MIRA INFORM REPORT

Report No. :	327236
Report Date :	20.06.2015

IDENTIFICATION DETAILS

Name :	NEW ZEALAND STEEL LIMITED

Registered Office :	131 Mission Bush Road, Glenbrook South Auckland 2681

Country :	New Zealand

Financials (as on) :	30.06.2014

Date of Incorporation :	26.07.1965

Legal Form :	Private Limited Liability Company

Line of Business :	Producer of flat rolled steel products for the building, construction, manufacturing and agricultural industries

No. of Employee :	1,150 full-time staff and 200 semi-permanent contractors

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 – March 31, 2015

Country Name

Previous Rating

(31.12.2014)

Current Rating

(31.03.2015)

New Zealand

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

NEW ZEALAND ECONOMIC OVERVIEW

Over the past 30 years the government has transformed New Zealand from an agrarian economy dependent on concessionary British market access to a more industrialized, free market economy that can compete globally. This dynamic growth has boosted real incomes - but left behind some at the bottom of the ladder - and broadened and deepened the technological capabilities of the industrial sector. Per capita income rose for ten consecutive years until 2007 in purchasing power parity terms, but fell in 2008-09. Debt-driven consumer spending drove robust growth in the first half of the decade, fueling a large balance of payments deficit that posed a challenge for policymakers. Inflationary pressures caused the central bank to raise its key rate steadily from January 2004 until it was among the highest in the OECD in 2007-08. The higher rate attracted international capital inflows, which strengthened the currency and housing market while aggravating the current account deficit. The economy fell into recession before the start of the global financial crisis and contracted for five consecutive quarters in 2008-09. In line with global peers, the central bank cut interest rates aggressively and the government developed fiscal stimulus measures. The economy pulled out of recession in 2009, and achieved 2-3% growth between 2011 to 2014. Nevertheless, key trade sectors remain vulnerable to weak external demand and lower commodity prices. In the aftermath of the Canterbury earthquakes, the government has continued programs to expand export markets, develop capital markets, invest in innovation, raise productivity growth, and develop infrastructure, while easing its fiscal austerity.

Source : CIA

IDENTIFICATION
Given
Subject name:	NEW ZEALAND STEEL LIMITED
Address:	131 Mission Bush Road Glenbrook, South Auckland
Country:	New Zealand

Verified
Subject name:	NEW ZEALAND STEEL LIMITED
Address:	131 Mission Bush Road,			Postal address:		Private Bag 92121
Town:	Glenbrook			Town:		Auckland
State/province:	South Auckland
Zip/postal code:	2681			Zip/postal code:		1142
Country:	New Zealand
Telephone:	+64 (9) 3758999
Fax:	+64 (9) 3758213
Email:	info@nzsteel.co.nz nzsteel@bluescopesteel.com
Website:	www.nzsteel.co.nz
EXECUTIVE SUMMARY
Date registered:	26-07-1965
Legal form:	Private Limited Liability Company
Authorised capital:	NZD 1,614,590,282
Sales turnover:	NZD 932,013,000 (Holdings Consolidated 12 months, 30-06-2014) AUD 4,361,800,000 (Group consolidated 6 months, 31-12-2014)
Main activities:	Producer of flat rolled steel products for the building, construction, manufacturing and agricultural industries.
Employees:	1,150 full-time staff and 200 semi-permanent contractors (Subject)
REGISTRY DATA
Key Facts
Date registered:	26-07-1965
Legal form:	Private Limited Liability Company
Registration no:	68953
Registry auth.:	Registrar of Companies
Tax number:	NZBN: 9429040649184
Registry status:	Live/Active
Previous names:	The Subject initially operated under the names: 1) NEW ZEALAND STEEL LIMITED 2) BHP NEW ZEALAND STEEL LIMITED (until 01/05/2002)
LEGAL FILINGS

Bankruptcy filings:	None
Court judgements:	None
Tax liens:	None
Other:	None

MANAGEMENT & STAFF
Key Managers
Name:	Andrew James Garey
Job title:	Director

Name:	Mark Royce Vassella
Job title:	Director

Name:	Matthew Annis Kari
Job title:	Director

Name:	Ronald John Gillespie
Job title:	Director

Staff
No of employees	1,150 full-time staff and 200 semi-permanent contractors (Subject)
BOARD OF DIRECTORS / OTHER APPOINTMENTS
Appointments
Name:	Andrew James Garey
Board function:	Director
Address:	9 Tongeren Square Karaka, Papakura, 2113 New Zealand

Name:	Mark Royce Vassella
Board function:	Director
Address:	14 Yuille Street Brighton, VIC 3186 Australia

Name:	Matthew Annis Kari
Board function:	Director
Address:	4 Rossini Court Karaka, Papakura, 2113 New Zealand

Name:	Ronald John Gillespie
Board function:	Director
Address:	188 Mcnicol Road Rd 5, Papakura, 2585 New Zealand
SHARE CAPITAL
Composition
Authorised:	NZD 1,614,590,282
Number/type:	1,614,590,282 ordinary shares
Share value:	NZD 1
Issued:	NZD 1,614,590,282
Paid-up:	NZD 1,614,590,282
Shareholders/Owners
How Listed	Full List

Composition
Name:	NEW ZEALAND STEEL HOLDINGS LIMITED
No. of shares:	1,614,590,282 ordinary shares
% of shares:	100%
Address:	131 Mission Bush Road Glenbrook, South Auckland New Zealand
CORPORATE AFFILIATIONS
Structure
Name:	BLUESCOPE STEEL LIMITED
Affiliation type:	Ultimate Holding Company
Address:	Level 11, 120 Collins Street Melbourne, VIC 3000 Australia
Comment:	ACN: 000 011 058 ABN: 16 000 011 058 Registration date: 15/03/1921

Name:	GLENBROOK HOLDINGS PTY. LTD.
Affiliation type:	Holding Company
Address:	Level 11, 120 Collins Street Melbourne, VIC 3000 Australia
Comment:	ACN: 007 258 059 ABN: 62 007 258 059 Registration date: 22/06/1989

Name:	TASMAN STEEL HOLDINGS LIMITED
Affiliation type:	Intermediate Holding Company
Address:	131 Mission Bush Road Glenbrook South Auckland New Zealand
Comment:	Company Number: 421913 NZ Business Number: 9429039363961 Incorporation Date: 06/04/1989

Name:	NEW ZEALAND STEEL HOLDINGS LIMITED
Affiliation type:	Parent Company
Address:	131 Mission Bush Road Glenbrook, South Auckland New Zealand
Comment:	Company Number: 440112 NZ Business Number: 9429039303981 Incorporation Date: 18/07/1989

Name:	BLUESCOPE STEEL TRADING NZ LIMITED
Affiliation type:	Wholly-owned Subsidiary
Address:	131 Mission Bush Road Glenbrook, South Auckland New Zealand
Comment:	Company number: 23142 NZ Business Number: 9429040884172 Incorporation Date: 20-01-1970

Name:	STELTECH STRUCTURAL LIMITED
Affiliation type:	Wholly-owned Subsidiary
Address:	131 Mission Bush Road Glenbrook, South Auckland New Zealand
Comment:	Company number: 117947 NZ Business Number: 9429032028720 Incorporation Date: 13-07-1983

Name:	TOWARD INDUSTRIES LIMITED
Affiliation type:	Wholly-owned Subsidiary
Address:	131 Mission Bush Road Glenbrook, South Auckland New Zealand
Comment:	Company number: 462353 NZ Business Number: 9429039241207 Incorporation Date: 16-03-1990

Comments	A list of major affiliated companies is attached to this report. Other companies of the BLUESCOPE STEEL Group should also be considered as affiliates of the Subject.
BANKING & FINANCING
Bankers
Bank name:	ANZ BANKING GROUP (NEW ZEALAND) LIMITED
Address:	New Zealand

Charges & Mortgages	Time of Registration/PPSR Registration Date 30-Oct-2002 13:40 Debtor Name NEW ZEALAND STEEL LIMITED Financing Statement Registration No. FT1RF42728596D4D/C0004 Debtor Reference 1061043 Date of Prior Registration/Creation: 05-Oct-1994 Org Type: Company Incorporation No: 68953 City/Town: AUCKLAND Collateral Type: Goods - Other ________________________________________ Time of Registration/PPSR Registration Date 15-Nov-2002 19:11 Debtor Name NZ STEEL Financing Statement Registration No. F2279DF91ZR92312/C0005 Debtor Reference Org Type: Other Incorporation No: City/Town: AUCKLAND Collateral Type: Goods - Other ________________________________________ Time of Registration/PPSR Registration Date 19-Jan-2005 13:56 Debtor Name NEW ZEALAND STEEL LIMITED Financing Statement Registration No. F282F92M1JZ68419/C0046 Debtor Reference 100070 Org Type: Company Incorporation No: 68953 City/Town: GLENBROOK 1030 Collateral Type: Goods - Motor Vehicles; Goods - Other; Intangibles ________________________________________ Time of Registration/PPSR Registration Date 21-Oct-2005 15:10 Debtor Name STEEL CO LIMITED Financing Statement Registration No. F21CX06223PV1Z88/C0004 Debtor Reference 7787352 Org Type: Company Incorporation No: 1603257 City/Town: AUCKLAND Collateral Type: Goods - Other ________________________________________ Time of Registration/PPSR Registration Date 27-Oct-2006 14:22 Debtor Name NEW ZEALAND STEEL LIMITED Financing Statement Registration No. FA54W3P19929HP25/C0001 Debtor Reference HPFS Org Type: Company Incorporation No: 68953 City/Town: AUCKLAND Collateral Type: All Present And After Acquired Personal Property; Goods - Other ________________________________________ Time of Registration/PPSR Registration Date 24-Jul-2008 09:54 Debtor Name NEW ZEALAND STEEL LIMITED Financing Statement Registration No. F20C3R19MU086426/C0003 Debtor Reference VF0574NZS001 Org Type: Company Incorporation No: 68953 City/Town: SOUTH AUCKLAND Collateral Type: All Present And After Acquired Personal Property; Goods - Other ________________________________________ Time of Registration/PPSR Registration Date 12-Sep-2008 20:15 Debtor Name NEW ZEALAND STEEL LIMITED Financing Statement Registration No. F20ED1R99M353620/C0004 Debtor Reference 204618 Org Type: Company Incorporation No: 68953 City/Town: AUCKLAND Collateral Type: All Present And After Acquired Personal Property; Goods - Other ________________________________________ Time of Registration/PPSR Registration Date 13-Sep-2008 04:25 Debtor Name STEEL CO LIMITED Financing Statement Registration No. F22YD781C5R4702S/C0003 Debtor Reference 102848 Org Type: Company Incorporation No: 1603257 City/Town: MANUKAU Collateral Type: All Present And After Acquired Personal Property; Goods - Other ________________________________________ Time of Registration/PPSR Registration Date 23-Mar-2009 09:14 Debtor Name NEW ZEALAND STEEL LIMITED Financing Statement Registration No. FT9Z2U07V5658J54 Debtor Reference Accounts Payable Administrator Org Type: Company Incorporation No: 68953 City/Town: GLENBROOK Collateral Type: Goods - Other Time of Registration/PPSR Registration Date 26-Jun-2009 09:23 Debtor Name NEW ZEALAND STEEL LIMITED Financing Statement Registration No. FM2N22J548H2792D/C0003 Debtor Reference Org Type: Company Incorporation No: 68953 City/Town: AUCKLAND Collateral Type: Goods - Other Time of Registration/PPSR Registration Date 23-Dec-2009 13:40 Debtor Name NEW ZEALAND STEEL LIMITED Financing Statement Registration No. F90RD51J99Z30C96 Debtor Reference NEW ZEALAND STEEL LIMITED Org Type: Company Incorporation No: 68953 City/Town: AUCKLAND Collateral Type: All Present And After Acquired Personal Property Time of Registration/PPSR Registration Date 06-Oct-2010 08:33 Debtor Name NEW ZEALAND STEEL LIMITED Financing Statement Registration No. FP0JW49876P28X64/C0001 Debtor Reference Org Type: Company Incorporation No: 68953 City/Town: AUCKLAND Collateral Type: Goods - Other ________________________________________ Time of Registration/PPSR Registration Date 07-Dec-2010 11:57 Debtor Name NEW ZEALAND STEEL LIMITED Financing Statement Registration No. FJ49ZD782BN12397 Debtor Reference 68953 Org Type: Company Incorporation No: 68953 City/Town: AUCKLAND Collateral Type: Goods - Other Time of Registration/PPSR Registration Date 25-Jul-2011 08:51 Debtor Name STEEL CO LIMITED Financing Statement Registration No. FT2RR61H96Z35936 Debtor Reference 093960 Org Type: Company Incorporation No: 1603257 City/Town: AUCKLAND Collateral Type: Goods - Other Time of Registration/PPSR Registration Date 14-Oct-2011 16:29 Debtor Name NEW ZEALAND STEEL LIMITED Financing Statement Registration No. F76SZ61F328D1D25/C0001 Org Type: Other Incorporation No: 68953 City/Town: AUCKLAND Collateral Type: Goods - Other Time of Registration/PPSR Registration Date 20-Oct-2011 16:07 Debtor Name NEW ZEALAND STEEL LIMITED Financing Statement Registration No. F62C327F1BW71962 Debtor Reference 81101512 NZ Steel Ltd Org Type: Company Incorporation No: 68953 City/Town: AUCKLAND Collateral Type: Goods - Other Time of Registration/PPSR Registration Date 20-Oct-2011 16:07 Debtor Name NEW ZEALAND STEEL LIMITED Financing Statement Registration No. F62C327F1BW71962 Debtor Reference 81101512 NZ Steel Ltd Org Type: Company Incorporation No: 68953 City/Town: AUCKLAND Collateral Type: Goods - Other Time of Registration/PPSR Registration Date 03-Jan-2012 16:49 Debtor Name NEW ZEALAND STEEL LIMITED Financing Statement Registration No. F52H4T5931R4Y02V Debtor Reference 083-0130704-001 Org Type: Company Incorporation No: 68953 City/Town: AUCKLAND Collateral Type: Goods - Other Time of Registration/PPSR Registration Date 15-Mar-2012 09:52 Debtor Name NEW ZEALAND STEEL LIMITED Financing Statement Registration No. F5198X264D08J4H2/C0001 Debtor Reference 10000086 Org Type: Company Incorporation No: 68953 City/Town: AUCKLAND Collateral Type: Goods - Other Time of Registration/PPSR Registration Date 23-May-2012 14:50 Debtor Name NEW ZEALAND STEEL LIMITED Financing Statement Registration No. FR0N3R42587M492J/C0003 Debtor Reference 1045435 Org Type: Company Incorporation No: 68953 City/Town: SOUTH AUCKLAND Collateral Type: All Present And After Acquired Personal Property; Intangibles Time of Registration/PPSR Registration Date 28-May-2012 20:09 Debtor Name NEW ZEALAND STEEL LIMITED Financing Statement Registration No. F312349P2R51ME18/C0001 Debtor Reference 6600 Org Type: Company Incorporation No: 68953 City/Town: AUCKLAND Collateral Type: Goods - Motor Vehicles; Intangibles

Comments	It is generally not the policy of local banks to provide credit status information to non-bona fide applications, and interested parties would be advised to consult first with the Subject if banker's references are required.
FINANCIAL ACCOUNTS
Description
Required to file:	No
Source:	Group Consolidated Statements
Presentation:	Attached to this report / Summarised below
Date of accounts:	30-06-2014
Type of accounts:	Full audited
Currency:	New Zealand Dollar (NZD), Australian Dollar (AUD)
Exchange rate:	USD 1 = NZD 1.44 as of 15-06-2015 USD 1 = AUD 1.3 as of 15-06-2015

Summarised
	30-06-2014		30-06-2013		31-12-2014
Currency:	New Zealand Dollar (NZD)		New Zealand Dollar (NZD)		Australian Dollar (AUD)
Consolidation:	Holdings Consolidated		Holdings Consolidated		Group consolidated
Period:	12 months		12 months		6 months

Sales turnover:	932,013,000		846,130,000		4,361,800,000
Gross profit:	86,101,000		50,350,000
Profit before tax:	57,861,000		22,120,000		149,600,000
Profit after tax:	43,169,000		17,346,000		114,600,000
Non-current assets:	691,390,000		600,295,000		4,577,700,000
Current assets:	506,172,000		396,517,000		3,153,500,000
Inventories:	190,617,000		172,809,000		1,620,400,000
Total assets:	1,197,562,000		996,812,000		7,731,200,000
Current liabilities:	297,765,000		182,652,000		1,901,600,000
Non-current liabilities:	271,469,000		246,622,000		1,147,300,000
Total liabilities:	569,234,000		429,274,000		3,048,900,000
Shareholders' equity:	628,328,000		567,538,000		4,682,300,000

Comments	The Holdings Consolidated financial statements comprise the financial statements of the Subject’s Intermediate Holding Company, TASMAN STEEL HOLDINGS LIMITED and its subsidiaries. These are the closest consolidated accounts including the Subject. Subject is a main Group operating entity in New Zealand. The group consolidated financial report relates to the entity consisting of BLUESCOPE STEEL LIMITED (Ultimate Holding Company) and the entities it controlled for the six months ended 31 December 2014
OPERATIONS & HISTORY
Activities
Full description:	The Subject is engaged in manufacturing and supplying of flat rolled steel products for the building, construction, manufacturing and agricultural industries.
Products/services:	COLORSTEEL® ZINCALUME® steel GALVSTEEL™ Hot Rolled Steel Cold Rolled Steel Pipe & Hollow Sections AXXIS® Steel for Framing Steltech®

Trade Bodies	A member of: - New Zealand Business Roundtable - New Zealand Minerals Industry Association - Power Crane Association of New Zealand - Steel Construction Industry New Zealand - New Zealand Trade Centre - Steel Can Association of New Zealand Inc - Export New Zealand
PROPERTY & ASSETS

Premises	The Subject is operating a fully integrated steel mill at Glenbrook, about 60 kilometres south of Auckland. The mill is surrounded by 500 hectares of farmland acting as a ‘greenbelt’ buffer zone.

Branches	The Company operates also from mine sites located at Waikato North and Taharoa.
PAYMENTS
Purchase Terms
Local:	Cash Credits 14-30 days
Imports:	L/Cs Credits 30 days net

Sales Terms
Local:	Cash Credits 14-30 days
Exports:	L/Cs Credits 30 days net

Debt Collections / Judgements	No negative information was found.

Payment Experience
Payment behaviour:	As trade references were not supplied, the Subject's payment track record history CANNOT BE ACCURATELY DETERMINED, but payments are believed to be PROMPT.
INVESTIGATIVE NOTES

Sources:		Interviews and material provided by the Subject Other official and local business sources
ATTACHMENTS
Attachments:		Holdings consolidated financial statements Group consolidated financial statements List of affiliated companies

Financial Ratios
	30-06-2014	30-06-2013	Trend
PROFITABILITY [%]
Gross Margin	9.24%	5.95%	55.29%
Gross Profit / Sales Turnover 100*
Operating Margin	N/A	N/A	N/A
Operating Profit / Sales Turnover 100*
Net Profit Margin	4.63%	2.05%	125.85%
Profit After Tax / Sales Turnover 100*
Return On Equity (ROE)	6.87%	3.06%	124.51%
Profit After Tax / Equity 100*
Return On Assets (ROA)	3.6%	1.74%	106.9%
Profit After Tax / Total Assets 100*
Return On Investment (ROI)	9.21%	3.9%	136.15%
Profit Before Tax / Equity 100*
EFFICIENCY [%]
Asset Turnover	77.83%	84.88%	-8.31%
Sales Turnover / Total Assets 100*
Inventory Turnover	488.95%	489.63%	-0.14%
Sales Turnover / Inventory 100*
LIQUIDITY [%]
Current Ratio (CR)	169.99%	217.09%	-21.7%
Current Assets / Current Liabilities 100*
Quick Ratio (QR)	105.97%	122.48%	-13.48%
(Current Assets – Inventory) / Current Liabilities 100*
DEBT [%]
Debt Ratio	47.53%	43.06%	10.38%
Total Liabilities / Total Assets 100*
Long-Term Debt Ratio	43.2%	43.45%	-0.58%
Long-Term Liabilities / Equity 100*

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.63.82
UK Pound	1	Rs.101.26
Euro	1	Rs.72.36

INFORMATION DETAILS

Analysis Done by :	RAS

Report Prepared by :	ANK

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.

MIRA INFORM REPORT

IDENTIFICATION

EXECUTIVE SUMMARY

REGISTRY DATA

LEGAL FILINGS

MANAGEMENT & STAFF

BOARD OF DIRECTORS / OTHER APPOINTMENTS

SHARE CAPITAL

Shareholders/Owners

CORPORATE AFFILIATIONS

BANKING & FINANCING

Bankers

FINANCIAL ACCOUNTS

OPERATIONS & HISTORY

PROPERTY & ASSETS

PAYMENTS

INVESTIGATIVE NOTES

ATTACHMENTS

Financial Ratios

Unit