INTEGRATEDREPORT
2022
LifeWear,
Changing the WorldThe person in the photo is wearing
a loose-fitting and traditional
peacoat (¥9,990) and regular fit
straight jeans (¥3,990) made using
our Blue Cycle Jeans technology,
which reduces the volume ofwater required for final processing
by up to 99%.**Compared with our men’s regular fit
jeans in 2017 and 2018

INTEGRATED REPORT 2022
CONTENTS
04 MESSAGE FROM OUR CEO
16 FAST RETAILING STORY
24 BUSINESS SECTION
26 UNIQLO BUSINESS
44 GU BUSINESS
46 OUR GLOBAL BRANDS
48 SUSTAINABILITY SECTION
50	
C REATE NEW VALUE THROUGHPRODUCTS AND SERVICES

54 R ESPECT HUMAN RIGHTSIN OUR SUPPLY CHAIN

56	R ESPECT THE ENVIRONMENT
60	S TRENGTHEN COMMUNITIES62	S UPPORT EMPLOYEEFULFILLMENT

64	C ORPORATE GOVERNANCE
74 FINANCIAL AND NON-FINANCIAL
INFORMATION76	
F INANCIAL HIGHLIGHTS78	
N ON-FINANCIAL HIGHLIGHTS
80 M ESSAGE FROM OUR CFO
84	
F INANCIAL SUMMARY
86 HISTORY
88 INVESTOR INFORMATION
89 CORPORATE INFORMATION

Editorial Statement
Fast Retailing seeks to become the world’s No.1
clothing brand. With that aim, our Integrated
Report 2022 showcases the LifeWear (ultimate
everyday clothing) concept of our pillar UNIQLO
operation. It also explains the global support
network underpinning LifeWear and its future
growth potential, as well as our sustainability
activities. We hope this report deepens
understanding of the Fast Retailing Groupphilosophy of using the clothing business toimprove society and facilitates communication
with shareholders, investors, business partners,
employees, and all other Group stakeholders.

01THE FAST RETAILING WAY

Changing clothes.
Changing conventional
Change the world.

02

wisdom.
The Fast Retailing Group is a global developer of fashion
brands including UNIQLO, GU, and Theory that achieved
consolidated annual sales of ¥2.3011 trillion for the year
ended August 2022 (FY2022). The Group’s pillar UNIQLO
operation boasts 2,394 stores worldwide and FY2022
sales of ¥1.9290 trillion. Driven by its LifeWear concept for
ultimate everyday clothes, UNIQLO offers unique products
made from high-quality, highly functional materials, andoffers them at reasonable prices by managing everythingfrom procurement and design to production and retailsales. Meanwhile, our GU brand generated annual sales of¥246.0 billion, offering a skillful blend of low prices andfashion fun for everyone. The Fast Retailing Group
proactively seeks to minimize the environmental impact ofour businesses; build supply chains that protect humanrights, health, and safety; develop recycle-oriented
products; and help tackle social issues.
We will continue to offer people all over the world the joy,happiness, and satisfaction of wearing truly great clothes
that embody our corporate philosophy: Changing clothes.
Changing conventional wisdom. Change the world.
03

MESSAGE
FROM OUR CEO

04

MESSAGE FROM OUR CEO

A New Era of
GrowthTadashi Yanai
Chairman, President and CEO

In a world facing growing uncertainty, people seek comfort and security in their everyday
lives. LifeWear is simple, high-quality, long-lasting clothing created for regular people’s lives
and needs. More customers worldwide are starting to appreciate the LifeWear concept.
We have always focused on global development to fuel our corporate growth, andwe will do that even more intently going forward. I am particularly keen to accelerate
store openings in North America and Europe so we can become the world’s best-loved
apparel brand. We have now built the necessary platforms to consistently expand
business in North America and Europe. Everything we need to become a truly global
brand is now in place.
One operational reform we are working on is ensuring all managers—from ourheadquarters, national operations, and individual businesses—can cooperate, move freely
around the world, and transform management structures together. Our management
teams will be able to visit any front-line operation and help solve local issues by swiftly
evaluating problems, making decisions, and executing solutions. To that end, we havestrengthened our New York headquarters so it can serve alongside Tokyo headquarters
as a new pillar of Fast Retailing’s global strategy. The New York headquarters willproactively manage the R&D center, product development, merchandising, marketing, andother functions of the product-making process. It will work with the Tokyo headquarters tocreate new business frameworks that boldly embrace advanced ways of doing things,
including the use of global distribution networks and cutting-edge IT from the U.S.
Fast Retailing’s mission is to provide people worldwide with LifeWear as a sort of“clothing infrastructure” which offers greater comfort and a higher quality of life. Events
like the global pandemic, conflicts between major powers, and natural disasters havemade me acutely aware that our entire world is completely and inextricably linked. It isvital that, going forward, private companies and individuals join forces, transcending
national borders to create a more affluent and stable society for all. I want to continue ourconscientious creation of products you can trust, and to use our business to help build amore peaceful world.

05

MESSAGE
FROM OUR CEO

Becoming a Truly Global Brand
Breaking New Ground in North America and Europe
We achieved a record performance in FY2022, withstrong UNIQLO International operations generating
considerably higher consolidated revenue and profit.
By the end of August 2022, the UNIQLO International
network had expanded to 1,585 stores, nearly
double the 809 stores of UNIQLO Japan. We haveestablished consistently profitable operations inNorth America and Europe. This builds on the growthengine of markets including the Greater China region,
South Korea, and Southeast Asia & Oceania. This isan extremely positive sign for future growth.
In September 2022, I witnessed crowds ofcustomers visiting our stores in Milan, Madrid, andBarcelona, as well as the explosive popularity of our
06

products. I was delighted. Back in 1998, we sparked
a boom with our ¥1,900 fleece. The opening of our
first urban store in Tokyo in November of the same
year then generated a “UNIQLO fever.” We are now
experiencing a similar breakthrough in Europe.
I intend to channel even more effort into global
expansion going forward. We plan to accelerate
store openings, targeting 30 new stores annually
each in North America and Europe, 100 annual store
openings in the Greater China region, and 70-80
annual openings in Southeast Asia & Oceania,
double the current number. Our aim is to be the No.1
apparel brand, enjoying the loyal support ofcustomers worldwide.

The Best Positionin the Apparel Industry©MARTIN_MENDEZ©MARTIN_MENDEZ©MARTIN_MENDEZUNIQLO Gran Via store
We opened the UNIQLO Gran Via store on October 6, 2022.
Located on Madrid’s biggest shopping street, the store’sarchitecture boasts both modern and historical features. It is ourlargest store in Spain, with floor space of over 2,200m2.

Our prices make LifeWear clothing accessible toeveryone. However, we never compromise on
quality. We are the only apparel company that has
tirelessly, steadfastly, and constantly pursued thefundamental task of creating truly good productsthat everyone can afford.
There are various apparel brands, but I think weare the best positioned of them all. Despite ourdifferent price points, I think our brand position iscomparable with the world’s most expensive andexclusive brands. We have stores spanningcountries and regions across the world, including
Japan, Greater China, Southeast Asia, Australia,
Europe, and the United States. I strongly feel that
we are becoming a truly global brand that enjoys
widespread customer loyalty.
If you attend the launches of luxury brandcollections in Paris, London, and Milan, you will see
people from across the world of haute couture, but
the brand they wear most often is UNIQLO. Indeed,
UNIQLO is a favorite among those who only wear
the best products, have a keen interest in fashion,
and work with luxury brands.
UNIQLO LifeWear can be part of any style, at a
price that is affordable to everyone, in keeping with
our MADE FOR ALL commitment. As a brandappreciated for offering both great value for money
and great value in terms of product quality, no othercompany has a better position.

UNIQLO International Sales by Region (FY2022)

UNIQLO International Operating
Profit by Region (FY2022)
Greater
China region

Other
regions*
Europe¥160 billion

Greater
China¥540 billion

Japan¥810 billion

North
America¥110 billion

Approx.

31%

Approx.

53%
Approx.

South Korea,
S/SE Asia &Oceania¥300 billion

16%
North America/
Europe(excl. Russia)*South Korea, S/SE Asia & Oceania, Russia

07

MESSAGE
FROM OUR CEO

Human Resources for
Robust Management
Nurturing Future Managers
We are accelerating global growth by strengthening
local capabilities. Rather than decide everything inTokyo, I want individual markets to make decisions
based on local conditions. We have strengthened
our New York global headquarters to function intandem with the Tokyo headquarters, and we areshifting to a more decentralized work system thatencourages managers of national operations andindividual business functions to travel globally inorder to improve cooperation and communication.
Our core management team comprises experts
who have served the company for 20-30 years. Most
managers joined the company out of school, working

Sharing Fast Retailing’s management
philosophy and vision with all our
employees is essential for our corporate
growth. We hold FR conventions twice ayear. Including online participants, these
events are attended by roughly 8,000
store managers and head office
employees from around the world.

08

their way up from the front line in the shop. They arestrong individuals with a thorough understanding andpractical knowledge of our commitment to truth,
goodness, and beauty. They will become the trainersof future managers and manage the company as ateam. This is a source of reassurance for me.
We appointed Senior Executive Officers Daisuke
Tsukagoshi and Takahiro Wakabayashi, who bothhave a strong global management record, as
UNIQLO Global CEO and COO, respectively. They
will visit stores in each market, work with local
managers on swift business execution, and achieve
closer links between our stores and headquarters.

Our People Touch
Customers’ Hearts
I want our store employees to enjoy
their life at work, and to do that, wemust create environments where theycan experience personal growth daily.
This might sound a bit abstract, but it
all comes down to what drives you.
We must create groups of people
who want to grow as individuals, andinspire others to learn and grow.
Our sales training is also
management training. Even withexcellent technology and high-quality
products, and even if we meet customer demand,
we will never move anyone’s heart without thathuman touch.
In the past, every store employee’s job typicallyinvolved significant manual labor, but going forward
we intend to increase the number of highly skilled
professionals who specialize in sales. That means
significantly increasing salaries and completelychanging the way our store staff do their work. Eachsalesperson will be expected to acquire a wealth of

product knowledge and customer service expertise,so that they can really impress customers who visit
our stores. All employees will be expected to adopt amanagerial mindset and think hard about theexperience they should be offering customers. They
should communicate any ideas to headquarters for
immediate incorporation into our business process.
Our stores and headquarters will work closely
together to change the way we do business, with afocus on front-line information.

Sales of Major Global Apparel Retailers
Inditex, S.A.
Gap Inc.

FAST RETAILING CO., LTD.
H & M Hennes & Mauritz AB(trillions of yen)

5.0

4.0

3.0

2.0

1.0

0.0
(FY)

‘00

‘01

‘02

‘03

‘04

‘05

‘06

‘07

‘08

‘09

‘10

‘11

‘12

‘13

‘14

‘15

‘16

‘17

‘18

‘19

‘20

‘21

‘22

*Compiled from individual annual report data and calculated using exchange rates as of end of October 2022. (US $1=¥148.3, 1EUR=¥147.6, 1SKE=¥13.5)

09

MESSAGE
FROM OUR CEO

LifeWear: Clothing toLove for a Long Time
Wherever You Go in the World, LifeWear is Loved
Sustainability is an important issue in today’s apparelindustry. The biggest contribution we can make on
the sustainability front is to ensure our clothes areworn for as long as possible before being recycled.
In other words, the best way to be sustainable is bymaking clothing that satisfies customer needs andcan be enjoyed for a long time. LifeWear offers
classic, traditional designs and the functionality andcomfort that all great clothes should possess. The
garments serve as parts that can be beautifully
coordinated to suit different styles. Indeed, people

worldwide are embracing LifeWear because it
resonates with today’s values.
Even when collecting secondhand clothing to berecycled into new clothes, it is important to research
the best way to minimize the environmental impact.
We also channel considerable effort into initiatives
that encourage people to wear clothes for longer.
These include our RE.UNIQLO all-product recycling/reuse initiative, our development and sale of products
made from recycled materials, and our in-store
RE.UNIQLO STUDIO, which offers repair andupcycling services. The first
RE.UNIQLO STUDIO—opened in
September 2022 in our Regent Street
store in London, UK—proved to be
more popular than we expected. We
opened an additional studio in our
Orchard Road store in Singapore in thesame month, followed by a limitedperiod trial studio in our Setagaya
Chitosedai store in Japan in October.
We plan to proactively open more trial
studios worldwide in the future.

What is LifeWear?

1. Inspired by life’s needs
2. Ingenious in detail
3. Simple and adaptable to everyone’s style
4. Looking ahead to continuously evolve
5. The highest quality made accessible toeveryone

UNIQLO RIVOLI store (France)10

We have improved the comfort andfashion of our HEATTECH range, which
absorbs water particles released fromthe body while retaining body heat.
Our new seamless ribbed items comein multiple colors and can be worn as
innerwear or as part of a layered style.

11

MESSAGE
FROM OUR CEO

UNIQLO Ala Moana store
The UNIQLO Ala Moana store, located in the Ala Moana
shopping center on Hawaii’s Oahu Island, works withlocal artists and companies to create the Together in
Hawaii series. A portion of the proceeds is donated to
the Hawai‘i Foodbank.

Creating Stores that
Local Customers Will Love
Global is Local, Local is Global
Our physical stores are an especially important partof our business. I often mention the phrase “global islocal, local is global”—in other words, we need topursue global and local management in tandem. At
one point, few tourists were visiting Hawaii due to
COVID-19. Tourists generate a large percentage ofsales for Hawaii, so I was very worried. However,after we focused more attention on local customers
12

and local needs, our Hawaii sales have roughly
doubled. The same thing happened in Southeast
Asia. If all our stores around the world focused thissort of attention on local customers, we could
expand sales several times over.
As part of our social responsibility initiatives in
Hawaii, we worked with local artists to makeHawaiian-style shirts, T-shirts, shorts, and otheritems. Those deep-rooted community activities
generated higher sales despite the absence of
tourists. We operate our stores for our customers,
and so we should conduct business and create
products that will be popular locally and also havethe potential to sell globally. I hope we can spreadthat insight worldwide.
The principles of good management do notchange over time or by location. That said, eachcountry and region has its own culture, history, andlifestyles, and customers have different preferences

when it comes to color, size, design, silhouette, andso on. We will continue to respect local cultures,values, and history, while also unifying any businessprocesses that must be performed globally. We will
create optimal product lineups to suit individual store
needs, as well as encourage store employees tooffer information tailored to each individual customer.
We will deliver products customers really want, allover the world, whenever and wherever they wantthem. Those are the norms I want to establish across
our operations.

Communicating With Customers Through Our Stores
As a digital consumer retailing company, we combine
the digital and the human touch by seamlessly
connecting our retail and e-commerce operations
and encouraging information-driven interaction
between sales staff and customers. I have always
said that e-commerce is our main business, and I’m
not just talking about sales channels. We create
clothes based on information gathered throughe-commerce operations, and thanks to our
e-commerce platforms we can ascertain the exact
location and number of products we have as well as
their potential delivery method. E-commerce is theinfrastructure underpinning our quest to satisfy
customers by providing them with even better
products and better service.
The big advantage of e-commerce is its ability tooffer instant shopping opportunities anywhere, but
our physical stores offer a shopping experience thate-commerce cannot. What’s more, we must ventureout of our stores to engage with customers, explore
different regions, and develop shops with closer
community ties.

Operating stores is only meaningful if we canprovide experiences that make customers lookforward to shopping with us. In addition to our click
and collect service, which allows customers tocollect their online orders from a local store, somestores also offer home delivery services provided
by staff. Our popular in-store livestreams give staff achance to tell customers about a product’s greatfeatures or styling options. We intend to use
technology to ensure maximum customer
convenience, while also offering the ultimate in-store
shopping experience.

PICK UPOur UNIQLO LIVE STATION
streaming service enables customers
to purchase products they areinterested in while watching a live
broadcast. While they shop with us,
customers can communicate withUNIQLO staff in the studio.

13

MESSAGE
FROM OUR CEO

Our Responsibility to Provide“Clothing Infrastructure”
Strengthening the End-to-end Product-making Process
Gone are the days when we could simply create
and provide products we considered to be good.
We believe that everything stems not from selling
the products we make, but from making productsthat sell.
Fast Retailing’s strength lies in doing things that
only we can do. We manage an end-to-end clothingbusiness. We continue to pursue an ideal that has
been close to our hearts ever since our founding,
namely, to enable customers to buy the clothes theywant exactly when they want. The customer isalways our starting point. From there, we collect,collate, and process information, and develop our
products, all the while managing the whole processourselves, from production through distribution,
retail, and recycling.
In the future, we intend to extend our scope of

14

responsibility further upstream. We want to ensure
an even higher degree of traceability throughin-house checks of factory working environments,
third-party audits, and third-party certification all theway back to the procurement of raw materials suchas cotton.
Since its establishment in 1984, UNIQLO hasconstantly thought about how to ensure that westock the clothes that customers want in ourstores—in exactly the right amounts. Enabling all ourcustomers to immediately buy the items they want,
precisely when they want them, is an ideal tenet ofour business that we are close to realizing. Indeed,
we are determined to succeed in our mission ofproviding people worldwide with the “clothing
infrastructure” they need for a more comfortable andhigher-quality standard of everyday living.

UNIQLO employs over 100 refugees
and internally displaced persons inJapan, Europe, and the US. Particularly
in Germany and the Netherlands, weare actively hiring evacuees from
Ukraine. On October 27, 2022, we
opened our first Eastern Europe popup store in the Polish capital of
Warsaw, employing people evacuatedfrom Ukraine as store staff. We help
them rebuild their lives by providing
Polish language training, useful for jobs
in customer service and retail. This
photo shows Dariia, an evacuee from
Ukraine working at our UNIQLO
Kalverstraat store in Amsterdam.

Making the World an Even Better Place Through LifeWear
I always strive to incorporate truth, goodness, andbeauty in my daily life. I seek to do the same inbusiness. I think human values universally focus onwhat is true, what is good, and what is beautiful. And
this requires not just words, but actions as well. In
fact, nothing changes unless we take action. One
instance of Fast Retailing taking action was thelaunch of our PEACE FOR ALL initiative in June
2022. Many prominent figures agreed with what wewere doing, and volunteered to join our call for world
peace. They offered messages of peace that weturned into designs for T-shirts that are sold in ourstores. All profits (equivalent to 20% of the retailprice) are donated to international organizations
supporting people affected by poverty, discrimination,
violence, conflict, and war. T-shirts are an effective
way of expressing a wearer’s feelings—in this case,promoting nonviolence—and spreading a messageof empathy.

I feel we are at a critical juncture. I am always
asking what global companies like us can do for theworld and for Japan, and what momentum we could
generate if our over 100,000 employees worldwide
joined forces. I want to be an even better person,
and I want us to be an even better company. Good
people attract good people. Good companies attract
good companies. If we create excellent partnerships
worldwide and grow together, we can achieve things
we couldn’t do alone. Cooperation among theworld's private companies and impassioned
individuals has never been more vital. As head of aJapanese company, I want to contribute to astronger Japan, and encourage Japan to play a rolein this cooperative effort. Changing clothes.
Changing conventional wisdom. Change the world.
Our corporate statement epitomizes our bold spirit. I
will continue to strive to use our business to create amore peaceful world that can bring joy to all.
15

FAST
RETAILING
STORYLifeWear, Today and into the Future

16

FAST RETAILING STORYAt Fast Retailing, we have always had an importantmission: to improve people’s lives through clothes.
This mission is central to LifeWear, which features
simple, high-quality design and many ingenious
details. We hope to deepen understanding of how
LifeWear is inspired by everyday needs, and how it
is constantly evolving.
LifeWear epitomizes the philosophy that shapes
our actions and core aspirations. We are committed
to creating globally unique, highly functional,
beautiful clothing.

01
Our Inspiration, Our Aspiration

02
Why Do People Love LifeWear?

03
Creating a New Industry Through LifeWear

17

01

FAST
RETAILING
STORY

Our Inspiration,
Our Aspiration

PROGRESSThe development of Fast Retailing and LifeWear has been fueled by our
founding belief that great clothes should be simple, functional, andconstantly evolving in order to increase customer comfort. Here, we tell
the story of Fast Retailing’s journey so far and its aspirations for the future.

Beginnings
In 1984, we opened our first Unique Clothing Warehouse store in
Hiroshima. We made it convenient and easy to buy clothes, and only
assisted customers when requested. We wanted to create a clothing
store where picking up a casual outfit was as easy as buying a magazine
at a newsstand. We changed our name to UNIQLO in 1988.

Setting Up an SPA Business Model
In 1997, we created a specialty private-label apparel (SPA) businessmodel that encompasses everything from manufacturing to retailing. Thismodel helps maintain quality and secure the economies of scale needed
to keep prices down and create new value.

Changing Conventional Wisdom
Fleece had always been an expensive cold-weather item for outdoor use.
In 1998, our affordable ¥1,900 fleece range changed all that. Over theyears, we have created many products that revolutionized what clothingcan be, including HEATTECH, Ultra Light Down, and our wireless bras.

The Foundations of a Global Brand
In 2001, UNIQLO opened its first store outside Japan in the suburbs of
London, UK. In 2006, we opened our first global flagship store in SoHo,
New York, USA. Fast Retailing now boasts 3,562 stores worldwide (atend of August 2022).

Becoming a Digital Consumer Retailing Company
In 2017, we launched the Ariake Project to transform ourselves into a
digital consumer retailing company that gathers information and uses
it to improve products for our customers. We are currently reforming ourbusiness processes and supply chains to create an entirely new industry
that provides the world’s best clothing and clothing information.
18

UNIQLO TOKYO is our biggest
global flagship store in Japan.
It opened in 2020 in Ginza, oneof the world’s liveliest shopping
areas. We set up the LifeWear
Square on the ground floor todisplay seasonal products thatwill make customers’ lives more
comfortable and express LifeWear
concepts clearly and succinctly.

19

02

FAST
RETAILING
STORY

Why Do People
Love LifeWear?
Our founding mission was to make everyone’s lives better throughthe power of clothing. UNIQLO uses the phrase MADE FOR ALL toexpress this core LifeWear philosophy.

Our MADE FOR ALL Promise
In 2011, we issued our MADE FOR ALL declaration on
universal equality, clothing democracy, and local community
commitment. Our LifeWear concept was created from a culturethat actively embraces diverse values and every person’s
individual qualities.

Clothes to Suit Different Lifestyles
Incorporating customer feedback is the key to good productdevelopment. We challenge the notion that higher quality mustmean higher prices. We always strive to deliver high-quality
products at affordable prices to everyone, regardless of race,class, age, gender, religion, or ability.
UNIQLO offers a unique range ofcolorful down items that exude
individuality, including ourSeamless Down* jackets, ourUltra Light Down items, and our
Ultra Light Down Shiny Voluminous
Jacket, which is made from alustrous new type of material.
*There are seams in the underarm, sleeve,shoulder, and hood sections.

Creating and Utilizing LifeWear
We are always working to ensure that we “make, transport,
and sell only what is necessary.” We strive to achieve businessgrowth and sustainable societal practices in tandem. We
consider human rights in all production processes. With thehope of creating a world where clothing is never discarded, we
commit to reusing clothes that our customers no longer want
for new purposes.
21

03

FAST
RETAILING
STORY

Creating a New Industry
Through LifeWear
The graphic on the right shows the new business model we are working to create. The
LifeWear creation process (manufacturing, transportation, and retail) involves building
supply chains that customers can trust to consider environmental factors and human rights
with the utmost care. We also hope to realize a “circular society,” and to do that, we aretaking responsibility for our clothing even after it is sold. We do so by ensuring our LifeWear
lasts longer. In short, Fast Retailing wants to create a new industry that doesn’t just focus
on clothing itself, but is also deeply invested in the production, sale, and post-sale use ofclothes. We are offering an unprecedented new form of fashion to the world.

22

Turn into
new clothes

RecycleRaw materials
procurement

Product
designLivingIncorporate
opinions

Collect, sort

Continuing to utilize LifeWear

Creating LifeWear
Production

Customers

Logistics

Stores,E-commerce

Creating a sustainable supply chain
Respecting the diversity of all people

Reuse

Turn into new resources

RecycleCirculating value on a global scale
Supporting communities, contributing to society

23

BUSINESSSECTION
The Joy and Satisfactionof Truly Great Clothes

UNIQLO BUSINESSGU BUSINESSOUR GLOBAL BRANDS

24

The joy of choosing clothes is likethe joy of choosing the perfectbouquet of flowers. Plants andclothes both serve to brighten andenrich people’s lives. This person is
wearing a Smooth Stretch Cotton
Crewneck Long-sleeved T-shirt(¥1,500), which feels soft andsmooth on the skin, together with
our Baggy Jeans (¥3,990), which
are casual but flattering.

25

UNIQLOThe Secret to UNIQLO Success
01

LifeWear Resonates
Worldwide

UNIQLO’s LifeWear is simple, high-quality clothing,inspired by everyday needs and constantly evolving.
LifeWear appeals to so many people and enjoys suchbroad demand because the clothes themselves are not
the main point—they serve as parts that can bebeautifully coordinated to suit all different styles. The
creation of LifeWear always starts with our customers. By
reflecting their opinions in our products, we can perfect
the minute details of our ranges, achieve more
comfortable fits, and swiftly develop items that reflect
new and changing lifestyles. LifeWear continues to evolveand win new support worldwide because it fulfills evershifting customer needs.

03

World-class Materials and High
Quality at Reasonable Prices

UNIQLO’s strength lies in offering clothing made withhigh-quality materials at reasonable prices. We negotiate
directly with global producers and place long-term orders
for superior materials such as Supima® cotton, merinowool, and premium linen. Such economies of scale enable
us to secure a more favorable supply of materials than ourcompetitors at greatly reduced costs. The high quality of
UNIQLO LifeWear is also underpinned by the strong trust
built over many years with our partner factories. Our
production department communicates closely with thesefactories so we can immediately address any qualityrelated requests from customers and make improvements.
26

02

Creating Demand withNew Functional Materials

Working with world-leading fiber manufacturer Toray
Industries, UNIQLO has created many highly advanced,
highly functional products. These include our HEATTECH
range, which both retains and generates heat, as well as
our Ultra Light Down garments, which are made with
dense material that keeps down in place. Other innovations
include our versatile, cooling AIRism material, which is
being used in an increasing variety of products, and our
BLOCKTECH garments with windproof coating. We havespent years perfecting our advanced materials, and theycannot be replicated by our competitors. Developing
clothes with new functionality can change customers’
lifestyles and create fresh demand.

04

Linking Customers, E-commerce,
and Stores for a Comfortable
Shopping Experience

We continue to integrate our e-commerce and retail store
operations to create a more convenient shopping
experience for our customers. Customers can collectonline orders from nearby stores or order any item
currently out of stock at their local store for delivery
anywhere. Our popular livestream service encourages
customers to buy products they are interested in both
immediately and directly. UNIQLO has a strong global
store network, and we use our scrap and build policy toopen new stores in optimal locations. Our online-to-offline(O2O) business is proving to be a strong engine of growth.

UNIQLO
BUSINESS MODELPRODUCTION

SALES

Warehouses
andlogistics

Partnerfactories

Inventory
controlCu

stom er Center

Stores andonlinebusiness

Production
department

CUSTOMERS
Development andprocurementof materials

Production
planning

Materials
manufacturers

Merchandising

R&D(Designers/
Patternmakers)

Ma

e
rk

t in

g

PLANNING

27

STARTPRODUCT
CONCEPT

SELECT AND
PROCURE MATERIALSDESIGNSAMPLESPLANNING

BUSINESS SECTION UNIQLOCUSTOMERS

A product planning meeting at our Ariake Headquarters

28

Research & Development(Designers/Pattern Makers)

Merchandising(Product Planning)

Development andProcurement of Materials

An important part of R&D at UNIQLO isdeveloping products that respond to
customer requests, while also identifying
emerging needs. Accordingly, our UNIQLO
R&D centers constantly incorporate
customer opinion while researching global
fashion trends and new materials.
One year before a product’s intended
launch, the R&D department holds a
concept meeting with a diverse range ofrepresentatives from the merchandising,marketing and materials development
teams to determine the right designconcept for each season. Our designers
then begin the process of preparing
designs and refining samples. Even after adesign is decided, its color and silhouette
can be refined multiple times before it istruly finalized.

The merchandising team plays a vital rolein the product creation process, fromproduct planning through production.
Deciding product lineups and volumes
through the year is an important aspect ofthe department’s job. To do this,merchandisers communicate closely with
R&D, the production department, andother divisions to determine the designs
and materials required for each season’s
products. They also manage the launchesof our strategic products in close
cooperation with other key departments.
Many UNIQLO products are
manufactured in lots of approximately
1 million units, and the merchandising
department monitors the latest salesconditions, issuing instructions to either
increase or decrease production during theseason—a key responsibility of the team.

UNIQLO can secure stable, high-volume
supplies of top-quality materials at low
cost by negotiating directly with materials
manufacturers worldwide. Utilizing our
economies of scale enables us to achieve
more favorable terms than any othermanufacturer. The materials used for ourcore items are particularly important. Ourin-depth research and experimentation
generates improvements in thefunctionality, feel, silhouette, and texture of
our clothes. For example, we work closelywith Kaihara Corporation to source denimto specific spinning standards and dyeing
specifications. We also partner withworld-leading synthetic fiber manufacturer
Toray Industries to create innovative newfibers and materials such as the ones
found in our HEATTECH range.

FINALIZEDESIGNSSET PRODUCTION
VOLUMESSTARTPRODUCTION

PRODUCTION
Production Department
We assign production department
members, who manage product quality
and production progress, and Takumi(skilled artisans) to production offices inShanghai, Ho Chi Minh City, Dhaka,
Jakarta, and Bengaluru (formerly
Bangalore). Production officerepresentatives visit factories weekly toresolve any issues. The production
department swiftly addresses any quality
concerns raised by customers andimplements improvements if required.
UNIQLO Production Offices

Dhaka
Bengaluru

Shanghai

Ho Chi Minh City
Jakarta

UNIQLO Takumi Teams

A UNIQLO fabric-making factory

Production Network
UNIQLO does not own any factories. Instead, we outsource the production of almost
all our products to factories outside Japan. We have built strong relationships of trustwith our partner factories over many years, and hold annual conventions to promotedialogue with factory managers. Our monitoring programs at our sewing factories andmajor fabric suppliers help to prevent human rights violations and to ensure goodworking environments and management frameworks in the making of our products.
When required, we help factories implement improvements. UNIQLO continues to
produce high-quality products by maintaining win-win relationships with partner
factories. As we expand our global sales, we continue to grow our partner factory
network in countries like Vietnam, Bangladesh, Indonesia, and India.

“By visiting factories and providing
technical advice, Takumi establish
thorough quality control and a strong
relationship of trust. I offer instruction ondyeing technology at partner factories, andthis can encourage workers to embrace a
new production management philosophy
and to improve their factories. I am proud
to be passing on expert Japanesetechniques to the next generation.”

Dyer Takumi

Kazuaki Iida
29

AIR TV AND WEB
COMMERCIALSSTART ADDITIONALPRODUCTION

BUSINESS SECTION UNIQLOSALESSHIP TO INDIVIDUAL
COUNTRIESUNIQLO Asakusa store (Japan)

30

Inventory Control

MarketingStores

The inventory control team works to
improve management efficiency bysupplying inventory that reflects the sales
capabilities and product sales of eachindividual store. The team monitors weekly
sales and stock at each store anddispatches inventory to fulfill orders andmaintain appropriate inventory levels. At
the end of each season, merchandisers
and the marketing department coordinate
sales promotions and help reduce residual
inventory.

Each season, UNIQLO conducts
promotional campaigns for core products
such as HEATTECH, Ultra Light Down,
AIRism, and Bra Tops. During the
campaigns, UNIQLO advertises the
products’ unique qualities and features
through TV commercials and online ads.
In Japan, we use UNIQLO apps, email,social media, and flyers delivered withnewspapers to notify customers about
limited-period discounts, typically of
20-30%, on new seasonal ranges.

UNIQLO Japan had 809 stores (including
10 franchise stores) at the end of August2022. UNIQLO International had 1,585
stores, roughly double the number ofstores in Japan (Greater China region:
996, South Korea: 122, Southeast Asia &Oceania: 293, North America: 59, andEurope: 115).
We have started accelerating store
openings not only in Greater China andSoutheast Asia, but also in North America
and Europe.

Flyer delivered with national newspapers

TV commercial

UNIQLO roadside storeIncorporate customer feedback
to make even better products

IN-STORE SALES AND
E-COMMERCE CUSTOMERSCUSTOMERSPRODUCT
CONCEPT

Knitwear Collection

UNIQLO’s Knitwear Collection

Your S tyle Sea rch Engine

UNIQLO Regent Street store (UK)

E-commerce
Our e-commerce operation is growing increasingly important as
more customers shop both online and in stores. In FY2022,
online sales accounted for approximately 16% of total sales(16.2% in Japan, 20% in the Greater China region, North America
and Europe, and 10% in Southeast Asia & Oceania). We intend tofurther expand integrated store and e-commerce services thatenable customers to shop conveniently when and how it best
suits them, and to strengthen our role as an information-sharing
platform through UNIQLO LIVE STATION and other services.

Customer Centers
Our customer centers analyze huge volumes of customer
requests. Customer feedback helps us improve core products,
develop new products, and enhance services. We have also
adopted the latest AI, chatbot, and voice-recognition technology,
enabling convenient communication with our customers throughphone, email, chat, and other channels. In FY2022, we revised
the size range of our wireless bras and started selling Ultra Light(previously known as Kando) jackets and pants for women basedon customer feedback.
UNIQLO RIVOLI store (France)

31

GLOBAL
R&D

BUSINESS SECTION UNIQLOThe Star of LifeWear:
The Person,
Not the Clothes
Yukihiro Katsuta
Group Senior Executive Officer,
Fast Retailing Group General Manager,
Global Product Division and Officer
in Charge of R&D, UNIQLO CO., LTD.
Joined Isetan in 1986. Seconded to Barneys New York
head office, with which Isetan had collaborative ties, in
1992. Seconded to Barneys Japan in 1994. Moved to
Polo Ralph Lauren New York head office in 1998 and to
Bergdorf Goodman in 1999. Since joining Fast Retailingin 2005, he has been in charge of R&D at UNIQLO.

Creating a Collection of Masterpieces
UNIQLO is often described as basic clothing, but “basic”
is a profound concept that can express a great deal
about the wearer. So we have to offer unbeatable
quality and design to customers looking to selectclothes to suit their particular style. The ideal scenario is
to develop a collection of products that offers every
single customer a way to create their own style andpersona. If we can do that, we will be invincible.
The design process intrinsically involves thinking
long and hard about what you need to experience, feel,
reinterpret, or utilize to achieve your design. You
organize and build on the information you have, andconsider what kind of changes or future realities you
could bring about by combining your knowledge with
the information you currently have available. And intoday’s world, where information is relatively easy toaccess, you must probe and explore your designs tothe core in order to create an ultimate masterpiece.
32

When UNIQLO collaborates with top designers andcreators, I am always impressed by how deeply
thoughtful they are throughout the design process. The
precious experience UNIQLO gains by cooperating withthese top creators serves as an inspiration, andprovides hints for enhancing our own brand power. The
LifeWear concept of durability, quality and simple
designs that can stand the test of time was createdfrom this long-amassed experience.
The information we receive from our stores is
extremely important. You can instantly see what isselling well by simply looking at the data. However,sometimes you have to be in the physical store tounderstand the essential elements of customer
psychology. Why did they buy something? Why didn’t
they buy something? What do they actually want? I think
we can enhance the persuasiveness of our designs bytalking with store managers and staff and using theirinformed input to create targeted and tailored output.

Dynamic Proposals From a Global Brand
Previously, fashion trends tended to start in Europe andthen pass through New York to Japan over the courseof the next year. Today, information spreads
simultaneously around the globe on social media,
sparking new trends everywhere. We are striving tobuild stronger, globally competitive R&D frameworks so
we can reflect any new kernels of information—such aschanges in customers’ tastes or preferences—in our
products in a timely way. That means assigning
designers and pattern makers, who are mainly locatedin Tokyo, to our product development centers in
Europe, the United States, and Asia, as well as hiring
local talent. If we can harness the nascent opportunities
found in customer feedback and grasp market needs
more accurately, we will be able to turn information into
commercial products faster than our competitors. We
can also develop products more swiftly by encouraging
designers and pattern makers to communicate directly
across time zones.
UNIQLO’s store network extends worldwide. We
can present swifter, more dynamic proposals by having
creators living in Japan, Asia, Europe, and the UnitedStates who experience local trends firsthand andwitness change with their own eyes. We then turn thatknowledge into products that are advertised and soldworldwide, giving customers the excitement of constantaccess to the clothes they really want.
Truly great clothes offer both fashion and functionality.
If you can wear an item every day, you might want twoor three in different colors. That’s the kind of clothing we
aim to create. Each year, I want to create indispensable
basic items that are simple, high-quality, and longlasting. I want to create “today’s classics.”

Worldwide R&D Centers

LONDONPARISTOKYO
SHANGHAINEW YORKLOS ANGELES

We visualize seasonal and theme-based product development plansacross six global centers. We share product overviews globally andpursue product development in each center.

UNIQLO and MARNIUNIQLO and MARNI is a joint
collaboration with Italian luxury fashion
brand MARNI. The collection combines
MARNI’s unique shapes and colorfulexpression with UNIQLO’s rich artisanry.

33

TOPICS

LifeWear
Simple made better.

Simple items that incorporate design features that will make you want to wear them forever.
We want to tell you about LifeWear—the materials,
the designs, and the functionality that enhance your comfort.

BUSINESS SECTION UNIQLOSWEAT PULLOVER HOODIE
A vintage feel with a modern fit, thanks toenhanced materials and a refined silhouette.
It is specially designed to not leave lint behind.

1

POINT - 1

Elegantly Contoured Hood
The inside of the hood is made from a
voluminous raised-nap fabric for abeautifully contoured look. The cottonpolyester blend interior fabric dries quickly.

2

POINT - 2

Amazingly Smooth Front and Back
Compact yarn means smoother fabric andless fuzz. This creates better durability, so
the product stays looking good for longer.

Normal Cotton Yarn

Compact Yarn

POINT - 3

Various Ribbing Improvements
Repeated refinements have achieved theperfect balance between sleeve and cuff.
The finer ribbing gently hugs the wrist, for a
premium look with high durability.

34

3

ULTRA LIGHT DOWN JACKET
Amazingly light, warm, and easy to carry in the included
pouch. Repeated enhancements have resulted in ourlightest, softest feel ever.

Approx.

268*
g

The weightof an apple*2022 Ultra Light Down Jacket (L size, black) used
for measurement. Excludes carrying pouch.

POINT - 1

Premium Down,
Warm and Light
Our high-quality down offers
outstanding heat retention andfeatures an optimum balance ofdown and feathers. Surprisingly
light, yet seriously warm.

POINT - 2
FEATHER 10%

PREMIUM DOWN 90%

Surprisingly Light, and
No Down Pack

NO DOWN PACK

Special high-density nylon fabriccreates a two-layer structure thateliminates the need for an inner
down pack to keep down in place,reducing weight and shedding.

35

UNIQLO EXPANDS
GLOBALLY

BUSINESS SECTION UNIQLOSTOCKHOLM

JAPAN

809
36

STORESGREATER CHINA

SOUTH KOREA

996

122

STORESSTORES

UNIQLO delivers LifeWear to people worldwide.
UNIQLO International increased its store numbers by 83
to 1,585 in the year ending August 2022. We intend todevelop UNIQLO into a brand that is loved bycustomers everywhere.

Global Total(As of August 31, 2022)

2,394

STORESSHANGHAITOKYONEW YORKHO CHI MINH CITY

SOUTH ASIA, SOUTHEASTASIA & OCEANIANORTH AMERICAEUROPE

293

59

115

STORESSTORESSTORES
37

BUSINESS SECTION UNIQLOGREATER CHINA

Strong Management for
Future Growth
8

11

25

8

68
21

2

20

13

46

3
3

44

29

32
33

19

28
7
17

72

133 30

17

87

15
29

5

38

83
19

Hong Kong

69
Taiwan897
MainlandChina

In FY2022, revenue increased but profit
declined sharply in the Greater China
region (Mainland China, Hong Kong,
and Taiwan) due primarily to the spreadof COVID-19 and the required
temporary closure of stores in mainland
China. Full-year revenue totaled ¥538.5
billion (+1.2% year on year) andoperating profit totaled ¥83.4 billion(−16.8%). However, fourth-quarter
revenue rose and profit reboundedsignificantly as consumption picked up
once lockdowns were eased in
Shanghai on June 1. Our diligent efforts
to strengthen marketing and bolster
sales frameworks and store displays in
preparation for the resumption of
economic activity helped us respondsuccessfully to increased customer
demand. Despite continued toughmanagement conditions, we pressed
ahead with active store openings,

UNIQLO SHANGHAI

adding 89 new stores in FY2022.
Recently, our efforts to strengthenmarketing have increased support for
our LifeWear across a broad range ofcustomers. This encouraged morecustomers to visit UNIQLO to buy
clothes after lockdowns were lifted.
The mainland China market ishuge, so I am convinced we cangenerate considerable growth going
forward. We are working to strengthen
our business foundation to supportconsistent double-digit growth inannual sales. We are taking solid
action in various marketing-relatedareas to build even greater affection
for our LifeWear concept, holding
exhibitions in 15 major cities inmainland China from FY2021 andconducting store-linked branding
campaigns. We are developing new
products that sell well in mainland

China and globally by proactively
proposing different designs, materials,
and colors. We are also opening
stores in China’s Tier 3 and Tier 4
cities with the aim of promoting
growth over the next 10 to 20 years.
Sales per store may still be low there
compared to cities like Beijing andShanghai, but they harbor huge
growth potential.
We owe our competitive
advantage to our many talented
employees who understand andimplement UNIQLO’s management
philosophy. As we continue to open
roughly 100 new stores each year, weneed to enhance the training of
capable personnel. I am confident that
we can solidify our position as a No.1
brand in the Greater China region bysteadily solving any issues that arise
and firmly seizing opportunities.

Ning Pan
CEO, UNIQLO Greater China
Group Senior Executive Officer,
Fast Retailing Co., Ltd.

39

BUSINESS SECTION UNIQLOUNIQLO SOHO NEW YORKNORTHAMERICAFirst Full-year
Profit Spurs an Accelerated
Growth Phase
40

UNIQLO North America generated
significantly higher revenue and profit
in FY2022. The operation also
recorded its first full-year profit since
opening its inaugural store in New
Jersey in 2005. This is thanks tocommitted branding, aggressive
social media use and othermarketing, and proactive local
community initiatives, including
hurricane disaster aid. Affinity for
UNIQLO increased 1.7 times
compared to 2020, with the brandproving especially strong in New Yorkafter 15th anniversary celebrations for
UNIQLO Soho New York store began
in September 2021.
UNIQLO has also benefited fromchanging North American customer
values in the era of COVID-19. Local
support for our reasonably priced,

high-quality, and long-lasting LifeWear
has increased. Sales of signature
UNIQLO items such as T-shirts,
fleeces, and AIRism rose significantly
year on year. Our Super Non-Iron
Shirts, Smart Pants, and Ultra Light
Down jackets now rank among thenation’s top-selling UNIQLO items,
and North American customers are
increasingly looking to UNIQLO foreveryday wear.
UNIQLO North America now has
a solid organizational structure
capable of generating consistentprofits. This is due to stronger
marketing, which has helped us
greatly reduce discounting rates; theclosure of unprofitable stores; andmore efficient store management,
which has greatly reduced cost ratios.
We’ve prepared the foundations for a
new accelerated growth phase, and I
want to set a five-year target of ¥300
billion in sales and 20% operating
profit margins. We will open roughly
30 stores annually to reach 200
stores by FY2027 by opening moreglobal flagship stores on the east andwest coasts, where we already havea presence, and accelerating store
openings in high-quality shopping
malls and other locations.
It is important to build a cohesive
organization so we can tackle
challenges with greater speed. I wantto create a passionate group withstrong teamwork and high aspirations,
recruiting, educating, and selecting
talented human resources irrespectiveof race, nationality, age, or gender. I
also intend to further promote oursustainability activities so local
customers can learn more about our
corporate values and we can becomea truly beloved brand in
North America.

Daisuke Tsukagoshi
CEO, UNIQLO North America
Group Senior Executive Officer,
Fast Retailing Co., Ltd.

16
Canada43
US

UNIQLO 5TH AVENUE

41

EUROPE

BUSINESS SECTION UNIQLO

Rising LifeWear Popularity andFaster Store Openings

Taku Morikawa
CEO, UNIQLO Europe
Group Senior Executive Officer,
Fast Retailing Co., Ltd.

Sweden3Denmark

15

1
2 Netherlands

Belgium

3 10 Germany
グラフ

UK

26
France

5
Spain

42

Italy

1

45
ロシア

We opened our first store in London
in September 2001. Today, UNIQLO
Europe (excluding Russia) is reporting
large rises in revenue and profit, withsales totaling approximately ¥130.0
billion, operating profit reachingroughly ¥15.0 billion, and theoperating profit margin rising to 12%
in FY2022. We intend to maintain thismomentum and achieve ¥500 billion
sales and a 20% operating profit
margin by FY2027.
The widespread success of ourregional flagship stores underpinned
this strong performance. Many ofthese regional flagship stores arelocated in historic buildings. Our
UNIQLO Regent Street store houses
UNIQLO and Theory in a beautifully
renovated 19th century building. The
store also focuses on sustainability
by offering repair services, including
custom repairs using Japanese
Sashiko techniques, in its RE.UNIQLOSTUDIO. Regional flagship storesshowcase important information
about UNIQLO’s products,
sustainability activities, and corporate
values. Opening more flagship storesshould spread the word acrossEurope, creating a positive cycle ofbrand awareness.
European customers are
discerning when it comes to clothes.
UNIQLO’s commitment to truth,
goodness, and beauty as well as our
LifeWear concept resonates with

European customers, which has
increased their affinity for the UNIQLO
brand and fueled strong FY2022
performance.
The COVID-19 pandemic has
increased our number of new online
customers. App membership is up.
First-time UNIQLO buyers havebecome repeat customers and also
started to visit retail stores, driving
strong store sales. Meanwhile,
e-commerce sales have roughly
doubled compared to pre-COVID sales
three years ago, now constituting
approximately 20% of total sales.
Our operational growth is
supported by young hires fromvarious parts of Europe who

UNIQLO REGENT STREET

understand their local cultures andclimates and can compile productranges and services that matchcustomer needs. Training these
personnel to be senior managers will
enhance our growth potential.
We intend to focus on operational
expansion and accelerate regionalflagship and other store openings inmarkets such as Eastern Europe andmajor cities where UNIQLO has no
current presence. I want to grow
UNIQLO into the most-trusted brandin Europe by perfecting products
tailored to customer needs. This is
crucial to UNIQLO becoming theworld’s No.1 apparel brand.

The 1,900m2 UNIQLO Regent Street regional flagship store is housed in a beautifully renovated historicbuilding in one of London’s iconic shopping areas. The store works with many different local
businesses to serve the community.

43

GU
Fashion Fun at Low Prices:Time for Global Expansion

Osamu Yunoki
CEO, G.U. CO., LTD.
Group Senior Executive Officer,
Fast Retailing Co., Ltd.

GU offers fun fashion for everyone, recommending
new products to customers each month and offering
subtle variations in looks and styling. Given thenature of the brand, any delay in product delivery
can lead to lost sales opportunities. In FY2022,
lockdowns and other restrictions in mainland China
severed overseas production and distribution
channels, resulting in delayed product deliveries anda decline in full-year revenue and profit. However, wehave used this year to improve our product lineups.
By reducing product numbers, increasing productsthat incorporate mass fashion trends, and pursuingmore effective marketing, we were able to create hit
products such as color slacks and T-shirts withsweatwear styling details. As supply chains gradually
return to normal, we can greatly expand GU
performance in FY2023 by responding flexibly inways that are less vulnerable to external factors.
On October 7, 2022, we opened a GU pop-up
store in SoHo, New York, USA. With space in the
270 m2 store being tight, we selected products that44

incorporated global mass fashion trends and asked
our uniquely skilled ”GU Osharista” (a combinationof the Japanese word oshare, which means
fashionable, and the word fashionista) to suggest
special New York styling options. The store got off toa good start, with sales exceeding expectations. We
did experience shortages of strong-selling items andissues with product lineups and marketing, so ourexperience here is proving to be a key milestone inensuring that GU meets global standards.
Looking ahead, we intend to leverage GU’s
“fashion fun for everyone” concept to generate rapid
growth in Japan and the Greater China region andthen expand globally in the United States, Southeast
Asia, and finally Europe. Ultimately, I want to expand
GU’s store network and e-commerce operation toachieve ¥1 trillion in annual sales. We will acceleratecity-center, shopping-mall, and roadside store
openings and increase the number of joint UNIQLO
and GU stores to harness customer-generatingsynergies. We hope to open as many storesworldwide as UNIQLO and to become an
indispensable pillar of the Fast Retailing Group. I
think GU is traveling the same path that UNIQLO
took—only much, much faster.

GU New York Soho store, a pop-up store opened in SoHo,
New York, USA

45

GLOBAL BRANDS

Contemporary Fashion From New York
Theory is a contemporary fashion brand launched in New York in 1997. The Theory
brand offers perfectly fitting and elegant designs and styling. Its acclaimed comfort
stems from the use of superior materials. In September 2022, Theory launched acollaboration with visionary Dutch fashion designer Lucas Ossendrijver.
46

Top-quality Clothing for Everyday Living
PLST offers everyday clothing with a smart feel that is perfect for going to workor going out. PLST boasts an abundance of ingenious design, from stunningsilhouettes and patterns to extremely comfortable materials, and it offers highquality clothing at reasonable prices.

The Allure of French Esprit
Comptoir des Cotonniers is an affordable luxury brandfounded in 1995 in France. With the belief that contemporary,sophisticated femininity is the ultimate allure, Comptoir desCotonniers is known for its high-quality materials and tailoring,attention to detail, and careful finishing. It offers timeless,stylish items that can be lovingly worn for a lifetime.

A Graceful Brand From France
That Celebrates Individuality
Princesse tam.tam is a French brand whose “lingerie thatlets personality shine through” resonates with countless
women. Princesse tam.tam’s basic concept celebrates thenatural beauty of the unadorned body. The brand is known
for its original prints and vibrant colors and offers a wide
range of lingerie, loungewear, and other apparel.
47

SUSTAINABILITYSECTION
Enriching People’s Lives,
Enriching Society

OUR SIX KEY AREAS OF FOCUS(Material Areas)

1 Create New Value Through Products and Services
2 Respect Human Rights in Our Supply Chain
3 Respect the Environment
4 Strengthen Communities
5 Support Employee Fulfillment
6 Corporate Governance48

We use technology developed with
Toray Industries to recycle down
and feathers extracted from
customers’ secondhand UNIQLO
items. This is the first step in ourquest to transform items lovingly
worn by our customers into brandnew clothes. Photo: Models
wearing recycled down jackets
made from 100% recycled down
and feathers (¥7,990).

49

MATERIAL AREA

1Create New Value ThroughProducts and Services

Pursue timeless designs from the planning stage based on our LifeWear concept. Create simple,
high-quality, highly functional clothing that can be worn for a lifetime.
Reduce environmental impact by showing customers the joy of utilizing clothes for a long time.
Develop circular products recycled from donated secondhand items, and repair/refashion clothes at
RE.UNIQLO STUDIO.
Improve clothing functionality and quality, while also aiming to solve social, environmental,
and other issues, thereby creating new demand.

SUSTAINABILITY SECTION MATERIALITY

Ultimate Customer Satisfaction
We collect feedback to increase customer satisfaction. In addition,
we conduct regular surveys to monitor customer satisfaction
around the world and set up customer centers in all markets
where we operate UNIQLO stores. We also improve our products
and services based on feedback from valued customers collected
through our stores, e-commerce operations, and customer
centers. The amount of customer feedback we receive is growing
year by year thanks to efforts to expand our e-commerce app
membership base. UNIQLO received approximately 35.3 million
comments globally in FY2022, which we used to design products
and services that will make our customers feel truly satisfied. On
our UNIQLO UPDATE website, we introduce products that havebeen updated or improved based on customer feedback. We
also identify the causes of customer dissatisfaction and urgently
work to prevent similar issues.

Customer andstore feedback(FY 2022)

Approx.

35.3

millioncomments

From customers:

Approx.

27.8 million

From stores:

Approx.

7.5 million

Extra Fine MerinoI’m worried it will lose its shape after
washing. I wish it was more durable.
The new double-ribbed collar looks casual andmaintains its shape after washing. Improved
hem and cuff ribbing means customers can feel
comfortable putting it in the washing machine.
On our UNIQLO UPDATE website, we tellpeople about specific feedback (requests,
complaints, etc.) received—for example, via
our customer center—and what we did toimprove products based on that feedback.

UNIQLO UPDATE
https://www.uniqlo.com/us/en/
contents/feature/update/283/

50

Front-opening InnerwearI want to see more comfortable
front-opening innerwear in a wider
variety of colors.
For some people, innerwear can be hard to pullover the head. We’ve developed comfortableinnerwear that’s easy to get in and out of.

RE.UNIQLOThe RE.UNIQLO STUDIO in our UNIQLO Regent Street store (UK)RE.UNIQLO STUDIO:
Helping People Wear Clothes for Longer
The UNIQLO Regent Street store in London, UK is located in a
beautifully renovated historic 19th century building. The
RE.UNIQLO STUDIO in the photo was created in September
2022, and retains the Art Deco style of the barbershop which
formerly occupied the basement level. Trained UNIQLO staff
repair holes or tears in long-loved down, denim, and knitwear
items. Small holes are repaired so they don’t show, but to largetears we can apply colored cloth to create an individual flourish.
We work with Studio Masachuka, known for its Japaneseclothes-making techniques. They have a tailoring service inLondon that uses traditional Sashiko stitching techniques tomodify or customize clothes in amazing ways. Inspired by the
repair/refashion support offered by our store in Berlin, Germany,
where interest in repairing clothes is high, we have now
expanded the initiative to UNIQLO stores worldwide. We opened
the Berlin repair studio in August 2021. In 2022, we opened
studios in UNIQLO Soho New York store in January, ourSingapore Ang Mo Kio store in March, and our Taiwan UNIQLOTAIPEI store in July. In October, we started a trial studio at our
Setagaya Chitosedai store in Japan. With a view to global
expansion, we intend to open trial studios worldwide. People
can experience the joy of giving their well-loved clothes new life,
and the pleasure of now having a custom, one-of-a-kind item.
For us, this is just another aspect of LifeWear.

RepairService

Careful repairs enable customers to wear theirfavorite clothes for longer
Upcycling
Service

Refashioning clothes using traditional Japanese
Sashiko sewing techniques

51

TOPICS

Innovation of Fleece Jackets
Fluffy Fleece Jackets Made From Plastic Bottles
We utilize yarn made from used plastic bottles to make new clothes.
This reduces waste and petroleum use by recycling limited resources.
UNIQLO has embarked on a new way of making clothes.
We use thermoplastic polyurethane(TPU) material made from recycled
mobile phone parts, etc., for thepull on the men’s coil zipper.

SUSTAINABILITY SECTION MATERIALITY*Photo: Fleece Full-zip Jackets

The recycled fleece
certification label is also
made from 100% recycled
polyester material.

Recycled
polyester

100
500ml
PET bottle
Takes approx.

19*Men’s L size/Assuming one 500mL PET bottle = 25g
Calculations from “Weight-reduction Targets and Results for
17 Major Types of Designated PET Bottles,” Fiscal 2020
Annual Report (p. 6), The Council for PET Bottle Recycling

52%

Used for the
body fabricFluffy fleece fabric madefrom 100% refined recycled
polyester offers both a soft
feel and vivid color.

bottles*Clothes made from recycled polyester

Collect PET bottles

Crush and wash

Turn into recycled
polyester chips

Make yarn

Ready to wear!

Highlight #1
Creating a 100% Recycled
Fabric Material
UNIQLO’s 2022 Fluffy Fleece Full-zip Jacket is theresult of an amazing evolution. We are now able
to make the main fabric from 100% recycledplastic bottles. Making recycled polyester involves
crushing, washing, and dissolving used bottles tocreate pure white chips. These are then dissolved
and spun into fine yarn for weaving fabric, which
is sewn to make the fleece jacket. We performed
numerous tests to achieve fleece’s renowned
comfort even when using recycled materials. To
ensure traceability, we scoured the world forpartners with a clear production framework. In theend, the project’s largest volume of raw materials
was provided by the Shengfeng Group from
Suzhou near Shanghai, with advanced equipment
and reliable companies under its corporate
umbrella. This enabled us to guarantee atransparent production backdrop.

Thread twisting process in an automated factoryRolls of recycled polyester yarn

Highlight #2
Developing Zippers Made From Recycled Materials
Developing zippers for our fleece items also
proved to be a challenge. Existing zipper
products made from recycled materials were
scarce, so we needed to negotiate with
manufacturers. In the end, with the exception ofa few small parts, we created zippers madealmost entirely from recycled materials for our
Men’s Fleece Full-zip Jacket and our Men’s andWomen’s Fluffy Fleece Full-zip Jacket.
UNIQLO has worked tirelessly to improve its

fleece jackets since they were first introduced in
1994. Now, in 2022, we have managed to create
a fleece jacket made almost entirely from recycledmaterials. The one element we still could not fully
recycle was the thread used to stitch pieces
together, but even now we are striving to develop
a recycled thread that is strong enough to create
durable garments. The fleece jacket is one of
UNIQLO’s iconic products, and we will keep refining
it to satisfy the demands of future generations.

53

MATERIAL AREA

2

Respect Human Rights
in Our Supply Chain

Pursue traceability in the supply chain to ensure our products are manufactured in ethical environments.
We believe that respecting human rights and ensuring the health, safety, and security of all workers
in our supply chain is our most important responsibility.
Ask all partner factories to comply with our Code of Conduct for Production Partners,
which we have been using to monitor working environments since 2004.
Plan to extend scope to also cover spinning mills.

SUSTAINABILITY SECTION MATERIALITY

Pursuing Traceability and Improving Transparency
Fast Retailing pursues traceability across our supply chain. We
confirm working environments right back to the raw materials
procurement stage, either through audits by our own employeesor third-party organizations, or through third-party certifications.
We have already compiled a supply chain plan for each productthat covers the necessary materials, spinning mills, and materials
and garment factories, and built a system to confirm thesuccessful implementation of those plans. In Fall Winter 2022,
we established a mechanism for managing system information
together with partner factories. At the same time, we created andlaunched a third-party traceability verification program. With help
from our garment and material factories, UNIQLO has fully traced
each product back to the spinning factory stage, and all cotton
products back to the country of origin. From spring 2023, weplan to sign a Code of Conduct for Production Partners withspinning mills and to regularly audit working environments andtraceability. We intend to start by targeting a portion of UNIQLO
products, but from now on our aim is to expand the initiative tocover all products and Group brands.
We are working to establish full traceability and promote
information disclosure so customers have constant access to theinformation they need to be able to select products properly.

Information Disclosure Roadmap

2023 Targets
Display sewing location for all
products online. Work toward
disclosing the countries where allmaterials are produced.

2025 Targets
Disclose all information for nearly all
products to help customers makethe right choices.

2030 Targets
Reduce social and environmental
impacts and improve society.

Supply Chain Process

Raw materials

54

Spinning factories

Materials factories

Garment factories

Distribution

Stores/offices

Better Monitoring, Better Workplaces
Fast Retailing formulated a Code of Conduct for Production
Partners in 2004 and started checking if garment factories,
materials producers and so on were complying. Since 2020, we
have gradually adopted the Social & Labor Convergence
Program assessment framework for the apparel industry. The
program reduces the burdensome need for multiple audits bydifferent bodies and enables factories to concentrate on making
improvements. Factories conduct their own evaluations ofhuman rights violations, working environments, and management
systems, which are then verified by third-party organizations.
Fast Retailing has a zero tolerance policy for serious humanrights violations. The most serious violations, such as child laborand forced labor result in a G5 assessment. Any G5 abuses arereported to our Business Ethics Committee, which discusses
reconsidering our business relationship, and agrees on corrective
and preventative measures with the offending factory. Nine
factories received a G5 assessment in our FY2022 monitoring.
That number was higher than in FY2021* because we tightened
our zero tolerance standards to include items such as insufficient
emergency exits, lack of fire alarms, and discriminatory hiringconditions. All nine factories agreed to make improvements andadopt preventative measures in future. Improvements havealready been implemented in three factories.
We started publishing a list of production partners on our
website in 2017 to increase transparency. In March 2022, we
expanded that list to include all garment and materials factories
with which we consistently do business, and any sub-contractors.
We plan to also disclose a list of spinning mills in the future.

Employees working at UNIQLO partner factories

Disclosure of Production Partners List
https://www.fastretailing.com/eng/sustainability/
labor/list.html

Working Environment Monitoring Results (Evaluation of Partner Factories)
Grade

Description

FR Group (UNIQLO)FY2021

FY2022

G1

Zero notable violations

46

(25)

22

(6)

G2

Comparatively low-risk issues were observed (e.g. masks, gloves, and other protective
equipment are not being properly used, occupational safety training is not being given
to all employees)

210

(137)

90

(40)

G3

Issues that could potentially infringe human rights were observed (e.g. obstruction ofevaluation routes, failure to conduct regular evacuation drills, inadequate recording of
employee arrival and departure times)

261

(101)

347

(200)

G4

Human rights infringements and significant Code of Conduct violations were observed(e.g. insufficient overtime pay, long working hours, inadequate employment contracts)

65

(28)

78

(41)

G5

Extremely serious violations of the Code of Conduct were observed, such as childlabor, forced labor, payment below the minimum wage, and other serious human rights
violations, as well as inadequate fire and other emergency procedures such as thelocking of emergency exits

0

(0)

9

(4)

582

(291)

546

(291)

Number of factories monitored*Previous methods and standards for FY2021 evaluations differed slightly from our current standards. Those results were not reevaluated using the new criteria.

55

MATERIAL AREA

3 Respect the Environment
Steadily reduce greenhouse gas (GHG) emissions in all areas—materials development,
supply chains, stores, and offices—to achieve our FY2030 targets.
Reduce per-unit water usage by 10% at end of 2025 compared to 2020 levels at each of the
major garment and materials factories accounting for 80% of the water used to make our products.
We were recognized in the CDP A List for climate change and water security for our advanced initiatives andtransparency.

SUSTAINABILITY SECTION MATERIALITY

Steadily Reducing GHG Emissions
To help Fast Retailing achieve net zero GHG emissions by 2050, we are currently on
track to reduce emissions at our stores and main offices by 90%, and emissions fromthe manufacturing of raw materials, fabric, and garments for UNIQLO and GU products
by 20% by FY2030 (compared with FY2019 levels).

SCOPE 1, 2

FY2030GHG emissions
targetBuilding Greener Stores
We aim to source 100% zero-emissions renewable electricity at
our stores and main offices by FY2030. Indeed, we are alreadyusing 100% renewable energy in Europe, North America,
Vietnam, Indonesia, and Thailand. Our roadside stores, primarilyin Japan, are also working to conserve energy by reducing
electricity usage. We will design stores that are extremely
energy-efficient to help reduce power consumption byapproximately 40%.

CO2 Emissions in
Company-operated Facilities(Unit: 10,000 t-CO2)

90%

reduction(v. FY2019)

31.1

29.2

28.5

FY2019FY2020

FY2021

FY2030

Scope 2: Calculated on a market base

SCOPE 3

Reducing Emissions in Our Supply Chain
We will leverage our long-standing partnerships to promotemeasures that will conserve energy, phase out coal, andintroduce renewable energy at major partner factories, which
account for approximately 90% of UNIQLO and GU production
volume. We have also expanded our range of products madefrom recycled polyester and recycled nylon. By FY2030, we aim
to replace approximately 50% of all current materials with lowGHG recycled materials. In 2022, we made this switch for roughly
5% of all materials and 16% of polyester materials.

56

FY2030GHG emissions
target
CO2 Emissions in
the Supply Chain

20(Unit: 10,000 t-CO2)

416.6

394.4

388.4

FY2019FY2020

FY2021%

reduction(v. FY2019)

FY2030 cope 3: Emissions related to the manufacture ofS
raw materials, fabric, and garments for UNIQLO andGU products

Conducting Biodiversity Risk Assessments

Impact of Key Performance Systems on
Each Process in the Value Chain

We started conducting biodiversity risk assessments in 2021
using International Union for Conservation of Nature (IUCN)
guidelines. We investigated the impacts (land use change,pollution, invasive species) on major ecosystems of eachprocess in our value chain. The results showed a high risk of
ecosystem impact due to land use change and pollution during
the production of cotton, land use change during rayon
production, and pollution from the use and disposal of products
regardless of what material(s) they were made of. We are already
implementing measures to reduce the raw materials’ impact for
many items deemed high risk. Specifically, we are working to
reduce the emission of hazardous chemicals from products andproduction processes to zero by the end of 2030, and had
already achieved a 99.9% compliance rate by the end of 2021.
We intend to strengthen these initiatives and also formulate andimplement various other biodiversity strategies.

Process

Raw material
types

Impacts
Land usechangePollution

Invasive
species

CottonLinenRawmaterial
production

Wool
Cashmere
Leather
Down, feather
Rayon

Fabric and garment
production and processing

N/A

Logistics
Product use and disposal

N/A

TOTAL
Impact:Large

MediumSmall

Solving Water Resource Issues
We use Aqueduct, a World Resources Institute water risk
assessment tool, to regularly assess the impact of our businesson water resources throughout the value chain. We implement
our Water Action Plan to ensure healthy local water environments
by preventing and mitigating pollution as well as understanding
and reducing water usage. We are setting targets for eachsupplier and working to reduce per-unit water usage by 10% by
the end of 2025 (compared to 2020 levels) at the major garment
and materials factories accounting for 80% of the water used tomake our products. We are also working with factories tointroduce water-saving technologies. For example, our Blue
Cycle technology uses nanobubble and ozone cleaning togreatly reduce the water used to wash jeans, whether to create
a damaged look or to add the finishing
touches. All Group brands now use Blue2025 per-unit
Cycle when producing jeans.
water usage
for each factory

10

Water Usage%

reduction*(v. 2020)

Supply Chain
Item

UNIQLO & GU
garment factories
UNIQLO materials factories

Unit

2020

2021

10,000
m3

1,085

1,092

3,006

2,929

Some data is estimated*Targets involve reduction of per-unit water consumption at each plant, not total water
consumption.

(Top) Using lasers for vintage processing is less arduous forworkers than traditional, manual methods. (Bottom) Reducing
water consumption with washing machines that use
nanobubbles and ozone gas.

57

TOPICS

Views From
Partner Factories
Fast Retailing works with our production partners to uphold human rights,
improve working environments, and protect the global environment across our supply chain.
We asked some of our production partners to share their perspectives.

SUSTAINABILITY SECTION MATERIALITY

MAINLAND CHINA

58

Shenzhou International Group
Holdings Ltd.
Shoulder to Shoulder Through the Years
The year 2022 marked our 25th year of business withUNIQLO, which has enabled us to broaden our international
horizons and compete in the global market. The thing that
impresses me most is how Fast Retailing has always stoodshoulder to shoulder with us as a partner.
We have faced various challenges, but we have always
analyzed and discussed issues together and constructed apath to overcome them. Fast Retailing sets high goals, fromJapanese 5S management (sort, set in order, shine,
standardize, and sustain) to high-efficiency production andreducing CO2 emissions, but their staff regularly check to see
how projects are progressing, and they always give good
advice on how to overcome problems, however hard theymight be. I am grateful for the constant support they provide
our factory and their determination to grow together with us.
Generating corporate profits is extremely important, but
fulfilling our social responsibilities is even more important.
Minimizing negative impacts on society is essential for longterm corporate development. Providing good working andliving environments for employees is another of our social
responsibilities. We have set up bright, airy dormitories andcafeterias in different parts of our factories, improved
hardware while also enhancing our strong communication
channels with employees, ensured safe production, and held
regular training on fundamentals and corporate culture. We
conduct annual employee satisfaction surveys regardingthese efforts. In 2020, we started using solar power
generation across the board to promote local production andconsumption of clean energy.

Chairman of The Board

Ma Jian Rong

Achieved 30% solar power utilization

Reverse osmosis (RO) water treatment system
for reusing water

MAINLAND CHINA

Chenfeng Group Co., Ltd.
Cooperating on Future Plans toGrow Together
We started working with UNIQLO in 1992, 30 years ago.
The relationship started in my father’s day and he always
tells me that we will never find a more reliable partner. I think
the company’s values, which treasure long-term
partnerships, help to generate sustainability. We want togrow together with UNIQLO, and to do so we haveintroduced various training and sustainability programs. We
repeatedly discuss UNIQLO’s GHG targets and aredetermined to reduce GHG emissions by 30% by 2030 andachieve carbon neutrality by 2050. We have completed afabric factory that was certified as our first carbon-zero pilot
factory. We interact with UNIQLO’s Sustainability
Department as part of our daily work, constantly sharing
details of our progress and holding discussions of futureplans as they arise.

President

Jiahao Yin

Introduced solar power generation at all
production plants

BANGLADESH

Universal Jeans Ltd.
Cooperating on Careful Water Use forJeans Production
In 2007, I met directly with President Yanai, and he talked
about where the apparel industry was headed and how tomake an impact in the supply chain. That’s when we
decided to work together to achieve our shared vision.
Through collaboration with Fast Retailing’s Jeans Innovation
Center on the manufacture of UNIQLO jeans, we havereceived a wealth of guidance. By using less water during
the production process and then reusing any wastewater
after production, we have been able to reduce water usage
by approximately 45%. We are located in a tropical region
where rainfall is high, so factories here use rainwater andare careful to protect their water resources. I empathizestrongly with UNIQLO’s determination to pursue andimplement sustainability initiatives. We want to continue to
evolve and advance our business together.

Managing Director

Syed Mohammed Tanvir

This jeans factory greatly reduced water usage

59

MATERIAL AREA

4 Strengthen Communities
Continue to donate clothes and deliver self-reliance programs to refugees and other people around the world
who find themselves in difficult situations. Proactively employ refugees and aim to provide 200 employment
opportunities each year by FY2025.
Started our PEACE FOR ALL charity T-shirt project fueled by a common desire for peace. All profits(equivalent to 20% of the retail price) are donated to international organizations providing humanitarian support.

SUSTAINABILITY SECTION MATERIALITY

Empower children and the young leaders of tomorrow through educational support andsocial engagement programs.

A Charity Project to Promote Peace:
Making a Better World Through Clothes
UNIQLO launched our PEACE FOR ALL charity T-shirt project inJune 2022. In the project, leading figures who share our sincere
wish for world peace and who want to take action send us
designs and messages that we print on T-shirts. All profits fromthe T-shirt sales (20% of the retail price) are donated tointernational organizations offering humanitarian support topeople impacted by poverty, discrimination, violence, conflict,
and war. By the end of FY2022 (August 31, 2022), The donationof funds was ¥145,314,300 through our PEACE FOR ALL
charity project. To coincide with the launch of this PEACE FOR
ALL project, we also conducted fundraising activities at UNIQLO
stores that collected donations of ¥2,879,303. These funds
have since been donated to designated humanitarianorganizations. We will continue to promote our PEACE FOR
ALL project in order to achieve a better world in which people
can live safely.

60

This T-shirt design sports a message fromworld-renowned architect Tadao Ando. He
said, “We need to accept that we all live
together on one planet. I participatedbecause I felt the project was anopportunity for each of us to consider how
we can help create a peaceful world.”

Supporting Refugees Worldwide
Since 2006, Fast Retailing has been providing clothing aid torefugees and displaced persons worldwide in partnership with
UNHCR, the UN Refugee Agency.
In 2011, we signed a global partnership with UNHCR to help
solve global refugee problems in a more comprehensive way.
Today, we distribute clothes donated through our RE.UNIQLO
all-product recycling and reuse activities to refugee camps;
provide emergency aid; run self-reliance programs for refugees(vocational training, etc.); employ refugees at Fast Retailing,
primarily in UNIQLO stores; build awareness of refugee issues;and dispatch employees to UNHCR. We have donatedapproximately 50.5 million items of secondhand clothing (from2006 to end August 2022). At the end of April 2022, 124
refugees were employed in countries including Japan, France,
Germany, and the United States.
In 2021, we donated $800,000 to UNHCR to provide winterrelief supplies to Afghanistan in the form of items such asblankets and solar lanterns. In 2022, we donated approximately
100,000 new HEATTECH blankets and HEATTECH innerwear
items to UNHCR as emergency humanitarian aid for Ukraine andthe surrounding regions. We also donated $10 million to fundurgent support for health and safety. This money was used to
set up evacuation centers, distribute relief supplies, and provide
psychological care for children.

A refugee camp in Malawi©UNHCRKamioka2019

We hire refugees, mainly as store employees

Fast Retailing Refugee
Support by Region

Emergency
aid

Building
self-reliance

Clothing
support

Employment
supportFinancial donations
to Ukraine, Afghanistan

Number of refugees who
received self-reliance support

Number of secondhand
clothing items donatedRefugee employees working
in UNIQLO stores, etc.

Approx.

11(2021 and 2022)

million USD

19,47750.5(2016 to 2022)(2006 to end August 2022)

million124(As of end April 2022)

61

MATERIAL AREA

5 Support Employee Fulfillment
Promote diversity and inclusion, focusing on gender equality; ethnicity and nationality;
full participation of staff with disabilities; and improved LGBTQ+ understanding.
Boost percentage of female managers to 50% by FY2030.
Provide skills development and other educational programs. Develop employees with the skills to play
an active role on the global stage.
Create working environments worthy of our aim to become the world’s safest and healthiest company.

SUSTAINABILITY SECTION MATERIALITY

Diversity and Inclusion
Fast Retailing employs approximately 110,000 people
worldwide. We implement measures tailored to individual
markets so all employees can build their careers as they selectthe workstyle best suited to their particular stage of life. In Japan
we promote career sessions and mentorship programs toempower women, with female managers acting as role models.
In the United States, where child care costs are high and spots
at day care can be scarce, we introduced a monthly child careallowance of up to 1,000 USD for full-time employees beginningin fall 2021. Women occupied 43.7% of Fast Retailing Groupmanagement positions at the end of FY2022. We aim toincrease that to 50% by the end of FY2030 by strengthening
initiatives in Japan in particular, where gender equality/
empowering women is a major issue.

Percentage of female
employees acrossthe Fast Retailing Group(at end of August 2022)

68.7

%

Percentage of female
managers*
FY2022

FY2030

62

43.7
50.0

%

%

*Management positions refer to block leaders and area
managers in the sales department; store managers ofa certain grade and above; and head office executive
officers, directors, and managers.

Global employees(as of August 2021)

113,689

employees

Learning About Corporate Culture andPrinciples From Senior Management
One of Fast Retailing’s important values is to respect individuals
and promote corporate and individual growth. The Fast RetailingManagement and Innovation Center (FR-MIC) is an in-househuman resource training organization that develops programs
globally for everyone from our retail staff and store managers tomanagement candidates. The object is to build Fast Retailing’s
future. Our FR Conventions, which are held twice a year, areattended by roughly 8,000 store managers and head office
employees from around the world, both in person and online.
We also hold local conventions in individual markets to foster a
deeper sense of corporate unity.
Furthermore, we have created “direct sessions” that giveindividual employees the opportunity to learn directly frommanagers about Fast Retailing’s values, including ourcommerce, management, and work philosophy, so that they
can fully embrace and implement Fast Retailing’s businessstandards. We use “Notes on Becoming a Manager” and “FR:In Spirit and Action” written by founder Tadashi Yanai to deepen
understanding and to help employees embody the mindset,
approach, and behavior expected of a Fast Retailing teammember.

A direct session in progress“Notes on Becoming a Manager” by Tadashi Yanai

Message From Our Sweden and Denmark COO

A Company That Supports Vision and Drive
I joined the company in 2014 and six
months later, I was the manager of afloor at the UNIQLO Paris Opera
global flagship store. After I had
become manager of the entire store,
I started to learn a lot about store
openings, and then became
manager of the first store opened in
Sweden in 2018.
I was subsequently appointed
COO of Sweden then, two years
ago, I was appointed COO of
Denmark too.
The catalyst for all this was when
I stood up at the 2016 FR Convention

and said I wanted to be COO of
Northern Europe. I developed a clear
goal as soon as I joined the company.
The current COO in France helpedme create a career plan and goals toachieve my target and my work as
an area manager and my experience
with new store openings proved agreat help.
Fast Retailing is keen to support
people who express a strong desire
to contribute.
Going forward, I want to develop
UNIQLO into the most popular brandfor customers in Scandinavia.

Nicolina Johnston
COO, UNIQLO Sweden and Denmark

63

MATERIAL AREA

6

Ensure Proper
Corporate GovernanceAppoint a majority of external directors to the Board of Directors to strengthen its independence andsurveillance capabilities.
Promote swift, open debate and decision-making in individual committees that support the Board.

SUSTAINABILITY SECTION MATERIALITY

Improved transparency and independence of the Nomination and Remuneration Advisory Committee.

Board of Directors

Board of Auditors

Having a majority of external directors on the Board
strengthens supervision of decision-making by the CEO
and other executive officers. Our external directors offer
diverse, high-level expertise as former senior managers ofglobal companies and leading specialists in fields such as
M&A, financial management, diversity, and ESG. They
offer objective opinions that are reflected in important
decisions. In FY2022, the Board discussed various topics
including the approval of the fiscal year budget andfinancial results, our Global Brands strategy, the structureof the Nomination and Remuneration Advisory Committee,
and the company’s transition to the Tokyo Stock
Exchange’s new Prime Market segment. The Board met
13 times in FY2022, with 100% attendance by all directors
and auditors. Fast Retailing conducts an annual survey ofall directors and statutory auditors regarding theeffectiveness of the Board. In FY2022, the survey
highlighted issues regarding the way information isprovided to external directors and the diversity of Board
membership. The survey results were shared with all
directors and auditors in a Board meeting held to consider
improvements to the highlighted issues.

The Board of Auditors, which supervises the execution of
directors’ duties, has three external statutory auditors withcertified accounting or legal backgrounds and two fulltime corporate auditors. The Board of Auditors balances
the need for strong independence and strong informationgathering. It ensures transparent auditing, and members
voice expert and objective opinions. The Board of Auditors
met 14 times in FY2022 with 100% attendance.

Internal Control
We aim to establish internal control systems wherever we
operate by promoting full compliance, strengthening risk
management frameworks, protecting confidential
information, and pursuing thorough internal auditing. We
seek to nurture a deep understanding of, and respect for,
our Fast Retailing Group Code of Conduct by requiring all
employees to take an annual online refresher course. We
have also set up internal hotlines so that anyone canreport or discuss potential compliance violations orconcerns.

Corporate Governance at Fast Retailing (As of November 25, 2022)

General Meeting of Shareholders
Elect/dismiss

Elect/dismiss

Human Resources Committee
Board of Statutory Auditors(Three out of five are external)

ReportBoard of Directors
Audit/report(Six out of ten are external)
Consult
Elect/dismiss

ReportIndependent
Auditors

64

Elect/dismiss/nominate/
remove/supervise

Report/cooperate

Internal Audit
Division

Audit/report

Chief Executive Officer
Group Officers

Counsel/supervise

Sustainability Committee
Disclosure Committee
IT Investment Committee
Code of Conduct Committee
Business Ethics Committee
Risk Management Committee
Nomination and Remuneration
Advisory Committee
Human Rights Committee

Human Rights Committee
The committee advises and supervises the company sothat it complies with the Fast Retailing Group humanrights policy and conducts all business appropriately. It
investigates human rights violations reported bystakeholders through hotlines, and provides advice andrecommendations on remedial measures. It also provides
advice and recommendations to individual businessdivisions on education and awareness-building activities,
and the implementation of human rights due diligence.
In FY2022, the committee advised on and supervised
action plans for future human rights initiatives, based on
the results of working environment monitoring at
production partners and factory hotline submissions.

Sustainability Committee
The Sustainability Committee discusses how corporate
activity and policy relate to environmental protection,
respect for human rights, social responsibility, compliance,
diversity, and other sustainability considerations. The
content of discussions is shared with sales, marketing,production, purchasing, human resources, and otherrelevant departments.
In FY2022, the committee discussed global trends
in the recycling of resources and information disclosure
along with our social contributions and our efforts toengage customer participation in sustainability. It alsooffered guidance on the direction of subsequent activities.

A Human Rights Committee meeting in progress

Nomination and Remuneration
Advisory Committee
The discretionary Nomination and Remuneration Advisory
Committee discusses important items relating tocorporate governance (requirements and nomination
policy for director and statutory auditor candidates,
director remuneration policy, requirements of the chief
executive officer, smooth succession planning, etc.) andadvises the Board of Directors.
In March 2022, we changed the committee’s
composition to enhance transparency and independence.
The committee is chaired by an external director andincludes all independent external directors and someindependent statutory auditors. We believe it is important topass on Fast Retailing's corporate philosophy and spirit as
key sources of corporate growth, and so President and
CEO Tadashi Yanai also serves on the committee.

Composition of Committees (November 25, 2022)
Human
Resources
Committee

Internal Directors

Tadashi Yanai

Chairperson

Takeshi Okazaki

Observer=Committee Member

Sustainability
Committee

Disclosure
Committee

IT
Investment
Committee

Code of
Conduct
Committee

Business
EthicsCommittee

Risk
Management
Committee

Nomination andRemuneration
Advisory
Committee

Human
RightsCommittee

Chairperson
Chairperson

Chairperson

Kazumi Yanai
Koji Yanai

Chairperson

Nobumichi Hattori
Masaaki Shintaku
External Directors

Observer

Chairperson

Naotake Ono
Kathy Matsui
Joji Kurumado
Yutaka Kyoya

Standing Statutory
Auditors
External Statutory
Auditors

Masaaki Shinjo

ObserverMasumi Mizusawa

ObserverObserverObserver

Keiko Kaneko
Takao Kashitani
Masakatsu MoriGroup Officers andOther External Professionals

Observer
3

7

3

5

5

9

9

0

8

Note: The head of the Sustainability Division chairs the Business Ethics Committee, the head of the Legal Department chairs the Code of Conduct Committee, and an external professional chairs the Human Rights Committee. External directors and statutory auditors offer opinions based on their individual areas of expertise.

65

Transparent Governance Discussion

DISCUSSION

Implementing Highly
Transparent Governance

SUSTAINABILITY SECTION MATERIALITY

Fast Retailing has enhanced the independence and supervisory functions of the Board of Directors andthe Board of Auditors by making a majority of directors and statutory auditors external. We asked three ofthese external directors and external auditors about the kinds of governance discussions we are having.

External Statutory Auditor

External Director

External Director

Keiko Kaneko

Masaaki Shintaku

Kathy Matsui (Kathy Mitsuko Koll)

Many people ask about the selection
guidelines for external directors: lengthof service, necessary skills, and so on.
What are your views on this?
Kaneko: I was most impressed at my first Board
meeting by the free and open discussion that
Company President and Chairman of the Board

66

Mr. Yanai encouraged. He said he wanted tohear everyone’s opinion.
I have noticed that long-standing members
sometimes make statements that reveal a deep
understanding of how things were in the past.
They may also use their detailed knowledge to
speak about Fast Retailing’s current growthstage; they know when business is slower andwhat we need to be looking out for when that
happens. Everyone has their own expertise andsense of pride as a manager or specialist, andyou can’t assume that external directors will
sympathize more with management just because
they have served for longer. Moreover, I think our
firm grasp of the details and the background has
allowed us to have deeper discussions, andthat’s a great advantage.
Matsui: Honestly, everyone spoke much morethan I had expected. That really struck me. Anyargument from President Yanai would spark aflurry of opposing views. I felt that this exchange
in itself was true governance. President Yanai
knows he doesn’t have all the facts. He
acknowledges opposing views, which is very
reassuring. I felt that this Board truly does
practice good governance.
Shintaku: The job of external directors is toprovide the decision-makers with a range of
information and to express opinions based on
their professional perspective and experience. It
is valuable for a company like Fast Retailing,which conducts business globally, to hear
opinions based on a thorough understanding of
how stores operate and what specific businesshappens within them on a daily basis. In our firstyear, we can see things with fresh eyes. After
two or three years, we become more aware of
the fundamental issues that need to be resolved,
or the different avenues that may need to be

explored. As I continue to serve as an external
director, my understanding deepens and I growwith the company. That enables me to provide
meaningful advice. I think that’s key.
Matsui: Recently, I evaluated the functioning of
the Board of Directors, and I didn’t write thateverything was perfect. When I first joined, I felt
we needed a more thorough briefing in advanceon organizational structure and details of thecompany’s business.
Shintaku: We all complete an annual
questionnaire to evaluate the effectiveness of theBoard, and we share our opinions on specificitems. Considering everyone’s responses andcomments from this questionnaire helps us
determine and develop our next steps.
Kaneko: One of the great things about Fast
Retailing is that it makes decisions and acts
quickly. If we feel something should be done
either inside or outside the company, there is asystem in place for frankly discussing how toproceed and reaching a speedy conclusion. If the

KEIKO KANEKO
External Statutory Auditor

Keiko Kaneko
Appointed External Statutory Auditor of
Fast Retailing Co,. Ltd. in November 2012.
Partner at Anderson Mori & Tomotsune LPC;
Statutory Auditor at UNIQLO CO., LTD.; External
Auditor at The Asahi Shimbun Company;
External Director at Daifuku Co., Ltd.

67

executive team is unsure about a particulardecision, President Yanai will listen to various
opinions in Board of Directors meetings,
facilitating a prompt discussion and an effective
governance check.
Shintaku: Yes, this process is fast compared toother companies.
Matsui: It definitely is.

SUSTAINABILITY SECTION MATERIALITY

Interest in the company’s succession
planning is intense. What can you sharewith us about the current discussions
on that topic?
Shintaku: Our executive system evolves year by
year. The number of senior executive officers isincreasing rapidly with the promotion of eligible
employees. We now have a group that canfunction as the core of our future management.
UNIQLO’s traditional system of management by
one charismatic leader is already changing. Our
global headquarters, individual markets, andbrands are fully organized.
Going forward, the current executives will
form a team that guides operations. Eventually,
someone will become the new leader and theteam can be expected to rally behind that person.
Matsui: I started participating in this discussionin November 2021, so my experience is limited,
but as Mr. Shintaku said, I feel we are preparing
frameworks that can maintain proper sustainablegrowth for the company going forward. Human
resources are everything, and I truly feel thatthe company is amassing substantial talent at
every level.
Kaneko: Not every discussion has a direct
bearing on future frameworks, but our major
agenda items always relate to some extent to thesuccession issue. Many key agenda items
concern human resource systems, organizational
restructuring, new departments, and futuresystems. It is clear to me that people areconscious of next-generation needs when
making proposals on these matters.
Shintaku: We already have a solid basis for our
next framework. We have many experienced
directors, and so we are able to have good
discussions about issues that people genuinely
support. It is more important to talk about how
we do something than who does it. Simply put,the best-qualified person at the time should takeon the top leadership role.

MASAAKI SHINTAKU
External Director

Masaaki Shintaku
Appointed External Director of Fast
Retailing Co,. Ltd. in November
2009. Also serves as External
Director at NTT DOCOMO, INC. and
NTT Communications Corporation.
Previously Executive Vice Presidentof Oracle Corp. (US) and Chairmanof Oracle Corp. (Japan).

68External Director

Kathy Matsui(Kathy Mitsuko Koll)
Appointed External Director of Fast Retailing Co., Ltd.
in November 2021. Serves as Councilor of the Fast
Retailing Foundation. Worked as a partner and thenVice Chairperson at Goldman Sachs Japan Co., Ltd.
Coined the term “Womenomics” in 1999. Founded
MPower Partners Fund L.P. in May 2021.

KATHY MATSUIThe Board of Directors plays an importantrole in succession planning. What pathshould Fast Retailing be taking?
Kaneko: The great thing about Fast Retailing isthat it doesn’t approach things through formal
discussions with lots of strict prerequisites. Any
discussion of the composition of the Board, forexample, should start by considering what
human resources and viewpoints are needed tosupport the company’s current status and future
growth. Fast Retailing doesn’t follow generalassumptions about what constitutes a favorable
Board composition, but rather considers whichhuman resources and systems are needed forthe company’s future aims and direction.
Matsui: Fast Retailing’s growth is shiftingoverseas. The company is already globalizing its
internal systems, but we need to do even more
to improve human resources and other functions.
I work in ESG. The UNIQLO and Fast Retailingbrands, with LifeWear and other strategies forpromoting sustainable societies, have great
potential, but they will undoubtedly need toovercome numerous hurdles, from regulations tomacro-level risks. It is important to have thenecessary structure in place, and to be flexible.
Shintaku: Employees who are leadership
candidates have the opportunity to makepresentations to us in Board meetings,
expressing their ideas and sharing their opinions.

These opportunities help us simulate potential
succession frameworks that include a particularperson or team. I think the time will come for us
to discuss and determine what the nextmanagement framework will look like. When that
happens, President Yanai will give his opinion asa major shareholder, and the Board of Directors
will receive proposals from the Nomination andRemuneration Advisory Committee. The actual
framework will be approved and decided throughthat process. The human resources involved may
well change significantly each time we discuss
the topic, because our employee base is growing
rapidly and our pool of human resources isdeepening accordingly. President Yanai thinks
carefully about the path ahead, so I am
personally comfortable knowing he will beleading the process. Our role is to monitor
whether a candidate is the most appropriate
choice, and whether this person can be part of asmooth transition.

69

Messages from Our Directors

Create a More Sustainable Society,
Drive Corporate Growth Through LifeWear
Changing clothes. Changing conventional wisdom. Change the world. I strive torealize transparent management based on our corporate statement, and todeliver clothing happiness and joy to people worldwide through LifeWear (ultimate
everyday clothing). I want us to grow into an even better company by pursuing
the sweeping corporate transformation laid out in our Ariake Project in order toachieve a sustainable society.

SUSTAINABILITY SECTION MATERIALITY

Tadashi Yanai

Appointed President and CEO in September 1984, and his current position of Chairman,
President & CEO in September 2005. Main concurrent positions: Chairman, President & CEO
of UNIQLO CO., LTD.; Director & Chairman of G.U. CO., LTD.; Director of LINK THEORYJAPAN CO., LTD.; External Director at Nippon Venture Capital Co., Ltd.

Manage Global Risks, Support Best Practices
for Increasing Corporate ValueI believe the best way to increase shareholder value is to objectively judge howcapital markets perceive Fast Retailing’s corporate value. I intend to conduct firm
global risk management and offer advice from a broad range of perspectives thatwill ensure Fast Retailing continues to fulfill the market expectations of a wellrespected company that is anticipated to continue its strong growth in the future.

Nobumichi Hattori
External Director
Independent Director

Appointed November 2005. Formerly worked at Goldman Sachs. Currently a research
specialist in M&A and corporate value evaluation. Also serves as Visiting Professor at Waseda
Graduate School of Business and Finance, and at Keio University Graduate School ofBusiness Administration; External Statutory Auditor at Frontier Management Inc.; External
Director at Hakuhodo DY Holdings Inc.

Promote Digital Consumer Retailing,
Support Further Advancement
We invested efficiently in transforming the IT systems that now support Fast
Retailing operations, earning us a strong reputation for the successful utilizationof IT. Fast Retailing is transforming into a digital consumer retailing company andaccelerating its efforts to analyze data and acquire knowledge. We are attracting
more exceptional employees and building frameworks for the next stage of
growth. The Board is contributing in every way it can.

Masaaki Shintaku
External Director
Independent Director

70

Appointed November 2009. Previously Executive Vice President of Oracle Corp. (US) and
Chairman of Oracle Corp. (Japan). Currently Counselor of Special Olympics Nippon
Foundation, External Director of NTT DOCOMO, INC. and NTT Communications Corporation.

Emphasize Useful Information From
the Front LineAs a senior manager, I believed front-line operations were important, and I still
do. By visiting stores, listening to front-line opinions, and getting firsthandexperience as an individual consumer, I can discover and propose business
improvements. The Board is well balanced and diverse. Everyone exchanges
lively opinions and President Yanai is always open to new ideas. I will continue tomake proposals that prioritize our on-the-ground operations.

Naotake Ono
External Director

Appointed November 2018. Formerly Director, Senior Managing Executive Officer, Executive
Vice President, President & COO of Daiwa House Industry Co., Ltd. Became Special Advisor
to Daiwa House in November 2017.

Independent Director

Leverage Growth - driving Diversity,
Create New Role Models
As Fast Retailing’s first female external director and first director who is not a
Japanese national, I can offer a variety of different ideas. Mr. Yanai isknowledgeable and experienced in ESG matters, so he shares my view thatdiversity is a driver of growth. I want to work even harder to create organizationalframeworks to promote diversity. Nurturing role models who promote“Womenomics” is part of that effort.

Kathy Matsui (Kathy Mitsuko Koll)
External Director

Appointed November 2021. Worked as a partner and then Vice Chairperson at Goldman
Sachs Japan Co., Ltd. Currently serves as Councilor of the Fast Retailing Foundation andGeneral Partner of MPower Partners Fund L.P.

Independent Director

Draw Future Scenarios andPromote Innovation
My experience in the construction industry has taught me to take environmental
action now without delay. Why? Because buildings are made to last. We musttake appropriate action today to balance profit and sustainability across a rangeof future scenarios. I want to support such innovation as a director here at
Fast Retailing.

Joji Kurumado
External Director
Independent Director

Appointed November 2022. In January 1982, received Japanese First-class Architect
certification. Served as General Design Manager, Executive Officer in Charge of Design, andManaging Executive Officer at TAKENAKA CORPORATION. Currently, Advisor to TAKENAKACORPORATION and part-time teacher in the Department of Architecture, School of Creative
Science and Engineering, WASEDA University.

71

Maximize Growth Potential by
Emphasizing Medium/Long-term Perspectives
I have worked for many years in the food industry, and so the idea of LifeWear asa daily necessity resonates with me. I worked for 12 years in the U.S. and Asiaand gained experience as a global manager. I want to use that knowledge bothto fulfill my responsibilities as an external director and to emphasize perspectives
that could improve the company’s medium/long-term corporate value. My
overarching mission is to maximize Fast Retailing’s growth potential.

Yutaka Kyoya
External Director

SUSTAINABILITY SECTION MATERIALITY

Independent Director

Appointed November 2022. Formerly Director at Lawson, Inc., and COO of Foods(Commodity) Division and Executive Vice President & Group CEO of the Mitsubishi Corporation
Consumer Industry Group. Currently Representative Director, President, CEO, CSO and CHOof Mitsubishi Shokuhin Co., Ltd.

72

Takeshi Okazaki

Kazumi Yanai

Koji Yanai

For the next stage of its development,
the Fast Retailing Group must
accelerate globalization anddigitalization and invest in humanresources and business infrastructure.
It is vital to grasp what is happening
on the ground and undertake realistic
management. As a management
supervisor and executive, my aim isfair and proper management thatsteadily enhances our corporate value.

We must use global talent andresources to make the world a better
place and further strengthen ourcompany. I help people understandour corporate philosophy and share
our honest belief that individual
growth leads to corporate growth anda better future. As a director andmember of the founding family, I will
strive to meet expectations as ourcompany continues to grow.

Uncertainty is sweeping through theworld. Conflicts are increasing refugee
numbers and pushing up resource
and raw material prices. The businessenvironment is becoming increasinglycompetitive. We are working evenharder to develop high-quality
communication with stakeholders. Asa director, I will focus on guiding ourcompany along the correct path,
while prizing our people.

Appointed November 2018. Worked at theLong-Term Credit Bank of Japan and as apartner at McKinsey & Company. Joined
Fast Retailing in August 2011. Main current
positions: Director, UNIQLO CO., LTD and
G.U. CO. LTD.; Group Senior Executive
Officer & CFO, Fast Retailing Co., Ltd.

Appointed November 2018. Joined Fast
Retailing in September 2009 after working
at Goldman Sachs Group, Inc. and Link
Theory Holdings (US) Inc. (currently Theory
LLC). Main positions: Chairman, Theory
LLC and UNIQLO USA LLC; Group Senior
Executive Officer, Fast Retailing Co., Ltd.

Appointed in November 2018. Joined Fast
Retailing in September 2012 after working
at Mitsubishi Corporation’s food subsidiary
Princes Limited, UK. Currently Group
Senior Executive Officer, Fast Retailing Co.,Ltd.

Auditors

Keiko Kaneko

Takao Kashitani

Masakatsu Mori

External Statutory Auditor

External Statutory Auditor

External Statutory Auditor

Independent Director

Independent Director

Independent Director

It is important that the external
statutory auditors of a swift, effective
company such as Fast Retailingsupport the company's growth
opportunities while also offering riskmitigating advice from multiple
perspectives. I will do my utmost to
conduct vigilant reviews andstrengthen corporate structure.

The harsher the opinion, the more
attentively President Yanai listens, so
auditors and directors can freely
conduct open-minded discussions.
With over 30 years’ experience as acorporate restructuring consultant,accountant, and tax expert, I canadvise on these matters and also offer
suggestions on various issues that go
beyond my external auditor remit.

Fast Retailing’s mission is to grow inharmony with society. Is the decisionmaking process appropriate? Is thecompany's economic and social
value consistently increasing? Whatrisks hinder the realization of thecompany's business plan? It is my
job to look into these matters andstrengthen global governance.

Appointed November 2012. Partner atAnderson Mori & Tomotsune LPC;
Statutory Auditor at UNIQLO CO., LTD.;
External Statutory Auditor at The Asahi
Shimbun Company and External Director at
Daifuku Co., Ltd.

Appointed November 2018. Director ofBrain Group (Kashitani Accounting Office);
President of Brain Core Co., Ltd. andof FP Brain Co., Ltd.; External Director at
Japan Freight Railway Company.

Appointed November 2020. Currently
serves as Special Advisor to theInternational University of Japan, andExternal Director at Stanley Electric Co.,
Ltd. and Kirin Holdings Company.

Masaaki Shinjo

Masumi Mizusawa

Standing Statutory Auditor

Standing Statutory Auditor

Appointed November 2012. Joined Fast Retailing in February 1994
(served as General Manager of Group Auditing, Statutory Auditor at
G.U. CO., LTD., General Manager of Sales Support Management
Division at UNIQLO CO., LTD.), Auditor at FAST RETAILING(CHINA) TRADING CO., LTD. and at four subsidiary companies.

Appointed November 2019. Joined Fast Retailing in October 2001
(served as General Manager of Investor Relations, Global
Corporate Management and Control). Auditor at LINK THEORYJAPAN CO., LTD.

73

FINANCIAL AND
NON-FINANCIAL
INFORMATION
Realize Consistent Business Growth
and a Sustainable Society

Revenue and Store Numbers

FY

‘84

‘85

‘86

‘87

‘88

‘89

‘90

‘91

‘92

‘93

‘94

‘95

‘96

‘97

‘98

‘99

‘00

‘01

‘02

‘03

‘04

‘05

‘06

‘07

Evolving Sustainability Activities

2001

2004

2006

2011

Started clothing aid for
Afghan refugees

Started monitoring factory
working environments

Launched All-product Recycling
Campaign (expanded into
RE.UNIQLO from 2020)

Formed global partnershipwith UNHCRRECYCLEREUSE
REDUCE

74

‘08

‘09

‘1

10

GLOBAL
BRANDS¥123.1billion
GU¥

246.0 billion

3,562 Stores

UNIQLOINTERNATIONAL¥ 1,118.7 billion

FY2022 PERFORMANCEHIGHLIGHTS	Record
Record performance. Consolidated revenue:¥2.3011 trillion (+7.9%), operating profit: ¥297.3
billion (+19.4%).
	Support
Support for LifeWear increased and sales recovered
steadily in all markets thanks to renewed clothing
demand worldwide and consistent branding efforts.
	UNIQLOUNIQLO Japan: First-half sales and profit declined.
Higher revenue and sharply higher profits thanks tostrong second-half sales of products that reflectedcustomer needs and the latest trends.

UNIQLOJAPAN¥ 810.2 billion

‘11

‘12

‘13

‘14

‘15

‘16

‘17

‘18

‘19

‘20

‘21

	UNIQLOUNIQLO International: Large revenue and profit
gains. Greater China region profit declined due to
COVID-19. Sales and profits rose considerably inSoutheast Asia, North America, and Europe. North
America and Europe (ex. Russia) achieved an
operating profit margin of roughly 10% and aredeveloping into new earnings pillars behind Asia.
	GU:
GU: Overall, revenue declined and profits contracted
sharply. However, second-half revenue recovered
and profit soared on improved product lineups.

‘22

SUSTAINABILITY TARGETS
2017

2021

Published list ofmajor garment factories

Announced FY2030 targets andplan to transform LifeWear into a
new type of industry	Aim to reduce greenhouse gas emissions from main
stores and offices by 90% v. FY2019 levels by
FY2030, and by 20% across the UNIQLO and GU
supply chain.
	Increase ratio of recycled materials to 50% of totalmaterials by FY2030.
	Reduce waste materials during product delivery tozero.
	Reduce per-factory water usage per unit by 10%
v. 2020 levels by end 2025.
	Implement social contribution activities worth ¥10billion* a year by FY2025.
	Aim not simply to guarantee minimum wages, but torealize living wages.
	Increase
Increase ratio of female managers to 50% by FY2030.
*Together with Tadashi Yanai, the Fast Retailing Foundation, and others.

75

FINANCIAL HIGHLIGHTS

Revenue

UNIQLO International’sContribution to Revenue

FINANCIAL AND NON-FINANCIAL INFORMATION FINANCIAL HIGHLIGHTS¥2.301 trillion

+7.9%

48.7%

¥2.301(trln yen)
2.5

Global Brands

trillion¥123.1 billion ( 5.3%)

GU

2.0

+5.0pt¥246.0 billion(10.7%)

1.5
1.0

UNIQLO Japan
UNIQLOInternational

0.5¥1,118.7 billion

0¥810.2 billion(35.3%)( 48.7%)‘13 ‘14 ‘15 ‘16 ‘17 ‘18 ‘19 ‘20 ‘21 ‘22(FY)

Consolidated revenue rose 7.9% year on year to ¥2.301 trillion.
Revenue increased steadily across all markets thanks to renewed
global demand for clothing and consistent efforts to strengthen
LifeWear branding.

UNIQLO International’s contribution to total revenue rose by
5 percentage points to 48.7%. S/SE Asia & Oceania revenue
increased significantly (by approx. 60%). North America and Europe
revenue rose sharply on gradually expanding UNIQLO presence.

Operating Profit

Earnings per Share¥297.3 billion +19.4%
Business profit¥891.8+ 60.9%Operating profit(bln yen)

(yen)

350

1,000

¥306.7300

billion250¥891.8

800
600

200

¥297.3150

billion

400

100
200
50
0

0
(FY)

‘13 ‘14 ‘15 ‘16 ‘17 ‘18 ‘19 ‘20 ‘21 ‘22

Increased 19.4% to ¥297.3 billion. UNIQLO International profit rose
by a significant 42.4% thanks to sharply higher profit from Southeast
Asia & Oceania and improved profitability from North America andEurope. Achieved new record high even after removing the boost
from a weaker yen.

(FY)

‘13 ‘14 ‘15 ‘16 ‘17 ‘18 ‘19 ‘20 ‘21 ‘22

Basic earnings per share (EPS) increased 60.9% to ¥891.8 thanks
to a sharp rise in operating profit and a sharply higher net financeincome of ¥116.2 billion including foreign exchange gains on
foreign-currency denominated assets, etc.

*We implemented a three-for-one split of the Company’s common stock on March 1, 2023.
Dividend payments for past fiscal years have been adjusted to reflect this stock split.

76

ROE (Ratio of profit to equity attributable toowners of the Parent)

20.4%

Ratio of Equity Attributable to
Owners of the Parent to Total Assets+4.0pt49.1%(%)+4.6pt

(%)

30.0

90.0

25.0

75.0

20.4

20.0

60.0

%

15.0

45.0

10.0

30.0

5.0

15.0

0.0

%

0.0

‘13 ‘14 ‘15 ‘16 ‘17 ‘18 ‘19 ‘20 ‘21 ‘22

(FY)

49.1

‘13 ‘14 ‘15 ‘16 ‘17 ‘18 ‘19 ‘20 ‘21 ‘22(FY)

ROE (Ratio of profit to equity attributable to owners of the Parent)rose 4 percentage points to 20.4% following an impressive 60.9%
increase in profit attributable to owners of the Parent.

Increased by 4.6 points to 49.1% following a ¥445.1 billion
increase in equity attributable to owners of the Parent.

Cash and Cash Equivalents

Dividend per Share¥1.358 trillion +15.3pt
Free cash flow (left)(bln yen)

500¥206.7
Dividend per share (left)

Cash and cash equivalents (right)¥1.358(trln yen)trillion

400
300

1.5
1.2

¥218.5billion

0.9

200

0.6

100

0.3

0

0

Dividend payout ratio (right)

(yen)

(%)

250

¥206.7

60.0

150

45.0

100

23.2

30.0

%

50

15.0
0.0

0

‘13 ‘14 ‘15 ‘16 ‘17 ‘18 ‘19 ‘20 ‘21 ‘22

75.0

200

-100
(FY)

+ ¥46.7(FY)‘13 ‘14 ‘15 ‘16 ‘17 ‘18 ‘19 ‘20 ‘21 ‘22

Free cash flow totaled ¥218.5 billion (¥430.8 billion generated byoperating activities minus ¥212.2 billion used in investing activities).
Cash spent on financing activities totaled ¥213.0 billion. As aresult, cash and cash equivalents totaled ¥1.358 trillion.

Increased by ¥46.7 to ¥206.7. The comparatively low 23.2%
dividend payout ratio was due to ¥114.3 billion in recorded foreignexchange gains on foreign-currency denominated assets, etc. The
payout ratio was similar to other years when that is factored in.

*The negative FCF in FY2016 included a ¥185.5 billion investment in deposits with overthree months to maturity.

*We implemented a three-for-one split of the Company’s common stock on March 1, 2023.
Dividend payments for past fiscal years have been adjusted to reflect this stock split.

77

NON-FINANCIAL HIGHLIGHTS

Greenhouse Gas (GHG) Emissions(Scope 1, 2)*

Greenhouse Gas (GHG) Emissions(Scope 3)(10,000t-CO2)(10,000t-CO2)

500.0

FINANCIAL AND NON-FINANCIAL INFORMATION NON-FINANCIAL HIGHLIGHTS

35.0

28.5

30.0

388.4

400.0

25.0

Target

20.0

300.0

15.0

200.0

10.0
100.0

5.0

Target

0.0

0.0

’19

(FY)

’20

’21

’30

’19

(FY)

We aim to reduce GHG emissions derived from energy use at our
main stores and offices by 90% by FY2030 (v. FY2019). We havealready achieved 100% renewable energy in Europe, North
America, Vietnam, Indonesia, and Thailand.

’20

’21

’30

We aim to reduce GHG emissions from the production of raw
materials and fabrics and the sewing of UNIQLO and GU
products by 20% by FY2030 (v. FY2019). Promoting recycledmaterials development helped increase the Group’s ratio ofrecycled materials for Spring Summer and Fall Winter 2021 to5%, as planned.

*Scope 2 is calculated on a market base

Water Usage

Waste

Head office (left)

Supply chain*1 (right)

Head office/stores(10,000m3)

10.0

4,021.6

8.0(10,000m3)(10,000t)

5,000

12.0

4,000

Supply chain*1

11.5

10.0
8.0

6.0

3,000

5.2

4.0

6.0
2,000
4.0

2.0

1,000

0.0
(FY/year)*2

0

’19

’20

’21

We assess water usage in high water-risk areas and work withfactories using a lot of water to make reductions. We aim to
reduce water usage per unit at each factory by 10% (v. 2020) by
end of 2025 at major garment and materials factories accounting
for 80% of the water used for our products.

*1 UNIQLO and GU garment factories and UNIQLO fabric mills*2 Fiscal year for head office, January to December for supply chain

78

4.1

2.0
0.0
(FY/year)*2

’19

’20

’21

We aim to achieve zero landfill waste as soon as possible byreducing, replacing, reusing, and recycling materials for productpackaging, cardboard boxes used during transportation, plastic
bags, and hangers.

*1 UNIQLO and GU garment factories*2 Fiscal year for head office, January to December for supply chain

Energy Usage(Fast Retailing)
Gas Used (left)

Donations of Secondhand Clothing

Electricity Used (right)(10,000m3)

(GWh)

900

600

524

750

500

600

400

450

300

300

200

(10,000 clothes)

800

600

192

150
0

431
400

200
100
0

’19

(FY)

’20

’21

0

’19

(FY)

’20

’21

’22

We are boosting the efficiency of energy use in stores and acrossthe supply chain, while also planning and developing functional
clothing that can help reduce energy consumption in customers’
daily lives.

We donate clothes collected from customers through our productreuse and recycling activities to refugees and internally displaced
persons worldwide. We have donated approximately 50.5 million
items in total (from 2006 to August 2022).

Ratio of Female Managers

The Power of Clothing Project:
Participating Schools(%)(school)

1,000

80.0
Target

70.0
60.0

43.7

50.0

50.0

745

800

%

%

600

40.0
400

30.0
20.0

200

10.0
0.0
(FY)

0

’18

’19

’20

’21

’22

’30

We aim to increase the ratio of women in management positions*to 50.0% by FY2030. The ratio has steadily improved to 43.7%
in FY2022. Going forward, we will strengthen our efforts byfocusing primarily on the comparatively low ratio in Japan.

(FY)

’18

’19

’20

’21

’22

The Power of Clothing Project is a participatory learning programfor elementary, junior high, and high school students run with
UNHCR. After attending classes given by our employees,
students organize the collection of kids’ clothing in their schools
and communities. Collected items are donated to refugees andother people in need of clothes, or they are recycled.

*Management positions refer to block leaders and area managers in the sales department;
store managers of a certain grade and above; and head office executive officers, directors,
and managers.

79FINANCIAL AND NON-FINANCIAL INFORMATION MESSAGE FROM OUR CFO

MESSAGE FROM OUR CFO

Transform Business
Structures, Accelerate
Globalization andSustainability Initiatives
Takeshi Okazaki
Director
Group Senior Executive Officer and CFO
Fast Retailing Co., Ltd.

Business Performance Review and Outlook
Fast Retailing achieved record results in FY2022 with revenue
increasing and profit expanding significantly. Revenue totaled¥2.3011 trillion (+7.9% year on year) and operating profit
totaled ¥297.3 billion (+19.4%). As the COVID-19 pandemic
was brought under control, sales recovered steadily in all
markets thanks to a recovery in clothing demand, ourconsistent strengthening of LifeWear branding worldwide, andour nimble response to changing production, distribution, andother environments. After the period-end exchange rate
depreciated by a significant ¥29 to 1 USD=138.7 JPY, werecorded foreign exchange gains of ¥114.3 billion on
foreign-currency denominated financial assets. As a result,profit before income taxes totaled ¥413.5 billion (+55.6%) andprofit attributable to owners of the Parent totaled ¥273.3 billion(+60.9%). The weaker yen boosted performance, but we stillachieved record results after stripping out this impact.
UNIQLO International performed especially well, generating
revenue of ¥1.1187 trillion (+20.3%) and operating profit of¥158.3 billion (+42.4%). Profit from the Greater China region
slumped due to COVID-19 restrictions on movement, but theSouth Asia, Southeast Asia & Oceania region (Southeast Asia,
Australia, and India) reported an impressive sales increase ofroughly 60% to ¥240 billion and a greatly-improved operating

Performance by Group Operation
2021

(FY)

UNIQLO Japan

UNIQLO International

GU

Global Brands*

Billions of yen

YoY change
Billions of yen

2022%changeBillions of yen

YoY change
Billions of yen%changeRevenue¥842.6+¥35.7+4.4¥810.2¥(32.3)(3.8)

Operating profit

123.2

+18.5

+17.7

124.0

+0.8

+0.6

Revenue

930.1

+86.2

+10.2

1,118.7+188.6+20.3

Operating profit

111.2

+60.9

+121.4

158.3

+47.1

+42.4

Revenue

249.4

+3.3

+1.4

246.0

(3.3)

(1.4)

Operating profit

20.1

(1.6)

(7.6)

16.6

(3.5)

(17.4)

Revenue

108.2

(1.4)

(1.3)

123.1

+14.9

+13.8

(1.6)

+11.1

—

(0.7)

+0.8

—

Operating profit*Global Brands includes Theory, PLST, Comptoir des Cotonniers, Princesse tam.tam., and J Brand (subsidiary company liquidated in FY2021).
Note: Consolidated revenue also includes items reported by Fast Retailing Co., Ltd., the Parent company, such as real estate leasing. Consolidated operating profit includes Fast Retailing
operating profit.

80

Operating Profit by Group Operation（億円）
UNIQLO Japan（億円）
UNIQLO International

（億円）
GU

（億円）
Global Brands

1,200

1,200

1,200

1,200

900

900

900

900

600

¥124.0¥158.3billionbillion

600

600

600

300

300

300

¥16.6

300

¥ - 0.7

billionbillion

0
(FY)

0

2019

2020

2021

2022

(FY)

0

2019

2020

2021

2022

profit margin of roughly 19%. North America and Europe (ex.
Russia) reported sharply higher revenue, a move into the black,and an operating profit margin of roughly 10%. UNIQLO is
gradually establishing its presence and attracting newcustomers. Meanwhile, UNIQLO Japan reported revenue of¥810.2 billion (−3.8%) and operating profit of ¥124.0 billion(+0.6%). While first-half revenue and profit declined, revenue
increased and profit rebounded sharply in the second half
thanks to stronger sales of going-out clothes and summer
ranges. GU reported lower full-year revenue and profit but
second-half performance recovered as revenue increased andprofit rebounded on improved product lineups.
Our FY2023 consolidated forecasts (as of January 12, 2023)
include revenue of ¥2.65 trillion (+15.2%), operating profit of¥350 billion (+17.7%), profit before income taxes of ¥350 billion(−15.4%), and profit attributable to owners of the Parent of¥230 billion (−15.9%). We used the period-start exchange ratesof 1 USD=138.7 JPY and 1 RMB=20 JPY for the UNIQLOInternational estimates. We expect all business segments togenerate higher revenue and profit with UNIQLO International
proving the key driver of performance.

Expanding Business to No.1 Global Brand,
Counter Inflation Through Low-cost Management
FY2023 will be about transforming operational structures andbuilding the foundation for a global No.1 brand based on four
initiatives. The first involves realizing business that satisfies
customer needs and encourages appreciation of product value.
Here, we aim to expand sales and protect gross margins byoffering higher value-added products and services and pursuinga business that does not rely on discounting. This will meanchanging our global product development, transforming
customer communication to achieve a fused e-commerce and

(FY)

0

2019

2020

2021

2022

(FY)

2019

2020

2021

2022

physical store shopping experience, and adapting our supply
chain management to facilitate more accurate inventory
management. The second initiative involves globalizing ourheadquarter functions to earn profit worldwide. To accelerate
global growth we need to change our global headquarters froma Japan-centric format to one where cross-border management
teams make decisions guided by frontline conditions and actual
products and realities in individual markets. We intend toaccelerate store openings in each market and further diversify
earnings pillars at UNIQLO International as the key driver ofGroup growth. We aim to further enhance our establishedbrand position and expand operations in the Greater China andthe S/SE Asia & Oceania regions. Having established profitable
operations in North America and Europe, we intend to swiftly
expand our business scale by strengthening marketing andencouraging LifeWear loyalty. The third initiative focuses on
accelerating sustainability initiatives in tandem with business
operations. We aim to produce high-quality, long-lasting clothes
with minimal environmental impact that are made in healthy andsafe working environments and can be recycled or reused after
the point of sale. We are also steadily pursuing measures toachieve announced targets on greenhouse gas emissions,diversity, and social responsibility activities. The fourth and final
initiative focuses on productivity and pursuing thorough,low-cost management in an inflationary environment. We will
pursue our goal of “only producing, transporting and selling
what is necessary” to an even higher degree; achieving an
inventory-efficient and cost-efficient business, unifying global
business processes and progressing automation to boost
business efficiency, and adjusting team workstyles for increased
productivity. We are proactively investing in the humanresources required to achieve these aims.

81

FINANCIAL AND NON-FINANCIAL INFORMATION MESSAGE FROM OUR CFO

Increase Cash-generating Capabilities for
Growth Investment, Ready Liquidity andShareholder Returns
Fast Retailing’s financial strategy focuses on maintaining fiscal
soundness, maximizing cash flow from business activities, andutilizing that cash effectively for aggressive growth investment,
ready liquidity, and stable shareholder returns. We strive to holdthree to five months’ worth of monthly sales as ready liquidity todeal with unforeseen sales fluctuations in view of the need forworking capital and earmarked future investment funds, and thespecial nature of running a business with inherent inventoryrisks. Cash and cash equivalents totaled ¥1.3582 trillion at theend of August 2022, an appropriate level that equates to four tofive months of our short-term ¥3 trillion annual sales target.
Shareholder returns are a top priority. We pay consistent andappropriate dividends that mirror corporate performance andconsider operational funding requirements and financial
soundness. In FY2022, we paid a dividend of ¥206.7 per share(revised to reflect the stock split conducted on March 1, 2023),
which translates into a 23.2% dividend payout ratio. The¥114.3 billion foreign exchange gain on foreign-currency
denominated assets generated by yen weakness temporarily
boosted profit attributable to owners of the Parent. The payout
ratio was typical if we exclude that factor.

A Solid Balance Sheet toSupport Sustainable Growth
Total assets increased ¥673.7 billion to ¥3.1837 trillion at theend of August 2022 primarily due to a ¥180.5 billion increase in
cash and cash equivalents, a ¥91.0 billion increase in inventory,
and a ¥209.1 billion increase in derivative financial assets. Total
liabilities increased ¥220.6 billion to ¥1.5683 trillion due to a¥130.2 billion increase in trade and other payables. Total equity
increased ¥453.1 billion to ¥1.6154 trillion due to a ¥220.3
billion increase in retained earnings and a ¥222.2 billion
increase in other components of equity. Consequently, the ratioof equity attributable to owners of the Parent to total assets
increased 4.6 points to 49.1%.
We aim to secure a minimum ratio of equity attributable toowners of the Parent to total assets of 50% over the medium tolong term because a solid financial base is essential for
proactive management and future global growth. ROE
increased 4.0 points to 20.4%. We will maintain ROE between
15 and 20%.

82

Cash Flow Information (billions of yen)
Cash and cash equivalents
at beginning of year

September 1,
2021

1,177.7
Operatingcash flows+430.8Investingcash flows( 212.2)
Financing
cash flows( 213.0)
Effect of exchange ratechanges on cash and cash
equivalents+175.0Cash and cash equivalents
at end of year

August 31,
2022

1,358.2

Balance Sheet (billions of yen)
Total assets

Total assets

2,509.9

3,183.7

Liabilities
Current
assetsCurrent
assetsLiabilities

1,347.6

1,568.3

2,178.8

1,724.6
EquityNon-current
assetsEquity1,162.2

785.3
August 31, 2021

Non-current
assets1,615.4

1,004.9
August 31, 2022

Continuing Proactive Investment to
Expand Operations
We are accelerating our global store network expansion while
also aggressively investing in systems to progress Ariake
Project objectives and other areas and expand operations.
Capital expenditure decreased ¥14.1 billion to ¥86.5 billion in
FY2022 (UNIQLO Japan: ¥21.5 billion, UNIQLO International:¥24.6 billion, GU: ¥4.8 billion, Global Brands: ¥1.3 billion, andsystems: ¥34.2 billion). In addition to new store investment, weEstablishing Firm Risk Management System toClarify Risks and Strengthen Our Response
Fast Retailing’s Risk Management Committee reports directly to
the Board and works to regularly identify latent risks in businessactivities and to establish and strengthen frameworks to detectand manage material risks. The committee, which is chaired bymyself as Group CFO, unifies the management of risk across
Fast Retailing, analyzing and assessing the frequency andimpact of risks on business, prioritizing high-risk areas when
discussing countermeasures to prevent these risks fromoccurring or to ensure a speedy response should they
eventuate. The committee also submits reports on significant
risks to the Board and offers concrete support to departments
dealing with risks. The committee met four times in FY2022 todiscuss information security risks and risks relating tointernational circumstances, to evaluate risks highlighted ininternal audits, and to advise on the creation of countermeasuremechanisms.

also continued to invest in automated warehouses worldwide.
In FY2023, we expect capital expenditure will increase ¥8.8
billion to ¥95.3 billion as we plan to increase store investment inline with higher new store openings and increase investment inautomated warehouses. Of that total, ¥41.1 billion is earmarked
for planned new store investment and ¥54.1 billion forinvestment in automated warehouses and systems. We plan toopen 195 UNIQLO International stores, 50 GU stores, 40
UNIQLO Japan stores, and 25 Global Brands stores.

Risk Management Framework
Board of Directors
Approves and provides
instructions regarding
priority business risks

Risk Management
Committee
Chairperson:

G roup CFO

Members:

E xternal directors

Observers:

S tanding
statutory auditors

E xecutive officers

 eports on priority
Rbusiness risks
Provides concrete support toeach department regarding
risk countermeasures

VariousCommittees
Human Rights Committee
Business Ethics Committee
Code of Conduct Committee
Sustainability Committee,etc.

 ommittees report on risks inCtheir relevant fieldProvides specific direction toeach department regarding
risk countermeasures

Various Businesses
and Brands
Reports on individual risks
Creates and implements
preventive measures

Disclosure Under the TCFD Framework
Recognizing the enormous impact of climate change on society, we arestrengthening efforts to arrest rising average global temperatures and fulfill the
Paris Agreement. We strive to fully understand the impact of climate-related risks
on our business and to formulate and implement relevant strategies. In June
2021, we expressed support for Task Force on Climate-related Financial
Disclosures (TCFD) recommendations and disclosed information based on the
TCFD framework in December 2021.

More information
is available here.

83

FINANCIAL SUMMARY (IFRS)FAST RETAILING CO., LTD. and consolidated subsidiaries
Fiscal years ended August 31

2013

2014

2015

2016

¥1,142,971¥1,382,935¥1,681,781¥1,786,473

Operating profit

134,101

130,402

164,463

127,292

EBITDA*1

157,708

161,210202,221164,089

Profit before income taxes

155,732

135,470

180,676

90,237

Profit attributable to owners of the Parent

104,595

74,546

110,027

48,052

Net cash generated by operating activities

99,474

110,595

134,93198,755

Net cash (used in)/generated by investing activities(62,584)(56,323)(73,145)(245,939)

Free cash flow*2

36,89054,272

61,786(147,184)

Net cash (used in)/generated by financing activities(24,226)(44,060)(41,784)

201,428

Cash and cash equivalents*

296,708

314,049355,212385,431

Depreciation and amortization

23,60730,80837,75836,797

Capital expenditures

39,681

58,81462,461

52,387

Total assets¥ 901,208¥ 992,307¥1,163,706¥1,238,119

Total equity

589,726

636,041

774,804

597,661Interest-bearing debt

37,25937,561

38,035

283,465

Operating profit margin (%)

11.7%

9.4%

9.8%

7.1%

ROE/Ratio of profit to equity attributable to owners of the Parent (%)

21.7

12.5

16.1

7.3

Ratio of equity attributable to owners of the Parent to total assets (%)

63.3

62.3

64.5

46.4

Debt-equity ratio (%)

6.5

6.1

5.1

49.3

Dividend payout ratio (%)

28.2

41.0

32.4

74.3

For the year

FINANCIAL AND NON-FINANCIAL INFORMATION FINANCIAL SUMMARY

Revenue

3

At year-end

Reference indices

Per share data (actual yen, dollar amount)*4
Profit attributable to owners of the Parent (EPS)

¥

342.2

¥

243.8

¥

359.8

¥

157.1

1,866.0

2,022.5

2,455.4

1,878.1

96.7

100.0

116.7

116.7

106,073,656

106,073,656

106,073,656

106,073,656

¥

¥

¥

¥

Equity attributable to owners of the Parent
Cash dividends
Other data (at fiscal year-end)
Number of shares outstanding
Market capitalization (¥ billion, $ million)*

5

Number of subsidiaries
Total number of stores
Total sales floor space (m )*2

6Number of full-time employees*

73,383.7

3,452.6

5,225.7

3,854.7

102

112

119

120

2,449

2,753

2,978

3,160

1,387,367

1,835,095

2,030,031

2,188,688

23,98230,44841,646

43,639*1	EBITDA = Operating profit + Depreciation and amortization.
*2 Free cash flow = Net cash generated by operating activities + Net cash (used in)/generated by investing activities*3	Cash and cash equivalents = cash and bank deposits + term deposits of less than 3 months + securities*4 We implemented a three-for-one split of the Company’s common stock on March 1, 2023. Dividend payments for past fiscal years have been adjusted to reflect this stock split.

84

Millions of yen

Thousands of
U.S. dollars*5

2017

2018

2019

2020

2021

2022

YoY

2022

¥1,861,917¥2,130,060¥2,290,548¥2,008,846¥2,132,992¥2,301,122+7.9%$16,595,430

176,414236,212257,636

149,347

249,011297,325+19.4

2,144,273

216,102281,267

306,112327,195

426,922477,600+11.9

3,444,398

193,398

242,678

252,447

152,868

265,872

413,584+55.6

2,982,724

119,280

154,811

162,578

90,357

169,847

273,335+60.9

1,971,262

212,168

176,403

300,505

264,868

428,968

430,817+0.4

3,107,006

122,790(57,180)(78,756)(75,981)(82,597)(212,226)+156.9(1,530,554)

334,958

119,223

221,748

188,887

346,370

218,590(36.9)

1,576,452(50,836)

198,217(102,429)(183,268)(302,985)(213,050)(29.7)(1,536,496)

683,802

999,697

1,086,519

1,093,531

1,177,736

1,358,292+15.3

9,795,848

39,68845,05548,476

177,848

177,910

180,275+1.3

1,300,124

59,75569,38085,20182,736100,653

86,516(14.0)

623,946¥1,388,486¥1,953,466¥2,010,558¥2,411,990¥2,509,976¥3,183,762+26.8%$22,960,931

762,043902,777

983,534

996,079

1,162,298

1,615,402+39.0

11,650,096

281,512544,502513,405

484,496382,634

371,496(2.9)

2,679,193

9.5%

11.1%

11.2%

7.4%

11.7%

12.9%

+1.2 pts.

12.9%

18.3

19.4

18.0

9.5

16.4

20.4

+4.0

20.4

52.7

44.2

46.7

39.7

44.5

49.1

+4.6

49.1

38.5

63.1

54.7

51.0

34.5

23.9

(10.6)

23.9

29.9

29.0

30.1

54.2

28.9

23.2

(5.7)

23.2

¥

389.9

¥

505.9

¥

531.1

¥

295.1

¥

554.4

¥

891.8

+60.9%$

6.4

2,391.8

2,819.5

3,065.5

3,122.9

3,643.5

5,094.0

+39.8

36.7

116.7

146.7

160.0

160.0

160.0

206.7

+29.2

1.5

106,073,656

106,073,656

106,073,656

106,073,656

106,073,656

106,073,656

¥

¥

¥

¥

¥

¥

—

106,073,656

8,692.7+13.0%

121

130

133

134

130

128

(2)

128

3,294

3,445

3,589

3,630

3,527

3,562

+35

3,562

2,392,618

2,671,629

2,881,485

3,047,360

3,207,524

3,384,189+5.5%

3,384,189

44,424

52,83956,52357,72755,58957,576+1,98757,576

3,338.1

5,495.6

6,602.0

6,712.3

7,692.5$

62,691*5	Calculations are based on the closing share price of ¥81,950 at the end of August 2022 and an exchange rate of ¥138.66 to 1 USD.
*6	Total sales floor space includes only directly operated stores.
*7	The total number of employees does not include operating officers, junior employees, part-time workers, or temporary staff seconded from other companies.

85

HISTORY

1949.3

1999.2

2006.6

Men’s Shop Ogori Shoji isfounded in Ube City,
Yamaguchi Prefecture, Japan.

Company stock is listed on the First
Section of the Tokyo Stock Exchange.

Strategic business partnership isestablished between UNIQLO andToray Industries, Inc.

2000.10

2006.91963.5Ogori Shoji Co., Ltd. is establishedwith capital of ¥6 million.

1984.6
The first UNIQLO store opens in
Hiroshima (closed in 1991).

E-commerce business launches.

2001.9HISTORY

First UNIQLO roadside store opens.

UNIQLO Design Studio(current R&D Center) is established.

2002.9First UNIQLO store in Mainland
China opens in Shanghai.

2006.10First GU store opens in Chiba
Prefecture, Japan. (closed in 2012)2006.11First UNIQLO global
flagship store opens in SoHo,
New York City.

2010.10First UNIQLO Taiwan store
opens in Taipei.

2010.11First UNIQLO Malaysia store
opens in Kuala Lumpur.

2011.2

2004.1

Global Partnership Agreement with
UNHCR is established, reinforcing
All-Product Recycling Initiative.

Fast Retailing invests in Link
International Co., Ltd. (now LINKTHEORY JAPAN CO., LTD.),developer of Theory brand apparel.

First UNIQLO Thailand store
opens in Bangkok.

2011.92011.91991.92007.11Company name is changed to
FAST RETAILING CO., LTD.

Global flagship store,
UNIQLO 311 Oxford Street Store,
opens in London.

1994.7Company stock is listed on the
Hiroshima Stock Exchange.

2004.91998.10UNIQLO makes Global Quality
Declaration, and cashmere
campaign generates high level ofconsumer interest.

¥1,900 fleece campaign
succeeds in attracting large
public attention.

UNIQLO begins its All-Product
Recycling Initiative (expanded into
RE.UNIQLO from 2020)

First UNIQLO outside Japan store
opens in London.

2002.4
1985.6

2010.5Global flagship store, UNIQLO West
Nanjing Road Store,
opens in Shanghai.

2007.12First UNIQLO France store
opens in Paris.

Global flagship store, UNIQLO
Mingyao Department Store,
opens in Taipei. (UNIQLO TAIPEI
store refurbished in 2021)

2011.10Global flagship store, UNIQLO NewYork 5th Avenue Store, opens in
New York City.

2009.3
LINK THEORY JAPAN CO., LTD.
becomes a subsidiary.

2009.4First UNIQLO Singapore store opens(closed in 2021).

2004.12UNIQLO Design Studio,
New York, Inc. is established.

1998.11First urban UNIQLO store opens in
the fashionable Harajuku district ofTokyo (closed in 2012).

2009.10Global flagship store,
Paris Opera Store, opens.

2012.3Global flagship store,
UNIQLO Ginza, opens in Tokyo.

2005.9First UNIQLO South Korea store
opens in Seoul. (closed in 2021)

2005.9First UNIQLO Hong Kong store
opens in the Tsim Sha Tsui
shopping district.

86

2005.112010.4

Holding company structure isadopted at Fast Retailing.

First UNIQLO Russia store
opens in Moscow.

2012.3
GU flagship store opens
in Ginza, Tokyo.

2012.6

2014.102018.10First UNIQLO Philippines store
opens in Manila.

Global flagship store,
UNIQLO OSAKA, opens in Osaka.

Global flagship store,
UNIQLO Manila store,
opens in the Philippines.

2012.9Global hotspot store, BICQLO
Shinjuku East Exit Store,
opens in Tokyo. (closed in 2022)

2013.4Global flagship store, UNIQLO Lee
Theatre Store, opens in Hong Kong.

2013.62015.102020.6
Opens UNIQLO TOKYO in Ginza,
our LifeWear showcase
global flagship store.

First UNIQLO Belgium store opens
in Antwerp.

2016.4
Construction is completed onstate-of-the-art distribution centerin Ariake, Tokyo.

2018.10First UNIQLO Indonesia
store opens in Jakarta.

2020.62013.9Fast Retailing forms alogistics-related strategic global
partnership with materials handlingequipment firm Daifuku Co., Ltd.

First GU outside Japan store opens
in Shanghai.

2018.102020.92013.9The Ariake distribution center starts
operating as a fully automateddedicated online sales warehouse.

Global flagship store,
UNIQLO SHANGHAI,
opens in Mainland China.

2016.9UNIQLO Orchard Central Store
opens as the first UNIQLO global
flagship store in Southeast Asia.

Fast Retailing selected for the MSCIJapan ESG Select Leaders Index.

UNIQLO launches RE.UNIQLO topromote the recycling of collected
secondhand clothing into new
clothing products.

2019.4

RECYCLEREUSE
REDUCEFirst UNIQLO Denmark store opens
in Copenhagen.

2016.9RE.UNIQLO はじめます。

First UNIQLO Canada store
opens in Toronto.

2021.11UNIQLO BEIJING SANLITUN
global flagship store opensin Mainland China.

2017.9First UNIQLO Spain store opens
in Barcelona.

2019.92014.3First UNIQLO Italy store opens
in Milan.

Fast Retailing Hong Kong
Depository Receipts (HDR) arelisted on the Stock Exchange ofHong Kong.

2018.6
Included in FTSE 4Good IndexSeries and FTSE Blossom Japan
Index for responsible social
investment.

2014.3Global hotspot store, UNIQLO
Ikebukuro Sunshine 60 Street
Store, opens in Tokyo.

2022.32019.10First UNIQLO India store opens
in New Delhi.

2018.8

Donates 10 million USD and
100,000 blankets, HEATTECH andother clothing items to UNHCR(supporting humanitarian aid activities for evacuees in Ukraine andsurrounding countries).

2022.4First UNIQLO Sweden store opens
in Stockholm.

Moves to the new Prime Market
section on the Tokyo Stock
Exchange.

2022.102014.4First UNIQLO Australia store
opens in Melbourne.

2019.112014.4

Opens first UNIQLO store (a pop-up
store) in Warsaw, Poland.

Forms a global partnershipagreement for supply chaintransformation with MUJIN, Inc,and Exotec Solutions SAS.

First UNIQLO Germany store,
Tauentzien global flagship,
opens in Berlin.

2014.42018.92019.12Global hotspot store, UNIQLO
Okachimachi Store, opens in Tokyo.

First UNIQLO Netherlands store
opens in Amsterdam.

First UNIQLO Vietnam store opensin Ho Chi Minh City.

87

INVESTOR INFORMATION (As of August 31, 2022)

Principal Shareholders*

Stock Exchange Listing

Tokyo Stock Exchange (Prime Market)
Securities Code: 9983
The Stock Exchange of Hong Kong (Main Board)
Securities Code: 6288
Stock Information

Number of shares authorized

300,000,000

Number of issued and outstanding shares(including treasury stock)106,073,656

INVESTOR INFORMATION / CORPORATE INFORMATION

Number of shareholders(including holders of treasury stock)

11,472Distribution of Share Ownership*

Individuals, others36.96%
Financial institutions32.88%
Foreign investors18.75%
Other companies andcorporations8.00%
Securities companies3.41%*The investment ratio is calculated excluding
treasury stock.

Number ofsharesPercentage*of total sharesin issue (%)

The Master Trust Bank of Japan, Ltd.

22,907,300

22.42

Tadashi Yanai

22,037,284

21.57

Custody Bank of Japan, Ltd.

11,108,100

10.87

TTY Management B.V.

5,310,000

5.20

Kazumi Yanai

4,781,808

4.68

Koji Yanai

4,781,277

4.68

Fight & Step Co., Ltd.

4,750,000

4.65

MASTERMIND Co., Ltd.

3,610,000

3.53

Teruyo Yanai

2,327,848

2.28

JP MORGAN CHASE BANK

2,148,607

2.10*In addition to the above, the Company holds 3,883,973 shares of treasury stock.

Stock Price and Trading Volume*
Stock price (yen)120,000

105,000

90,00060,00060,16030,000
Trading volume (thousands of shares)
15,000
7,500
0

9
2020

10

11

12

1
2021

2

3

4

5

6

7

8

9

10

11

12

1
2022

2

3

4

5

6

7

8

9

10

11

*The stock price data shows closing prices.

Introduction of Website Contents

88

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CORPORATE INFORMATION (As of December 31, 2022)

Recognition

Corporate Data
Trade NameFAST RETAILING CO., LTD.

Chairman, President & CEO

Tadashi Yanai
10717-1 Sayama, Yamaguchi City
Yamaguchi 754-0894, Japan
Midtown Tower, 9-7-1 Akasaka, Minato-ku
Tokyo 107-6231, Japan
6F UNIQLO CITY TOKYO, 1-6-7 Ariake, Koto-ku,
Tokyo 135-0063, JapanMay 1, 1963
¥10,273 million
Control and management of overall Group
activities as owner and holding company

Head Office
Roppongi Office
Ariake Office
Established
Paid-in CapitalLine of Business
Number of Full-time
Employees (Consolidated)
Fiscal Year Ends
Annual Shareholders’ Meeting
Transfer Agent
Number of Shares per
Trading Unit

*1*2

57,576 (As of August 31, 2022)
August 31
Late November
Mitsubishi UFJ Trust and Banking Corporation ShinTOKYO Post Office post office box No. 29 137-8081,
Japan Telephone: 0120-232-711 (From Japan)
100 shares (Tokyo Stock Exchange)
300 HDR (The Stock Exchange of Hong Kong)*1 The use by FAST RETAILING CO., LTD. Of any MSCI ESG RESEARCH LLC or its
affiliates (“MSCI”) data, and the use of MSCI logos, trademarks, service marks orindex names herein, do not constitute a sponsorship, endorsement, recommendation, or promotion of Fast Retailing Co., Ltd. by MSCI. MSCI services and data are
the property of MSCI or its information providers, and are provided ‘as-is’ and without warranty. MSCI names and logos are trademarks or service marks of MSCI.
*2 FTSE Russell confirms that Fast Retailing Co., Ltd. has been independently assessed according to the index criteria, and has satisfied the requirements tobecome a constituent of the FTSE4Good Index Series and the FTSE Blossom
Japan Index Series. Created by the global index and data provider FTSE Russell,
these index series are designed to measure the performance of global companies
and Japanese companies demonstrating strong Environmental, Social andGovernance (ESG) practices. These index series are used by a wide variety ofmarket participants to create and assess responsible investment funds and otherproducts.

1 UNIQLO CO., LTD.

Main Group Companies

2 FAST RETAILING (CHINA) TRADING CO., LTD.
3 UNIQLO TRADING CO., LTD.
4 FAST RETAILING (SHANGHAI) TRADING CO., LTD.
5 FRL Korea Co., Ltd.
6 FAST RETAILING (SINGAPORE) PTE. LTD.

11

7 UNIQLO (THAILAND) COMPANY LIMITED

16 19
20

8 PT. FAST RETAILING INDONESIA
2 3

1 14
18

10 17

9 UNIQLO AUSTRALIA PTY LTD

4 15

10 Fast Retailing USA, Inc.

12

12 UNIQLO VIETNAM Co., Ltd

6

13 UNIQLO INDIA PRIVATE LIMITED

13
7

5

11 UNIQLO EUROPE LIMITED

14 G.U. CO., LTD.

815 GU (Shanghai) Trading Co., Ltd.
16 FAST RETAILING FRANCE S.A.S.
17 Theory LLC

918 PLST CO., LTD.
19 COMPTOIR DES COTONNIERS S.A.S.
20 PRINCESSE TAM. TAM S.A.S.

	Contact Us
FAST RETAILING CO., LTD.
www.fastretailing.com/eng/
Midtown Tower, 9-7-1 Akasaka, Minato-ku
Tokyo 107-6231, Japan
Telephone: +81-3-6865-0050
9AM–4PM (JST) Monday–Friday (except national holidays)	Forward-looking Statements
Statements in this Integrated Report with respect to the Company’s plans,
strategies, forecasts, and other statements that are not historical facts areforward-looking statements that are based on management’s judgment inlight of currently available information. Factors that could cause actual
results to differ materially from our earnings forecasts include, without
limitation, global economic conditions, our response to market demand
for and competitive pricing pressure on products and services, andcurrency exchange rate fluctuations.

This report is printed with non-VOC ink for paper certified by the Forest StewardshipCouncil® (FSC®), an international labeling scheme that provides a credible guaranteethat the raw materials used in the product come from an environmentally managed forest.

Published
February 2023

89

FAST RETAILING CO., LTD.
w w w. f a s t r e t a i l i n g . c o m

Cover: UNIQLO Soho New York Store (global flagship store)