MIRA INFORM REPORT

 

 

Report Date :

22.05.2007

 

IDENTIFICATION DETAILS

 

Name :

PARIS MIKI INC

 

 

Registered Office :

Tiffany Ginza Bldg, 2-7-17 Ginza Chuoku Tokyo 104-0061

 

 

Country :

Japan

 

 

Financials (as on) :

31.03.2006

 

 

Date of Incorporation :

Jan 1950

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Chain store operator of eyeglasses

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

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

Satisfactory

 

Maximum Credit Limit :

Yen 1365.4 millions

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

name

 

PARIS MIKI INC

 

 

REGD NAME

 

KK Miki

 

 

MAIN OFFICE

 

Tiffany Ginza Bldg, 2-7-17 Ginza Chuoku Tokyo 104-0061 JAPAN

Tel: 03-5159-8751    

URL : http://www.paris-miki.com/

E-Mail address: (thru the URL)

 

 

ACTIVITIES

 

Chain store operator of eyeglasses

 

 

STORES

 

1,054 stores domestic

 

 

OVERSEAS

 

USA (8), Europe (4), China (114), Hong Kong (3), Taiwan (4), Malaysia (6), Singapore (12), Thailand (5), Korea (15), Australia (31)

 

 

FACTORY(IES)

 

(subsidiaries)

 

 

CHIEF EXEC

 

ARMEL CAHIERRE, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                             A/SALES          Yen 68,011 M

PAYMENTS      REGULAR                     CAPITAL           Yen 5,901 M

TREND             STEADY                       WORTH            Yen 54,672 M

STARTED         1950                             EMPLOYES      4,228

 

 

COMMENT

 

CHAIN STORE OPERATOR SPECIALIZING IN EYEGLASSES.  FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

MAX CREDIT LIMIT: YEN 1,365.4 MILLION, 30 DAYS NORMAL TERMS.

 

                        Forecast (or estimated) figures for 31/03/2007 fiscal term

 

 

HIGHLIGHTS

 

The subject company was established by Toshio Tane as a clock shop in Kobe and in 1960 switched to eyeglasses.  Operates a total 1,054 stores domestically from Hokkaido to Kyushu, and 200 stores overseas.  Ranked top in number of stores and sales.  Known for computer graphics in helping individual customers select eyeglasses suiting personal taste (custom designed eyewear system).

           

 

FINANCIAL INFORMATION

 

The sales volume for Mar/2006 fiscal term amounted to Yen 68,011 million, a 1.3% down from Yen 68,921 million in the previous term.  The decline was due mainly to the switch of 15 own stores to franchisees.  In overseas, 15 new stores opened in China.  Overseas sales increased but not to the extent of covering decrease in domestic sales.  The recurring profit was posted at Yen 9,842 million and the net profit at Yen 5,594 million, respectively, compared with Yen 10,761 million recurring profit and Yen 4,647 million net profit, respectively, a year ago.  Booked Yen 208 million as extraordinary losses coming from the foreign exchange losses, and Yen 112 million as inventory evaluation losses.

           

For the term ended Mar 2007 the recurring profit was projected at and believed posted at     Yen 7,926 million and the net profit at Yen 4,193 million, respectively, on a 1.6% fall in turnover, to Yen 66,941 million.  Curtailed new store openings to focus on management reform at existing stores to lure customers.  Lenses continued growth.

 

(Apr/Dec/06 results): Sales Yen 51,317 million (down 2.0%), operating profit Yen 6,338 million (down 19.1%), recurring profit Yen 6,735 million (down 18.4%), net profit Yen 4,049 million (down 9.3%).  (% compared with the same period the previous year).  Overseas sales increased in China and other S/E Asian countries, but domestically sales declined by 2.6%.  Started reform of             existing store management to recover profitability.

 

 

The financial situation is considered maintained FAIR and good for ORDINARY business     engagements. Max credit limit is estimated at Yen 1,365.4 million, on 30 days normal terms.

 

 

REGISTRATION

 

Date Registered:            Jan 1950

Legal Status:                 Limited Company (Kabushiki Kaisha)

Authorized:                    223 million shares

Issued:                          56,057,474 shares

Sum:                            Yen 5,901 million

Major shareholders (%): Lunette Trading Inc (25.0), Codomo Ltd (10.1), Master Trust Bank of Japan T (5.8),

                                    Company’s Treasury Stock (5.5), Japan Trustee Services Bank T (4.2), Employees’

                                    S/Holding Assn (3.9), Credit Agricole Indosuez Lausanne (2.9), Mikio Tane (2.0), Hiroshi

                                    Tane (1.9), Nobuhiko Tane (1.4)

No. of shareholders:       11,052 as of Sept/06)

Listed on the S/Exchange (s) of: Tokyo

Managements:               Hiroshi Tane, ch; Armel Cahierre, pres; Seiji Katoh, dir; Peter Tasker, dir;

                                    Tsuyoshi Naitoh, dir

 

Newly appointed directors from outside effective 05/Feb/2007:

 

Yutaka Yamada, CFO (ex Nike Japan); Hidetsune Gotoh, strategic & planning manager (ex Boston Consultant Group); Yoko Hasegawa, marketing manager (ex Johnson Co Ltd).

           

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

 

 

Related companies

 

Great Kensetsu, other (Tot 15 as of Sept/06)

           

 

OPERATION

           

Activities: Chain store operator specializing in eyeglasses (100%): lenses, frames, sun glasses, contact lenses, other accessories, hearing aides, other.

 

Stores: 1,054 domestic; 200 overseas.

 

Clients: Consumers

 

No. of accounts: Unavailable

 

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Seiko Optical products, Hoya, Siemens Hearing Instruments, Johnson & Johnson, Seiko Optical Pentax, other.

 

Payment record: Regular

 

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

 

 

Bank References

 

SMBC (Shin-Yokohama)

MUFG (Muromachi)

 

Relations: Satisfactory

 

 

FINANCES

 

(In Million Yen)

FINANCES: (Consolidated in million yen)

 

　

　

Terms Ending:

31/03/2006

31/03/2005

INCOME STATEMENT

 

 

 

  Annual Sales

　

68,011

68,921

 

  Cost of Sales

19,520

18,487

 

      GROSS PROFIT

48,491

49,434

 

  Selling & Adm Costs

39,248

39,134

 

      OPERATING PROFIT

9,243

10,299

 

  Non-Operating P/L

599

462

 

      RECURRING PROFIT

9,842

10,761

　

      NET PROFIT

5,594

4,647

BALANCE SHEET

 

 

 

 

  Cash

　

23,143

18,535

 

  Receivables

 

2,393

2,481

 

  Inventory

 

8,338

8,851

 

  Securities, Marketable

3,776

3,551

 

  Other Current Assets

2,924

3,113

 

      TOTAL CURRENT ASSETS

40,574

36,531

 

  Property & Equipment

7,004

7,115

 

  Intangibles

 

266

270

 

  Investments, Other Fixed Assets

17,287

17,816

 

      TOTAL ASSETS

65,131

61,732

 

  Payables

 

2,543

2,286

 

  Short-Term Bank Loans

　

2

 

　

 

　

　

 

  Other Current Liabs

7,342

7,799

 

      TOTAL CURRENT LIABS

9,885

10,087

 

  Debentures

 

　

　

 

  Long-Term Bank Loans

　

　

 

  Reserve for Retirement Allw

23

21

 

  Other Debts

　

397

375

 

      TOTAL LIABILITIES

10,305

10,483

 

      MINORITY INTERESTS

152

129

 

Common stock

5,901

5,901

 

Additional paid-in capital

6,829

6,842

 

Retained earnings

47,183

45,096

 

Evaluation p/l on investments/securities

414

206

 

Others

 

468

249

 

Treasury stock, at cost

(6,123)

(7,174)

 

      TOTAL S/HOLDERS` EQUITY

54,672

51,120

　

      TOTAL EQUITIES

65,131

61,732

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/03/2006

31/03/2005

 

Cash Flows from Operating Activities

　

7,436

5,507

 

Cash Flows from Investment Activities

-478

430

 

Cash Flows from Financing Activities

-2,456

-7,142

　

Cash, Bank Deposits at the Term End

　

23,544

18,951

ANALYTICAL RATIOS            Terms ending:

31/03/2006

31/03/2005

 

 

Net Worth (S/Holders' Equity)

54,672

51,120

 

 

Current Ratio (%)

410.46

362.16

 

 

Net Worth Ratio (%)

83.94

82.81

 

 

Recurring Profit Ratio (%)

14.47

15.61

 

 

Net Profit Ratio (%)

8.23

6.74

 

 

Return On Equity (%)

10.23

9.09

 

 

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