RYOHIN KEIKAKU CO., LTD. · 2014. 8. 15. · Annual Report 2014 March 1, 2013 – February 28, 2014...
Transcript of RYOHIN KEIKAKU CO., LTD. · 2014. 8. 15. · Annual Report 2014 March 1, 2013 – February 28, 2014...
Annual Report 2014March 1, 2013 – February 28, 2014
RYOHIN KEIKAKU CO., LTD.
2010/2 2011/2 2012/2 2013/2 2014/2
1 Revenue from operations (million yen) 164,341 169,748 178,186 188,350 220,620
2 Operating profit (million yen) 14,134 13,900 15,438 18,351 20,916
2 Operating profit ratio (%) 8.6 8.2 8.7 9.8 9.5
3 Ordinary profit (million yen) 14,608 14,229 16,135 19,760 23,047
3 Ordinary profit ratio (%) 8.9 8.4 9.1 10.5 10.5
4 Net income (million yen) 7,506 7,859 8,850 10,970 17,096
4 Net income ratio (%) 4.6 4.6 5.0 5.8 7.8
Net assets per share (yen) 2,718.43 2,871.02 3,055.61 3,488.03 4,071.86
Net income per share (yen) 270.31 285.86 330.35 409.45 644.60
5 Total assets (million yen) 99,381 97,481 102,293 119,360 140,229
5 Net assets (million yen) 77,066 78,502 83,528 96,050 111,015
5 Capital adequacy ratio (%) 76.0 78.9 80.0 78.3 76.9
6 Return on equity (ROE) (%) 10.3 10.3 11.1 12.5 17.0
Return on assets (ROA) (%) 7.8 8.0 8.9 9.9 13.2
Number of employees 2,331 2,595 2,734 3,069 4,101
1 Revenue from operations
4 Net income and net income ratio
2 Operating profit and operating profit ratio
5 Total assets, net assets and capital adequacy ratio
3 Ordinary profit and ordinary profit ratio
6 Return on equity (ROE)
Financial Highlights
0
8,000
12,000
4,000
20,000
0
4
6
2
10
16,000 8
’10/2 ’11/2 ’12/2 ’13/2 ’14/2
(million yen) (%)
Net income (left scale)
Net income ratio (right scale)
0
60,000
90,000
30,000
150,000
0
40
60
20
100
120,000 80
’10/2 ’11/2 ’12/2 ’13/2 ’14/2
(million yen) (%)
Total assets (left scale) Net assets (left scale)
Capital adequacy ratio (right scale)
0
10,000
15,000
5,000
25,000
0
6
9
3
15
20,000 12
’10/2 ’11/2 ’12/2 ’13/2 ’14/2
Ordinary profit (left scale)
Ordinary profit ratio (right scale)(million yen) (%)
0
10,000
15,000
5,000
25,000
20,000
0
6
9
3
15
12
’10/2 ’11/2 ’12/2 ’13/2 ’14/2
Operating profit (left scale)
Operating profit ratio (right scale)(million yen) (%)
0
100,000
200,000
50,000
250,000
150,000
’10/2 ’11/2 ’12/2 ’13/2 ’14/2
(million yen)
0
10
15
5
25
20
’10/2 ’11/2 ’12/2 ’13/2 ’14/2
(%)
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Annual Report 20142013.03.01–2014.02.28Message from the President
As a store dedicated to providing lifestyle
products of beauty, art and taste, we will
continue offering our vision of a Pleasant Life
to our customers.
Continuing on with the mission we embarked on a year earlier as a specialty retailer dedicated to delivering lifestyle products that exude beauty, art and taste, in FY2013 we fortified initiatives in our domestic business, including “strategic product item rollouts,” “cross department sales promotions among our Garment, Household, and Food,” and “interior design coordination consultation events.” In particular, we implemented a company-wide effort to tackle the reconstruction of the housewares segment, which was an issue for us, and consequently saw an improvement in segment performance. In our stores, we installed new display fixtures, which improved sales floor presentation and made it easier for customers to select products. Moreover, we are seeing benefits from our internal certification system (interior design advisors, fashion advisors, etc.) as it has enhanced the customer service capabilities of our staff by arming them technical expertise. Moving forward, we aim to create a store environment that will facilitate a pleasant shopping experience. In addition, we plan to improve our dialogue with customers via the introduction of the “MUJI passport,” a new membership service that will closely link us to customers.
Meanwhile, we posted a substantial growth in revenue from operations and operating profit in our overseas business. In particular, the sharp growth at the operations in China provided impetus for earnings performance in the overall overseas business. In China, we accelerated the pace of store openings, creating a network of 100 stores at the end of FY2013. Coupled with this, we also recorded an improvement in our operating profit ratio. Elsewhere, we launched operations in Australia, a new market, by opening our first store in Melbourne. In the United States, we opened MUJI Hollywood, our flagship store in the region and which has the largest sales floor space in the United States. The store is drawing in a huge number of customers.
Our company will continue to offer to our customers a pleasant life with products combining beauty, art and taste. Aiming to enhance the uniqueness of the MUJI brand and become a sustainable global company, we will work harder to contribute to society by offering goods and services trusted by our customers.
I would like to express my gratitude to our shareholders, and we look forward to your continued support.
Masaaki KanaiPresident and Representative Director
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Reconstructing the Housewares Segment and Strengthening Product Marketability – Plan to spur growth at existing stores mainly by reconstructing the Housewares Segment –
Policy Measures Progress
Results of directly managed existing store net sales comparison against previous year
Gross profit margin structure
Results of cross-promotions
Results for strategic products
Segment First half Second half AnnualThird quarter Fourth quarter
Clothing and sundries 102.7 % 104.9 % 104.1 % 104.5 % 103.6 %Housewares 100.3 % 103.9 % 105.8 % 104.9 % 102.5 %Food 109.5 % 125.3 % 115.9 % 120.0 % 114.9 %
Total directly managed existing stores 101.8 % 105.7 % 105.9 % 105.8 % 103.8 %Number of customers 100.0 % 103.1 % 100.6 % 101.8 % 100.9 %Sales per customer 101.8 % 102.5 % 105.2 % 104.0 % 102.9 %
Main factors TotalPrice reduction factors Currency factors Converting overseas
supplies into sales Cost reductions, etc.
First half - 0.4 % - 0.8 % - 1.4 % + 0.5 % - 2.1 %Second half + 0.5 % - 1.9 % - 1.1 % - 0.6 % - 3.1 %
FY2013 + 0.2 % - 1.5 % - 1.2 % - 0.1 % - 2.6 %
Promotion Sales % to plan Share
Living with Hemp Fabric 3,490 million yen 105.3 % 18.2 %MUJI to Go 1,930 million yen 107.5 % 17.5 %Always a Good Price 1,700 million yen 108.7 % 16.7 %Cotton, from Hand to Hand 3,310 million yen 117.6 % 16.3 %Nature, Naturally, MUJI (wool) 3,300 million yen 97.6 % 16.8 %Nature, Naturally, MUJI (X’mas) 5,550 million yen 130.5 % 30.2 %
Clothing and sundries Housewares Food Total
1H 2013% to sales plan 96.1 % 93.7 % 107.7 % 95.7 %
Sales share 53.2 % 44.2 % 45.6 % 47.6 %
2H 2013% to sales plan 99.6 % 99.7 % 122.3 % 101.2 %
Sales share 53.7 % 47.3 % 44.8 % 49.4 %
• Sales of clothing and sundries have showed strong performance. Sales of housewares also trended upward moving in the second half.
• The number of per-customer purchases rose owing to an increase in sales of houseware accessories (stationery, H&B). Per-customer sales continued to rise owing in part to a reduction in markdowns.
[Continued strengthening of production location shift for clothing and household products]• Inventory ratio from ASEAN in the 2H 2013: 20.3% (clothing: 30.6%; household: 11.1%)
[Expansion of direct sales ratio]• Actual inventory ratio for 4Q 2013: 22.2% (clothing: 17.2%; household: 24.9%)• In tandem with the shift in production regions, promote based on an overall assessment, including sales in China and preferential customs duties.
Gross profit margin change -2.6% [Individual] (2013.3 to 2014.2 cumulative)
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Annual Report 20142013.03.01–2014.02.28
Review sales floor reforms and marketing activities– Spark growth at existing stores via review of sales floor reforms and marketing activities –
MUJI Shibuya Seibu MUJI Tokyo Midtown MUJI GranDuo Kamata
Building infrastructure to support the growth of overseas operations– Speedily build a global supply chain management system –
Examples of sales floor reforms
Store remodeling
IT and distribution for global SCM
Sales growth of around 2.2 billion yen reflecting benefits of remodeling
*annualized figure Directly managed stores overall; a rise in monthly sales per tsubo (3.3 square meters) of 4,000 yen, equivalent to a rise in sales of 2.2%
1H 2013• Tokyo Midtown • Kami Ooka Keikyu • Yurakucho • Setagaya Kinuta• Nagoya PARCO • Ikebukuro Seibu • Keihan Mall • Aeon Mall Takasaki [8 stores]
2H 2013• Ofuna Lumine Wing • GranDuo Kamata • Kitasenju Lumine • Aeon Mall Fukuoka• Aeon Mall Kagoshima • Omiya Lumine • Apita Inazawa • Shibuya Seibu [8 stores]
Install new display fixtures2012 2013 Introduction benefits
(category sales)Introduction benefits
(all stores)Second half First half Second half
Living spaceScaffolding display fixture (trial introduction) 83 stores
(March)–
Stores introducing the display fixtures
up 6.3% YOYSales per tsubo for
all directly managed stores that introduced the display fixtures
+1,000 yen, sales +0.6%
Sales per tsubo for all stores that introduced display fixtures
+3,000 yen, equivalent to a sales increase of 1.9%
ClothingPromotion table display fixture – (trial introduction) 80 stores
(September)
Stores introducing the display fixtures
up 6.3% YOY
StationeryTable display fixture – (trial introduction) 75 stores
(February)
Stores introducing the display fixtures
up 10.1% YOY
H&BTable display fixture – (trial introduction) 75 stores
(February)
Stores introducing the display fixtures
up 13.0% YOY
• Status of global MD system adoption
FY2010 June, ChinaFY2012 November, SingaporeFY2013 January, Middle East May, Korea July, Europe October, Hong Kong November, AustraliaFY2014 February, the United States, Thailand March, Malaysia May, Taiwan
• Operations at Shanghai and Shenzhen Global Distribution Centers (GDC)
July 2013 launchResults for 2H 2013 • 2,004 items 35% of total items handled overseas • 2,120 million yen 28.5% of total overseas supplies
Shanghai GDC : Cushions, towels, foaming bath ball, etc.Shenzhen GDC : Cleaning supply system, PP albums, soft-cloth boxes, etc.
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Directly managed stores 191Stores managed by affiliates 29Licensed stores 35
Total 255(as of February 28, 2014)
126
2 6
1
1
11
100
12 2910
8
5 72
12
9 7
7 4
1
1 1 1
Hong KongPhilippines
Turkey Indonesia
Portugal
Kuwait UAE Australia
Ireland
China
South Korea TaiwanThailand
U.S.A.
Spain SingaporeMalaysia
United Kingdom France
Italy
Sweden Norway
Poland
Germany
Licensed stores: Stores to which we sell products wholesaleStores managed by affiliates (Taiwan)
*From January 6, 2014, MUJI TAIWAN CO., LTD. became a consolidated subsidiary (directly managed store)
Total
255
Breakdown of storesoutside Japan,
by region
Europe 60
Asia 187
U.S.A. 8
Directly managed stores 269Licensed stores 61Stores in Seiyu outlets 55
Total 385(as of February 28, 2014)
Licensed stores: Stores to which we sell products wholesale, except for Seiyu, FamilyMart and com KIOSK
1 57
97
13 322
7 110
1
7
1239 9
846 12 4138 24
Tohoku
Kyushu / Okinawa
Chugoku
Shikoku Kansai
Chubu
Kanto
Hokkaido
Stores in Japan
Stores outside Japan
Business Segment Overview 1
Status of stores, by region
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Annual Report 20142013.03.01–2014.02.28
Directly managed business in Japan saw strong growth with directly managed net sales recording an increase of 6.7% compared to the previous period and Web Business net sales recording an increase of 13.9%.
Major products drove sales. This included denim jeans line, including our new US cotton blend product, and the cotton silk knit series in the clothing and sundries segment, aroma diffusers and related essential oil series in the housewares segment, and do-it-yourself confectionary kits for Valentine’s Day in the food segment.
At our general supply destinations and our supply business to Seiyu, in-store sales grew 3.2% YOY. Accordingly, our net sales of supplies also grew from a year earlier.
Revenue from operations
Revenue from operations
133,680 million yen ( up 7.4% YOY)
27,425 million yen ( up 3.4% YOY)
11,771 million yen ( down 5.3% YOY)
2,185 million yen ( down 10.4% YOY)
Segment profit
Segment profit
Store openings and closuresStore openings and closures included 18 store openings and 11 store closures, resulting in the number of stores being 269.
Store openings and closuresThree store openings and four store closures for a total of 116 stores.
Trend in number of stores (FY2013)
Directly managed business in Japan
Domesticsupply
business
Retail sales business at directly managed domestic stores and online stores
Wholesale business to domestic licensed companies
Number of stores at end of previous term
Openings Closings Total
Directly managed business in Japan 262 18 11 269
Domestic supply business 117 3 4 116
60.6%
Percentage ofrevenue from operations
12.4%
Percentage ofrevenue from operations
MUJI Grand Front Osaka MUJI Shibuya Seibu
0
300
200
100
2009 2010 2011 2012 2013
(stores)
Domestic supply business
Directly managed business in Japan
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Sales trended solidly reflecting the bottoming out of the macro-economy, which had continued to deteriorate mainly in southern Europe. In addition, the weakness in the British pound and the Euro, which has long squeezed our profits, made a positive turnaround. This reduced our purchasing costs and contributed to profit growth.
We substantially grew sales owing to fully stocked inventories of popular items, including focus products. In addition to brisk sales at existing stores, we also made smooth progress in carrying out store openings and remodeling. Moreover, in November 2013 we opened our first store in Australia.
Store openings and closuresFour store openings (of which, two were supply destinations) and three store closures (of which, two were supply destinations) for a total of 60 stores.
Store openings and closuresIn addition to opening 45 new stores and closing four stores, we acquired nine stores in Thailand. Reflecting this, we now have a total of 144 stores. In China, which is the key of growth in our overseas business, there were 37 store openings and two store closure, bringing the number of stores to 100 stores.
Trend in number of stores (FY2013)
Business in European
region
Business inAsianregion
Sales business in Asia
Number of stores at end of previous term Openings Closings Total
59 4 3 60
Trend in number of stores (FY2013)Number of
stores at end of previous term
Openings Closings Total
94 54 4 144Of which, in China 65 37 2 100
4.5%
Percentage ofrevenue from operations
15.6%
Percentage ofrevenue from operations
Business Segment Overview 2
Revenue from operations
Revenue from operations
9,933 million yen ( up 25.2% YOY)
34,493 million yen ( up 79.0% YOY)
250 million yen ( up 9.6% YOY)
3,808 million yen ( up 146.9% YOY)
Segment profit
Segment profit
Sales business in Europe
MUJI Shanghai World Trade Plaza iapm (China)
MUJI DaJiang (Taiwan)
0
90
60
30
2009 2010 2011 2012 2013
(stores)
0
150
100
50
2009 2010 2011 2012 2013
(stores)
China
Asian region overall
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Annual Report 20142013.03.01–2014.02.28
In the USA, from November 2012 we began expanding the area of our business operations on the West Coast. In light of this, we improved our brand recognition in the United States and sales have trended briskly.
Other business
Sales business in regions other than Europe and Asia
Overseas Supply Business, Beverage Business, MUJI Campsite Operation, Housing Sales Business
Business in other
regions
Store openings and closuresThree openings for a total of 8 stores.
Trend in number of stores (FY2013)
Number of stores at end of previous term Openings Closings Total
5 3 – 8
Store openings and closures for licensed stores in countries in the Asia region included five openings and one closure. The previously discussed business transfer of nine stores in Thailand was conducted with a consolidated subsidiary, thereby bringing our total for licensed stores to 43.
In the beverage business, we opened three new stores bringing the total count to 18 stores.
1.1%
Percentage ofrevenue from operations
5.8%
Percentage ofrevenue from operations
Revenue from operations
Revenue from operations
2,389 million yen ( up 85.6% YOY)
12,697 million yen ( up 43.9% YOY)
82 million yen ( up 6.1% YOY)
3,697 million yen ( up 113.6% YOY)
Segment profit
Segment profit
MUJI Hollywood (the United States)MUJI Chadstone (Australia)0
9
6
3
2009 2010 2011 2012 2013
(stores)
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1. Basic Policy on Corporate Governance
We aim to establish good relationships with all stakeholders (shareholders, customers, employees, society and client
companies), to differentiate ourselves from other companies and win an overwhelming presence and the trust of customers to
enhance our corporate value. We have therefore been making improvements in manufacturing, sales, and customer service in
order to enhance our reputation and strengthen the “MUJI (Mujirushi Ryohin)” brand image.
We will demonstrate our reliability by improving our business performance, engaging in proactive IR activities, making fair
and transparent disclosures, and increasing returns to shareholders. In our relationships with employees, we will provide a
vector for our staff members to make efforts to achieve our company’s goals and establish an open and stimulating corporate
culture so that employees can realize their full potential. Our organizational management processes ensure constant self-
reflection and self-discipline, based on the lessons learned from a spate of corporate scandals seen in recent years.
2. Current status of Corporate Governance System for final decision-making, and of Managerial Organization for execution of decisions and supervision
1) Currently, taking into account the size of our company, its organizational status and staff mobility, the Board consists of
six directors within the company (six directors doubling as operating officers) and three directors outside the company,
who were appointed as independent directors in accordance with rules stipulated by the Tokyo Stock Exchange and who
report to the TSE. The supervisory functions and managerial responsibility of the Board of Directors are clearly stipulated,
and we also promote delegation of authority, including reviews of the board system and decision-making systems as
appropriate, in order to accelerate the implementation of processes.
2) Our company has adopted an audit system. Currently, the Board of Auditors consists of four members (including one
full-time auditing officer), all of whom are outside corporate auditors. Three of the four members were appointed as
independent directors in accordance with rules stipulated by the Tokyo Stock Exchange and these members report to
the TSE. The Board of Auditors audits the directors’ execution of their duties by attending Board meetings and checking
important documents. In addition, the Board of Auditors regularly liaises with the Audit Department, which conducts
internal audits, and with the accounting auditor, who conducts accountancy services.
3) The Payment Advisory Board (consisting of three directors outside the company (including one chairperson) and two
directors within the company) advises the Board of Directors on the payment of directors. The Nomination Advisory Board
(consisting of three directors outside the company (including one chairperson) and two directors within the company)
advises the Board of Directors on the nomination of directors.
4) The Audit Department (currently consisting of six members) conducts internal audits. The Department performs audits
to determine whether business operations are being appropriately performed in accordance with our store management
manual and Work Standard Sheets (MUJIGRAM) by our headquarters, as well as to determine whether problems have
been solved. The audit results are reported to our representative directors on a weekly basis, as well as to our Board of
Directors every half-term.
5) Accounting audits of our company are conducted by a team consisting of two certified public accountants with KPMG
AZSA LLC, seven assistant certified public accountants, and eleven other members. Thus an environment for fair auditing
is established. The team of certified public accountants with KPMG AZSA LLC consists of Mr. Akihiro Ohtani (with two
years of continuous auditing service) and Mr. Takushi Miyashita (with four years of continuous auditing service).
Corporate Governance
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Annual Report 20142013.03.01–2014.02.28
(As of June 1, 2014)
Directors
Six directors within the companyThree directors outside the company
Payment Advisory Board
Two directors within the companyThree directors outside the company
Nomination Advisory Board
Two directors within the companyThree directors outside the company
Board of Auditors
Four corporate auditors within the company (including one full-time auditing officer)
Accounting Auditor
[Committees]
• Management Strategy Committee• Personnel Committee• Personnel Training Committee• Advertisement Strategy Committee• Quality Improvement Committee• Safety and Health Committee• Overseas 400 Committee• Store Opening Planning Committee
Representative Directors
Management Committee
Operating Officers
Audit Department
Sales Meeting
Work Standardization Committee
HelplineAdvisory Board
Merchandise Strategy Committee
Shareholders’ Meeting
Employees
Head of Each Department (person responsible for internal control)
Each Group Company
[Diagram]
Appointment/Dismissal Appointment/Dismissal
Audit
Report
Report
Report
Consultation
Accounting audit
Internal audit
Appointment/DismissalSupervision
Advice
Audit
Appointment/Dismissal
Audit
Compliance & Risk Management Committee
( )person responsible for overall internal control
general manager of general affairs and personnel
=
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Environmental Activities
Creating a Pleasant Life Ryohin Keikaku contributes to society through our business activities
In 1980, Ryohin Keikaku launched the MUJI brand under the catchphrase “Lower priced for a reason.” MUJI was created to
promote low price and high value products, based on the in-house development experience of Seiyu GK, the umbrella group of
Ryohin Keikaku. The basic principle of MUJI merchandise development is to create products that are fundamental, practical and
really necessary in daily life, and to ensure efficient and minimal manufacturing processes. Based on this concept, we constantly
review our materials and designs, streamline time and labor in the manufacturing process, and simplify our packaging. For many
years our simple, elegant and functional products have earned the respect and appreciation of our customers.
Over 30 years has passed since the birth of MUJI, and we are still applying and developing our basic principles, responding to
our customers, and ensuring the MUJI brand means pleasant (well-designed, well-made and environmentally-friendly) products
and services; in this way we will offer the opportunity of a Pleasant Life (harmony with our neighbors and our planet) to people
throughout the world. Ryohin Keikaku believes that through our business activities we are able to satisfy our customers, offer
simplicity, harmony and beauty, and contribute to the greater community.
As a company that promotes a Pleasant Life we proclaim and implement three promises for corporate operation, three
viewpoints for product development—the fundamentals of business operation—and three criteria for manufacturing.
Three Promises for Corporate Operation(excerpt from Vision of “ryohin (good product),” Corporate Philosophy)
Three Criteria for Product Development
Three Viewpoints for Manufacturing
1. Take the challenges of global growth and development through fair and transparent business activities, and rise to these challenges.
2. Inquire into and offer new value and attractiveness of good products from the viewpoints of people. From the customers’ viewpoints, seek and offer new value and appeal.
3. To all age groups and various communities (customers, growers, manufacturers, etc.) connected with Ryohin Keikaku, offer the vision of a sustainable Pleasant Life.
1. Problem solving through design
2. Examination of materials and processes
3. Simplification of packaging
1. Ryohin Standards (Quality Standards)
2. Ryohin Keikaku Environment, Labor and Safety Management (The Code of Conduct for Business Partners)
3. Major materials not used or controlled
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Annual Report 20142013.03.01–2014.02.28
Company initiatives to create a Pleasant Life
Company Creating a Pleasant Life
Global Warming
Waste Elimination
Conservation of Natural Resources
Safety & Security
Respect & Harmony
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Company name RYOHIN KEIKAKU CO., LTD.
Location 4-26-3 Higashi-Ikebukuro, Toshima-ku, Tokyo, 170-8424
Establishment June 1989 (registration: May 1979)
Capital ¥6,766,250,000
Accounts settlement date Last day of February every year
Major business Operation of exclusive MUJI stores / product planning / development / production / wholesale / retail
Management Chairman and Representative Director Tadamitsu Matsui
President and Representative Director Masaaki Kanai
Senior Managing Director Satoru Matsuzaki
Managing Director Takashi Kato
Managing Director Takashi Komori
Director Kei Suzuki
Director Hisashi Sakamaki
Director Isao Endo
Director Toshiaki Ito
Corporate Auditor Hitoshi Matsui
Corporate Auditor Masaru Hattori
Corporate Auditor Michio Shibuya
Corporate Auditor Kuniaki Hara
Senior Executive Officer Junichi Tokue
Executive Officer Hiroto Oki
Executive Officer Tetsuo Kameya
Executive Officer Mitsuru Tanaka
Executive Officer Yumiko Hagiwara
Executive Officer Satoshi Okazaki (As of May 21, 2014)
Advisory Board Advisor Kazuko Koike
Advisor Takashi Sugimoto
Advisor Kenya Hara
Advisor Naoto Fukasawa (As of February 28, 2014)
Corporate Information
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Annual Report 20142013.03.01–2014.02.28
MUJI was established in December 1980 as a private brand of The Seiyu, Ltd. with 40 products, and has grown into a brand
with more than 7,000 products today. Ryohin Keikaku Co., Ltd. was established as an independent company from The Seiyu,
Ltd. in 1989. As a manufacturer/retailer, it plans, develops, manufactures, distributes and sells the MUJI brand for all aspects of
life, including clothing, household articles and food products.
1980 MUJI established as a private brand of The Seiyu, Ltd. (household articles: 9, food products: 31).
1981 Started selling clothes.
1982 Started wholesaling to partner stores.
1983 Opened the first directly managed store, “MUJI Aoyama” (103 sq m).
1984 Opened outlets inside large Seiyu stores.
1985 Established MUJI Business Department.
1986 Started overseas production and procurement (comprehensive production in overseas countries).
1987 Accumulated know-how of overseas production and procurement including factory direct orders and original distribution channels.
1988 Developed materials globally.
1989 Established RYOHIN KEIKAKU CO., LTD. (capital: 100 million yen).
1990 MUJI business transferred from The Seiyu, Ltd.
1991 Opened the first overseas store in London (a partnership with Liberty & Co.).
1992 Started Blue MUJI for products with further enhanced quality.
1993 Established RK TRUCKS CO., LTD.; opened large one-floor store, “MUJI Lalaport.”
1994 Established RYOHIN KEIKAKU EUROPE LTD.; opened Niigata Logistics Center.
1995 Opened first store in Singapore (closed down in 1998); opened “MUJI Tsunan Campsite;” Company shares registered on the over-the-counter market.
1996 Increased capital to ¥6,766.25 million; opened Fukuoka Logistics Center.
1997 Obtained ISO9001 certification.
1998 Listed on the second section of the Tokyo Stock Exchange; opened Kobe Logistics Center and Urayasu Logistics Center.
1999 Started com KIOSK business (operated by JR East Retail Net Co., Ltd.).
2000 Promoted to listing on the first section of the Tokyo Stock Exchange; established MUJI.net Co., Ltd.
2001 Opened MUJI (HONG KONG) CO., LTD.; opened MUJI Yurakucho and MUJI Namba stores.
2002 Opened first store in Ireland.
2003 Opened first store in Korea; started living space project Mujirushi Ryohin no Ie.
2004 Opened first store in Taiwan; opened MUJI Tsumagoi Campground; opened Mujirushi Ryohin no Ie Yurakucho; opened first store in Italy.
2005 Opened first store on Chinese mainland (Shanghai) and first store in Germany.
2006 Established MUJI Global Sourcing Private Limited in Singapore; opened first store in Spain; took over the business of IDÉE CO., LTD.
2007 Established subsidiary MUJI EUROPE HOLDINGS LIMITED to oversee European operations; opened MUJI Tokyo Midtown and first U.S.A. directly managed store.
2008 Opened MUJI to GO Hong Kong International Airport; opened U.S.A. flagship store MUJI Times Square; opened MUJI Shinjuku.
2009 Relocated and updated MUJI Ikebukuro Seibu; opened first store in Indonesia.
2010 Opened first store in Poland; 30th anniversary of MUJI; opened first store in Portugal.
2011 Opened Café&Meal MUJI Minami Aoyama; updated Mujirushi Ryohin Yurakucho and MUJI Canal City Hakata; established MUJI (MALAYSIA) SDN. BHD.; opened Found MUJI Aoyama.
2012 Opened first store in Malaysia; established MUJI Retail (Thailand) Co., Ltd.
2013 Opened first store in Kuwait; opened MUJI Grand Front Osaka; opened first store in Australia.
History
Found MUJI Aoyama
MUJI Yurakucho
MUJI Grand Front Osaka
MUJI Times Square
Mujirushi Ryohin Shimokitazawa
Forty debut items
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Group Companies
Address : Toshima-ku, TokyoEstablishment : March 1993Primary business : Distribution
Address : SingaporeEstablishment : January 2003Primary business : Retailing of MUJI products
Address : Toshima-ku, TokyoEstablishment : May 2000Primary business : Retailing of living space project
Mujirushi Ryohin no Ie products
Address : Kuala Lumpur, MalaysiaEstablishment : October 2011Primary business : Retailing of MUJI products
Address : Toshima-ku, TokyoEstablishment : August 2006Primary business : Planning, manufacturing and retailing
of furniture, interior goods, etc.
Address : Seoul, South KoreaEstablishment : December 2004Primary business : Retailing of MUJI products
Address : London, U.K.Establishment : January 2007Primary business : Oversight of European region
business
Address : Shanghai, ChinaEstablishment : May 2005Primary business : Retailing of MUJI products
Address : London, U.K.Establishment : March 1994Primary business : Retailing of MUJI products
Address : Melbourne, Australia Establishment : March 2013Primary business : Retailing of MUJI products
Address : Paris, FranceEstablishment : April 1998Primary business : Retailing of MUJI products
Address : SingaporeEstablishment : April 2006Primary business : Product development,
procurement, import and export
Address : Milan, ItalyEstablishment : September 2004Primary business : Retailing of MUJI products
Address : Shanghai, ChinaEstablishment : October 2009Primary business : Product development, procurement
and wholesale in China
Address : Düsseldorf, GermanyEstablishment : July 2005Primary business : Retailing of MUJI products
Address : Taipei, TaiwanEstablishment : August 2003Primary business : Retailing of MUJI products
Address : New York, U.S.A.Establishment : October 2006Primary business : Retailing of MUJI products
Address : Bangkok, ThailandEstablishment : November 2012Primary business : Retailing of MUJI products
Address : Hong Kong, ChinaEstablishment : March 2001Primary business : Retailing of MUJI products
RK TRUCKS CO., LTD.
MUJI Deutschland GmbH
MUJI RETAIL (AUSTRALIA) PTY LTD
MUJI HOUSE CO., LTD.
MUJI U.S.A. LIMITED
MUJI Retail (Thailand) Co., Ltd.
MUJI (MALAYSIA) SDN. BHD.
IDÉE CO., LTD.
MUJI (HONG KONG) CO., LTD.
MUJI Global Sourcing Private Limited
MUJI EUROPE HOLDINGS LIMITED
MUJI (SINGAPORE) PRIVATE LTD.
MGS (SHANGHAI) TRADING CO., LTD.
RYOHIN KEIKAKU EUROPE LTD.
MUJI Korea Co., Ltd.
MUJI TAIWAN CO., LTD.
RYOHIN KEIKAKU FRANCE S.A.S.
MUJI (SHANGHAI) CO., LTD.
MUJI ITALIA S.p.A.
15
Consolidated financial statements
16
Consolidated balance sheets
(Unit: Million yen)
Previous consolidated fiscal year(February 28, 2013)
Current consolidated fiscal year(February 28, 2014)
Assets
Current assets
Cash on hand and in banks 21,563 25,206
Notes and accounts receivable 6,092 6,965
Marketable securities 10,023 20
Products 27,106 36,602
Work in process 74 232
Supplies 14 14
Deferred tax assets 758 957
Accounts receivable – other 5,168 4,933
Other items 1,758 2,366
Allowance for doubtful accounts (4) (7)
Total current assets 72,556 77,290
Fixed assets
Tangible fixed assets
Buildings and structures 21,272 25,338
Accumulated depreciation (12,601) (13,945)
Buildings and structures (net value) 8,671 11,392
Machinery, equipment and vehicles 1,917 2,105
Accumulated depreciation (1,209) (1,434)
Machinery, equipment and vehicles (net value) 708 671
Equipment 10,222 12,391
Accumulated depreciation (7,570) (8,429)
Equipment (net value) 2,652 3,962
Land 1,324 1,350
Lease assets 39 46
Accumulated depreciation (34) (42)
Lease assets (net value) 5 4
Construction in progress 874 4,797
Total tangible fixed assets 14,236 22,178
Intangible fixed assets
Goodwill 36 7,619
Other 4,077 4,764
Total intangible fixed assets 4,113 12,383
Investment and other assets
Investment securities 12,047 12,183
Deferred tax assets 975 145
Lease and guarantee deposits 15,230 15,595
Other 366 609
Allowance for doubtful accounts (164) (155)
Total investments and other assets 28,454 28,376
Total fixed assets 46,804 62,939
Total assets 119,360 140,229
17
Annual Report 20142013.03.01–2014.02.28
(Unit: Million yen)
Previous consolidated fiscal year(February 28, 2013)
Current consolidated fiscal year(February 28, 2014)
Liabilities
Current liabilities
Accounts payable 10,155 12,752
Short-term loans payable 407 190
Accrued expenses 4,124 4,803
Income taxes payable 4,446 4,017
Reserve for bonuses 243 635
Reserve for directors’ bonuses 73 74
Provision for sales returns 46 64
Provision for point card certificates — 39
Reserve for loss on closing of stores 19 32
Other 3,168 4,254
Total current liabilities 22,685 26,865
Long-term liabilities
Long-term loans payable — 1,150
Reserve for directors’ retirement benefits 109 109
Reserve for loss on non-cancelable lease contracts 50 46
Other 465 1,044
Total long-term liabilities 625 2,349
Total liabilities 23,310 29,214
Net assets
Shareholders’ equity
Capital stock 6,766 6,766
Capital surplus 10,116 10,825
Earned surplus 80,207 93,845
Treasury stock (3,927) (7,578)
Total shareholders’ equity 93,163 103,858
Valuation and translation adjustments
Valuation difference on available-for-sale securities 1,192 1,641
Translation adjustment (870) 2,291
Total valuation and translation adjustments 322 3,933
Stock acquisition rights 310 345
Minority interests 2,254 2,876
Total net assets 96,050 111,015
Total liabilities and net assets 119,360 140,229
18
Consolidated income statements
(Unit: Million yen)
Previous consolidated fiscal year(March 1, 2012 – February 28, 2013)
Current consolidated fiscal year(March 1, 2013 – February 28, 2014)
Net sales 187,693 220,029
Cost of sales 100,974 118,955
Gross profit 86,719 101,074
Operating revenue 657 590
Operating profit before S.G.A. 87,376 101,665
Selling, general and administrative expenses
Advertising expenses 3,670 3,261
Distribution and transportation expenses 7,438 8,664
Employees’ salaries and bonuses 18,963 22,099
Provision of reserve for directors’ bonuses 73 60
Leasehold and office rents 19,630 22,597
Depreciation 3,186 4,179
Provision for point card certificates — 39
Other 16,061 19,847
Total selling, general and administrative expenses 69,024 80,749
Operating profit 18,351 20,916
Non-operating income
Interest income 29 55
Dividends income 289 313
Foreign exchange gains 739 813
Co-sponsor fee 43 68
Equity in earnings of affiliates 145 424
Other 179 506
Total non-operating income 1,427 2,182
Non-operating expenses
Interest expenses 8 20
Commission for purchase of treasury shares — 23
Other 10 6
Total non-operating expenses 18 50
Ordinary profit 19,760 23,047
Extraordinary income
Settlement received — 186
Gain on step acquisitions — 3,540
Total extraordinary income — 3,727
19
Annual Report 20142013.03.01–2014.02.28
(Unit: Million yen)
Previous consolidated fiscal year(March 1, 2012 – February 28, 2013)
Current consolidated fiscal year(March 1, 2013 – February 28, 2014)
Extraordinary losses
Impairment loss 34 356
Loss on retirement of fixed assets 296 308
Loss on valuation of investment securities 1,379 —
Provision of reserve for loss on closing of stores 16 19
Settlement package — 88
Others 14 —
Total extraordinary losses 1,740 772
Income before income taxes 18,019 26,003
Income taxes – current 7,455 8,089
Income taxes – deferred (535) 705
Total income taxes 6,920 8,794
Income before minority interests 11,099 17,208
Minority interests in income 128 111
Net income 10,970 17,096
20
Consolidated statements of changes in net assets
(Unit: Million yen)
Shareholders’ equity
Capital stock Capital surplus Retained earnings Treasury stock Total shareholders’ equity
Balance at beginning of current term 6,766 10,116 80,207 (3,927) 93,163
Changes of items during term
Dividends from surplus (3,458) (3,458)
Net income 17,096 17,096
Purchase of treasury stock (4,149) (4,149)
Disposal of treasury stock 708 498 1,207
Net changes of items other than shareholders’ equity (net value)
Total changes of items during term 708 13,637 (3,650) 10,695
Balance at end of term 6,766 10,825 93,845 (7,578) 103,858
Valuation and translation adjustmentsStock
acquisition rights
Minority interests
Total net assets
Valuation difference on
available-for-sale securities
Translation adjustment
Total valuation and translation
adjustments
Balance at beginning of current term 1,192 (870) 322 310 2,254 96,050
Changes of items during term
Dividends from surplus (3,458)
Net income 17,096
Purchase of treasury stock (4,149)
Disposal of treasury stock 1,207
Net changes of items other than shareholders’ equity (net value)
448 3,162 3,611 35 622 4,269
Total changes of items during term 448 3,162 3,611 35 622 14,964
Balance at end of term 1,641 2,291 3,933 345 2,876 111,015
21
Annual Report 20142013.03.01–2014.02.28Consolidated cash flow statements 1
(Unit: Million yen)
Previous consolidated fiscal year(March 1, 2012 – February 28, 2013)
Current consolidated fiscal year(March 1, 2013 – February 28, 2014)
Net cash provided by operating activities
Income before income taxes 18,019 26,003
Depreciation 2,675 3,530
Depreciation of software 665 804
Amortization of goodwill 1 14
Increase (decrease) in allowance for doubtful accounts (14) (6)
Increase (decrease) in reserve for directors’ bonuses 1 (4)
Increase (decrease) in reserve for retirement benefits and directors’ retirement benefits (6) —
Increase (decrease) in reserve for loss on closing of stores (133) 13
Increase (decrease) in reserve for loss on non-cancelable lease contracts (41) (4)
Increase (decrease) in reserve for sales returns 46 18
Interest and dividends income (319) (369)
Interest expenses 8 20
Foreign exchange losses (gains) (201) (156)
Equity in (earnings) losses of affiliates (145) (424)
Loss (gain) on step acquisitions — (3,540)
Loss on retirement of fixed assets 296 311
Impairment loss 34 356
Loss (gain) on valuation of investment securities 1,379 —
Decrease (increase) in notes and accounts receivable-trade (627) 1,178
Decrease (increase) in inventories (4,182) (5,271)
Increase (decrease) in notes and accounts payable-trade 431 487
Decrease (increase) in other assets 805 (307)
Increase (decrease) in other liabilities 316 641
Stock acquisition rights 55 65
Other 13 1
Subtotal 19,082 23,364
Interest and dividend income received 393 466
Interest expenses paid (8) (23)
Income tax paid (6,290) (8,690)
Net cash provided by operating activities 13,176 15,117
Net cash used in investment activities
Payments into time deposits (21) (179)
Proceeds from withdrawal of time deposits 43 126
Purchase of property, plant and equipment (3,856) (10,474)
Leasehold right on stores and lease deposits (962) (1,275)
Proceeds from collection of lease deposits for stores 868 1,111
Purchase of intangible fixed assets (986) (1,346)
Purchase of shares of subsidiaries and associates — (609)
Purchase of newly consolidated subsidiaries — (4,917)
Other (32) (277)
Net cash used in investment activities (4,945) (17,842)
22
(Unit: Million yen)
Previous consolidated fiscal year(March 1, 2012 – February 28, 2013)
Current consolidated fiscal year(March 1, 2013 – February 28, 2014)
Net cash used in financing activities
Increase (decrease) in short-term loans payable 287 (280)
Proceeds from long-term loans payable — 1,150
Repayments of lease obligations (3) (0)
Proceeds from stock issuance to minority shareholders 122 230
Proceeds from sales of treasury stock 0 0
Purchase of treasury shares — (3,026)
Cash dividends paid (2,947) (3,458)
Net cash used in financing activities (2,540) (5,385)
Effect of exchange rate change on cash and cash equivalents 849 1,714
Increase (decrease) in cash and cash equivalents 6,539 (6,396)
Cash and cash equivalents, beginning of period 24,858 31,397
Cash and cash equivalents, end of period 31,397 25,001
Consolidated cash flow statements 2
23
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