Saab Automotive AB: modeFinance Credit Report

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Saab Automobile ABWednesday, 07 September 2011

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D C CC CCC B BB BBB A AA AAA

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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 Saab Automobile AB

Identification number SE5562588912

Country Sweden

ZIP code and city 46180 - Trollhattan

Address

+46 520 85000

www.saab.com

Legal form Limited liability company - AB

Account Unconsolidated

Incorporation date 1985

NACE 2 Sector 2910 - Manufacture of motor vehicles

Listed

Status Active

MORE Credit limit Not eligible for credit on the base of the available informations

31/12/2010 31/12/2009 31/12/2008

Turnover (th e) 757,124 1,509,554 1,442,961

Rating CC B D

Probability of default 36.00% 5.00% 100.00%

Confidence Level 100% 100% 100%

Solvency ratios

Leverage ratio 4.00 18.30 -3.79

Total asset/Total liabilties 1.25 1.05 0.74

Liquidity ratios

Current Ratio 0.69 0.72 0.34

Quick Ratio 0.43 0.54 0.16

Profitability and economic equili-

brium ratios

Return on investement ROI (%) -31.37 45.91 -41.75

Return on equity ROE (%) -149.48 878.97 -124.10

Asset turnover 0.67 1.79 1.57

Interest paid weight -0.02 0.02 -0.09

Gross Profit/Operating revenue -0.15 -0.27 -0.16

Interest Coverage ratios

EBIT interest coverage ratio -52.10 48.29 -11.36

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 4.00 0.53 1.82 3.62 -1.88

Total asset/Total liabilties 1.25 2.88 1.54 1.24 0.98

Liquidity ratios

Current Ratio 0.69 2.60 1.32 1.05 0.71

Quick Ratio 0.43 1.74 0.87 0.67 0.49

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

Interest Coverage ratios

EBIT interest coverage ratio -52.10 94.01 5.06 -0.43 -5.24

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

Numer of analyzed companies - 83 288 270 119

(Average) Rating CC A BB B CC

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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Sector Analysis - Graphs


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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 SEK - EUR 0.11154 0.09754 0.092

Total assets 1,122,079 841,589 919,779

Fixed assets 728,794 291,162 523,275

Intangible fixed assets 79,973 780 42,962

Tangible fixed assets 23,758 266,874 432,198

Other fixed assets 625,063 23,508 48,114

Current assets 393,285 550,427 396,504

Stocks 149,239 139,875 213,615

Debtors 42,831 14,144 21,527

Other current assets 201,216 396,409 161,361

Cash & cash equivalent 160,727 211,763 11,132

Shareholders funds 224,527 43,601 -329,439

Capital 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

Other non-current liabilities 62,350 32,676 95,492

Current liabilities 566,282 765,312 1,153,725

Loans 8,923 0 0

Creditors 133,512 53,745 146,090

Other current liabilities 423,847 711,566 1,007,635

Total shareh. funds & liab. 1,122,079 841,589 919,779

NET DEBT (th e) 31/12/2010 31/12/2009 31/12/2008

Short term debts 8,923 0 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 31/12/2009 31/12/2008

Working capital 58,558 100,273 89,052

Net Current Assets -172,996 -214,884 -757,221

31/12/2010 31/12/2009 31/12/2008

Days Sales Of Inventory (DIO) 72 34 54

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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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 SEK - EUR 0.11154 0.09754 0.092

Sales 702,805 593,053 1,438,914

Revenues growth (%) 18.5 -58.8 -

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

own construction capitalized54,319 916,501 4,047

Operating revenue / turnover 757,124 1,509,554 1,442,961

Total operating costs 1,105,794 1,151,576 1,824,561

Costs growth (%) -4 -37 -

Service costs - - -

Material costs - - -

Costs of employees - - -

EBITDA -338,520 524,774 -229,991

Depreciation 10,150 166,796 151,610

EBIT -348,670 357,978 -381,600

Financial P/L -10,038 20,971 -35,971

Financial revenue 11,488 29,067 29,715

Financial expenses 21,527 8,096 65,685

Interest paid 6,692 7,413 33,579

P/L before tax -358,708 378,949 -417,571

Extr. and other P/L - 0 0

Extr. and other revenue - 0 0

Extr. and other expenses - 0 0

P/L before tax + Extr. and other P/L - 378,949 -417,571

Taxation -23,089 -4,292 -8,740

P/L for period -335,620 383,241 -408,831

31/12/2010 31/12/2009 31/12/2008

Costs of Good Sold 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 31/12/2009 31/12/2008

Cash flow -325,470 550,037 -257,222

Added value - - -

31/12/2010 31/12/2009 31/12/2008

Number of employees - 3,743 3,867


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Evolutions and trends


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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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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. Rating: C

Country ISO code NL Operating revenue (MIL $) 1,140

NACE Rev. 2, Core code - Total Assets (MIL $) 1,440

Direct % 100.00 Number of Employees 3,888

Total % 100.00 Information date 2010/12

Address: Not available

Subsidiaries (the first twenty subsidiaries ordered by Direct %)

GENERAL MOTORS NORDISKA AB Rating: AA

Country ISO code SE Operating revenue (MIL $) 126

NACE Rev. 2, Core code - Total Assets (MIL $) 1

Direct % 100.00 Number of Employees -


GOLDCUP 6300 AB Rating: -

Country ISO code SE Operating revenue (MIL $) -

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




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SAAB AUTOMOBILE SPAIN SL. Rating: -

Country ISO code ES Operating revenue (MIL $) -




SAAB CANADA INC (CANADA) Rating: -

Country ISO code CA Operating revenue (MIL $) -




SAAB DEUTSCHLAND GESELLSCHAFT MIT BESCHRÄNKTER HAFTUNG Rating: B

Country ISO code DE Operating revenue (MIL $) 144




SAAB AUTOMOBILE ITALY Rating: -

Country ISO code IT Operating revenue (MIL $) -




SAAB AUTOMOBILE PARTS AB Rating: B



Direct % 100.00 Number of Employees 105


SAAB AUTOMOBILE POWERTRAIN AB Rating: BBB



Direct % 100.00 Number of Employees 439


SAAB AUTOMOBILE TOOLS AB Rating: -





SAAB CARS AUSTRALIA PTY LTD Rating: -

Country ISO code AU Operating revenue (MIL $) -




SAAB CARS NORTH AMERICA INC Rating: -

Country ISO code US Operating revenue (MIL $) -





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SAAB RIVE GAUGE Rating: -

Country ISO code FR Operating revenue (MIL $) -




SAAB JAPAN INC. Rating: -

Country ISO code JP Operating revenue (MIL $) -


Direct % MO Number of Employees -

Total % - Information date 2010/04


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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 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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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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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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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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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 MORE rating

Where AREA Science Park

34149 Trieste, via Padriciano 99 - ITALY

Info [email protected]

web www.modefinance.com

Phone +39 040 3755337

Saab Automotive AB: modeFinance Credit Report

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