MIRA INFORM REPORT

Report Date :

23.01.2013

IDENTIFICATION DETAILS

Name :	ARTSANA SPA
Registered Office :	Via S Catelli 1 Grandate, 22070
Country :	Italy
Financials (as on) :	31.12.2011
Date of Incorporation :	12.09.1966
Com. Reg. No.:	00227010139
Legal Form :	Public Parent
Line of Business :	Manufacture of surgical dressings, elastic and gauze bandages, sanitary towels, plasters, cotton wool
No. of Employees :	1,989

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 :	Satisfactory
Payment Behaviour :	Slow but Correct
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 (31.03.2012)	Current Rating (30.06.2012)
Italy	A2	A2

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

ITALY - ECONOMIC OVERVIEW

Italy has a diversified industrial economy, which is divided into a developed industrial north, dominated by private companies, and a less-developed, welfare-dependent, agricultural south, with high unemployment. The Italian economy is driven in large part by the manufacture of high-quality consumer goods produced by small and medium-sized enterprises, many of them family owned. Italy also has a sizable underground economy, which by some estimates accounts for as much as 17% of GDP. These activities are most common within the agriculture, construction, and service sectors. Italy is the third-largest economy in the euro-zone, but exceptionally high public debt burdens and structural impediments to growth have rendered it vulnerable to scrutiny by financial markets. Public debt has increased steadily since 2007, reaching 120% of GDP in 2011, and borrowing costs on sovereign government debt have risen to record levels. During the second half of 2011 the government passed a series of three austerity packages to balance its budget by 2013 and decrease its public debt burden. These measures included a hike in the value-added tax, pension reforms, and cuts to public administration. The government also faces pressure from investors and European partners to address Italy's long-standing structural impediments to growth, such as an inflexible labor market and widespread tax evasion. The international financial crisis worsened conditions in Italy''s labor market, with unemployment rising from 6.2% in 2007 to 8.4% in 2011, but in the longer-term Italy''s low fertility rate and quota-driven immigration policies will increasingly strain its economy. The euro-zone crisis along with Italian austerity measures have reduced exports and domestic demand, slowing Italy''s recovery. Italy''s GDP is still 5% below its 2007 pre-crisis level.

Source : CIA

Company name and address

ARTSANA SPA

Via S Catelli 1

Grandate, 22070

Italy

Tel: +39-031382000

Fax: +39 0313 82400

Website: www.artsana.com

Employees: 1,989

Company Type: Public Parent

Corporate Family: 10 Companies

Incorporation Date: 12-Sep-1966

Financials in: USD (In Millions)

Fiscal Year End: 31-Dec-2011

Reporting Currency: Euro

Annual Sales: 1,017.3

Total Assets: 1,174.7

Business Description

Manufacture of surgical dressings, elastic and gauze bandages, sanitary towels, plasters, cotton wool; rubber goods including bed sheets, cushions, aprons, bathing hats, sanitary goods, surgical rubber products; plastic products for medical purposes including transfusion equipment, catheters, syringes and bottle teats and bottles for babies; a wide range of medical instruments

Industry

Industry	Personal and Household Products
ANZSIC 2006:	1524 - Sanitary Paper Product Manufacturing
NACE 2002:	2122 - Manufacture of household and sanitary goods and of toilet requisites
NAICS 2002:	322291 - Sanitary Paper Product Manufacturing
UK SIC 2003:	2122 - Manufacture of household and sanitary goods and of toilet requisites
UK SIC 2007:	1722 - Manufacture of household and sanitary goods and of toilet requisites
US SIC 1987:	2676 - Sanitary Paper Products

Key Executives

Name	Title
Michele Catelli	Founder, Chairman & CEO
Alberto Corti	Direttore-Commerciale
Ugo Andreoli	Direttore-Sistemi Informativi
Enrico Catelli	Purchasing manager
Massimo Sirotti	Direttore-QualitÃ

Registered No.(ITA): 00227010139

1 - Profit & Loss Item Exchange Rate: USD 1 = EUR 0.7191895
2 - Balance Sheet Item Exchange Rate: USD 1 = EUR 0.770327

Corporate Overview

Location
Via S Catelli 1
Grandate, 22070
Italy

Tel: +39-031382000

Fax: +39 0313 82400

Webite:

www.artsana.com

Sales EUR(mil): 731.7

Assets EUR(mil): 904.9

Employees: 1,989

Fiscal Year End: 31-Dec-2011

Industry: Personal and Household Products

Incorporation Date: 12-Sep-1966

Company Type: Public Parent

Quoted Status: Not Quoted

Registered No.(ITA): 00227010139

Founder, Chairman & CEO : Michele Catelli

Industry Codes

ANZSIC 2006 Codes:
1524	-	Sanitary Paper Product Manufacturing
19	-	Polymer Product and Rubber Product Manufacturing
2412	-	Medical and Surgical Equipment Manufacturing

NACE 2002 Codes:
2122	-	Manufacture of household and sanitary goods and of toilet requisites
3310	-	Manufacture of medical and surgical equipment and orthopaedic appliances
2513	-	Manufacture of other rubber products

NAICS 2002 Codes:
322291	-	Sanitary Paper Product Manufacturing
339112	-	Surgical and Medical Instrument Manufacturing
326299	-	All Other Rubber Product Manufacturing

US SIC 1987:
2676	-	Sanitary Paper Products
3841	-	Surgical and Medical Instruments and Apparatus
3069	-	Fabricated Rubber Products, Not Elsewhere Classified

UK SIC 2003:
2122	-	Manufacture of household and sanitary goods and of toilet requisites
2513	-	Manufacture of other rubber products
3310	-	Manufacture of medical and surgical equipment and orthopaedic appliances

UK SIC 2007:
1722	-	Manufacture of household and sanitary goods and of toilet requisites
3250	-	Manufacture of medical and dental instruments and supplies
2219	-	Manufacture of other rubber products

Business Description

Manufacture of surgical dressings, elastic and gauze bandages, sanitary towels, plasters, cotton wool; rubber goods including bed sheets, cushions, aprons, bathing hats, sanitary goods, surgical rubber products; plastic products for medical purposes including transfusion equipment, catheters, syringes and bottle teats and bottles for babies; a wide range of medical instruments

More Business Descriptions

Health & Infant Products

Artsana SpA is primarily engaged in manufacture of instruments and appliances used for medical, surgical, dental or veterinary purposes (electro-diagnostic apparatus such as electrocardiographs, ultrasonic diagnostic equipment, scintillation scanners, nuclear magnetic resonance apparatus, dental drill engines, sterilizers, ophthalmic instruments); manufacture of syringes, needles used in medicine, mirrors, reflectors, endoscopes, etc.; manufacture of apparatus based on the use of X-rays or alpha, beta or gamma radiation whether ornot for use in human or animal medicine (X-ray tubes, high tension generators, control panels, desks, screens, etc.); manufacture of medical, surgical, dental or veterinary furniture (operating tables, hospital beds with mechanical fittings, dentists’ chairs); and manufacture of mechano-therapy appliances, massage apparatus, psychological testing apparatus, ozone therapy, oxygen therapy, artificial respiration apparatus, gas masks, etc. This class also includes: manufacture of orthopaedic appliances (crutches, surgical belts and trusses, splints, artificial teeth, artificial limbs and other artificial parts of the body, hearing aids, pace-makers, orthopaedic shoes, etc.).

Medical Equipment and Supplies Manufacturing

Brand/Trade Names

Artsana Chicco Pic Indolor

Control Lycia

Financial Data

Financials in:	EUR(mil)	1 Year Growth
Revenue:	731.7	-0.8%
Assets:	904.9	NA
Current Assets:	504.5
Total Liabilities:	904.9
Net Worth:	296.0
Date of Financial Data:	31-Dec-2011

Subsidiaries

Company	Percentage Owned	Country
Prenatal SpA
Boppy SRL
Artsana Sud SpA
Co Graf SpA
Prenatal SpA	100%	ITALY
Artsana Spain, S.A.	100%	SPAIN
Fashion Village Srl	100%	ITALY
International Artsana SA	100%	LUXEMBOURG
Co-Graf SpA	90%	ITALY
S.C. Artsana Romania SRL	100%	ROMANIA
Boppy Srl	100%	ITALY
Artsana Sud SpA	100%	ITALY

Key Corporate Relationships

Bank:

Banca Popolare di Milano ag, UniCredit Banca ag, Cassa di Risparmio di Parma e Piacenza ag

Corporate Structure News

Artsana SpA
Total Corporate Family Members: 10

Company Name	Company Type	Location	Country	Industry	Sales (USD mil)	Employees
Artsana SpA	Parent	Grandate, CO	Italy	Personal and Household Products	1,017.3	1,989
Prenatal SpA	Subsidiary	Agrate Brianza, MI	Italy	Retail (Apparel)	300.0	1,298
Prenatal Sa	Subsidiary	L' Hospitalet De Llobregat, Barcelona	Spain	Retail (Apparel)	110.2	531
Artsana México, S.A. De C.V.	Subsidiary	Guadalajara, Jalisco	Mexico	Apparel and Accessories	10.6	1
Pré - Natal - Sociedade Unipessoal, LDA	Subsidiary	Porto, Porto	Portugal	Retail (Apparel)	20.1	159
Prenatal Moeder En Kind BV	Subsidiary	Almere	Netherlands	Retail (Apparel)		120
Artsana Sud SpA	Subsidiary	Ortona, Chieti	Italy	Personal and Household Products	172.3	231
Co Graf SpA	Subsidiary	Vanzago, Milano	Italy	Printing and Publishing	12.7	51
ARTSANA GERMANY GmbH	Subsidiary	Dietzenbach, Hessen	Germany	Apparel and Accessories	24.9	48
The Boppy Company	Subsidiary	Golden, CO	United States	Apparel and Accessories		20

Board of Directors

Name	Title	Function
Michele Catelli	Founder, Chairman & CEO	Chairman
Enrico Catelli	Purchasing manager	Director/Board Member
Francesca Mina Maria Catelli	Member of the board	Director/Board Member
Claudio De Conto	Member of the board	Director/Board Member

Executives

Name	Title	Function
Michele Catelli	Founder, Chairman & CEO	Chief Executive Officer
Pietro Catelli	Presidente & Founder	Chief Executive Officer
Mario Merlo	Managing director	Managing Director
Martino Troncatti	Direttore-Risorse Umane	Human Resources Executive
Alberto Corti	Direttore-Commerciale	Sales Executive
Marco Schiovanna	Direttore-Marketing	Marketing Executive
Michela Porta	Responsabile-Ufficio Stampa	Public Relations Executive
Ugo Andreoli	Direttore-Sistemi Informativi	Information Executive
Enrico Catelli	Purchasing manager	Purchasing Executive
Massimo Sirotti	Direttore-QualitÃ	Quality Executive
Lorenzo Anselmi	Executive	Other
Daniele Bottanelli	Executive	Other
Mauro Cassani	Executive	Other
Bruno Galbiati	Executive	Other
Francesco Lo Piccolo	Executive	Other
Roberto Marelli	Executive	Other
Alberto Menna	Executive	Other
Daniele Sartori	Executive	Other

Annual Profit & Loss

	31-Dec-2011	31-Dec-2010	31-Dec-2009
Period Length	12 Months	12 Months	12 Months
Filed Currency	EUR	EUR	EUR
Exchange Rate (Period Average)	0.71919	0.755078	0.719047
Consolidated	No	No	No
Total income	1,029.7	993.8	1,000.1
Net sales	1,017.3	976.3	998.4
Other operating income	14.5	12.3	11.6
Raw materials and consumables employed	527.4	494.9	478.9
Other expenses	293.0	289.3	305.5
Total payroll costs	135.3	129.3	139.0
Fixed asset depreciation and amortisation	36.7	38.7	41.5
Other operating costs	7.7	7.6	8.7
Net operating income	29.6	34.0	26.5
Total financial income	50.9	101.0	13.6
Total expenses	12.6	8.0	10.9
Profit before tax	67.9	127.0	29.2
Extraordinary result	-187.6	1.4	9.0
Profit after extraordinary items and before tax	-119.7	128.4	38.2
Total taxation	9.8	15.2	10.4
Net profit	-	113.2	27.8
Net loss	129.5	-	-

Annual Balance Sheet

Financials in: USD (mil)

	31-Dec-2011	31-Dec-2010	31-Dec-2009
Filed Currency	EUR	EUR	EUR
Exchange Rate	0.770327	0.745406	0.696986
Consolidated	No	No	No
Total stockholders equity	384.2	524.3	440.4
Provision for risks	18.7	19.7	24.3
Provision for pensions	29.6	32.0	36.1
Mortgages and loans	129.0	117.0	182.3
Other long-term liabilities	54.9	68.1	85.0
Trade creditors	109.7	123.7	114.6
Bank loans and overdrafts	285.3	208.5	102.3
Other current liabilities	160.4	156.9	211.6
Accruals and deferred income	2.9	3.1	3.1
Total current liabilities	558.3	492.2	431.7
Total liabilities (including net worth)	1,174.7	1,253.2	1,199.8
Intangibles	8.7	9.4	13.3
Buildings	72.8	80.8	91.4
Total tangible fixed assets	157.3	174.2	188.2
Long-term investments	348.5	413.8	300.6
Total financial assets	348.8	440.9	372.5
Receivables due after 1 year	4.9	7.1	6.6
Loans to associated companies	-	26.8	71.7
Total non-current assets	519.7	631.6	580.7
Finished goods	149.5	137.7	133.9
Net stocks and work in progress	165.1	153.2	149.9
Trade debtors	379.0	371.1	392.0
Other receivables	105.2	86.2	56.4
Cash and liquid assets	4.9	10.0	19.7
Accruals	0.8	1.2	1.2
Total current assets	655.0	621.7	619.1
Total assets	1,174.7	1,253.2	1,199.8

Annual Ratios

Financials in: USD (mil)

	31-Dec-2011	31-Dec-2010	31-Dec-2009
Period Length	12 Months	12 Months	12 Months
Filed Currency	EUR	EUR	EUR
Exchange Rate	0.770327	0.745406	0.696986
Consolidated	No	No	No
Current ratio	1.20	1.30	1.40
Quick ratio	0.90	1.00	1.10
Current liabilities to net worth	0.01%	0.01%	0.01%
Sales per employee	0.39	0.37	0.22
Profit per employee	-0.05	0.05	-
Average wage per employee	0.05	0.05	0.03
Net worth	384.2	524.3	440.4
Number of employees	1,893	1,995	-

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.53.51
UK Pound	1	Rs.84.85
Euro	1	Rs.71.43

INFORMATION DETAILS

Report Prepared by :

SDA

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.