Saab Automotive AB: modeFinance Credit Report

Wednesday, 07 September 2011

Saab Automobile AB

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.

TM

Company name

Saab Automobile AB

Identification number

SE5562588912

Country

Sweden

ZIP code and city

46180 - Trollhattan

Address 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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TM

TM

www.saab.com Legal form

Limited liability company - AB

Account

Unconsolidated

Incorporation date

1985

NACE 2 Sector

2910 - Manufacture of motor vehicles

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+46 520 85000

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) Rating Basic

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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

757,124

1,509,554

1,442,961

CC

B

D

36.00%

5.00%

100.00%

100%

100%

100%

Leverage ratio

4.00

18.30

-3.79

Total asset/Total liabilties

1.25

1.05

0.74

Current Ratio

0.69

0.72

0.34

Quick Ratio

0.43

0.54

0.16

Probability of default

Plus

31/12/2010

Confidence Level

TM

Solvency ratios

Liquidity ratios

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

-31.37

45.91

-41.75

-149.48

878.97

-124.10

0.67

1.79

1.57

Asset turnover Interest paid weight

-0.02

0.02

-0.09

Gross Profit/Operating revenue

-0.15

-0.27

-0.16

-52.10

48.29

-11.36

Interest Coverage ratios EBIT interest coverage ratio

Analysis and trend of financial strength

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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

Saab Automobile AB

Wednesday, 07 September 2011 MORE Credit Rating

D

C

CC CCC

B

BB BBB

A

AA AAA

key

Sector Analysis Company

Healthy

Balanced

Vulnerable

Risky

Leverage ratio

4.00

0.53

1.82

3.62

-1.88

Total asset/Total liabilties

1.25

2.88

1.54

1.24

0.98

Current Ratio

0.69

2.60

1.32

1.05

0.71

Quick Ratio

0.43

1.74

0.87

0.67

0.49

Solvency ratios

Liquidity ratios

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

-31.37

15.53

6.09

-0.41

-11.65

Return on equity ROE (%)

-149.48

17.11

8.72

-8.33

-144.80

Asset turnover

0.67

1.52

1.43

1.16

1.00

Interest paid weight

-0.02

0.01

0.15

0.00

-0.16

Gross Profit/Operating revenue

-0.15

0.21

0.16

0.11

0.02

-52.10

94.01

5.06

-0.43

-5.24

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

72

35

53

47

78

Days Sales Outstanding (DSO)

21

38

44

46

44

Days Payable Outstanding (DPO)

64

23

44

53

68

Cash Conversion Cycle (DIO + DSO - DPO)

29

50

57

46

53

-

83

288

270

119

CC

A

BB

B

CC

Numer of analyzed companies (Average) Rating

The sector has been chosen according to: international companies in the sector NACE 2 2910 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

Saab Automobile AB

Wednesday, 07 September 2011 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

Saab Automobile AB

Wednesday, 07 September 2011 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

0.11154

0.09754

0.092

1,122,079

841,589

919,779

728,794

291,162

523,275

Intangible fixed assets

79,973

780

42,962

Tangible fixed assets

23,758

266,874

432,198

Exchange rate SEK - EUR Total assets Fixed assets

625,063

23,508

48,114

393,285

550,427

396,504

149,239

139,875

213,615

42,831

14,144

21,527

201,216

396,409

161,361

160,727

211,763

11,132

224,527

43,601

-329,439

70,492

61,646

58,142

Other shareholders funds

154,035

-18,045

-387,580

Total liabilities

897,552

797,988

1,249,218

Non current liabilities

331,270

32,676

95,492

Long term debt

268,920

0

0

62,350

32,676

95,492

566,282

765,312

1,153,725

8,923

0

0

133,512

53,745

146,090

Other fixed assets Current assets Stocks Debtors Other current assets Cash & cash equivalent Shareholders funds Capital

Other non-current liabilities Current liabilities Loans Creditors

423,847

711,566

1,007,635

1,122,079

841,589

919,779

31/12/2010

31/12/2009

Other current liabilities Total shareh. funds & liab.

NET DEBT (th e) Short term debts

31/12/2008

8,923

0

Long term debt

268,920

0

0

Cash & cash equivalent

160,727

211,763

11,132

Net debt

117,116

-211,763

-11,132

31/12/2010 Working capital

31/12/2009

0

31/12/2008

58,558

100,273

89,052

-172,996

-214,884

-757,221

31/12/2010

31/12/2009

31/12/2008

Net Current Assets

Days Sales Of Inventory (DIO)

72

34

Days Sales Outstanding (DSO)

21

3

5

Days Payable Outstanding (DPO)

64

13

37

Cash Conversion Cycle (DIO + DSO - DPO)

29

24

22

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

54

Saab Automobile AB

Wednesday, 07 September 2011 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

0.11154

0.09754

0.092

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

702,805

593,053

1,438,914

18.5

-58.8

-

54,319

916,501

4,047

757,124

1,509,554

1,442,961

1,105,794

1,151,576

1,824,561

Costs growth (%)

-4

-37

-

Service costs

-

-

-

Material costs

-

-

-

Costs of employees

-

-

-

-338,520

524,774

-229,991

10,150

166,796

151,610

-348,670

357,978

-381,600

-10,038

20,971

-35,971

Financial revenue

11,488

29,067

29,715

Financial expenses

21,527

8,096

65,685

6,692

7,413

33,579

-358,708

378,949

-417,571

Total operating costs

EBITDA Depreciation EBIT Financial P/L

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

-

0

0

Extr. and other revenue

-

0

0

Extr. and other expenses

-

0

0

-

378,949

-417,571

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

-23,089

-4,292

-8,740

-335,620

383,241

-408,831

31/12/2010 Costs of Good Sold

31/12/2009

31/12/2008

813,675

1,003,996

1,665,408

Gross Profit

-110,869

-410,943

-226,495

Other Operating Expenses

-237,800

147,580

159,154

31/12/2010 Cash flow Added value

-257,222

-

-

-

-

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31/12/2008

550,037

31/12/2010 Number of employees

31/12/2009

-325,470

31/12/2009

31/12/2008

3,743

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

3,867

Saab Automobile AB

Wednesday, 07 September 2011 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

Saab Automobile AB

Wednesday, 07 September 2011 MORE Credit Rating

D

C

CC CCC

B

BB BBB

A

AA AAA

key

Qualitative information Full overview

Saab Automobile AB is a Swedish company that manufactures passenger automobiles in the premium sector of the market. The company has a headquarters located in Trollhätten, Norway and was incorporated on September 1985. It was officially formed in 1990 when General Motors Corporation purchased 50 percent of Saab - Scania’s passenger car business. Saab Automobile is an operating subsidiary of the world’s largest automobile manufacturer, General Motors. The company, considered as a small automaker in the auto industry of the late 20th century, has an annual production capacity of approximately 125,000 cars, which include models, namely, the 9 - 3 Sport Sedan, 9 - 3 Convertible, 9 - 3 SportCombi, 9 - 5 Sedan, and the 9 - 5 SportCombi, mostly are built at its factory in Trollhätten and are sold and marketed in more than 60 countries. The largest markets for Saab automobiles are the United States, Western Europe, Australia, Japan, Canada, and Taiwan. Its automobile operations became a division of Saab - Scania AB following the 1969 merger of Saab AB and Scania - Vabis AB, a maker of trucks, buses, and diesel engines.

History

Not available.

Primary business line

Manufactures passenger automobiles in the premium sector of the market.

Secondary business line

Not available.

Main activity

Manufacturing.

Secondary activity

Not available.

Main products and services

Not available.

Size estimate

Not available.

Strategy, organization and policy

Not available.

Strategic alliances

Not available.

Membership of a network

Not available.

Main brand names

Not available.

Main domestic country

Sweden.

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.

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

Saab Automobile AB

Wednesday, 07 September 2011 MORE Credit Rating

D

C

CC CCC

B

BB BBB

A

AA AAA

key

Auditor/Advisor/Bank name

type

address

Enlund Sven ’Bertel’

Auditor

-

Siberg ’Helene’ Marie

Auditor

-

Board name

date of birth

nationality

function

Mr Victor Roberto Muller

13/09/1959

-

MD and Regular member

Sharehoders (the first twenty shareholders ordered by Direct %)) SWEDISH AUTOMOBILE N.V. Country ISO code NACE Rev. 2, Core code Direct % Total % Address: Not available

NL 100.00 100.00

Rating:

C

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

1,140 1,440

Number of Employees Information date

3,888 2010/12

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

GENERAL MOTORS NORDISKA AB Country ISO code NACE Rev. 2, Core code Direct % Total %

SE 100.00 100.00

Total Assets (MIL $) Number of Employees Information date

NACE Rev. 2, Core code Direct % Total %

SE

-

Operating revenue (MIL $)

100.00 100.00

Total Assets (MIL $) Number of Employees Information date

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126 1 2011/01

Rating:

GOLDCUP 6300 AB Country ISO code

AA

Operating revenue (MIL $)

2011/08

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

Saab Automobile AB

Wednesday, 07 September 2011 MORE Credit Rating

D

C

CC CCC

B

BB BBB

A

AA AAA

key

Rating:

SAAB AUTOMOBILE SPAIN SL. Country ISO code NACE Rev. 2, Core code Direct % Total %

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

CA 100.00 100.00

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

-

SAAB DEUTSCHLAND GESELLSCHAFT MIT BESCHRĂ„NKTER HAFTUNG

Rating:

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

DE 100.00 100.00

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

IT 100.00 100.00

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

SE 100.00 100.00

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

SE 100.00 100.00

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

SE 100.00 100.00

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

AU 100.00 100.00

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

US 100.00 100.00

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

0 0 105 2011/03 BBB

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205 89 439 2011/03 45 2011/03 -

Rating:

SAAB CARS NORTH AMERICA INC Country ISO code NACE Rev. 2, Core code Direct % Total %

B

Rating:

SAAB CARS AUSTRALIA PTY LTD Country ISO code NACE Rev. 2, Core code Direct % Total %

2011/08

Rating:

SAAB AUTOMOBILE TOOLS AB Country ISO code NACE Rev. 2, Core code Direct % Total %

144 61 2010/12 -

Rating:

SAAB AUTOMOBILE POWERTRAIN AB Country ISO code NACE Rev. 2, Core code Direct % Total %

B

Rating:

SAAB AUTOMOBILE PARTS AB Country ISO code NACE Rev. 2, Core code Direct % Total %

2010/12

Rating:

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

2011/08

Rating:

SAAB CANADA INC (CANADA) Country ISO code NACE Rev. 2, Core code Direct % Total %

-

ES 100.00 100.00

2011/08 -

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

2011/08

Saab Automobile AB

Wednesday, 07 September 2011 MORE Credit Rating

D

C

CC CCC

B

BB BBB

A

AA AAA

key

Rating:

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

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

JP MO -

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

Rating:

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

-

FR 100.00 100.00

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2011/08 -

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

2010/04

Saab Automobile AB

Wednesday, 07 September 2011 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

Saab Automobile AB

Wednesday, 07 September 2011 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

Saab Automobile AB

Wednesday, 07 September 2011 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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Saab Automobile AB

Wednesday, 07 September 2011 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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Saab Automobile AB

Wednesday, 07 September 2011 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

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Info web Phone

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