MIRA INFORM REPORT

Report Date :

06.10.2014

IDENTIFICATION DETAILS

Name :	THYSSENKRUPP ELEVATOR (KOREA) LTD.

Formerly Known As :	DONGYANG HEAVY INDUSTRIES CO., LTD.

Registered Office :	3rd Fl., Seoul Mobile Telecom, 233-3, Mokdongdong-ro, Yangcheon-gu, Seoul, 158-719

Country :	South Korea

Financials (as on) :	30.09.2013

Date of Incorporation :	28.06.1979

Com. Reg. No.:	133-81-23748

Legal Form :	Co., Ltd by shares

Line of Business :	Manufacture of Elevators and Conveyor systems

No. of Employees :	868

RATING & COMMENTS

MIRA’s Rating :

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 1, 2014

Country Name

Previous Rating

(31.03.2014)

Current Rating

(01.06.2014)

South Korea

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

SOUTH KOREA - ECONOMIC OVERVIEW

South Korea over the past four decades has demonstrated incredible growth and global integration to become a high-tech industrialized economy. In the 1960s, GDP per capita was comparable with levels in the poorer countries of Africa and Asia. In 2004, South Korea joined the trillion-dollar club of world economies, and is currently the world's 12th largest economy. Initially, a system of close government and business ties, including directed credit and import restrictions, made this success possible. The government promoted the import of raw materials and technology at the expense of consumer goods, and encouraged savings and investment over consumption. The Asian financial crisis of 1997-98 exposed longstanding weaknesses in South Korea's development model including high debt/equity ratios and massive short-term foreign borrowing. GDP plunged by 6.9% in 1998, and then recovered by 9% in 1999-2000. South Korea adopted numerous economic reforms following the crisis, including greater openness to foreign investment and imports. Growth moderated to about 4% annually between 2003 and 2007. South Korea's export focused economy was hit hard by the 2008 global economic downturn, but quickly rebounded in subsequent years, reaching 6.3% growth in 2010. The US-Korea Free Trade Agreement was ratified by both governments in 2011 and went into effect in March 2012. Throughout 2012 and 2013 the economy experienced sluggish growth because of market slowdowns in the United States, China, and the Eurozone. The administration in 2014 is likely to face the challenge of balancing heavy reliance on exports with developing domestic-oriented sectors, such as services. The South Korean economy's long term challenges include a rapidly aging population, inflexible labor market, dominance of large conglomerates (chaebols), and heavy reliance on exports, which comprise about half of GDP.

Source : CIA

Basic Information

Company Name	THYSSENKRUPP ELEVATOR (KOREA) LTD.
Registered Address	233-3, Mokdongdong-ro, Yangcheon-gu, Seoul, Korea
Building	3rd Fl., Seoul Mobile Telecom
Zip Code	158-719
Tel	+82-2-2610-7777
Fax	+82-2-2610-7700
E-mail	customers@tkde.co.kr
Website	www.thyssenkrupp-elevator.co.kr
Trading Address	3rd Fl., Seoul Mobile Telecom, 233-3, Mokdongdong-ro, Yangcheon-gu, Seoul, Korea (Old Address System : 3rd Fl., Seoul Mobile Telecom, 923-12, Mok 1-dong, Yangcheon-gu, Seoul, Korea)
Tel	+82-2-2610-7777
Fax	+82-2-2610-7700
Other Address-Cheonan Factory	115-24, Sindu-ri, Ipjang-myeon, Seobuk-gu, Cheonan-si, Chungcheongnam-do, Korea
Tel	+82-41-589-4000
Fax	+82-41-589-4200
Other Address-Gangnam Office	12F, 7-23, Sincheon-dong, Songpa-gu, Seoul, 138-240, Korea
Tel	+82-02-413-6723
Fax	+82-02-3413-6728
Other Address-Gangbuk Office	Dongdaemon Building 7F, 330-1, Changsin-dong, Jongno-gu, 110-540, Seoul, Korea
Tel	+82-02-745-2390
Fax	+82-02-745-2395
Other Address-Gangseo Office	Youngbin Building 2F, 546-63, Bupyeong-dong, Bupyeong-gu, Incheon, Korea
Tel	+82-32-330-0830
Fax	+82-32-330-0845
Other Address-Gyeonggi Office	Andong Building 2F, 1023-1, Gwonseon-dong, Gwonseon-gu, Suwon-si, Gyeonggi-do, 441-390, Korea
Tel	+82-31-238-5577
Fax	+82-31-329-8724
Other Address-Daejeon Office	Sentria Officetel 5F, Room No. 1610~1615, Oryu-dong, Jung-gu, Daejeon, 301-120 Korea
Tel	+82-42-525-7241
Fax	+82-42-525-7245
Other Address-Gyeongbuk Office	Beomeo Officetel Kingdom Ⅱ Room No. 1504, 45-4, Beomeo-dong, Suseong-gu, Deagu, 706-010 Korea
Tel	+82-53-742-7033
Fax	+82-53-742-245
Other Address-Gyeongnam Office	Jungang Building 10F, 51, Daechang-dong 1-ga, Jung-gu, Busan, 600-101 Korea
Tel	+82-51-466-1621~4
Fax	+82-51-465-2365
Other Address-Honam Office	Songkang Building 7F, 33-42, Yu-dong, Buk-gu, Gwangju, 500-020 Korea
Tel	+82-51-466-1621~4
Fax	.+82-51-465-2365
Type	Export/Import
Industry	Manufacture of Elevators and Conveyor systems
Main Business	Elevator, Escalator, Moving Sidewalk, Car Lift
Sub Business	Installation of Machinery Equipment for Building
Established (mm/dd/yyyy)	06/28/1979

The Subject owns the premises of Chunan Factory.

Detailed Products

Activity	Detailed Products (UNSPSC)
Sell	Lifts(24101604)
Sell	Elevators(24101601)
Sell	Escalator or walkways(24101626)
Buy	Capacitors(32121500)
Buy	Silicone VMQ and PMQ and PVMQ(13101708)
Buy	Circuit protection devices and accessories(39121600)
Buy	Electrical insulators(39121721)
Buy	Motors(26101600)
Buy	Resistors(32121600)
Buy	Switches and controls and relays and accessories(39121500)
Buy	Inductors(32121702)
Buy	Diodes(32111500)
Buy	Magnetic coils(39121010)
Buy	Integrated circuits(32101600)
Buy	Power supply transformers(39121002)
Buy	Light emitting diodes LEDs(32111503)

CEO’s

Name	Park Yang-Choon
Address	Suite 102-602, 264, Mokdongseo-ro, Yangcheon-gu, Seoul, Korea
Date of Birth	06/26/1958
Title	President & CEO
Sex	Male
Nationality	Korean

Profiles

Capital (KRW)

1,273,220,000

Employees

868

Formation

Co., Ltd by shares

Foreign Direct Investment Corporation by Germany

Bank Details

Korea Exchange Bank-Oyu Dong Branch

Corporate Registered No.

124311-0004898

Business Registered No.

133-81-23748

Permit & Licenses

04/1997 ISO 9001

09/21/2000 ISO 14001

Int’l Trade No.: 301527

Shareholder Position

Name	Shares	%
THYSSENKRUPP ELEVATOR AG	254,644	100.00
TOTAL	254,644	100.00

Company History

06/28/1979 Incorporated as Dongyang Heavy Industries Co., Ltd.

10/01/2003 Acquired Elevator Business Division from DY HOLDINGS CO., LTD., and changed company name to THYSSENKRUPP DONGYANG ELEVATOR CO., LTD.

08/07/2008 Changed company name to the present name

09/29/2008 Acquired WON CORPORATION(161511-0007819)

Management

Job Description	Title	Name	Sex	Nationality	Inauguration Date
President & CEO	Mr.	Park Yang-Choon	Male	Korean	04/06/2012
Director	Mr.	Bochen	Male	German	12/05/2013
Director	Mr.	Ahn Sang-Woo	Male	Korean	10/17/2008
Director	Mr.	Lee Jong-Young	Male	Korean	10/17/2008
Auditor	Mr.	Stephan Alshut	Male	German	08/01/2008
Supervisor of HQ Address	Mr.	Jo Jae-Hyun	Male	German	04/07/2008

Financials

Year / Unit : KRW	Sales	Assets	Net Income
(*)09/2013	353,119,728,406	181,356,861,573	8,249,324,435
(*)09/2012	347,024,885,186	184,482,655,449	5,973,473,544
(*)09/2011	299,116,794,623	165,785,836,937	5,444,136,882
(*)09/2010	311,154,088,577	190,292,057,307	5,180,539,534
09/2009	340,305,634,811	219,307,202,781	-22,493,042,701
09/2008	270,249,787,008	214,203,751,552	-116,256,806,082
09/2007	292,246,289,855	242,468,817,624	-33,927,214,779
09/2006	267,874,760,643	254,000,241,497	-17,265,448,302
09/2005	306,263,337,440	253,989,347,876	5,779,967,994
09/2004	252,256,419,280	262,045,194,339	3,529,450,626

(*)Figures are based on the K-IFRS Accounting System.

Financial Description

Authorized Capital(KRW)	2,000,000,000
Paid-Up Capital(KRW)	1,273,220,000
Total Issued Shares	254,644

Balance Sheet
Unit : Korean Won	As of 09/30/2013	As of 09/30/2012	As of 09/30/2011
Total Assets	181,356,861,573	184,482,655,449	165,785,836,937
Current Assets	143,568,176,284	146,624,051,905	125,641,882,478
Cash & Cash Equivalents	34,138,089,440	2,780,311,272	3,689,556,970
Current Financial Instruments	1,079,591,718	838,509,090	27,884,096,568
Trade Receivables & Other Receivables	93,593,321,797	99,670,461,747	52,533,955,271
Other Current Assets	1,556,908,673	1,249,350,997	2,582,674,506
Inventories	13,093,112,416	17,551,766,722	18,946,998,829
Deferred Income Tax Assets	107,152,240	24,533,652,077	105,740,190
Other Receivables-Construction			18,839,522,205
Short-Term Receivables			565,759,227
Derivatives			493,578,712
Non-Current Assets	37,788,685,289	37,858,603,544	40,143,954,459
Long-Term Trade Receivables & Other Receivables	3,576,679,960	3,121,860,927
Marketable Financial Instruments	2,831,867,917	2,812,720,490	2,812,590,440
Other Non-Current Assets	83,093,560	83,093,560
Tangibles	30,542,489,080	30,208,904,874	31,257,598,667
Intangibles	754,554,772	1,632,023,693	2,600,511,811
Guarantees			2,150,493,980
Long-Term Loans			933,137,880
Other Non-Current Assets			389,621,681
Total Liabilities	126,420,282,529	118,898,440,739	103,916,645,738
Current Liabilities	97,221,616,303	96,799,921,113	82,827,051,048
Trade Payables & Other Payables	52,523,342,360	52,614,826,848	32,376,984,268
Other Payables-Construction	18,666,862,236	16,974,122,363	15,891,517,866
Other Current Liabilities	8,516,739,195	7,269,716,491	1,296,413,131
Short-Term Borrowings	-	7,632,492,464	296,956,886
Derivatives	110,319,666	165,357,227	2,872,810,582
Provisions	17,404,352,846	12,143,405,720	12,467,918,061
Account Payables			3,582,604,676
Accrued Expenses			9,937,458,924
Advance Receipts			3,594,251,574
Deferred Income Tax Credit			510,135,080
Non-Current Liabilities	29,198,666,226	22,098,519,626	21,089,594,690
Confirmed Salaries	29,198,666,226	22,098,519,626	21,089,594,690
Capital Stock	1,273,220,000	1,273,220,000	1,273,220,000
Capital Surplus	46,780,663,910	233,981,980,410	233,981,980,410
Profit Surplus	6,882,695,134	-169,670,985,700	-173,386,009,211
Total Equity	54,936,579,044	65,584,214,710	61,869,191,199
Liab. & Shareholder’s Equity	181,356,861,573	184,482,655,449	165,785,836,937

Income Statement
Unit : Korean Won	As of 09/30/2013	As of 09/30/2012	As of 09/30/2011
Sales	353,119,728,406	347,024,885,186	299,116,794,623
Cost of Sold Goods	301,295,594,546	308,654,282,253	263,358,038,630
Gross Profit	51,824,133,860	38,370,602,933	35,758,755,993
Selling & Admin. Expenses	40,014,637,607	34,586,679,759	-31,861,755,114
Operating Income	11,809,496,253	3,783,923,174	5,073,271,552
Other Income	6,404,202,195	9,432,653,684	1,278,497,441
Other Expenses	11,527,326,896	7,569,418,038	-102,226,768
Finance Income	1,597,722,373	350,903,219	20,942,744,018
Finance Expenses	16,086,920	45,352,895	-19,937,154,228
Income Before Taxes	8,268,007,005	5,952,709,144	6,078,861,342
Income Taxes Expenses	18,682,570	-20,764,400	634,724,460
Net Income	8,249,324,435	5,973,473,544	5,444,136,882

Cash Flows
Unit : Korean Won	As of 09/30/2013	As of 09/30/2012	As of 09/30/2011
Operating Activities Cash Flows	67,644,877,529	-29,455,086,072	23,889,556,957
Cash Flows from Operating	41,710,544,763	-4,948,481,460	23,471,743,183
Interests Received	-16,086,920	455,616,450	1,036,202,752
Interests Paid	1,542,188,019	-45,352,895	-494,104,609
Dividends Received	414,400	414,400	30,868,474
Income Taxes	-	-24,917,282,567	-155,152,843
Income Taxes Received	24,407,817,267
Cash Flows from Investing	-11,597,710,776	21,228,540,702	5,019,659,104
Cash Inflow from Investing		27,459,722,075	101,557,879,122
Cash Outflows for Investing		-6,231,181,373	-96,538,220,018
Cash Flows from Financing	-24,726,213,264	7,335,535,578	-29,931,029,559
Cash Inflows from Financing		7,632,492,464	8,000,000
Cash Outflows from Financing		-296,956,886	-29,939,029,559
Increase/Decrease in Cash	31,320,953,489	-891,009,792	-1,021,813,498
Cash at the Beginning of Year	2,780,311,272	3,689,556,970	4,717,998,625
Cash at the End of Year	34,138,089,440	2,780,311,272	3,689,556,970

Products, Technologies, Services Description

Main Products & Services

As a major elevator company specialized in manufacture, installation and maintenance service of elevators/escalators, the subject has provided about 4,000 units under maintenance in Korea, and Cheonan plant has one of the world's largest elevator factories & one of the tallest Test Tower in the world(157m).

Elevator

Passengers' Elevator

High Rise building elevator

Office building elevator

Apartment elevator

Machine Room Less(MRL) elevator

Freight Elevator

Observation Elevator

Nude Elevator

Hospital Elevator

Car Lift

Escalator

Moving sidewalk

Detailed Products Spec.

Annually 8,000 units

Trade Partners & Competitors

Suppliers

Customers

POSCO ENGINEERING & CONSTRUCTION

SAMSUNG CORPORATION

SAMSUNG EVERLAND

DAEWOO ENGINEERING & CONSTRUCTION

SAMSUNG HEAVY INDUSTRIES

DONGBU ENGINEERING & CONSTRUCTION

WAL MART KOREA

SK ENGINEERING & CONSTRUCTION

Competitors

HYUNDAI ELEVATOR CO., LTD.

SAN 136-1, AMI-RI, BUBAL-EUP, ICHEON-SI, GYEONGGI-DO, KOREA

TEL:+82-31-644-5114 FAX:+82-2-745-4227

MITSUBISHI ELEVATOR KOREA CO., LTD.

9TH FL., KOREA ASSOCIATION OF MACHINERY INDUSTRY ANNEX, 13-31, YEOUIDO-DONG, YEONGDEUNGPO-GU, SEOUL, KOREA

TEL:+82-2-6670-2053 FAX:+82-2-6670-2060

SCHINDLER ELEVATOR CO., LTD.

4DA-401, SIHWA INDUSTRIAL COMPLEX, 657, SEONGGOK-DONG, DANWON-GU, ANSAN-SI, GYEONGGI-DO, KOREA

TEL:+82-31-431-0151 FAX:+82-31-431-0166

Related Parties (Subsidiaries, Joint-Venture & Affiliates)

Affiliates	THYSSENKRUPP ELEVATOR AG
Corporate Ownership	THYSSENKRUPP ELEVATOR AG
Major Shareholders	THYSSENKRUPP ELEVATOR AG
Cooperative Enterprise	-Insured Company SAMSUNG FIRE & MARINE INSURANCE CO., LTD.(110111-0005078)

Sales by Region (Activity & Markets)

The Subject deals with the companies in Germany, India, Indonesia, Japan, Malaysia, Philippines, Singapore, and Middle East and South America.

Court Action

Case No.	Court	Plaintiff(s)/ Creditor(s)/ Applicant(s)	Defendant(s)/ Debtor(s)/ Respondent(s)	Cause	Amount (Million KRW)	Status
			The Subject Company	-	10,055	Proceeding
			The Subject Company & Others(6)	Related to conferring on the bidding	55,048	Proceeding

News Clipping

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.61.75
UK Pound	1	Rs.100.07
Euro	1	Rs.77.95

INFORMATION DETAILS

Analysis Done by :	DIV

Report Prepared by :	NIT

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%)

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.