MIRA
INFORM REPORT
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Report No. : |
337659 |
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Report Date : |
21.08.2015 |
IDENTIFICATION DETAILS
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Name : |
UNIQLO CO LTD |
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Registered Office : |
717-1 Sayama
Yamaguchi Yamaguchi-Pref 754-0894 |
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Country : |
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Financials (as on) : |
31.08.2014 |
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Date of Incorporation : |
September, 1974 |
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Com. Reg. No.: |
2500-01-001451 |
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Legal Form : |
Limited Company |
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Line of Business : |
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%). |
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No. of Employees : |
3,450 |
RATING & COMMENTS
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MIRA’s Rating : |
A |
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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 |
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Maximum Credit Limit : |
USD 50,000,000 |
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|
|
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Status : |
Good |
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Payment Behaviour : |
Regular |
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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, 2015
|
Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
|
Japan |
A1 |
A1 |
|
Risk Category |
ECGC Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
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Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
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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 an 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. Scarce in many natural resources,
Japan has long been dependent on imported raw materials. Since the complete
shutdown of Japan’s nuclear reactors after the earthquake and tsunami disaster
in 2011, Japan's industrial sector has become even more dependent than it was
previously on imported fossil 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
impressive - 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 aftereffects 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 four times
since 2008. 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 of that year disrupted
manufacturing. The economy has largely recovered in the four years since the
disaster, although reconstruction in the affected Tohoku region has lagged, in
part due to a shortage of labor in the construction sector. Japan enjoyed a
sharp uptick in growth in 2013 on the basis of Prime
Minister Shinzo Abe’s “Three Arrows” economic
revitalization agenda - dubbed “Abenomics” - of
monetary easing, “flexible” fiscal policy, and structural reform. Abe’s
government has replaced the preceding administration’s plan to phase out nuclear
power with a new policy of seeking to restart nuclear power plants that meet
strict new safety standards, and emphasizing nuclear energy’s importance as a
base-load electricity source. Japan joined the Trans-Pacific Partnership (TPP)
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 2014 stood as the fourth-largest economy in the
world after first-place China, which surpassed Japan in 2001, and third-place
India, which edged out Japan in 2012. While seeking to stimulate and reform the
economy, the government must also devise a strategy for reining in Japan's huge
government debt, which amounts to more than 230% of GDP. To help raise
government revenue, Japan adopted legislation in 2012 to gradually raise the
consumption tax rate to 10% by 2015, beginning with a hike from 5% to 8%
implemented in April 2014. That increase had a contractionary
effect on GDP, however, so PM Abe in late 2014 decided to postpone the final
phase of the increase until April 2017 to give the economy more time to
recover. Led by the Bank of Japan’s aggressive monetary easing, Japan is making
progress in ending deflation, but demographics - low birthrate and an aging,
shrinking population - pose major long-term challenges for the economy.
|
Source
: CIA |
Company Name and address
UNIQLO CO LTD
717-1 SAYAMA YAMAGUCHI YAMAGUCHI-PREF
754-0894, JAPAN
TEL: 083-988-0333 FAX: 083-988-0341
EXECUTIVE SUMMARY
YEAR OF ESTABLISHMENT : SEPTEMBER 1974
REGISTRATION NO. :
2500-01-001451 (YAMAGUCHI-YAMAGUCHI)
STAFF STRENGTH : 3,450
PAID-UP CAPITAL : JPY 1,000,000,000
BUSINESS
LINE : RETAIL OF APPAREL, CASUAL WEAR
TURNOVER :
JPY 683,314,000,000 (AS OF
EQUITIES :
JPY 202,546,000,000 (AS OF
PAYMENT :
REGULAR
MAXIMUM CREDIT LIMIT : UP TO USD 50,000,000
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : FAIR
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : JPY 124.043 = USD 1
Adopted
abbreviations:
ANS - amount not
stated
NS - not stated
SC - subject
company (the company inquired by you)
NA - not available
M - million
INR- Indian Rupee
REGD
Name: KK Uniqlo
Authorized: 80,000 shares
Issued:
20,000 shares
Sum:
Yen
1,000 million
Locations
Main Office: 717-1 Sayama Yamaguchi Yamaguchi-Pref 754-0894 JAPAN
Tokyo Head Quarter Address:
Midtown Tower
Business area is in Yamaguchi.
Office premises at the caption address are owned and maintained
satisfactorily.
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, SC 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.
Website: http://www.uniqlo.com the design is professional and the content is well organized.
At present it is in English, Chinese, Japanese and etc.
E-Mail: N/A
The sources consulted
record no detrimental legal court information.
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 JPY
10,273 million, sales JPY 1,143,003 million, operating profit JPY 132,920
million, recurring profit JPY 148,979 million, net profit JPY 90,377 million,
total assets JPY 885,800 million, net worth JPY 579,591 million, employees
18,854, president Tadashi Yanai, concurrently.
Nothing detrimental is known as to the
commercial morality of executives.
OFFICERS
Tadashi Yanai President Takahiro Wakabayashi Director
Naoki Oodate Director Shuichi Nakashima Director
Nobuo Domae Director
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
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. Measuring on 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, this 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. 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 poses other major long-term challenges for the
economy.
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
Financials (as on): 31.08.2014
Yen Amount: In
million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen
PAYMENTS REGULAR CAPITAL Yen
TREND UP WORTH Yen
FINANCES
(In Million JPY)
|
Terms Ending: |
|
|
|
|
|
|
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 |
|
|
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
FINANCIAL INFORMATION
The sales volume for Aug/2013 fiscal term amounted to
JPY 683,314 million, a 10% up from JPY 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 JPY 102,021 million and the net
profit at JPY 62,466 million, respectively, compared with JPY 102,433 million
recurring profit and JPY 60,598 million net profit, respectively, a year ago.
For the current term ending Aug 2014 the recurring profit is projected
at JPY 110,000 million and the net profit at JPY 67,000 million, respectively,
on a 10% rise in turnover, to JPY 751,000 million. 10 new stores opened during the term. Overseas sales will contribute to the growth,
thanks to the weaker yen.
Banker Name:
SMBC (H/O)
MUFG (H/O)
Relations: Satisfactory
SC is a Chain store operator of in-house brand casual wear, owned by
fast retailing co ltd.
Financial situation is considered fair to good and responsible for
ordinary business engagements.
SC is considered
large-sized in its line with a long development history. Taking into
consideration of SC’s general performance, we recommended a credit line up to
USD 50,000,000 is acceptable.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.65.24 |
|
|
1 |
Rs.102.21 |
|
Euro |
1 |
Rs.72.57 |
INFORMATION DETAILS
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Analysis Done by
: |
DIV |
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Report Prepared
by : |
NIT |
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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>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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.