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Report Date : |
22.11.2014 |
IDENTIFICATION DETAILS
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Name : |
RAFAEL ADVANCED DEFENSE SYSTEMS LTD. |
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Formerly Known As : |
RAFAEL - ARMAMENT
DEVELOPMENT AUTHORITY LTD. |
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Registered Office : |
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Country : |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
01.01.1995 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Developers, designers,
manufacturers, marketers and exporters of wide range of high-tech defense
systems for air, land, sea and space applications |
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No. of Employees |
7169 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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Payment Behaviour : |
No complaints |
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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 31, 2014
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Country Name |
Previous Rating (31.12.2013) |
Current Rating (31.03.2014) |
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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 Risk |
A2 |
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Moderate Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderate High Risk |
C1 |
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High Risk |
C2 |
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Very High Risk |
D |
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Source
: CIA |
RAFAEL ADVANCED
DEFENSE SYSTEMS LTD.
Telephone 972 4 879 44 44; 4
879 47 14
Fax 972 4 879 46 81;
4 879 46 53/ 7
Email: intl-mkt@rafael.co.il
P.O. Box 2250
HAIFA 3102102 ISRAEL
A government-owned
private limited company, registered as
per file No. 52-004218-5 on the
01.01.1995. Until December 2001 RAFAEL, originally established in 1948,
operated as a department of the Ministry of Defense, Government of Israel.
Since the 01.01.2002
subject turned into a state-owned government company, taking over all activities
of the RAFAEL Authority (see CHARACTER for more).
Originally registered
under the name RAFAEL - ARMAMENT DEVELOPMENT AUTHORITY LTD., which changed to
the present name on the 24.09.2007.
Authorized share capital
of NIS 1,000,000,000.00, divided into:-
10,000,000 ordinary
shares of NIS 100.00 each, of which 5,798,311 shares amounting to NIS
579,831,100.00 were issued.
Subject is fully owned
by the State of Israel, through the Ministry of Defense (Minister in charge
Moshe Ya'alon).
1. Itzhak Gat, Chairman (Brig. General,
Ret.),
2. Ms. Regina Unger,
3. Ra'anan Elran,
4. Ehud Gindes,
5. Ms. Zvia Gross,
6. Zach Fishbain,
7. Ms. Sara Friesch.
Note: Ilan Biran
ceased to serve as subject's Chaimen in June 2013.
Yedidia Ya'ari (Major
General, Ret.)
Developers, designers,
manufacturers, marketers and exporters of wide range of high-tech defense
systems for air, land, sea and space applications.
Marketing is carried
out through foreign branches, Israel’s embassies (special delegates), etc.
In 2013, 55.8% of
sales were for export.
Activities are divided
into the following divisions:
1. Missiles and Cyber
Warfare Division, handling air/air missiles, air/surface missiles, air
defense and electro optical systems (flagship system is "Kipat
Barzel" (Iron Dome) missile and rocket interceptor system), development of
IP secured infrastructure, etc., as well as intelligence and electronic warfare
systems, communications systems, cellular communications, simulators,
information technologies, electro-magnetic, law enforcement products line (i.e.
police mobile computing, computerized traffic law enforcement systems, etc.).
2. Armament and
Defense Division, handling armor products (reactive armor), passive armor,
ceramic armor), ballistics and explosives, pulsed power and high power
electro-magnetic, etc., as well as ground and sea weapon systems.
3. Propulsion and
Technology Division, handling propulsion systems, pyrotechnic devices,
warheads, fusing devices, expendable naval decoys, as well as urban weapon
systems.
Also, directly and via
subsidiaries, handling:
Combat vehicle
upgrades and navel systems
Navigating and attack
system for fighter planes
Remote Control Weapon
Stations (RCWS)
Micro-satellites
(jointly with the ISRAEL AEROSPACE INDUSTRIES).
Amongst local
suppliers: SANMINA-SCI SYSTEMS TEL AVIV, EL-FAR ELECTRONICS, P.L.R. SYSTEMS, G.M. CASES, NICE SYSTEMS, NEW
TECHNOLOGY R.K., B.T.I QUALITY METAL CENTER, GUMI TEL AVIV, VERED EROSIA,
WIETEC, DGS LASER SAFETY, ELI HAJAJ, BQR RELIABILITY ENGINEERING, B.G.
TECHNICAL SUPPORT, NEPCON MANUFACTURING TECH., GLOBUS TECHNICAL EQUIPMENT, ELMO
MOTION CONTROL, POLYURETHANE, ARAN RESEARCH, ELI SEVI GENERATORS, A. HUBER
& SONS, SEGEN TECHNOLOGIES, AHARON YOSEF - PACKAGING INDS., K.B.I. LAHAT
TECHNOLOGIES, LEWENSTEIN WOLFSON AGENCIES, R.C.M., GIGALINX, HAIM YUDASHKIN,
etc.
Main client is
Ministry of Defense (IDF) (40.6% of sales in 2013).
Among other clients
are defense forces worldwide, including US Army & Navy, The Polish Defense
Ministry/ WZM, Dutch Air-Force.
Subject maintains
strong cooperation with RAYTHEON COMPANY of the U.S.A.
Operating from
corporate headquarters premises and plants in the David Center (“Machon
David”), Kiryat Bialik (near Haifa), from the Missile Division facility in
Leshem Industrial Park, Misgav (in the Upper Galilee) and the Shadma Plant in
the Negev. Also operating from a marketing office in Givatayim.
Also operate from
branches in Washington and New York, U.S.A., Seoul (Korea), Rio De Janeiro
(Brazil), Canberra (Australia), New Delhi (India), London (UK) and Madrid
(Spain).
Having 7,169 employees
in RAFAEL Group (had 6,889 employees in 2012).
Consolidated B/S shows:
NIS (thousands)
31.12.2012 31.12.2013
ASSETS
Current assets
Cash & cash equivalents 1,794,601 1,788,155
Short term investments 1,299,624 711,787
Customers 1,241,600 1,290,660
Other debtors and income 1,212,830 1.240.448
Inventories 857,617 807,056
6,406,272 5,838,106
Investments & long term debentures 816,811 941,150
Fixed assets, net 1,466,277 1,524,781
Other non-current assets 189,337 222,695
8,878,697 8,526,732
======== ========
LIABILITIES
Current liabilities 4,393,419 4,524,883
Long term liabilities 1,765,301 1,480,363
Equity 2,719,977 2,521,486
8,878,697 8,526,732
======== ========
Consolidated backlog
orders as of 31.12.2013 were NIS 15.15 billion, 64% of which for export.
During 2005 subject
raised NIS 350 million in a private bonds issue for institutional bodies.
In March 2012 subject
raised NIS 500 million in a private bonds issue (rated AAA) for institutional
bodies.
In 2013, NIS 528
million was invested in R&D (NIS 491 in 2012, NIS 499.5 in 2011). 2014
R&D budget NIS 597 million.
In June 2012 subject
transferred the Ministry of Finance NIS 316 in dividends for its 2010 profits. During
2013 subject transferred the Ministry of Finance NIS 430 in dividends.
There are 18 charges
for unlimited amounts registered on the company’s assets, in favor of local
banks and a foreign bank (last charge placed April 2013).
Consolidated Statement of Income
NIS (thousands)
Year ended 31.12
2011 2012 2013
Revenues
Local Ministry of
Defense 2,544,757 3,009,506 3,098,398
Other local clients 306,927 214,013 249,651
Overseas 4,228,494 3,620,087 4,041,840
7,080,178 6,843,606 7,389,889
Gross profit 1,532,350 1,559,560 1,479,620
Operating profit 437,860 390,440 320,116
Profit before taxes on income 461,468 553,601 443,981
Net profit 396,636 569,035 365,651
======== ======== ========
Among subsidiaries
(main ones):
SEMI-C
R.F.D.L. LTD., 100%,
holding company.
OPGAL LTD., 49.99%,
developers, manufacturers of electro-optic systems,
RAFAEL USA INC. (RUSA), 100%, USA, a holding and marketing company,
GAL-EL (MMIC), 50%, co-owned by subject and ELTA.
R.D.C. RAFAEL
DEVELOPMENT CO. LTD., 49.9% (a joint venture with ELRON ELECTRONIC), an
incubator, business development and a holding company, for civilian
commercializing of developments by subject, for hi-tech companies in a wide
range of disciplines - from medical devices to telecommunications and
semiconductors, and many others. Holds shares in several companies.
ERCAS B.V., 100%, the
Netherlands, fully owns DYNAMIT NOBEL DEFENCE (DND), of Germany manufacturers
of weapon systems, and PAP of Spain.
R-JET, 10%,
BECKER TURBO SYSTEMS
ENGINEERING 2005 LTD., 50%, development of tiny jet engines.
SMART SYSTEMS PTE
LTD., 50%,
RAFAEL FAR EAST PTE
LTD. (RFE), 100%, a holding company.
VISIONMAP, 50%, a
stratup in the digital photography field.
MPREST SYSTEMS (2003)
LTD., 50%, developers of control and radar software.
SHAFIR PRODUCTION
SYSTEMS LTD., 49%, manufacturers, exporters and marketers of custom-made
automatic computerized machinery and robots.
ACCUBEAT LTD., 50%,
Developers, manufacturers, marketers and exporters of very high precision
oscillators and clocks, based on the rubidium atom.
CONTROP PRECISION
TECHNOLOGIES LTD., 50%, developers, manufacturers, marketers and
exporters of electro-optics and control systems.
RAFALATINO, South
American marketing arm, holds 40% in Brazilian company.
Bank Hapoalim Ltd., Kikar Paris Branch (No. 736), Haifa, account No. 222202
(and other accounts as well).
Israel Discount Bank Ltd., Main Branch (No. 070), Haifa, account No. 40045.
Mizrahi Tefahot Bank Ltd., Haifa Business Branch (No. 070), Haifa, account
No. 147538.
A check with the Central Banks’ database did not reveal any negative
information regarding subject’s a/m accounts.
Also known to all local banks.
Nothing unfavorable
learned.
Subject is veteran and
one of the world's leading companies in design, development, production and
delivery of a wide range of high-tech defense systems. Its know-how is embedded
in almost all Israel Defense Forces (IDF) systems in operation today. It has
been developing break-through military technologies and systems, such as
"Kipat Barzel" which was developed (jointly with local company ELTA)
in less than 3 years and became operational during 2011, designed for
protecting population from short-range rockets. Current conflict with the Gaza
Strip has shown a ~90% success for "Kipat Barzel", unprecedented in
any parameter.
In the prestigious American
“Defense News” magazine 100 leading defense industry corporations in the
world published in July 2013 it was ranked
52nd.
Subject is ongoing a
structural re-organization. According to a report from July 2013, subject is
establishing a new Ground Division which will assume all ground (and some
naval) weapon systems, an R&D Division, and An Aerial And Intelligence
Administration.
Subject is certified
for AS9100, ISO14001, ISO 18001, ISO900: 2008 and others.
In June 2006, it was
reported that subject will supply the Czech Army with advanced combat stations
for US$ 120 million (6 years deal). The deal was won jointly with an Austrian
firm (a subsidiary of GENERAL DYNAMICS), which is the main contractor. In May
2008 it was reported that the deal has been frozen due to disagreements between
GD and the Czech Government. Subject reportedly delayed payments to some
subcontractors. Later it was reported that the deal will probably come through
eventually.
In July 2006, it was
reported that subject will supply the US Army in Iraq with amour vehicles
protection systems for US$ 55 million.
Subject supplied the
British Air Force navigation systems in value of US$ 103 million, according to
reports from August 2006.
In July 2007 Israeli
MoD signed a contract with subject for supply of 100 anti-rockets monitoring
defense systems, in a project volume of NIS 300 million.
In February 2007, it
was reported that subject, jointly with PVE of the USA, will provide the US
Marines with amour vehicles in a deal value of US$ 37 million.
In June 2007, there
were several reports on new deals, including winning a tender of US$ 425
million anti-tanks supply for Spanish combat helicopters.
Another report was
concerning major significant deals with the Indian Ministry of Defense in total
value of US$ 4 billion, for air defense systems by subject and other Israeli
military systems manufacturers. In that aspect, there were reports on
corruption accusations involving subject, which came from Indian MoD officials,
but proved false. In September 2008 it was reported that the Indian Defense
Cabinet approved the deals. In this framework subject was awarded a US$ 270
million contract for missiles systems, followed by a
In December 2007, it
was reported that subject will upgrade attack and navigation systems
"Lightning" systems) in the German Air-Force aircraft
"EuroFighter", in a deal value of US$ 25 million, similar to a
previous order.
This deal also
continuing a wave of recent deals: selling naval arms systems to the U.S. Navy
(US$ 36 million deal jointly with BAE, subject's part is US$ 25 million), and
other deals to the American Army, including a U.S. ARMY tender won in September
2007, for distant doors blasting systems in value of US$ 52 million. This
system won the US Army Development Award.
A business dispute erupted between ELRON and subject regarding their joint venture R.D.C. and the rights for using its technology in the civilian markets. In December 2007, the parties reached an agreement settling the dispute and amending their initial agreement. Pursuant to the Addendum, RDC’s rights to commercialize certain technologies of subject will continue without time restrictions.
In February 2008 it
was reported that subject will supply Singaporean Air Force weapon system for
several hundred million US$.
In August 2008 it was
reported that subject will supply armament to the US Army for US$ 16 million.
In April 2009 it was
reported that subject won an US Army tender in volume of US$ 20 million to
provide defensive for armored personnel carriers. Subject is a sub-contractor for GENERAL DYNAMICS in the
project, where the two already cooperate in similar project in volume of US$
120 million for armored vehicles protection in Afghanistan and Iraq.
Reportedly, during
2009 subject sold anti tanks missiles to several European countries in total
value of US$ 400 million.
In November 2010
subject acquired 49% SHAFIR PRODUCTION SYSTEMS, for NIS 28 million.
In January
During 2011, subject
acquires 50% of ACCUBEAT. (April, price not forthcoming) and CONTROP PRECISION
TECHNOLOGIES (July, for a reported sum of NIS 150 million – NIS 175 million).
Also subject's subsidiary ERCAS B.V. acquired PAP of Spain, for NIS 9.2
million.
In September 2011 it
was reported that subject will supply missiles to South Korea in volume of US$
43 million.
In April 2012 it was
reported that subject is acquiring 40% of Brazilian company GESPI (via
RAFALATINO established during 2012), providing system maintenance services,
paying NIS 72 million. Subject has an option to acquire further 40% for the
same price.
In the end of 2013
subject increased its holdings in VISIONMAP to 50% (from 24%), according to
VISIONMAP value of NIS 150 million.
Israel is considered one of the largest exporters of military and defense equipment in the world. Asia is the largest geographical market for Israeli export, while the U.S.A. is the largest country market for the military and defense industries' export.
Export level fell significantly in 2011 due to the unfavorable global economic circumstances, however climbed back by 20% in 2012 to US$ 7.4 billion.
Sales by the 4 largest local defense industries (subject, ELBIT, IAI, and IMI) comprise some 85% of overall sales.
Good for trade engagements and for all credits.
Note: Since February 2013 Israel Post has started using a new area code method of 7 digits (the old method of 5 digits is no longer valid).
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.61.85 |
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1 |
Rs.97.01 |
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Euro |
1 |
Rs.77.62 |
INFORMATION DETAILS
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Analysis Done by
: |
DIV |
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Report Prepared
by : |
NIT |
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 |
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41-55 |
Ba |
Overall
operation is considered normal. Capable to meet normal commitments. |
Satisfactory |
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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 |
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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.