AICO Africa Limited

Zimbabwe Corporate Analysis November 2009

Security class Rating scale Currency Rating Rating watch Expiry date
Long term National Zim$ BBB
No 05/2010
Short term National Zim$ A3

Financial data: Rating rationale

(Stated in US$’m) The rating is based on the following key factors:
31/03/09 30/06/09*
• AICO’s established leadership of the domestic cotton industry,
Total assets 212.9 246.8
Total debt
underpinned by comprehensive vertical integration. The group’s
40.7 61.0
Total capital 115.3 122.8
strategic investment in the FMCG segment and the resultant
Cash & equiv 5.7 15.9
diversification impact on revenue is positively viewed.
Turnover 120.7 21.2 • Robust exports (which comprised 93% of revenue in F09) have
EBITDA 34.7 0.6 sustained group operations, given dwindling local demand and
NPAT 15.3 1.9 increasing US$ denominated costs. As such, with the prevailing
Op. cash flow n.a n.a political climate, sovereign risk remains a concern in respect of
Market capitalisation** US$132.6m exports and foreign earnings.
Market share# 53% • AICO reports seasonal fluctuations in gearing levels, due to volatile
*
**
Based management accounts for 1Q F10. cash flows and working capital requirements typical of the industry.
As at 19/11/09 on ZSE.
#
Estimated share of domestic cotton segment. However, a substantial proportion of group debt is secured against
Fundamentals: predominantly US$-denominated receivables and attracts fixed
interest rates.
AICO Africa Limited (“AICO”), formerly
the Cotton Company of Zimbabwe
• Cotton operations are significantly exposed to losses due to side
(“Cottco”), is a vertically integrated agro- marketing (wherein contracted farmers sell cotton to other buyers),
industrial group focused on the growing, compounded by the severe contraction of the domestic agricultural
processing & distribution of cotton. sector.
GLOBAL CREDIT RATING CO.

Incorporated in July 2008, AICO was • In addition to the challenging domestic operating environment,
reverse listed on the Zimbabwe Stock AICO is exposed to international cotton prices, which in turn have
Exchange (“ZSE”) in September 2008 in
the place of Cottco, following a group been impacted by the current global recession. While the economic
restructuring exercise. In addition to environment has evidenced improvement in F09, with some positive
Cottco, Seedco and associated companies, political developments domestically, it is likely that the challenging
AICO has a 49% stake in Olivine operating conditions will persist in the medium term.
Industries and wholly owns Exhort
Enterprises, giving the group market
Funding profile
presence in the fast moving consumer Despite retained earnings of US$15.3m and revaluations of US$8.7m,
goods (“FMCG”) segment. Majority shareholders interest declined by 9% to US$115.3m at FYE09, due to
shareholders include the National Social translation losses of US$37.9m. With interest bearing debt of
Security Authority (“NSSA”), with a
US$40.7m as at FYE09, gross gearing registered at 35%. Adjusted
21.5% stake, Old Mutual Life Assurance
Company (12.1%) and Kensington for cash holdings of US$5.7m, net gearing was 30% at FYE09.
Acquisitions Limited NNR (9.4%). Earnings based gearing metrics presented further insight into the
group’s indebtedness, with net debt to EBITDA registering at 101%
GCR contacts: at FYE09. Short term borrowings accounted for nearly 100% of
Patricia Zvarayi group debt as at FYE09 and largely comprised secured bank loans.
+27 11 784-1771 Coupled with low cash & equivalents, this translated to cash coverage
[email protected] of short term debt of just 0.1x. Gross interest cover registered at 3x in
F09. At 1Q F10, net gearing was at 37%, while net debt to EBITDA
Richard Hoffman
had deteriorated markedly upon a US$ cost base.
+27 11 784-1771
[email protected]

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in part without the written permission of Global Credit Rating Co. (”GCR”). The credit ratings and other opinions contained herein are,
and must be construed solely as, statements of opinion and not statements of fact or recommendations to purchase, sell or hold any
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purpose of any such rating or other opinion or information is given or made by GCR in any form or manner whatsoever.
Operating environment USc/lb Cotton prices ("A" index)
120
AICO’s operations are largely concentrated in
100
Zimbabwe, wherein 87% of group assets are vested.
80
This notwithstanding, over 90% of group turnover was
derived from exports in F09. In this regard, performance 60

is sensitive to the domestic economic environment, as 40

well as the factors affecting demand in key markets. 20

0
Zimbabwe’s economy has continued to deteriorate,

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2008
registering a further 13% decline in GDP in 2008 (2007:
6% contraction). Industry capacity utilisation levels are Calendar yr avg. Crop yr avg.
estimated to have declined to below 20%, while the Source: Cotton Outlook.
economy has become largely informalised. Adverse
Global cotton production is expected to ease to 106m
conditions prevailing in the agriculture sector (which
bales in 2009, down from around 110m bales in 2008.
has contracted by over 50% since 2000) have had a
Whilst this is not expected to translate to protracted
contagion effect on all key sectors and particularly
shortages (due to significant stock holdings), the
manufacturing, as it historically relied on relatively
development bodes positively for countries planning to
cheaper domestic inputs. With minimal government
increase capacity (like Zimbabwe).
support and very little FDI, agricultural output remains
constrained. Domestic cotton production
Cotton Statistics 2007 2008 2009*
Chronic foreign currency shortages, exacerbated by Area harvested (ha) 350,000 390,000 370,000
declining exports and spiraling costs of utilities, have Seed cotton prodn. (tonnes) 254,000 224,000 210,000
added to the country’s economic challenges. Despite the Yield (tonnes/ha) 0.73 0.57 0.56
Lint production (tonnes) 104,140 123,000 98,400
formation of the transitional government of national *
Forecast. Source: Cotton Ginners Association.
unity in February 2009, credit lines remain limited.
While transitional support (most notably US$400m in Around 99% of seed cotton is produced by about
special drawing rights from the IMF and an estimated 300,000 small-scale farmers, holding lots averaging 3ha
£60m from the British government) has been in size. In order to sustain the industry, 25 companies
forthcoming, donor funding is still largely suspended are involved in contract growing and processing, with
pending extensive fiscal and economic reform. The three players accounting for nearly 70% of overall
government has estimated that around US$10bn is domestic production. The industry has a ginning
required to resuscitate the economy. capacity of 600,000 tonnes, which is nearly three times
the seed production for 2008 and thus significantly
In February 2009 the country formally adopted a bundle underutilised. Producers plan to increase national seed
of foreign currencies (the US$, Rand, Pula, British cotton production to 1,000,000 tonnes by 2011.
Pound and Euro) as legal tender in conjunction with the However, this hinges on economic growth and
domestic currency. While this bodes positively for the infrastructure development.
economy, challenges persist in the form of liquidity
constraints, low capacity utilisation and acute shortage Government has authorised cotton biotechnology trials
of inputs in the manufacturing and agriculture sectors. in Zimbabwe, slated to begin in 2010. As such, Quton (a
Although AICO’s exports provide some protection member of the AICO group), has entered into an R&D
against the domestic environment, increasing operating agreement with an international genetically modified
costs and waning local demand continues to place organism (“GMO”) technology provider, with a view to
pressure on margins. developing locally adapted varieties of cotton seed to
improve the production and robustness of the country’s
International cotton prices crop. Currently, genetically engineered cotton accounts
Global cotton prices are determined by expected for an estimated 51% of world exports.
demand and supply in relation to the global stock levels.
Major players in the global cotton industry are China, Operations & earnings diversification
Pakistan, India and the USA, with China being both the
largest producer and consumer. Cotton prices have AICO Africa Limited
trended upwards since 2004. However, 2008 evidenced
a sharp decline in the average price due by the Olivine Zambrano Cottco Cottco
Holdings Investments (100%) International
international financial crisis. This saw the crop-year (49%) (100%) (100%)
average price decline to US$0.61/lb in 2008, from
US$0.74/lb in 2007. Prices have since recovered and Seedco Scotto Exhort
peaked at US$0.65/lb in July 2009, a factor attributed to (50.9%) (75%) Enterprises
(100%)
a weaker US$ and declining production.

In order to streamline operations and reflect the group’s

Global Credit Rating Co. – Zimbabwe Corporate Credit Rating Report
greater size and diversification after the acquisition of countrywide.
Olivine Industries and Exhort Enterprises, Cottco was
restructured into AICO in 2008. The resultant group was While farmers are contractually bound to deliver their
listed on the ZSE as AICO in September 2008, crop to AICO in order to redeem their obligation to the
following the delisting of Cottco. While group group, side marketing has increasingly adversely
operations remain centred around cotton production (as impacted the arrangement. It is estimated that the formal
evidenced by its strong vertical integration), the cotton industry lost US$14m due to farmers failing to
business was restructured into four key business units, deliver their crop in fulfilment of contractual
namely; seed, ginning, spinning and FMCG. obligations, a situation compounded by the fact that
there was no legal recourse for cotton companies. This
Segmental poses a significant threat to the industry, as banks are
Spinni
analysis, F09 Seed Ginning FMCG Total*
ng unable to adequately fund agriculture due to liquidity
(US’000s)
Revenue 48,581 64,056 4,759 2,632 120,677 constraints, while government support remains limited.
Op.income 16,477 12,803 811 (1,112) 26,886
NPAT 13,862 4,003 1,082 (760) 15,326 Positively, government recently issued Statutory
Assets 82,128 81,170 7,482 40,069 212,910
Instrument 142 of 2009 to regulate the cotton industry, a
development that should reduce side marketing.
Op. margin 33.9 20.0 17.0 (42.2) 22.3
*
Variances relate to ‘other’ units, which contribute negligibly to group revenue.
While national production declined by 12% to 224,000
Seed tonnes, AICO increased seed cotton purchases by 3% to
The acquisition of Seedco, a producer and marketer of 122,000 tonnes in F09, growing its market share to 53%
broad acre crop seeds in F07 resulted in operational (F08: 47%). This notwithstanding, ginnery sales
synergies with Quton, the group subsidiary that volumes declined by 26%, largely due to low capacity
produces and distributes cotton seed. This is ultimately utilisation and declining domestic lint & ginned seed
expected to result in operational efficiencies and a demand. Consequently, 23,935 tonnes of ginned seed,
broader product offering going forward, although 5,415 tonnes of delinted seed and 8,804 tonnes of lint
product development has been detrimented by shrinking were carried forward into F10. In spite of the challenges
local demand. with contract farming, the group intends to continue to
support cotton farmers in order to guarantee supply in
Volume (tonnes)
Seed division
F07 F08 F09
% var. the long term.
Inter-segmental sales (3,232) (1,153) n.a n.a
Seedco 62,173 84,284 42,345 (49.8) Spinning
Net external sales 58,941 83,131 42,345 (49.1) AICO is involved in the spinning of yarn through its
subsidiary Scottco. Coal and electricity shortages
Lower domestic production (due to input shortages and
severely constrained productivity in F09. Coupled with
decreased participation in cotton farming) saw planting
declining domestic demand and price controls, this saw
seed volumes decline by 46% in F09, with cotton seed
yarn sales volumes decline by 20% and weaving
produced declining as a proportion of the total. In spite
volumes by 65%. This notwithstanding, the division
of the advantages of the Seedco acquisition, domestic
returned a profit in F09, owing to the positive impact of
sales volumes declined by 63% to 13,761 tonnes in F09,
export revenues on the top line.
owing to rapidly declining agricultural productivity.
This underpinned an overall 49% decline in sales. FMCG
Positively, regional sales and production continue to Volumes (tonnes)
FMCG division % var.
improve, while East African operations remain F08 F09
Exhort Enterprises 70 163 132.9
profitable. Going forward, the liberalisation of the Olivine Industries 8,671 5,393 (37.8)
economy could see a resurgence in production and Total 8,741 5,556 (36.4)
demand, with maize seed volumes alone expected to
grow to 24,302 tonnes in F10 and account for nearly Critical shortages of key inputs, exacerbated by
50% of seed production (F09: 20,418 tonnes). restrictive Exchange Controls (which constrained
imports), also negatively impacted this division in F09.
Ginning In addition, price controls made increased production
Ginning division
Volumes (tonnes)
% var. unsustainable, forcing Olivine to cut back its factory
F07 F08 F09
Lint 56,868 53,881 44,918 (16.6)
output and resulted in a 36% decline in FMCG volumes
Ginned seed 63,397 30,915 21,427 (30.7) in F09. Positively, US$0.2m was utilised to improve
Other 24,859 15,751 6,130 (61.1)
Total ginning 145,124 100,547 72,475 (27.9)
plant capacity to 20% in F09, from 8% previously.
Management expects capacity utilisation to increase
AICO’s structure has evolved through the substantial with improved liquidity in the underlying market. In
investment in the vertical chain of cotton production and addition, demand for Olivine’s products remains robust,
marketing. As such, the group relies on contract as evidenced by the uptake of imported substitutes. In
farming, wherein supply to the ginning unit is this regard, the group is targeting 60% capacity
guaranteed through the provision of exhaustive utilisation by 2010, thereby growing earnings and
financing to farmers. To support this arrangement, improving the reliability of the entire group’s cash flows
AICO has nine strategically located ginneries (as the division’s operations are not seasonal).
Global Credit Rating Co. – Zimbabwe Corporate Credit Rating Report
Financial performance the debtors book equated to around 2% of the capital
base. Net working capital as at FYE09 equated to
A five-year financial synopsis stated at historical cost is
US$23m, or 11% of total assets.
reflected at the end of this report and financial numbers
in Z$ have been kilotised. However, following the Funding profile (US$'000s) F09 %
official discarding of the Zimbabwe Dollar in 2009, Fixed assets 132,770 62.4
AICOS’s audited F09 results are presented in US$. Receivables 30,788 14.5
Cash & equivalents 5,700 2.7
Inventories 29,624 13.9
Operating performance (US$'000s) F09 Other 14,028 6.5
Turnover 120,677 Total assets 212,910 100.0
EBITDA 34,736
Operating income 26,886 Shareholders interest 115,276 54.1
Net finance charges (8,691) Long term debt 189 0.1
NPBT* 16,845 Short term debt 40,486 19.0
Taxation (1,519) Total debt 40,675 19.1
NPAT 15,326 Deferred tax 39,589 18.6
Trade payables 15,646 7.4
Op. margin (%) 22.3 Other liabilities 1,724 0.8
Op. income: net interest (%) 3.1 Total equity & liabilities 212,910 100.0
*
Including net foreign exchange losses.
Net debt: equity (%) 30.3 -
Net debt: EBITDA (%) 100.7 -
AICO achieved revenues of US$121m in F09, Cash: short term debt (x) 0.1 -
underpinned by the ginning and seed businesses. While
the ginning division procured seed cotton at an average Operations are predominantly funded by equity and
underlying producer price of US$0.21/kg, the cost of debt, with the latter largely short term in nature at
sales figure for F09 was significantly understated due to FYE09, owing to the high working capital requirements.
exchange rates fluctuations throughout the year (as At FYE09, short term borrowings comprised of a
growers were paid in Z$ for most of the year). In this US$5.5m overdraft and the remainder of secured bank
regard, the cost of sales amount was adjusted upwards loans. Borrowings are largely secured by notarial bonds
by US$15m. In addition, impairment losses of US$19m and cessions over immovable assets and inventories,
were incurred in F09, of which 76% related to the along with sales contracts. In addition, 77% of the
ginning division and the balance to the seed business. group’s debt is at fixed interest rates. The group’s net
The losses largely arose from the impairment of exposure to other currencies is negligible.
receivables and inventories on translation, while a Statement of changes in equity US$’000s
further 11% related to the impairment of fixed assets. Balance as at FYE08 126,866
This notwithstanding, the group reported an operating Share based payment transactions 4,079
Revaluation of fixed assets 8,702
margin of 22%, attesting to its strong earnings potential. Deferred taxation on items recognised in equity (1,847)
Exchange differences arising from change in functional currency (32,936)
Net finance charges registered at US$8.7m, net of just Exchange differences arising from translation of foreign subsidiaries (4,914)
99,950
US$0.3m realised in income from investments (largely Attributable earnings 7,774
foreign currency deposits). Following net losses on Minority interest 7,552
translation of US$1.4m, the group registered NPBT of Balance as at FYE09 115,276

US$16.8m in F08.
Shareholders interest declined by 9% at FYE09 to
Due to distortions on translation and the effect of the register at US$115.3m. This is attributed to losses on the
hyperinflationary environment on cash flows, group translation of foreign subsidiaries and exchange
financials for F09 do not include a cash flow statement. differences arising from the currency change, which
However, the group reported capex spend of US$5m, offset retained earnings and increases in non-
which was largely dedicated to the maintenance and distributable reserves. As such, around 45% of
upgrading of plant and equipment in the ginning (54%), shareholders equity was non-distributable as at FYE09
seed (41%) and FMCG (4%) segments. The group (largely comprising asset revaluations realised in F08).
further authorised an additional US$15.4m of capex in
F09, which had yet to be undertaken by FYE09. Net gearing registered at 30% at FYE09, with net debt
to EBITDA at 101%. Although no US$ comparatives
Gearing and liquidity profile for F08’s performance were available, the significant
deterioration in sales volumes implies weaker earnings
AICO operations are capital intensive and largely
based gearing metrics as at FYE09. Cash and
comprise plant and equipment. However, the group also
equivalents covered short term debt by just 0.1x at
utilises significant working capital, with receivables and
FYE09, while operating income covered finance charges
inventory accounting for 28% of the asset base
by 3.1x.
(although these levels fluctuate substantially throughout
the year). An ageing analysis of the debtors book at Year-to-date performance
FYE09 showed that 43% was past due, whilst a further
9% was considered irrecoverable (and duly provided Stronger volumes evidenced in the ginning division
for). As at FYE09, 22% of receivables pertained to underpinned higher than forecast revenues in 1Q F10.
exports, while the total foreign exchange exposure on Prior to February 2009, the group had been able to settle
costs of sales and operations in Z$, while receiving
Global Credit Rating Co. – Zimbabwe Corporate Credit Rating Report
predominantly US$ revenues. However, the official Future prospects
transition to US$ accounting has significantly inflated
Carry over stocks are expected to result in a marked
the group’s cost base, whilst meeting day-to-day costs in
increase in ginning sales volumes in F10. In addition,
US$ has proven challenging. This saw the gross profit
management envisages that turnover will be
margin decline to 36% in 1Q F10, from 57% in F09.
significantly boosted by a more stable seed business.
Sales volumes (tonnes) 1Q F09 1Q F10 %∆
% ∆ vs. Consequently, revenue is forecast to increase by 55% to
F09
Ginning 9,794 22,753 132.3 25.6
US$187m in F10. The gross profit margin is projected
Lint 3,961 6,881 73.7 (38.7) to recover to 52% by year end, while the operating
Ginned seed 3,780 15,062 298.5 181.2 margin is anticipated to outstrip the F09 performance
Other 2,053 810 (60.5) (47.1)
Spinning (due to cost rationalisation strategies). Accordingly,
Yarn 683 562 (17.7) 10.6 gearing measures are expected to improve significantly
Weaving - metres ('000s) 1,210 100 (91.7) (75.8)
Seed 9,107 4,480 (50.8) (57.7)
at FYE10, largely due to more robust earnings.
Cotton 773 30 (96.1) (98.8) Actual Budget
Maize 1,170 987 (15.6) (80.7) Operating forecast (US$)
Cotton 6,869 2,838 (58.7) 56.1 F09 F10
Other 295 625 111.9 (46.0) Revenue 120,677 187,192
FCMG 3,269 3,743 14.5 169.4 EBITDA 34,736 54,104
Operating income 26,886 58,286
Forex & fair value gains (losses) (1,350) (231)
Higher than budgeted administrative expenses largely Net finance charges (8,691) (9,332)
drove a negative operating margin in 1Q F10, although NPBT 16,845 48,723
Taxation (1,519) (16,402)
strong fair value and exchange gains supported a NPAT 15,326 32,321
positive NPBT in 1Q F10. However, production Shareholders interest 115,276 151,282
remained subdued, with capacity utilisation falling Debt 40,675 50,904
below sustainable levels in 1Q F10, given the real Cash & equivalents 5,700 4,743
Gross profit margin (%) 57.2 52.2
increases in costs. Op. margin (%) 22.3 31.1
Op. income: net interest (x) 3.1 6.2
Interim operating performance 1Q F10 % ∆ to Net gearing (%) 30.3 30.5
%∆
(US$) Actual Budget F09 Net debt to EBITDA (%) 100.7 85.3
Revenue 21,165 19,757 7.1 (29.8) Cash: short term debt (x) 0.1 0.1
EBITDA 628 (2,198) neg (92.8)
Operating income (606) (3,238) (81.3) n.a
Forex & fair value gains (losses) 4,466 - n.a n.a Growth going forward will hinge upon significant
Net finance charges (1,920) (1,706) 12.5 (11.6) foreign currency inflows into the country. In this regard,
NPBT 1,940 (4,944) neg (53.9)
Taxation (58) 1,092 neg (84.7)
group capex spend is projected to remain subdued, as
NPAT 1,882 (3,852) neg (50.9) capacity utilisation is expected to increase modestly in
Shareholders interest 122,801 123,414 - - the medium term (save for the FMCG business). Full
Debt 60,988 51,320 - -
Cash & equivalents 15,879 6,075 - -
recovery is also premised upon increased agriculture
Op. margin (%) neg neg - -
production, as all of the group’s divisions are highly
Op. income: net interest (x) neg neg - - sensitive to developments in the sector. In this regard,
Gross gearing (%) 49.7 41.6 - -
Net gearing (%) 36.7 36.7 - -
the group remains dedicated to the contract farming
Net debt to EBITDA (%) 1,795.7 neg - - process as a means of sustaining the inflow of affordable
inputs into the ginning and spinning segments. AICO is
Shareholders interest increased moderately at 1Q F10, also forecasting a fivefold increase in FMCG sales
improving by 7%. In keeping with its cyclical volumes for F10, driven by increased productivity under
borrowing pattern, AICO’s debt increased significantly Olivine operations. Going forward, an even distribution
at 1Q F10, registering at a higher US$61m, from of revenue and earnings amongst the three main
US$41m at FYE09. This is attributed to the utilisation divisions is targeted, with around 5% to derive from the
of short term facilities to support working capital spinning segment.
requirements, which typically rise with the onset of the
cotton marketing season in May. Increased borrowings
translated to higher cash holdings at 1Q F10. However,
as these funds are expected to be largely exhausted
during the buying season, liquid funds are projected to
be much lower at FYE10. Gross gearing registered at a
higher 50% at 1Q F10 (F09: 35%), while a stronger cash
position resulted in a less marked deterioration in net
gearing. Earnings based gearing metrics worsened
significantly however, due to the minimal EBITDA
registered in 1Q F10. Debt remained predominantly
short term in nature at 1Q F10, although cash covered
short term borrowings by an improved 0.3x.

Global Credit Rating Co. – Zimbabwe Corporate Credit Rating Report

 AICO Africa Limited

Z$'millions* US$'thousands
Income Statement Year end : 31 March 2005 2006 2007 2008 2009
Turnover 1,160 4,835 148,267 803,067,000 120,677
EBITDA 250 1,690 64,562 327,463,892 34,736
Depreciation (9) (81) (3,934) (35,892) (7,850)
Operating income 241 1,609 60,628 327,428,000 26,886
Net finance charges (277) 2,095 20,399 (39,287,000) (8,691)
Foreign exchange gains/(losses)* 71 (431) 4,572 2,402,000 (1,350)
NPBT 35 3,273 85,599 290,543,000 16,845
Taxation charge 2 (699) (23,533) (86,212,000) (1,519)
NPAT 37 2,574 62,067 204,331,000 15,326
Retained earnings 27 2,474 61,989 254,856,000 15,326

#
Cash Flow Statement

Cash generated by operations 243 3,660 84,476 771,442,000 n.a

Utilised to increase working capital (247) (2,714) (209,805) (1,344,892,000) n.a
Net interest paid (206) 2,095 24,997 (39,287,000) n.a
Taxation paid (22) (539) (7,873) (64,588,000) n.a
Cash flow from operations (233) 2,503 (108,205) (677,325,000) n.a
Maintenance capex** (9) (81) (3,934) (35,892) n.a
Discretionary cash flow from operations (242) 2,422 (112,139) (677,360,892) n.a
Dividends paid (27) 0 (561) (13,000) n.a
Retained cash flow (269) 2,422 (112,700) (677,373,892) n.a
Net expansionary capex (35) (175) (12,054) (59,550,108) n.a
Investments and other (21) (0) (393) (4,325,000) n.a
Proceeds on sale of assets/investments 0 36 1,350 2,610,000 n.a

Shares issued 6 0 2,349 59,000 n.a

Cash movement: (increase)/decrease (90) (4,763) (24,308) (89,717,657) n.a
Borrowings: increase/(decrease) 408 2,480 145,756 828,297,657 n.a
Net increase/(decrease) in debt 319 (2,283) 121,448 738,580,000 n.a

Balance Sheet

Ordinary shareholders interest 114 2,553 113,343 4,448,362,000 85,655

Outside shareholders interest 90 662 72,545 964,699,000 29,621
Total shareholders' interest 204 3,216 185,887 5,413,061,000 115,276
Short term debt 466 5,077 148,743 825,364,000 40,486
Long term debt 14 156 2,246 3,084,000 189
Total interest-bearing debt 481 5,232 150,989 828,448,000 40,675
Interest-free liabilities 160 2,047 87,414 2,352,016,000 56,959
Total liabilities 844 10,495 424,290 8,593,525,000 212,910
Fixed assets 134 736 143,064 6,777,845,000 132,770
Investments and advances 0 0 0 45,431,000 1,206
Cash and cash equivalent 145 4,908 29,216 89,747,000 5,700
Other current assets 565 4,852 252,010 1,680,502,000 73,234
Total assets 844 10,495 424,290 8,593,525,000 212,910

Ratios

Cash flow:
Operating cash flow : total debt (%) (48.4) 47.8 (71.7) (81.8) n.a
Discretionary cash flow : net debt (%) neg 746.1 neg neg n.a
Profitability:
EBITDA : revenues (%) 21.6 35.0 43.5 40.8 28.8
Operating profit margin (%) 20.8 33.3 40.9 40.8 22.3
EBITDA : average total assets (%) 67.7 53.8 32.2 7.7 16.8
Return on equity (%) neg 166.5 97.1 8.8 17.9
Coverage:
Operating income : gross interest (x) 0.8 5.0 6.7 6.0 3.0
Operating income : net interest (x) 0.9 n.a n.a. 8.3 3.1
Activity and liquidity:
Trading assets turnover (x) 4.3 3.6 1.5 1.3 0.9
Days receivable outstanding (days) 70.5 99.5 145.0 231.9 93.1
Current ratio (:1) 1.1 1.4 1.4 1.4 1.4
Capitalisation:
Net debt : equity (%) 164.9 10.1 65.5 13.6 30.3
Total debt : equity (%) 236.0 162.7 81.2 15.3 35.3
Total debt : EBITDA (%) 192.1 309.5 233.9 253.0 117.1
Net debt: EBITDA (%) 134.2 19.2 188.6 225.6 100.7

* All amounts have been "kilotised" and are stated at historical cost.
** Depreciation used as a proxy.