MIRA INFORM REPORT

 

 

Report Date :

28.05.2007

 

IDENTIFICATION DETAILS

 

Name :

ONWARD KASHIYAMA CO LTD

 

 

Registered Office :

3-10-5 Nihombashi Chuoku Tokyo 103-8239

 

 

Country :

Japan

 

 

Financials (as on) :

28.02.2007

 

 

Date of Incorporation :

Sept 1947

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Apparel Manufacturer.

 

 

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 9479.3 millions

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Regular

 

 

Litigation :

--

 

 

name

 

ONWARD KASHIYAMA CO LTD

 

 

REGD NAME

 

KK Onward Kashiyama

 

 

MAIN OFFICE

 

3-10-5 Nihombashi Chuoku Tokyo 103-8239 JAPAN

Tel: 03-3272-2312    

URL: http://www.onward.co.jp/

E-Mail address: info@onward.co.jp

                       

* The given address is its Tokyo Branch at: 3-14-11 Kaigan Minatoku Tokyo

 

 

ACTIVITIES

 

Apparel mfr

 

 

BRANCHES

 

Tokyo (6), Atsugi, Sapporo, Sendai, Nagoya, Osaka (2), Hiroshima, Fukuoka, Yokohama

 

 

OVERSEAS

 

(Subsidiaries): Onward Kashiyama France SA; GIBo Co Spa (Italy); Onward Kashiyama USA Inc; Onward Kashiyama UK Ltd;  Shanghai Onward Fashion Co Ltd, Onward Fashion Korea Co Ltd; Showa Vietnam Co Ltd;

 

 

FACTORY(IES)

 

(subsidiaries)

 

 

CHIEF EXEC

 

TAKESHI HIROCHI, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                             A/SALES          Yen 318,690 M

PAYMENTS      REGULAR                     CAPITAL           Yen 30,079 M

TREND             STEADY                       WORTH            Yen 225,138 M

STARTED         1947                             EMPLOYES      2,652

 

 

COMMENT

 

APPAREL MFR.  FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR CREDIT ENGAGEMENTS: EUROS 100,000.

                       

MAX CREDIT LIMIT: YEN 9,479.3 MILLION, 30 DAYS NORMAL TERMS.

 

                        Forecast (or estimated) figures for 28/02/2008 fiscal term

 

 

HIGHLIGHTS

 

The subject company was established originally in 1927 as importer of sporting goods. This is the largest company in fashion industry with men’s and women’s suits as mainline.  Well-known as “Onward” brand.  Handles overseas brands thru subsidiaries.  Strong in sales to department stores.  Has strong group firm, Impact 21, listed on TSE. Mfr & retailer of women’s apparel under Ralph Lauren license.  Reportedly, the firm will take the British brand Joseph to China this fall.  The firm’s Chinese subsidiary will open three shops in department stores in Beijing & Shanghai in the first year.  The firm spent some Yen 17 billion to acquire rights to the Joseph brand in 2005, but up until now it has not promoted the brand in Asia outside Japan.

           

 

FINANCIAL INFORMATION

 

The sales volume for Feb.2007 fiscal term amounted to Yen 318,690 million, a 12.6% up from Yen 283,110 million in the previous term.  This is thanks to the newly added consolidated subsidiaries of GIBO Co group and Joseph in Europe.  Their brand power contributed to consolidated income.  Ralph Lauren brand sales also rose.  The recurring profit was posted at Yen 27,407 million and the net profit at Yen 11,438 million, respectively, compared with Yen 27,167 million recurring profit and Yen 11,091 million net profit, respectively, a year ago.

           

For the current term ending Feb 2008 the recurring profit is projected at Yen 28,000 million and the net profit at Yen 14,000 million, on a 7.1% fall in turnover, to Yen 296,000 million.  This is due to the sale of Impact 21, a licensee mfr of Ralph Lauren brand, to the original owner Polo Ralph Lauren Japan.

 

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 9,479.3 million, on 30 days normal terms.  The proposed amount is considered well within the firm’s financial capacities.

 

 

 

REGISTRATION

 

Date Registered:            Sept 1947

Legal Status:                 Limited Company (Kabushiki Kaisha)

Authorized:                    400 million shares

Issued:                          172,921,669 shares

Sum:                            Yen 30,079 million

Major shareholders (%): Japan Trustee Services Bank T (6.9), Kashiyama Shogaku Zaidan (5.3), Master Trust

                                    Bank of Japan T (4.3), Nippon Life Ins (3.8), Isetan Co (3.0), Daiichi Life Ins (2.5), SMBC

                                    (1.8), JB Morgan Chase Bank (1.7), Zen-Noh (1.7), Morgan Stanley & Co Inc (1.6);

                                    foreign owners (30.6)

No. of shareholders:       9,542

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

Managements:               Akira Baba, hon ch; Takeshi Hirochi, pres; Shigeru Kamimura, rep sir; Kazuya Baba, rep

                                    dir; Tsutomu Ohnuma, dir; Isao Yamane, dir; Masaaki Yoshizawa, dir; Ryuji Yoshie, dir;

                                    Tadayoshi Kobayashi, dir; Hachiro Honjo, dir

           

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

 

 

Related companies

 

Chacott Co Ltd, Oak Co Ltd, other (Tot 52 as of Aug/06)

 

           

OPERATION

           

Activities: Manufactures clothing and other textile products (95%), others (5%).

 

Clients: [Department stores, chain stores, apparel stores] Takashimaya, Isetan, Seibu Department Stores, Sogo, Daimaru, Kinki Department Stores, Mitsukoshi, Tenmaya, Tobu Department Stores, other.

 

No. of accounts: 800

 

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Mitsubishi Corp, Takisada Osaka, Mitsui & Co, Sumikin Bussan Corp, Marubeni Corp, Yagi Corp, Itochu Corp, other.

 

Payment record: Regular

 

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

 

 

Bank References

 

SMBC (Ningyocho)

BUFG (Kyobashi-Chuo)

 

Relations: Satisfactory

 

 

FINANCES

 

(In Million Yen)

FINANCES: (Consolidated in million yen)

 

　

　

Terms Ending:

28/02/2007

28/02/2006

INCOME STATEMENT

 

 

 

  Annual Sales

　

318,690

283,110

 

  Cost of Sales

175,795

152,042

 

      GROSS PROFIT

142,895

131,068

 

  Selling & Adm Costs

117,464

106,360

 

      OPERATING PROFIT

25,431

24,707

 

  Non-Operating P/L

1,977

2,460

 

      RECURRING PROFIT

27,407

27,167

　

      NET PROFIT

11,438

11,091

BALANCE SHEET

 

 

 

 

  Cash

　

57,390

56,136

 

  Receivables

 

32,307

27,675

 

  Inventory

 

37,097

31,116

 

  Securities, Marketable

　

　

 

  Other Current Assets

8,402

20,842

 

      TOTAL CURRENT ASSETS

135,196

135,769

 

  Property & Equipment

94,850

33,083

 

  Intangibles

 

27,094

26,767

 

  Investments, Other Fixed Assets

90,796

133,784

 

      TOTAL ASSETS

347,936

329,403

 

  Payables

 

51,692

46,926

 

  Short-Term Bank Loans

26,916

26,419

 

　

 

　

　

 

  Other Current Liabs

24,885

24,272

 

      TOTAL CURRENT LIABS

103,493

97,617

 

  Debentures

 

　

　

 

  Long-Term Bank Loans

　

　

 

  Reserve for Retirement Allw

5,223

4,264

 

  Other Debts

　

14,082

5,922

 

      TOTAL LIABILITIES

122,798

107,803

 

      MINORITY INTERESTS

21,220

1,772

 

Common stock

30,079

30,079

 

Additional paid-in capital

50,045

50,044

 

Retained earnings

148,953

137,922

 

Evaluation p/l on investments/securities

3,813

5,291

 

Others

 

8,726

(3,063)

 

Treasury stock, at cost

(16,478)

(16,447)

 

      TOTAL S/HOLDERS` EQUITY

225,138

203,826

　

      TOTAL EQUITIES

347,936

329,403

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

28/02/2007

28/02/2006

 

Cash Flows from Operating Activities

　

17,362

26,758

 

Cash Flows from Investment Activities

-13,849

-37,210

 

Cash Flows from Financing Activities

-5,837

-15,093

　

Cash, Bank Deposits at the Term End

　

364

59

ANALYTICAL RATIOS            Terms ending:

28/02/2007

28/02/2006

 

 

Net Worth (S/Holders' Equity)

225,138

203,826

 

 

Current Ratio (%)

130.63

139.08

 

 

Net Worth Ratio (%)

64.71

61.88

 

 

Recurring Profit Ratio (%)

8.60

9.60

 

 

Net Profit Ratio (%)

3.59

3.92

 

 

Return On Equity (%)

5.08

5.44

 

 

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