MIRA INFORM REPORT

Report No. :	323245
Report Date :	29.05.2015

IDENTIFICATION DETAILS

Name :	GUESS EUROPE SAGL
Registered Office :	Piazza San Camillo De Lellis, s.n. 20100 - Milano (MI)
Country :	Italy
Date of Incorporation :	09.11.2006
Legal Form :	Limited liability company
Line of Business :	Wholesale of clothing and accessories Wholesale of leather goods; luggage in any material
No. of Employee :	From 150 to 175

RATING & COMMENTS

MIRA’s Rating :

Ca

RATING		STATUS	PROPOSED CREDIT LINE
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

Status :	Not registered at the competent local firm’s registry
Payment Behaviour :	Unknown
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 – December 31, 2014

Country Name	Previous Rating (30.09.2014)	Current Rating (31.12.2014)
Italy	A2	A1

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

ITALY ECONOMIC OVERVIEW

Italy has a diversified economy, which is divided into a developed industrial north, dominated by private companies, and a less-developed, highly subsidized, agricultural south, where unemployment is higher. The Italian economy is driven in large part by the manufacture of high-quality consumer goods produced by small and medium-sized enterprises, many of them family-owned. Italy also has a sizable underground economy, which by some estimates accounts for as much as 17% of GDP. These activities are most common within the agriculture, construction, and service sectors. Italy is the third-largest economy in the euro-zone, but its exceptionally high public debt and structural impediments to growth have rendered it vulnerable to scrutiny by financial markets. Public debt has increased steadily since 2007, topping 132% of GDP in 2014, but investor concerns about Italy and the broader euro-zone crisis eased in 2013, bringing down Italy's borrowing costs on sovereign government debt from euro-era. The government still faces pressure from investors and European partners to sustain its efforts to address Italy's long-standing structural impediments to growth, such as labor market inefficiencies and tax evasion. In 2014 economic growth and labor market conditions continued to deteriorate, with overall unemployment rising to 12.2% and youth unemployment around 40%. Italy's GDP is now nearly 10% below its 2007 pre-crisis level.

Source : CIA

Company name and address

GUESS EUROPE SAGL

Piazza San Camillo De Lellis, s.n. 20100 - Milano (MI) -IT-

Summary

Fiscal Code	:
Legal Form	:	Limited liability company
start of Activities	:	09/11/2006
Turnover Range	:	unknown
Number of Employees	:	from 150 to 175

Highlights

The company under review belongs to the USA group Guess.

Guess, Inc. (GUESS), designs, markets, distributes and licenses apparel

and accessories for men, women and children. The Company’s apparel is marketed

under numerous trademarks including GUESS, GUESS?, GUESS U.S.A., GUESS

Jeans, GUESS? and Triangle Design, MARCIANO, Question Mark and Triangle

Design, a stylized G and a stylized M, GUESS Kids, Baby GUESS, YES, G by

GUESS, GUESS by MARCIANO and Gc.

The lines include full collections of clothing, including jeans, pants,

overalls, skirts, dresses, shorts, blouses, shirts, jackets, knitwear and

intimate apparel. It also grant licenses to manufacture and distribute

a range of products that complement its apparel lines, including eyewear,

watches, handbags, footwear, kids' and infants' apparel, leather apparel,

swimwear, fragrance, jewelry and other fashion accessories. The Company’s

products are sold through retail, wholesale, e-commerce and licensing distribution

channels. The Company operates in five segments: North American retail,

Europe, Asia, North American wholesale and licensing.

In their Europe segment, they sell products in 72 countries throughout

Europe and the Middle East through wholesale, retail and e-commerce channels.

In fiscal 2013, our Europe segment accounted for approximately 35.3% of

their revenues and 37.9% of our earnings from operations.

* * * *

Coming back to the company under review, we let you know that the legal

seat is in Switzerland and not in Italy, therefore a balance-sheet is not

available.

Group's shares are listed at New York Stock Exchange.

Business transactions on credit basis are feasible.

Activity

Wholesale of clothing and accessories

Wholesale of leather goods; luggage in any material

Legal Data

Legal Form : Limited liability company

V.A.T. Code : 05847610960

Registration No. : CH50140073641

: 660849

Foundation date	: 09/11/2006
Establishment date	: 09/11/2006
Start of Activities	: 09/11/2006
Nominal Capital	: 83.963
Subscribed Capital	: 83.963
Paid up Capital	: 83.963

The firm under review is not registered at the competent local Firm's Registry.

Members

Marciano

Paul

Born in Tiaret

( )

on 12/04/1952

- Fiscal Code : MRCPLA52D12Z301P

Residence:

South Alameda Street

, 1444

Los Angeles

- IT -

Position	Since	Shares Amount	% Ownership
Director

No Prejudicial events are reported

Bariguian

Gilles

Position	Since	Shares Amount	% Ownership
Board Chairman	19/10/2012

Relich

Michael

:

Santa Alberta Circle

- US -

Position	Since	Shares Amount	% Ownership
Director	08/01/2014

Companies connected to members *

*checkings have been performed on a national scale.

In this module are listed the companies in which members hold or have holded positions.

Marciano

Paul

Firm's Style	Seat	Fiscal Code	Position	Position Status	Firm's Status
Maco Apparel S.r.l.	Sesto Fiorentino (FI) - IT -	04219000488	Director	Withdrawn	Ceased
Guess Italia S.r.l.	Firenze (FI) - IT -	10904000154	Director	Withdrawn	Registered
Focus Europe S.r.l.	Crevalcore (BO) - IT -	01934481209	Director	Withdrawn	Ceased
Barn - S.r.l.	Firenze (FI) - IT -	05284250486	Director	Withdrawn	Ceased
Barn - S.r.l.	Firenze (FI) - IT -	05284250486	Board Chairman	Withdrawn	Ceased

The indication "REGISTERED" as Firm Status could refer to Firms in Liquidation, Active, Inactive, etc.

For more information, in this case, we advise to request further investigations.

Capital Shareholders

Shareholders' list as at date of data collection:

Firm's Style / Name	Seat / Residence	Fiscal Code	Owned Shares	% Ownership
Guess Europe BV			83.123 .Chf	99,00

Direct Participations

The Company under review has no participations in other Companies.

Firm's location and structure

In order to carry out its activities the firm uses the following locations:

-

Registered office

since 06/08/2009

Strada Regina

, 44

- 6992

- Bioggio/ti

- CH -

PHONE

: 0918095000

FAX	: 0918095100

Email

: www.guess.com

-

Branch

San Camillo De Lellis

, 44

- 20100

- Milano

(MI)

- IT -

PHONE

: 0266988125

-

Branch

Por Santa Maria

, 38/40 R

- 50100

- Firenze

(FI)

- IT -

PHONE

: 055281990

-

Branch

Portico

, 71

- 24050

- Orio Al Serio

(BG)

- IT -

-

Branch

Fillungo

, 33

- 20100

- Milano

(MI)

- IT -

PHONE

: 058346431

-

Branch

via San Grato

, 1

- 6924

- Sorengo

- CH -

PHONE

: 0919800870

Employees

: 160

Traded Brands / Suppliers

- GUESS

- MARCIANO

- G BY GUESS

Historical Information and/or Firm's Status

COMPANY STYLE MODIFICATIONS:

Former Style	New Style	Changement Date
Guess Swiss Europe Sagl	Guess Europe Sagl	02/11/2007

CEASINGS/INCORPORATIONS/MERGES:

The firm absorbed by merging of

Guess Swiss Sagl

Date

:

27/07/2010

Protests

Protests checking on the subject firm has given a negative result.

Data Base Prejudicial Events Search

Search performed on a National Scale

Prejudicial Events Search Result: NEGATIVE

Search performed on a specialized data base.

Legal Procedures

None reported, standing to the latest received edition of the Official Publications.

Bankers

The firm operates with:

Bank Name	Agency Name	Address	ZIP Code	City	ABI Code	CAB Code
UNICREDIT PRIVATE BANKING S.P.A.					3223	0
UBS Ltd	Lugano
Credit Suisse	Lugano
BSI SA

Financial Data

Consolidated result

al 31/01/2015

(in Eur

x 1)

Item Type	Value
Sales	1.694.591.014
Profit (Loss) for the period	68.118.035

Consolidated result

al 01/02/2014

(in Eur

x 1)

Item Type	Value
Sales	1.801.209.785
Profit (Loss) for the period	110.542.511

Remarks

1) Protests checking (relative to the last five years) performed by crossing and matching the members names and the Firm's Style with the reported addresses, is supplied by the Informatic Registry managed by the Italian Chamber of Commerce. If the fiscal code is not indicated, the eventual homonymous cases are submitted to expert staff evaluation in order to limit wrong matching risks.

2) The Legal Data, supplied and retrived from the Firm's Registry of the Italian Chamber of Commerce, are in line with the last registered modifications.

3) Risk evaluation and Credit Opinion have been performed on the base of the actual data at the moment of their availability.

Market / Territory Data

Population living in the province	:	3.839.216
Population living in the region	:	9.393.092
Number of families in the region	:	3.858.736

Monthly family expences average in the region (in Eur..) :

- per food products	:	460
- per non food products	:	2.090
- per energy consume	:	114

Sector Data

The values are calculated on a base of 9.175 significant companies.

The companies cash their credits on an average of 114 dd.

The average duration of suppliers debts is about 118 dd.

The sector's profitability is on an average of 2,03%.

The labour cost affects the turnover in the measure of 8,14%.

Goods are held in stock in a range of 73 dd.

The difference between the sales volume and the resources used to realize it is about 1,25.

The employees costs represent the 8,25% of the production costs.

Statistical Detrimental Data

Statistically the trade activity passes through serious crises.

The area is statistically considered lowly risky.

In the region 50.886 protested subjects are found; in the province they count to 24.765.

The insolvency index for the region is 0,55, , while for the province it is 0,66.

Total Bankrupt companies in the province : 22.523.

Total Bankrupt companies in the region : 39.612.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.63.90
UK Pound	1	Rs.98.16
Euro	1	Rs.69.74

INFORMATION DETAILS

Analysis Done by :	DIV
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.