MIRA INFORM REPORT

 

 

Report Date :

17.09.2007

 

IDENTIFICATION DETAILS

 

Name :

K MIKIMOTO & CO LTD

 

 

Registered Office :

1-8-9 Tsukiji Chuoku Tokyo 104-0045

 

 

Country :

Japan

 

 

Financials (as on) :

31.08.2007

 

 

Date of Incorporation :

May 1949

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Manufacturer, Wholesale, Culture, and Retail of Pearls, other Jewelry

 

 

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

 

Status :

Satisfactory

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

COMPANY NAME

 

K MIKIMOTO & CO LTD

REGD NAME:   KK Mikimoto

 

 

ADDRESS

 

MAIN OFFICE

 

1-8-9 Tsukiji Chuoku Tokyo 104-0045 JAPAN

Tel        : 03-6226-9910    

Fax       : 03-6226-9871

URL      : http://www.mikimoto.com/

E-Mail   : contact@mikimoto.com

 

The given address is a gift shop operated by a subsidiary, KK Mikimoto   Gift Boutique, at 2-24-1 Higashi-Ueno Taitoku Tokyo, as given.

 

 

ACTIVITIES

 

Culture, mfg, wholesale, retail of pearls, other jewelry

 

 

BRANCHES

 

Osaka, Nagoya, Kobe; (Overseas): USA, France, UK, Hong Kong

 

 

STORE(S)

 

Domestic: Tokyo (4), Yokohama (2), Osaka (3), Chiba, Nagoya (Tot 11);

In-shops (department stores, hotels, etc) & franchisees: 80.                                 

Overseas: New York, Costa Mesa, Las Vegas, Beverly Hills (--USA), Korea (4), London, Paris, Monaco, Monte Carlo, Kuala Lumpur, Hong Kong, Shanghai, Bangkok (Tot 16)

 

 

FACTORY(IES)

 

Toba (2) (pearl culture farms)

 

 

OFFICERS

 

Yoshimi Itoh, ch                         TOSHIO TANAKA, PRES

Masamitsu Tomita, dir                Hiroshi Inoue, dir

Takashi Shimokura, dir               Naoki Terasawa, dir

 

Yen Amount

 

In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES        FAIR                 A/SALES          Yen 30,465 M

PAYMENTS      REGULAR         CAPITAL           Yen 500 M

TREND             STEADY           WORTH            Yen 9,830 M

STARTED         1949                 EMPLOYES      591

 

 

COMMENT

 

RETAILER SPECIALIZING IN PEARLS AND OTHER JFWELRY.  FINANCIAL SITUATION CONSIDERED FAIR BUT DOUBTFUL FOR     CREDIT ENGAGEMENTS: US$30,000,000 / O/A 30 DAYS.

 

 

HIGHLIGHTS

 

The subject company was established originally in 1899 by Kokichi Mikimoto, a son of a wealthy noodle shop in Toba, Mie-Pref, who was entranced by pearls and started creating cultured pearls at the age of 32, on his account.  People at that time cast dubious eyes on his conduct, some even saying he must be idiot to venture such a thing.  The venture, however, finally led him to be the giant in the pearl industry.  Incorporated in 1949, the firm has been succeeded by his descendants and present executives.  Today the firm is worldly known by its cultured pearls and other jewelry.  In addition to own stores, the goods are retailed at in-shops in hotels, department stores, etc, and franchisees nationwide, totaling about 80.  Operates 16 overseas stores.   In Jan 2006, opened a direct-run store in Bangkok, Thailand.  Goods are sold online “Net Shop”, too.

 

 

FINANCIAL INFORMATION

 

Financials in digest figures are disclosed for the 31/08/2006 fiscal term.  Up until then full financials had been released (See SUPPLEMENT for these financials)        

 

The sales volume for Aug/200 fiscal term amounted to Yen 30,465 million, a 1.4% up from Yen 30,038 million in the previous term.  Consumer spending recovered.  The recurring profit was posted at Yen 1,390 million and the net profit at Yen 223 million, respectively, compared with Yen 963 million recurring profit and Yen 203 million net profit, respectively, a year ago.  Material procurement costs were drastically reduced. 

 

For the term just ended Aug 2007 the recurring profit is estimated posted at Yen 1,400 million and the net profit at Yen 225 million, respectively, on a 3% rise in turnover, to Yen 31,300 million.  Weaker Yen against foreign currencies is thought assisted to uplift sales in Yen terms. 

 

The financial situation is considered FAIR and good for ORDINARY business engagements.  The proposed amount, however, is considered TOO UNREALISTIC from the recent financial status.  Max credit limit is estimated at Yen 428.6 million, on 30 days normal terms. 

 

 

REGISTRATION

 

Date Registered : May 1949

Legal Status                  : Limited Company (Kabushiki Kaisha)

Authorized                     : 4 million shares

Issued                           : 1 million shares

Sum                             : Yen 500 million

           

Major shareholders (%): The Ruskin Library Foundation (14.3), Mikimoto Pearl        Museum (12.5), Employees’ S/Holding Assn (11.9), Toyohiko Mikimoto (7.5)

           

No. of shareholders: 159

 

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

 

 

OPERATION

 

Activities: Manufactures (including pearl culturing), wholesales, retails pearls, pearl-bedded jewelry products (--50%), diamonds, other gem stones, their clad-bedded jewelry products, metal ingots, others (--25%), watches, gift items        (pearl & other jewelry accessories), others (--25%). 

(Breakdown % is all about).

 

Operates: Direct-run stores: 11 domestic, 16 overseas; 80 in-shops (department     stores, hotels) & franchisees nationwide; Net Shop (online).

 

Clients: [Department stores, hotels, consumers] Takashimaya, Isetan, Mitsukoshi, Tenmaya, Mikimoto Jewelry Mfg (subsidiary), Hankyu Department Stores, Imperial Hotel, other. 

 

Exports to USA, London, Paris, Korea, Thailand, Hong Kong, other (including direct-run      stores)

No. of accounts: 5,000

Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Mikimoto Jewelry Mfg Co (subsidiary), Alfa Create, K Otsuki Pearl, Ehime-Pref Fishery Coop Federation, Mie-Pref Fishery Coop Federation, Kimura Pearl, other. Imports from Overseas Diamond NV, etc.

 

 

Payment record

 

Regular

 

 

Location

 

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

 

 

Bank References

 

MUFG (H/O)

Mizuho Bank (Ginza)

Relations: Satisfactory

 

 

FINANCES (In Million Yen)

 

       Terms Ending:

31/08/2007

31/08/2006

31/08/2005

31/08/2004

Annual Sales

　

31,300

30,465

30,038

30,424

Recur. Profit

　

1,400

1,390

963

966

Net Profit

　

225

223

203

147

Total Assets

　

　

41,875

40,062

41,597

Current Assets

　

　

22,958

23,174

25,031

Current Liabs

　

　

19,256

16,496

17,563

Net Worth

　

　

9,830

9,575

9,548

Capital, Paid-Up

　

　

500

500

500

Div.P.Share(¥)

　

　

　

　

　

<Analytical Data>

(%)

(%)

(%)

(%)

       S.Growth Rate

2.74

1.42

-1.27

-3.14

       Current Ratio

 

..

119.23

140.48

142.52

       N.Worth Ratio

..

23.47

23.90

22.95

       R.Profit/Sales

 

4.47

4.56

3.21

3.18

       N.Profit/Sales

0.72

0.73

0.68

0.48

       Return On Equity

..

2.27

2.12

1.54

 

Notes: Financials are disclosed in digested form for the 31/08/2006 fiscal term.

 

Estimated figures for the 31/08/2007 fiscal term.

 

 

 

 

 

 

 

 

SUPPLEMENT

 

Financials up until the 31/08/2005 fiscal term.

 

FINANCES: (Non-Consolidated in million yen)

 

　

　

Terms Ending:

31/08/2005

31/08/2004

INCOME STATEMENT

 

 

 

  Annual Sales

　

30,038

30,424

 

  Cost of Sales

28,852

29,256

 

      GROSS PROFIT

1,185

1,168

 

  Selling & Adm Costs

　

　

 

      OPERATING PROFIT

1,185

1,168

 

  Non-Operating P/L

-222

-202

 

      RECURRING PROFIT

963

966

　

      NET PROFIT

203

147

BALANCE SHEET

 

 

 

 

  Cash

　

1,144

3,262

 

  Receivables

 

3,137

2,860

 

  Inventory

 

　

　

 

  Securities, Marketable

　

　

 

  Other Current Assets

18,893

18,909

 

      TOTAL CURRENT ASSETS

23,174

25,031

 

  Property & Equipment

16,887

16,564

 

  Intangibles

 

276

276

 

  Investments, Other Fixed Assets

(275)

(274)

 

      TOTAL ASSETS

40,062

41,597

 

  Payables

 

2,843

2,850

 

  Short-Term Bank Loans

12,164

11,238

 

　

 

　

　

 

  Other Current Liabs

1,489

3,473

 

      TOTAL CURRENT LIABS

16,496

17,563

 

  Debentures

 

　

　

 

  Long-Term Bank Loans

8,396

9,166

 

  Reserve for Retirement Allw

　

　

 

  Other Debts

　

5,594

5,319

 

      TOTAL LIABILITIES

30,486

32,048

 

      MINORITY INTERESTS

 

 

 

Common stock

500

500

 

Additional paid-in capital

165

165

 

Retained earnings

5,125

5,125

 

Evaluation p/l on investments/securities

　

　

 

Others

 

439

349

 

Treasury stock, at cost

3,346

3,409

 

      TOTAL S/HOLDERS` EQUITY

9,575

9,548

　

      TOTAL EQUITIES

40,062

41,597

ANALYTICAL RATIOS            Terms ending:

31/08/2005

31/08/2004

 

 

Net Worth (S/Holders' Equity)

9,575

9,548

 

 

Current Ratio (%)

140.48

142.52

 

 

Net Worth Ratio (%)

23.90

22.95

 

 

Recurring Profit Ratio (%)

3.21

3.18

 

 

Net Profit Ratio (%)

0.68

0.48

 

 

Return On Equity (%)

2.12

1.54

 

 

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.

 

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