MIRA INFORM REPORT

 

 

Report Date :

21.05.2014

 

IDENTIFICATION DETAILS

 

Name :

UNIQLO CO LTD

 

 

Registered Office :

717-1 Sayama Yamaguchi Yamaguchi-Pref 754-0894

 

 

Country :

Japan

 

 

Financials (as on) :

31.08.2014

 

 

Date of Incorporation :

September 1974

 

 

Com. Reg. No.:

2500-01-001451

 

 

Legal Form :

Limited Company

 

 

Line of Business :

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

 

 

No. of Employees

3,450

 

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

 

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 31, 2014

 

Country Name

Previous Rating

(31.12.2013)

Current Rating

(31.03.2014)

Japan

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low Risk

 

A2

Moderately Low Risk

 

B1

Moderate Risk

 

B2

Moderately  High Risk

C1

High Risk

 

C2

Very High Risk

 

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. Prime Minister Shinzo ABE has declared the economy his government's top priority; he has overturned his predecessor's plan to permanently close nuclear power plants and is pursuing an economic revitalization agenda of fiscal stimulus, monetary easing, and structural reform. Japan joined the Trans Pacific Partnership negotiations in 2013, a pact that would open Japan's economy to increased foreign competition and create new export opportunities for Japanese businesses. Measured on a purchasing power parity (PPP) basis that adjusts for price differences, Japan in 2013 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 is exceeding 230% of GDP. To help raise government revenue and reduce public debt, Japan decided in 2013 to gradually increase the consumption tax to a total of 10% by the year 2015. Japan is making progress on ending deflation due to a weaker yen and higher energy costs, but reliance on exports to drive growth and an aging, shrinking population pose 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

 

                                    *.. The is its Tokyo Headquarters

 

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

 

853 stores nationwide (834 direct-run, 19 franchisees)

 

 

OVERSEAS   

 

(Uniqlo International operation) 561 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 683,314 M

PAYMENTS      REGULAR         CAPITAL           Yen 1,000 M

TREND             UP                    WORTH            Yen 202,546 M

STARTED                     1974                 EMPLOYES      3,450

 

 

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.

                       

                       

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, operating 853 stores nationwide, including franchisees. 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 534 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 opened 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/2013 fiscal term amounted to Yen 683,314 million, a 10% up from Yen 620,063 million in the previous term.  Opened 10 new stores domestically and 10 stores overseas during the term.  The recurring profit was posted at Yen 102,021 million and the net profit at Yen 62,466 million, respectively, compared with Yen 102,433 million recurring profit and Yen 60,598 million net profit, respectively, a year ago.

 

            For the current term ending Aug 2014 the recurring profit is projected at Yen 110,000 million and the net profit at Yen 67,000 million, respectively, on a 10% rise in turnover, to Yen 751,000 million.  10 new stores opening during the term.  Overseas sales will contribute to the growth, thanks to the weaker Yen. 

 

The financial situation is considered FAIR to GOOD and responsible for ORDINARY business engagements. 

 

 

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 1,143,003 million, operating profit Yen 132,920 million, recurring profit Yen 148,979 million, net profit Yen 90,377 million, total assets Yen 885,800 million, net worth Yen 579,591 million, employees 18,854, pres Tadashi Yanai, concurrently.

           

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

 

 

OPERATION

           

Activities: Operates chain stores nationwide (853 stores nationwide & 534 stores overseas), 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:

31/08/2014

31/08/2013

31/08/2012

31/08/2011

Annual Sales

 

751,000

683,314

620,063

600,148

Recur. Profit

 

110,000

102,021

102,433

99,116

Net Profit

 

67,000

62,466

60,598

52,765

Total Assets

 

 

396,396

251,075

235,981

Current Assets

 

 

320,398

177,807

162,574

Current Liabs

 

 

185,821

135,944

151,740

Net Worth

 

 

202,546

107,310

76,202

Capital, Paid-Up

 

 

1,000

1,000

1,000

Div.P.Share(¥)

 

 

0.00

0.00

0.00

<Analytical Data>

(%)

(%)

(%)

(%)

    S.Growth Rate

9.91

10.20

3.32

-1.28

    Current Ratio

 

..

172.42

130.79

107.14

    N.Worth Ratio

..

51.10

42.74

32.29

    R.Profit/Sales

 

14.65

14.93

16.52

16.52

    N.Profit/Sales

8.92

9.14

9.77

8.79

    Return On Equity

..

30.84

56.47

69.24

 

Notes: Forecast (or estimated) figures for the 31/08/2014 fiscal term.


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.58.74

UK Pound

1

Rs.98.77

Euro

1

Rs.80.52

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

PDT

 

               

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.