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modeFinanceTM HeadquarterBuilding A - AREA Science ParkPadriciano 99 - 34149 Trieste - ItalyPh.: +39 040 375 5337Fax: +39 040 375 [email protected]
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ELCOTEQ NETWORK SAWednesday, 21 September 2011
MORE Credit Rating
key
D C CC CCC B BB BBB A AA AAA
MORE Credit Rating
key
D C CC CCC B BB BBB A AA AAAnot
available
non return extremlypathological
pathological highdanger
weak sufficient adequate good very
strongextremely
strong
Company name ELCOTEQ NETWORK SA
Identification number
Country Luxembourg
ZIP code and city 2453 - LUXEMBOURG
Address Rue Eugene Ruppert 19
+352 248331
Legal form Limited company by shares
Account Unconsolidated
Incorporation date 2004
NACE 2 Sector 7010 - Activities of head offices
Listed
Status Active
MORE Credit limit Not eligible for credit on the base of the available informations
31/12/2008 31/12/2007 31/12/2006
Turnover (th e) 1,676,372 - 4,524
Rating D D CC
Probability of default 100.00% 100.00% 39.00%
Confidence Level 60% 42% 60%
Solvency ratios
Leverage ratio -10.58 -23.03 11.11
Total asset/Total liabilties 0.91 0.96 1.09
Capital Structure
Fixed Assets coverage ratio -33.90 -18.67 2.46
Profitability and economic equili-
brium ratios
Return on investement ROI (%) - - -
Return on equity ROE (%) -37.28 - -41.29
Analysis and trend of financial
strength
ELCOTEQ NETWORK SAWednesday, 21 September 2011
MORE Credit Rating
key
D C CC CCC B BB BBB A AA AAA
modeFinance TM srlVAT number [email protected]
Area Science Park,Padriciano 99. 34149 Trieste, ItalyTel. +39 040 3755337Fax +39 040 3756741
Sector Analysis
Company Healthy Balanced Vulnerable Risky
Solvency ratios
Leverage ratio -10.58 0.71 1.41 2.09 4.37
Total asset/Total liabilties 0.91 2.40 1.70 1.48 1.16
Capital Structure
Fixed Assets coverage ratio -33.90 1.78 1.39 1.00 0.73
Profitability and economic equilibrium ratios
Return on investement ROI (%) - 16.44 9.26 1.20 -5.29
Return on equity ROE (%) -37.28 22.58 13.09 -6.28 -95.83
Cash Conversion Cycle (days)
Days Sales Of Inventory (DIO) 24 50 52 40 13
Days Sales Outstanding (DSO) 22 54 54 47 28
Days Payable Outstanding (DPO) 58 22 27 32 35
Cash Conversion Cycle (DIO + DSO - DPO) -12 79 82 50 13
Numer of analyzed companies - 29 114 73 18
(Average) Rating D A BB B CC
The sector has been chosen according to:
international companies in the sector NACE 2 7010 with financial data of year 2008.
ELCOTEQ NETWORK SAWednesday, 21 September 2011
MORE Credit Rating
key
D C CC CCC B BB BBB A AA AAA
modeFinance TM srlVAT number [email protected]
Area Science Park,Padriciano 99. 34149 Trieste, ItalyTel. +39 040 3755337Fax +39 040 3756741
Sector Analysis - Graphs
ELCOTEQ NETWORK SAWednesday, 21 September 2011
MORE Credit Rating
key
D C CC CCC B BB BBB A AA AAA
modeFinance TM srlVAT number [email protected]
Area Science Park,Padriciano 99. 34149 Trieste, ItalyTel. +39 040 3755337Fax +39 040 3756741
Balance Sheet
BALANCE SHEET (th e) 31/12/2008 31/12/2007 31/12/2006
Accounting practice Local GAAP Local GAAP Local GAAP
Exchange rate EUR - EUR 1 1 1
Total assets 241,808 348,792 2,435
Fixed assets 732 844 821
Intangible fixed assets 4 6 0
Tangible fixed assets 728 838 821
Other fixed assets 0 0 0
Current assets 241,076 347,948 1,614
Stocks 112,405 185,379 0
Debtors 99,721 131,581 1,475
Other current assets 28,950 30,988 139
Cash & cash equivalent 25,257 28,572 39
Shareholders funds -25,250 -15,835 201
Capital 531 531 531
Other shareholders funds -25,781 -16,366 -330
Total liabilities 267,058 364,627 2,234
Non current liabilities 436 76 1,819
Long term debt 0 0 0
Other non-current liabilities 436 76 1,819
Current liabilities 266,622 364,551 415
Loans 0 0 0
Creditors 265,744 261,223 0
Other current liabilities 878 103,328 415
Total shareh. funds & liab. 241,808 348,792 2,435
NET DEBT (th e) 31/12/2008 31/12/2007 31/12/2006
Short term debts 0 0 0
Long term debt 0 0 0
Cash & cash equivalent 25,257 28,572 39
Net debt -25,257 -28,572 -39
31/12/2008 31/12/2007 31/12/2006
Working capital -53,618 55,737 1,475
Net Current Assets -25,546 -16,603 1,199
31/12/2008 31/12/2007 31/12/2006
Days Sales Of Inventory (DIO) 24 - 0
Days Sales Outstanding (DSO) 22 - 119
Days Payable Outstanding (DPO) 58 - 0
Cash Conversion Cycle (DIO + DSO - DPO) -12 - 119
ELCOTEQ NETWORK SAWednesday, 21 September 2011
MORE Credit Rating
key
D C CC CCC B BB BBB A AA AAA
modeFinance TM srlVAT number [email protected]
Area Science Park,Padriciano 99. 34149 Trieste, ItalyTel. +39 040 3755337Fax +39 040 3756741
Income Statement
INCOME STATEMENT (th e) 31/12/2008 31/12/2007 31/12/2006
Accounting practice Local GAAP Local GAAP Local GAAP
Exchange rate EUR - EUR 1 1 1
Sales 1,670,417 - -
Revenues growth (%) - - -
Other revenues +/- variation in inventories and contract in progress + Fixed assets
own construction capitalized5,955 - -
Operating revenue / turnover 1,676,372 - 4,524
Total costs 1,671,678 - 4,507
Costs growth (%) - - -
Service costs 239,948 - -
Material costs 1,429,224 - -
Costs of employees 2,506 - 2,306
EBITDA 4,694 - 17
Depreciation 130 - 51
EBIT 4,564 - -34
Financial P/L -13,966 - -45
Financial revenue 775 - 11
Financial expenses 14,741 - 56
Interest paid - - -
P/L before tax -9,402 - -79
Extr. and other P/L - - -
Extr. and other revenue - - -
Extr. and other expenses - - -
P/L before tax + Extr. and other P/L - - -
Taxation 12 - 4
P/L for period -9,414 - -83
31/12/2008 31/12/2007 31/12/2006
Cash flow -9,284 - -32
Added value - - -
31/12/2008 31/12/2007 31/12/2006
Number of employees - - -
ELCOTEQ NETWORK SAWednesday, 21 September 2011
MORE Credit Rating
key
D C CC CCC B BB BBB A AA AAA
modeFinance TM srlVAT number [email protected]
Area Science Park,Padriciano 99. 34149 Trieste, ItalyTel. +39 040 3755337Fax +39 040 3756741
Evolutions and trends
ELCOTEQ NETWORK SAWednesday, 21 September 2011
MORE Credit Rating
key
D C CC CCC B BB BBB A AA AAA
modeFinance TM srlVAT number [email protected]
Area Science Park,Padriciano 99. 34149 Trieste, ItalyTel. +39 040 3755337Fax +39 040 3756741
Qualitative information
Full overview The company operates as an electronics manufacturing services (EMS) firm. It was incorporated in August 2004.
It is a privately held company that has its registered head office in Luxembourg. The company is a subsidiary of
Elcoteq SE, which is a leading electronics manufacturing services (EMS) company in the communications technology
field. Elcoteq SE provides global end - to - end solutions consisting of product development services, supply chain
management, manufacturing, and after - market services for the whole lifecycle of its customers’ products, which
include personal communications products such as mobile phones and their parts, and home communications
products such as set - top boxes and electronics for flat screen televisions.
History Not available.
Primary business line Operates as an electronics manufacturing services (EMS) firm.
Secondary business line Not available.
Main activity Services.
Secondary activity Not available.
Main products and services Not available.
Size estimate Not available.
Strategy, organization and policy Not available.
Strategic alliances Not available.
Membership of a network Not available.
Main brand names Not available.
Main domestic country Luxembourg.
Main foreign countries or regions Not available.
Main production sites Not available.
Main distribution sites Not available.
Main sales representation sites Not available.
Main customers Not available.
ELCOTEQ NETWORK SAWednesday, 21 September 2011
MORE Credit Rating
key
D C CC CCC B BB BBB A AA AAA
modeFinance TM srlVAT number [email protected]
Area Science Park,Padriciano 99. 34149 Trieste, ItalyTel. +39 040 3755337Fax +39 040 3756741
Auditor/Advisor/Bank
Not available.
Board
name date of birth nationality function
Mr Jean - Jacques Bernard - Luxembourg Administrative Board (AG)
Mr Jouni Juhani Hartikainen 15/07/1961 Switzerland Administrative Board (AG)
Mr Olli - Pekka Aslak Vanhanen 01/10/1964 - Administrative Board (AG)
Sharehoders (the first twenty shareholders ordered by Direct %))
ELCOTEQ SE Rating: BB
Country ISO code LU Operating revenue (MIL $) 1,451
NACE Rev. 2, Core code - Total Assets (MIL $) 635
Direct % 94.16 Number of Employees 7,783
Total % - Information date 2010/10
Address: Not available
ELCOTEQ NETWORK S.A. Rating: -
Country ISO code FI Operating revenue (MIL $) -
NACE Rev. 2, Core code - Total Assets (MIL $) -
Direct % 5.83 Number of Employees -
Total % - Information date 2011/03
Address: Not available
ELCOTEQ LOHJA OY Rating: BBB
Country ISO code FI Operating revenue (MIL $) 0
NACE Rev. 2, Core code - Total Assets (MIL $) 8
Direct % 0.01 Number of Employees 12
Total % - Information date 2011/03
Address: Not available
ELCOTEQ NETWORK SAWednesday, 21 September 2011
MORE Credit Rating
key
D C CC CCC B BB BBB A AA AAA
modeFinance TM srlVAT number [email protected]
Area Science Park,Padriciano 99. 34149 Trieste, ItalyTel. +39 040 3755337Fax +39 040 3756741
Subsidiaries (the first twenty subsidiaries ordered by Direct %)
Not available.
ELCOTEQ NETWORK SAWednesday, 21 September 2011
MORE Credit Rating
key
D C CC CCC B BB BBB A AA AAA
modeFinance TM srlVAT number [email protected]
Area Science Park,Padriciano 99. 34149 Trieste, ItalyTel. +39 040 3755337Fax +39 040 3756741
ASKMORE rating guide
General vision A credit rating is an opinion of the general creditworthiness of an obligor (issuer rating), or the creditworthiness of
an obligor in respect of a specific debt security, or other financial obligation (issue rating), based on relevant risk
factors.
The Multi Objective Rating Evaluation (MORE) model is essentially used to assess the level of distress of industrial
companies by using data included in financial statements.
The basic idea of the model is to analyze a set of financial and economic ratios in a predictive corporate bankruptcy
model with the purpose of creating a fundamental credit rating model for each industrial sector. Results of the
model are obtained by applying newly developed numerical methodologies, drawing together financial theory,
data mining and engineering design methodologies. The heart of MORE is a multi dimensional and multi objective
algorithm that produces a classification of each company, by taking into account any attributes (such as sector and
country) characterizing a firm.
The model gives the opportunity to assign a rating to a company even without considering a complete data analysis
and allows to process quality information. It induces a better understanding of a company’s strength and weakness
thanks to sophisticated data mining tools and taking into account the analyst knowledge.
The MORE rating vision is to look at the fundamental economics of the company. The main idea is to evaluate the
rating observing every aspect of the economical and financial behavior of the company: better is the equilibrium
between the different aspects, better will be the final rating.
This is done studying, evaluating and aggregating the most important sections of the financial and economic
behavior of a company such as: profitability, liquidity, solvency, interest coverage and efficiency.
ELCOTEQ NETWORK SAWednesday, 21 September 2011
MORE Credit Rating
key
D C CC CCC B BB BBB A AA AAA
modeFinance TM srlVAT number [email protected]
Area Science Park,Padriciano 99. 34149 Trieste, ItalyTel. +39 040 3755337Fax +39 040 3756741
Rating scale
Rating class Rating macro class Assessment
AAA
Healthy
The company’s capacity to meet its financial commitments is extremely strong. The company shows an excellent
economic and financial flow and fund equilibrium.
AAThe company has very strong creditworthiness. It also has a good capital structure and economic and financial
equilibrium. Difference from AAA is slight.
AThe company has a high solvency. The company is however more susceptible to the adverse effects of changes in
circumstances and economic conditions than companies in higher rated categories.
BBB
Balanced
Capital structure and economic equilibrium are considered adequate. The company’s capacity to meet its financial
commitments could be affected by serious unfavourable events.
BBA company rated BB is more vulnerable than companies rated BBB. Furthermore the company faces major ongoing
uncertainties or exposure to adverse business, financial, or economic conditions.
B
Vulnerable
The company presents vulnerable signals with regards to its fundamentals. Adverse business, financial, or economic
conditions will be likely to impair the company’s capacity or willingness to meet its financial commitments.
CCC
A company rated CCC has a dangerous disequilibrium on the capital structure and on its economic and financial
fundamentals. Adverse market events and an inadequate management could affect with high probability the
company’s solvency.
CC
Risky
The company shows signals of high vulnerability. In the event of adverse market and economic conditions, the
company’s strong disequilibrium could increase.
CThe company shows considerable pathological situations. The company’s capacity to meet its financial
commitments is very low.
D The company has not any longer the capacity to meet its financial commitments.
ELCOTEQ NETWORK SAWednesday, 21 September 2011
MORE Credit Rating
key
D C CC CCC B BB BBB A AA AAA
modeFinance TM srlVAT number [email protected]
Area Science Park,Padriciano 99. 34149 Trieste, ItalyTel. +39 040 3755337Fax +39 040 3756741
Fundamental Credit Rating Ratios
Analysis area Ratio Assessment
Solvency ratios
Leverage ratioThis measures the level of total liabilities of the company in comparison
with equity.
Assets to debtThis indicates company’s solvency. The company shows a level of deficit
when the value of this ratio is under one unit.
Financial ratios Fixed Assets coverage ratioThis is calculated only for holdings. It measures the capital structure i.e.
whether a company covers the fixed assets with long term capital.
Liquidity ratios
Current ratioThis measures whether a company has sufficient short-term assets to cover
its short-term liabilities.
Quick ratioThis compares current liabilities only to those assets that can be readily
turned into cash.
Profitability and economic ratios
Return on Investement(ROI)This measures the profitability of company investments without regard to
the way the investment is financed.
Return on Equity(ROE) This measures the profitability of the equity.
Asset turnover
This indicates the investments turnover with regards to sales. The level
assumed from the ratio depends on the sector in which the company
operates.
Profit margin This indicates the profitability of sales.
Interest coverage ratio Interest Paid coverage
This indicate the ability of the company to cover interest expenses through
the economic margins (Gross profit and EBIT) and through the cash flow
from operating activities.
ELCOTEQ NETWORK SAWednesday, 21 September 2011
MORE Credit Rating
key
D C CC CCC B BB BBB A AA AAA
modeFinance TM srlVAT number [email protected]
Area Science Park,Padriciano 99. 34149 Trieste, ItalyTel. +39 040 3755337Fax +39 040 3756741
MORE Credit Limit, Probability of default and Confidence Level
MORE Credit Limit MORE Credit limit is the estimation of the amount of maximum credit that is possible to assign on a commercial
relationship with the analyzed company with an outlook of one year.
modeFinance used the following values associated with the company analyzed while computing the credit limit:
• Size;
• Years in Business;
• Average number of suppliers;
• Liquidity of the company and the comparison with its sector;
• The funds dedicated to be paid to suppliers;
• The likelihood that a company may pay its debts in the next 12 months (MORE Ratings).
The credit limit in this report is merely a suggested value of commercial credit limit calculated on the basis of annual
public data. This value should be reviewed by paying attention to the Confidence Level value and by using other
information such as other business information, news... etc; and private information such as the relationship with
client, history of payments, guarantees and the knowledge of the sector.
Probability of default e Confidence
Level
In addition to the MORE Rating, modeFinance also estimates the probability of default and provides a level of
confidence. The probability of default is the degree of certainty (in quantitative terms) that the company will go
into default.
As the probability of default is strongly affected by the economic climate that the company is operating in,
companies in the same MORE class will not necessarily have the same probability of default.
The MORE model can produce a MORE rating even if there is missing data by using an associated confidence level:
Confidence =
∑Available Information∑
Total Information
The level of confidence does not indicate financial confidence in the company. It is a reflection of the variations in
availability of financial data across Europe due to filing regulations and suggests the degree of financial detail the
MORE rating is able to take into account for each company.
For companies with fully populated records a confidence level of 100% would be applied: companies where no
financial data is provided, 0%. This puts the MORE rating in a context for the user and aids interpretation.
ELCOTEQ NETWORK SAWednesday, 21 September 2011
MORE Credit Rating
key
D C CC CCC B BB BBB A AA AAA
modeFinance TM srlVAT number [email protected]
Area Science Park,Padriciano 99. 34149 Trieste, ItalyTel. +39 040 3755337Fax +39 040 3756741
Notes and disclaimer
NOTES The present analysis was based on the company available financial statements as provided by Bureau Van Dijk
Electronic Publishing - ORBIS database (lack of both Notes to financial statements and Report on operations).
DISCLAIMER All Rights Reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any
form by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior permission of
the publisher modeFinance. The facts of this report are believed to be correct at the time of publication but cannot
be guaranteed. Please note that the findings, conclusions and recommendations that modeFinance delivers will
be based on information gathered in good faith from both primary and secondary sources, whose accuracy we
are not always in a position to guarantee. As such modeFinance can accept no liability whatever for actions taken
based on any information that may subsequently prove to be incorrect.
Contacts
Company modeFinance
Products MORE rating
Where AREA Science Park
34149 Trieste, via Padriciano 99 - ITALY
Info [email protected]
web www.modefinance.com
Phone +39 040 3755337