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Report Date : |
24.10.2013 |
IDENTIFICATION DETAILS
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Name : |
ELBIT
SYSTEMS ELECTRO-OPTICS ELOP LTD. |
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Registered Office : |
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Country : |
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Financials (as on) : |
30.06.2013 |
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Date of Incorporation : |
22.12.1999 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Developers, manufacturers,
exporters and marketers of advanced electro-optics systems for the military, homeland
security and civilian markets. |
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No. of Employees : |
12,545 |
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 – March 31st, 2013
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Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
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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 |
Source
: CIA
ELBIT SYSTEMS
ELECTRO-OPTICS ELOP LTD.
Telephone 972 8 938 62 11
Fax 972 8 938 62 37; 938 64 44
P.O.
Box 1165
5
Hamada Street
Advanced
Technology Park, Kiryat Weizmann
Rehovot
7611101 Israel
A private limited company,
incorparated as per file No. 51-287507-1 on the 22.12.1999.
Subject was incorporated in order to continue all activities of a company under the name EL-OP ELECTRO-OPTICS INDUSTRIES LTD., established in 1947 by the State of Israel, was later privatized and then was merged into subject's parent ELBIT SYSTEMS LTD. on the 01.05.2000.
Originally registered under the name MERGERS 1999 LTD.,
which changed to EL-OP ELECTRO-OPTICS INDUSTRIES
LTD. on the 29.06.2000, which changed to the present name on 10.05.2005.
Authorized share capital NIS
15,000.00, divided into -
15,000 ordinary shares of NIS
1.00 each,
of which 1,350 shares
amounting to NIS 1,350.00 were issued.
Subject is fully owned by ELBIT SYSTEMS LTD., a public limited company, whose shares are traded on the Tel Aviv Stock Exchange and Nasdaq Stock Exchange (Symbol: ESLT), controlled (46.2%) by FEDERMAN ENTERPRISES LTD., owned by Federmann Family, chiefly by Michael Federmann.
1. Bezhalel (Butzi) Machlis, President and General Manager of ELBIT SYSTEMS,
2. Joseph Gaspar, CFO of ELBIT SYSTEMS,
3. Itzhak Dvir, COO of ELBIT SYSTEMS,
4. David Bloch Tamin.
Adi Dar.
Developers, manufacturers,
exporters and marketers of advanced electro-optics systems for the military,
homeland security and civilian markets.
Main business areas include
armored vehicle upgrades and systems, remote sensing, thermal imaging, lasers,
displays, optoelectronic components and materials, and electro optical counter
measures.
Over 75% of sales are for
export.
Among subject clients are the
Israeli Defense Force (via Israeli Ministry of Defense -MoD), Israel Space
Agency, USMC, LOCKHEED MARTIN, as well as Armies and Defense Ministries
worldwide.
Among local suppliers: SHVAV
– MAD, K.B.Y. LAHAT TECHNOLOGIES, K&K ANTISTATIC, LEWENSTEIN WOLFSON
AGENCIES, YAIL NOA, R.O.SH. ELECTROPTICS C
Operating from owned premises
(offices and plant), on an area of 65,000 sq. meters in 5 Hamada Street,
Advanced Technology Park, Kiryat Weizmann, Rehovot, and from ELBIT SYSTEMS
corporate headquarters in Science Industry Center, Hof Carmel, Haifa.
Having some 2,000 employees. Having 12,134 employees serving ELBIT SYSTEMS Group (had 12,545 employees in the end of 2011).
Subject is an "Approved Enterprise" and as such
enjoys tax benefits and State incentives. In March 2002 and May 2003 the Israeli
Investment Center (IIC) approved US$ 10.7 million and US$ 13 million investment
plans (respectively) for the expansion of subject's plant. In April 2006 the Chief Scientist Office approved
grants for development project's by subject in sum of NIS 7.3 million (for 6
projects). Subject also enjoys development grants from Israeli MoD.
ELBIT SYSTEMS LTD's current market value US$ 2,286 million.
In June 2010 ELBIT raises of NIS 1.1 billion in bonds issuance on TASE.
In March 2012 ELBIT raised NIS 831.1 million issuing bonds on TASE.
In May 2012 ELBIT raised NIS 92.3 million issuing bonds in a private placement to Israeli institutional investors.
There are 9 charges for
unlimited amounts registered on the company's assets, in favor of local banks and a leasing company.
Financial data is included in the consolidated B/S of
parent company, ELBIT SYSTEMS LTD., which shows:
US$ (thousands)
ASSETS 30.06.2013 31.12.2012
Current assets:
Cash and cash equivalents 134,678 199,241
Short term bank deposits & marketable securities 68,845 65,555
Trade receivables, net 829,178 688,129
Other receivables and prepaid expenses 147,496 180,103
Inventories, net of
advances 787,332 751,247
1,967,529 1,884,275
Investments and long-term receivables 731,107 709,583
Property, plant and equipment, net 487,124 501,286
Goodwill & intangible assets, net 690,345 715,561
3,876,105 3,810,705
======== ========
LIABILITIES
Current liabilities 1,524,814 1,509,044
Long-term liabilities 1,249,594 1,251,035
Shareholders’ equity 1,101,697 1,050,626
3,876,105 3,810,705
======== ========
ELBIT SYSTEMS LTD.
Consolidated
Statement of Income
US$
(thousands)
Year
ended 31.12
2010 2011 2012
Revenues 2,670,133 2,817,465 2,888,607
Gross profit 797,870 732,014 815,865
Operating income 207,353 115,664 203,050
Profits before taxes on income 199,361 104,004 177,042
Net profit 194,667 90,380 170,487
======== ======== ========
ELBIT SYSTEMS LTD. consolidated first 6 months of 2013 sales were
US$ 1,383.1 million (1% increase compared to the parallel period in 2012),
making a gross profit of US$ 395.86 million, an operating income of
US$ 120.48 million and a net income of US$ 95.075 million.
ELBIT SYSTEMS divides its
total revenues into "revenues by areas of operations".
Revenues by the Electro-Optics Systems field:
2009 revenues were US$ 406
million.
2010 revenues were US$ 369
million.
2011 revenues were US$ 300
million.
2012 revenues were US$ 324
million.
First half of 2013 revenues
were US$ 159.5 million (11.6% up from 2012).
ELBIT SYSTEMS LTD., parent company, which operates as developers, manufacturers, exporters and marketers of defense systems, including the areas of aerospace (the activity you provided), land and naval systems, command, control, communications, computers, intelligence surveillance and reconnaissance ("C4ISR"), unmanned air vehicle (UAV) systems, advanced electro-optics, electro-optic space systems, EW suites, airborne warning systems, ELINT systems, data links and military communications systems and radios.
Other main subsidiaries (100% owned unless otherwise stated):
ELBIT SYSTEMS - CYCLONE LTD., designers, manufacturers, assemblers, exporters and marketers of structural aviation components and parts of the aviation and aerospace field.
ELBIT SECURITY SYSTEMS LTD. (ELSEC, formerly ORTEK), developers, manufacturers, marketers, operating mainly in the fields of homeland security, electro-optic surveillance systems, E-fences, border and coastal integrated security systems, aviation security systems, airport security systems, other transportation security systems and strategic perimeter sites security.
ELBIT SYSTEMS LAND AND C4I LTD., land-based systems and C4I solutions.
SHIRON SATELLITE COMMUNICATIONS (1996) LTD., developers and manufacturers of broadband satellite communications services.
TELEFUNKEN RADIO COMMUNICATIONS SYSTEMS GMBH (Telefunken RACOMS), 100%, Germany, military and civilian communications projects in Germany and internationally
KINETICS LTD., 100%, development and production of systems and components for combat vehicles.
OPGAL OPTRONIC INDUSTRIES LTD., 50.1%, thermal imaging systems for commercial applications.
ELBIT SYSTEMS EW AND SIGINT – ELISRA LTD. (formerly ELISRA ELECTRONIC SYSTEMS LTD.), developers and manufactures of equipment and systems for air, naval and ground military forces: Electronic warfare (EW), SIGINT (including ELINT and COMINT) systems, Microwave components. Also owns: TADIRAN ELECTRONIC SYSTEMS LTD., offers a full range of integrated C4I and EW solutions, IT based, for military and civilian applications; TADIRAN SPECTRALINK LTD., supplier of advanced wireless communications products for manned and unmanned aircraft, guided weapons and space platforms, as well as unique Search and Rescue systems.
PEARLS OF WISDOM ADVANCED TECNOLOGIES LTD., 50%.
SOLTAM SYSTEMS LTD., artillery and mortar systems.
I.T.L OPTRONICS LTD., holds 55% in FRASER-VOLPE LLC, USA,
SEMI C
SAYMAR LTD.
ELBIT SYSTEMS OF AMERICA LLC, U.S.A., serves as the base for the Group’s activities in the US, mainly in the area of development; production and maintenance of advanced defense products and systems. Fully owns (main holdings): EFW INC. (FORTWORTH Operations), KOLLSMAN INC. (MERRIMACK Operations); INTERNATIONAL ENTERPRISES INC.; INNOVATIVE CONCEPTS INC. (McLEAN Operations); M7 AEROSPACE LP; REAL TIM LABORATORIES LLC. Also holds 50% in the following: VISION SYSTEMS INTERNATIONAL LLC (VSI), USA, helmet mounted systems primarily for fighter aircrafts; UAS DYNAMICS LLC.
ELBIT SYSTEMS OF KOREA LTD., Korea
HALBIT AVIONICS PRIVATE LIMITED, 26%, India
FERRANTI TECHNOLOGIES (GROUP) LIMITED, UK
UAV TACTICAL SYSTEMS LTD. (“U-TacS”), 51%, U.K
ELBIT SYSTEMS S.A. (ELBIT SYSTEME), Romania
AEL SISTEMAS S.A, 75%, Brazil, engineering, manufacturing and logistic support activities for defense and commercial applications, owns 49% in HARPIA SISTEMAS S.A., Brazil
ARES AEROSPACIAL E DEFENCE S.A, Brazil
ELBIT SYSTEMS OF AUSTRALIA PTY LTD., Australia.
And many other companies in FEDERMANN Group.
Subject is known to all local
banks, working with central branches.
Working mainly with:
Bank Hapoalim Ltd., Central Business Branch (No. 600), Tel Aviv.
Bank Leumi Le’Israel Ltd., Tel Aviv Central Branch (No. 800), Tel Aviv.
Subject and parent
ELBIT SYSTEMS are involved (as a defendants) in legal claims regarding IMAGESAT
INTERNATIONAL, ELBIT’s 14% subsidiary, by IMAGESAT minority shareholders, regarding
performance and operation of the company (satellite services) during the recent
years in which IMAGESAT allegedly turned down contracts due to political
motives, claiming damages of hundreds US$ millions. In November 2009 the Court Appeals dismissed
the latest claim (previous claims were also turned down), however the
plaintiffs may appeal to the US Supreme Court. A motion for class-action (for
US$ 100 million) was also filed in Israel. ELBIT believes that these claims are
baseless.
Apart from that, nothing unfavorable learned. Matter is pending.
Due to the deterioration of the relations between the Israeli Government and the Turkish Government, the Israeli Government prohibited ELBIT to renew its export license of an aerial photography system to Turkey (ELBIT's part valued at
US$ 87 million). In November 2012, ELBIT and subject filed a lawsuit against the Government of Israel.
Subject and ELBIT SYSTEMS are
world leading companies in their fields.
In the prestigious American “Defense News” magazine 100 leading defense industry corporations in the world published in June 2010 ELBIT was ranked 28th (ranked 32nd in 2009).
Michael Federmann is well-known respectful businessman and holds several honorary titles (such as Honorary Consul of Ivory Coast in Israel) and a key position in the local tourism and business sectors. FEDERMANN ENTERPRISES Group control (among others) local DAN HOTELS five-star hotel chain.
In July 2000 subject, together with the ISRAELI AEROSPACE INDUSTRIES (IAI) and RAFAEL signed a contract to supply intelligence satellites of the OFEK series to the Turkish and Singapore armies, and IAI to act as the main contractor in this deal, whereas subject was in charge of supplying the satellites and photographic system. Scope of the deal with Singapore was estimated at US$ 1 billion, and with Turkey at US$ 200 million.
In 2006 subject was awarded several contracts valued at a total of US$50 million to supply hand-held Thermal Imaging systems to the Canadian and Israeli armed forces as well as for additional customers worldwide; awarded a contract in the amount of US$130 million to develop and manufacture electronic land systems for a foreign customer.
In 2007 ELBIT signed a contract to supply unmanned turrets
and electro-optic systems for the Bel
In June 2007 subject and ELETTRONICA S.p.A. have agreed to cooperate and complete the joint development of advanced DIRCM (Direct Infra-Red Counter-Measures) systems intended to protect helicopters and wide-bodied aircraft from low altitude attack by shoulder-mounted heat-seeking missiles.
In July 2007 subject has been awarded a US$37 million contract by a foreign customer to supply electro-optical (EO) payloads for attack and utility helicopters. The multi-year project also includes logistics support; the overall project has future potential valued estimated at more than US$100 million.
In May 2008 subject won a US$ 87 million contract to supply thermal imaging systems to an Asian country. This comes after winning another contract in volume of US$ 40 million of similar systems to defense forces (client unknown).
In June 2009 ELBIT SYSTEMS announced it will supply the Israeli Ministry of Transportation with commercial multi-spectral infrared countermeasure system to defend civil aircrafts, for US$ 76 million.
During 2008 and 2009, ELBIT SYSTEMS continued with its expansion strategy through acquisitions, including Israeli companies: ELECTRO OPTIC RESEARCH AND DEVELOPMENT COMPANY LTD. (EORD), engaged in R&D of acoustic and seismic sensors and systems for defense and security applications; BAR-KAL SYSTEMS ENGINEERING LTD. and AZIMUTH TECHNOLOGIES LTD. (AZIMUTH shares were publicly traded on TASE and in early 2010 merged into the Group after acquiring the remaining shares for US$ 46.5 million).
In January 2010 ELBIT SYSTEMS reported supply laser systems contracts for several clients for a total of US$ 50 million.
In October 2010, ELBIT SYSTEMS announced that its wholly-owned U.S. subsidiary ESA, was awarded a five-year, US$68 million contract from the U.S. Army for Head-Up Display components, including the ELBIT's latest Flat Panel Day and Night Head-Up Display units. This is a follow-on contract to a US$75M contract awarded in September 2005.
In October 2010 ELBIT SYSTEMS completed the full acquisition of all the shares of SOLTAM SYSTEMS LTD. and SAYMAR LTD. that were held by MIKAL LTD., as well an 88% interest in publicly traded ITL OPTRONICS LTD., developers of optronics systems, for US$ 26 million. In February 2011 ELBIT completed the acquisition of the remaining 12% of ITL in a tender offer for the shares held by the public. In January 2012 ITL's activities were merged into subject's, and as a result 10 employees were redundant.
In April 2011 ELBIT SYSTEM Group won a US$ 70 million contract for U.K Royal Army Air Force (UAVs project), where subject's systems are included. In May it was reported on another US$ 20 million contract subject won for an Asian client.
In August 2011 subject was awarded contracts by several customers in Asia to supply many dozens of observation systems for maritime patrol aircraft, vessels and observation towers, in total value of US$20 million, and US$ 15 million by ELETTRONICA of Italy.
In October 2011 ELBIT SYSTEM won a continuing contract for maintenance services to the US Army, in volume of US$ 23 million, where subject is the supplier for night vision systems for helicopters pilots' helmets for 5 years.
In December 2012 it was reported that subject will develop a camera for an Italian satellite in volume of several tens US$ millions.
In October 2013 ELBIT reported that subject was awarded a follow-on contract to
supply electro-optical systems to an Asia-Pacific Air Force to be installed onboard Helicopters, in volume of US$ 33 million.
In July 2013 it was reported that ELBIT launched its technological incubator in Beer Sheva (for startup companies operating in the ELBIT Group's fields), investing some US$ 12 million in over 20 companies.
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), and further US$ 1 billion are exported in broader defense systems. The U.S.A. is the largest market for the military and defense industries' export, followed by India.
Export level fell significantly in 2011 due to the unfavorable global economic circumstances, however climbed back by 20% in 2012 to circa US$ 7 billion.
Sales by the 4 largest local defense industries (ELBIT, IAI, RAFAEL and IMI) comprise some 85% of overall sales.
Good for trade engagements.
Maximum unsecured credit recommended up to several US$ million.
FOREIGN EXCHANGE RATES
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Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.53 |
|
|
1 |
Rs.99.75 |
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Euro |
1 |
Rs.84.75 |
INFORMATION DETAILS
|
Report
Prepared by : |
NIS |
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 |
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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.