MIRA INFORM REPORT

Report Date :

01.03.2013

IDENTIFICATION DETAILS

Name :	MARAZZI GROUP SPA
Formerly Known as:	Marazzi Ceramiche SpA
Registered Office :	Via Virgilio 30, Modena, 41100
Country :	Italy
Financials (as on) :	31.12.2011
Date of Incorporation :	09.11.1946
Com. Reg. No.:	00611410374
Legal Form :	Public Subsidiary
Line of Business :	manufacturer of non-refractory ceramic hearth or wall tiles, mosaic cubes, etc.; and manufacture of non-refractory ceramic flags and paving.
No. of Employees :	1,564

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 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 & address

Marazzi Group SpA

Via Virgilio 30

Modena, 41100

Italy

Tel: 39 (059) 384111

Fax: +39 059 384303

Web: www.marazzi.it

Synthesis

Employees: 1,564

Company Type: Public Subsidiary

Corporate Family: 7 Companies

Ultimate Parent: FINTILES S.P.A.

Incorporation Date: 09-Nov-1946

Financials in: USD (Millions)

Fiscal Year End: 31-Dec-2011

Reporting Currency: Euro

Annual Sales: 432.7

Total Assets: 925.2

Business Description

Marazzi Group SpA is primarily engaged in manufacture of non-refractory ceramic hearth or wall tiles, mosaic cubes, etc.; and manufacture of non-refractory ceramic flags and paving.

Industry

Industry Construction - Supplies and Fixtures

ANZSIC 2006: 2029 - Other Ceramic Product Manufacturing

NACE 2002: 2630 - Manufacture of ceramic tiles and flags

NAICS 2002: 327122 - Ceramic Wall and Floor Tile Manufacturing

UK SIC 2003: 2630 - Manufacture of ceramic tiles and flags

UK SIC 2007: 2331 - Manufacture of ceramic tiles and flags

US SIC 1987: 3253 - Ceramic Wall and Floor Tile

Key Executives

Name	Title
Andrea Sasso	Managing director
Gianni Mattioli	USA Country Manager
Paolo Colonna	Vice president
Filippo Marazzi	Chairman
Fabio Basagni	Member of the board

news

Title	Date
Mohawk to buy Belgian manufacturer Daily Citizen, The (Dalton, GA) (289 Words)	29-Jan-2013
Fitch Rates Mohawk's Proposed Sr. Notes Offering 'BBB-'; Outlook Stable Business Wire (1363 Words)	28-Jan-2013
Fitch Assigns Initial 'BBB-' IDR to Mohawk Industries; Outlook Stable Business Wire (1412 Words)	21-Dec-2012
Mohawk buying tile maker for $1.5 billion Daily Citizen, The (Dalton, GA) (538 Words)	21-Dec-2012
Mohawk buys Italian tile giant for Christmas Chattanooga Times (TN) (557 Words)	21-Dec-2012

Registered No.(ITA): 00611410374

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 Virgilio 30

Modena, 41100

Italy

Tel: 39 (059) 384111

Fax: +39 059 384303

Web: www.marazzi.it

Sales EUR(mil): 311.2

Assets EUR(mil): 712.7

Employees: 1,564

Fiscal Year End: 31-Dec-2011

Industry: Construction - Supplies and Fixtures

Incorporation Date: 09-Nov-1946

Company Type: Public Subsidiary

Quoted Status: Not Quoted

Previous Name: Marazzi Ceramiche SpA

Registered No.(ITA): 00611410374

Chairman of Kerama Marazzi:

Marco Santandrea

Industry Codes

ANZSIC 2006 Codes:

2029 - Other Ceramic Product Manufacturing

NACE 2002 Codes:

2630 - Manufacture of ceramic tiles and flags

NAICS 2002 Codes:

327122 - Ceramic Wall and Floor Tile Manufacturing

US SIC 1987:

3253 - Ceramic Wall and Floor Tile

UK SIC 2003:

2630 - Manufacture of ceramic tiles and flags

UK SIC 2007:

2331 - Manufacture of ceramic tiles and flags

Business Description

Manufacture of ceramic tiles

More Business Descriptions

Marazzi Group SpA is primarily engaged in manufacture of non-refractory ceramic hearth or wall tiles, mosaic cubes, etc.; and manufacture of non-refractory ceramic flags and paving.

Marazzi Group is the world leader in the design, manufacture and sales of ceramic tiles with a growing presence in sanitary fixtures. In business since 1935, thanks to the introduction of a series of important innovations in terms of processes and products, as well as the acquisition of dozens of technological patents and a series of Italian and foreign companies over the last thirty years, and thanks to agreements with local partners and the opening of new offices and plants abroad, Marazzi Group is currently one of Italy's major multinational industries, the international leader in its own sector in many of the major global markets characterized by the presence of primarily domestic competitors. The Group currently boasts manufacturing plants in Italy, Spain, France, Russia and the United States, many commercial branches and showrooms providing work for over 6,000 employees. From its own production sites the Group exports to the entire world, augmenting Italian expertise with the lifestyles and requirements found in the various local markets. By means of an extensive, highly efficient sales network that reaches over 14,500 independent distributors in over 130 countries, Marazzi Group directly serves both the large-scale distribution sector and specialized dealers as well as major public and private clients. The Group also does business by means of a network its own retail outlets in Russia, the United States and China. Marazzi Group is the leading player in the ceramic sector in many of the most important international markets: number one in Italy, France and Russia, number two in the USA and one of the top contenders in Spain, Germany, Greece and Scandinavia. This widespread and extensive geographic coverage undoubtedly represents a distinctive characteristic of the Group. The Group's selection and range of products runs from Porcelain Stoneware, Crystallized Stoneware and Single-fired tiles to the Glass Mosaics, from special floors to ventilated walls, from marble to granite and the other natural stone products, all the way to the sanitary fixtures and furnishings. Through its Engineering Division, Marazzi Group also provides the planning and construction industries with consultancy and support for the creation of wall and floor covering systems for indoors and outdoors, in particular ventilated walls and raised floors.

Tile and Terrazzo Contractors

Brand/Trade Names
Marazzi Marlit	Enduro Ragno

Financial Data

Financials in:	EUR(mil)
Revenue:	311.2
Assets:	712.7
Current Assets:	321.8
Total Liabilities:	712.7
Net Worth:	235.0
Date of Financial Data:	31-Dec-2011

1 Year Growth

-6.2%

NA

Subsidiaries

Company	Percentage Owned	Country
Marazzi Engineering SRL
Area M SRL
Hatria SpA
Groupe Marazzi France SA		FRANCE
Marazzi Iberia, S.A.	99.33%	SPAIN

Key Corporate Relationships

Bank:	Deutsche Bank Ag, Cassa Risparmio Carpi Ag, Intesa Sanpaolo Ag

Corporate Family	Corporate Structure News:
	Marazzi Group SpA
Marazzi Group SpA Total Corporate Family Members: 7

Company Name	Company Type	Location	Country	Industry	Sales (USD mil)	Employees
FINTILES S.P.A.	Parent
Marazzi Group SpA	Subsidiary	Modena, MO	Italy	Construction - Supplies and Fixtures	432.7	1,539
Groupe Marazzi France SA	Subsidiary	Lyon	France	Construction and Agriculture Machinery	94.7	374
Gres Dartois	Subsidiary	Betschdorf	France	Construction - Supplies and Fixtures	1.2	9
Hatria SpA	Subsidiary	Teramo, Teramo	Italy	Construction - Supplies and Fixtures	32.5	299
Marazzi Engineering SRL	Subsidiary	Sassuolo, Modena	Italy	Construction Services	8.4	14
Area M SRL	Subsidiary	Bologna, Bologna	Italy	Personal Services	2.5	5

Executive report

Board of Directors

Name	Title	Function
Filippo Marazzi	Chairman	Chairman
Biography: Filippo Marazzi Filippo Marazzi, born in Sassuolo in 1949, is Chairman of the Board and President of Marazzi Group, the world leader in the design, manufacture and sales of ceramic tiles, with an increasing presence in other flooring materials and in bathroom furnishings. He assumed this role in 1978 in consequence of the death of his father, Pietro Marazzi. In the early 1980s, he began the Group internationalisation process with the establishment of production facilities in Spain and in the United States by Marazzi Iberia S.A. and American Marazzi Tile Inc. This process has continued throughout the ‘90s by means of joint ventures, cooperative agreements, and acquisitions of important competitors in Spain, France, U.S.A., and Italy too, in a continuous progression of growth. Today Filippo Marazzi is President of a Group that boasts manufacturing plants in Italy, France, Spain, Russia and the United States, over 6,000 employees, and an overall production of over 100 million square meters of ceramic tiles. He is also Chairman of Finceramica, the joint stock company which is the majority shareholder of Fintiles, and of Fintiles, sole shareholder of Marazzi Group. In February 1992, Filippo Marazzi was awarded the first honorary degree in chemistry granted by the Department of Mathematics, Physics, and Natural Sciences of the University of Modena (Italy), for his ""pioneering work in promoting the study and application of avant-garde ceramic materials and for his important scientific contribution to the development of a very important sector in solid-state chemistry"". In June 1995, Filippo Marazzi was given the honorary title of ""Cavaliere del Lavoro"" by the President of the Italian Republic, Oscar Luigi Scalfaro. In 2002, he received the Pico della Mirandola Prize in ""recognition of one who, with passion, conviction and a spirit of self-sacrifice, throughout his business dealings supported an enterprise culture which promoted and consolidated the ‘Made in Italy' label worldwide.
Marco Santandrea	Chairman of Kerama Marazzi	Chairman
Fabio Basagni	Member of the board	Director/Board Member
Social:
Fabio Buttignon	Member of the board	Director/Board Member
Rodolfo Danielli	Member of the board	Director/Board Member
Giovanni Battista Graziosi	Director	Director/Board Member
Gianni Lorenzoni	Member of the board	Director/Board Member
Rosaria Marazzi	Member of the board	Director/Board Member
Silvia Carla Chiara Oteri	Member of the board	Director/Board Member
Enrico Ottolenghi	Member of the board	Director/Board Member
Gian Pietro Severi	Member of the board	Director/Board Member

Executives

Name	Title	Function
Andrea Sasso	Managing director	Managing Director
Biography: Andrea Sasso Andrea Sasso, born in Rome in 1965, is Managing Director of the Marazzi Group S.p.A. Since 1990 in Gruppo Merloni Elettrodomestici/Indesit Company, where he held positions of increasing responsibility, eventually being appointed Chief Operating Officer and Chief Commercial Officer. He then worked as Country Manager Italia for Pirelly Tyre and as CEO of Elica Group form april 2007 to September 2012 and he is Member of the Executive Board of Elica and of iGuzzini Illuminazione. Andrea Sasso holds a degree in Business Administration from Università Politecnica delle Marche (Ancona, Italy) and has completed the International Executive Program at INSEAD (Fontainebleau/Singapore).
Gianni Mattioli	USA Country Manager	Administration Executive
Ettore Rigo	Spain Country Manager	Administration Executive
Marco Santandrea	Chairman of Kerama Marazzi	Administration Executive
Marco Ascari	Executive	Other
Paolo Colonna	Vice president	Other
Andrea Cuoghi	Executive	Other
Matteo Davoli	Executive	Other
Paolo Giuliano Favilla	Vice president	Other
Luca Gatti	Executive	Other
Giovanni Pedroni	Executive	Other
Alessandro Poletto	Executive	Other
Jose Martinez Sanchez-Minguet	Executive	Other
Rachel Lumungsod Sorono	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	477.2	458.5	488.3
Net sales	432.7	439.5	473.9
Other operating income	6.6	17.5	14.2
Raw materials and consumables employed	172.1	116.0	220.7
Other expenses	213.5	175.6	112.7
Total payroll costs	51.0	127.9	125.7
Fixed asset depreciation and amortisation	45.2	29.2	28.6
Other operating costs	6.1	8.1	62.7
Net operating income	-10.8	1.6	-62.1
Total financial income	73.6	23.7	20.6
Total expenses	20.9	18.4	20.0
Profit before tax	41.9	6.9	-61.6
Extraordinary result	-13.8	-23.9	-79.6
Profit after extraordinary items and before tax	28.1	-17.1	-141.2
Total taxation	0.1	2.0	-16.6
Net profit	28.0	-	-
Net loss	-	19.1	124.7

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	305.0	288.3	325.7
Provision for risks	58.6	60.3	84.5
Provision for pensions	16.5	19.7	23.5
Mortgages and loans	325.2	314.8	362.5
Other long-term liabilities	24.2	20.8	23.6
Trade creditors	140.6	152.0	160.1
Bank loans and overdrafts	0.1	24.8	1.4
Other current liabilities	55.1	67.3	64.9
Total current liabilities	195.7	244.1	226.4
Total liabilities (including net worth)	925.2	947.9	1,046.2
Intangibles	28.4	30.1	26.5
Buildings	186.6	191.2	189.9
Total tangible fixed assets	279.9	285.6	281.0
Long-term investments	138.5	181.2	240.8
Total financial assets	184.2	193.1	251.0
Receivables due after 1 year	15.0	36.4	20.1
Loans to associated companies	37.6	-	-
Total non-current assets	507.4	545.3	578.6
Finished goods	120.5	120.7	127.5
Net stocks and work in progress	146.1	142.0	148.6
Trade debtors	93.6	94.3	98.9
Other receivables	156.7	139.5	163.5
Cash and liquid assets	21.4	10.2	39.6
Marketable securities	-	16.7	17.1
Total current assets	417.8	402.7	467.6
Total assets	925.2	947.9	1,046.2

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	2.10	1.60	2.10
Quick ratio	1.40	1.10	1.40
Current liabilities to net worth	0.01%	0.01%	0.01%
Sales per employee	0.20	0.19	0.19
Profit per employee	0.01	-0.01	-0.06
Average wage per employee	0.02	0.06	0.05
Net worth	305.0	288.3	325.7
Number of employees	1,564	1,708	1,778

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.53.77
UK Pound	1	Rs.81.57
Euro	1	Rs.70.68

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.