MIRA INFORM REPORT

 

 

Report Date :

24.05.2014

 

IDENTIFICATION DETAILS

 

Name :

ABC-MART INC

 

 

Registered Office :

1-12-1 Dogenzaka Shibuyaku Tokyo 150-0043

 

 

Country :

Japan

 

 

Financials (as on) :

28.02.2014

 

 

Date of Incorporation :

June 1985

 

 

Com. Reg. No.:

0110-01-033515

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Shoe store operator

 

 

No. of Employees

5,422 (part-timers included)

 

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 :

No complaints

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

 

ABC-MART INC

REGD NAME:    KK ABC

MAIN OFFICE:  1-12-1 Dogenzaka Shibuyaku Tokyo 150-0043 JAPAN

Tel: 03-3476-5650     Fax: 03-3476-5462 

 

*.. The is one of its stores   -

 

URL:                 http://www.abc-mart.com

E-Mail address: (thru the URL)

 

 

ACTIVITIES  

 

Shoe store operator

 

 

STORES  

 

749 stores nationwide

 

 

OVERSEAS   

 

China, Taiwan, Korea, other

 

 

CHIEF EXEC 

 

MINORU NOGUCHI, PRES

 

Yen Amount:     In million Yen, unless otherwise stated

 

 


SUMMARY    

 

FINANCES        FAIR                 A/SALES          Yen 188,045 M

PAYMENTS      REGULAR         CAPITAL           Yen 3,482 M

TREND             UP                    WORTH            Yen 131,919 M

STARTED         1985                 EMPLOYES      5,422 (part-timers included)

 

 

COMMENT    

 

SHOE STORE CHAIN OPERATOR 

FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

                       

Business

Terms Ending

Annual Sales*

R.Profit*

N.Profit*

S.Growth

Net Worth*

   Results:

31/03/2011

127,367

26,710

18,374

(%)

83,428

(Consolidated)

28/02/2012

140,761

28,399

15,676

10.52

92,236

 

28/02/2013

159,418

30,747

17,297

13.25

109,764

 

28/02/2014

188,045

34,814

19,989

17.96

131,919

 

28/02/2015

203,000

36,300

21,500

7.95

..

                        Unit: In Million Yen

Forecast figures for the 28/02/2015 fiscal term.

 

 

HIGHLIGHTS

 

This is an operator of shoe specialty store “ABC-MART”, with men’s shoes as mainline.  Also engaged in wholesale, with HAWKINS and VANS main brands.  Focusing emphasis on expanding sales of sport and women’s shoes.  Has subsidiaries in S Korea and Taiwan.  The firm will develop and launch special products in South Korea, shifting away from heavy dependence on sneakers, which suffers fade-out of stronger demand.  .

 

 

FINANCIAL INFORMATION

 

            The sales volume for Feb/2014 fiscal term amounted to Yen 188,045 million, an 18.0% up from Yen 159,418 million in the previous term.  Newly acquired US subsidiary contributed for the full term.  More than 100 stores newly opened at home and abroad, against 95 in the preceding term.  Sales at existing stores continued expansion, led by national brand sneakers and ladies’ goods.  Operations in South Korea also recovered.  The recurring profit was posted at Yen 34,814 million and the net profit at Yen 19,989 million, respectively, compared with Yen 30,747 million recurring profit and Yen 17,297 million net profit, respectively, a year ago. 

           

            For the current term ending Feb 2015 the recurring profit is projected at Yen 36,300 million and the net profit at Yen 21,500 million, on an 8.0% rise in turnover, to Yen 203,000 million.  Sales at existing stores will continue rising, due to expansion of high-unit-priced items.  Newly opening stores will be 60 in Japan and 30 overseas. 

 

The financial situation is considered FAIR and good for ORDINARY business engagements. 

 

 

REGISTRATION

           

Date Registered: Jun 1985

Regd No.:         0110-01-033515 (Tokyo-Shibuyaku)

Legal Status:      Limited Company (Kabushiki Kaisha

Authorized:       334,500,000 shares

Issued:                75,294,429 shares

Sum:                   Yen 3,482 million

 

Major shareholders (%): Masahiro Miki (16.7), EM Planning (19.1), Michiko Miki (16.7), Japan Trustee Services T (2.0), Northern Trust (AVFC) American (1.9), Master Trust Bank of Japan T (1.5), CBNY-Orbis SICAV (1.3), JP Morgan Chase Bank 385047 (1.1), BONY Tax Treaty Jasdec Omnibus 2 (1.0); foreign owners (21.7)

 

No. of shareholders: 3,003

 

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

 

Managements: Minoru Noguchi, pres; Toru Nakao, s/mgn dir; Yukie Yoshida, mgn dir; Kiyoshi Katsunuma, dir; Jo Kojima, dir; Takashi Kikuchi, dir

 

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

 

Related companies: ABC-MART Korea, Lacrosse, other.

 

 

OPERATION

           

Activities: Operates shoe chain stores, 749 stores nationwide, retailing: sports shoes (46%), leather casual shoes (19%), women’s shoes (14%), business shoes (7%), kid’s shoes (5%), sandals (3%), others (6%)

           

Clients: [Consumers, mfrs, wholesalers] Aeon Retail, Mitsui Fudosan Retail Management,

Murasaki Sports, JCB Co, Mitsubishi UFJ Nicos, other

No. of accounts: 200 (Wholesale Div)

Domestic areas of activities: Nationwide

Suppliers: [Mfrs, wholesalers] Converse Footwear, New Balance Japan, Nike Japan,

Puma Japan, Adidas Japan, Achilles, other

 

Payment record: Regular

 

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

 

Bank References:

Mizuho Bank (Shibuya)

MUFG (Shibuya-Meijidori)

Relations: Satisfactory

 

 

FINANCES

 

(In Million Yen)

FINANCES: (Consolidated in million yen)

 

 

 

Terms Ending:

28/02/2014

28/02/2013

INCOME STATEMENT

 

 

 

  Annual Sales

 

188,045

159,418

 

  Cost of Sales

84,317

68,109

 

      GROSS PROFIT

103,727

91,309

 

  Selling & Adm Costs

69,601

60,933

 

      OPERATING PROFIT

34,126

30,375

 

  Non-Operating P/L

688

372

 

      RECURRING PROFIT

34,814

30,747

 

      NET PROFIT

19,989

17,297

BALANCE SHEET

 

 

 

 

  Cash

 

78,884

68,852

 

  Receivables

 

6,463

5,064

 

  Inventory

 

39,454

33,211

 

  Securities, Marketable

 

 

 

  Other Current Assets

4,741

5,940

 

      TOTAL CURRENT ASSETS

129,542

113,067

 

  Property & Equipment

32,784

31,588

 

  Intangibles

 

11,649

10,793

 

  Investments, Other Fixed Assets

22,906

18,711

 

      TOTAL ASSETS

196,881

174,159

 

  Payables

 

8,551

7,477

 

  Short-Term Bank Loans

3,278

4,135

 

 

 

 

 

 

  Other Current Liabs

15,533

14,348

 

      TOTAL CURRENT LIABS

27,362

25,960

 

  Debentures

 

33,000

33,000

 

  Long-Term Bank Loans

1,500

2,502

 

  Reserve for Retirement Allw

658

798

 

  Other Debts

 

2,441

2,134

 

      TOTAL LIABILITIES

64,961

64,394

 

      MINORITY INTERESTS

 

 

 

Common stock

3,482

3,482

 

Additional paid-in capital

7,488

7,488

 

Retained earnings

112,310

96,311

 

Evaluation p/l on investments/securities

23

13

 

Others

 

9,138

2,992

 

Treasury stock, at cost

(522)

(522)

 

      TOTAL S/HOLDERS` EQUITY

131,919

109,764

 

      TOTAL EQUITIES

196,881

174,159

CONSOLIDATED CASH FLOWS

 

 

 

 

Terms ending:

28/02/2014

28/02/2013

 

Cash Flows from Operating Activities

 

22,997

15,395

 

Cash Flows from Investment Activities

-7,573

-17,203

 

Cash Flows from Financing Activities

-5,916

28,209

 

Cash, Bank Deposits at the Term End

 

78,755

68,772

ANALYTICAL RATIOS            Terms ending:

28/02/2014

28/02/2013

 

 

Net Worth (S/Holders' Equity)

131,919

109,764

 

 

Current Ratio (%)

473.44

435.54

 

 

Net Worth Ratio (%)

67.00

63.03

 

 

Recurring Profit Ratio (%)

18.51

19.29

 

 

Net Profit Ratio (%)

10.63

10.85

 

 

Return On Equity (%)

15.15

15.76

 

           

 

           


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.58.48

UK Pound

1

Rs.98.67

Euro

1

Rs.79.80

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

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.