Satcon Technology: modeFinance Credit Report

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modeFinances credit report.

Almost every day millions of peoplearound the world are wondering the realcreditworthiness of the companies withwhich they are in business. Every daythese questions remain unanswered.modeFinance

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product which gives the chance toevaluate the credit risk for every companyfrom all around the world.

ASKMORETM plans 3 types of reports:

s-peek Basic Plus

ASKMORETM

Basic:This report includes modeFinance TM sMORE Credit Ratings and MORE CreditLimit to help you in the decision making.It covers all essential information includingfinancial statements of the last three yearsand descriptive information including tradedescription and sector analysis.This report type is ideally suited fordecisions on transactions with each levelof credit risk.

modeFinanceTM HeadquarterBuilding A - AREA Science ParkPadriciano 99 - 34149 Trieste - ItalyPh.: +39 040 375 5337Fax: +39 040 375 [email protected]

askMORETM is a registered mark of modeFinanceTM

SATCON TECHNOLOGY CORPThursday, 18 October 2012MORE Credit Rating

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D C CC CCC B BB BBB A AA AAA

MORE Credit Rating

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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 SATCON TECHNOLOGY CORP

Identification number US042857552

Country United States of America

ZIP code and city 02210 - BOSTON

Address 27, DRYDOCK AVENUE

+1 617 897 2400

www.satcon.com

[email protected]

Legal form Not available

Account Consolidated

Incorporation date 1986

NACE 2 Sector 2611 - Manufacture of electronic components

Listed

Status Active

MORE Credit limit Not assessable on the base of the available informations

31/12/2011 31/12/2010 31/12/2009

Turnover (th e) 145,723 129,630 36,468

Rating C B CCC

Probability of default 57.00% 3.80% 16.00%

Confidence Level 100% 100% 100%

Solvency ratios

Leverage ratio -7.23 2.25 4.92

Total asset/Total liabilities 0.86 1.44 1.20

Liquidity ratios

Current Ratio 1.03 1.82 1.50

Quick Ratio 0.62 1.33 1.09

Profitability and economic equili-

brium ratios

Return on investement ROI (%) -57.68 -6.97 -60.87

Return on equity ROE (%) -382.32 -42.65 -426.10

Asset turnover 1.39 1.11 1.08

Interest paid weight -0.06 -0.13 -0.01

Gross Profit/Operating revenue 0.01 0.26 0.09

Interest Coverage ratios

EBIT interest coverage ratio -15.61 -4.28 -72.13

Analysis and trend of financial

strength


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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 -7.23 0.40 1.28 1.34 5.32

Total asset/Total liabilities 0.86 3.37 1.76 1.59 1.04

Liquidity ratios

Current Ratio 1.03 2.80 1.48 1.15 0.67

Quick Ratio 0.62 2.13 1.12 0.85 0.41

Profitability and economic equilibrium ratios

Return on investement ROI (%) -57.68 11.54 4.85 -2.67 -9.53

Return on equity ROE (%) -382.32 11.39 6.44 -12.31 -107.60

Asset turnover 1.39 0.93 1.05 0.90 0.97

Interest paid weight -0.06 0.01 0.16 -0.03 -0.19

Gross Profit/Operating revenue 0.01 0.35 0.19 0.11 0.07

Interest Coverage ratios

EBIT interest coverage ratio -15.61 72.69 4.07 -2.22 -3.79

Cash Conversion Cycle (days)

Days Sales Of Inventory (DIO) 97 47 41 44 46

Days Sales Outstanding (DSO) 97 64 67 59 46

Days Payable Outstanding (DPO) 101 29 38 41 39

Cash Conversion Cycle (DIO + DSO - DPO) 93 76 71 69 69

Numer of analyzed companies - 319 589 275 46

(Average) Rating C A BBB B CC

The sector has been chosen according to:

international companies in the sector NACE 2 2611 with financial data of year 2011.


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Sector Analysis - Graphs


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Balance Sheet

BALANCE SHEET (th e) 31/12/2011 31/12/2010 31/12/2009

Accounting practice Local GAAP Local GAAP Local GAAP

Exchange rate USD - EUR 0.77286 0.748 0.69416

Number of months 12 12 12

Total assets 105,076 116,735 33,800

Fixed assets 9,096 5,449 3,372

Intangible fixed assets - - -

Tangible fixed assets 8,572 5,449 3,217

Other fixed assets 523 0 156

Current assets 95,980 111,287 30,428

Stocks 38,594 30,326 8,259

Debtors 38,795 55,138 12,202

Other current assets 18,591 25,823 9,967

Cash & cash equivalent 16,683 22,510 9,280

Shareholders funds -16,869 35,897 5,709

Capital 941 882 15,940

Other shareholders funds -17,810 35,015 -10,231

Total liabilities 121,944 80,838 28,091

Non current liabilities 28,860 19,787 7,749

Long term debt 8,482 6,776 260

Other non-current liabilities 20,378 13,012 7,489

Current liabilities 93,085 61,050 20,342

Loans 12,584 1,576 0

Creditors 40,154 33,705 14,405

Other current liabilities 40,347 25,769 5,937

Total shareh. funds & liab. 105,076 116,735 33,800

NET DEBT (th e) 31/12/2011 31/12/2010 31/12/2009

Short term debts 12,584 1,576 0

Long term debt 8,482 6,776 260

Cash & cash equivalent 16,683 22,510 9,280

Net debt 4,382 -14,158 -9,020

31/12/2011 31/12/2010 31/12/2009

Working capital 37,235 51,758 6,056

Net Current Assets 2,895 50,236 10,086

31/12/2011 31/12/2010 31/12/2009

Days Sales Of Inventory (DIO) 97 85 83

Days Sales Outstanding (DSO) 97 155 122

Days Payable Outstanding (DPO) 101 95 144

Cash Conversion Cycle (DIO + DSO - DPO) 93 145 61


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Income Statement

INCOME STATEMENT (th e) 31/12/2011 31/12/2010 31/12/2009

Accounting practice Local GAAP Local GAAP Local GAAP

Exchange rate USD - EUR 0.77286 0.748 0.69416

Number of months 12 12 12

Sales 145,723 129,630 36,468

Revenues growth (%) 12 255 -

Other revenues +/- variation in inventories and contract in progress + Fixed assets

own construction capitalized0 0 0

Operating revenue / turnover 145,723 129,630 36,468

Total operating costs 202,498 134,326 52,697

Costs growth (%) 51 155 -

Service costs - - -

Material costs - - -

Costs of employees - - -

EBITDA -55,290 -3,540 -15,351

Depreciation 1,484 1,156 877

EBIT -56,774 -4,697 -16,229

Financial P/L -7,471 -4,542 -4,570

Financial revenue 321 1 6

Financial expenses 7,792 4,542 4,577

Interest paid 3,636 1,098 225

P/L before tax -64,246 -9,238 -20,799

Extr. and other P/L 0 -6,073 -3,527

Extr. and other revenue - - -

Extr. and other expenses - - -

P/L before tax + Extr. and other P/L -64,246 -15,311 -24,326

Taxation 249 0 0

P/L for period -64,494 -15,311 -24,326

31/12/2011 31/12/2010 31/12/2009

Costs of Good Sold 143,584 95,605 33,368

Gross Profit 2,140 34,024 3,100

Other Operating Expenses 58,914 38,721 19,328

31/12/2011 31/12/2010 31/12/2009

Cash flow -63,010 -14,154 -23,449

Added value - - -

31/12/2011 31/12/2010 31/12/2009

Number of employees 250 344 234


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Evolutions and trends


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Qualitative information

Full overview It is an industry leader in the development and manufacture of power electronics and control systems. The com-

pany was incorporated in 1986 and has its registered office address in Boston, Massachusetts. It offers diversified

and sophisticated power products for the alternative energy, hybrid - electric vehicle, grid support, high reliability

electronics and advanced power technology markets. Its product areas include: alternative energy power conver-

sion, hybrid electric vehicle power trains, grid support & power quality, electronic components, and engineering

services. It has three business units with facilities located in both the United States and Canada. SatCon Power

Systems - which manufactures and sells static power conversion and energy management systems utilizing power

electronic and advanced controls; SatCon Electronics - manufacture and sells regulators, power MOSFETS; motor

controllers, DC: DC converters; RF devices; amplifiers; telecommunications electronics; and hybrid microcircuits for

industrial, medical, and aerospace applications; and SatCon Applied Technology - develops advanced technology

in power conversion electronics; power management & distribution systems; hybrid electric vehicle technology,

electric machinery; and advanced electronic material applications.

History Not available.

Primary business line Development and manufacture of power electronics and control systems.

Secondary business line Not available.

Main activity Manufacturing.

Secondary activity Not available.

Main products and services Power electronics and control systems.

Size estimate An industry leader in the development and manufacture of power electronics and control systems.

Strategy, organization and policy Not available.

Strategic alliances Not available.

Membership of a network Not available.

Main brand names Not available.

Main domestic country United States of America.

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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Auditor/Advisor/Bank

name type address

CATURANO & CO., P.C. Auditor -

American Stock Transfer & Trust Transfer Agent -

Board

name date of birth nationality function

Mr. John M Carroll - - Independent Director

Mr. Philip J Deutch - - Independent Director

Mr. Daniel R Dwight - - Independent Director

Mr. James L Kirtley - - Independent Director

Mr. David J Prend - - Independent Director

Mr. Charles Stephen Rhoades - - President, Chief Executive Officer, Director

Mr. Robert G Schoenberger - - Independent Director

Sharehoders (the first twenty shareholders ordered by Direct %)

ROCKPORT CAPITAL PARTNERS, LP Rating:

Country ISO code US Operating Revenue (MIL $) 1.6

NACE Rev. 2, Core code - Total Assets (MIL $) -

Direct % 11.52 Number of Employees 15

Total % - Information date 2012/05

Address : Not available

NGP ENERGY TECHNOLOGY PARTNERS Rating:






FEDERATED INVESTORS INC via its funds Rating: AA


NACE Rev. 2, Core code - Total Assets (MIL $) 1150.86

Direct % - Number of Employees 1351

Total % 5.02 Information date 2012/03



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BLACKROCK, INC. via its funds Rating: BB

Country ISO code US Operating Revenue (MIL $) 9081

NACE Rev. 2, Core code - Total Assets (MIL $) 179896




VANGUARD GROUP, INC. THE via its funds Rating:






KLEINWORT BENSON GROUP LIMITED via its funds Rating: B

Country ISO code GB Operating Revenue (MIL $) -





SUSQUEHANNA INTL GROUP via its funds Rating:

Country ISO code US Operating Revenue (MIL $) -





EMPIRE CAPITAL PARTNERS via its funds Rating:






STATE STREET CORPORATION via its funds Rating:






GUGGENHEIM CAPITAL, LLC via its funds Rating:







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NORTHERN TRUST CORPORATION via its funds Rating:






DIMENSIONAL FUND ADVISORS LP via its funds Rating: A






TEACHERS INSURANCE & ANNUITY ASSOCIATION OF AMERICA via its funds Rating:






ACTIVE NICHE FUNDS SA via its funds Rating:

Country ISO code CH Operating Revenue (MIL $) 0.53





GOLDMAN SACHS GROUP, INC via its funds Rating:






BANK OF NEW YORK MELLON CORPORATION via its funds Rating:






GEODE CAPITAL MANAGEMENT, LLC via its funds Rating:







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BANK OF AMERICA CORPORATION via its funds Rating:






D. E. SHAW & CO., L.P. via its funds Rating:






KNIGHT CAPITAL GROUP INC via its funds Rating: -






Subsidiaries (the first twenty subsidiaries ordered by Direct %)

SATCON INTERNATIONAL, S.R.O. Rating: CCC

Country ISO code CZ Operating Revenue (MIL $) 1.24




SATCON APPLIED TECHNOLOGY INC Rating:

Country ISO code US Operating Revenue (MIL $) -


Direct % >50.00 Number of Employees -


SATCON POWER SYS Rating:



Direct % >50.00 Number of Employees 1


SATCON POWER SYSTEMS CANADA LTD Rating:

Country ISO code CA Operating Revenue (MIL $) 6.23


Direct % MO Number of Employees 70



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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 companys 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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Rating scale

Rating class Rating macro class Assessment

AAA

Healthy

The companys 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 companys 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 companys 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

companys solvency.

CC

Risky

The company shows signals of high vulnerability. In the event of adverse market and economic conditions, the

companys strong disequilibrium could increase.

CThe company shows considerable pathological situations. The companys 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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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 companys 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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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 InformationTotal 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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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, modeFinances

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

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Satcon Technology: modeFinance Credit Report

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