MIRA INFORM REPORT

 

 

Report Date :

08.06.2013

 

IDENTIFICATION DETAILS

 

Name :

UNIQLO CO LTD

 

 

Registered Office :

717-1 Sayama Yamaguchi Yamaguchi-Pref 754-0894

 

 

Country :

Japan

 

 

Financials (as on) :

31.08.2012

 

 

Date of Incorporation :

September  1974

 

 

Com. Reg. No.:

2500-01-001451 (Yamaguchi-Yamaguchi)

 

 

Legal Form :

Limited Company (Kabushiki Kaisha)

 

 

Line of Business :

Retail of apparel, casual wear for men/women/kids/babies

 

 

No. of Employees :

3,485

 

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 16,779.1 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 – March 31st, 2013

 

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

Japan

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 


 

JAPAN - ECONOMIC OVERVIEW

 

In the years following World War II, government-industry cooperation, a strong work ethic, mastery of high technology, and a comparatively small defense allocation (1% of GDP) helped Japan develop a technologically advanced economy. Two notable characteristics of the post-war economy were the close interlocking structures of manufacturers, suppliers, and distributors, known as keiretsu, and the guarantee of lifetime employment for a substantial portion of the urban labor force. Both features are now eroding under the dual pressures of global competition and domestic demographic change. Japan's industrial sector is heavily dependent on imported raw materials and fuels. A small agricultural sector is highly subsidized and protected, with crop yields among the highest in the world. While self-sufficient in rice production, Japan imports about 60% of its food on a caloric basis. For three decades, overall real economic growth had been spectacular - a 10% average in the 1960s, a 5% average in the 1970s, and a 4% average in the 1980s. Growth slowed markedly in the 1990s, averaging just 1.7%, largely because of the after effects of inefficient investment and an asset price bubble in the late 1980s that required a protracted period of time for firms to reduce excess debt, capital, and labor. Modest economic growth continued after 2000, but the economy has fallen into recession three times since 2008. A sharp downturn in business investment and global demand for Japan's exports in late 2008 pushed Japan into recession. Government stimulus spending helped the economy recover in late 2009 and 2010, but the economy contracted again in 2011 as the massive 9.0 magnitude earthquake and the ensuing tsunami in March disrupted manufacturing. The economy has largely recovered in the two years since the disaster, but reconstruction in the Tohoku region has been uneven. Newly-elected Prime Minister Shinzo ABE has declared the economy his government's top priority; he has pledged to reconsider his predecessor's plan to permanently close nuclear power plants and is pursuing an economic revitalization agenda of fiscal stimulus and regulatory reform and has said he will press the Bank of Japan to loosen monetary policy. Measured on a purchasing power parity (PPP) basis that adjusts for price differences, Japan in 2012 stood as the fourth-largest economy in the world after second-place China, which surpassed Japan in 2001, and third-place India, which edged out Japan in 2012. The new government will continue a longstanding debate on restructuring the economy and reining in Japan's huge government debt, which exceeds 200% of GDP. Persistent deflation, reliance on exports to drive growth, and an aging and shrinking population are other major long-term challenges for the economy.

Source : CIA

 


Company name and address 

 

UNIQLO CO LTD

REGD NAME:   KK Uniqlo

MAIN OFFICE:  717-1 Sayama Yamaguchi Yamaguchi-Pref 754-0894 JAPAN

Tel: 083-988-0333      Fax: 083-988-0341

 

URL:                 http://www.uniqlo.com

E-Mail address: (thru the URL)

 

 

ACTIVITIES

 

Retail of apparel, casual wear for men/women/kids/babies

 

BRANCHES

 

Tokyo

 

STORES

 

845 stores nationwide (824 direct-run, 21 franchisees)

 

OVERSEAS

 

(Uniqlo International operation) 292 stores in China, Hong Kong, Taiwan, Korea,

Thailand, Philippines, USA, France, Singapore, Russia, Malaysia, other

 

 

OFFICERS

 

TADASHI YANAI, PRES                        Takahiro Wakabayashi, dir

Naoki Oodate, dir                                  Shuichi Nakashima, dir

Nobuo Domae, dir        

           

Yen Amount:     In million Yen, unless otherwise stated

 


SUMMARY

 

FINANCES        FAIR                 A/SALES          Yen 620,063 M

PAYMENTSREGULAR   CAPITAL           Yen 1,000 M

TREND UP                    WORTH            Yen 107,310 M

STARTED         1974                 EMPLOYES      3,485

 

 

COMMENT

 

CHAIN STORE OPERATOR OF IN-HOUSE BRAND CASUAL WEAR,

OWNED BY FAST RETAILING CO LTD.

FINANCIAL SITUATION CONSIDERED FAIR TO GOOD AND RESPONSIBLE FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

MAX CREDIT LIMIT: YEN 16,779.1 MILLION, 30 DAYS NORMAL TERMS

 

 

HIGHLIGHTS

           

            The subject company was established by Tadashi Yanai, originally as Sunlord KK, and in Feb 1998 renamed as captioned.  This is the nation’s largest apparel retailer with a 5.8% share of the Yen 10.7 trillion Japanese apparel market, operating 845 stores nationwide. Retails in-house brand casual clothing, named UNIQLO, such as jackets, shirts & slacks.  UNIQLO is a combined word of unique clothing warehouse.  The holding company, Fast Retailing Co Ltd (See REGISTRATION), operates 292 stores overseas in China, Taiwan, Thailand, other S/E Asian countries, USA, France, Russia, other.  In Mar 2012, opened the global largest flag-store, the UNIQLO Ginza Store, in Ginza, Tokyo.  The firm began aggressively increasing its average store size by closing smaller outlets and opening more large-format stores.  The focus will be on cultivating new consumers by opening large-format stores in Tokyo, Osaka, Nagoya and Fukuoka.  In summer 2013 the Group will open a store jointly with Mitsubishi Corp for the first time in Indonesia, aiming to take in the middle class. 

 

 

FINANCIAL INFORMATION

           

            The sales volume for Aug/2012 fiscal term amounted to Yen 620,063 million, a 3% up from Yen 600,148 million in the previous term.  In the first half, strong sales of HEATTECH functional innerwear and other core winter items boosted income.  However, in the second half, unseasonably cool weather dampened same-store sales, and large discounts on summer inventory weighed on profits.  By closing down small stores, with scrap & build, the net increase of stores was 2 stores during the term.  The recurring profit was posted at Yen 102,433 million and the net profit at Yen 80,598 million, respectively, compared with Yen 99,116 million recurring profit and Yen 52,765 million net profit, respectively, a year ago.

 

            For the current term ending Aug 2013 the recurring profit is projected at Yen 110,000 million and the net profit at Yen 86,000 million, respectively, on a 9% rise in turnover, to Yen 673,000 million.  New store increase is planned at 154, mainly in Asia (113 in the preceding term).  Existing store sales will edge up, thanks to functional products in winter season.  Rise in cotton material price in the preceding term will calm down.  Sales of winter items in Asia will be more favorable than expected.  Net profit will hit an all-time high. 

 

The financial situation is considered FAIR to GOOD and responsible for ORDINARY business engagements.  Max credit limit is estimated at Yen 16,779.1 million, on 30 days normal terms.

 

 

REGISTRATION

 

Date Registered:       Sept 1974

Regd No.:                 2500-01-001451 (Yamaguchi-Yamaguchi)

Legal Status:       Limited Company (Kabushiki Kaisha)

Authorized:         80,000 shares

Issued:                20,000 shares

Sum:                   Yen 1,000 million

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

 

*. Holding company with specialty retailer UNIQLO the Group’s mainstay operation, and the world’s 4th-ranked SPA company (Specialty store retailer of Private label Apparel), founded 1963, listed Tokyo S/E, capital Yen 10,273 million, sales Yen 928,669 million, operating profit Yen 126,450 million, recurring profit Yen 125,212 million, net profit Yen 71,654 million, total assets Yen 595,102 million, net worth Yen 394,892 million, employees 18,854, pres Tadashi Yanai, concurrently.

Sales breakdown by categories: 845 Domestic UNIQLO stores (67%), 292 Uniqlo International stores (16%), International brands (16%); overseas sales ratio (23%)

Consolidated Financials are attached (See SUPPLEMENT)

 

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

 

 

OPERATION

 

Activities: Operates chain stores nationwide (845 stores), retailing casual wear, such as jackets, shirts & slacks for men/women/kids/babies, other (--100%)

 

Clients: Consumers

No. of accounts: Unavailable

Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] Mitsubishi Corp, Sojitz Corp, Marubeni Corp, Toray International, Kuraray Ind, other

 

Payment record: Regular

 

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

 

Bank References:

SMBC (H/O)

MUFG (H/O)

Relations: Satisfactory

 

FINANCES

 (In Million Yen)

 

       Terms Ending:

31/08/2013

31/08/2012

31/08/2011

31/08/2010

Annual Sales

 

673,000

620,063

600,148

607,922

Recur. Profit

 

110,000

102,433

99,116

 

Net Profit

 

86,000

80,598

52,765

73,797

Total Assets

 

 

251,075

235,981

239,218

Current Assets

 

 

177,807

162,574

 

Current Liabs

 

 

135,944

151,740

 

Net Worth

 

 

107,310

76,202

74,288

Capital, Paid-Up

 

 

1,000

1,000

1,000

Div.P.Share(¥)

 

 

0.00

0.00

0.00

<Analytical Data>

(%)

(%)

(%)

(%)

    S.Growth Rate

8.54

3.32

-1.28

12.96

    Current Ratio

 

..

130.79

107.14

..

    N.Worth Ratio

..

42.74

32.29

31.05

    R.Profit/Sales

 

16.34

16.52

16.52

..

    N.Profit/Sales

12.78

13.00

8.79

12.14

    Return On Equity

..

75.11

69.24

99.34

Notes: Forecast (or estimated) figures for the 31/08/2013 fiscal term.

 

 

SUPPLEMENT

Consolidated Financials of the parent, Fast Retailing Co Ltd

FINANCES: (Consolidated in million yen)

 

 

 

Terms Ending:

31/08/2012

31/08/2011

INCOME STATEMENT

 

 

 

  Annual Sales

 

928,669

820,349

 

  Cost of Sales

453,202

394,581

 

      GROSS PROFIT

475,466

425,767

 

  Selling & Adm Costs

349,016

309,401

 

      OPERATING PROFIT

126,450

116,365

 

  Non-Operating P/L

-1,238

53,725

 

      RECURRING PROFIT

125,212

170,090

 

      NET PROFIT

71,654

54,354

BALANCE SHEET

 

 

 

 

  Cash

 

132,238

64,386

 

  Receivables

 

19,920

17,796

 

  Inventory

 

98,963

92,750

 

  Securities, Marketable

133,788

137,729

 

  Other Current Assets

39,607

57,310

 

      TOTAL CURRENT ASSETS

424,516

369,971

 

  Property & Equipment

69,222

58,016

 

  Intangibles

 

38,216

40,751

 

  Investments, Other Fixed Assets

63,148

65,039

 

      TOTAL ASSETS

595,102

533,777

 

  Payables

 

71,142

59,395

 

  Short-Term Bank Loans

2,505

3,978

 

 

 

 

 

 

  Other Current Liabs

99,731

119,473

 

      TOTAL CURRENT LIABS

173,378

182,846

 

  Debentures

 

 

 

 

  Long-Term Bank Loans

9,129

13,688

 

  Reserve for Retirement Allw

 

 

 

  Other Debts

 

17,703

17,332

 

      TOTAL LIABILITIES

200,210

213,866

 

      MINORITY INTERESTS

 

 

 

  Capital, Paid-Up

10,273

10,273

 

  Surplus

 

384,619

309,638

 

      SHAREHOLDERS' EQUITY

394,892

319,911

 

      TOTAL EQUITIES

595,102

533,777

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

31/08/2012

31/08/2011

 

Cash Flows from Operating Activities

 

127,643

57,158

 

Cash Flows from Investment Activities

-35,313

-26,643

 

Cash Flows from Financing Activities

-29,056

-26,156

 

Cash, Bank Deposits at the Term End

 

266,020

202,104

ANALYTICAL RATIOS            Terms ending:

31/08/2012

31/08/2011

 

 

Net Worth (S/Holders' Equity)

394,892

319,911

 

 

Current Ratio (%)

244.85

202.34

 

 

Net Worth Ratio (%)

66.36

59.93

 

 

Recurring Profit Ratio (%)

13.48

20.73

 

 

Net Profit Ratio (%)

7.72

6.63

 

 

Return On Equity (%)

18.15

16.99


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.56.74

UK Pound

1

Rs.88.53

Euro

1

Rs.75.20

 

 

INFORMATION DETAILS

 

Report Prepared by :

PRL

 

 

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.