MIRA
INFORM REPORT
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Report Date : |
13th
June 2006 |
IDENTIFICATION
DETAILS
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Name : |
COSTCO WHOLESALE JAPAN INC |
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Registered Office : |
SMBC Bldg 4F, 1-3-1 Nakane Meguroku Tokyo
152-0031 Japan |
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Country : |
Japan |
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Date of Incorporation : |
Apr 1998 |
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Legal Form : |
Limited Company |
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Line of Business : |
Membership warehouse store operator |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal.
Capable to meet normal commitments. |
Satisfactory |
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Maximum Credit Limit : |
YEN 605.5 MILLION |
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Status : |
Satisfactory
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Payment Behaviour : |
Regular
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Litigation : |
Clear |
name
COSTCO
WHOLESALE JAPAN INC
REGD NAME
Costco
Wholesale Japan KK
MAIN OFFICE
SMBC
Bldg 4F, 1-3-1 Nakane Meguroku Tokyo 152-0031 JAPAN
Tel:
03-5731-2072
Fax:
03-5731-2072
E-Mail address: info@costco.co.jp
ACTIVITIES
Membership warehouse store operator
STORE(S)
Hayama (Fukuoka), Makuhari (Chiba), Tamasakai (Tokyo), Amagasaki
(Hyogo) Kanazawa Seaside
(Yokohama)
OFFICER(S)
MIKE SINEGAL, PRES & CEO
Yen Amount
In million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 51,900 M
PAYMENTS REGULAR CAPITAL Yen 5,505 M
TREND STEADY WORTH Yen 5,505 M*
STARTED 1998 EMPLOYES 1,400
*.. Expressed by the paid-up capital only.
COMMENT
MEMBERSHIP WAREHOUSE STORE OPERATOR, WHOLLY OWNED BY COSTCO
WHOLESALE CORP, USA. FINANCIAL
SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGGEMENTS.
MAX CREDIT LIMIT: YEN 605.5 MILLION, NORMAL 30 DAYS TERMS.
HIGHLIGHTS
The subject company was established by Costco Wholesale Corp, USA,
in order to advance into Japan for operating its membership warehouse
stores. In 1999, opened the first store
in Hisayama (Fukuoka), followed by Chiba (Dec/2000), Tokyo (Sept/2002), Hyogo
(Apr/2003) and Kanazawa stores (Oct/2004).
The stores employ two membership systems: Business (Corporate) &
Gold Star (Individuals). Business
members account for about 30% of the total, while turnover from Business
members stands about 70% of total sales.
The firm aims to increase business members upward. The firm stocks 4,000 items, selling in bulk
at low prices. Handling items are:
fresh & frozen foods, processed foods, jewelry & watches, house-ware,
apparel, gardening tools, sporting goods, other. The firm aims to open 2 new stores/annually from 2007. The firm does not disclose financials except
the following partial figures (sales only).
The sales volume for Aug/2005 fiscal term amounted to Yen 51,900
million, nearly doubled from Yen 27,000 million in the previous term. The net profit is believed posted at Yen
7,700 million, compared with Yen 5,000 million the previous year. In the absence of full financials we have
stated the net worth only as equivalent to the paid-in capital.
For the current term ending Aug 2006 the net profit is projected
at Yen 7,900 million, on a 30% rise in turnover, to Yen 67,500 million. The sales targets are forecast by the firm,
according to news report.
The financial situation is considered maintained FAIR and good for
ORDINARY business engagements. Max
credit limit is estimated at Yen 605.5 million, on normal 30 days terms.
REGISTRATION
Date Registered: Apr
1998
Legal Status: Limited Company (Kabushiki Kaisha)
Authorized: 110.1 million shares
Issued: 110.1 million shares
Sum: Yen 5,505 million
Major shareholders (%): Costco Wholesale Corp, USA (100)
Nothing detrimental is known as to the commercial morality of
executives.
OPERATION
Activities: Membership warehouse store operator, with 5 stores
operating, wholesaling & retailing of the following goods (--100%)
(Product
categories – typical & not confined to these items):
Personal: jewelry & watches; apparel (quality brands/Kirkland Signature
apparel of dresses, sweaters, jeans, jackets, socks & accessories; health
& beauty: shampoo, soap, toothbrushes, shaving products, lotions,
foundation, vitamins, remedies, diapers, brand-name perfumes, other; office
supplies (desks & office furniture, paper, pads, stationery, file cabinets,
tables, other wide range of office accessories); seasonal/toys (toys,
seasonal/holiday items); books & media (imported books & magazines, DVD’s,
videos, music CD’s, PC software);
Outdoor/Home: lawn & garden (live plants, fertilizers, gardening tools
& supplies, patio furniture, barbecues); hardware /storage (power &
hand tools, ladders, compressors, pressure washers); sporting goods
(snowboards, golf clubs, bicycles, camping equipment, fitness equipment); auto
(oils, chemicals, auto cleaners, car batteries, other automotive accessories);
Processed foods: frozen foods (fresh frozen chicken, vegetables & seafood);
snacks & candy (name-brand candy bars, candies, chewing gums, mints, chips,
nuts, jerky, rice crackers); dry groceries (soy sauce, teas, olive oils,
coffee, cranberry products, other imported items); liquor (wine, spirits, sake,
beer);
Fresh foods: fresh meat (beef, port, chicken, other); fresh fish (including
sushi & sashimi trays); fresh produce (fresh fruits & vegetables –
washed, cut and assorted); fresh bakery (breads, pies, muffins, cookies,
pastries, croissants, custom-order cakes); fresh Deli (cheeses, ham, sausages,
seaweed, kimchi, sushi, sashimi, salads);
Services: optical (eyeglasses, frames & lenses, sunglasses); 1 hour
photo shop; tire center (brand-name vehicle tires, including balancing &
installation services); Food Court (quick snacks); delivery services (offers
delivery services from freezers, cooler items to sofas, refrigerators and up to
pallet quantities).
About
40% of the goods are imported from the parent and its group firms in USA,
other.
Clients: Individual consumers, business firms, other
No. of accounts: Unavailable
Domestic areas of activities: Nationwide
Suppliers: [Mfrs, wholesalers] Supplied from domestic mfrs and
wholesalers. Also, imports from Costco
Wholesale Corp, USA and its group firms.
Payment record: Regular
Location: Business area in Tokyo.
Office premises at the caption address are leased and maintained
satisfactorily.
Bank References
Bank of Tokyo-Mitsubishi UFG and SMBC
Relations: Satisfactory
FINANCES
(In Million Yen)
NOT MADE AVAILABLE
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial
base with the strongest capability for timely payment of interest and
principal sums |
Unlimited |
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71-85 |
Aa |
Possesses adequate working capital. No
caution needed for credit transaction. It has above average (strong)
capability for payment of interest and principal sums |
Large |
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56-70 |
A |
Financial & operational base are
regarded healthy. General unfavourable factors will not cause fatal effect.
Satisfactory capability for payment of interest and principal sums |
Fairly Large |
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41-55 |
Ba |
Overall operation is considered normal.
Capable to meet normal commitments. |
Satisfactory |
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26-40 |
B |
Unfavourable & favourable factors
carry similar weight in credit consideration. Capability to overcome
financial difficulties seems comparatively below average/normal. |
Small |
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11-25 |
Ca |
Adverse factors are apparent. Repayment of
interest and principal sums in default or expected to be in default upon
maturity |
Limited with full security |
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<10 |
C |
Absolute credit risk exists. Caution
needed to be exercised |
Credit not recommended |