Valuation
Group Presentation
ABC-MART, INC.
Capital 3,482 million yen
President and Executive Officer Minoru Noguchi
Number of Employees 5,245 (Part-ti...
History
1985 Kokusai Boeki Shoji inc.
1986 Agency contract with G.T.Hawkins limited for exclusive rights
1990 ABC-Mart Ltd...
Management Strategy
SHOP
PRODUCT

• Catch and adapt market needs.
• Business expansion depends on
local market.
• Global n...
Shoe Market Size in Japan
JPY100mil
15,000

14,500

14,000

13,500

13,000

12,500

12,000
2000

Year
Market
size
Compari
...
Major Players in Japanese Market
ABCMart
11%

There are 12,000 shoe
stores in Japan (2007).
Their average annual sales
is ...
Operating
income ratio(%)

Advantage Matrix Analysis

ABC Mart

Himiko
Regal

Pal
CHIYODA

Delica
G Foot
Revenue(JPY.mil))...
Comparable Analysis
EBITA Multiple
Ratio(Times)

ABC Mart is on the average level
of similar companies.
EBITA Comparable A...
Financial condition
160,000

20.00%
18.00%

140,000

16.00%

Million yen

14.00%

100,000

12.00%

80,000

10.00%
8.00%

6...
Sales by segments
160,000
Revenue [million yen] & # of shops

900

120,000
100,000
80,000
60,000
40,000
20,000

700
600
50...
SWOT analysis
Strengths

Opportunities

1. No. 1 share
2. Strong name brand
3. Collaboration with a
lot of strong national...
Set scenarios (2013 to 2015)
Optimistic
 Take an opportunity to
expand oversea growth 
and domestic market is
Opportunit...
Cash flow projection
30,000

Net income [million yen]

25,000
20,000
15,000
10,000
5,000
0
2010 2011 2012 2013 2014 2015 2...
Valuation
DCF法による評価
(
単位:
億円)

2010/2
Act
ual
Sal
es

1,
135

2011/2
Act
ual

2012/2
Act
ual

490
43.
2%
645
56.
8%
403
35...
Appendix

18
16
14

Age

12
10
8
6
4

2
0 歳
950

1,000

1,050

1,100

1,150

1,200

1,250
Appendix

1,600,000
1,400,000
1,200,000
Others

1,000,000

Children shoes

800,000

Sports shoes
600,000

Women shoes

400...
Abc valuation final
Abc valuation final
Abc valuation final
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Abc valuation final

  1. 1. Valuation Group Presentation
  2. 2. ABC-MART, INC. Capital 3,482 million yen President and Executive Officer Minoru Noguchi Number of Employees 5,245 (Part-time employees 2,454 included) Description of Business Retailing of products, such as shoes, clothing and general merchandise, product development, import of goods from all over the world, licensing business for various brands. Number of Stores Hokkaido 27, Tohoku 41, Tokyo 97, other Kanto 204, Chubu 96, Kansai 102, Chugoku&Shikoku 51, Kyushu&Okinawa 82, total 700 Subsidiaries :ABC-MART KOREA,INC. ABC-MART TAIWAN,INC. LaCrosse Footwear,Inc.
  3. 3. History 1985 Kokusai Boeki Shoji inc. 1986 Agency contract with G.T.Hawkins limited for exclusive rights 1990 ABC-Mart Ltd.is established 1991 Agency contract with Vans, Inc. for exclusive sales 2000 Initial public offering on JASDAQ 2002 ITC absorbed ABC-Mart Co., Ltd. and changed its name to ABC-Mart Inc. ・ABC-MART, Inc. was listed on first section of the Tokyo Stock Exchange ・Subsidiary company ABC-Mart Korea Inc. was established in South Korea 2005 Ladies brand Nuovo collection developed 2008 Mega Stage, the Company’s first large size general shop handling apparel and other goods as a tenant store, is opened 2012 ABC-Mart GrandStage IKEBUKURO and ABC-Mart GrandStage DiverCity TOKYO Plaza is opened
  4. 4. Management Strategy SHOP PRODUCT • Catch and adapt market needs. • Business expansion depends on local market. • Global network • Grow up house brand MANAGEMENT • Effective logistics system • Building up high MAN POWER • Focus on the store • Leadership and team work
  5. 5. Shoe Market Size in Japan JPY100mil 15,000 14,500 14,000 13,500 13,000 12,500 12,000 2000 Year Market size Compari son 2000 2001 2001 2002 2002 2003 2003 2004 2004 2005 2005 2006 2006 2007 2008 2007 2008 2009 2009 2010 2011 Year (JPY:100mil,%) 2010 2011 14,530 14,410 14,235 13,985 13,785 13,935 14,240 14,470 14,060 13,445 13,425 13,115 99.2% 98.8% 98.2% 98.6% 101.1% 102.2% 101.6% 97.2% 95.6% 99.9% 97.7%
  6. 6. Major Players in Japanese Market ABCMart 11% There are 12,000 shoe stores in Japan (2007). Their average annual sales is JPY56million. SMEs are disappearing affected by the large scale store and internet shopping. No 1 2 3 4 CHIYODA 12% G Foot 7% others 70% Name ABCMart CHIYODA G Foot ot hers Tot al revenue 140,761 154,086 92,136 924,517 Total 1,311,500
  7. 7. Operating income ratio(%) Advantage Matrix Analysis ABC Mart Himiko Regal Pal CHIYODA Delica G Foot Revenue(JPY.mil)) ABC Mart is the only company succeeded in Specialized Business. These businesses gain benefits from both economies of scale and differentiation (often characterized by experience effects in their own, differentiated, segment)
  8. 8. Comparable Analysis EBITA Multiple Ratio(Times) ABC Mart is on the average level of similar companies. EBITA Comparable Analysis = Corporate Value(Total stock value + Net Debt) /EBITA (Operating Profit + Depreciation)
  9. 9. Financial condition 160,000 20.00% 18.00% 140,000 16.00% Million yen 14.00% 100,000 12.00% 80,000 10.00% 8.00% 60,000 6.00% 40,000 4.00% 20,000 2.00% 0 0.00% 2001 Revenue 2002 2003 2004 Operation income 2005 2006 2007 Ordinary income 2008 2009 2010 2011 Net income Rapid revenue growth and high profit ratio. They are growing performance in the shoe market. 2012 Net income ratio Net income ration 120,000
  10. 10. Sales by segments 160,000 Revenue [million yen] & # of shops 900 120,000 100,000 80,000 60,000 40,000 20,000 700 600 500 400 300 200 100 Total number of shops 2012 2011 2010 2009 2008 2012 2007 2011 Ladies Sandal 2006 2010 2005 2009 Leather casual Kids 2004 2008 2003 2007 2002 0 0 Sports Business Others 800 2001 Revenue [million yen] 140,000 Revenue per a shop Each segment has kept the stable growth. In contrast, Revenue per a shop has been decreasing in this ten years because of rapid growth in diversified channel such as shopping center and road side. For more expansion, the key is oversea demands.
  11. 11. SWOT analysis Strengths Opportunities 1. No. 1 share 2. Strong name brand 3. Collaboration with a lot of strong national brands 1. Dance booming 2. Running booming 3. Oversea demands 1. No private brand 2. Weak channel on Internet 3. No fashionable 1. Ecommerce company penetration 2. Aging society 3. Decrease of the expense to shoes Weaknesses Threats
  12. 12. Set scenarios (2013 to 2015) Optimistic  Take an opportunity to expand oversea growth  and domestic market is Opportunity growing more because of the acquisition of dance and running demands  Moderate Pessimistic Expand oversea  Grow in oversea, but business and domestic market is domestic is shrink sustainable growth  Japan market is shrink Japan market is stable but no and growth  E-commerce expansion  E-commerce Risk penetration and penetration and try takeover customers to to develop own EAmazon and ZOZO commerce site  Expand oversea  Expand oversea business and shift to ebusiness and shift  Focus on oversea shop targeted youngers to e-shop as well Strategy market and keep shop as well as shop business as shop business model to continue acquiring the to keep the market market share share
  13. 13. Cash flow projection 30,000 Net income [million yen] 25,000 20,000 15,000 10,000 5,000 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Pessimistic Optimistic Moderate Optimistic Moderate Total revenue CAGR 15.3% Total revenue CAGR 9.3% Revenue Domestic growth 9.7% Domestic growth 0.6% Oversea growth 32.3% Oversea growth 32.3% Net income Net income CAGR 15.3% Net Income CAGR 7.8% Pessimistic Total revenue CAGR 0.0% Domestic growth -5.1% Oversea growth 26.5% Net income CAGR 0.0%
  14. 14. Valuation DCF法による評価 ( 単位: 億円) 2010/2 Act ual Sal es 1, 135 2011/2 Act ual 2012/2 Act ual 490 43. 2% 645 56. 8% 403 35. 5% 242 21. 3% 1, 274 12. 2% 531 41. 7% 743 58. 3% 474 37. 2% 269 21. 1% 1, 408 10. 5% 597 42. 4% 811 57. 6% 539 38. 3% 272 19. 3% Tax 111 123 114 N O PAT Depreciation(+) のれんの償却(+) CAPEX(-) Working Capital(-) 持分法投資損益( +) FC F 131 19 145 22 159 26 2013/2 For ecast 2014/2 For ecast 2015/2 For ecast 2016/2 For ecast 2017/2 For ecast Terminal Value -100. 0% #DI V/0! 1, 940 #DI V/0! Gr oss i ncom e % of Sales selng and adm i st aton cost l i ni r i % of Sales O per i i atng ncom e % of Sales 【 営業利益調整項目】 ● ● ● ● 調整後営業利益 1, 940 7. 6% 0. 0% 0. 0% 0. 0% #DI V/0! #DI V/0! 0. 0% 0. 0% 0. 0% 0. 0% #DI V/0! #DI V/0! 0. 0% 0. 0% 333 20. 5% 0. 0% 365 20. 2% 0. 0% 389 20. 1% #DI V/0! #DI V/0! #DI V/0! #DI V/0! 0. 0% 389 20. 1% 365 389 0 0 135 41% 198 35 149 41% 216 45 158 41% 231 50 0 41% 0 0 41% 0 ▲ 75 ▲ 20 ▲ 75 ▲ 20 148 % of Sales 1, 803 11. 0% ▲ 65 ▲ 20 Cost of sal es 1, 625 15. 4% 333 % 成長率 166 186 389 158 41% 231 75 横置き ▲ 75 仮置き FCF割引現在価値 事業価値合計) FCF現在価値合計( 4,502 非事業用資産 繰越欠損金の節税効果 企業価値 12/2期実績 4,502 有利子負債 83 83 少数株主持分 ▲ 0.2 ▲ 0 未積立退職給付債務 その他 株式価値 4,419 75,294,000株 発行済株式総数( 自己株控除後) 一株当たり 株式価値 5,870円 4.74% 4.74% 0% 割引係数 1.00 0.95 2.00 0.91 3.00 0.87 141 152 162 0 231 NOPAT 割引率 WACC 永久成長率 0 231 Ter i Val m nal ue 4.00 0.83 1.00 4,871 4.00 0.83 0 0 4,048
  15. 15. Appendix 18 16 14 Age 12 10 8 6 4 2 0 歳 950 1,000 1,050 1,100 1,150 1,200 1,250
  16. 16. Appendix 1,600,000 1,400,000 1,200,000 Others 1,000,000 Children shoes 800,000 Sports shoes 600,000 Women shoes 400,000 Men shoes 200,000 0 2005 2006 2007 2008 2009 2010 2011
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