MIRA INFORM REPORT

 

 

Report No. :

320955

Report Date :

04.05.2015

 

IDENTIFICATION DETAILS

 

Name :

ABC-MART INC

 

 

Registered Office :

Shibuya Mark City West 19F, 1-12-1 Dogenzaka Shibuyaku Tokyo 150-0043

 

 

Country :

Japan

 

 

Financials (as on) :

28.02.2015

 

 

Date of Incorporation :

June 1985

 

 

Com. Reg. No.:

0110-01-033515

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Operates shoe chain stores, 785 stores nationwide, retailing: sports shoes (47%), leather casual shoes (21), women’s shoes (12%), business shoes (6%), kid’s shoes (5%), sandals (3%), others (6%)

 

 

No. of Employees :

4,316

 

 

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

 

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 – December 31, 2014

 

Country Name

Previous Rating

(30.09.2014)

Current Rating

(31.12.2014)

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. Since the complete shutdown of Japan’s nuclear reactors after the earthquake and tsunami disaster in 2011, Japan's industrial sector has become 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 four 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. A sales tax increase caused the economy to contract during the 2nd and 3rd quarters of 2014. The economy has largely recovered in the three years since the disaster, but reconstruction in the Tohoku region has been uneven due to labor shortages. 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 2014 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 government will continue a longstanding debate on restructuring the economy and reining in Japan's huge government debt, which amounts to more than 240% 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 2015, although the government in 2014 decided to postpone the final phase of the increase until 2017 to give the economy time to recover from the 2014 increase. 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 

 

ABC-MART INC

 

REGD NAME:   KK ABC

 

 

address

 

MAIN OFFICE:  Shibuya Mark City West 19F, 1-12-1 Dogenzaka Shibuyaku Tokyo 150-0043

                                    JAPAN

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

 

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

E-Mail address: (thru the URL)

 

 

ACTIVITIES

 

Shoe store operator

 

 

STORES

 

785 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 213,584 M

PAYMENTSREGULAR               CAPITAL           Yen 3,482 M

TREND UP                                WORTH            Yen 155,535 M

STARTED         1985                             EMPLOYES      4,316

 

 

COMMENT

 

SHOE STORE CHAIN OPERATOR 

FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.

 

 

                     Unit: In Million Yen

Forecast figures for the 28/02/2016 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, operating 785 retail stores nationwide.  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/2015 fiscal term amounted to Yen 213,584 million, a 13.6% up from Yen 188,045 million in the previous term.  The recurring profit was posted at Yen 40,405 million and the net profit at Yen 24,373 million, respectively, compared with Yen 34,814 million recurring profit and Yen 19,989 million net profit, respectively, a year ago. 

           

For the current term ending Feb 2016 the recurring profit is projected at Yen 41,400 million and the net profit at Yen 25,810 million, on a 7.5% rise in turnover, to Yen 229,500 million. 

 

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 (28.3), EM Planning (27.3), Michiko Miki (12.5), Master Trust Bank of Japan T (1.9), Japan Trustee Services (1.7), Northern Trust (AVFC) American (1.1), JP Morgan Chase Bank 385047 (0.9), BONY Tax Treaty Jasdec Omnibus 2 (0.9); foreign owners (21.8)

 

No. of shareholders: 2,805

 

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; Kiichiro Hattori, 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, 785 stores nationwide, retailing: sports shoes (47%), leather casual shoes (21), women’s shoes (12%), business shoes (6%), 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 leased and maintained satisfactorily.

 

Bank References:

                        Mizuho Bank (Shibuya)

                        MUFG (Shibuya-Meijidori)

                        Relations: Satisfactory

FINANCES

(In Million Yen)

FINANCES: (Consolidated in million yen)

　

　

　

Terms Ending:

28/02/2015

28/02/2014

INCOME STATEMENT

　

　

  Annual Sales

　

213,584

188,045

　

  Cost of Sales

98,523

84,317

　

      GROSS PROFIT

115,060

103,727

　

  Selling & Adm Costs

75,408

69,601

　

      OPERATING PROFIT

39,651

34,126

　

  Non-Operating P/L

754

688

　

      RECURRING PROFIT

40,405

34,814

　

      NET PROFIT

24,373

19,989

BALANCE SHEET

　

　

  Cash

　

96,493

78,884

　

  Receivables

7,873

6,463

　

  Inventory

49,367

39,455

　

  Securities, Marketable

　

　

　

  Other Current Assets

6,565

4,740

　

      TOTAL CURRENT ASSETS

160,298

129,542

　

  Property & Equipment

36,115

32,784

　

  Intangibles

12,543

11,649

　

  Investments, Other Fixed Assets

24,705

22,906

　

      TOTAL ASSETS

233,661

196,881

　

  Payables

14,176

8,551

　

  Short-Term Bank Loans

6,355

3,278

　

　

　

　

　

  Other Current Liabs

20,539

15,533

　

      TOTAL CURRENT LIABS

41,070

27,362

　

  Debentures

　

　

　

  Long-Term Bank Loans

500

1,500

　

  Reserve for Retirement Allw

870

　

　

  Other Debts

　

35,686

36,099

　

      TOTAL LIABILITIES

78,126

64,961

　

      MINORITY INTERESTS

　

　

Common stock

3,482

3,482

　

Additional paid-in capital

7,488

7,488

　

Retained earnings

131,413

112,310

　

Evaluation p/l on investments/securities

14

23

　

Others

13,138

8,616

　

Treasury stock, at cost

0

0

　

      TOTAL S/HOLDERS` EQUITY

155,535

131,919

　

      TOTAL EQUITIES

233,661

196,881

CONSOLIDATED CASH FLOWS

　

　

Terms ending:

28/02/2015

28/02/2014

　

Cash Flows from Operating Activities

　

29,691

22,997

　

Cash Flows from Investment Activities

-9,568

-7,573

　

Cash Flows from Financing Activities

-3,675

-5,916

　

Cash, Bank Deposits at the Term End

　

95,807

78,755

ANALYTICAL RATIOS            Terms ending:

28/02/2015

28/02/2014

　

Net Worth (S/Holders' Equity)

155,535

131,919

　

Current Ratio (%)

390.30

473.44

　

Net Worth Ratio (%)

66.56

67.00

　

Recurring Profit Ratio (%)

18.92

18.51

　

Net Profit Ratio (%)

11.41

10.63

　

　

Return On Equity (%)

15.67

15.15

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.63.58

UK Pound

1

Rs.97.99

Euro

1

Rs.70.53

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

Report Prepared by :

VNT

 

               

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.