and promotion products, etc.

Classification according to commercial activity:

Sic: 6719-0000 Offices of holding companies, not elsewhere classified

Subject is considered as a large company in this line of business, strong
competition

Sales

Sales are steady throughout the year
100% retailers

National and international sales territory

Products are sold

National: 99%.

International: 1%.

Historical exports registered in the Customs National Services

Total       2010 = 000's$ 49.657
Total       2009 = 000's$ 0

Not exporting currently

Customers

Main customers are: Public in general.

Purchases

Places orders with multiple suppliers

National: 40%

International: 60%

Imports from Germany, Argentina, Bangladesh, Belgium, Bolivia, Brazil, Bulgaria,
Canada, China, Colombia, South Korea, Croatia, Egypt, El Salvador, Spain,
Philippines, France, Netherlands, Hong Kong, Hungary, India, Indonesia, England,
Italy, Japan, Malaysia, Mexico, Nicaragua, Unknown Origin/Destin., Pakistan,
Panama, Peru, Poland, Portugal, Romania, Singapore, Switzerland, Taiwan,
Thailand, Tunisia, Turkey, United States, Uruguay and Vietnam.

of Imports obtained from Customs'National Service

Country                            %last year   %Accum.
-------------------------------------------------------
China                                   81,74     84,80
Japan                                    3,99      0,95
United States                            2,76      1,60
Malaysia                                 2,10      0,73
India                                    1,76      2,36
Unknown Origin/Destin.                   1,21      1,92
Argentina                                1,08      2,97
Brazil                                   0,88      0,30
Vietnam                                  0,85      0,66
Pakistan                                 0,83      0,22
Italy                                    0,41      0,56
Bangladesh                               0,41      0,37
Peru                                     0,39      0,41
Indonesia                                0,26      0,35
South Korea                              0,24      0,04
Turkey                                   0,20      0,02
Egypt                                    0,12      0,13
Taiwan                                   0,10      0,03
Romania                                  0,09      0,04
England                                  0,08      0,03
Belgium                                  0,07      0,02
Bolivia                                  0,05      0,00
Spain                                    0,05      0,15
Canada                                   0,04      0,02
Colombia                                 0,04      0,08
Thailand                                 0,04      0,01
Switzerland                              0,03      0,00
Singapore                                0,02      0,71
Hong Kong                                0,02      0,06
Mexico                                   0,02      0,00
Portugal                                 0,02      0,01
Nicaragua                                0,01      0,00
France                                   0,01      0,01
Croatia                                  0,01      0,00
El Salvador                              0,01      0,00
Netherlands                              0,00      0,00
Uruguay                                  0,00      0,00
Germany                                  0,00      0,03
Bulgaria                                 0,00      0,00
Hungary                                  0,00      0,00
Philippines                              0,00      0,01
Poland                                   0,00      0,01
Panama                                   0,00      0,00
Tunisia                                  0,00      0,01

Historical registries

Total       2011 = 000's$ 216.688.100 Accumulated 2012 = 000's$ 153.547.202
Total       2010 = 000's$ 138.623.649
Total       2009 = 000's$ 99.810.186
Total       2008 = 000's$ 56.092.714
Total       2007 = 000's$ 44.303.713


Main suppliers 

- Adidas Chile Ltda.
- Comercial Depor Ltda.
- Comercial Josich S.A.
- Comercial Monte Bianco Ltda.
- D.N.D. Import & Export Limitada
- Dist. Colchones Rosen S.A.
- Forus S.A.
- Hasbro Chile Ltda.
- Heller S.A., Leon
- Importadora y Exportadora Chile Business Group Limitada
- Inmobiliaria Novel Limitada
- LG Electronics Inc. Chile Ltda.
- Mobel Forte S.A.
- Moletto Hnos. S.A. Manufacturas Textiles
- Nike de Chile S.A.
- Philips Chilena S.A.
- Puma Chile S.A.
- Sociedad Comercial Abujatum y Tala Ltda.
- Sociedad Comercial Importadora y Exportadora Eme Erre Chile Limitada
- Sony Chile
- T.J.C. Chile S.A.
- VF Chile S.A.

No own employees, hires those of related companies 67.961 employees

Location

-  Administrative offices located at Rosas 1665 Santiago, Chile, commercial
   area, secondary street of normal traffic, construction in good conditions

Branches 

Subject has

-  40 stores.-

RELATED COMPANIES 

Subject is related to the following companies:

-  Comercial Monse Ltda., 99,95% Participation
-  South America Textiles Ltda., 99,50% Participation
-  S.A.C.I. Falabella T A X 90749000-9 Santiago (owner of 99,99% of "Inversiones
   Falabella Ltda.")

FIXED ASSETS

Real estates 

Subject does not register real estates

Machinery & Instalations 

Equipments and machinery, not specified

INSURANCES 

Insurance Company:

-RSA Seguros Chile S.A.


ADMINISTRATION

Legal Representative     : Juan Carlos Cuneo Solari TAX:3066418-3
Corporate General        : Agustín Solari Alvarez TAX:8458863-6
Manager Department
stores. Chile (Retail)
General Manager          : Juan Pablo Montero Schepeler TAX:9357959-3
Corporate for department
stores.-
Corporate Finances       : Alejandro Patricio González Dale TAX:10054917-4
manager SACI Falabella
Finances Manager Retail  : Andrés Salvestrini Balmaceda TAX:10896993-8

CURRICULUM


Juan Carlos Cuneo Solari

T A X               : 3066418-3
Titled as           : Commercial Engineer.
Position            : Legal Representative
Simultaneously      : Director of S.A.C.I Falabella and Farmacias Ahumada S.A.

Agustín Solari Alvarez

T A X               : 8458863-6
Titled as           : Commercial Engineer.
Position            : Corporate General Manager Department stores. Chile
                      (Retail)

Juan Pablo Montero Schepeler

T A X               : 9357959-3
Titled as           : Civil Engineer.
Position            : General Manager Corporate for department stores.-

Alejandro Patricio González Dale

T A X               : 10054917-4
Titled as           : Commercial Engineer.
Position            : Corporate Finances manager SACI Falabella

LEGAL INFORMATION 

Legal Structure              : Private Stock Company
Constitution date            : 08/07/1998. Business name is "Sociedad de Inversiones
                                    Bruzzone y Bruzzone".
Term of duration             : Indefinite
Legal Address               : Santiago - Chile

Current Social Capital: 000's$ 58.440.099.-Divided to 8.204.696.368.- registered
                        shares unique series

Shareholder                   : 2

-  99,99% 76020391-2 Inversiones Falabella Ltda.
-   0,01% 76020385-8 Inversiones Parmin S.P.A.

Legal changes

Public Deed dated 21/12/1999, notary Enrique Morgan Torres, Santiago, published
in the Official Gazette dated 18/01/2000 page N° 26, corporate structure was
modified: Civil Collective Partnership "Sociedad de Inversiones Bruzzone y
Bruzzone" by private stock company "Inverfin S.A." with indefinite term of
duration. Capital is $2.000.000.- divided into 1.000 no par value shares.-

Public Deed dated 31/07/2002, notary Paulina Sotomayor Graepp, Santiago,
published in the Official Gazette dated 24/09/2002 page N° 11, capital was
increased: from $2.158.914.- (revalued) to $87.420.183.506.- divided into
40.492.666 no par value shares.

Public Deed dated 27/09/2002, notary Alberto Mozó Aguillar, Santiago, published
in the Official Gazette dated 14/11/2002 page N° 18, capital was increased: from
$87.420.183.506 to $88.160.183.506.- divided into 4.049.266.600 no par value
shares.-

Public Deed dated 04/03/2008, notary Guillermo Le-Fort Campos, Santiago,
published in the Official Gazette dated 29/04/2008 page N° 17, statutes were
modified: it was agreed to divide partnership into two companies: one is the
continuer company, which changed its business name "Inverfin S.A." by "Falabella
Retail S.A." and the other company was created after the division and will have
as business name "Inverfin S.A." Consequently, capital was decreased from
$106.260.280.139.- to $38.584.800-163.- divided into 4.049.266.600.- no par
value shares.-

Public Deed dated 02/06/2008, notary Linda Scarlett Bosch, Santiago, published
in the Official Gazette dated 01/08/2008 page N° 69, capital was increased: from
$38.584.800.163.- to $40.275.455.304.- divided into 5.566.235.423.- no par value
shares.-

Public Deed dated 01/08/2008, notary Linda Scarlett Bosch Jiménez, Santiago,
published in the Official Gazette dated 24/09/2008 page N° 17, board of
directors was modified: the number of directors was increased from 3 to 9
members.-

Public Deed dated 01/10/2008, notary Linda Scarlett Bosch Jiménez, Santiago,
published in the Official Gazette dated 13/11/2008 page N° 11, capital was
increased: where it appears "Capital amounts to $40.275.455.304.-" it should be
mentioned "capital amounts to $40.322.267.447.- divided into 5.566.235.406
shares". Capital was increased to $59.179.942.156.- divided into 8.169.418.790
no par value shares.

Public Deed dated 02/10/2008, notary Linda Scarlett Bosch Jiménez, Santiago,
published in the Official Gazette dated 28/11/2008 page N° 23, capital was
increased: from $59.179.942.156.- to $60.822.879.898.- divided into
8.422.178.443 no par value shares.

Public Deed dated 03/11/2008, notary Linda Scarlett Bosch Jiménez, Santiago,
published in the Official Gazette dated 02/01/2009 page N° 50, capital was
increased: from $59.179.942.156 (paid) to $147.645.676.427.- divided into
21.012.156.956 no par value shares through the issuance of 12.589.978.513 new
shares.-

Public Deed dated 22/01/2009, notary Linda Scarlett Bosch, Santiago, published
in the Official Gazette dated 20/03/2009 page N° 22, deed was rectified 1) To
correct flaws of public deed granted by the same notary dated November 03, 2008
and published in Official Gazette dated Jan 2, 2009:

Capital was increased from $ 60.822.879.898 to $ 149.288.614.169 divided into
20.672.078.503 registered and no par value shares.-

At the same time, statutes were modified: it was approved the takeover merger
of  "Nueva Sodimac Tres S.A." by "Falabella Retail S.A." (Subject) which
acquired total assets and liabilities, rights, duties, networth and
shareholders. "Nueva Sodimac Tres S.A." is dissolved. Consequently, capital was
increased: to $ 153.055.332.000 divided into 20.969.393.305 registered, one
series and no par value shares.- Out of total issued shares, 20.672.078.503 of
them correspond to $ 153.044.145.154 which are completely subscribed and paid.
The balance of 297.314.802 shares which correspond to $11.186.846 has been
issued and will be exchanged by shares that shareholders of Nueva Sodimac Tres
S.A. own in such company.This operation was done in order to get the merger
agreement established in the Extraordinary Meeting of Shareholders held on
January 22, 2009.-

Public Deed dated 01/04/2009, notary Linda Scarlett Bosch Jimenez, Santiago,
published in the Official Gazette dated 28/05/2009 page N° 35, capital was
increased: from $153.055.332.000 to $255.732.142.706 divided into 35.036.661.645
registered, one series and no par value shares.-

Public Deed dated 01/06/2009, notary Maria Carolina Bascuñán Barros, Santiago,
published in the Official Gazette dated 31/07/2009 page N° 18, statutes were
modified: it was agreed to divide subject according to the financial statements
as at May 31, 2009 effective on June 1, 2009, distributing its networth between
subject and a new stock company with business name NUEVA PLAZA S.A.
Consequently, capital was reduced: from $ 255.732.142.706 to $ $2.308.911.113
established in $ 253.423.231.593 divided into 35.036.661.645 registered, one
series and no par value shares of same value each one of them.-

Divided company keeps its name "Falabella Retail S.A." and its capital was
decreased from $253.423.231.593 to $ 251.272.727.717 divided into 34.739.346.847
no par value shares.-

Public Deed dated 12/01/2011, notary Zoran Ostoic Marroquim, Santiago, published
in the Official Gazette dated 04/03/2011 page N° 5, capital was reduced from
$247.440.099.476 (paid) to $189.000.000.000.- established in $58.440.099.476.-
The amount of shares in which capital is divided was reduced from 34.739.346.847
to 26.534.650.479, now established on 8.204.696.368 registered, same series and
no par value shares completely subscribed and paid.

Note:

This company became part of the retail area of S.A.C.I. Falabella in order to
manage it independently.

It started operating in current line of business on Sep 1st, 2008.

PUBLICATIONS

Information regarding subject is supplied as follows

Memoria 2010 SACI  Falabella. of 29/09/2011 The shareholder "Inversiones
Falabella" is a Limited Liability Partnership.

On May 2, 2008 the partnership was established as a Limited Liability
Partnership by Public Notary of Santiago Guillermo Le-Fort Campos. The corporate
purpose of the company is to invest in shares, bonds, debentures, payments or
rights in partnerships, and in any title and/or real estate security and in
other real estate incomes.

Inversiones Falabella and its affiliate companies operates in Chile,
Argentina, Peru and Colombia. (It has 189 direct affiliate companies)

The company is engaged in the retail sale of clothes, home appliances and
articles. Also it sales foodstuffs through Hyper and Super Markets. Besides, it
particpates in other supporting businesses such as financial services (CMR
insurance brokers, bank), shopping malls and manufacture of textiles (Mavesa,
Italmod). -

Economía y Negocios El Mercurio Cuerpo B, página 7 of 10/01/2013 Falabella will
invest US$3.900.000.000 from here to the year 2017 to keep more than 200
stores.


In 2013, US$887.000.000 will be invested and 42 new stores will be opened.


INFORMATION SOURCES

Miss. Claudia Calvanese, General Manager Assistant,  submitted
just general information,  declined financial statements according to policies
of the company.

-Other outside information sources.

Exchange rate

-As at 21/12/2012 $475,02 Per US$



 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.54.29

UK Pound

1

Rs.84.09

Euro

1

Rs.72.44

 

 

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.