MIRA INFORM REPORT

Report Date :

23.01.2014

IDENTIFICATION DETAILS

Name :	LABORATORIOS SAVAL S.A.

Registered Office :	Presidente Eduardo Frei Montalva 4600, Renca, Santiago / XIII Región Metropolitana

Country :	Chile

Date of Incorporation :	01.01.1955

Legal Form :	Joint-Stock Company

Line of Business :	Manufacturer of Pigments, Resins, Plastics, Serums, Perfumes, Paints, Fertilizers, Explosives. Medicines.

No. of Employees :	500

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Status :	Moderate
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 – September 30, 2013

Country Name

Previous Rating

(30.06.2013)

Current Rating

(30.09.2013)

Chile

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 approximately one-third of GDP, with commodities making up some three-quarters of total exports. Copper alone provides 19% of government revenue. From 2003 through 2012, real growth averaged almost 5% per year, despite the slight contraction in 2009 that resulted from the global financial crisis. 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 has 22 trade agreements covering 60 countries including agreements with the European Union, Mercosur, China, India, South Korea, and Mexico. Chile has joined the United States and nine other countries in negotiating the Trans-Pacific-Partnership trade agreement. In 2012, foreign direct investment inflows reached $28.2 billion, an increase of 63% over the previous record set in 2011. The Chilean Government has generally followed a countercyclical fiscal policy, accumulating surpluses in sovereign wealth funds during periods of high copper prices and economic growth, and generally allowing deficit spending only during periods of low copper prices and growth. As of 31 December 2012, those sovereign wealth funds - kept mostly outside the country and separate from Central Bank reserves - amounted to more than $20.9 billion. Chile used these funds to finance fiscal stimulus packages during the 2009 economic downturn. In May 2010 Chile signed the OECD Convention, becoming the first South American country to join the OECD.

Source : CIA

IDENTIFICATION

CORRECT COMPANY NAME	LABORATORIOS SAVAL S.A.
TAXPAYER REGISTRATION	RUT 916500009
MAIN ADDRESS	Presidente Eduardo Frei Montalva 4600, Renca
DEPT/PROV/REGION/STATE	Santiago / XIII Región Metropolitana
COUNTRY	CHILE
TELEPHONE	(562) 27073000
CORPORATE E-MAIL	saval@saval.cl ; lab@saval.cl
WEB	www.saval.cl
COMMENTS
The Company Headquarter is indicated in the identification field. Order address: Camino Lo Ruiz 4700 (Galpón 1) 8640000, Renca - Santiago, corresponds to one of the warehouses of the investigated company.

EXECUTIVE SUMMARY

Date of foundation	1955
Capital stock	Ps$.119,384,000.= Pesos
permanent employees	500
Chief Executive	CORVALAN, FERNANDO
Disposition	REPORT PREPARED FROM OUTSIDE SOURCES.
Payments policy	Usually to terms / good
Number of times that this company was required: 3

REPUTATION

Good prestige company

NOTHING AGAINST COMPANY

LEGAL STRUCTURE

LEGAL STATUS	Joint-Stock Company
DATE OF INCORPORATION	01JAN1955
PLACE OF REGISTRY	Santiago
NOTARY OFFICE		DURATION	Indefinite
REGISTRATION	Page 5.201 No.3.019 of Mercantile Register
INITIAL CAPITAL	Ps$.8,500,000.= Pesos
CURRENT PAID-IN CAPITAL	Ps$.119,384,000.= Pesos	LAST CAPITAL INCREASE	16/12/1985
CURRENT EXCHANGE RATE (US$)	Ps$.529.32 per USA Dollar
COMMENTS
By public deed dated 16/12/1985, before notary Patricio Zaldivar Mackenna in Santiago, published in the Official Gazette on 24/12/1985, page No.11, there was a change of bylaws, by which was agreed to divide the company into two, one the sucessor that keeps the legal name (the subject) and a new one that will operate under the name INMOBILIARIA SAVAL S.A. By public deed dated 12/08/2005, before notary María Beatríz Holmgren Kunckeh in Santiago, published in the Official Gazette on 22/08/2005, page No.11, bylaws of the Company were modified in the sense that it will be run by a board composed of seven directors lasting three years in office or who may be reelected indefinitely. The current shareholder structure was not disclosed. We had no access to this information by external sources either.

DIRECTORS - EXECUTIVES – SHAREHOLDERS

FULL NAMES / COMPANY NAME	TITLE	%PART.	SINCE
SAVAL PRADOS, EMILIO	President
CORVALAN, FERNANDO	General Manager
CORTE TRUFFELLO, RICARDO	Commercial Manager
VIAL INFANTE, RAFAEL	Adm.And Finance Manager

WHO IS WHO?

SAVAL PRADOS, EMILIO
TITLE	President
NATIONALITY	Chilean


CORVALAN, FERNANDO
TITLE	General Manager
NATIONALITY	Chilean
BACKGROUND INFORMATION	He was formerly country manager of PFIZER CHILE (2002 - 2009).


CORTE TRUFFELLO, RICARDO
TITLE	Commercial Manager
NATIONALITY	Chilean


VIAL INFANTE, RAFAEL
TITLE	Adm.And Finance Manager
NATIONALITY	Chilean

RELATED COMPANIES TO SUBJECT COMPANY OR TO MAJORITY SHAREHOLDER

COMPANY NAME	COUNTRY	RELATION %
INMOBILIARIA SAVAL S.A.	CHILE		Related

BUSINESS

SIC Classification

2 8 - CHEMICALS, PHARMACEUTICALS INDUSTRY AND ALLIED PRODUCTS. (Manuf. Pigments, Resins, Plastics, Serums, Perfums, Paints, Fertilizers, Explosives. Medicines.)

Main activity

Medicinal products, tablets, capsules, liquid injectables, ophthalmic and dermatological products, among others.

Wholesale 100%.

O P E R A T I O N S

Import

Yes

Country

Argentina, Mexico, Turkey, Argentina, USA, India.

ANNUAL Imports In US$ (CIF)

YEAR	AMOUNT
2013	8,633,212.15
2012	11,426,479.46
2011	9,100,151.85
2010	9,535,842.51
2009	13,852,962.83
2008	8,301,279.93
2007	7,071,011.30
2006	5,972,025.46
2005	5,122,371.08

Export

Yes

COUNTRY

Ecuador, Paraguay, Peru, Ecuador, Bolivia. Dominican Republic, Uruguay and USA.

Annual exports in US$ (FOB)

YEAR	AMOUNT
2013	25,816,001.24
2012	26,396,880.67
2011	24,795,398.35

% Credit SALES / Terms

100%

% Ventas exterior (Paises)

30%

% DOMESTIC PURCHASES

90%

% FOREIGN PURCHASES

10%

SELLING TerritorY

70% National market

EMPLOYEES

500

LOCATION

AREA

18,000 M2

OTHER PREMISES

The heading address corresponds to the Headquarter Building of this Company . Its facilities are located on a main road with heavy traffic. Occupies 23,000 m2 of land and on it various stages of manufacturing and distribution of Saval products are developed . At the Plant develop and produce different dosage forms , having for this purpose two modern buildings . The first, with an area of 14,000 M2, intended for the production of Solid products : tablets, coated tablets, dispersible tablets, capsules, powder for suspension ; Liquid products: syrups , suspensions, oral drops , Semi-Solid Products : Dermal creams and gels , suppositories injectable and ophthalmic products and sterile products . The second building, completely separate from the other, with an area of 2,000 M2, is intended exclusively for the production of solid penicillin drugs : tablets, coated tablets, dispersible tablets, powder for suspension .

Also in an adjacent plot of land, Laboratorios Saval SA has a modern distribution center with a total area of 10,000 M2 for the development of their logistics operations.

Warehouse: Camino Lo Ruiz 4700 (Galpón 1) 8640000, Renca - Santiago.

Comments

The design of its facilities is based on modern guidelines ISPE / FDA / GMP / WHO / ISO 14644 , such as:

- Closed manufacturing processes that ensure no cross-contamination and compliance with GMP standards .

- Efficient design of facilities , according to the conditions imposed by the ISPE for validation of Quality Assurance of products and processes and making possible savings in area and volume , contemplating vertically and horizontally gravity flow of materials.

- Modernization of Production Technologies .

- Environmental Control in the total plant ( HVAC) , using modern equipment and computer systems of last generation.

- Generation and Distribution System for Purified Water (PW ) , Water for Injection ( WFI) and Pure Steam (PS ) .

- Generation and Distribution System for Compressed Air , Nitrogen and other support services .

- Segmentation of the plant according to air quality , according to WHO classification (Grade A, Grade B, Grade C and Grade D).

- Management of all logistics, production and quality through SAP/R3 tool , plus full use of bar code technology and radio frequency ( RF) , which ensures proper storage and distribution of their products.

Sales are oriented to hospitals, pharmacies, clinics and state enterprises , the most important being :

- CENTRAL DEL ABASTECIMIENTO DEL SISTEMA NACIONAL DEL SERVICIO DE SALUD

- FARMACIAS ECONOMICAS DEL SUR SA

- FARMACIAS CRUZ VERDE SA

- SALCOBRAND SA

FINANCIAL INFORMATION

Disposition

REPORT PREPARED FROM OUTSIDE SOURCES.

Interviewee(s)

External sources

Information provided

Despite various efforts made, the officers of the company were reluctant to cooperate, so we developed the report with information obtained from indirect sources (public sources, our own files)

We tried to get balance sheets and / or reference figures but there was no availability of this information in the various sources researched.

SALES

US$ 0.00 ()

FINANCIAL SITUATION

FAIR

Despite not having financial statements available, it is public knowledge that the company operates without problems. It meets its obligations to third parties well. No negative found against this Company during our research.

Property of company comments

Real Estate:

The Company does not have real estate registered to its name.

Vehicles:

Own vehicles for the use of the Company

Equipment and Facilities:

- Packers, computer equipment, equipment, laboratory, and other necessary facilities.

INSURANCE

COMPANY	AGAINST	EXPIRATION
CONSORCIO ALLIANZ DE SEGUROS GENERALES	Annually
BCI SEGUROS SA	Over the facilities	Annually

TRADE REFERENCES, CREDIT BUREAU, LAWSUITS, BANKS

(Confidential Information)

TRADE REFERENCES

Supplier: FARET SA	Tel.: 562 24135000	Country: CHILE
Goods/Services? : Pharmaceutical packs.
Highest credit? : US$ 5,000.=
Client since? : 2000	Terms? : 60 Days	Performance? : Prompt
Supplier: PLÁSTICOS BURGOS SA	Tel.: 562 23919100	Country: CHILE
Goods/Services? : Plastic containers
Highest credit? : Not specified
Client since? : 2000	Terms? : 45 Days	Performance? : Prompt

Note : Other suppliers did not provide information or could not be consulted

Supplier	Country
MERCK SA	CHILE
CRISTALERÍAS DE CHILE SA	CHILE

CREDIT BUREAU COMMENTS

No negative found in the consulted sources.

Comments :

It is not known with which banks the company is currently working. Did not cooperate directly , and it was not possible to obtain this information in the sources consulted.

GENERAL INFORMATION

Explanation about commercial reputation

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.61.92
UK Pound	1	Rs.101.98
Euro	1	Rs.83.93

INFORMATION DETAILS

Report Prepared by :

NNA

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.