APROMAS JSC - miepo

Apromas JSC
PUBLIC COMPANIES PRIVATISATION SERIES
LOCATION
Edinet, 99 Independentei str., MD-4601, Edinet district
SECTOR
Manufacture of special-purpose machinery and equipment
PUBLIC STAKE
71.41 %
BACKGROUND
The company was established back in 1954.
Its traditional specialization is solid wood processing
machinery and equipment (lathe) manufacturing. The company’s
production is sold only on the local market.
The company is located in Edinet, along the M14-E583
national road. The company’s operating facilities are located
on a 4.8 ha land which is 97.9% public property (local
authorities) and cover about 14.4 thousand sq. m of production
facilities, warehouses, administrative buildings etc.
The company employs about 9 people.
KEY REASONS TO INVEST
• Good-condition production infrastructure
• Excellent site location to accommodate complex industrial
facilities
About Moldova
Standard time zone: UTC/GMT +2 hours
Distance to: Brussels-2200km, Berlin-1500km, Moscow-1300km,
Odessa-200km, Bucharest-450km
Currency: Moldovan Lei (MDL); USD/MDL – 1/12.11,
EUR/MDL – 1/16.11
Population: 3.5 million
Administrative division: 37 first-tier units, including 32 districts
Gini index: 38.0 (Medium)
Human Development Index: ∆0.649
Main transport gates: Chisinau International Airport (Code:KIV,
www.airport.md), Giurgiulesti International Free Port (www.
gipf.md), nine international cross-border points with Romania
and 26 international cross-border points with Ukraine.
Macroeconomic Country Profile
Country RM RO UA
1. Regionally attractive
fiscal and non-fiscal
regime
• Attractive corporate tax rate
(12% in 2012), lowest in region
• Extensive network of double taxation
treaties
• Fiscal and non-fiscal incentives
for Free Economic Zone residents:
Exemption from VAT; Exemption
from customs duties and excise
duties on goods imported into the
FEZ and subsequently exported;
0% corporate tax rate; 10-year
protection against adverse changes
in legislation; Infrastructure
in place (transport, water, gas,
electricity)
Why invest in Moldova
2. Stable macroeconomic
indicators and
CIS growth markets
3. Lowest average 4. Access to EU and 5.
(500M + 275M = 775M potential
high growth
customers)
• 2008-2010 GDP growth: 6.3%
• GDP growth: 6.8% (2011)
• Budget deficit: 2.4% (2011)
• Inflation rate: 7.8% (2011)
• Unemployment rate: 6.7% (2011)
wage in the region –
€1.2/h
(against €2.2/h in UA, €4.2/h in
RO and BG)
• Average monthly salary €190
• High education level (80% attain
secondary education, 38% pursue
higher education), strong technical
education
• 70% of population is multilingual
GDP 2011 (B $) 11.99 179.79 329.32
GDP 2011 per capita ($) 3,330 9,440 7,230
GDP Growth 2012E 0.3% 1.4% 2.4%
Moody’s Gov B Rating B3 Baa3 B3
Population 2011 (M) 3.6 19.04 45.5
FDI 2011 (B $) 0.28 2.7 7.2
FDI per capita ($) 79 139 158
• Advantageous free trade agreements
with EU and CIS countries
• Ongoing negotiations on
EU-Moldova DCFTA (over 4 rounds
of negotiations)
• International port access
• Constantly upgrading Road
Infrastructure
Strong political
agenda to embark
on EU led integration
processes
• Best performer of EU Eastern
Partnership
• Ongoing negotiation of
EU-Moldova Association
Agreement (over 14 rounds of
negotiations)
8 | Privatisation
Finasist Consulting Ltd.

Key financials
BALANCE SHEET (USD*) 2009 2010 2011
1 LONG-TERM ASSETS
1.1 Intangible assets 010 0 0 0
1.2 Amortization of intangible assets 011 0 0 0
1.3 Long-term tangible assets 020 1.429.120 1.415.633 1.329.583
1.4 Depreciation of long-term tangible 021 713.719 694.082 598.261
assets
1.5 Long-term financial assets 030 0 0 0
Total for section 1 040 715.401 721.550 731.322
2 CURRENT ASSETS
2.1 Stocks of goods and materials 050 152.591 158.378 170.860
2.2 Short-term receivables 060 6.772 1.082 663
2.3 Short-term receivables related to 070 326 3 0
budget settlements
2.4 Short-term investments 080 0 0 0
2.5 Cash 090 450 335 303
2.6 Other short-term assets 100 0 633 590
Total for section 2 110 160.138 160.432 172.416
TOTAL FOR ASSETS 120 875.539 881.982 903.737
3 SHAREHOLDER'S EQUITY
3.1 Share capital 130 687.655 696.017 722.068
3.2 Unpaid capital 140 0 0 0
3.3 Withdrawn capital 150 0 0 0
3.4 Reserves 160 165.659 167.674 173.950
3.5 Corrections of prior period results 170 0 0 0
3.6 Retained earnings (uncovered loss) 180 -1.100 -101 -13.714
of previous years
3.7 Net income (net loss) of the reporting
190 1.001 -13.118 -8.478
year
3.8 Net income used in the reporting 200 0 0 0
year
3.9 Additional capital 210 0 0 0
3.10 Secondary capital 220 0 0 0
Total for section 3 230 853.214 850.472 873.826
4 LONG-TERM LIABILITIES
4.1 Long-term financial debt 240 0 0 0
4.2 Calculated long-term debt 250 0 0 0
Total for section 4 260 0 0 0
5 SHORT-TERM LIABILITIES
5.1 Financial liabilities 270 0 0 0
5.2 Trade liabilities 280 1.549 1.465 1.314
5.3 Liabilities on wages 290 9.522 16.405 8.006
5.4 Liabilities on insurance 300 2.096 5.950 11.558
5.5 Liabilities on budget settlements 310 6.227 6.524 7.865
5.6 Other calculated liabilities 320 2.932 1.166 1.168
Total for section 5 330 22.326 31.510 29.911
TOTAL FOR EQUITY & LIABILITIES 340 875.539 881.982 903.737
* values in USD are calculated based on MDL data presented by the companies using the exchange rate MDL/USD at the end of each year
Full-time privatization promotion
and investment attraction team
Angela Susanu
Deputy Director of Moldovan Public
Property Agency
office@app.gov.md
Tel. +373 22 234350
Octavian Berzan
Deputy Director of Moldovan Investment
and Export Promotion Organisation
office@miepo.md
Tel. +373 22 232703
CONTACTS
Leadership team
Valeriu Lazar
Deputy Prime Minister
Minister of Economy of the Republic
of Moldova
Tudor Copaci
Director of Public Property Agency of
Moldova
Denis Jelimalai
Director of Moldovan Investment and
Export Promotion Organisation
GENERAL DISCLOSURE
This company profile teaser is essential reading for any
serious investor, providing comprehensive financial information
on a company’s performance, position and cash
flows over the past 3 years. This information, extracted
from reported financial statements, forms the building
blocks for any analysis undertaken by investment professionals.
The information in this presentation is subject to updating,
revision, further verification and amendment without notice.
No reliance may be placed for any purpose whatsoever on
the information or opinions contained in this investment
profile or any other document or oral statement or on the
completeness, accuracy or fairness of the information and/
or opinions therein. This research is based on current
public information that is considered reliable. Investors
shouldn’t consider this report as a single factor in making
their investment decision.
This research is not an offer to sell or the solicitation of
an offer to buy. It does not constitute a personal recommendation
or take into account the particular investment
objectives, financial situations, or needs of individual
investor. One should consider whether any advice or recommendation
in this research is suitable for their particular
circumstances and, if appropriate, seek professional
advice, including tax advice. Past performance is not a
guide to future performance, future returns are not guaranteed,
and a loss of original capital may occur. Fluctuations
in exchange rates could have adverse effects on the value
or price of, or income derived from, certain investments.
PROFIT & LOSS STATEMENT (USD*) 2009 2010 2011
Net Sales 010 13.902 11.167 9.572
Cost of sales 020 12.038 9.319 7.815
Gross profit (loss) 030 1.864 1.848 1.757
Other operating incomes 040 6.752 2.985 22.002
Selling and marketing expenses 050 673 0 0
General and administrative expenses 060 29.560 19.204 24.033
Other operating expenses 070 54 324 15.603
Operating result: profit (loss) 080 -21.671 -14.695 -15.877
Investing result: profit (loss) 090 22.520 1.577 6.331
Financing result: profit (loss) 100 152 0 1.069
Financial-economic result: profit 110 1.001 -13.118 -8.478
(loss)
Extraordinary result: profit (loss) 120 0 0 0
Profit (loss) of the reporting period 130 1.001 -13.118 -8.478
before taxation
Expenses (savings) on income tax 140 0 0 0
Net profit (loss) 150 1.001 -13.118 -8.478
GROWTH RATES (YOY)
Total assets 0,7% 2,5%
Long-term assets 0,9% 1,4%
Current assets 0,2% 7,5%
Total equity -0,3% 2,7%
Total liabilities 41,1% -5,1%
Net sales -19,7% -14,3%
Net profit -1410,9% -35,4%
RATIOS
ROE 0,1% -1,5% -1,0%
ROA 0,1% -1,5% -0,9%
ROS 7,2% -117,5% -88,6%
Current liquidity ratio 13,9% 19,6% 17,3%
* values in USD are calculated based on MDL data presented by the companies using the exchange rate MDL/USD at the end of each year
Public Property Agency of Republic of Moldova
Moldovan Investment and Export Promotion Organization
Privatisation | 9