MIRA INFORM REPORT

 

 

Report Date :

20.07.2007

 

IDENTIFICATION DETAILS

 

Name :

ITO-YOKADO CO LTD

 

 

Registered Office :

8-8 Nibancho Chiyodaku Tokyo 102-8450

 

 

Country :

Japan

 

 

Date of Incorporation :

Mar 1913

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Supermarket chain operator

 

 

RATING & COMMENTS

 

MIRA’s Rating :

A

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Maximum Credit Limit :

Yen 153719.9 millions

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

--

 

 

name

 

ITO-YOKADO CO LTD

 

 

REGD NAME

 

KK Ito-Yokado

 

 

MAIN OFFICE

 

8-8 Nibancho Chiyodaku Tokyo 102-8450 JAPAN

Tel        : 03-6238-2111   

URL      : http://www.7andi.com

E-Mail address: Not specified

 

 

ACTIVITIES

 

Supermarket chain operator

 

 

STORES

 

Tokyo (31), Kanagawa (30), Saitama (22), Chiba (21), Hokkaido (14), Tochigi (4), others (57)  

 

 

CHIEF EXEC

 

ATSUSHI KAMEI, PRES & CEO

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                             A/SALES                      Yen 5,337,806 M

PAYMENTS      REGULAR                     CAPITAL                       Yen 47,987  M

TREND             STEADY                       WORTH                        Yen 1,969,149 M

STARTED         1913                             EMPLOYES                  11,158

 

 

COMMENT

 

LEADING SUPERMARKET CHAIN OPERATOR.  FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

 

 

MAX CREDIT LIMIT: YEN 153,719.9 MILLION, 30 DAYS NORMAL TERMS.

 

                        Forecast (or estimated) figures for 28/02/2005 fiscal term

                        Figures up to the 28/02/2005 fiscal term belong to the Ito-Yokado Co Ltd.

                        After that term, belongs to Seven & I Holdings Co Ltd.

 

 

HIGHLIGHTS

 

This is the top domestic supermarket operator in terms of pretax profits.  Maintains excellent con performance backed by strong operations of Seven-Eleven Japan, a convenience chain operator, which operates a total 11,310 stores domestically, 5,878 stores in N America & 33 stores in China, grand total 17,211 stores.  The first store in China was opened in spring 1998 in Beijing.  Opened IY Bank, a convenience store-based retail bank in Dec 2000 to branch out into financial services.  The banking operations contributing to the group earnings growth, due to its convenient use in the convenience store 24 hours a day.  In Sept 2005, founded a Holding Company, Seven & I Holdings Co Ltd and delisted from Tokyo S/E.  The subject is the core of the group, including Seven Eleven Japan Co Ltd, Denies Japan.

 

 

FINANCIAL INFORMATION

 

The financials herein refer to the holding company, Seven & I Holdings Co Ltd.

 

The sales amount for the Feb/2007 fiscal term amounted to Yen 5,337,806 million, a 37% up from Yen 3,895,771 million in the previous term.  Consolidated business with Millennium contributed (converted Millennium to wholly-owned sub at cost of Yen 235 billion).  Seven Eleven continued to rise on the back of 550 store increase and improved gross profit ratio.  Ito-Yokado buoyed by restructuring.  Seven-Eleven bank business continued growing.  As a result, profits improved greatly, posting Yen 282,016 million recurring profit and Yen 133,419 million net profit, respectively, compared with Yen 248,110 million recurring profit and Yen 87,930 million net profit, respectively, a year ago.

 

For the current term ending Feb 2008 the recurring is projected at Yen 292,000 million and net profit at Yen 150,000 million, respectively, on a 7.8% rise in turnover, to Yen 5,755,000 million.  Continued strength in the operations of Seven-Eleven Japan, as well as improved business activities of banking affiliate, IY Bank Co, will help the group earnings.

 

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 153,719.9 million, on 30 days normal terms.

 

 

REGISTRATION

           

Date Registered:            Mar 1913

Legal Status:                 Limited Company (Kabushiki Kaisha)

Authorized:                    840 million shares

Issued:                          418,717,685 shares

Sum:                            Yen 47,987 million

Major shareholders (%): Seven & I Holdings Co Ltd*(100)

*.. Holding company, formed 2005, listed Tokyo S/E, capital Yen 50,000 million, turnover Yen 5,337,806 million (Consolidated financials are as attached).

           

Nothing detrimental is knows as to the commercial morality of executives.

 

           

OPERATION

 

Activities: Supermarket chain operator, with a total 179 stores mainly in Tokyo & Kanagawa-Pref     regions, extending into the neighboring prefectures (--100%).

 

Clients: Consumers and business firms

 

No. of accounts: Unavailable

 

Domestic areas of activities: Centering in Tokyo & Kanagawa-Pref districts

 

Suppliers: [Mfrs, wholesalers] Itochu Corp, Itochu Shokuhin, Tokyo Soir, other.

 

Payment record: Regular

 

Location: Business area in Tokyo.  Office premises at the caption address are owned and maintained satisfactorily.

 

 

Bank References

 

SMBC (H/O)

Resona Bank (H/O)

 

Relations: Satisfactory

 

 

CONSOLIDATED FINANCES OF THE HOLDING COMPANY, SEVEN & i HOLDINGS CO LTD)

 

FINANCES: (Consolidated in million yen)

 

　

　

Terms Ending:

28/02/2007

28/02/2006

INCOME STATEMENT

 

 

 

  Annual Sales

　

5,337,806

3,895,771

 

  Cost of Sales

3,568,335

2,488,509

 

      GROSS PROFIT

1,769,471

1,407,263

 

  Selling & Adm Costs

1,482,632

1,162,322

 

      OPERATING PROFIT

286,838

244,940

 

  Non-Operating P/L

-4,832

3,170

 

      RECURRING PROFIT

282,016

248,110

　

      NET PROFIT

133,419

87,930

BALANCE SHEET

 

 

 

 

  Cash

　

575,643

619,537

 

  Receivables

 

128,336

110,829

 

  Inventory

 

159,897

148,913

 

  Securities, Marketable

131,300

　

 

  Other Current Assets

279,200

223,540

 

      TOTAL CURRENT ASSETS

1,274,376

1,102,819

 

  Property & Equipment

1,333,157

1,200,492

 

  Intangibles

 

478,788

368,971

 

  Investments, Other Fixed Assets

722,871

752,596

 

      TOTAL ASSETS

3,809,192

3,424,878

 

  Payables

 

305,528

285,123

 

  Short-Term Bank Loans

176,913

114,462

 

　

 

　

　

 

  Other Current Liabs

615,215

583,274

 

      TOTAL CURRENT LIABS

1,097,656

982,859

 

  Debentures

 

145,000

115,000

 

  Long-Term Bank Loans

370,457

368,314

 

  Reserve for Retirement Allw

7,648

6,706

 

  Other Debts

　

219,282

234,119

 

      TOTAL LIABILITIES

1,840,043

1,706,998

 

      MINORITY INTERESTS

 

114,196

 

Common stock

50,000

50,000

 

Additional paid-in capital

766,185

611,704

 

Retained earnings

1,124,892

1,040,613

 

Evaluation p/l on investments/securities

(2,100)

7,953

 

Others

 

71,481

6,298

 

Treasury stock, at cost

(41,309)

(112,884)

 

      TOTAL S/HOLDERS` EQUITY

1,969,149

1,603,684

　

      TOTAL EQUITIES

3,809,192

3,424,878

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

28/02/2007

28/02/2006

 

Cash Flows from Operating Activities

　

157,209

217,325

 

Cash Flows from Investment Activities

-235,983

-388,080

 

Cash Flows from Financing Activities

37,241

103,093

　

Cash, Bank Deposits at the Term End

　

570,133

610,876

ANALYTICAL RATIOS            Terms ending:

28/02/2007

28/02/2006

 

 

Net Worth (S/Holders' Equity)

1,969,149

1,603,684

 

 

Current Ratio (%)

116.10

112.21

 

 

Net Worth Ratio (%)

51.69

46.82

 

 

Recurring Profit Ratio (%)

5.28

6.37

 

 

Net Profit Ratio (%)

2.50

2.26

 

 

Return On Equity (%)

6.78

5.48

 

 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

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

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

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average/normal.

 

Small

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

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

NR

In view of the lack of information, we have no basis upon which to recommend credit dealings

No Rating

 

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                 Payment record (10%)

Credit history (10%)                    Market trend (10%)                                Operational size (10%)

 

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions