Rec Wafer Norway: modeFinance Credit Report

Thursday, 23 August 2012

REC WAFER NORWAY AS

MORE Credit Rating

C

D

CC CCC

B

BB BBB

A

AA AAA

key

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

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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.

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REC WAFER NORWAY AS

Identification number

NO986384030

Country

Norway

ZIP code and city

8160 - GLOMFJORD

Address

ORNESVEIEN 3 +47 75723000 www.recgroup.com Not available

Legal form

Limited liability company

Account

Unconsolidated

Incorporation date

2004/01/17

NACE 2 Sector

2013 - Manufacture of other inorganic basic chemicals

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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.

ASKMORE

Company name

Listed Status

Active

MORE Credit limit

Not assessable on the base of the available informations

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

907,256

706,079

479,047

CC

CC

BBB

35.00%

35.00%

0.55%

78%

100%

100%

12.41

6.23

2.52

1.08

1.16

1.40

Current Ratio

0.24

0.33

0.71

Quick Ratio

0.15

0.18

0.58

Probability of default

Plus

Basic

31/12/2010

Confidence Level

TM

Solvency ratios Leverage ratio Total asset/Total liabilities Liquidity ratios

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

-

-16.65

38.45

-66.65

-100.72

96.82

0.62

0.56

0.50

Interest paid weight

-

-0.16

0.01

EBITDA/Sales

-

-

-

EBIT interest coverage ratio

-

-1.92

62.12

EBITDA interest coverage ratio

-

3.78

76.32

Return on equity ROE (%) Asset turnover

Interest Coverage ratios

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

REC WAFER NORWAY AS

Thursday, 23 August 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

12.41

0.51

1.62

3.10

-2.15

Total asset/Total liabilities

1.08

2.95

1.61

1.23

0.92

Current Ratio

0.24

2.45

1.58

1.11

0.61

Quick Ratio

0.15

1.89

1.14

0.80

0.36

-

14.24

7.06

-0.08

-10.92

-66.65

15.77

9.32

-6.40

-77.72

Liquidity ratios

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

0.62

1.03

1.03

0.79

0.93

Interest paid weight

-

0.02

0.19

0.00

-0.12

EBITDA/Sales

-

0.16

0.10

0.03

-0.06

EBIT interest coverage ratio

-

54.79

4.14

-0.19

-5.68

EBITDA interest coverage ratio

-

59.16

6.89

1.36

-1.93

Interest Coverage ratios

Cash Conversion Cycle (days) Days Sales Of Inventory (DIO)

45

35

41

44

46

Days Sales Outstanding (DSO)

47

57

53

55

60

Days Payable Outstanding (DPO)

36

27

34

48

67

Cash Conversion Cycle (DIO + DSO - DPO)

56

65

62

51

45

-

218

425

137

37

CC

A

BBB

B

C

Numer of analyzed companies (Average) Rating

The sector has been chosen according to: international companies in the sector NACE 2 2013with financial data of year 2010.

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

REC WAFER NORWAY AS

Thursday, 23 August 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

REC WAFER NORWAY AS

Thursday, 23 August 2012 MORE Credit Rating

D

C

CC CCC

B

BB BBB

A

AA AAA

key

Balance Sheet BALANCE SHEET (th e)

31/12/2010

31/12/2009

31/12/2008

Accounting practice

Local GAAP

Local GAAP

Local GAAP

0.12765

0.1201

0.10265

Total assets

1,471,323

1,256,890

960,904

Fixed assets

1,177,566

933,442

523,139

53,896

25,690

8,252

Tangible fixed assets

718,626

649,353

414,862

Other fixed assets

405,044

258,399

100,025

293,757

323,448

437,765

Stocks

112,135

141,473

76,169

Debtors

116,317

115,592

51,997

65,305

66,383

309,599

47

62

52

Shareholders funds

109,750

173,932

272,951

Capital

109,750

6,395

56,970

0

167,536

215,981

1,361,572

1,082,958

687,953

162,225

94,042

69,111

Exchange rate NOK - EUR

Intangible fixed assets

Current assets

Other current assets Cash & cash equivalent

Other shareholders funds Total liabilities Non current liabilities

0

0

0

162,225

94,042

69,111

1,199,347

988,916

618,842

0

792,561

0

88,403

82,429

93,533

1,110,944

113,926

525,309

1,471,322

1,256,890

960,904

31/12/2010

31/12/2009

31/12/2008

Long term debt Other non-current liabilities Current liabilities Loans Creditors Other current liabilities Total shareh. funds & liab.

NET DEBT (th e) Short term debts

0

792,561

Long term debt

0

0

0

47

62

52

-47

792,499

-52

Cash & cash equivalent Net debt

31/12/2010 Working capital

31/12/2009

0

31/12/2008

140,049

174,636

34,633

-905,590

-665,468

-181,077

31/12/2010

31/12/2009

31/12/2008

Net Current Assets

Days Sales Of Inventory (DIO)

45

73

58

Days Sales Outstanding (DSO)

47

60

40

Days Payable Outstanding (DPO)

36

43

71

Cash Conversion Cycle (DIO + DSO - DPO)

56

90

27

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

REC WAFER NORWAY AS

Thursday, 23 August 2012 MORE Credit Rating

D

C

CC CCC

B

BB BBB

A

AA AAA

key

Income Statement INCOME STATEMENT (th e)

31/12/2010

31/12/2009

31/12/2008

Accounting practice

Local GAAP

Local GAAP

Local GAAP

Exchange rate NOK - EUR

0.12765

0.1201

0.10265

Sales

907,256

706,079

479,047

28

47

-

0

0

0

Operating revenue / turnover

907,256

706,079

479,047

Total costs

803,601

577,734

308,403

Costs growth (%)

39

87

-

Service costs

130,901

46,131

41,738

Material costs

568,744

463,071

216,109

Costs of employees

103,955

68,532

50,556

EBITDA

103,656

128,345

170,644

Depreciation

101,418

193,704

31,743

Revenues growth (%) Other revenues +/- variation in inventories and contract in progress + Fixed assets own construction capitalized

EBIT

2,238

-65,359

138,901

-103,744

-177,877

228,339

Financial revenue

61,933

161,128

285,513

Financial expenses

165,676

339,005

57,175

-

33,960

2,236

-101,506

-243,236

367,240

0

0

0

0

0

0

Financial P/L

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

0

0

0

-101,506

-243,236

367,240

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

-28,355

-68,056

102,978

P/L for period

-73,150

-175,180

264,262

31/12/2010

31/12/2009

31/12/2008

28,267

18,524

296,005

-

52,959

451,775

31/12/2009

31/12/2008

Cash flow Added value

31/12/2010 Number of employees

1,104

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-

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

-

REC WAFER NORWAY AS

Thursday, 23 August 2012 MORE Credit Rating

D

C

CC CCC

B

BB BBB

A

key

Evolutions and trends

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

REC WAFER NORWAY AS

Thursday, 23 August 2012 MORE Credit Rating

D

C

CC CCC

B

BB BBB

A

AA AAA

key

Qualitative information Full overview

The company, which is based in Norway, is engaged in the production and wholesale distribution of silicon wafers to the international solar market, primarily continental Europe, the United States, and Asia. It is a privately held company established in 1994 and has its registered corporate headquarters located in Glomfjord. The company is one of the world’s largest suppliers of silicon wafers to the solar energy industry. In addition, it aims to play a leading role and a key contributor in shaping the future of the solar energy industry.

History

Not available.

Primary business line

Engaged in the production and wholesale distribution of silicon wafers to the international solar market.

Secondary business line

Not available.

Main activity

Manufacturing; Wholesale.

Secondary activity

Not available.

Main products and services

Silicon wafers.

Size estimate

One of the world’s largest suppliers of silicon wafers to the solar energy industry.

Strategy, organization and policy

Aims to play a leading role and a key contributor in shaping the future of the solar energy industry.

Strategic alliances

Not available.

Membership of a network

Not available.

Main brand names

Not available.

Main domestic country

Norway.

Main foreign countries or regions

Europe; Asia; United States.

Main production sites

Norway.

Main distribution sites

Not available.

Main sales representation sites

Not available.

Main customers

International solar market.

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

REC WAFER NORWAY AS

Thursday, 23 August 2012 MORE Credit Rating

D

C

CC CCC

B

BB BBB

A

AA AAA

key

Auditor/Advisor/Bank name

type

address

KPMG AS

Auditor

-

Board name

date of birth

nationality

function

Mr. Ole Enger Mr. Tom Bagstevold Mr. Bjorn Brenna Mrs. Silje Johnsen Dr Florian Nikolaus Krumbacher

14/03/1948 12/04/1971 26/05/1956 19/10/1976 11/09/1966

-

Chairman Board Member Board Member Employees Representative; Deputy board member Board Member

Mr. Cato Runar Olsen Mr. Rune Sorensen Mr. Arnt Hermod Tangen

05/07/1967 15/04/1966 06/01/1968

-

Employees Representative Employees Representative Employees Representative

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

RENEWABLE ENERGY CORPORATION ASA - REC Country ISO code NACE Rev. 2, Core code

NO -

Direct % Total % Address : Not available

100.00 100.00

B

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

2329.22 4085.14

Number of Employees Information date

3587 2012/01

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

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

NO

BBB

Operating Revenue (MIL $)

100.00 100.00

Total Assets (MIL $) Number of Employees Information date

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0 1.78 2012/01

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

REC WAFER NORWAY AS

Thursday, 23 August 2012 MORE Credit Rating

D

C

CC CCC

B

BB BBB

A

AA AAA

key

Rating:

REC WAFER PTE LTD Country ISO code NACE Rev. 2, Core code Direct % Total %

SG 100.00 100.00

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

100.00 100.00

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

NO 20.00 -

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

Rating:

REC WAFER PTE LTD Country ISO code NACE Rev. 2, Core code Direct % Total %

Rating:

MELﾃ郎 BEDRIFTSSERVICE AS Country ISO code NACE Rev. 2, Core code Direct % Total %

2012/01

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2009/12 A

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

4.01 3.3 17 2012/01

REC WAFER NORWAY AS

Thursday, 23 August 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

REC WAFER NORWAY AS

Thursday, 23 August 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

REC WAFER NORWAY AS

Thursday, 23 August 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

REC WAFER NORWAY AS

Thursday, 23 August 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

REC WAFER NORWAY AS

Thursday, 23 August 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

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