MIRA INFORM REPORT

Report Date :

27.09.2014

IDENTIFICATION DETAILS

Name :	NESTLE ARGENTINA SA
Registered Office :	Av Del Libertador 1855, Vicente Lopez (1638), Buenos Aires
Country :	Argentina
Date of Incorporation :	16.10.1930
Legal Form :	Sociedad Anonima
Line of Business :	Manufacturing of Food and Beverage products
No. of Employees :	1900

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 1, 2014

Country Name	Previous Rating (31.03.2014)	Current Rating (01.06.2014)
Argentina	B1	B1

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

ARGENTINA - ECONOMIC OVERVIEW

Argentina benefits from rich natural resources, a highly literate population, an export-oriented agricultural sector, and a diversified industrial base. Although one of the world's wealthiest countries 100 years ago, Argentina suffered during most of the 20th century from recurring economic crises, persistent fiscal and current account deficits, high inflation, mounting external debt, and capital flight. A severe depression, growing public and external indebtedness, and an unprecedented bank run culminated in 2001 in the most serious economic, social, and political crisis in the country's turbulent history. Interim President Adolfo RODRIGUEZ SAA declared a default - at the time the largest ever - on the government's foreign debt in December of that year, and abruptly resigned only a few days after taking office. His successor, Eduardo DUHALDE, announced an end to the peso's decade-long 1-to-1 peg to the US dollar in early 2002. The economy bottomed out that year, with real GDP 18% smaller than in 1998 and almost 60% of Argentines under the poverty line. Real GDP rebounded to grow by an average 8.5% annually over the subsequent six years, taking advantage of previously idled industrial capacity and labor, an audacious debt restructuring and reduced debt burden, excellent international financial conditions, and expansionary monetary and fiscal policies. Inflation also increased, however, during the administration of President Nestor KIRCHNER, which responded with price restraints on businesses, as well as export taxes and restraints, and beginning in 2007, with understating inflation data. Cristina FERNANDEZ DE KIRCHNER succeeded her husband as President in late 2007, and the rapid economic growth of previous years began to slow sharply the following year as government policies held back exports and the world economy fell into recession. The economy in 2010 rebounded strongly from the 2009 recession, but has slowed since late 2011 even as the government continued to rely on expansionary fiscal and monetary policies, which have kept inflation in the double digits. The government expanded state intervention in the economy throughout 2012. In May 2012 the Congress approved the nationalization of the oil company YPF from Spain's Repsol. The government expanded formal and informal measures to restrict imports during the year, including a requirement for pre-registration and pre-approval of all imports. In July 2012 the government also further tightened currency controls in an effort to bolster foreign reserves and stem capital flight. During 2013, the government continued with a mix expansionary fiscal and monetary policies and foreign exchange and imports controls to limit the drain in Central Bank foreign reserves, which nevertheless dropped US $12 billion during the year. GDP grew 3% and inflation remained steady at 25%, according to private estimates. In October 2013, the government settled long-standing international arbitral disputes (including with three US firms) dating back to before and following the 2002 Argentine financial crisis. In early 2014, the government embraced a series of more orthodox economic policies. It devalued the peso 20%, substantially tightened monetary and fiscal policies, and took measures to mend ties with the international financial community, including: engaging with the IMF to improve its economic data reporting, reaching a compensation agreement with Repsol for the expropriation of YPF, and presenting a proposal to pay its arrears to the Paris Club.

Source : CIA

LOCATION FACTS

Government	Republic
Currency	100.00 USD = 841.700 ARS
Economic Risk	Medium

STATUTORY

Order:	NESTLE ARGENTINA SA
Address in the order:	Av Del Libertador 1855 Vte Topez Bucnos Airas
Legal Name:	NESTLE ARGENTINA S.A
Trade Name:	NESTLE
CUIT:	30-54676404-0
Date Created:	1930
Date Incorporated:	October 16, 1930
Legal Address:	Av Del Libertador 1855, Vicente Lopez (1638), Buenos Aires, Argentina
Operative Address:	Av Del Libertador 1855, Vicente Lopez (1638), Buenos Aires, Argentina
Telephone:	54 11 4811-9815 / 54 11 4322-9247
Fax:	54 291 4882187
Legal Form:	Sociedad Anonima
Email:	info@nestle.com.ar
Registered in:	DIV. REC. GRANDES CONTRIB. NACIONALES HIPOLITO YRIGOYEN N°370 PLANTA BAJA 1086 CIUDAD AUTONOMA BUENOS AIRES
Website:	www.nestle.com.ar
Manager:	Félix Allemann
Staff:	1900
Activity:	Manufacturing of Food and Beverage products
SIC Codes:	751
NAICS Codes:	311111

BANKS

	According to Argentinian Central Bank, the company maintains credit lines with the following banks:
BANK	AMOUNT IN AR$
INDUSTRIAL AND COMMERCIAL BANK OF CHINA	243 554,3
HSBC BANK ARGENTINA S.A.	122 133,0
CITIBANK N.A.	91 918,2
BBVA BANCO FRANCES S.A.	83 384,0
BANCO DE LA CIUDAD DE BUENOS AIRES	50 670,7
BANCO DE LA NACION ARGENTINA	43 638,0
BANCO MARIVA S.A.	612,2
AMERICAN EXPRESS ARGENTINA S.A.	181,7
MULTIFINANZAS COMPAÑIA FINANCIERA S.A.	23,4
BANCO SANTANDER RIO S.A.	1,1
BANCO ITAU ARGENTINA S.A.	1
	According to the classification of banking relations of Argentina, the company operates with the following level: 1.
	This is the highest classification in the system. It means that the company/person is fulfilling correctly its current Credit obligations. This is therefore positive information that will enable the granting of any line of credit.

REJECTED CHECKS

NUMBER	73933760
REJECTED DATE	May 26, 2014
AMOUNT	AR$ 41 500,0
REASON	Normal defects
DATE OF PAYMENT	Non-registered

HISTORY

	The NESTLÉ products arrived in Argentina in the late nineteenth century, through imports, especially of milk food, condensed milk, but is the May 5, 1930 when the company was formally established in the country.
MAIN ACTIVITY
	The company manufactures chocolate milks, milk candies, milk cream, fused cheeses, Mozzarella, Blue, Danbo, Provolone, and Regianito cream ice creams. The company also includes beverages (Nestea, Taster's Choice), milk products (Carnation), pet food (Alpo, Friskies), ice-cream novelties, juices (Libby's), and prepared foods (Stouffer's, Ortega).
Products/Services:	Water Infant Food Pet Food Beverages Cafes Breakfast Cereals Chocolates and Sweets Culinary Cream Dairy
Trademarks:	NESTLÉ PUREZA VITAL NESTLÉ PUREZA VITAL AWAFRUT ECO DE LOS ANDES GLACIAR Cereales Infantiles NESTUM NAN PRO 3 PRO PLAN EXCELLENT DOG CHOW DOG CHOW Biscuits DOGUI DOG MENU Polvo Chocolatado NESQUIK Polvo Chocolatado NESCAU NESCAFÉ ESPRESSO NESCAFÉ GOLD NESCAFÉ DECAF NESCAFÉ CLÁSICO NESCAFÉ CAPPUCCINO NESCAFÉ Dolca Cappuccino NESCAFÉ DOLCA y DOLCA Suave NESCAFÉ DOLCA Mokaccino, Cortado y Leche Manchada NESCAFÉ DOLCA Café con Leche NESCAFÉ DOLCE GUSTO NESPRESSO Malta AMANACER COFFEE-MATE NESQUIK NESTLÉ SELECTION NESTLÉ CLASSIC SUFLAIR CRUNCH BANANITA DOLCA GAROTO TABLETAS GAROTO BOMBONES SERENATA DE AMOR BATÓN NESQUIK® y NESQUIK® DUO® CHOCAPIC® TRIX® FITNESS®, FITNESS® FRUITS Y FITNESS® MIEL & ALMENDRAS Caldos MAGGI Sopas Crema MAGGI Sopas Instantáneas MAGGI Purés MAGGI MAGGI Jugoso al Horno MAGGI Sopas Crema Premium MAGGI Tu Toque EPA! TORPEDO CHOMP FRIGOR SIN PARAR MEGA LA FRUTTA NOVELTY LUXOR CONOGOL NESQUIK PICO DULCE POPSY HELLO KITTY NIDO LA LECHERA SVELTY Leche Condensada NESTLÉ
Sales:	Wholesale
Clients:	Distributors, Supermarkets
Competitors:	Mars, Incorporated DANONE MONDELEZ INTERNATIONAL, INC.
Suppliers	Nestle Mexico S.A. De C.V. Mexico Hand Arnold Trinidad Limited Trinidad & Tobago NESTLE VENEZUELA S.A. Venezuela
Operations Area:	National, International
The company imports from:	Trinidad & Tobago, Venezuela, Mexico, Switzerland, Brazil
The company exports to	Brasil, Uruguay, Paraguay, Venezuela y Chile
The company employs	1900 employees
Payments:	Regular-Made on a 45 day basis
LOCATION
Headquarters :	Av Del Libertador 1855, Vicente Lopez (1638), Buenos Aires, Argentina
Branches:	The company has branches at: Carlos Pellegrini 887 Buenos Aires, 1009 Argentina Plant El Talar: Ruta Panamericana km 29 – 1617 El Talar – Provincia de Buenos Aires Plant Magdalena: Ruta 11 Km 46 – 1913 Magdalena – Provincia de Buenos Aires Plant Moreno: Acceso oeste Km 41.700 – 1744 Moreno – Provincia de Buenos Aires Plant Santo Tomé: Ruta 11 Km 457 – 3016 Santo Tomé – Provincia de Santa Fe Plant Firmat: Boulevard Solis 2435 – 2630 Firmat – Provincia de Santa Fe Plant Villa Nueva: Ruta Provincial 2 – 5903 Villa Nueva – Provincia de Córdoba
Business Industry:	Companies in this industry manufacture and process a wide variety of foods, including meat, seafood, dairy products, fruits and vegetables, milled grains and oilseeds, baked goods, and candy. Demand is driven by food consumption, which depends on population growth. The profitability of individual companies depends on efficient operations, because products are commodities subject to intense price competition. Companies compete largely based on cost and their ability to distribute the finished product. Large companies have economies of scale in purchasing and distribution. Small companies can compete effectively in local or regional markets and by developing popular products. Major products include processed meats (25 percent of industry revenue), dairy products (15 percent), edible oils (9 percent), processed fruit and vegetables (8 percent), baked goods (5 percent), snack foods (4 percent), and pet foods (3 percent). Companies in the industry also make candy, milled grain products, seasonings and dressings, breakfast cereals, cookies and crackers, seafood products, coffee and tea, and sugar.
GROUP STRUCTURE AND SUBSIDIARY COMPANIES
Listed at the stock exchange:	NO
Capital:	AR$ 10.809.500
Shareholders %:	The company is a subsidiary of: Nestlé S.A. Avenue Nestlé 55 Vevey, Vaud, 1800 Switzerland +41-219242111 www.nestle.com
Management:	Félix Allemann, CEO President, Sr. Félix Allemann Vicepresident, Sr. Jason Stalker Director, María Fernanda Amado Legal Representative, Néstor Hugo Cabadini, Alternate Legal Representative, Oscar Raúl Pratolongo
Related companies:	NESTLE WATERS ARGENTINA S.A.

FINANCIAL INFORMATION

	This is a private company that does not make its financial statements publish. The following information has been provided by our outside sources.
Currency	USD
Year	2013
Turnover	158 000 000
The cash flow is	Normal
EXPORTS-ANUAL FOB
2009	119.065.349
2010	200.855.673
2011	147.466.178
2012	154.668.238
2013	54.225.250
NESTLE S.A.-PARENT COMPANY	Jan.-Dec. 2012 Sales in CHF millions
Revenue	Growth CHF 92.18 billion (2012)
Operating Profit	Growth CHF 14.44 billion (2012)
Net Profit	Growth CHF 10.61 billion (2012)
Assets	Growth CHF 126.22 billion (2012)
Social Capital	Growth CHF 62.60 billion (2012)

LEGAL FILINGS

"P. d. L., J. C. c/Nestle Argentina S.A. s/ despido"
2009
Labour

“Nestle Argentina S.A. c/ Dirección General de Aduanas s/ recurso de apelación"
2012

Imports Taxes

SUMMARY

Nestle Argentina S.A is a company dedicated to the manufacture of food and beverages.

It has 84 years of experience in the market with a large business structure having 1900 employees and 7 branches.

The company is well established and has been consolidated as one of the leaders in its industry, with the main competitor DANONE (La Serenidima).

The company has maintained in the last years an average income of 150 millions dollars.

There are no negative againt the company.

It has a current banking debt of AR$ 819 400,00, and according to the Central Bank, it has a good payment behaviour.

RISK INFORMATION

	Since July 30th, Argentina entered into a Selective Default. The country failed to accomplish payment to the holdouts but continues to meet other payment obligations. The country is not following the considerations made by the US Supreme Court to pay the holdouts of its debt restructuration process (2005 and 2010). The parts had the opportunity to settle an agreement with the help of a facilitator appointed by the NY Count in which the case was handled in the first place. The period of grace began in June 30th, and was accomplished in July 30th, with no positive results. The country expects to achieve an agreement with the holdouts after December 2014. That is when the RUFO clause is expired. The expiration of Rights Upon Future Offers (RUFO) will exclude the bondholders from the preceding restructuring processes (2005-2010), from claiming a better agreement, should the country had accomplished with the holdouts. Restriction systems for the purchase of foreign currency and restrainement of international trade. Inflation. Possible economic recession for the second half of the year.
DEBTS	Controlled-Good payment behaviour
PAYMENTS	Regular-Made on a 45 day basis
CASH FLOW	Normal
ENTERVIEW
NAME	Paula
POSITION	Accounting Deaprtment
COMMENTS	The person contacted confirmed address, branches, activity, imports, exports, trademarks, she refused to confirm financial information.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.61.57
UK Pound	1	Rs.100.42
Euro	1	Rs.78.45

INFORMATION DETAILS

Analysis Done by :	DIV
Report Prepared by :	SDA

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.