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Report Date : |
10.07.2013 |
IDENTIFICATION DETAILS
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Name : |
ELTA SYSTEMS LTD. |
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Formerly Known As : |
ELTA ELECTRONIC INDUSTRIES LTD |
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Registered Office : |
P.O. Box 330, Ashdod (7710202) 100 Yitzchak Hanasi Blvd. Industrial Zone Ashdod 7762402 |
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Country : |
Israel |
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Financials (as on) : |
31.12.2010 |
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Year of Incorporation : |
1960 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Developers, manufacturers, exporters and marketers of defense electronic systems, specializing in radar systems, electronic warfare and communication, information systems, Airborne Early Warning & Control systems, homeland security solutions, etc. |
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No. of Employees : |
3,627 |
RATING & COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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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) |
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Israel |
A2 |
A2 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
ISRAEL - ECONOMIC OVERVIEW
Israel has a technologically advanced market economy. It depends on
imports of crude oil, grains, raw materials, and military equipment. Cut
diamonds, high-technology equipment, and agricultural products (fruits and
vegetables) are the leading exports. Israel usually posts sizable trade
deficits, which are covered by tourism and other service exports, as well as
significant foreign investment inflows. The global financial crisis of 2008-09
spurred a brief recession in Israel, but the country entered the crisis with
solid fundamentals - following years of prudent fiscal policy and a resilient
banking sector. The economy has recovered better than most advanced, comparably
sized economies. In 2010, Israel formally acceded to the OECD. Natural
gasfields discovered off Israel's coast during the past two years have
brightened Israel's energy security outlook. The Leviathan field was one of the
world's largest offshore natural gas finds this past decade. In mid-2011,
public protests arose around income inequality and rising housing and commodity
prices. The government formed committees to address some of the grievances but
has maintained that it will not engage in deficit spending to satisfy populist
demands.
Source
: CIA
ELTA SYSTEMS LTD.
Telephone 972
8 857 23 33; 857 26 00
Fax 972
8 856 59 14
E-mail: dkonig@elta.co.il
P.O. Box 330, Ashdod (7710202)
100 Yitzchak Hanasi Blvd.
Industrial Zone
ASHDOD 7762402 ISRAEL
Originally established in 1960 as a department of ISRAEL AEROSPACE
INDUSTRIES LTD.
Converted into a private limited company and
registered as such as per file
No. 51-048798-6 on the 01.09.1967 (by State law: "governmental subsidiary").
Originally registered under the name ELTA ELECTRONIC INDUSTRIES LTD.,
which changed to the present name on the 30.06.2002.
Authorized share capital NIS 63,000,100.00, divided into -
63,000,099 ordinary "A" shares
(62,079,099 shares issued) of NIS 1.00 each,
10 ordinary "B" shares (issued)
of NIS 0.10 each,
of which shares
amounting to NIS 62,079,100.00 were issued.
Subject is a
wholly owned subsidiary of ISRAEL AEROSPACE INDUSTRIES LTD. (IAI), a State
owned company, under the auspices of the Ministry of Defense.
1. Itzhak Nissan, Chairman of subject and
General Manager of IAI,
2. Ms. Orna Zehavi,
3. Tal Rabina,
4. Ms. Isabel Okashi,
5. Ms. Nava Sela,
6. Yechezkel Daskal,
7. Ran Yanges,
8. Yehoshua Eldar,
9. Ms. Shlomit Zuta.
Nissim Hadas
Developers,
manufacturers, exporters and marketers of defense electronic systems,
specializing in radar systems, electronic warfare and communication,
information systems, Airborne Early Warning & Control systems, homeland
security solutions, etc.
Subject operates
via 3 divisions:
1.
Field radar systems and spatial defense ('Segev
Plant'),
2.
Multitask airborne radars ('Marom Plant'),
3.
Signal intelligence (SIGINT), electronic warfare
and communication.
88% of sales are
for export (71% of which were to Asia, 7% to South America), as of 2011.
Sales are to
governments worldwide, mainly armed forces and defense ministries.
local customer is
the State of Israel, mainly via Israel Defense Force (8% of total sales in
2011).
Among local
suppliers: S.A. INDUSTRIES, TELIRAN, ELIMEC, NEPCON MANUFACTURING TECHNOLOGIES,
AVIV RICHARDSON, C.M.M., NEPCON MANUFACTURING TECHNOLOGIES, K&K ANTISTATIC,
BERLIN TECHNOLOGIES, BEITH DEKEL ENGINEERING AND MANUFACTURING, CHEMOGRAF,
NEPTUNE PUNDAK & AYALON, KARAT ISRAEL, ELMO MOTION CONTROL, etc.
Operating from
premises - offices, plants and warehouses - on a total area of 190,000 sq.
meters, in the 100 Yitzchak Hanasi Blvd., Industrial Zone, Ashdod. Also operating
from the Integration Compound at the Ben Gurion Airport, part of the large
complex of plots and buildings which serves IAI Group (also IAI headquarters,
owned).
Having 3,627
employees (as of 31.12 2011).
There are 16,679
employees serving the IAI Group as of end of 2011.
Accrued orders to the 15.03.2012 US$ 1,849
million.
Total assets as of
30.09.2012 US$ 1,023 million (US$ 1,161 million
as of 31.12.2011).
Subject is an “Approved Enterprise” and as such enjoys
tax benefits and State incentives. In May 2004, the Israel Investment Center
approved a US$ 50 million investment plan for the expansion of subject’s plant.
There is 1 charge
for an unlimited amount registered on the company’s assets, in favor of the
State of Israel (charge placed December 2004).
Data from the
consolidated B/S of subject based on the latest publications of the Government
Companies Authority (GCA):
US$ (thousands)
31.12.2009 31.12.2010
ASSETS
Current assets
Cash and cash equivalents 101,616 175,245
Investments 155,821 139,522
Financial assets 89,634 131,883
Customers 113,066 147,542
Other debtors 244,043 259,836
Stock 31,710 32,957
735,890 886,985
Non-current assets
Fixed assets (net) 127,480 132,179
Other non-current assets 69,553 74,246
197,033 206,425
932,923 1,093,410
======= ========
LIABILITIES
Current
liabilities 629,136 748,612
Long-term
liabilities 47,763 53,856
Equity 256,024 290,942
932,923 1,093,410
======= ========
ISRAEL AEROSPACE
INDUSTRIES consolidated 30.09.2012 B/S shows (in brackets 31.12.2011):
Total assets: US$
4,401 million (US$ 4,605 million).
Equity: US$ 862 million (US$ 828 million).
REVENUES
Consolidated
Statement of Income
US$
(thousands)
Year
ended 31.12
2008 2009 2010
Sales 1,022,471 940,582 950,837
Gross profit 163,651 169,516 167,746
Operating income 72,302 74,049 62,397
Pre-tax income 62,912 87,681 79,214
Net income 47,178 65,494 65,554
======= ====== =======
Subject's 2011
sales were US$ 1,001 million, making an operating profit of
US$ 94 million a
net profit of US$ 75 million.
Subject's first 9
months of 2012 sales were US$ 606 million, making an operating profit of US$ 43
million and a net profit of US$ 25 million.
ISRAEL
AEROSPACE INDUSTRIES LTD. (IAI)
Consolidated
Statement of Income
Year
ended 31.12
US$
(millions)
2009 2010 2011
Revenues, net 2,881 3,148 3,436
Gross profit 436 455 518
Operating income 75 52 133
Profit before tax 84 100 100
Net income 61 94 83
====== ====== ======
IAI consolidated
revenues for the first 9 months of 2012 were US$ 2,453 million (6% decrease compared to parallel
period of 2011), making a gross profit of
US$ 380 million, an operating profit of US$ 82 million, and a net profit of
US$ 46 million.
ELTA NORTH AMERICA
INC., USA, 100%,
ELBATECH LTD.,
50%, electronic manufacturing and assemblies.
D. T. S. LTDA,
50%, development and manufacturing of electronic systems.
LARDOSA INVESTMENT
B.V., 100%, Holland, holding company.
GAL-EL (MMIC),
50%, a partnership, R&D.
DESARROLLO DE TECNOLOGIAS Y SISTEMAS
LIMITADA, 50.01%, Chile,
DECOLINK WIRELESS LTD., 30%, development and
manufacturing of products in the wireless field.
HBL ELTA AVIONICS SYSTEMS PVT. LTD., 26%,
India.
OPTIGO SYSTEMS
LTD., 100%, manufactures of optical systems.
SAFEX IMPORT AND
EXPORT GMBH, 100%, Germany.
ISRAEL AEROSPACE INDUSTRIES LTD. (IAI), parent company, developer and
manufacturer of military and commercial aerospace technology, Engaged in the
development, manufacture, overhaul, repair, maintenance, export and marketing
of civilian and military aircrafts, medium-sized jets and aerospace equipment,
electronic and advanced technology systems, weapon and armament systems, law
enforcement, training and simulation systems, etc. Activities are through
subsidiaries, via 4 operating Groups (besides subject): BEDEK Aviation Group;
Civilian Aircraft Group; Military Aircraft Group; Missile Systems; Aerospace
Group. Having many other subsidiaries.
Main accounts:
Bank Leumi
Le’Israel Ltd., Ashdod Branch (No. 932), Ashdod.
Bank Hapoalim
Ltd., Ashdod Branch (No. 658), Ashdod.
Nothing
unfavorable learned.
Subject is one of
the leading companies in developing radars and electronic warfare systems.
In December 2005
subject was awarded the quality award of Israel's Electronics Association.
Subject is
AS-9100, OSHAS 18001 and ISO-14001 certified.
In 2002, parent
IAI -through subject- acquired 30% of ELISRA, one of Israel’s leading military
electronic systems manufacturers, from the KOOR Group, for US$ 100 million,
according to a company value of US$ 330 million. The deal was severely
criticized by the State Comptroller Office as per the deal terms, which set
"too high" value to the acquired company. The publication of the
report at the end of 2005 also led to the resignation of subject's general
manager in March 2006.
During 2005 ELBIT
SYSTEMS LTD. acquired the remaining 70% of ELISRA from KOOR according to a
company value of US$ 100 million. That required subject to make a deduction in
ELISRA's share values in its books. In July 2010 it was reported that 2
directors of ELISRA’s Board, appointed by subject approached the Court, trying
to withhold an inside deal in ELBIT SYSTEMS Group, where part of ELISRA’s
activities will be moved to another member in ELBIT Group (though 100% owned by
ELBIT). Eventually, in March 2011 subject sold its shares (30%) in ELISRA to
ELBIT SYSTEM for US$ 67.5 million.
In December 2003,
subject acquired the Military Division of NICE SYSTEMS, for a sum of US$ 4
million.
In March 2004
subject received a major contract valued US$ 1.1 billion to supply its airborne
deterrence systems and ground stations to a client.
In March 2006 the US Government
approve a consortium, in which subject is one of the major partners with
GULFSTREAM and D.R.S., to supply Korea with reconnaissance aircrafts in value
of US$ 1.1 billion. Subject is to supply main electronic systems.
In June 2006 subject won 2 local
tenders: US$ 1 million for peripheral defense security system to the AIRPORT
AUTHORITY and a special real-time intelligent center, worth US$ 22 million as
an initial order to the Ministry of Defense.
In September 2006 subject
reported orders by the Israeli Air Force amounting to total of US$ 500 million
for radar and control systems for warning aircrafts.
In February 2007,
parent company IAI reported on line of deals worth US$ 170 million that subject
has won in the recent period.
In November 2008,
it was reported that subject won 2 contracts for radar systems for UAVs in
total of US$ 40 million.
In the framework of IAI deepening its relationship in India as one of
its main target markets, during 2008, IAI signed cooperation agreements with
Indian TATA Concern for, designed to develop and manufacture defense and
aviation equipment and systems. In March 2009 a huge deal was signed with the
Indian Army in value of US$ 1.4 billion, to develop ground and naval defensive
missile systems. The deal includes also subject's systems.
In late 2010 it was reported that TATA also entered with subject in
another joint venture for radar manufacturing.
In August 2009 it
was reported that subject will serve as a subcontractor to Israeli RAFAEL ADVANCED DEFENSE SYSTEMS in a missile deal to India, valued at US$ 1
billion.
In September 2009
it was reported that subject will sell radar systems to two bodies in South
Korea in total volume of US$ 280 million.
In February 2010
it was reported that subject will sell radar systems to a client in Asia in
volume of US$ 60 million.
In June 2010 it
was reported that subject will sell radar systems to two armies in Asia in
total volume of US$ 33 million. Also in June, subject will sell air defense radars
to a client in Asia for US$ 57 million.
In July 2010 it
was reported that subject will sell communication systems to foreign clients in
volume of US$ 55 million.
In February 2012
it was reported that subject will supply advanced radar systems to an Asian
country for US$ 150 million.
In March 2012 it
was reported subject won 3 contracts in total volume of US$ 76 million for
supply of radar systems and satellite communications systems.
In July 2012
subject signed an agreement with the Italian Government to supply 2 early
detection aircrafts for US$ 750 million (until 2016).
In October 2012 it
was reported that subject will supply the Israeli Navy with radars for its
vessels in volume of several tens NIS millions.
Israel is
considered one of the largest exporters of military and defense equipment in
the world. Israel military and defense industries sales in 2010 rose 3% from
2009 to US$ 9.6 billion, of which US$ 7.2 billion for export (comparing to US$
6.9 billion in 2009). The U.S.A. is the largest market for the military and
defense industries' export, followed by India. Further US$ 1 billion are
exported in broader defense systems.
Sales by the 4
largest local defense industries (IAI, ELBIT, RAFAEL and IMI) comprised some
85% of overall sales.
Good for trade
engagements.
Note: Since the beginning of 2012 Israel Post
started using a new area code method of 7 digits (the old method of 5 digits
will still be valid till end of January 2013).
FOREIGN EXCHANGE RATES
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Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.60.07 |
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|
1 |
Rs.89.91 |
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Euro |
1 |
Rs.77.43 |
INFORMATION DETAILS
|
Report
Prepared by : |
PRL |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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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 |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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-- |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.