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If you want to know more, ASKMORE TM
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modeFinanceTM HeadquarterBuilding A - AREA Science ParkPadriciano 99 - 34149 Trieste - ItalyPh.: +39 040 375 5337Fax: +39 040 375 [email protected]
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REC WAFER NORWAY ASThursday, 23 August 2012
MORE Credit Rating
key
D C CC CCC B BB BBB A AA AAA
MORE Credit Rating
key
D C CC CCC B BB BBB A AA AAAnot
available
non return extremlypathological
pathological highdanger
weak sufficient adequate good very
strongextremely
strong
Company name 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
Listed
Status Active
MORE Credit limit Not assessable on the base of the available informations
31/12/2010 31/12/2009 31/12/2008
Turnover (th e) 907,256 706,079 479,047
Rating CC CC BBB
Probability of default 35.00% 35.00% 0.55%
Confidence Level 78% 100% 100%
Solvency ratios
Leverage ratio 12.41 6.23 2.52
Total asset/Total liabilities 1.08 1.16 1.40
Liquidity ratios
Current Ratio 0.24 0.33 0.71
Quick Ratio 0.15 0.18 0.58
Profitability and economic equili-
brium ratios
Return on investement ROI (%) - -16.65 38.45
Return on equity ROE (%) -66.65 -100.72 96.82
Asset turnover 0.62 0.56 0.50
Interest paid weight - -0.16 0.01
EBITDA/Sales - - -
Interest Coverage ratios
EBIT interest coverage ratio - -1.92 62.12
EBITDA interest coverage ratio - 3.78 76.32
Analysis and trend of financial
strength
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REC WAFER NORWAY ASThursday, 23 August 2012
MORE Credit Rating
key
D C CC CCC B BB BBB A AA AAA
modeFinance TM srlVAT number [email protected]
Area Science Park,Padriciano 99. 34149 Trieste, ItalyTel. +39 040 3755337Fax +39 040 3756741
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
Liquidity ratios
Current Ratio 0.24 2.45 1.58 1.11 0.61
Quick Ratio 0.15 1.89 1.14 0.80 0.36
Profitability and economic equilibrium ratios
Return on investement ROI (%) - 14.24 7.06 -0.08 -10.92
Return on equity ROE (%) -66.65 15.77 9.32 -6.40 -77.72
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
Interest Coverage ratios
EBIT interest coverage ratio - 54.79 4.14 -0.19 -5.68
EBITDA interest coverage ratio - 59.16 6.89 1.36 -1.93
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
Numer of analyzed companies - 218 425 137 37
(Average) Rating CC A BBB B C
The sector has been chosen according to:
international companies in the sector NACE 2 2013with financial data of year 2010.
Page 3
REC WAFER NORWAY ASThursday, 23 August 2012
MORE Credit Rating
key
D C CC CCC B BB BBB A AA AAA
modeFinance TM srlVAT number [email protected]
Area Science Park,Padriciano 99. 34149 Trieste, ItalyTel. +39 040 3755337Fax +39 040 3756741
Sector Analysis - Graphs
Page 4
REC WAFER NORWAY ASThursday, 23 August 2012
MORE Credit Rating
key
D C CC CCC B BB BBB A AA AAA
modeFinance TM srlVAT number [email protected]
Area Science Park,Padriciano 99. 34149 Trieste, ItalyTel. +39 040 3755337Fax +39 040 3756741
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 NOK - EUR 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
Intangible fixed assets 53,896 25,690 8,252
Tangible fixed assets 718,626 649,353 414,862
Other fixed assets 405,044 258,399 100,025
Current assets 293,757 323,448 437,765
Stocks 112,135 141,473 76,169
Debtors 116,317 115,592 51,997
Other current assets 65,305 66,383 309,599
Cash & cash equivalent 47 62 52
Shareholders funds 109,750 173,932 272,951
Capital 109,750 6,395 56,970
Other shareholders funds 0 167,536 215,981
Total liabilities 1,361,572 1,082,958 687,953
Non current liabilities 162,225 94,042 69,111
Long term debt 0 0 0
Other non-current liabilities 162,225 94,042 69,111
Current liabilities 1,199,347 988,916 618,842
Loans 0 792,561 0
Creditors 88,403 82,429 93,533
Other current liabilities 1,110,944 113,926 525,309
Total shareh. funds & liab. 1,471,322 1,256,890 960,904
NET DEBT (th e) 31/12/2010 31/12/2009 31/12/2008
Short term debts 0 792,561 0
Long term debt 0 0 0
Cash & cash equivalent 47 62 52
Net debt -47 792,499 -52
31/12/2010 31/12/2009 31/12/2008
Working capital 140,049 174,636 34,633
Net Current Assets -905,590 -665,468 -181,077
31/12/2010 31/12/2009 31/12/2008
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
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REC WAFER NORWAY ASThursday, 23 August 2012
MORE Credit Rating
key
D C CC CCC B BB BBB A AA AAA
modeFinance TM srlVAT number [email protected]
Area Science Park,Padriciano 99. 34149 Trieste, ItalyTel. +39 040 3755337Fax +39 040 3756741
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
Revenues growth (%) 28 47 -
Other revenues +/- variation in inventories and contract in progress + Fixed assets
own construction capitalized0 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
EBIT 2,238 -65,359 138,901
Financial P/L -103,744 -177,877 228,339
Financial revenue 61,933 161,128 285,513
Financial expenses 165,676 339,005 57,175
Interest paid - 33,960 2,236
P/L before tax -101,506 -243,236 367,240
Extr. and other P/L 0 0 0
Extr. and other revenue 0 0 0
Extr. and other expenses 0 0 0
P/L before tax + Extr. and other P/L -101,506 -243,236 367,240
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
Cash flow 28,267 18,524 296,005
Added value - 52,959 451,775
31/12/2010 31/12/2009 31/12/2008
Number of employees 1,104 - -
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REC WAFER NORWAY ASThursday, 23 August 2012
MORE Credit Rating
key
D C CC CCC B BB BBB A AA AAA
modeFinance TM srlVAT number [email protected]
Area Science Park,Padriciano 99. 34149 Trieste, ItalyTel. +39 040 3755337Fax +39 040 3756741
Evolutions and trends
Page 7
REC WAFER NORWAY ASThursday, 23 August 2012
MORE Credit Rating
key
D C CC CCC B BB BBB A AA AAA
modeFinance TM srlVAT number [email protected]
Area Science Park,Padriciano 99. 34149 Trieste, ItalyTel. +39 040 3755337Fax +39 040 3756741
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.
Page 8
REC WAFER NORWAY ASThursday, 23 August 2012
MORE Credit Rating
key
D C CC CCC B BB BBB A AA AAA
modeFinance TM srlVAT number [email protected]
Area Science Park,Padriciano 99. 34149 Trieste, ItalyTel. +39 040 3755337Fax +39 040 3756741
Auditor/Advisor/Bank
name type address
KPMG AS Auditor -
Board
name date of birth nationality function
Mr. Ole Enger 14/03/1948 - Chairman
Mr. Tom Bagstevold 12/04/1971 - Board Member
Mr. Bjorn Brenna 26/05/1956 - Board Member
Mrs. Silje Johnsen 19/10/1976 - Employees Representative; Deputy board member
Dr Florian Nikolaus Krumbacher 11/09/1966 - Board Member
Mr. Cato Runar Olsen 05/07/1967 - Employees Representative
Mr. Rune Sorensen 15/04/1966 - Employees Representative
Mr. Arnt Hermod Tangen 06/01/1968 - Employees Representative
Sharehoders (the first twenty shareholders ordered by Direct %))
RENEWABLE ENERGY CORPORATION ASA - REC Rating: B
Country ISO code NO Operating Revenue (MIL $) 2329.22
NACE Rev. 2, Core code - Total Assets (MIL $) 4085.14
Direct % 100.00 Number of Employees 3587
Total % 100.00 Information date 2012/01
Address : Not available
Subsidiaries (the first twenty subsidiaries ordered by Direct %)
NORFURNACE AS Rating: BBB
Country ISO code NO Operating Revenue (MIL $) 0
NACE Rev. 2, Core code - Total Assets (MIL $) 1.78
Direct % 100.00 Number of Employees -
Total % 100.00 Information date 2012/01
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REC WAFER NORWAY ASThursday, 23 August 2012
MORE Credit Rating
key
D C CC CCC B BB BBB A AA AAA
modeFinance TM srlVAT number [email protected]
Area Science Park,Padriciano 99. 34149 Trieste, ItalyTel. +39 040 3755337Fax +39 040 3756741
REC WAFER PTE LTD Rating:
Country ISO code SG Operating Revenue (MIL $) -
NACE Rev. 2, Core code - Total Assets (MIL $) -
Direct % 100.00 Number of Employees -
Total % 100.00 Information date 2012/01
REC WAFER PTE LTD Rating:
Country ISO code - Operating Revenue (MIL $) -
NACE Rev. 2, Core code - Total Assets (MIL $) -
Direct % 100.00 Number of Employees -
Total % 100.00 Information date 2009/12
MELØY BEDRIFTSSERVICE AS Rating: A
Country ISO code NO Operating Revenue (MIL $) 4.01
NACE Rev. 2, Core code - Total Assets (MIL $) 3.3
Direct % 20.00 Number of Employees 17
Total % - Information date 2012/01
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REC WAFER NORWAY ASThursday, 23 August 2012
MORE Credit Rating
key
D C CC CCC B BB BBB A AA AAA
modeFinance TM srlVAT number [email protected]
Area Science Park,Padriciano 99. 34149 Trieste, ItalyTel. +39 040 3755337Fax +39 040 3756741
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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REC WAFER NORWAY ASThursday, 23 August 2012
MORE Credit Rating
key
D C CC CCC B BB BBB A AA AAA
modeFinance TM srlVAT number [email protected]
Area Science Park,Padriciano 99. 34149 Trieste, ItalyTel. +39 040 3755337Fax +39 040 3756741
Rating scale
Rating class Rating macro class Assessment
AAA
Healthy
The company’s capacity to meet its financial commitments is extremely strong. The company shows an excellent
economic and financial flow and fund equilibrium.
AAThe company has very strong creditworthiness. It also has a good capital structure and economic and financial
equilibrium. Difference from AAA is slight.
AThe company has a high solvency. The company is however more susceptible to the adverse effects of changes in
circumstances and economic conditions than companies in higher rated categories.
BBB
Balanced
Capital structure and economic equilibrium are considered adequate. The company’s capacity to meet its financial
commitments could be affected by serious unfavourable events.
BBA 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.
B
Vulnerable
The company presents vulnerable signals with regards to its fundamentals. Adverse business, financial, or economic
conditions will be likely to impair the company’s capacity or willingness to meet its financial commitments.
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
Risky
The company shows signals of high vulnerability. In the event of adverse market and economic conditions, the
company’s strong disequilibrium could increase.
CThe company shows considerable pathological situations. The company’s capacity to meet its financial
commitments is very low.
D The company has not any longer the capacity to meet its financial commitments.
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REC WAFER NORWAY ASThursday, 23 August 2012
MORE Credit Rating
key
D C CC CCC B BB BBB A AA AAA
modeFinance TM srlVAT number [email protected]
Area Science Park,Padriciano 99. 34149 Trieste, ItalyTel. +39 040 3755337Fax +39 040 3756741
Fundamental Credit Rating Ratios
Analysis area Ratio Assessment
Solvency ratios
Leverage ratioThis measures the level of total liabilities of the company in comparison
with equity.
Assets to debtThis indicates company’s solvency. The company shows a level of deficit
when the value of this ratio is under one unit.
Financial ratios Fixed Assets coverage ratioThis is calculated only for holdings. It measures the capital structure i.e.
whether a company covers the fixed assets with long term capital.
Liquidity ratios
Current ratioThis measures whether a company has sufficient short-term assets to cover
its short-term liabilities.
Quick ratioThis compares current liabilities only to those assets that can be readily
turned into cash.
Profitability and economic ratios
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 coverage ratio 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.
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REC WAFER NORWAY ASThursday, 23 August 2012
MORE Credit Rating
key
D C CC CCC B BB BBB A AA AAA
modeFinance TM srlVAT number [email protected]
Area Science Park,Padriciano 99. 34149 Trieste, ItalyTel. +39 040 3755337Fax +39 040 3756741
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 =
∑Available Information∑
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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REC WAFER NORWAY ASThursday, 23 August 2012
MORE Credit Rating
key
D C CC CCC B BB BBB A AA AAA
modeFinance TM srlVAT number [email protected]
Area Science Park,Padriciano 99. 34149 Trieste, ItalyTel. +39 040 3755337Fax +39 040 3756741
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
Company modeFinance
Products MORE rating
Where AREA Science Park
34149 Trieste, via Padriciano 99 - ITALY
Info [email protected]
web www.modefinance.com
Phone +39 040 3755337
