MIRA INFORM REPORT

 

 

Report Date :

07.02.2012

 

IDENTIFICATION DETAILS

 

Name :

AEON CO Ltd

 

 

Registered Office :

1-5-1 Nakase Mihamaku Chiba 261-8515

 

 

Country :

Japan

 

 

Financials (as on) :

28.02.2011

 

 

Date of Incorporation :

1926

 

 

Com. Reg. No.:

(Chiba-Mihamaku) 003380

 

 

Legal Form :

Limited Company (Kabushiki Kaisha

 

 

Line of Business :

Operator of GMS (general merchandise stores), SM (supermarkets)

 

 

No. of Employees :

76,061

 

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 89,440.0 Million

Status :

Good

Payment Behaviour :

Regular

Litigation :

Clear

 

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 – September 30, 2011

 

Country Name

Previous Rating

(30.06.2011)

Current Rating

(30.09.2011)

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

 

AEON CO Ltd

REGD NAME:    Aeon KK

 

 

MAIN OFFICE

 

1-5-1 Nakase Mihamaku Chiba 261-8515 JAPAN

Tel: 043-212-6000     -

 

URL:                 http://www.aeon.info

E-Mail address: (thru the URL)

 

 

ACTIVITIES  

 

Operator of GMS (general merchandise stores), SM (supermarkets)

 

 

STORES

           

GMS 538, SM 1,282 of 155 subsidiaries

 

 

OVERSEAS   

 

101 stores in China & Ocean countries

 

 

CHIEF EXEC

 

MOTOYA OKADA, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 

 

SUMMARY

 

FINANCES                    FAIR                 　A/SALES       Yen 5,096,569 M

PAYMENTS                  REGULAR         　CAPITAL        Yen 199054 M

TREND             STEADY           　WORTH         Yen 1,219,236 M

STARTED                     1926                 　EMPLOYES   76,061

 

COMMENT    

 

OPERATOR OF GMS & MS 

FINANCIAL SITUATION IS COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

MAX CREDIT LIMIT: YEN 89,440.0 MILLION, 30 DAYS NORMAL TERMS

 

                        Forecast figures for the 29/02/2012 fiscal term.

 

 

HIGHLIGHTS

 

This is the top-ranked operator of general merchandise stores (GMS) and supermarkets (SM).  Core firm of large-scale Aeon Group, including Mycal, Maxvalue (supermarket), Ministop (convenience store), Sunday (home center), etc, of 155 consolidated subsidiaries.  Has strength in management of shopping centers (SC) in suburban areas.  Shifted to holding company system in 2008.  Strengthening business in China and other Asian nations, now operating a total 101 stores.  Acquired Marunaka, No.1 supermarket in Chugoku & Shikoku areas, in November 2011, which will help prop up sales of perishables in the neighboring GMSs.  The GMS subsidiary has separated small supermarket stores to put them on an independent accounting system. 

 

 

FINANCIAL INFORMATION

 

The sales volume for Feb/2011 fiscal term amounted to Yen 5,096,569 million, a 0.8% up from Yen 5,054,394 million in the previous term.  Opened 8 GMS and 7 SM during the term.  Total stores operating are 535 GMS and 1,282 SM.  Consumer spending, however, continued to reflect a murky economic outlook marked by a confluence o factors including ongoing deflationary climate and sluggish employment situation in Japan, a persistently strong Yen, resource price inflation, and the financial crisis in Europe.  The recurring profit was posted at Yen 182,080 million and the net profit at Yen 59,688 million, respectively, compared with Yen 130198 million recurring profit and Yen 31,123 million net profit, respectively, a year ago. 

 

(Mar/Nov/2011 results): Sales 3,748,296 million (up 0.4%), operating profit Yen 101,818 million (up 9.1%), recurring profit Yen 114,560 million (up 13.3%), net profit Yen 36,536 million (down 25.6%).  (% compared with the corresponding period a year ago).

           

For the current term ending Feb 2012 the recurring profit is projected at Yen 210,000 million and the net profit at Yen 68,00 million, on a 1.4% rise in turnover, to Yen 5,170,000 million.  The firm plans to open 10 GMS, compared with 12 in the preceding term.  The closures will decrease from the preceding term’s 17 stores.  Profit will rise on the recovery in existing store sales.  Extraordinary loss on asset retirement obligations will emerge.   

 

The financial situation is considered FAIR and good for ORDINARY business engagements.  Max credit limit is estimated at Yen 89,440.0 million, on 30 days normal terms.

 

 

REGISTRATION

           

Date Registered           : Sept 1926

Regd No.                      : (Chiba-Mihamaku) 003380

Legal Status                : Limited Company (Kabushiki Kaisha

Authorized                   : 2,400 million shares

Issued                          : 800,446,214 shares

Sum                             : Yen 199,054 million

 

Major shareholders (%): Japan Trustee Services T (5.3), Mitsubishi Corp (5.0), Company’s Treasury Stock (4.3), Master Trust Bank of Japan T (3.7), Mizuho Corporate Bank (2.9), Aeon Environment Foundation (2.6), Okada Bunka Zaidan (2.), Norin Chukin Bank (2.2), Employees’ S/Holding Assn (1.7), SSBT OD05 Omnibus Acct Treaty (1.5); foreign owners (15.8)

 

No. of shareholders: 286,607

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

 

Managements: Motoya Okada, pres; Miki Mori, v pres; Masaaki Toyoshima, s/mgn dir; J Black, s/mgn dir; Shohei Murai, s/mgn dir; Hiroshi Yokoo, s/mgn dir; Kunio Sakano, s/mgn dir; Hiroshi Kotani, dir; Nagahisa Oyama, dir; Haruyoshi Tsuji, dir

 

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

 

Related companies: Aeon Retail, Aeon Mall, Aeon Credit Service, other.

 

 

OPERATION

           

Activities: Operator of general merchandise stores (GMS) (538 stores), supermarkets & convenience stores (SM) (1,282 stores), totaling 1,282 stores domestically, 101 GMS & SM stores in China and other Asian nations: Retail (80%), specialty stores (10%), real estate development (2%), service, other (7%).

Overseas Sales Ratio (8.3%): North America 2.6%, China, Asia, other (5.7%)

           

Clients: [Wholesalers] Aeon Retail, Aeon Hokkaido, Aeon Kyushu, Maxvalue Nishi-Nippon, Maxvalue Hokkaido, Maxvalue Tohoku, Ministop, Sunday, other

No. of accounts: 1,282

Domestic areas of activities: Nationwide

           

Payment record: Regular

 

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

 

Bank References:

Mizuho Corporate Bank (Uchisaiwaicho)

Norin Chukin Bank (H/O)

Relations: Satisfactory

 

 

FINANCES

 

(In Million Yen)

FINANCES: (Consolidated in million yen)

 

　

　

Terms Ending:

28/02/2011

28/02/2010

INCOME STATEMENT

 

 

 

  Annual Sales

　

5,096,569

5,054,394

 

  Cost of Sales

3,322,762

3,269,190

 

      GROSS PROFIT

1,773,807

1,785,203

 

  Selling & Adm Costs

1,601,446

1,655,010

 

      OPERATING PROFIT

172,360

130,193

 

  Non-Operating P/L

9,720

5

 

      RECURRING PROFIT

182,080

130,198

　

      NET PROFIT

59,688

31,123

BALANCE SHEET

 

 

 

 

  Cash

　

320,212

294,427

 

  Receivables

 

416,548

323,779

 

  Inventory

 

308,951

333,624

 

  Securities, Marketable

4,509

3,372

 

  Other Current Assets

459,242

577,883

 

      TOTAL CURRENT ASSETS

1,509,462

1,533,085

 

  Property & Equipment

1,407,068

1,432,648

 

  Intangibles

 

117,365

119,816

 

  Investments, Other Fixed Assets

740,733

699,739

 

      TOTAL ASSETS

3,774,628

3,785,288

 

  Payables

 

640,114

637,470

 

  Short-Term Bank Loans

52,065

89,180

 

　

 

　

　

 

  Other Current Liabs

726,734

661,400

 

      TOTAL CURRENT LIABS

1,418,913

1,388,050

 

  Debentures

 

315,185

323,180

 

  Long-Term Bank Loans

547,624

616,213

 

  Reserve for Retirement Allw

8,271

13,413

 

  Other Debts

　

265,398

299,997

 

      TOTAL LIABILITIES

2,555,391

2,640,853

 

      MINORITY INTERESTS

 

 

 

Common stock

199,054

199,054

 

Additional paid-in capital

264,963

264,963

 

Retained earnings

496,648

449,950

 

Evaluation p/l on investments/securities

3,401

(718)

 

Others

 

316,628

292,697

 

Treasury stock, at cost

(61,458)

(61,512)

 

      TOTAL S/HOLDERS` EQUITY

1,219,236

1,144,434

　

      TOTAL EQUITIES

3,774,628

3,785,288

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

28/02/2011

28/02/2010

 

Cash Flows from Operating Activities

　

261,132

361,096

 

Cash Flows from Investment Activities

-105,517

-324,573

 

Cash Flows from Financing Activities

-121,847

11,179

　

Cash, Bank Deposits at the Term End

　

306,820

280,521

ANALYTICAL RATIOS            Terms ending:

28/02/2011

28/02/2010

 

 

Net Worth (S/Holders' Equity)

1,219,236

1,144,434

 

 

Current Ratio (%)

106.38

110.45

 

 

Net Worth Ratio (%)

32.30

30.23

 

 

Recurring Profit Ratio (%)

3.57

2.58

 

 

Net Profit Ratio (%)

1.17

0.62

 

 

Return On Equity (%)

4.90

2.72

           

 

           


 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.48.67

UK Pound

1

Rs.76.75

Euro

1

Rs.63.56

 

 

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

--

NB

                                       New Business

 

--

 

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

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