Solicited Credit Rating Report Page 1 of 16
Total Page:16
File Type:pdf, Size:1020Kb
Solicited Credit Rating Report Page 1 of 16 Solicited Credit Rating Report Confidential: This document contain confidential information and it is for internal use only. It might contain information that it is not up-to date. SYSTEMS SUNLIGHT S.A. INDUSTRIAL & COMMERCIAL CO OF DEFENSIVE ENERGY ELECTR.& TELEC. SYST. &MAN. PROC. REC. MAT. & TRADE Greek Company Name ΣΥΣΤΗΜΑΤΑ SUNLIGHT Α.Β.&Ε.Ε. ΑΜΥΝΤΙΚΩΝ ΕΝΕΡΓ. ΗΛΕΚΤΡ. & ΤΗΛΕΠ. ΣΥΣΤΗΜΑΤΩΝ & ΔΙΑΧ. ΕΠΕΞ. ΑΝΑΚ. ΥΛΙΚΩΝ & ΕΜΠ. ΑΝΑΚ. ΥΛΙΚΩΝ Trade Name: SYSTEMS SUNLIGHT S.A. ICAP ID 212758 Address 2 Ermou & Nikis, 10563, Athens, Attiki Tel. 2106245400 Fax 2106245479 U.R.L. www.systems-sunlight.com E-mail [email protected] Company Identification Sector Industry (Electric - Electronic Material) Legal Form Societe Anonyme Year Established 1994 Head Office Athens, Attiki Duration Up to year 2044 Gov. Gazette No 01606/1994 Tax Registr. No 094401108 General Business Registration No 1579901000 No of the Register of Societe Anonyme 031055 /004 /Β /94 /157 Member of ATHENS CHAMBER OF COMMERCE & INDUSTRY General Reg. No. 0133626 Exports Reg. No. 0036376 Chairman, CEO Basil Ang. Billis Capital Euro 44,394,950 Owners Equity Euro 48,087,470 (31/12/2018) Net Sales Euro 107,533,735 (1/1/2018 - 31/12/2018) Net Income for the Year Before Tax Euro 12,827,287 (1/1/2018 - 31/12/2018) No of Employees 815 Business Profile file://galaxy/URANUS/LAN/DATA%20BANK/NET/RATING%20COM/ICAP%20CRE... 18/7/2019 Solicited Credit Rating Report Page 2 of 16 Financial Status Good Payment Record Prompt Trend Downward ICAP Credit Rating ICAP Credit Rating: B (24/6/2019) The above mentioned Credit Rating has initiated at the request of the rated entity. Previous ICAP Credit Rating B 5/10/2018 Initial Credit Rating Assignment Date 31/12/2004 Rating Analyst VLACHOPOULOU MARIA Senior Analyst Rating Supervisor KEFALAS GIORGOS Senior Manager Rating Committee Evaluation YES Company's Opinion Agree Notification ICAP Credit Rating YES Credit Rating Key Elements Presentation The company SYSTEMS SUNLIGHT SA DEFENSE ENERGY ELECTRONICS AND TELECOMMUNICATIONS SYSTEMS field of activity is: - the construction of energy storage systems for industrial, consumer and advanced applications (batteries for motive power, reserve power, submarines, torpedoes, etc.) - the construction of energy power systems (generator sets, UPS, industrial air conditioning, etc.) - the provision of energy services (advisory and technical support, maintenance, training, etc.) The company concerned was founded in 1994, went by another name (ARION SA) and had a different field of activity. It was acquired in June of 2006 by GERMANOS SA, which was controlled by the businessman Mr. Panos Germanos. Up until October of 2014, Mr. Germanos was the sole shareholder. Until 2018, OLYMPIA GROUP SA HOLDINGS was the sole shareholder of the company and the Group. At the beginning of 2019, the sole shareholder proceeded with the sale of the titleholders shares to OLYMPIA GROUP LTD, based in Cyprus. It is noted that OLYMPIA GROUP LTD is the sole shareholder of OLYMPIA GROUP SA HOLDINGS. The company's headquarters are located in Athens and industrial facilities of considerable size are located in New Olvio in the Prefecture of Xanthi and in the Komotini industrial area. The company's battery plant is the largest in Europe and the most advanced in the field of industrial battery production. SYSTEMS SUNLIGHT is the parent company of the same named Group which participates in companies in Greece and abroad (Romania, Italy). Within 2018, the absorption of its subsidiary with a field of activity in recycling batteries and the production of recycled lead and alloys was completed. SUNLIGHT RECYCLING S.A. has modern facilities in Komotini and is one of the most advanced battery recycling plants in Europe. The company concerned also participates (with 51%), along with a well-known foreign company which specializes in the field of defence applications and systems, in a domestic company developing and producing batteries exclusively for defence applications. Moreover, SYSTEMS SUNLIGHT participates in the share capital of companies abroad which are active in the distribution of batteries. At the end of 2017, SYSTEMS SUNLIGHT proceeded to establish a 100% subsidiary company in Italy, with the object of assembling and trading industrial batteries. On May 1st, 2018, a fire occurred in the large scale industrial battery segment at the Xanthi plant, causing significant material damage to the industrial battery manufacturing complex and damage of a lesser extent to the submarine battery production segment. The carrying value of the destroyed tangible fixed assets and inventories so far has amounted to 32.7 million. As a result, the company's production activity has been limited to the production of batteries for use in the defence industry, while the trading activity of lightweight applications batteries continued at the usual rate. Its noted that the company has already received the total amount of compensation from the insurance companies. By the end of 2018, 50% of the plant's production capacity has been restored, while, currently, the restoration of the overall operation is almost complete. On 07/2018, the sale of the Toshiba consumer battery industry was completed for a price of 5.36 million to WESTNET DISTRIBUTION SA, a subsidiary company of OLYMPIA Group active in the technology products trading field. The company concerned has a wide range of clientele consisting mainly of foreign companies. Its clients are active in the field of industry, transport, telecommunications, information technology and construction. Also included in the clientele are the armed forces (Navy) of various countries. Its noted that most of the turnover (93%) comes from sales abroad. file://galaxy/URANUS/LAN/DATA%20BANK/NET/RATING%20COM/ICAP%20CRE... 18/7/2019 Solicited Credit Rating Report Page 3 of 16 Evaluation/Suppositions This report concerns the evaluation of the parent company SYSTEMS SUNLIGHT SAs creditworthiness. The evaluation covers the risk of inconsistency and/or bankruptcy by the company concerned and is based on the following: The company's Detailed Financial Statements for the years 2016, 2017, 2018 that the company has provided us with. The Groups Detailed Financial Statements on a consolidated basis. The analysis of bank liabilities and financing terms as well as the use of loan funds. The company's business data regarding management, export activity, customer size, credit risk management practices, etc. The assessment of the conditions and prospects of the industry in which the company operates. The assessment of the broader macroeconomic environment. Business Activity The company's revenues are derived, to a large degree, from energy accumulator sales. The accumulators manufactured/marketed by the company concerned are divided into four categories: motive power batteries reserve power batteries power batteries for defence applications Motive power batteries are mainly used in forklifts. Clients are companies that use forklifts (industries, logistics, etc.) and replace existing batteries due to age, as well as businesses that market the companys products or use its products to produce their own. Clients also include well-known manufacturers of forklifts (first-time battery placement). Ninety-five percent of sales from this product category are derived from exports. Reserve power batteries are used by telecom providers, power generation companies, railway networks, utilities, etc. Also, a significant part of this product categorys sales are from abroad. Power batteries for defence applications are used by the armed forces (Navy), both in Greece and abroad, in submarine vessels and weapons systems (torpedoes). Its noted that within the year, the company proceeded with the development and marketing of new lithium batteries (Li.On Force), which incorporate IoT technology and respond to the increased market needs mainly of industrial use vehicles (eIVs). These products are derived from the utilization of the company's long-standing experience at the R&D level in lithium technology. Its clientele also includes foreign companies that are competitors in some of the above areas of activity.v The high geographic dispersion presented by the company's activities limits the risks of dependence on specific markets and contributes positively to this evaluation. Another positive factor is the quality of titleholders clientele, which includes notable and large-scale foreign companies as well as the armed forces of states. In addition to limiting credit risk, the above are also positively assessed in terms of prospects for securing future business progress. IndustryCompetition Due to the field of activity and the strong export activity, the company's sales are not dependent on the course of the domestic GDP but on growth at a global level. Also, the course of the industry is influenced both by the development/supply of new technological products and by the total volume of replacement batteries each year due to their age. Its noted that 80% of forklifts used in the European Union are driven by motive power batteries, and in the United States the number of electrically driven forklifts is gradually increasing. Also noted is that the main volume of SYSTEMS SUNLIGHTs sales comes from replacement motive power batteries. Regarding the defence systems/applications industry, competition comes from companies in the same field of activity as the company concerned, which are based abroad (European Union, United States, etc.) In