MIRA INFORM REPORT

 

 

Report Date :

21.02.2011

 

IDENTIFICATION DETAILS

 

Name :

LINK THEORY JAPAN CO LTD

 

 

Registered Office :

Mid Town Tower, 9-7-1 Akasaka Minatoku Tokyo 107-0052

 

 

Country :

Japan

 

 

Financials (as on) :

31.08.2010

 

 

Date of Incorporation :

December 1998

 

 

Com. Reg. No.:

2500-01-002899 (Yamaguchi-Sayama)

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Retail Chain Store Operator of “Theory” brand clothing

 

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 858.2 Million

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Regular

 

 

Litigation :

----

 

 

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

 

 

ECGC Country Risk Classification List – June 30, 2010

 

Country Name

Previous Rating

                   (01.04.2010)                  

Current Rating

(30.06.2010)

Japan

 a1

a1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

company name

 

LINK THEORY JAPAN CO LTD

 

 

REGD NAME

 

KK Link Theory Japan

 

 

MAIN OFFICE

 

Mid Town Tower, 9-7-1 Akasaka Minatoku Tokyo 107-0052 JAPAN

Tel: 03-6865-0212    

 

*.. Registered at: 717-1 Sayama Yamaguchi City

 

URL:                 www.link-theory.com 

E-mail:             info@link-theory.com        

 

 

ACTIVITIES  

 

Retail chain store operator of “Theory” brand clothing

 

 

STORES  

 

235 stores, including franchisees (mainly in-shops in department stores)

 

 

FACTORIES

 

(subcontracted)

 

 

OFFICER(S)

 

CHIKARA SASAKI, PRES          Makoto Hata, rep dir

Tadashi Yanai, dir                      Hidetsugu Onishi, dir

Nobuo Domae, dir

 

Yen Amount:     In million Yen, unless otherwise stated

SUMMARY

 

FINANCES                    FAIR                 A/SALES          Yen 20,350 M

PAYMENTS                  REGULAR         CAPITAL           Yen 10 M

TREND             STEADY           WORTH            Yen 2,083 M

STARTED                     1998                 EMPLOYES      950

 

 

COMMENT    

 

CHAIN SHOP OPERATOR OF “THEORY” BRAND CLOTHING. 

 

FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS

 

MAX CREDIT LIMIT: YEN 858.2 MILLION, 30 DAYS NORMAL TERMS

 

 

HIGHLIGHTS

 

The subject company was established in 1997 in New York City by Andrew Rosen and his business partner, as Theory International Inc.  In 1998, Chikara Sasaki founded Link Theory Japan Co Ltd to introduce Theory brand thru Theory international Inc.  In 2003, the firm was acquired by Fast Retailing Co Ltd (known for “UNIQLO” in Japan) (See REGISTRATION).  This is a chain store operator of “Theory” brand and other designer & licensed brands clothing & clothing accessories, operating 147 retail shops (mainly in-shops in department stores) nationwide.  Goods are retailed online, too.  Goods are also exported to China and S/E Asian countries.  In June & October 2010, merged two sister companies.  The number of stores was increased to 236 (including franchisees) from 147 stores.

 

 

FINANCIAL INFORMATION

 

The sales volume for Aug/2009 fiscal term amounted to Yen 20,350 million, an almost similar amount of Yen 20,359 million in the previous term.  The recurring profit was posted at Yen 1,742 million and the net profit at Yen 859 million, respectively, compared with Yen 975 million a year ago.  .

 

For the term that ended Aug 2010 the recurring profit was projected at Yen 4,300 million and the net profit at Yen 2,000 million, respectively, on a 146% rise in turnover, to Yen 50,000 million.  Merged two sister companies in June & Sept 2010.  The figures have been provided from the parent, Fast Retailing Co Ltd.  Final results are yet to be released.

 

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 858.2 million, on 30 days normal terms.

 

 

REGISTRATION

 

Date Registered:  Dec 1998

Regd No.:           2500-01-002899 (Yamaguchi-Sayama)

Legal Status:   　Limited Company (Kabushiki Kaisha)

Authorized:      　32,000 shares

Issued:             　200 shares

Sum:                　Yen 10 million

Major shareholders (%): Fast Retailing Co Ltd* (100)

 

*.. Chain store operator of “UNIQLO” specializing in in-house brand casual clothing, Yamaguchi City, founded 1963, listed Tokyo S/E, capital Yen 10,273 million, sales Yen 814,811 million, operating profit Yen 132,378 million, recurring profit Yen 123,755 million, net profit Yen 61,681 million, total assets Yen 507,287 million, net worth Yen 287,987 million, employees 11,596, pres Tadashi Yanai

 

Consolidated Financials are attached (See SUPPLEMENTS)

 

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

 

 

OPERATION

 

Activities: Chain store operator of “Theory” brand clothing & accessories, including “HELMUT LANG”, “PLST” brands, operating 236 chain stores nationwide, including franchisees (--100%).

 

Clients: Consumers

 

In-shops in: Sogo & Seibu Co Ltd, Mitsukoshi, Takashimaya, Isetan, Hankyu Hanshin Department Store, Keio Department Store, Kintetsu Department Store, Izutsuya Co Ltd, Izumiya Co Ltd, other

            No. of accounts: Unavailable

            Domestic areas of activities: Nationwide

 

Suppliers: [Mfrs, wholesalers] Daito Woolen Spinning & Weaving Co, Marubeni Corp, Itochu Corp, Mitsubishi Corp, Shikibo Ltd, other

 

Payment record: Regular

 

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

 

Bank References:

Mizuho Bank (Aoyama)

SMBC (Shibuya)

Relations: Satisfactory

 

 

FINANCES

(In Million Yen)

 

       Terms Ending:

31/08/2010

31/08/2009

31/08/2008

31/08/2007

Annual Sales

　

50,000

20,350

20,359

20,567

Recur. Profit

　

4,300

1,742

　

　

Net Profit

　

2,000

859

975

510

Total Assets

　

　

7,079

7,374

7,201

Current Assets

　

　

5,384

5,516

5,480

Current Liabs

　

　

4,807

5,456

4,712

Net Worth

　

　

2,083

1,797

2,355

Capital, Paid-Up

　

　

10

10

10

Div.P.Share(¥)

　

　

2,750.00

0.00

0.00

<Analytical Data>

(%)

(%)

(%)

(%)

    S.Growth Rate

145.70

-0.04

-1.01

-1.78

    Current Ratio

 

..

112.00

101.10

116.30

    N.Worth Ratio

..

29.43

24.37

32.70

    R.Profit/Sales

 

8.60

8.56

..

..

    N.Profit/Sales

4.00

4.22

4.79

2.48

    Return On Equity

..

41.24

54.26

21.66

 

Notes: Forecast (or estimated) figures for the 31/08/2010 fiscal term. 

 

 

SUPPLEMENTS

 

CONSOLIDATED FINANCIALS OF THE PARENT, FAST RETAILING CO LTD

FINANCES: (Consolidated in million yen)

 

　

　

Terms Ending:

31/08/2010

31/08/2009

INCOME STATEMENT

 

 

 

  Annual Sales

　

814,811

685,043

 

  Cost of Sales

393,930

343,315

 

      GROSS PROFIT

420,881

341,528

 

  Selling & Adm Costs

288,503

232,888

 

      OPERATING PROFIT

132,378

108,639

 

  Non-Operating P/L

-8,623

-7,331

 

      RECURRING PROFIT

123,755

101,308

　

      NET PROFIT

61,681

49,797

BALANCE SHEET

 

 

 

 

  Cash

　

62,456

43,876

 

  Receivables

 

15,371

15,213

 

  Inventory

 

74,079

74,580

 

  Securities, Marketable

139,472

125,872

 

  Other Current Assets

54,247

38,630

 

      TOTAL CURRENT ASSETS

345,625

298,171

 

  Property & Equipment

50,144

45,946

 

  Intangibles

 

47,840

55,312

 

  Investments, Other Fixed Assets

63,678

63,856

 

      TOTAL ASSETS

507,287

463,285

 

  Payables

 

54,098

56,930

 

  Short-Term Bank Loans

7,414

11,775

 

　

 

　

　

 

  Other Current Liabs

141,106

106,897

 

      TOTAL CURRENT LIABS

202,618

175,602

 

  Debentures

 

　

　

 

  Long-Term Bank Loans

5,865

17,980

 

  Reserve for Retirement Allw

　

　

 

  Other Debts

　

10,817

8,289

 

      TOTAL LIABILITIES

219,300

201,871

 

      MINORITY INTERESTS

 

 

 

Common stock

10,273

10,273

 

Additional paid-in capital

5,000

5,000

 

Retained earnings

336,739

295,442

 

Evaluation p/l on investments/securities

(13,917)

(9,353)

 

Others

 

(33,848)

(23,695)

 

Treasury stock, at cost

(16,260)

(16,254)

 

      TOTAL S/HOLDERS` EQUITY

287,987

261,413

　

      TOTAL EQUITIES

507,287

463,285

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/08/2010

31/08/2009

 

Cash Flows from Operating Activities

　

88,623

59,214

 

Cash Flows from Investment Activities

-23,389

-34,273

 

Cash Flows from Financing Activities

-28,897

-16,847

　

Cash, Bank Deposits at the Term End

　

200,462

169,574

ANALYTICAL RATIOS            Terms ending:

31/08/2010

31/08/2009

 

 

Net Worth (S/Holders' Equity)

287,987

261,413

 

 

Current Ratio (%)

170.58

169.80

 

 

Net Worth Ratio (%)

56.77

56.43

 

 

Recurring Profit Ratio (%)

15.19

14.79

 

 

Net Profit Ratio (%)

7.57

7.27

 

 

Return On Equity (%)

21.42

19.05

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.45.18

UK Pound

1

Rs.73.04

Euro

1

Rs.61.43

 

 

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

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

 

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%)

 

 

 

 

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.