Central European Distribution: modeFinance Credit Report

Page 1

Monday, 08 April 2013

CENTRAL EUROPEAN DISTRIBUTION CORPORATION

MORE Credit Rating

C

D

CC CCC

B

BB BBB

A

AA AAA

key

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CENTRAL EUROPEAN DISTRIBUTION CORPORATION

Identification number

Not available

Country

United States of America

ZIP code and city

08054 - MOUNT LAUREL

Address

SUITE 265 +1 856 273 6980 www.cedc.com cedc@ced - c.com

Legal form

Not available

Account

Consolidated

Incorporation date

1997/09/04

NACE 2 Sector

4634 - Wholesale of beverages

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ASKMORE

Company name

Listed Status

Active

MORE Credit limit

2,600,000 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.

31/12/2010

31/12/2009

641,136

525,194

478,560

CCC

B

BB

16.00%

3.80%

1.20%

100%

100%

100%

Leverage ratio

8.73

1.18

1.63

Total asset/Total liabilities

1.11

1.85

1.61

Current Ratio

1.40

1.96

1.29

Quick Ratio

1.15

1.73

1.22

Probability of default

Plus

Basic

31/12/2011

Confidence Level

TM

Solvency ratios

Liquidity ratios

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

-57.95

-1.91

4.95

-638.31

-9.01

4.65

0.41

0.21

0.16

-0.10

-1.65

0.56

0.36

0.44

0.51

-9.22

-0.54

1.62

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

key askMORETM is a registered mark of modeFinanceTM

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


CENTRAL EUROPEAN DISTRIBUTION CORPORATION

Monday, 08 April 2013 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

8.73

0.63

2.80

9.89

-3.07

Total asset/Total liabilities

1.11

2.59

1.36

1.08

0.97

Current Ratio

1.40

2.30

1.30

1.04

0.94

Quick Ratio

1.15

1.63

0.90

0.71

0.59

Liquidity ratios

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

-57.95

13.88

5.19

1.27

-7.29

Return on equity ROE (%)

-638.31

16.80

10.57

2.29

-104.60

Asset turnover

0.41

2.41

2.21

2.14

2.13

Interest paid weight

-0.10

0.01

0.11

0.24

-0.05

Gross Profit/Operating revenue

0.36

0.18

0.15

0.11

0.13

-9.22

131.70

7.65

1.13

-13.40

Interest Coverage ratios EBIT interest coverage ratio Cash Conversion Cycle (days) Days Sales Of Inventory (DIO)

52

28

36

41

36

Days Sales Outstanding (DSO)

181

42

55

60

63

Days Payable Outstanding (DPO)

64

24

46

61

59

Cash Conversion Cycle (DIO + DSO - DPO)

169

47

45

37

41

-

495

1,997

948

165

CCC

A

BB

B

CC

Numer of analyzed companies (Average) Rating

The sector has been chosen according to: international companies in the sector NACE 2 4634 with financial data of year 2011.

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


CENTRAL EUROPEAN DISTRIBUTION CORPORATION

Monday, 08 April 2013 MORE Credit Rating

D

C

CC CCC

B

BB BBB

A

key

Sector Analysis - Graphs

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

AA AAA


CENTRAL EUROPEAN DISTRIBUTION CORPORATION

Monday, 08 April 2013 MORE Credit Rating

C

D

CC CCC

B

BB BBB

A

AA AAA

key

Balance Sheet BALANCE SHEET (th e)

31/12/2011

31/12/2010

31/12/2009

Accounting practice

Local GAAP

Local GAAP

Local GAAP

0.7729

0.748

0.6942

12

12

12

Total assets

1,558,635

2,503,648

3,081,424

Fixed assets

1,040,664

1,931,722

1,988,134

Intangible fixed assets

876,530

1,556,085

1,566,912

Tangible fixed assets

136,533

142,030

149,879

27,601

233,606

271,343

517,971

571,926

1,093,289

90,958

68,722

64,012

Debtors

317,541

324,010

329,811

Other current assets

109,473

179,195

699,466

72,965

91,343

87,768

160,233

1,146,831

1,169,764

562

530

482

159,672

1,146,301

1,169,282

Total liabilities

1,398,402

1,356,817

1,911,660

Non current liabilities

1,028,205

1,065,165

1,066,238

Long term debt

956,230

936,446

924,486

71,975

128,720

141,752

370,197

291,652

845,422

857

567

334

Creditors

111,907

69,444

78,444

Other current liabilities

257,433

221,641

766,644

1,558,635

2,503,648

3,081,424

31/12/2011

31/12/2010

31/12/2009

Exchange rate USD - EUR Number of months

Other fixed assets Current assets Stocks

Cash & cash equivalent Shareholders funds Capital Other shareholders funds

Other non-current liabilities Current liabilities Loans

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

857

567

334

956,230

936,446

924,486

72,965

91,343

87,768

884,122

845,670

837,052

31/12/2011

31/12/2010

31/12/2009

Working capital

296,591

323,287

315,380

Net Current Assets

147,774

280,274

247,867

31/12/2011

31/12/2010

31/12/2009

Days Sales Of Inventory (DIO)

52

48

49

Days Sales Outstanding (DSO)

181

225

252

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

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

64

48

60

169

225

241

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


CENTRAL EUROPEAN DISTRIBUTION CORPORATION

Monday, 08 April 2013 MORE Credit Rating

C

D

CC CCC

B

BB BBB

A

AA AAA

key

Income Statement INCOME STATEMENT (th e)

31/12/2011

31/12/2010

31/12/2009

Accounting practice

Local GAAP

Local GAAP

Local GAAP

0.7729

0.748

0.6942

12

12

12

Exchange rate USD - EUR Number of months Sales Revenues growth (%) Other revenues +/- variation in inventories and contract in progress + Fixed assets own construction capitalized Operating revenue / turnover

641,136

525,194

478,560

22

10

-

0

0

0

641,136

525,194

478,560

1,435,848

568,272

340,101

Costs growth (%)

153

67

-

Service costs

-

-

-

Material costs

-

-

-

Costs of employees

-

-

-

36,891

61,530

157,123

Total operating costs

EBITDA Depreciation EBIT Financial P/L Financial revenue Financial expenses

831,603

104,609

18,664

-794,712

-43,078

138,460

-194,670

-83,911

-71,297

1,067

3,329

7,587

195,737

87,239

78,884

86,203

79,120

85,311

-989,382

-126,989

67,163

-6,141

3,726

48

Extr. and other revenue

-

-

-

Extr. and other expenses

-

-

-

-995,524

-123,263

67,211

Interest paid P/L before tax Extr. and other P/L

P/L before tax + Extr. and other P/L Taxation P/L for period

27,263

-19,984

12,838

-1,022,787

-103,279

54,372

31/12/2011

31/12/2010

31/12/2009

Costs of Good Sold

409,997

293,561

236,347

Gross Profit

231,139

231,633

242,213

1,025,851

274,711

103,753

Other Operating Expenses

31/12/2011 Cash flow Added value

73,036

-

-

-

4,540

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

31/12/2009

1,330

31/12/2011 Number of employees

31/12/2010

-191,184

31/12/2010

31/12/2009

4,150

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

7,550


CENTRAL EUROPEAN DISTRIBUTION CORPORATION

Monday, 08 April 2013 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


CENTRAL EUROPEAN DISTRIBUTION CORPORATION

Monday, 08 April 2013 MORE Credit Rating

D

C

CC CCC

B

BB BBB

A

AA AAA

key

Qualitative information Full overview

The company is engaged in the importation and distribution of alcoholic beverages, as well as manufacture and marketing of vodka in the United States. It has its corporate headquarters in Bala Cynwyd, Pennsylvania in United States of America. The company was founded in 1990 by William O. Carey and his partner Jeffrey Peterson as Carey Agri International Poland Sp. z. o. o. The company is the leading distributor and importer of alcoholic beverages in Poland. It operates the largest nationwide next - day alcoholic beverage delivery service with 16 distribution centers and 76 satellite branches located throughout Poland. It imports many of the world’s leading brands to Poland, including brands such as Rémy Martin, Jagermeister, Metaxa, Jim Beam, Sauza Tequila, Grant’s, E&J Gallo, Sutter Home, Torres, Penfolds and Concha y Toro wines, Corona, Foster’s, and Guinness Stout beers and Evian. The company is also one of the world’s largest vodka producers. It produces and markets approximately 8.5 million nine - liter cases of vodka every year in the four main vodka segments in Poland: top premium, premium, mainstream, and economy. Its product mix includes imported and domestic beer, Polish vodka, imported spirits, wines, soft drinks, and water. Some of the company’s main brands include Crysta Slaska, Soplica Staropolska, Soplica Cherry, Soplica Szlachetna, Absolwet, and Batory among others. The company’s mission is to delivering products of the highest quality, enjoying consumers recognition and achieving leading positions in the market, assuring the company’s profitability and creating value for our shareholders.

History

Founded by William O. Carey and his partner Jeffrey Peterson as Carey Agri International Poland Sp. Z. O. O.

Primary business line

Engaged in the importation and distribution of alcoholic beverages, as well as manufacture and marketing of vodka in the United States.

Secondary business line

Not available.

Main activity

Wholesale; Manufacturing.

Secondary activity

Not available.

Main products and services

Alcoholic beverages.

Size estimate

Leading distributor and importer of alcoholic beverages in Poland; One of the world’s largest vodka producers.

Strategy, organization and policy

To delivering products of the highest quality, enjoying consumers recognition and achieving leading positions in the market, assuring the company’s profitability and creating value for its shareholders.

Strategic alliances

Not available.

Membership of a network

Not available.

Main brand names

Rémy Martin; Jagermeister; Metaxa; Jim Beam; Sauza Tequila; Grant’s; E&J Gallo; Sutter Home; Torres; Penfolds and Concha y Toro; Corona; Foster’s; Guinness Stout; Evian; Crysta Slaska; Soplica Staropolska; Soplica Cherry; Soplica Szlachetna; Absolwet; Batory.

Main domestic country

United States of America.

Main foreign countries or regions

Poland.

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


CENTRAL EUROPEAN DISTRIBUTION CORPORATION

Monday, 08 April 2013 MORE Credit Rating

D

C

CC CCC

B

BB BBB

A

AA AAA

key

Main production sites

United States of America.

Main distribution sites

United States of America; Poland.

Main sales representation sites

Not available.

Main customers

Not available.

Auditor/Advisor/Bank name

type

address

ERNST & YOUNG AUDIT SP Z O.O. American Stock Transfer & Trust

Auditor Transfer Agent

-

Board name

date of birth

nationality

function

Mr. Mr. Mr. Mr. Mr.

11/07/1980 1946 -

United States -

Vice Chairman of the Board, Lead Director Director Director Director Independent Director

-

Switzerland

Independent Director

N. Scott Fine Jose Aragon David Alain Bailey Joseph J Farnan Alessandro Picchi

Mr. Markus Walter Sieger

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

ROUST TRADING LTD Country ISO code NACE Rev. 2, Core code Direct % Total % Address : Not available

BM 19.50

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

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

0 2013/03


CENTRAL EUROPEAN DISTRIBUTION CORPORATION

Monday, 08 April 2013 MORE Credit Rating

D

C

CC CCC

B

BB BBB

A

AA AAA

key

Rating:

RUSSIAN STANDARD VODKA LLC Country ISO code NACE Rev. 2, Core code Direct % Total % Address : Not available

RU 9.90 -

B

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

THE CLOSED JOINT STOCK COMPANY RUSSIAN STANDARD CORPORATION

Rating:

Country ISO code

Operating Revenue (MIL $)

NACE Rev. 2, Core code Direct % Total % Address : Not available

RU 9.90 -

Total Assets (MIL $) Number of Employees Information date

MC 9.40 -

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

NL

Operating Revenue (MIL $)

0.01 54.49 3 2011/11

Rating:

KAUFMAN MARK Country ISO code NACE Rev. 2, Core code Direct % Total %

99.89 183.42 239 2011/11

2012/11

Address : Not available

Rating:

ING GROEP NV via its funds Country ISO code NACE Rev. 2, Core code Direct % Total % Address : Not available

6.68

Total Assets (MIL $) Number of Employees Information date

Country ISO code NACE Rev. 2, Core code Direct %

5.60

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

Total % Address : Not available

-

23593.51 1541893.01 84718 2012/12

Rating:

CAREY WILLIAM V FAMILY

-

Information date

2012/11

Rating:

AA

US 4.49

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

9337 200451 10500 2012/12

Country ISO code NACE Rev. 2, Core code

US -

Operating Revenue (MIL $) Total Assets (MIL $)

2017.7 1830.07

Direct % Total % Address : Not available

4.48

Number of Employees Information date

9500 2012/12

BLACKROCK, INC. via its funds Country ISO code NACE Rev. 2, Core code Direct % Total % Address : Not available

Rating:

VANGUARD GROUP, INC. THE via its funds

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


CENTRAL EUROPEAN DISTRIBUTION CORPORATION

Monday, 08 April 2013 MORE Credit Rating

D

C

CC CCC

B

BB BBB

A

AA AAA

key

POWSZECHNY ZAKLAD UBEZPIECZEN SA via its funds

Rating:

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

PL 3.33

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

4471.02 15049.03 0 2011/12

Rating:

CCC

GB

Operating Revenue (MIL $)

AVIVA PLC via its funds Country ISO code NACE Rev. 2, Core code Direct % Total % Address : Not available

1.79

Total Assets (MIL $) Number of Employees Information date

US 1.51

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

GB

Operating Revenue (MIL $)

Rating:

STATE STREET CORPORATION via its funds Country ISO code NACE Rev. 2, Core code Direct % Total %

46383 471968.68 45341 2011/12

9681 222582 29660 2012/12

Address : Not available

Rating:

W & L ENTERPRISES LTD Country ISO code NACE Rev. 2, Core code Direct % Total % Address : Not available

1.40 -

A -

Total Assets (MIL $) Number of Employees Information date

0.6 0 2012/06

Rating:

DIMENSIONAL FUND ADVISORS LP via its funds Country ISO code NACE Rev. 2, Core code Direct %

US -

Total % Address : Not available

A

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

36.72 2186.66 260

1.32

Information date

2012/12

US 1.09

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

Country ISO code NACE Rev. 2, Core code

US -

Operating Revenue (MIL $) Total Assets (MIL $)

Direct % Total % Address : Not available

1.05

Rating:

NORTHERN TRUST CORPORATION via its funds Country ISO code NACE Rev. 2, Core code Direct % Total % Address : Not available

3896.04 97463.85 14156 2012/12

Rating:

STATE OF CALIFORNIA via its funds

Number of Employees Information date

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

2012/12

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


CENTRAL EUROPEAN DISTRIBUTION CORPORATION

Monday, 08 April 2013 MORE Credit Rating

D

C

CC CCC

B

BB BBB

A

AA AAA

key

Rating:

BANK OF AMERICA CORPORATION via its funds Country ISO code NACE Rev. 2, Core code Direct % Total % Address : Not available

US 0.81

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

Country ISO code

NO

Operating Revenue (MIL $)

NACE Rev. 2, Core code Direct % Total % Address : Not available

0.71

Total Assets (MIL $) Number of Employees Information date

FR 0.63

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

Rating:

GOVERNMENT OF NORWAY via its funds

2011/12

Rating:

AXA via its funds Country ISO code NACE Rev. 2, Core code Direct % Total %

81317 2209974 267000 2012/12

99110.15 930814.85 96999 2012/12

Address : Not available

BANK OF NEW YORK MELLON CORPORATION via its funds

Rating:

Country ISO code

Operating Revenue (MIL $)

NACE Rev. 2, Core code Direct % Total % Address : Not available

US 0.49

14555

Total Assets (MIL $) Number of Employees Information date

358990 49500 2012/12

KNIGHTSBRIDGE ASSET MANAGEMENT LLC via its funds

Rating:

Country ISO code NACE Rev. 2, Core code Direct %

US -

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

Total % Address : Not available

0.49

1 11

Information date

2012/12

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

CEDC INTERNATIONAL SP. Z O.O. Country ISO code NACE Rev. 2, Core code Direct % Total %

PL 100.00 100.00

653.11 1402.43

Number of Employees Information date

250 2012/01

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

CCC

Operating Revenue (MIL $) Total Assets (MIL $)

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


CENTRAL EUROPEAN DISTRIBUTION CORPORATION

Monday, 08 April 2013 MORE Credit Rating

D

C

CC CCC

B

BB BBB

A

AA AAA

key

Rating:

ARDY INVESTMENTS LIMITED Country ISO code NACE Rev. 2, Core code Direct % Total %

CY MO -

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

CY MO -

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

HU MO -

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

RU MO

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

RU MO -

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

Rating:

AUK HOLDINGS LIMITED Country ISO code NACE Rev. 2, Core code Direct % Total %

Rating:

BRAVO PREMIUM LLC Country ISO code NACE Rev. 2, Core code Direct % Total %

B

CEDC FINANCE CORPORATION INTERNATIONAL INC

Rating:

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

US MO -

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

US MO -

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

UA MO -

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

2011/12

2011/12

2011/12

Rating:

CHORNIY & MIKOLA. Country ISO code NACE Rev. 2, Core code Direct % Total %

36.06 25.56 296 2011/12

Rating:

CEDC FINANCE CORPORATION LLC Country ISO code NACE Rev. 2, Core code Direct % Total %

2011/12

Rating:

BRAVO RETAIL LLC Country ISO code NACE Rev. 2, Core code Direct % Total %

2011/12

Rating:

BOLS HUNGARY KFT Country ISO code NACE Rev. 2, Core code Direct % Total %

2011/12

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

2011/12


CENTRAL EUROPEAN DISTRIBUTION CORPORATION

Monday, 08 April 2013 MORE Credit Rating

D

C

CC CCC

B

BB BBB

A

AA AAA

key

Rating:

COPECRESTO ENTERPRISES LIMITED Country ISO code NACE Rev. 2, Core code Direct % Total %

CY MO -

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

GB MO -

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

RU MO -

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

RU MO -

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

RU MO -

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

CY MO

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

DE MO -

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

CY MO -

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

Rating:

DANCRAIG WINE & SPIRITS TRADING LIMITED Country ISO code NACE Rev. 2, Core code Direct % Total %

26 2011/12

Rating:

JELEGAT HOLDINGS LIMITED Country ISO code NACE Rev. 2, Core code Direct % Total %

2011/12

Rating:

ISF GMBH Country ISO code NACE Rev. 2, Core code Direct % Total %

2011/12

Rating:

GLOBAL WINE & SPIRIT HOLDINGS LIMITED Country ISO code NACE Rev. 2, Core code Direct % Total %

2011/12

Rating:

GLAVSPIRTTIREST OOO Country ISO code NACE Rev. 2, Core code Direct % Total %

2011/12

Rating:

FIRST TULA DISTILLERY OOO Country ISO code NACE Rev. 2, Core code Direct % Total %

2011/12

Rating:

DISTILLERY TOPAZ JSC Country ISO code NACE Rev. 2, Core code Direct % Total %

2011/12

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

2011/12


CENTRAL EUROPEAN DISTRIBUTION CORPORATION

Monday, 08 April 2013 MORE Credit Rating

D

C

CC CCC

B

BB BBB

A

AA AAA

key

JOIN STOCK COMPANY RUSSIAN ALCOHOL GROUP

Rating:

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

RU MO -

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

CY MO -

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

554.95 450.52 91 2011/12

Rating:

LATCHEY LIMITED Country ISO code NACE Rev. 2, Core code Direct % Total %

CCC

LIMITED LIABILITY COMPANY TH RUSSIAN ALCOHOL CENTRE

Rating:

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

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

RU MO -

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

2011/12

2011/12


CENTRAL EUROPEAN DISTRIBUTION CORPORATION

Monday, 08 April 2013 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.

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


CENTRAL EUROPEAN DISTRIBUTION CORPORATION

Monday, 08 April 2013 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.

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

The company’s capacity to meet its financial

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


CENTRAL EUROPEAN DISTRIBUTION CORPORATION

Monday, 08 April 2013 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

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


CENTRAL EUROPEAN DISTRIBUTION CORPORATION

Monday, 08 April 2013 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.

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


CENTRAL EUROPEAN DISTRIBUTION CORPORATION

Monday, 08 April 2013 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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