Richard Ginori: modeFinance Credit Report

Page 1

Thursday, 10 May 2012

RICHARD - GINORI 1735 S.P.A.

MORE Credit Rating

C

D

CC CCC

B

BB BBB

A

AA AAA

key

Company name

RICHARD - GINORI 1735 S.P.A.

Identification number If you want to know more, ASKMORE modeFinance’s credit report.

TM

Almost every day millions of people around the world are wondering the real creditworthiness of the companies with which they are in business. Every day these questions remain unanswered. modeFinance now aims to answer these questions in a simple, complete and immediate way. TM

Country

Italy

ZIP code and city

50019 - SESTO FIORENTINO

Address

Via Giulio Cesare 21 +39 055 42 04 91 www.richardginori1735.com amministrazione@richardginori1735.com

Legal form

Joint stock company

Account

Consolidated

Incorporation date NACE 2 Sector

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ASKMORE

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2341 - Manufacture of ceramic household and ornamental articles

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ASKMORE is the modeFinance product which gives the chance to evaluate the credit risk for every company from all around the world.

Listed Status

Active

MORE Credit limit

410,000 e

plans 3 types of reports:

Turnover (th e) Rating s-peek

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ASKMORE Basic: This report includes modeFinance ’ s MORE Credit Ratings and MORE Credit Limit to help you in the decision making. It covers all essential information including financial statements of the last three years and descriptive information including trade description and sector analysis. This report type is ideally suited for decisions on transactions with each level of credit risk.

31/12/2009

31/12/2008

37,011

29,845

29,704

CCC

CC

CCC

13.00%

35.00%

13.00%

100%

100%

100%

Leverage ratio

4.35

5.26

3.24

Total asset/Total liabilities

1.23

1.19

1.31

Current Ratio

0.91

0.93

1.33

Quick Ratio

0.36

0.45

0.60

Probability of default

Plus

Basic

31/12/2010

Confidence Level

TM

Solvency ratios

Liquidity ratios

Profitability and economic equilibrium ratios Return on investement ROI (%)

-11.90

-20.06

-11.02

Return on equity ROE (%)

-87.74

-137.73

-54.28

0.65

0.48

0.53

-0.14

-0.10

-0.18

0.41

0.14

0.27

-7.30

-9.01

-5.53

Asset turnover Interest paid weight Gross Profit/Operating revenue Interest Coverage ratios EBIT interest coverage ratio

Analysis and trend of financial strength

modeFinance Headquarter Building A - AREA Science Park Padriciano 99 - 34149 Trieste - Italy Ph.: +39 040 375 5337 Fax: +39 040 375 6741 info@modefinance.com TM

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MORE Credit Rating

D not available

non return

C

CC

extremly pathological pathological

CCC

B

BB

BBB

A

AA

AAA

high danger

weak

sufficient

adequate

good

very strong

extremely strong


RICHARD - GINORI 1735 S.P.A.

Thursday, 10 May 2012 MORE Credit Rating

D

C

CC CCC

B

BB BBB

A

AA AAA

key

Sector Analysis Company

Healthy

Balanced

Vulnerable

Risky

Solvency ratios Leverage ratio

4.35

0.47

1.58

3.66

-1.74

Total asset/Total liabilities

1.23

3.13

1.63

1.23

0.98

Current Ratio

0.91

2.50

1.43

1.05

0.71

Quick Ratio

0.36

1.97

1.04

0.71

0.45

Return on investement ROI (%)

-11.90

13.34

4.54

0.36

-7.42

Return on equity ROE (%)

-87.74

14.33

5.39

-4.73

-93.09

Liquidity ratios

Profitability and economic equilibrium ratios

Asset turnover

0.65

1.22

1.04

0.91

0.87

Interest paid weight

-0.14

0.01

0.20

0.00

-0.17

Gross Profit/Operating revenue

0.41

0.27

0.20

0.13

0.07

-7.30

87.80

3.57

0.03

-4.21

Days Sales Of Inventory (DIO)

189

35

42

55

54

Days Sales Outstanding (DSO)

108

59

71

74

61

Days Payable Outstanding (DPO)

86

27

46

62

70

Cash Conversion Cycle (DIO + DSO - DPO)

211

67

74

76

52

-

1,538

4,072

2,382

600

CCC

A

BB

B

CC

Interest Coverage ratios EBIT interest coverage ratio Cash Conversion Cycle (days)

Numer of analyzed companies (Average) Rating

The sector has been chosen according to: international companies in the sector NACE 2 23 with financial data of year 2010.

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Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741


RICHARD - GINORI 1735 S.P.A.

Thursday, 10 May 2012 MORE Credit Rating

D

C

CC CCC

B

BB BBB

A

key

Sector Analysis - Graphs

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Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741

AA AAA


RICHARD - GINORI 1735 S.P.A.

Thursday, 10 May 2012 MORE Credit Rating

C

D

CC CCC

B

BB BBB

A

AA AAA

key

Balance Sheet BALANCE SHEET (th e)

31/12/2010

31/12/2009

31/12/2008

IFRS

IFRS

IFRS

1

1

1

Total assets

56,974

62,490

55,708

Fixed assets

25,014

25,730

25,163

886

205

199

18,146

20,438

19,917

Accounting practice Exchange rate EUR - EUR

Intangible fixed assets Tangible fixed assets

5,982

5,087

5,047

31,960

36,760

30,545

Stocks

19,130

18,762

16,874

Debtors

10,949

15,169

10,764

1,881

2,829

2,907

916

2,116

810

Other fixed assets Current assets

Other current assets Cash & cash equivalent Shareholders funds

10,650

9,989

13,147

Capital

27,687

16,780

16,780

-17,037

-6,791

-3,633

Total liabilities

46,324

52,501

42,561

Non current liabilities

11,147

12,797

19,678

Long term debt

3,782

3,489

10,197

Other non-current liabilities

7,365

9,308

9,481

35,177

39,704

22,883

Other shareholders funds

Current liabilities

0

0

0

8,723

12,655

8,296

26,454

27,049

14,587

56,974

62,490

55,708

31/12/2010

31/12/2009

31/12/2008

Loans Creditors Other current liabilities Total shareh. funds & liab. NET DEBT (th e) Short term debts Long term debt Cash & cash equivalent Net debt

0

0

0

3,782

3,489

10,197

916

2,116

810

2,866

1,373

9,387

31/12/2010

31/12/2009

31/12/2008

Working capital

21,356

21,276

19,342

Net Current Assets

-3,217

-2,944

7,662

31/12/2010

31/12/2009

31/12/2008

Days Sales Of Inventory (DIO)

189

229

207

Days Sales Outstanding (DSO)

108

186

132

86

155

102

211

260

237

Days Payable Outstanding (DPO) Cash Conversion Cycle (DIO + DSO - DPO)

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Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741


RICHARD - GINORI 1735 S.P.A.

Thursday, 10 May 2012 MORE Credit Rating

C

D

CC CCC

B

BB BBB

A

AA AAA

key

Income Statement INCOME STATEMENT (th e)

31/12/2010

31/12/2009

31/12/2008

IFRS

IFRS

IFRS

1

1

1

35,475

29,425

28,390

20.6

3.6

-

1,536

420

1,314

Operating revenue / turnover

37,011

29,845

29,704

Total operating costs

43,883

41,579

35,914

Costs growth (%)

6

16

-

Service costs

14,731

12,812

10,220

Material costs

11,174

12,009

9,389

Costs of employees

16,488

15,265

13,836

-5,382

-10,241

-3,741

1,490

1,493

2,469

-6,872

-11,734

-6,210

-850

-2,102

-1,053

Financial revenue

19

23

90

Financial expenses

869

2,125

1,143

Accounting practice Exchange rate EUR - EUR Sales Revenues growth (%) Other revenues +/- variation in inventories and contract in progress + Fixed assets own construction capitalized

EBITDA Depreciation EBIT Financial P/L

941

1,302

1,123

P/L before tax

-7,722

-13,836

-7,263

Extr. and other P/L

-1,518

215

22

-

-

-

Interest paid

Extr. and other revenue Extr. and other expenses P/L before tax + Extr. and other P/L Taxation

-

-

-

-9,240

-13,621

-7,241

104

137

-105

-9,344

-13,758

-7,136

31/12/2010

31/12/2009

31/12/2008

Costs of Good Sold

21,944

25,784

21,646

Gross Profit

15,067

4,061

8,058

Other Operating Expenses

21,939

15,795

14,268

31/12/2010

31/12/2009

31/12/2008

-7,854

-12,265

-4,667

9,471

4,165

10,397

P/L for period

Cash flow Added value

31/12/2010 Number of employees

396

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31/12/2009

31/12/2008

388

Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741

380


RICHARD - GINORI 1735 S.P.A.

Thursday, 10 May 2012 MORE Credit Rating

D

C

CC CCC

B

BB BBB

A

key

Evolutions and trends

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Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741

AA AAA


RICHARD - GINORI 1735 S.P.A.

Thursday, 10 May 2012 MORE Credit Rating

D

C

CC CCC

B

BB BBB

A

AA AAA

key

Qualitative information Full overview

Richard - Ginori 1735 is an Italy - based company active in the ceramics industry. The Company’s core activity is the production of ceramic tableware and homeware, offering a range of objects in porcelain and fine bone china for domestic use, as well as porcelain figurines and collectibles, which it sells to businesses in the hotel and catering industry and the general public. The Company is a leading Italian maker of fine porcelain and bone china dinnerware. The Company’s products may be classified under four main categories which are china tableware, gifts and articles for the home; products for use in hotels and coffee shops; fancy goods and capodimonte statuettes; and terracotta vases. It’s brand names include LAVENO Richard Ginori, MISSONIHOME, and LAURE JAPY PARIS. Richard - Ginori produces its products in its Sesto Fiorentino and Trequanda plants. The Company has retail outlets in Italy and France, and has its registered office located at Viale Giulio Cesare 50,50019 Sesto Fiorentino, Italy. The Company’s subsidiaries include the Museo Richard Ginori della Manifattura di Doccia S. p. A. which manages the Ginori museum located in Sesto Fiorentino; Richard Ginori Japan which is responsible for the distribution and marketing of Richard - Ginori’s products in the Japanese market; Ginori Real Estate, a real estate company created in order to carry out the sale of the real estate assets at Sesto Fiorentino; and Richard - Ginori 1735 INC., responsible for the marketing of Richard - Ginori products in the North American market.

History

Not available.

Primary business line

Production of ceramic tableware and homeware, offering a range of objects in porcelain and fine bone china for domestic use, as well as porcelain figurines and collectibles, which it sells to businesses in the hotel and catering industry and the general public.

Secondary business line

Not available.

Main activity

Manufacturing.

Secondary activity

Not available.

Main products and services

Not available.

Size estimate

Leading Italian maker of fine porcelain and bone china dinnerware.

Strategy, organization and policy

Not available.

Strategic alliances

Not available.

Membership of a network

Not available.

Main brand names

LAVENO Richard Ginori; MISSONIHOME; LAURE JAPY PARIS.

Main domestic country

Italy.

Main foreign countries or regions

France.

Main production sites

Sesto Fiorentino; Trequanda.

Main distribution sites

Italy; France.

Main sales representation sites

Italy; France.

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Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741


RICHARD - GINORI 1735 S.P.A.

Thursday, 10 May 2012 MORE Credit Rating

D

C

CC CCC

B

BB BBB

A

AA AAA

key

Main customers

Hotel; Catering industry; General public.

Auditor/Advisor/Bank name

type

address

KPMG S.P.A. DELOITTE & TOUCHE ITALIA SPA

Auditor Auditor

-

Board name

date of birth

nationality

function

Mr Roberto Villa Mr Giuseppe Bongiovanni Mr Aldo Cingolani Mr Roberto Giovanelli Mr Mario Lorenzoni

11/09/1952 26/01/1959 22/06/1946 07/09/1941

Italy Italy

Chairman of the Board of Directors Director Director Director Director

Sharehoders (the first twenty shareholders ordered by Direct %)) Rating:

STARFIN SRL Country ISO code NACE Rev. 2, Core code Direct % Total % Address: Not available

Operating revenue (MIL $) Total Assets (MIL $) Number of Employees Information date

-

Operating revenue (MIL $) Total Assets (MIL $)

Rating:

USBERTI PERIDE Country ISO code NACE Rev. 2, Core code Direct % Total % Address: Not available

-

IT 34.89 -

2.19 -

-

Number of Employees Information date

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5 5 27 2012/03

2011/05

Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741


RICHARD - GINORI 1735 S.P.A.

Thursday, 10 May 2012 MORE Credit Rating

D

C

CC CCC

B

BB BBB

A

AA AAA

key

Rating:

LEONI MARIA LUISA Country ISO code NACE Rev. 2, Core code Direct % Total % Address: Not available

IT -

-

Operating revenue (MIL $) Total Assets (MIL $) Number of Employees

<2.00

-

Information date

2010/02

Subsidiaries (the first twenty subsidiaries ordered by Direct %) Rating:

IMGIT 87 S.R.L. Country ISO code NACE Rev. 2, Core code Direct % Total %

IT 100.00 100.00

Direct % Total %

2 2010/12

Rating: IT -

CCC

Operating revenue (MIL $) Total Assets (MIL $)

100.00 100.00

2011/10

Rating:

Country ISO code NACE Rev. 2, Core code

Operating revenue (MIL $) Total Assets (MIL $)

IT 100.00 100.00

Direct % Total %

Direct % Total %

Direct % Total %

-

Operating revenue (MIL $) Total Assets (MIL $)

100.00 100.00

Number of Employees Information date

0 1 56 2010/12

Rating: IT -

C

Operating revenue (MIL $) Total Assets (MIL $)

100.00 100.00

Number of Employees Information date

RICHARD GINORI ASIA PACIFIC K.K. Country ISO code NACE Rev. 2, Core code

0 15 1 2010/12

Rating: IT -

NEGOZI RICHARD GINORI S.R.L. Country ISO code NACE Rev. 2, Core code

CCC

Number of Employees Information date

NEGOZI RICHARD GINORI Country ISO code NACE Rev. 2, Core code

0 6

Number of Employees Information date

MUSEO RICHARDGINORI DELLA MANIFATTURA DI DOCCIA SPA

Direct % Total %

0 4

Number of Employees Information date

IMMOBILIARE MUSEO DI DOCCIA S.R.L. Country ISO code NACE Rev. 2, Core code

C

Operating revenue (MIL $) Total Assets (MIL $)

JP 100.00 100.00

22 2011/06

Rating:

-

Operating revenue (MIL $) Total Assets (MIL $)

12 -

Number of Employees Information date

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5 5

2010/12

Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741


RICHARD - GINORI 1735 S.P.A.

Thursday, 10 May 2012 MORE Credit Rating

D

C

CC CCC

B

BB BBB

A

AA AAA

key

Rating:

RICHARD - GINORI 1735 INC. Country ISO code NACE Rev. 2, Core code Direct % Total %

Operating revenue (MIL $) Total Assets (MIL $) Number of Employees Information date

US MO -

Operating revenue (MIL $) Total Assets (MIL $) Number of Employees Information date

IT 50.00 -

Operating revenue (MIL $) Total Assets (MIL $) Number of Employees Information date

TR 49.00 -

Operating revenue (MIL $) Total Assets (MIL $) Number of Employees Information date

IT 1.99 -

Operating revenue (MIL $) Total Assets (MIL $) Number of Employees Information date

CCC 0 49 2010/12 -

Rating:

ARGILLA DI PETROIO SRL Country ISO code NACE Rev. 2, Core code Direct % Total %

2 5 2011/10

Rating:

RICHARD GINORI TURKEY Country ISO code NACE Rev. 2, Core code Direct % Total %

-

Rating:

GINORI REAL ESTATE SPA IN LIQUIDAZIONE Country ISO code NACE Rev. 2, Core code Direct % Total %

2010/12

Rating:

RICHARD GINORI 1735 INC Country ISO code NACE Rev. 2, Core code Direct % Total %

-

US 100.00 100.00

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2010/12 BBB

Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741

1 0 2011/03


RICHARD - GINORI 1735 S.P.A.

Thursday, 10 May 2012 MORE Credit Rating

D

C

CC CCC

B

BB BBB

A

AA AAA

key

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.

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Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741


RICHARD - GINORI 1735 S.P.A.

Thursday, 10 May 2012 MORE Credit Rating

D

C

CC CCC

B

BB BBB

A

AA AAA

key

Rating scale Rating class

Rating macro class

The company’s capacity to meet its financial commitments is extremely strong. The company shows an excellent

AAA

AA

Assessment

economic and financial flow and fund equilibrium. Healthy

The company has very strong creditworthiness. It also has a good capital structure and economic and financial equilibrium. Difference from AAA is slight. The company has a high solvency. The company is however more susceptible to the adverse effects of changes in

A

circumstances and economic conditions than companies in higher rated categories. Capital structure and economic equilibrium are considered adequate. The company’s capacity to meet its financial commitments could be affected by serious unfavourable events.

BBB Balanced

A 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.

BB

The company presents vulnerable signals with regards to its fundamentals. Adverse business, financial, or economic

B

conditions will be likely to impair the company’s capacity or willingness to meet its financial commitments. Vulnerable

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

The company shows signals of high vulnerability. In the event of adverse market and economic conditions, the company’s strong disequilibrium could increase. Risky

C

The company shows considerable pathological situations. commitments is very low.

D

The company has not any longer the capacity to meet its financial commitments.

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The company’s capacity to meet its financial

Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741


RICHARD - GINORI 1735 S.P.A.

Thursday, 10 May 2012 MORE Credit Rating

D

C

CC CCC

B

BB BBB

A

AA AAA

key

Fundamental Credit Rating Ratios Analysis area

Ratio

Assessment This measures the level of total liabilities of the company in comparison

Leverage ratio

with equity.

Solvency ratios

Financial ratios

Assets to debt

This indicates company’s solvency. The company shows a level of deficit when the value of this ratio is under one unit.

Fixed Assets coverage ratio

This is calculated only for holdings. It measures the capital structure i.e. whether a company covers the fixed assets with long term capital.

Current ratio

This measures whether a company has sufficient short-term assets to cover its short-term liabilities.

Liquidity ratios This compares current liabilities only to those assets that can be readily

Quick ratio

turned into cash.

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 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.

Profitability and economic ratios

Interest coverage ratio

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Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741


RICHARD - GINORI 1735 S.P.A.

Thursday, 10 May 2012 MORE Credit Rating

D

C

CC CCC

B

BB BBB

A

AA AAA

key

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 =

P Available Information P 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.

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Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741


RICHARD - GINORI 1735 S.P.A.

Thursday, 10 May 2012 MORE Credit Rating

D

C

CC CCC

B

BB BBB

A

AA AAA

key

Notes and disclaimer NOTES

modeFinance has based the present analysis on the company available financial statements, coming from one or more of the following sources: local providers, Commercial Register (Companies House), websites, modeFinance’s database etc.

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

Info web

modeFinance MORE rating AREA Science Park 34149 Trieste, via Padriciano 99 - ITALY info@modefinance.com www.modefinance.com

Phone

+39 040 3755337

Company Products Where

modeFinance srl VAT number 01168840328 info@modefinance.com www.modefinance.com TM

Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741


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