MIRA INFORM REPORT

Report No. :	348460
Report Date :	04.11.2015

IDENTIFICATION DETAILS

Name :	FONTERRA LIMITED
Registered Office :	9 Princes Street Auckland, Private Bag 92032, Auckland 1010, 1142
Country :	New Zealand
Financials (as on) :	31.01.2015 [Group Consolidated]
Date of Incorporation :	25.08.1998
Com. Reg. No.:	920718
Legal Form :	Private Limited Liability Company
Line of Business :	The Subject is engaged in the Production and Sales of Dairy Products.
No. of Employees :	16,000 [Group]

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 – March 31, 2015

Country Name	Previous Rating (31.12.2014)	Current Rating (31.03.2015)
New Zealand	A1	A1

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
Verified
Subject name:	FONTERRA LIMITED
Address:	9 Princes Street			Postal address:		Private Bag 92032
Town:	Auckland			Town:		Auckland
Zip/postal code:	1010			Zip/postal code:		1142
Country:	New Zealand
Telephone:	+64 (9) 3749000
Fax:	+64 (9) 3749001
Website:	www.fonterra.com (Group)
EXECUTIVE SUMMARY
Date registered:	25-08-1998
Legal form:	Private Limited Liability Company
Paid up capital:	101 shares
Sales turnover:	NZD 22,275,000,000 (Group consolidated 12 months, 31-07-2014)
Main activities:	Manufacturer of dairy products.
Employees:	16,000 (Group)
REGISTRY DATA
Key Facts
Date registered:	25-08-1998
Legal form:	Private Limited Liability Company
Registration no:	920718
Registry auth.:	Registrar of Companies
Other reg.:	NZBN 9429037784669
Registry status:	Live/Active
Previous names:	The Subject initially operated under the name of DAIRY NEW ZEALAND LIMITED, changed to NZMP LIMITED on 21 Dec 2001 and finally adopted the present style on 08 Jun 2004.
LEGAL FILINGS
Bankruptcy filings:	None
Court judgements:	None
Tax liens:	None
Other:	None
MANAGEMENT & STAFF
Key Managers
Name:	Kelvin Andrew Wickham
Job title:	Director
Name:	Robert Jackson Spurway
Job title:	Director
Staff
No of employees	16,000 (Group)
BOARD OF DIRECTORS / OTHER APPOINTMENTS
Appointments
Name:	Kelvin Andrew Wickham
Board function:	Director
Address:	Apartment 1507 26 Albert Street Auckland Central Auckland, 1010 New Zealand
Name:	Robert Jackson Spurway
Board function:	Director
Address:	10 Daresbury Lane Fendalton Christchurch, 8014 New Zealand
SHARE CAPITAL
Composition
Issued:	101 shares
Paid-up:	101 shares
Shareholders/Owners
How Listed	Full List
Composition
Name:	FONTERRA CO-OPERATIVE GROUP LIMITED
No. of shares:	100 shares
Address:	9 Princes Street Auckland New Zealand
Name:	NEW ZEALAND DAIRY BOARD
No. of shares:	1 share
Address:	Anya Wicks 9 Princes Street Auckland, 1010 New Zealand
CORPORATE AFFILIATIONS
Structure
Name:	FONTERRA CO-OPERATIVE GROUP LIMITED
Affiliation type:	Parent Company
Address:	9 Princes Street Auckland New Zealand
Comment:	Registration no. 1166320 NZBN 9429036748471
Name:	NEW ZEALAND DAIRY BOARD
Affiliation type:	Shareholder
Address:	Anya Wicks 9 Princes Street Auckland, 1010 New Zealand
Comment:	Registration no. 1244144 NZBN 9429036304400
Comments	A list of major affiliated companies is attached to this report.
BANKING & FINANCING
Charges & Mortgages	Time of Registration: 28-Oct-2002 15:58 Debtor Name: FONTERRA LIMITED Financing Statement Registration No: F20F9E152Z28N368/C0004 Incorporation No: 920718 City/Town: HAMILTON Collateral Type: Goods - Other Time of Registration: 31-Jan-2009 22:45 Debtor Name: FONTERRA LIMITED Financing Statement Registration No: FW6DW0C84X752684/C0002 Incorporation No: 920718 City/Town: HAMILTON Collateral Type: All Present And After Acquired Personal Property; Goods - Other Time of Registration: 15-Apr-2011 09:24 Debtor Name: FONTERRA LIMITED Financing Statement Registration No: FV4832X84B19JP98 Incorporation No: 920718 City/Town: WHAKATANE Collateral Type: Goods - Other Time of Registration: 14-Sep-2011 09:34 Debtor Name: FONTERRA LIMITED Financing Statement Registration No: FW4HU096V63J9580 Incorporation No: 920718 City/Town: AUCKLAND Collateral Type: Goods - Other Time of Registration: 15-Mar-2012 15:28 Debtor Name: FONTERRA LIMITED Financing Statement Registration No: FM0B5Y904769B75N/C0001 Incorporation No: 920718 City/Town: AUCKLAND Collateral Type: Goods - Other Time of Registration: 25-May-2012 11:32 Debtor Name: FONTERRA LIMITED Financing Statement Registration No: F35Y86U129JU079S Incorporation No: 920718 City/Town: TE AWAMUTU Collateral Type: Goods - Other Time of Registration: 01-Jun-2012 05:08 Debtor Name: FONTERRA LIMITED Financing Statement Registration No: FC0J4E24802938GX Incorporation No: 920718 City/Town: AUCKLAND Collateral Type: All Present And After Acquired Personal Property Time of Registration: 22-Jun-2012 12:06 Debtor Name: FONTERRA LIMITED Financing Statement Registration No: FP0FX69498429Z9D Incorporation No: 920718 City/Town: MAUNGATUROTO Collateral Type: Goods - Other Time of Registration: 22-Jun-2012 13:16 Debtor Name: FONTERRA LIMITED Financing Statement Registration No: F22AD0XF2923N253 Incorporation No: 920718 City/Town: KAURI Collateral Type: Goods - Other Time of Registration: 25-Jun-2012 12:06 Debtor Name: FONTERRA LIMITED Financing Statement Registration No: FY2FR71D2456383H Incorporation No: 920718 City/Town: HAUTAPU Collateral Type: Goods - Other Time of Registration: 25-Jun-2012 12:18 Debtor Name: FONTERRA LIMITED Financing Statement Registration No: F62VT304645XE930 Incorporation No: 920718 City/Town: TOKOROA Collateral Type: Goods - Other Time of Registration: 27-Jun-2012 12:47 Debtor Name: FONTERRA LIMITED Financing Statement Registration No: FM346EA2429WP961 Incorporation No: 920718 City/Town: MORRINSVILLE Collateral Type: Goods - Other Time of Registration: 27-Jun-2012 12:51 Debtor Name: FONTERRA LIMITED Financing Statement Registration No: FA0244K9W93PK375 Incorporation No: 920718 City/Town: TE AWAMUTU Collateral Type: Goods - Other Time of Registration: 05-Jul-2012 12:09 Debtor Name: FONTERRA LIMITED Financing Statement Registration No: F474XF0M3B1B6924 Incorporation No: 920718 City/Town: AUCKLAND Collateral Type: Goods - Motor Vehicles
FINANCIAL ACCOUNTS
Description
Required to file:	No
Source:	Group Consolidated Statements
Presentation:	Attached to this report / Summarised below
Date of accounts:	31-07-2014
Type of accounts:	Full audited (Unaudited - 6 months group consolidated)
Currency:	New Zealand Dollar (NZD)
Exchange rate:	USD 1 = NZD 1.52 as of 13-08-2015
Summarized
	31-01-2015		31-07-2014		31-07-2013
Consolidation:	Group consolidated		Group consolidated		Group consolidated
Period:	6 months		12 months		12 months
Sales turnover:	9,746,000,000		22,275,000,000		18,643,000,000
Gross profit:	1,552,000,000		2,462,000,000		3,032,000,000
Profit before tax:	180,000,000		137,000,000		668,000,000
Profit after tax:	183,000,000		179,000,000		736,000,000
Non-current assets:	10,753,000,000		9,045,000,000		8,727,000,000
Current assets:	8,043,000,000		6,484,000,000		5,646,000,000
Inventories:	4,651,000,000		3,701,000,000		3,078,000,000
Total assets:	18,796,000,000		15,529,000,000		14,373,000,000
Current liabilities:	6,719,000,000		5,133,000,000		4,078,000,000
Non-cur liabilities:	5,655,000,000		3,862,000,000		3,547,000,000
Total liabilities:	12,374,000,000		8,995,000,000		7,625,000,000
Shareholders' equity:	6,422,000,000		6,534,000,000		6,748,000,000
Comments	The above group consolidated figures relate to the Subject's Parent Company FONTERRA CO-OPERATIVE GROUP LIMITED and its subsidiaries.
OPERATIONS & HISTORY
Activities
Full description:	The Subject is engaged in the production and sales of dairy products.
Brands:	NZMP, ANCHOR, ANLENE, ANMUM
Sales
Local:	Yes
Export:	Worldwide
PROPERTY & ASSETS
Premises	The Subject principally operates from premises located at the heading address, consisting of production facilities, a warehouse and administrative offices.
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:		Group consolidated financial statements List of affiliated companies

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.65.45
UK Pound	1	Rs.100.96
Euro	1	Rs.72.10

INFORMATION DETAILS

Analysis Done by :	KAS
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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