MALEV: modeFinance Credit Report

Page 1

Friday, 03 February 2012

MALEV Hungarian Airlines Ltd. MALEV Ltd.

MORE Credit Rating

C

D

CC CCC

B

BB BBB

A

AA AAA

key

Company name

MALEV Hungarian Airlines Ltd. MALEV Ltd.

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

TM

TM

Hungary

ZIP code and city

1097 - BUDAPEST

Address

Konyves Kalman krt. 12 - 14. +36 1 2353535 www.malev.hu malev@malev.hu

Legal form

Limited liability company

Account

Consolidated

Incorporation date

1992

NACE 2 Sector

5110 - Passenger air transport

TM

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

ASKMORE

Country

Listed Status

Active

MORE Credit limit

Not eligible for credit on the base of the available informations

plans 2 types of reports:

Turnover (th e)

31/12/2010

31/12/2009

31/12/2008

385,107

434,185

563,890

Rating Basic

C

C

C

42.00%

42.00%

42.00%

100%

100%

100%

-2.33

-1.64

-2.35

0.57

0.39

0.58

Current Ratio

0.63

0.33

0.38

Quick Ratio

0.57

0.29

0.33

Return on investement ROI (%)

-46.72

-72.00

-35.27

Return on equity ROE (%)

-69.84

-52.25

-55.97

2.04

3.18

3.65

Interest paid weight

-0.13

-0.14

-0.18

EBITDA/Sales

-0.20

-0.16

-0.06

EBIT interest coverage ratio

-7.21

-6.02

-4.60

EBITDA interest coverage ratio

-6.63

-5.17

-3.36

Probability of default

Plus TM

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.

Confidence Level

TM

Solvency ratios Leverage ratio Total asset/Total liabilties Liquidity ratios

Profitability and economic equilibrium ratios

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


MALEV Hungarian Airlines Ltd. MALEV Ltd.

Friday, 03 February 2012 MORE Credit Rating

D

C

CC CCC

B

BB BBB

A

AA AAA

key

Sector Analysis Company

Healthy

Balanced

Vulnerable

Risky

Leverage ratio

-2.33

Total asset/Total liabilties

0.57

0.56

2.40

4.74

-1.92

2.77

1.42

1.17

0.92

Current Ratio Quick Ratio

0.63

2.35

1.28

0.88

0.67

0.57

2.02

1.17

0.79

0.59

Return on investement ROI (%)

-46.72

20.00

6.39

1.05

-19.55

Return on equity ROE (%)

-69.84

23.37

10.40

-7.60

-108.80

Solvency ratios

Liquidity ratios

Profitability and economic equilibrium ratios

Asset turnover

2.04

1.66

1.32

1.00

1.33

Interest paid weight

-0.13

0.00

0.17

0.13

-0.10

EBITDA/Sales

-0.20

0.15

0.08

0.04

-0.08

EBIT interest coverage ratio

-7.21

331.80

4.60

0.03

-8.53

EBITDA interest coverage ratio

-6.63

231.80

7.83

1.65

-5.78

Days Sales Of Inventory (DIO)

8

14

8

11

7

Days Sales Outstanding (DSO)

24

34

33

33

33

Days Payable Outstanding (DPO)

51

12

27

37

48

Cash Conversion Cycle (DIO + DSO - DPO)

-19

36

20

9

-6

-

70

279

227

145

C

A

BB

B

CC

Interest Coverage ratios

Cash Conversion Cycle (days)

Numer of analyzed companies (Average) Rating

The sector has been chosen according to: international companies in the sector NACE 2 5110 with financial data of year 2009.

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


MALEV Hungarian Airlines Ltd. MALEV Ltd.

Friday, 03 February 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


MALEV Hungarian Airlines Ltd. MALEV Ltd.

Friday, 03 February 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

Exchange rate HUF - EUR

3.587E-03

3.691E-03

3.824E-03

Total assets

167,658

120,495

139,896

Fixed assets

86,760

45,412

62,689

1,410

1,885

2,680

Tangible fixed assets

66,444

42,899

58,284

Other fixed assets

18,905

628

1,725

80,898

75,083

77,207

Intangible fixed assets

Current assets

7,972

8,411

9,040

Debtors

25,445

28,053

35,772

Other current assets

47,481

38,618

32,395

29,791

13,048

8,363

-125,900

-189,433

-103,344

1,489

1,476

13,766

-127,389

-190,909

-117,110

Total liabilities

293,558

309,927

243,240

Non current liabilities

164,677

80,739

39,096

Long term debt

-

-

-

Other non-current liabilities

-

-

-

128,881

229,188

204,144

Stocks

Cash & cash equivalent Shareholders funds Capital Other shareholders funds

Current liabilities

-

23,399

29,770

53,815

71,736

88,030

-

134,053

86,344

167,658

120,495

139,896

31/12/2010

Loans Creditors Other current liabilities Total shareh. funds & liab. NET DEBT (th e)

31/12/2009

31/12/2008

Short term debts

-

23,399

29,770

Long term debt

-

-

-

29,791

13,048

8,363

-

-

-

Cash & cash equivalent Net debt

31/12/2010

31/12/2009

Working capital

-20,398

-35,272

31/12/2008 -43,218

Net Current Assets

-47,982

-154,105

-126,937

31/12/2010

31/12/2009

31/12/2008

Days Sales Of Inventory (DIO)

8

7

6

Days Sales Outstanding (DSO)

24

24

23

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

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

51

60

57

-19

-29

-28

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


MALEV Hungarian Airlines Ltd. MALEV Ltd.

Friday, 03 February 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 HUF - EUR

3.587E-03

3.691E-03

3.824E-03

341,792

383,134

510,424

-10.8

-24.9

-

43,314

51,051

53,466

Operating revenue / turnover

385,107

434,185

563,890

Total costs

453,443

496,552

594,063

Costs growth (%)

-9

-16

-

Service costs

368,881

396,026

481,706

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

314

1,470

612

84,248

99,057

111,744

-68,337

-62,367

-30,173

5,970

10,160

11,123

EBIT

-74,306

-72,527

-41,295

Financial P/L

-14,332

-26,279

-17,019

Financial revenue

27,944

37,596

56,872

Financial expenses

42,276

63,875

73,891

10,302

12,055

8,979

-88,638

-98,806

-58,314

826

153

831

13,458

202

880

Material costs Costs of employees EBITDA Depreciation

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

12,632

49

49

-87,812

-98,653

-57,483

116

321

358

-87,928

-98,973

-57,841

31/12/2010

31/12/2009

31/12/2008

-81,958

-88,813

-46,719

12,708

22,619

74,363

31/12/2010

31/12/2009

31/12/2008

P/L for period

Cash flow Added value

Number of employees

2,761

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3,000

3,277

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


MALEV Hungarian Airlines Ltd. MALEV Ltd.

Friday, 03 February 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


MALEV Hungarian Airlines Ltd. MALEV Ltd.

Friday, 03 February 2012 MORE Credit Rating

D

C

CC CCC

B

BB BBB

A

AA AAA

key

Qualitative information Full overview

The company, with registered office located in Budapest, Hungary, is an airline primarily engaged in passenger transport services. It is the national carrier of Hungary. The company also operates scheduled cargo and charter services. The company is recognized as one of the leading airlines in Central - Eastern Europe. Its fleet comprises six Boeing 737 - 600 NG (102 seats), seven Boeing 737 - 700 NG (119 seats), five Boeing 737 - 800 NG (three with 180 seats, two with 160 seats), one Boeing 767 - 200ER (185 seats), one Boeing 767 - 300ER (229 seats), five Fokker 70 (72 seats), and three CRJ 200 ER (50 seats). Throughout the winter period, the company operates scheduled flights to 48 cities in 34 countries (71 cities in 38 countries when taken together with code - share partner airlines). Its charter flights are conducted with Boeing 737 - 800 aircraft specially configured for charter traffic and long - haul Boeing 767 200ERs. The company is a private firm which was incorporated in December 1992.

History

Not available.

Primary business line

Primarily engaged in passenger transport services.

Secondary business line

Not available.

Main activity

Services.

Secondary activity

Not available.

Main products and services

Passenger transport services.

Size estimate

One of the leading airlines in Central - Eastern Europe.

Strategy, organization and policy

Not available.

Strategic alliances

Not available.

Membership of a network

Not available.

Main brand names

Not available.

Main domestic country

Hungary.

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.

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


MALEV Hungarian Airlines Ltd. MALEV Ltd.

Friday, 03 February 2012 MORE Credit Rating

D

C

CC CCC

B

BB BBB

A

AA AAA

key

Auditor/Advisor/Bank name

type

Deloitte Könyvvizsgáló és Tanácsadó Kft.

Auditor

address -

Gábor Gion MKB Bank Nyrt. Citibank Europe Plc. Mo - i Fióktelepe

Auditor Banker Banker

-

Board name

date of birth

nationality

function

dr. Janos Berenyi Mr Zoltan Kamaras

-

-

member of the board Member of the board of directors

Deloveri Anatoly dr. Marton Domonkos Schneller

-

-

Management member Management member

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

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

HU 95.00

-

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

-

Information date

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2010/03

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


MALEV Hungarian Airlines Ltd. MALEV Ltd.

Friday, 03 February 2012 MORE Credit Rating

D

C

CC CCC

B

BB BBB

A

AA AAA

key

Subsidiaries (the first twenty subsidiaries ordered by Direct %) AEROPLEX KÖZÉP - EURÓPAI LÉGIJÁRMU MUSZAKI KÖZPONT KORLÁTOLT FELELOSSÉGU TÁRSASÁG

Rating:

C

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

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

54 45 650

Total %

HU -

Information date

2008/11

AIR BUDAPEST CLUB LÉGIKÖZLEKEDÉSI SZOLGÁLTATÓ KORLÁTOLT FELELOSSÉGU TÁRSASÁG

Rating:

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

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

HU -

BBB

MALÉV GH FÖLDI KISZOLGÁLÓ KORLÁTOLT FELELÕSSÉGÛ TÁRSASÁG

Rating:

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

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

HU -

-

MALÉV GH FÖLDI KISZOLGÁLÓ ZÁRTKÖRUEN MUKÖDO RÉSZVÉNYTÁRSASÁG

Rating:

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

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

HU -

Rating:

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

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

Rating:

Country ISO code

Operating revenue (MIL $)

HU -

0 0 288 2008/11

CCC 12

Total Assets (MIL $) Number of Employees Information date

2 26 2008/11

PANNON AIR CARGO NEMZETKÖZI SZÁLLÍTMÁNYOZÓ ÉS VÁMÜGYNÖK KORLÁTOLT FELELOSSÉGU TÁRSASÁG

Rating:

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

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

Total %

49 25 736 2008/11 A

MALÉV AIR TOURS IDEGENFORGALMI ÉS SZOLGÁLTATÓ KORLÁTOLT FELELOSSÉGU TÁRSASÁG NACE Rev. 2, Core code Direct % Total %

15 2 2008/11 BBB

MALEV PASSENGER SERVICE LIMITED LIABILITY COMPANY HU -

3 1 204 2008/11

HU -

BBB

Information date

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3 1 35 2008/11

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


MALEV Hungarian Airlines Ltd. MALEV Ltd.

Friday, 03 February 2012 MORE Credit Rating

D

C

CC CCC

B

BB BBB

A

AA AAA

key

TRAVELPORT HUNGARY ÜGYNÖKSÉGI ÉRTÉKESÍTÉSI RENDSZERT SZOLGÁLTATÓ KORLÁTOLT FELELOSSÉGU TÁRSASÁG

Rating:

BB

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

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

3 2 10 2008/11

HU -

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


MALEV Hungarian Airlines Ltd. MALEV Ltd.

Friday, 03 February 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


MALEV Hungarian Airlines Ltd. MALEV Ltd.

Friday, 03 February 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


MALEV Hungarian Airlines Ltd. MALEV Ltd.

Friday, 03 February 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


MALEV Hungarian Airlines Ltd. MALEV Ltd.

Friday, 03 February 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


MALEV Hungarian Airlines Ltd. MALEV Ltd.

Friday, 03 February 2012 MORE Credit Rating

D

C

CC CCC

B

BB BBB

A

AA AAA

key

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 Where

MORE rating AREA Science Park 34149 Trieste, via Padriciano 99 - ITALY info@modefinance.com www.modefinance.com +39 040 3755337

Info web Phone

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


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