Other items provided electronically for the 2023
General Meeting of Shareholders (Items
Omitted from the hardcopy submission)■ Business report

Number of Stores by Business Segment ……

1

Employees …………………………………………

2

Principal Lenders …………………………………

2

Shares ……………………………………………

3

Items Relating to External Officers …………

4

Independent Auditors ……………………………

6

Share Subscription Rights ……………………

8

Ensuring Proper Business Operations………
(Corporate Governance)

12■ Consolidated Statement of……………………

19………………………

20■ Balance Sheet………………………

35■ Statement of Income………………………

36…………………………

37■ Notes to Financial Statements…………………

38

Changes in Equity■ Notes to the Consolidated

Financial Statements■ Statement of Changes

in Net Assets■ INDEPENDENT AUDITOR'S…………………

46…………………

49

REPORT■ Report by the Audit &Supervisory Board
The items listed above are not included in the documents delivered to shareholders
who have requested the hardcopies ,in accordance with laws and regulations andArticle 15 of the Company’s Articles of Incorporation.
However, at the general meeting of shareholders, a document stating the items
subject to the electronic provision measures, excluding the items listed above, will
be sent to all shareholders regardless of whether it has been requested or not.

FAST RETAILING CO., LTD (the “Company”)
The Company and its consolidated subsidiaries (the “Group”)

Business report
1 Number of Stores by Business Segment(Unit: Stores)

FY2022End Aug.

FY2023Open

Close

End Aug.

809

34

43

800

Directly operated

799

34

43

790

Franchise

10

0

0

10

1,536

158

60

1,634

996

77

42

1,031

China

897

70

42

925

Hong Kong

30

3

0

33

Taiwan

69

4

0

73

South Korea

122

8

4

126

South, Southeast Asia and Oceania

293

62

13

342

Singapore

27

5

3

29

Malaysia

51

4

1

54

Thailand

56

12

6

62

The Philippines

65

9

3

71

Indonesia

49

15

0

64

Australia

26

7

0

33

Vietnam

12

7

0

19

UNIQLO Japan:

UNIQLO International:*2

Greater China

7

3

0

10

USA

43

6

0

49

Canada

16

2

0

18

Europe*2

66

3

1

68

U.K.

15

2

0

17

France

26

0

1

25

Germany

10

0

0

10

Belgium

3

0

0

3

Spain

5

1

0

6

Sweden3003

the Netherlands

2

0

0

2

Denmark

1

0

0

1

India

1

0

0

1

GU:

449

52

38

463

Global Brands:

719

41

79

681

Theory*1

437

18

19

436

Italy

1

88

3

39

52

COMPTOIR DES COTONNIERS*1

111

11

14

108

PRINCESSE TAM. TAM*1

83

9

7

85

3,513

285

220

3,578

PLST*

Total

*1 Including franchise stores*2 The Russian business is not included in the aggregate because it has been suspended.
(Note) This table does not include mina or Grameen UNIQLO.

12 Employees(as at 31 August 2023)（1）Employees of the Group
Name of segment

Change from Previous
Consolidated Fiscal Year

Number of employees

UNIQLO Japan

12,482(22,781)-216

UNIQLO International

35,666(17,999)+2,242

GU

5,419(12,766)+359

Global Brands

3,316

(657)

-83

56,883(54,203)+2,302Others

1,281

(133)

-16

All companies (shared)

1,707

(13)

+9

59,871(54,349)+2,295

Total for reportable segments

Total(Notes) 1. The number of employees does not include operating officers, junior employees, or part-time workers.
2. The average number of registered personnel for junior employees and part-time workers for the year are shown inbrackets ( ).
3. The number of employees given as “All companies (shared)” represents administrative employees who could not be
categorized in a specific business segment.

（2）Employees of the Company
Number of
Employees
1,707

Change from Previous
Fiscal Year
+9

Average Age

Average Years ofService

38 years and 10 months

4 years and 11 months(Notes) 1. The number of employees does not include operating officers, junior employees, part-time workers or temporary
staff seconded from other companies.
2. When an employee is transferred from a subsidiary, the average years of service does not include the number of years
spent at the subsidiary.

3 Principal Lenders(as at 31 August 2023)

There are no significant borrowings, and the information is omitted.

2

4 Shares(as at 31 August 2023))（1） Total number of shares authorized for issue

900,000,000 shares（2） Total number of issued shares

318,220,968 shares（3） Number of shareholders

18,552 shareholders（4） Number of shares per trading unit

100 shares（5）Major shareholders with the 10 highest ratios of number of shares outstanding
Investment in the Company

Major Shareholder

Number of Shares Held

Percentage of Shares Held

The Master Trust Bank of Japan, Ltd.
(Trust account)

67,016 thousand

21.85%

Tadashi Yanai

59,751 thousand

19.48%

Custody Bank of Japan, Ltd.
(Trust account)

32,868 thousand

10.72%TTY Management B.V.

15,930 thousand

5.19%

Kazumi Yanai

14,345 thousand

4.68%

Koji Yanai

14,343 thousand

4.68%

Fight & Step Co., Ltd.

14,250 thousand

4.65%

MASTERMIND Co., Ltd.

10,830 thousand

3.53%

8,429 thousand

2.75%

7,436 thousand

2.43%

STATE STREET BANK AND TRUST COMPANY(Standing proxy Mizuho Bank, Ltd.)JP MORGAN CHASE BANK
(Standing proxy Mizuho Bank, Ltd.)(Note) The investment ratio is calculated excluding treasury stock (11,552,700 shares).

3

5 Items Relating to External Officers（1）Relationship between the Company and companies where External Officers holdsignificant concurrent offices
As stated on P.46 1（1）Directors and Audit & Supervisory Board Members (as at 31 August 2023) of theBusiness Report included in the AGM Notice (hardcopy submission).

（2）Principal Activities in the Fiscal Year Ended 31 August 2023
Position

Name

Attendance

Independent
NonExecutive
Director

Nobumichi
Hattori

13 out of 13
Board of Directors’Meetings

Independent
NonExecutive
Director

MasaakiShintaku

13 out of 13
Board of Directors’Meetings

Independent
NonExecutive
Director

NaotakeOno

12 out of 13
Board of Directors’Meetings

Independent
NonExecutive
Director

Kathy
MitsukoKoll

13 out of 13
Board of Directors’Meetings

Activities
We expect Nobumichi Hattori will always provide
candid and accurate advice and suggestions from an
independent standpoint based his on extensive
knowledge and M&A expertise and other corporate
strategies cultivated over several years he spentworking at one of the world’s leading investmentbanks as well as his deep knowledge of our company
acquired through the years of service. During the
fiscal period, he provided the said clear advice
and recommendations not only in Board of Directors
meetings, but also in the Risk Management
Committee and the Nomination and Remuneration
Advisory Committee.
We expect Masaaki Shintaku will always provide
candid and accurate advice and suggestions from an
independent standpoint based his extensive
knowledge and expertise of global corporate
management cultivated during his time inmanagement at one of the world’s leading
information systems companies as well as his deep
knowledge of our company acquired through theyears of service. During the fiscal period, he provided
the said clear advice and recommendations not only
in Board of Directors meetings, but also in the Human
Resources Committee, theIT
Investment
Committee, and the Nomination and Remuneration
Advisory Committee.
We expect Naotake Ono will always provide candid
and accurate advice and suggestions from an
independent standpoint based his extensive
knowledge of corporate management andmanagement training cultivated over the years ofmanagement experience at Japan’s largest
construction company. During the fiscal period, heprovided the said clear advice and recommendations
to the Board of Directors and the Nomination andRemuneration Advisory Committee.
We expect Kathy Mitsuko Koll to offer advice andsuggestions based on her extensive knowledge ofglobal management and ESG challenges cultivatedduring her career in a leading global securities
company and an ESG-focused global venture
capital fund. During the fiscal period, she provided
accurate advice and suggestions based on the
aforementioned perspectives to the Board of
Directors, the Sustainability Committee, and theNomination and Remuneration Advisory Committee.

4Independent
NonExecutive
Director

Joji
Kurumado

10* out of 10
Board of Directors’Meetings

Independent
NonExecutive
Director

YutakaKyoya

9* out of 10
Board of Directors’Meetings

Keiko
Kaneko13 out of 13
Board of Directors’Meetings
12 out of 13
Audit &
Supervisory
Boards’ Meetings

Takao
Kashitani

12 out of 13
Board of Directors’Meetings
12 out of 13
Audit &
Supervisory
Boards’ Meetings

Masakatsu
Mori

13 out of 13
Board of Directors’Meetings
13 out of 13
Audit &
Supervisory
Boards’ Meetings

Audit &
Supervisory
Board
MemberAudit &
Supervisory
Board
MemberAudit &
Supervisory
Board
MemberWe expect Joji Kurumado to provide advice andsuggestions based on his wide-reaching knowledgeof store development, management, and overseas
business obtained during his involvement overmany years at a major general construction
company. He offered appropriate advice andproposals during the business period in Board of
Directors’ Meetings and the Nomination andRemuneration Advisory Committee.
We expect Yutaka Kyoya to provide advice andsuggestions based on his wide-reaching knowledge
particularly in the field of consumer businessobtained during his involvement over many years at
a major general trading company. He offeredappropriate advice and proposals during thebusiness period in Board of Directors’ Meetings, the
Human Resources Committee, and the Nomination
and Remuneration Advisory Committee.
We expect Keiko Kaneko to use her specialist
knowledge and rich expertise as a lawyer involved
in international corporate legal affairs to conduct
audits from a broad and advanced perspective andto offer advice and suggestions to ensure fair andappropriate decision-making by the Board of
Directors. During the fiscal period, she conducted
appropriate audits from the above-mentioned
perspectives and provided accurate advice andsuggestions to the Board of Directors, the Human
Resources Committee, the Code of Conduct
Committee, and the Human Rights Committee.
We expect Takao Kashitani to use his specialist
knowledge and rich expertise as a certified public
accountant to conduct audits from a broad andadvanced perspective and to offer advice andsuggestions to ensure fair and appropriate decisionmaking by the Board of Directors. During the fiscal
period, he conducted appropriate audits from theabove-mentioned perspectives and provided
accurate advice and suggestions to the Board of
Directors, the Business Ethics Committee, and theNomination and Remuneration Advisory Committee.
We expect Masakatsu Mori to draw on his specialist
knowledge in finance and accounting as a certified
public accountant and his experience in senior
management at an international consulting firm to
conduct audits from a broad and advanced
perspective and to offer advice and suggestions toensure fair and appropriate decision-making by the
Board of Directors. During the fiscal period, he
conducted appropriate audits from the abovementioned perspectives and provided accurate
advice and suggestions to the Board of Directors andthe Business Ethics Committee.

*Number of meetings since being appointed

56 Independent Auditors（1）Name of Independent Auditors
Deloitte Touche Tohmatsu LLC（2）Remuneration for the Independent Auditors for the Fiscal Year
ended 31 August 2023
① Amount of remuneration, etc. for the Independent Auditors to be paid by
the Company

251 million yen② Total amount of cash and other economic benefits to be paid by theCompany and consolidated subsidiaries

297 million yen(Notes) The audit agreement between the Company and the Independent Auditors makes no distinction between the amountof remuneration for auditing under the Companies Act and the amount of remuneration for auditing under the
Financial Instruments and Exchange Act. Since no real distinction can be made in practice, the amount of
remuneration in (2) above to be paid for the fiscal year represents the total amount.

（3）Audit & Supervisory Board Agree Independent Auditors Remuneration
The Audit & Supervisory Board agreed to the remuneration of the independent auditors as stipulated in
Article 399, Item 1 of the Companies Act, after checking auditing estimates versus actual performance inprevious business years, including itemized auditing hours and remuneration, and investigating whether theestimates for the year ended 31 August 2023 were reasonable, based on the practical guidelines relating to
independent auditors published by the Japan Audit & Supervisory Board Members Association.

（4）Non-auditing Services
Fast Retailing doesn’t entrust its accounting auditors with any business other than the audit certification
stipulated in Article 2, Paragraph 1 of the Certified Public Accountants Act.

（5）Policy and reasons for selecting audit corporation
Based on the “Practical Guidelines for Auditors, etc. Concerning the Formulation of Evaluation and Selection
Standards for Accounting Auditors” (Japan Audit & Supervisory Board Members Association; 10 November2015), the Audit & Supervisory Board selected Deloitte Touche Tohmatsu LLC to be the independent auditor
after comprehensively examining the like in accordance with the prescribed selection standards andevaluation standards for accounting auditors. Regarding the policy for determining the dismissal or nonreappointment of an independent auditor, in the event that it is acknowledged that an item prescribed in an
item under Article 340-1 of the Companies Act is applicable, the Audit & Supervisory Board will pass a
resolution to the effect that the Audit & Supervisory Board will dismiss the independent auditor based on theconsent of all Audit & Supervisory Board Members, and in the event that it is acknowledged that it is difficult
for the independent auditor to perform an appropriate audit due to an event arising that otherwise impairs
the accounting auditor’s competence or independence, the Audit & Supervisory Board will pass a resolution
to the effect that the Audit & Supervisory Board will make a proposal to the General Meeting of Shareholders
to dismiss or not reappoint the accounting auditor.

6（6）Outline of Agreement for Limitation of Liability
The Company has entered into an agreement with Deloitte Touche Tohmatsu LLC based on provisions ofArticle 427, Paragraph 1 of the Companies Act, which limits its liabilities for damages provided for in Article
423, Paragraph 1 of the same act. Under this agreement, the limit of liabilities in damages shall be limited tothe highest of the following amounts multiplied by two: the total economic benefit received or to be received
from the Company as remuneration and payment received for performance of duties in each business year
during its service as the Independent Auditors.

77 Share Subscription Rights (as at 31 August 2023)（1） Delivery of share subscription rights as consideration for the execution of duties
and held by the Company officers
Share subscription rights resolved by the Board of Directors on 10 October 2013
Directors(Excluding External Directors)
Number of holders

1

Number of share subscription
rights66 shares

Type and number of shares tobe issued upon exercise ofshare subscription rights

Common stock:
198 shares

Amount to be paid upon
exercise of share subscription
rights (Yen)The total amount to be paid upon exercise of one share subscription
rights shall be determined by multiplying the price to be paid pershare that can be granted due to the exercise of share subscription
rights, which shall be ¥1, by the number of shares granted

Exercise period
subscription rights

From 3 January 2014 to 2 December 2023

of

share

Exercise conditions of sharesubscription rights

If a holder of share subscription rights waives the right to acquire
shares, the share subscription rights shall be forfeited and may not be
exercised.

8

Share subscription rights resolved by the Board of Directors on 9 October 2014
Directors(Excluding External Directors)
Number of holders

2

Number of share subscription
rights1,304 shares

Type and number of shares tobe issued upon exercise ofshare subscription rights

Common stock:3,912 shares

Amount to be paid upon
exercise of share subscription
rights (Yen)The total amount to be paid upon exercise of one share subscription
rights shall be determined by multiplying the price to be paid pershare that can be granted due to the exercise of share subscription
rights, which shall be ¥1, by the number of shares granted

Exercise period
subscription rights

From 14 November 2017 to 13 November 2024

of

share

Exercise conditions of sharesubscription rights

If a holder of share subscription rights waives the right to acquire
shares, the share subscription rights shall be forfeited and may not be
exercised.

Our common stock has been split on a 3-to-1 basis, effective 1 March 2023.
The number of shares to be issued upon exercise of share subscription rights is given as the adjusted
numerical value after stock split.

9

（2）Delivery of share subscription rights to employees as consideration for the
execution of duties during the year ended 31 August 2023
13th Share subscription
rights A type13th Share subscription
rights F type13th Share subscription
rights G type

Date of resolutionof the Board of
Directors

15 December 2022

15 December 2022

15 December 2022

Type and number ofshares to be issuedu p o n e x e rc i s e o fshare subscription
rightsCommon stock:
23,961 shares

Common stock:
54,915 shares

Common stock:146,445 shares

Amount to be paidu p o n e x e rc i s e o fshare subscription
rights (Yen)The total amount to be
paid upon exercise of
one share subscription
rights shall be
determined bymultiplying the price tobe paid per share thatcan be granted due tothe exercise of sharesubscription rights, whichshall be ¥1, by the
number of shares
granted

The total amount to be
paid upon exercise of
one share subscription
rights shall be
determined bymultiplying the price tobe paid per share thatcan be granted due tothe exercise of sharesubscription rights, whichshall be ¥1, by the
number of shares
granted

The total amount to be
paid upon exercise of
one share subscription
rights shall be
determined bymultiplying the price tobe paid per share thatcan be granted due tothe exercise of sharesubscription rights, whichshall be ¥1, by the
number of shares
grantedExercise period ofshare subscription
rightsFrom 20 January 2026 to
19 January 2033

From 20 January 2028 to
19 January 2033

From 20 January 2028 to
19 January 2063

Exercise conditionsof share subscription
rightsIf a holder of sharesubscription rights
waives the right toacquire shares, theshare subscription rights
shall be forfeited andmay not be exercised.

If a holder of sharesubscription rights
waives the right toacquire shares, theshare subscription rights
shall be forfeited andmay not be exercised.

If a holder of sharesubscription rights
waives the right toacquire shares, theshare subscription rights
shall be forfeited andmay not be exercised.

10

13th Share subscription
rights A type13th Share subscription
rights F type13th Share subscription
rights G type

Status of sharesubscription rights
issued toemployees

Number of share
Number of sharesubscription
subscription
Executive rights
7,987 Executive rights
18,305
officer of Number ofofficer of Number oftheunderlying
theunderlying
Company shares
23,961 Company shares
54,915
Number of
Number ofholders37
holders2

Number of sharesubscription
Executive rights
48,815
officer of Number oftheunderlying
Company shares
146,445
Number ofholders
7

Assignment ofshare subscription
rights

The acquisition of sharesubscription rights byassignment shall be
subject to the approvalof the Board of Directors.

The acquisition of sharesubscription rights byassignment shall be
subject to the approvalof the Board of Directors.

The acquisition of sharesubscription rights byassignment shall be
subject to the approvalof the Board of Directors.

Items relating to
payment in lieu

—

—

—

Matters pertaining
to issuing of sharesubscription rights
in conjunction withreorganization(Notes)(Notes)(Notes)(Notes)Upon any reorganization of the Company (collectively referred to as “Reorganization”) consisting of merger (limited to cases where theCompany becomes extinct thereby), absorption-type company split or incorporation-type company split (in each event, limited to cases where
the Company is the entity resulting from the Company split), or exchange or transfer of shares (in each event, limited to cases where theCompany becomes a wholly-owned subsidiary), parties holding share subscription rights in existence immediately preceding the effective
date of such Reorganization (hereinafter referred to as “Outstanding Share Subscription Rights”) shall, in each applicable case, be issued
share subscription rights for shares of the resulting company as prescribed in Article 236(1)viii of the Companies Act of Japan (hereinafterreferred to as the “Company Resulting From Reorganization”). In such event, any Outstanding Share Subscription Rights shall lapse and theCompany Resulting From Reorganization shall issue new share subscription rights; provided, however, that terms and conditions stipulatingthat the Company Resulting From Reorganization shall issue share subscription rights that prescribe the matters stated below shall be included
in any absorption merger agreement, new merger agreement, absorption-type company split agreement, incorporation-type company split
plan, share exchange agreement or transfer of shares plan.
1. Number of share subscription rights to be issued by the Company Resulting From Reorganization: Each holder of Outstanding Share
Subscription Rights shall be issued the same number thereof.
2. Type of shares of the Company Resulting From Reorganization underlying the share subscription rights: Common stock of the Company
Resulting From Reorganization.
3. Number of shares of the Company Resulting From Reorganization underlying the share subscription rights:
A proposal stating the conditions for Reorganization and the like shall include a finalized statement of the type and number of shares
underlying the above-mentioned share subscription rights.
4. Value of property to be incorporated upon exercise of the share subscription rights:
The value of property to be incorporated upon exercise of share subscription rights that are issued shall be the amount obtained bymultiplying the exercise price after reorganization prescribed below by the number of shares of the Company Resulting From
Reorganization underlying the share subscription rights that have been finalized as stated in No. 3. above. The exercise price afterReorganization shall be 1 yen per share of the Company Resulting From Reorganization that can be issued upon exercise of each sharesubscription rights that is issued.
5. Period during which share subscription rights can be exercised:
The period from the later of either the first day of the period during which share subscription rights can be exercised as prescribed aboveor the day on which a Reorganization takes effect through the final day of the period during which share subscription rights can be
exercised as prescribed above.
6. Matters pertaining to the increase of capital and capital reserve resulting from the issuance of shares upon exercise of the sharesubscription rights:
To be determined in order to align with the conditions applicable to the subject share subscription rights.
7. Restrictions on acquisition of share subscription rights by transfer:Any acquisition of share subscription rights by transfer shall require an authorizing resolution from the Board of Directors of the Company
Resulting From Reorganization.
8. Terms and conditions for acquisition of share subscription rights:

11

To be determined in order to align with the conditions applicable to the subject share subscription rights.
9. Conditions for exercise of share subscription rights:
To be determined in order to align with the conditions applicable to the subject share subscription rights.
10. Our common stock has been split on a 3-to-1 basis, effective 1 March 2023.
The number of shares to be issued upon exercise of share subscription rights and the number of underlying shares stated in status of sharesubscription rights issued to employees is given as the adjusted numerical value after stock split.

8 Ensuring Proper Business Operations (Corporate Governance)（1）Our Approach to Corporate GovernanceIn keeping with our corporate statement—Changing clothes. Changing conventional wisdom. Change theworld—Fast Retailing is strengthening its business expansion and sustainability initiatives in tandem as it
seeks to become a global No.1 brand. We are focusing on (1) Creating customer-centric products, (2)Accelerating global store openings, (3) Building purchasing experiences that fuse the best of our physicalstores and e-commerce operation, and (4) solving various social issues on a global scale.

（2）Establishing Strong Internal Control Systems
The Company seeks to ensure its business operations are legitimate, fair and efficient by establishing asystem of internal controls that covers the entire Fast Retailing Group (FR Group), which adheres strictly to
the Group’s policies and rules, including the Group’s management principles, the Fast Retailing Way (FRWay) and the Fast Retailing Group Code of Conduct (FR Code of Conduct).

A. Ensuring FR Group Directors’ Duties Comply with Laws, Regulations and Articles ofIncorporation
1. Directors and Group officers (collectively, Directors) of all FR Group companies comply faithfully with theGroup’s management principles, the FR Way, the FR Code of Conduct, and other internal company rules
and regulations, and promote strict adherence to corporate ethics and compliance across the Group asa whole. The Directors also ensure the effectiveness of the Company’s rules and principles by reviewing
them regularly and revising them when necessary to reflect changes in society and company businessactivities, and the operation of the FR Code of Conduct.
2. The Company appoints either the Group officer overseeing the Legal Department or the head of theLegal Department as compliance officer, tasked with establishing Company and Group-wide complianceframeworks and resolving compliance-related issues.
3. The Company promotes fairness and transparency in senior management decision-making by appointing
two or more External Directors to the Board of Directors. Audit & Supervisory Board Members for theCompany or Group subsidiaries may attend the Board meetings of companies they audit and express
timely opinions. Company or Group subsidiary Directors may engage external lawyers, certified public
accountants, etc. to avoid potential violation of laws and implement preventive measures. If Company orGroup subsidiary Directors discover another Director has acted illegally, they must report immediately to
the Audit & Supervisory Board Members, the President, and the compliance officer.

12B. Ensuring FR Group Employees’ Duties Comply with Laws, Regulations and Articles ofIncorporation
1. Company and Group subsidiary Directors are responsible for establishing a framework to ensure that all
Group employees comply with the management principles, the FR Way, the FR Code of Conduct andother internal company rules. They are also responsible for training employees in compliance awareness.
2. The Company has an Internal Audit Department that supervises the FR Group’s internal control systems,
and a Legal Department that oversees compliance.
3. If Directors of the Company or Group subsidiaries discover a legal or compliance violation, they shouldreport the matter immediately to other Directors. Any serious legal violation should be reported
immediately to the Audit & Supervisory Board Members, the President and the compliance officer.
4. The Company has set up an internal reporting system (hotline) for Directors and employees of theCompany or Group subsidiaries to report illegal actions or compliance violations.
5. The Code of Conduct Committee, which includes external specialists such as lawyers, conducts regularreviews of compliance maintenance and the hotline operation, and makes necessary improvements. If
Directors of the Company or Group subsidiaries detect a problem with the hotline operation, they should
apply to the Code of Conduct Committee and request improvements.
C. Data Storage and Management Relating to Execution of FR Group Directors’ Duties
The documents listed below relating to Company and Group subsidiary Directors’ duties are retained as
proof of decision-making and business-execution processes, as stipulated by law, Articles ofIncorporation, and Rules of Board of Directors and Company regulations and guidelines on document
management and confidential information. These documents are stored and managed appropriately andcan be easily retrieved for reference or inspection during the legally required storage period.
■ Shareholders meeting minutes and relevant documentation■ Board meeting minutes and relevant documentation■ Minutes of important meetings held by Directors and relevant documentation■ Minutes of other meetings held by important employees and relevant documentation

D. Managing Risk of Losses to FR Group
1. The Company regularly analyzes risks relating to the Company and Group subsidiaries to identify risks
that could, directly or indirectly, cause financial loss, interrupt or stop business, damage brand images orthe credibility of the Company or FR Group, and manages any risks accordingly.
2. If unforeseen circumstances should arise, a task force headed by the President or a Director appointed
by the President shall be established to prevent increased losses and minimize damage. For a faster
response, the task force may organize an external advisory team including lawyers and certified public
accountants.
E. Ensuring Efficient Execution of Directors’ Duties
1. To ensure that the duties of Company and Group subsidiary Directors are performed efficiently, theCompany holds regular monthly meetings of the Board of Directors, which includes a number of External
Directors, and holds ad hoc meetings when necessary. Group subsidiaries which have their own Boardof Directors also hold Board meetings as stipulated by law.
2. Important matters concerning Company and Group management policy and management strategy shallbe discussed beforehand at the weekly management meeting (Monday Meeting) chaired by the President,
and decisions taken after due deliberation.
3. The execution of decisions made by the Board of Directors shall be conducted efficiently andappropriately by the Group officers designated by the Board.

13

F. Ensuring Reliable FR Group Financial Reports
Systems have been established to ensure reliable financial reporting of Company and FR Groupsubsidiary activities, and the appropriate acquisition, holding and disposal of assets. These activities areclosely monitored. The Company has also established a Disclosure Committee to ensure the Company
and Group subsidiaries disclose information in a timely and appropriate manner.
G. Ensuring Proper Execution of Corporate Groups Formed by Company and FR Group
Subsidiaries
1. To ensure appropriate operations of FR Group companies, all Group companies are required to upholdthe management principles, the FR Way and the FR Code of Conduct. These principles also underpin
the rules and regulations used when establishing entrusted individual Group companies. While
respecting their autonomy, the Company oversees associated companies by determining their rules ofbusiness and requiring them to refer important items to the Company for consultation or final
determination. The Company monitors associates if necessary. If Directors of Group subsidiaries
discover any legal violations or serious compliance breaches, they should report them to the Audit &Supervisory Board Members, the President and compliance officer.
2. If Directors of Group subsidiaries consider the Company’s management principles or guidelines violate
the law, undermine corporate ethics in a specific country, or create a compliance problem, they shallreport to the Internal Audit Department or the Legal Department. Those departments shall report swiftlyto the Audit & Supervisory Board, the President and the compliance officer, and request appropriate
improvements.
H. Employee Assistants Requested by Audit & Supervisory Board Members, and ensuring Their
Independence and Effectiveness of Audit & Supervisory Board Members’ Instruction Towards
Employee Assistants
1. Upon receiving a request from the Audit & Supervisory Board, the Company shall establish rules todetermine which employees assist the Audit & Supervisory Board Members with their duties, and assign
appropriate internal personnel to the Audit & Supervisory Board Members or employ external lawyers or
certified public accountants. To ensure assistants are independent of the Directors, their performance
will be evaluated by Audit & Supervisory Board Members, and the Audit & Supervisory Board will approve
decisions made by the Board of Directors on their assignment, dismissal, transfer and wages, etc.
2. Assistants shall report directly to the Audit & Supervisory Board Members and may not hold concurrent
positions that involve the execution of Company’s business.
I. Director and Employee Reporting to Audit & Supervisory Board Members, and Other Reports
1. Directors and employees of the Company and Group subsidiaries shall report any important matters thatmight impact the Company’s operations or corporate performance to the Audit & Supervisory Board
Members. Irrespective of these rules, the Audit & Supervisory Board Members may request reports from
Directors or employees of the Company, or Directors, employees and Audit & Supervisory Board
Members of Group subsidiaries if necessary.
2. The Company and Group subsidiaries shall uphold the Group’s management principles, the FR Way andthe FR Code of Conduct, and maintain frameworks for reporting legal violations or breaches ofcompliance rules to the Audit & Supervisory Board Members. If the Audit & Supervisory Board Members
judge there is a problem with this framework, they can inform the Directors and the Board of Directors
and request improvements.
3. The Company has made it widely known to Directors and employees across the entire FR Group thatusing reports submitted to Audit & Supervisory Board Members to penalize the submitter is forbidden.
Submitted reports are protected by strict information management systems.
4. Audit & Supervisory Board Members communicate closely with the independent auditor, the Internal
Audit Department, and Audit & Supervisory Board Members at Group companies through regularmeetings and information exchange.
J. Policy on Prepayment or Reimbursement of Expenses for Audit & Supervisory Board Members
14

If Audit & Supervisory Board Members submit requests for prepayment or reimbursement of expenses
incurred during the course of their duties, the Company shall pay invoices or settle debts swiftly, unless
it proves the requested expenses or debt were not necessary to the performance of the Audit &Supervisory Board Member’s duties.

15

K. Other Matters Ensuring Efficient Audits by Audit & Supervisory Board Members
1. Audit & Supervisory Board Members attend Board of Directors meetings and other important meetings
to observe the reporting and discussion of significant issues. They may voice opinions if necessary.
2. The President meets regularly with Audit & Supervisory Board Members to consult on pressing issues,ensure appropriate auditing environments, and exchange views on significant issues highlighted in theauditing process.
L. Eliminating Anti-social Forces
The Company works to extinguish anti-social forces by incorporating the following content in the FR Codeof Conduct, and informing all executives and employees of its uncompromising stance:
1. The Company adopts a firm stand against and refuses to engage with anti-social forces. The Company
forbids the use of financial payments to resolve unreasonable claims from anti-social forces.
2. The Company forbids the use of anti-social forces for Company or individual gain.

（3）Fast Retailing’s Fundamental Policies in Action
As the key decision-making body on management and business execution, the Board of Directors meetsat least once a month to discuss and determine key issues. In addition, management strategies orbusiness plans mandated by the Board can be swiftly revised at the weekly management meeting(Monday Meeting) chaired by the President. six External Directors and three External Audit & Supervisory
Board Members voice frank, timely views at Board meetings, and carefully supervise company
management and business.
The Company has established several committees, which include External Directors and Audit &Supervisory Board Members, to complement the functions of the Board of Directors. These committees
meet regularly and encourage open discussion and swift decision-making.
Below is a diagram of our corporate governance systems.

Roles and activities of the committees are as follows.

◼

Human Resources Committee
The Human Resources Committee discusses important organizational changes and adjustments to humanresource systems across the Group and offers views and suggestions to the Board. The committee met
five times during FY2023.

16

◼

Sustainability Committee
The Sustainability Committee discusses and determines Fast Retailing’s overall sustainability strategy,
environmental protection, social responsibility, response to human rights issues, diversity, and otherconsiderations. The internal director of the Sustainability Department chairs the committee and committee
members are made up of outside experts, Audit & Supervisory Board Members, and executive officers.
The committee met four times during FY2023.

◼

Disclosure Committee
The Disclosure Committee, chaired by the Company official in charge of disclosing information to the Tokyo
Stock Exchange (TSE), is tasked with boosting management transparency by “disclosing information thatis timely accurate, fair and easy to understand.” The Committee is responsible for both timely and voluntary
disclosures to the TSE and the Stock Exchange of Hong Kong regarding matters that may materially impact
investor and shareholder investment decisions. The committee met twelve times during FY2023.

◼

IT Investment Committee
This Committee debates and advises on the IT investments that will best achieve our targets for sweepingchanges to our information systems and business operations. That means deliberating the efficacy of eachindividual investment, and checking whether IT investment budgets submitted by external specialist
organizations are reasonable and appropriate. The committee is chaired by the Company president.
External experts, external directors, Audit & Supervisory Board Members, and corporate officers participate
as committee members or observers. The committee met three times during FY2023.

◼

Code of Conduct Committee
The Code of Conduct Committee considers how best to resolve any violations of the Fast Retailing Group
Code of Conduct (CoC), and when to make improvements to it. It offers guidance on educating executives
and employees about the requirements of the CoC, and on operating the confidential hotline. The
committee is chaired by the head of the Legal Department. Audit & Supervisory Board Members (including
external Audit & Supervisory Board Members), corporate officers and others participate as committee
members. The committee met twelve times during FY2023.

◼

Business Ethics Committee
This committee ensures the Group does not use an advantageous position to exert undue pressure on
business counterparts such as partner factories and suppliers. The committee provides advice and counsel
to departments based on external field inspections and partner company surveys. The committee is chairedby the head of the Sustainability Department. Audit & Supervisory Board Members (including external Audit& Supervisory Board Members), corporate officers and others participate as committee members. The
committee met twelve times during FY2023.

◼

Risk Management Committee
In order to identify latent risks in business activities on a regular basis and to strengthen systems for
detecting and managing material risks, this committee analyzes and assesses the impact and frequencyof risks on business, and discusses countermeasures for high-risk business areas to contain any risk
before it occurs or ensure a swift response if a risk does materialize. The committee is chaired by the Group
CFO and committee members include outside directors and executive officers. The committee met fourtimes during FY2023.

17◼

Nomination and Remuneration Advisory Committee
With the aim of strengthening Fast Retailing governance, the committee discusses and advises the Boardof Directors on important items relating to Fast Retailing corporate governance, such as the requirements
and nomination policy regarding candidates for director and auditor positions, the policy for determining
director remuneration, requirements relating to the Company's chief executive officer, and smoothmanagement succession planning. The committee is chaired by an external director nominated by the
Board. All the Company’s independent external directors and some of the external Audit & Supervisory
Board Members serve as committee members. We believe that Fast Retailing’s corporate statement andcorporate spirit represent vital sources of growth and that it is important to pass on those commitments andvalues. For that reason, the Company’s representative director also serves on the committee. The
committee met twice in FY2023, during which policies relating to the nomination of candidates for directorand Audit & Supervisory Board member and the determination of remuneration for directors werediscussed. All committee members attended both committee meetings.

◼

Human Rights Committee
The Human Rights Committee is chaired by an external expert, and is tasked with discussing and offering
advice on implementing human rights due diligence. The committee is responsible for ensuring humanrights are upheld according to the 2018 Fast Retailing Group Human Rights Policy. It also advises thosein charge of business execution to ensure business is conducted appropriately and fairly, and conducts
various educational activities. As the body responsible for reporting and monitoring, the committee will also
investigate any human rights violations and take remedial measures. The committee met six times in
FY2023.
Please refer to page 37 of the reference materials for the 2023 General Meeting of Shareholders (hardcopy
submission) about Diagram of composition of directors and Audit & Supervisory Board Members for eachcommittee.

18

Consolidated Statement of Changes in Equity (Year ended 31 August 2023)(Millions of yen)

Other components of equity
CapitalsurplusCapital stock

As at 1 September 2022

Financial assets
measured
at fair value
through othercomprehensive
income/(loss)

Treasurystock,
at costRetainedearnings

Foreigncurrencytranslation
reserve

10,273

27,834

1,275,102(14,813)131

100,587

Profit for the year
Other comprehensive
income/(loss)--

296,229

-

-

-

-

-

-

-

(11)

45,444

Total comprehensive income--

296,229-(11)

45,444

Acquisition of treasury stock

-

-

-

(27)

-

-

Disposal of treasury stock

-

1,650

-

127

-

-

Dividends--(73,074)---

Share-based payments

-

(953)

-

-

-

-

Transfer to non-financial assets

-

-

-

-

-

-

Transfer to retained earnings
Changes in ownership interestsin subsidiaries without losing
control
Total transactions with theowners of the Parent

-

-

90

-

(90)

-

-

-

-

-

-

-

-

696

(72,983)

99

(90)

-

Net changes during the year

Total net changes during the year
As at 31 August 2023-

696

223,24699(102)

45,444

10,27328,531

1,498,348(14,714)28

146,031

Noncontrollinginterests

Total equity

Other components of equity

As at 1 September 2022

Cash-flow
hedge reserve

Share of othercomprehensive
income ofassociates

162,407

129

Equityattributable toowners of theparentTotal
263,255

1,561,652

53,7501,615,402

Net changes during the year
Profit for the year
Other comprehensive
income/(loss)

-

-

-

296,229

18,941

315,171

81,766

172

127,371

127,371

1,373

128,745

Total comprehensive Income

81,766

172

127,371423,601

20,315443,916

Acquisition of treasury stock

-

-

-

(27)

-

(27)

Disposal of treasury stock

-

-

-

1,778

-

1,778

Dividends---(73,074)(21,648)(94,723)

-

-

-

(953)

-

(953)

Transfer to non-financial assets(91,570)-(91,570)(91,570)(775)(92,346)

Transfer to retained earnings
Changes in ownership interestsin subsidiaries without losing
control
Total transactions with theowners of the Parent
Total net changes during the year

-

-

(90)

-

-

-

-

-

-

-

314

314

(91,570)-(91,661)(163,848)(22,109)(185,958)(9,804)172

35,710259,752(1,794)257,958

152,602302

298,965

1,821,405

51,955

1,873,360

Share-based Payments

As at 31 August 2023

(Note) Amounts are rounded down to the nearest million Japanese Yen.
19

Notes to the Consolidated Financial Statements
1 Significant Accounting Policies（1）Basis of preparation of the consolidated financial statements
The consolidated financial statements of the Company and its consolidated subsidiaries areprepared in accordance with International Financial Reporting Standards (“IFRS”) pursuant to theprovisions of the second sentence of the first paragraph of Article 120 of the Ordinance on Company
Accounting which allows companies to prepare consolidated financial statements with the omissionof a part of the disclosures required under IFRS.

（2）Scope of consolidation
Status of consolidated subsidiaries
Number of consolidated subsidiaries
125
Names of main consolidated subsidiaries
UNIQLO CO., LTD.
UNIQLO TRADING CO., LTD. *FRL Korea Co., Ltd.
UNIQLO (THAILAND) COMPANY LIMITEDUNIQLO AUSTRALIA PTY LTD.
UNIQLO EUROPE LIMITEDUNIQLO INDIA PRIVATE LIMITEDGU (Shanghai) Trading Co.,Ltd.
Theory LLCCOMPTOIR DES COTONNIERS S.A.S.

FAST RETAILING (CHINA) TRADING CO., LTD. *FAST RETAILING (SHANGHAI) TRADING CO., LTD. *FAST RETAILING (SINGAPORE) PTE. LTD.
PT. FAST RETAILING INDONESIA
Fast Retailing USA, Inc.
UNIQLO VIETNAM Co., Ltd.
G.U. CO., LTD.
FAST RETAILING FRANCE S.A.S.
PLST CO., LTD.
PRINCESSE TAM TAM S.A.S.
Other consolidated subsidiaries (105 companies)* The English names of all subsidiaries established in the People’s Republic of China (“PRC”) are translated
for identification only.

（3）Scope of investments in associates
Status of associates
Number of associates
3（4）Consolidated subsidiaries
The statutory fiscal year end dates for FAST RETAILING (CHINA) TRADING CO., LTD., UNIQLOTRADING CO., LTD., FAST RETAILING (SHANGHAI) TRADING CO., LTD., GU (Shanghai) Co.,
Ltd. and 11 other companies vary between 31 December, 31 March and 30 June.
Management prepares the financial statements of these subsidiaries as at the Group’s year-end solely
for the Group’s consolidation purpose.

20

（5）Accounting Policies
A. Evaluation basis and method of financial assets and financial liabilities(1) Non-derivative financial assets
1. Initial recognition and measurement
The Group classifies financial assets as “financial assets measured at fair value through Profit/Loss”;“financial assets measured at fair value through Other Comprehensive Income” or “financial assets
measured at amortized cost”; and that classification is determined at the time of initial recognition.
The Group carries out initial recognition on the date of the transaction when it becomes party to the contract
related to the financial asset(s).
All financial assets are measured by adding transaction costs directly attributable to fair value, except thosein the category classified as “measured at fair value through Profit/Loss”.
Financial assets are classified as “financial assets measured at amortized cost”, if both of the following
conditions are met:
・the financial assets are held within a business model whose objective is to hold financial assets in order
to collect contractual cash flows and・the contractual terms of the financial asset give rise on specified dates to cash flows that are solely
payments of principal and interest on the principal amount outstanding.
Financial assets other than “financial assets measured at amortized cost” are classified as “financial assets
measured at fair value.”
Apart from equity instruments held for trading purposes, which must be measured at "fair value throughProfit / Loss", other equity instruments measured at fair value are designated as either being "measured atfair value through Profit / Loss" or alternatively "measured at fair value through Other Comprehensive
Income"; this is done for each individual equity instrument and the designation is continuously applied to the
instrument thereafter.
2. Subsequent measurement
Measurement after the initial recognition of financial assets is carried out as below in accordance with theclassification.
(a) Financial assets measured at amortized cost
“Financial assets measured at amortized cost” are measured at amortized cost using the effective interest
method.
(b) Financial assets measured at fair value
The fluctuation in the fair value of “financial assets measured at fair value” is recognized as Profit/Loss.
However, any fluctuation in the fair value of equity financial instruments designated as instruments to be“measured at fair value through Other Comprehensive Income”, is recognized as Other Comprehensive
Income; and if recognition is suspended or if the fair value significantly drops, then it will be transferred to
Retained Earnings. Note that dividends from the financial assets are recognized as Profit/Loss as partof finance income.
3. Impairment of financial assets
For "financial assets measured at amortized cost", expected credit losses pertaining to the financial assets
are recognized as Allowances for Doubtful Accounts.
On each reporting date, the credit risk pertaining to each financial asset is evaluated to see if it has increased
significantly since initial recognition and, if it has, then the expected credit losses for the entire period will
be recognized as an Allowance for Doubtful Accounts; whereas if it has not, then the expected credit
losses for a 12-month period will be recognized as an Allowance for Doubtful Accounts.
At the time of an evaluation, in principle, if the contractual payment due date has passed, then it will beassumed that the credit risk has significantly increased. However, when the evaluation takes place, other21

information that can be reasonably used and used as support will be taken into account.
However, trade receivables, etc., that do not include any major financial elements are always recognized as
being an amount equivalent to expected credit loss for the entire period.
If the issuer or debtor is in serious financial difficulties or is subject to a legal or formal business failure,then it will be judged that there has been a default on obligations. And if it is judged that there has been adefault on obligations, then the assets will be treated as credit-impaired financial assets.
Irrespective of the above, if it is reasonably judged that all or part of financial assets cannot be collected due
to our legal rights of claim being terminated or similar, then the book value of the financial assets will bedirectly amortized.
4. Derecognition of financial assets
The Group derecognizes a financial asset only if the contractual rights to the cash flows from the financial
asset expire or if the Group has transferred almost all risks and rewards of ownership. If the Group maintains
control of the transferred financial asset, it recognizes the asset and associated liabilities to the extent of its
continuing involvement.

(2) Non-derivative financial liabilities
1. Initial recognition and measurement
Corporate bonds and loans, etc., are initially recognized by the Group on their effective date; and otherfinancial liabilities are initially recognized on their transaction date. Financial liabilities are either classified
as “financial liabilities measured at fair value through Profit/Loss” or “financial liabilities measured atamortized cost”, and this classification is determined at the time of initial recognition. All financial liabilities
are initially measured at fair value, but “financial liabilities measured at amortized cost” are measured using
the amount obtained after deducting directly attributable transaction costs.
2. Subsequent measurements
For measurements made after the initial recognition of a financial liability, any "financial liabilities measured
at fair value through Profit/Loss" include financial liabilities held for trading purposes and financial liabilities
specified at the time of initial recognition as "measured at fair value through Profit/Loss"; and when theseliabilities are measured at fair value after initial recognition, any changes are recognized as Profit/Loss forthe current period. Any "financial liabilities measured at amortized cost" are measured after initial recognitionat amortized cost using the effective interest method. Any gains or losses made in the event of amortization
using the effective interest method and the de-recognition of a liability are recognized as profit/loss for thecurrent period as part of finance expenses.
3. Derecognition of financial liabilities
The Group derecognizes a financial liability when it is extinguished, which is when the obligation specified
in the contract is either discharged, cancelled, or expired.

B. Evaluation basis and method of derivatives
The Group uses derivative financial instruments, such as forward currency contracts, to hedge its foreign
currency risks. Such derivative financial instruments are initially recognized at fair value on the date on which
a derivative contract is entered into and are subsequently remeasured at fair value.
C. Inventories
Inventories are valued at the lower of cost or net realizable value; the weighted average method is principallyused to determine cost. Net realizable value is based on the estimated selling price in the ordinary courseof business less any estimated costs to be incurred to sell the goods.
D. Depreciation method of important depreciable assets
1. Property, Plant and Equipment
Property, plant and equipment are measured at cost less accumulated depreciation and any accumulated
impairment losses. The cost of an item of property, plant and equipment comprises its purchase price andany directly attributable costs of bringing the asset to its working condition and location for its intended use,22the initial estimate of the costs of dismantling and removing the item and restoring the site on which it islocated.
Assets other than land and construction in progress, are depreciated primarily using the straight-line method
over the estimated useful lives shown below:
Buildings and structures
3-35 years
Machinery and equipment
10 years
Furniture, fixtures and vehicles
5 years
The useful lives, residual values, and depreciation methods are reviewed at each reporting date, with theeffect of any changes in estimates being accounted for on a prospective basis.
2. Intangible assets
Intangible assets are measured at cost, with any accumulated amortization and accumulated impairment
losses deducted from the historical cost to arrive at the stated carrying amount. Intangible assets acquired
separately are measured at cost at initial recognition, and the cost of intangible assets acquired in a businesscombination is measured as fair value at the acquisition date.
For internally generated intangible assets, the entire amount of the expenditure is recorded as an expensein the period in which it arises, except for development expenses that meet the requirements forcapitalization.
Intangible assets with finite useful lives are amortized over their respective estimated useful lives using thestraight-line method, and they are tested for impairment when there is an indication that they may be
impaired. The estimated useful life and amortization method for an intangible asset with a finite useful life isreviewed at the end of each reporting period, and any changes are applied prospectively as a change inaccounting estimate.
The estimated useful lives of the main intangible assets with finite useful lives are as follows:
Software for internal use
Length of time it is usable internally (3-5 years)
Intangible assets with indefinite useful lives and intangible assets that are not yet available for use are notamortized. They are tested for impairment annually or when there is an indication that they may be impaired,either individually or at the cash-generating unit ("CGU") level.
3. Right-of-use assets
Right-of-use assets are initially measured at cost at the commencement date of their lease. The cost includes
the amount of the initial measurement of the lease liability, any lease payments made at or before thecommencement date, less any lease incentives received, and any initial direct costs incurred.
After the initial measurement, right-of-use assets are depreciated over the lease term using the straight-line
method. The lease term is determined as the non-cancellable period together with periods covered by anoption to terminate the lease if the lessee is reasonably certain not to exercise that option. The right-of-use
assets are measured at cost less accumulated depreciation and any accumulated impairment losses.

E. Impairment
The carrying amounts of the Group’s non-financial assets, excluding inventories and deferred tax assets,are reviewed to determine whether there is any indication of impairment at each reporting date. If there is
any indication of impairment, the recoverable amount for the asset is estimated. For goodwill, intangible
assets with indefinite useful lives, and intangible assets that are not yet available for use, the recoverable
amount is estimated each year at the same time.
The recoverable amount for an asset or CGU is the higher of value-in-use and fair value less costs ofdisposal. The fair value less costs of disposal calculation is based on current market transactions. However,if the observable market transactions are not available, appropriate valuation model is used. In assessing
value-in-use, the estimated future cash flows are discounted to their present value using a pre-tax discountrate that reflects the time value of money and the risks specific to the asset.
A CGU is the smallest identifiable group of assets which generates cash inflows from continuing use which
are largely independent of the cash inflows from other assets or groups of assets.
The CGU (or group of CGUs) for goodwill is determined based on the unit by which the goodwill is monitored
for internal management purposes and must not be larger than an operating segment before aggregation.
23

Because the corporate assets do not generate independent cash inflows, if there is an indication that
corporate assets may be impaired, the recoverable amount is determined for the CGU to which the corporate
assets belong.
If the carrying amount of an asset or a CGU exceeds the recoverable amount, an impairment loss isrecognized in profit or loss for the period. Impairment losses recognized in relation to a CGU are firstallocated to reduce the carrying amount of any goodwill allocated to the CGU and then allocated to the otherassets of the CGU pro rata on the basis of their carrying amounts.
An impairment loss related to goodwill cannot be reversed in future periods. Previously recognizedimpairment losses on assets other than goodwill are reviewed at each reporting date to determine whether
there is any indication that a loss has decreased or no longer exists. A previously recognized impairment
loss is reversed only if there has been a change in the assumptions used to determine the asset’s
recoverable amount since the last impairment loss was recognized. The reversal is limited so that thecarrying amount of the asset does not exceed its recoverable amount, nor exceed the carrying amount thatwould have been determined, net of depreciation, had no impairment loss been recognized for the asset inprior years.

F. Lease liabilities
Lease liabilities are initially measured at the present value of the lease payments that are not paid at thecommencement date. The lease payments are discounted using the interest rate implicit in the lease, if thatrate can be readily determined. If that rate cannot be readily determined, the incremental borrowing rate isused. The lease payments included in the measurement of the lease liability comprise the fixed payments
and payments of penalties for terminating the lease, if the lease term reflects the exercising an option toterminate the lease. Subsequent to initial recognition, lease liabilities are measured at amortized cost using
the effective interest method. Lease liabilities are remeasured if there is a change in future lease payments
resulting from a change in an index or a rate, or a change in the assessment of possibility of exercising atermination option. If a lease liability is remeasured, the amount of the remeasurement of the lease liability
is recognized as an adjustment to the right-of-use asset.
G. Provisions
Provisions are recognized when the Group has a present legal or constructive obligation as a result of a past
event, it is probable that an outflow of resources embodying economic benefits will be required to settle theobligation, and a reliable estimate can be made of the amount of the obligation. Provisions are recognized
as the best estimate of the expenditure required to settle the present obligation (future cash flows), taking
into account the risks and uncertainties surrounding the obligation at each reporting date.
If the time value of money is material, provisions are measured as the estimated future cash flows discounted
to the present value using a pre-tax rate that reflects, when appropriate, the time value of money and therisks specific to the liability. When discounting is used, the increase due to the passage of time is recognized
as a finance cost.
Each provision is described below:
Asset retirement obligations
The obligations to restore property to its original state under real estate leasing agreements for offices, suchas corporate headquarters and stores, are estimated and recorded as a provision. The expected length ofuse is estimated as the time from acquisition to the end of useful life.

H. Goodwill
Goodwill is stated at the carrying amount, which is the acquisition cost after deducting accumulated
impairment losses. Goodwill represents the excess amount of the historical cost of an interest acquired by
the Group over the net amount of the fair value of the identifiable assets acquired and liabilities assumed.
Goodwill is not amortized but is allocated to identifiable cash-generating units based on the geographicalregion where business takes place and the type of business conducted, and then tested for impairment eachyear or when there is an indication that it may be impaired.
Impairment losses on goodwill are recognized in the consolidated statement of profit or loss and cannot be
subsequently reversed in future period.
24

I. Revenue recognition
The Group recognizes revenue in accordance with IFRS 15 Revenue from Contracts with Customer (IFRS
15) by applying the following five-step approach (other than interest and dividend income based on IFRS 9
Financial Instruments (“IFRS 9”) and lease income based on IFRS 16 Leases (“IFRS 16”):
Step 1: Identify the contract(s) with a customer
Step 2: Identify the performance obligations in the contract
Step 3: Determine the transaction price
Step 4: Allocate the transaction price to the performance obligations in the contract
Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation
The Group, as a global clothing retailer, recognizes revenue when it satisfies its performance obligation bytransferring the promised goods to the customer. An asset is transferred when the customer obtains controlof that asset. In addition, the Group recognizes revenue at the amount of the promised consideration thatthe customer would pay in accordance with a contract, less the sum of discounts, rebates and refunds orcredits. The Group receives payment within a short period of time after fulfilling the performance ofobligations based on separately specified payment conditions. As the period from fulfillment of theperformance obligations to receipt of consideration is normally within one year, the receivables are notadjusted as material financial elements using the convention method.
J. Foreign Currencies
1. Transactions and Balances
Transactions in foreign currencies are initially recorded by the Group’s entities at their respective functional
currency spot rates at the date the transaction first qualifies for recognition. Monetary assets and liabilities
denominated in foreign currencies are translated at the functional currency spot rates of exchange at eachreporting date. Differences arising on settlement or translation of monetary items are recognized in profit orloss. Non- monetary items that are measured in terms of historical cost in a foreign currency are translatedusing the exchange rates at the dates of the initial transactions. Non-monetary items measured at fair value
in a foreign currency are translated using the exchange rates at the date when the fair value is determined.
The gain or loss arising on translation of non- monetary items measured at fair value is treated in line withthe recognition of gain or loss on change in fair value of the item (i.e., translation differences on items whose
fair value gain or loss is recognized in other comprehensive income or profit or loss are also recognized inother comprehensive income or profit or loss, respectively).
2. Foreign Operations
On consolidation, the assets and liabilities of foreign operations are translated into Japanese yen at the rateof exchange prevailing at each reporting date and their income statements are translated at averageexchange rates during the period. The exchange differences arising on translation for consolidation arerecognized in other comprehensive income. On disposal of a foreign operation, the component of othercomprehensive income relating to that particular foreign operation is recognized in profit or loss.

K. Main Hedge Accounting Methods
The Group uses derivative financial instruments, such as forward currency contracts, to hedge its foreign
currency risks. Such derivative financial instruments are initially recognized at fair value on the date on which
a derivative contract is entered into and are subsequently remeasured at fair value. Derivatives are carriedas financial assets when the fair value is positive and as financial liabilities when the fair value is negative.
Any gains or losses arising from changes in the fair value of derivatives are taken directly to profit or loss,
except for the effective portion of cash flow hedges, which is recognized in other comprehensive income
and later reclassified to profit or loss when the hedge item affects profit or loss.
At the inception of a hedge relationship, the Group formally designates and documents the hedge
relationship to which the Group wishes to apply hedge accounting and the risk management objectives andstrategy for undertaking the hedge. The documentation includes identification of the specific hedging
instrument, the hedged item or transaction, the nature of the risk being hedged and how the entity will assess
the hedging instrument’s effectiveness in offsetting the exposure to changes in the hedged item’s fair value
or cash flows attributable to the hedged risk. Such hedges are expected to be highly effective in achieving
25

offsetting changes in fair value or cash flows and are assessed on an ongoing basis to determine that they
actually have been highly effective throughout the financial reporting periods for which they were designated.
The Group has designated forward currency contracts as cash flow hedges and are accounted for as
described below:
Cash flow hedges
For gains and losses on hedges, effective portions are recognized as Other Comprehensive Income on theConsolidated Statement of Comprehensive Income, and non-effective portions are immediately recognized
as Net Profit/Loss on the Consolidated Statement of Income.
Amounts pertaining to hedges that are included as Other Comprehensive Income are transferred toProfit/Loss at the point in time when the hedged trades have an impact on profit/loss. If a transaction isplanned that will generate recognition of hedged assets or liabilities of a non-financial nature, then theamount that is recognized as Other Comprehensive Income is processed as a correction of the initial bookvalue for the non-financial asset/liability.
If the forecast transaction or firm commitment is no longer expected to occur, cumulative profit or loss
amounts previously recognized in equity through other comprehensive income are reclassified as profits orlosses. If the hedging instrument expires or is sold, is terminated or exercised without replacement or rollover,or if its designation as a hedge is revoked, the amounts previously recognized in equity through othercomprehensive income are recorded as equity until the forecast transaction occurs or firm commitment is
met.

L. Income taxes
Income taxes comprise current and deferred taxes and these are recognized in profit or loss, except taxes
arising from items that are recognized as other comprehensive income.
Current taxes are measured at the amount expected to be paid to (or recovered from) taxation authorities
on taxable income or loss for the current year, using the rates that have been enacted or substantively
enacted by each reporting date in the countries where the Group operates and generates taxable income,with adjustments to tax payments in past periods.
Through the use of an asset and liability approach, deferred tax assets and liabilities are recorded for the
temporary differences between the carrying amounts of assets and liabilities for accounting purposes andthe amounts of assets and liabilities for tax purposes. Deferred tax assets and liabilities are not recognized
for temporary differences under any of the following circumstances:•Temporary differences arising from goodwill;•Temporary differences arising from the initial recognition of an asset / liability which, at the time of thetransaction, does not affect either the accounting profit or the taxable income (other than in a businesscombination); or•Temporary differences associated with investments in subsidiaries, but only to the extent that it is possible
to control the timing of the reversal of the differences and it is probable that the reversal will not occur in theforeseeable future.
The group tax sharing system is applied for the Company and 100% owned subsidiaries in Japan.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when
the temporary difference is realized or settled, based on tax laws that have been enacted or substantively
enacted by each reporting date.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax
assets and liabilities and when income taxes are levied by the same taxation authority on either the same
taxable entity or on different taxable entities which intend either to settle current tax assets and liabilities on
a net basis, or to realize the assets and settle the liabilities simultaneously.
Deferred tax assets are recognized for unused tax losses, tax credits, and deductible temporary differences
to the extent that it is probable that future taxable profits will be available against which they can be utilized.
26

Deferred tax assets are reviewed at each reporting date and reduced to the extent that it is no longer
probable that the related tax benefits will be realized.

（6）Changes in accounting policies
Application of IAS 12 " Income Taxes" (Revised)
In accordance with IAS 12 (Revised), as of the current consolidated fiscal year, the Group has adopted
a temporary exception to the recognition and information disclosure requirements about deferred tax assets
and liabilities related to the International Tax Reform - Pillar Two Model Rules.
The application of IAS 12 (Revised) has no significant impact on the Group's Consolidated Financial
Statement.

2 Notes to Revenue Recognition（1） The breakdown of revenue
The Group performs global retail clothing operations through both physical stores and e-commerce channels. The following is abreakdown of total revenue by major regional market operation during the year ended 31 August 2023.
From the current consolidated fiscal year, the revenue from UNIQLO North America and Europe regions are disclosed separately.
Revenue

Percent of Total(Millions of yen)

(%)

Japan

890,427

32.2

Greater China

620,232

22.4

South Korea, Southeast Asia, India & Australia

449,852

16.3

North America

163,996

5.9

Europe203,065

7.3

2,327,575

84.1

GU (Note 2)

295,206

10.7

Global Brands (Note 3)

141,685

5.1

2,090

0.1

2,766,557

100.0

UNIQLO (Note 1)

Others (Note 4)
Total(Note 1) Revenue is classified by nation or region based on customer location.
The designated countries and regions are classified as follows:
Greater China:
Mainland China, Hong Kong, Taiwan
South Korea, Southeast Asia, India &Australia:
North America:

Europe:South Korea, Singapore, Malaysia, Thailand, the Philippines,
Indonesia, Australia, Vietnam, India
United States of America, Canada
United Kingdom, France, Russia, Germany, Belgium, Spain, Sweden,
the Netherlands, Denmark, Italy, Poland(Note 2) Main national and regional market: Japan(Note 3) Main national and regional markets: North America, Europe, Japan(Note 4) The “Others” category includes real estate leasing operations.

27

（2） Liabilities arising from contracts with customers
Liabilities arising from contracts with customers are as stated below.
As at 31 August 2022

As at 31 August 2023

Advances received from customers

2,152 million yen

2,356 million yen

Refund liabilities

1,882 million yen

2,236 million yen

Contractual liabilities

Consideration for anticipated refunds to customers is reasonably estimated and recognized as a refund liability.
In the consolidated statement of financial position, liabilities pertaining to advances received and refunds from customers areincluded in “Other current liabilities.”（3） Transaction prices allocated to existing performance obligations
In the Group, there are no significant transactions for which the individual forecast contract period exceeds one year.
Therefore, the practical short-cut method is used, and information related to remaining performance obligations is omitted.
Furthermore, in the consideration arising from contracts with customers, there are no significant monetary amounts that are notincluded in the transaction price.

（4） Assets recognized from costs for acquiring or performing contracts with customers
In the Group, there are no assets recognized from costs for acquiring or performing contracts with customers.

3 Notes to Accounting Estimates
The followings are the items for which the amount was recorded in the consolidated financial statements for thecurrent fiscal year based on the accounting estimates, and which may have a significant impact on the consolidated
financial statements for the next consolidated fiscal year.

（1） Valuation of Financial Instrument
A. Amounts recorded in the consolidated financial statements for the current fiscal year
Accounts receivable and other short-term
receivables

66,831 million yen

Other short-term financial assets

576,194 million yen

Derivative financial assets

246,253 million yen

Long-term financial assets

240,363 million yen

Derivative financial liabilities

5,010 million yen

B. Information relating to the content of significant accounting estimates for the identified items
The valuation method for financial assets is described in the notes to the consolidated financial statements: 1 (5) Accounting Policies
A, B, and K.
As there are uncertainties on the valuation of financial assets, the estimates relating to financial assets may be affected by theunexpected changes in assumptions etc., and it may have a significant impact on the valuation of financial assets in the
consolidated financial statements for the next fiscal year.

28

（2） Valuation of Inventories
A. Amounts recorded in the consolidated financial statement for the current fiscal year
Inventories

449,254 million yen

B. Information relating to the content of important accounting estimates for the identified items
In the current consolidated fiscal year, the amount of write-down of the inventories to net realizable value was 8,678 million yen.
The valuation method for inventories is described in the notes to the consolidated financial statements: 1 (5) Accounting Policies C.
As the valuation of inventories may be affected by external environments such as economic conditions, weather or trends ofcompetitors, if these factors may be differed from the estimates, it may have a significant impact on the valuation of financial assets
in the consolidated financial statements for the next consolidated fiscal year.

（3） Valuation of Property, Plant and Equipment and Right-of-use Assets
A. Amounts recorded in the consolidated financial statement for the current fiscal year
Property, plant and equipment

221,877 million yen

Right-of-use assets

389,183 million yen

Impairment losses on above assets

2,698 million yen

B. Information relating to the content of important accounting estimates for the identified items
The valuation method for Property, plant and equipment and Right-of-use assets is described in the notes to the consolidated
financial statements: 1 (5) Accounting Policies E.
The grouping of assets is based on the smallest identifiable CGU that independently generate cash inflow. In principle, each store,
including flagship stores, is considered as an individual CGU and recoverable amounts thereon are calculated based on value in
use.
The value in use is calculated based on the cash flow projections with estimates and growth rates approved by management,
applying a discount rate of mainly 13.4%. Theoretically, the projected cash flows cover a five-year period, and do not use a growthrate that exceeds the long-term average market growth rate. The pre-tax discount rate calculation is based on the weighted-average
cost of capital.
These assumptions are subject to considerable uncertainty and may have a significant impact on the Group’s valuation of property,
plant, and equipment and right-of-use assets in the next consolidated fiscal year.

（4) Provisions
A. Amounts recorded in the consolidated financial statement for the current fiscal year
Provisions (current liabilities)

2,642 million yen

Provisions (Non-current liabilities)

50,888 million yen

B. Information relating to the content of important accounting estimates for the identified items
The method for calculating provisions is described in the notes to the consolidated financial statements: 1 (5) Item G pertaining toaccounting policy.
The estimates of provisions may be affected by uncertain future operating conditions and changes in the external environment, andif expenses related to lease contracts of offices or stores are revised, it may be significantly affected in the consolidated financial
statements for the coming consolidated fiscal year.

29

（5）Deferred Tax Assets and Liabilities
A. Amount recorded in the consolidated financial statement for the current fiscal year
Deferred tax assets

38,208 million yen

Deferred tax liabilities

67,039 million yen

B. Information relating to the content of important accounting estimates for the identified items
The method for calculating deferred tax assets and liabilities is described in notes to the consolidated financial statements: 1 (5) Item
L pertaining to accounting policy.
The calculation results may be affected by uncertain future economic conditions and other factors, and if the forecast of future taxable
incomes is revised, the total amount of deferred tax assets and liabilities may be significantly affected in the consolidated financial
statement for the next consolidated fiscal year.
For the US business this consolidated fiscal year, 26,275 million yen of deferred tax assets that were not previously recognized arerecognized to the extent that the recoverability of deferred tax assets in future taxable income has increased due to improvements inthe economic environment.
In addition, in the current consolidated fiscal year, it was resolved that the dividend policy of its overseas subsidiaries would bechanged in order to make more effective use of the Group's internal funds. As a result of the revised possibility that the reversal of
temporary differences associated with investments in subsidiaries may not be occurred within the foreseeable period, 22,388 million
yen was added to deferred tax liabilities.

4 Notes to the Consolidated Statements of Financial Position（1）Accumulated depreciation of property, plant and equipment
343,937 million yen
Accumulated impairment losses are included in accumulated depreciation.

（2）Allowance for doubtful accounts directly deducted from trade and other receivables
828 million yen（3）Contingent liabilities
Guarantee on loans payable to financial institutions
399 million yen

5 Notes to the Consolidated Statement of Changes in Equity（1）Types and number of shares outstanding
Class of shares

Number of shares at the end of
the current consolidated fiscal year (shares)

Common stock

318,220,968（2）Share subscription rights
Type and number of underlying shares for share subscription rights as at the end of the consolidated fiscal
year (excluding those that have not reached the first day of their exercise period)
Common stock
299,814 shares

30

（3）Dividends
A. Dividend paid
1. Dividend approved at the Board of Directors’ Meeting held on 1 November 2022:• Total dividends
34,744 million yen• Dividends per share
340 yen• Record date
31 August 2022
• Effective date
4 November 2022
2. Dividend approved at the Board of Directors’ Meeting held on 13 April 2023:• Total dividends
38,330 million yen• Dividends per share
375 yen• Record date
28 February 2023
• Effective date
12 May 2023
(Note)Our common stock has been split on a 3-to-1 basis, effective 1 March 2023.
The dividends per share listed does not take into consideration this stock split.

B. Declaration date for dividend related to the year ended 31 August 2023 with an effective datein the following fiscal year
• Resolution date
6 November 2023
• Total dividends
50,600 million yen• Dividends per share
165 yen• Record date
31 August 2023
• Effective date
10 November 2023

31

6 Notes to Financial Instruments（1）Matters relating to the management of financial instruments
A. Financial risk management
In relation to the cash management, the Group seeks to ensure effective utilization of group funds throughthe Group’s Cash Management Service. The Group obtained credit facilities from financial institutions.
Any temporary surplus funds are invested mainly in fixed interest rate-bearing instruments with minimal
credit risk. The Group entered into foreign currency forward contracts to hedge risk arising fromfluctuations in foreign currency exchange rates and did not conduct any speculative trading in derivatives.
B. Market risk management
1. Foreign currency risk
The Group conducts its business on a global scale, and is exposed to foreign currency risk in relation topurchases and sales transactions and financing denominated in currencies other than the local currenciesof those countries in which the Group operates its business. In regard to operating obligations
denominated in foreign currencies, the Group in principle hedges risk by using foreign currency forward
contracts and other instruments for foreign currency risk assessed on a monthly basis.
2. Interest rate risk management
The Group’s interest-bearing borrowings are mainly corporate bonds, but the Group maintains positions
in cash and cash equivalents that exceed the outstanding balance of its interest-bearing borrowings. At
present, the impact of interest payments on the Group is quite small. Consequently, the Group’s current
level of interest-rate risk is minor.
3. Risk management in equity instruments
The Group is exposed to the risk of price volatility in equity financial instruments. The Group holds noequity financial instruments for short-term trading purposes. The Group makes regular periodic checks ofthe fair value of the equity financial instruments it holds, as well as the financial health of the issuers.
4. Risk management in debt instruments
The Group does hold debt instruments, but all are held-to-maturity, and investments are restricted tobonds that either meet or exceed a fixed rating with the aim of mitigating risks arising from losses due todefault or similar.

C. Credit risk management
When the Group initiates ongoing transactions where receivables will be generated on an ongoing basis,the finance department manages the Group’s risk exposure by setting credit limits and credit periods, as
needed. Accounts receivable encompasses many customers spanning a wide range of industries andgeographic regions. The Group conducts regular credit checks of the companies it does business with,and takes appropriate protective measures as necessary, such as requiring collateral. The Group does
not have excessively concentrated credit risk exposure to any single company or corporate group. As fordeposits and guarantees, the Group mitigates risk by conducting regular monitoring of the companies
with which it does business for early detection of any worsening of their financial health.
D. Liquidity risk management
The Group manages liquidity risk by formulating and revising its funding plans on a timely basis andmaintains an appropriate level of liquidity on hand. The ultimate responsibility for management of liquidity
risk lies with the CFO appointed by the Board of Directors. The finance department, under the directionof the CFO, performs the day-to-day aspects of liquidity risk management by maintaining appropriate
levels of surplus funds and bank loans, and by monitoring budgets and cash flows.

32

（2）Matters relating to the fair value of financial instruments
The carrying amounts of financial instruments and their fair values as at 31 August 2023 are shown
below. Financial instruments measured at fair value on recurring basis are not included in this list,
because the fair values of those financial instruments are the same as respective carrying amounts.
(Millions of yen)

Financial assets

Carrying amount

Fair value

Bonds

440,738

438,995

Security deposits / guarantees

69,446

68,891

Total

510,184

507,887(Millions of yen)

Financial liabilities

Carrying amountCorporate bonds

Fair value

239,686

236,826

239,686
Total(Notes) The above includes the outstanding balance of bonds due within one year

236,826

Notes concerning financial assets and financial liabilities for which carrying amount approximates their fairvalue have been omitted.
The fair value of bonds is calculated with reference to publicly available market prices.
The fair value of security deposits / guarantees is measured by the present value of future cash flows anddiscounted by the current market rate.
The fair value of corporate bonds is calculated with reference to publicly available market prices.
The fair value measurements of bonds, deposits and guarantees, and corporate bonds are classified as
Level 2.

（3）Measurement of fair value recognized in the consolidated statement of financial position
The following tables illustrate the fair value measurement hierarchy of the Group’s financial instruments.
All assets and liabilities for which fair value is measured or disclosed in the interim condensed financial
statements are categorized within the fair value hierarchy based on the following characteristics:
Level 1 - based on quoted prices (unadjusted) in active markets for identical assets or liabilities
Level 2 - based on valuation techniques for which the lowest level input that is significant to the fairvalue measurement is observable, either directly or indirectly
Level 3 - based on valuation techniques for which the lowest level input that is significant to the fairvalue measurement is unobservable
When multiple inputs are used to measure fair value, the fair value level is determined based on the
input with the lowest level categorization in the overall fair value assessment.
The following tables illustrate the fair value measurement hierarchy of the Group’s financial instruments:(Millions of yen)
Level 1
Financial assets measured at fair value throughother comprehensive income
Financial assets measured at fair value throughprofit or loss
Financial assets and financial liabilities designatedas hedging instruments — Fair value
Net amount

33

Level 2

Level 3

Total

-

-

189

189

-

3

-

3

-

241,238-

241,238-

241,242189

241,432

For the valuation of Level 2 derivative financial instruments, we use a valuation model that uses
observable data on the measurement date using inputs such as interest rates, yield curves, currency
rates, and volatility in comparable instruments.
Financial instruments classified as Level 3 consist mainly of unlisted shares. The fair values of unlisted
shares are measured by the division responsible in the Group according to the Group’s accounting
policy, etc., using the immediately preceding figures available for each quarter.
There were no significant changes due to the purchase, sale, issuance and settlement of Level 3
financial instruments, and no transfers between Levels 1, 2 and 3.

7 Per Share Information
Equity per share attributable to owners of the parent

5,939.33 yen

Basic earnings per share for the year

966.09 yen

Diluted earnings per share for the year

964.48 yen

Our common stock has been split on a 3-to-1 basis, effective 1 March 2023. Equity per share
attributable to owners of the parent, basic earnings per share for the year, and diluted earnings per
share for the year have been calculated assuming this stock split was conducted at the beginning of
this fiscal year.

8 Notes to Significant Subsequent Events
Not applicable.

34

Balance Sheet (As at 31 August 2023)
Item

As at 31
August 2022

(Millions of yen)

As at 31

Item

August 2023

As at 31

As at 31

August 2022

August 2023

Liabilities

AssetsCurrent assets

819,900

635,557

Current liabilities

222,306

119,422

Cash and deposits

543,933

498,193130,000-

Operating accounts receivable

38,36342,579Current portion of corporate
bonds

Securities

20,000Accounts payable

7,063

10,187

149,496

Accrued expenses

6,380

5,660

Short-term loans receivablefrom subsidiaries andassociates

65,66435,961

Deposits received

33,004

96,582

Accounts receivable fromsubsidiaries and associates

22,368

6,608

Others7,624

33,246

Allowance for doubtful
accounts（7,552）(1,031)

Non-current assets

542,378756,513(Property, plant and equipment)

25,50324,900

Buildings

17,776

17,179Provision for bonuses

3,501

4,092

Income taxes payable

40,012-Others

2,344

2,898

Non-current liabilities

262,698

260,173

Corporate bonds payable

240,000

240,000

Lease obligations

14,186

12,694

Guarantee deposits received

3,385

3,337

Provision for loss on
business of subsidiaries andassociates

1,324

-

Others

3,801

4,141

485,005

379,595

Structures
Machinery, vehicles, furniture andfixtures

100

158

6,387

5,697

Land

1,123

1,123

88

48

Shareholders’ equity

867,828

1,005,644

Capital stock

10,273

10,273

Capital surplus

16,247

17,892

4,578

4,578

Leased assets
Construction in progress

26

691

(Intangible assets)

58,62968,377

Software47,94950,979Software in progress

10,66917,387

Others(Investments and other assets)
Investment securities

109458,244663,235450

143420,362

622,796

9,251

7,567

7,213

45,230Total liabilities
Net assets

Legal capital surplus
Other capital surplus

Shares of subsidiaries
and associates
Investments in capital ofsubsidiaries and associates
Long-term loans receivable fromsubsidiaries and associates

11,66813,313856,120

992,191

Legal retained earnings

818

818

Other retained earnings

855,302991,373

General reserve

185,100

185,100

Retained earnings brought

670,202806,273(14,813)(14,714)

1,660-

Retained earnings

forwardTreasury stock
Valuation and translation
adjustments

Leases and guarantee deposits

5,732

5,777

Deferred tax assets

4,997

4,680

Valuation differences onavailable-for-sale securities

1,660

-

Lease receivables

14,136

12,665

Share subscription rights

7,784

6,831

1

1

877,273

1,012,475

1,362,278

1,392,070

OthersAllowance for doubtful
accounts
Total assets（3,900）1,362,278

Total net assets
Total liabilities and net assets(35,628)
1,392,070(Note) Amounts are rounded down to the nearest million Japanese Yen.

35

Statement of Income (Year ended 31 August 2023)
Item(Millions of yen)

Year ended

Year ended

31 August 2022

31 August 2023

Operating revenue

283,165

327,932

Operating expenses

96,337102,014

Operating profit

186,828

225,918

Non-operating income

111,220

29,1892,877

10,21857

11108,106

18,91417845

Non-operating expenses

2,091

4,010

Interest expenses

1,988

3,948

102

61

295,957

251,097

Extraordinary income

594

4,309

Gain on sale of investment securities
Reversal of provisions for loss on guarantees

159

2,985

435

-

Reversal of provision for loss on business of

-

1,324

4,479

29,604112

17

Loss on valuation of shares of subsidiaries and associates

1,651

4,177

Provision of allowance for doubtful accounts for
subsidiaries and associates

1,721

25,207

11

-

983

-

-

201

Profit before income taxes

292,072

225,803

Income taxes – current

34,83915,607

Income taxes – deferred

（970）

1,050

Interest income
Interest on securities
Foreign exchange gains
OthersOthersOrdinary profit

subsidiaries and affiliates
Extraordinary losses
Losses on retirement of non-current assets

Loss on valuation of investment securities
Provision for loss on business of subsidiaries andaffiliates
Impairment losses

Profit258,203(Note) Amounts are rounded down to the nearest million Japanese Yen.

36

209,145

Statement of Changes in Net Assets (Year ended 31 August 2023)(Millions of yen)
Shareholders’ equity
Capital surplus

Retained earnings
Other retained earnings

Capital
stock

Legal
capitalsurplus

OthercapitalsurplusTotal
capitalsurplusLegalretainedearnings

10,273

4,578

11,66816,247

Dividends---

Profit--Acquisition of treasury stock-

Disposal of treasury stock

Total
retainedearnings

Generalreserve

Retainedearnings
brought
forward818

185,100

670,202856,120---(73,704)(73,704)

-

-

-

-

209,145

209,145

-

-

-

-

-

-

-

-

-

1,645

1,645

-

-

-

-

Net changes of items otherthan those in shareholders’equity

-

-

-

-

-

-

-

-

Net changes during the year

-

-

1,645

1,645

-

-

136,071

136,071

10,273

4,578

13,313

17,892

818

185,100

806,273

992,191

Share subscription
rightsTotal net
assets

As at 1 September 2022
Changes during the year

As at 31 August 2023

Valuation and translation
adjustments

Shareholders’ equity
Total shareholders’equityValuationdifferences onavailable-forsale securities

Total valuationand translation
adjustments(14,813)867,828

1,660

1,660

7,784

877,273

Dividends-(73,074)---(73,074)

Profit-209,145---

209,145

Acquisition of treasury stock

(27)

(27)

-

-

-

(27)

Disposal of treasury stock

127

1,772

-

-

-

1,772

Net changes of items otherthan those in shareholders’equity--(1,660)(1,660)(953)(2,613)

Net changes during the year

99

137,816(1,660)(1,660)(953)

135,202(14,714)1,005,644

-

-

6,831

1,012,475

Treasurystock
As at 1 September 2022
Changes during the year

As at 31 August 2023

(Note) Amounts are rounded down to the nearest million Japanese Yen.

37

Notes to Financial Statements
1 Significant Accounting Policies（1）Valuation methods for securities
A. Shares of subsidiaries and associates
Cost determined by average method
B. Other securities
Listed securities:

Unlisted securities:

Fair value method determined by the market price registered on the balance sheet
date (31 August), reported as “unrealized gains/ (losses) on available-for-salesecurities”, a separate component of net assets. The cost of securities sold isdetermined based on the moving average cost method.
Cost determined by average method（2）Depreciation method of non-current assets
A. Property, plant and equipment (other than leased assets)
Property, plant and equipment are depreciated using the straight-line method. The principal ranges of
estimated useful lives are as follows:
Buildings & structures
5 to 35 years
Machinery, vehicles, furniture and fixtures
5 years
B. Intangible assets
Intangible assets except for leased assets are amortized using the straight-line method. Software forinternal use is amortized using the straight-line method based on an estimated useful life of 5 years.
C. Leased assets
Finance lease transactions that do not relate to transfer of ownership.
The leased assets are amortized using the straight-line method over the lease terms at zero residual
value.

（3）Deferred assets
Issuance expenses of corporate bonds
Issuance expenses of corporate bonds are expensed as incurred.

38

（4）Recognition and Measurement of Significant Provisions and Allowances
Allowance for doubtful accounts
Provision for potential bad debts, loan loss ratios are recorded for general accounts receivable. Specified
doubtful accounts receivable are reviewed individually to determine their recoverability, and an estimate forthe non-recoverable portion is recorded.
Provisions for bonuses
To prepare for the payment of bonuses to employees, the expected bonus payments are accrued on thebalance sheet.
Allowances for Affiliated Company Operating Losses
To prepare for operating losses of affiliates, estimated losses are recorded, taking into account theirfinancial positions.

（5）Basis of revenue and expense recognition
Service Fee Income
The Company has an obligation to provide administrative support services to its subsidiaries. As theperformance obligation shall be satisfied by providing the services to its subsidiaries over time, revenue isrecognized depending on providing the services.

（6） Application of tax effect accounting in connection with the transition from theconsolidated taxation system to the group tax sharing system.
Effective from the beginning of the current fiscal year, the Company has shifted from the consolidated
taxation system to the group tax sharing system. In connection with the transition, the Company complies
with the Practical Solution on the Accounting and Disclosure Under the Group Tax Sharing System (ASBJ
PITF No. 42, August 12, 2021. Hereinafter referred to as “ASBJ PITF No. 42”), which provides for thetreatment of accounting and disclosure regarding corporate taxes, local corporation taxes and tax effectaccounting when applying the group tax sharing system. In addition, based on Section 32 (1) of ASBJ PITF
No. 42, it has been deemed that there is no impact from the changes in accounting policies in conjunction
with the application of ASBJ PITF No. 42.

39

2 Changes in accounting policies
Application of the Accounting Standard for Fair Value Measurement
The "Implementation Guidance on Accounting Standard for Fair Value Measurement" (ASBJ Guidance No. 31, June 17, 2021.
Hereinafter, the "Fair Value Measurement Standard Implementation Guidance") was adopted in the beginning of the current
fiscal year, and as such the Company has prospectively applied the new accounting policies set forth in the Fair Value
Measurement Standard Implementation Guidance in accordance with the transitional treatment set forth in Article 27-2 of the
Fair Value Measurement Standard Implementation Guidance.
The application has no impact on financial information.

3 Notes to Balance Sheet（1）Accumulated depreciation of property, plant and equipment
18,651 million yen
Accumulated impairment losses are included in accumulated depreciation.

（2）Payables and receivables for subsidiaries and associates
1. Short-term receivables

44,136 million yen

2. Short-term payables

99,586 million yen

3. Long-term receivables

12,665 million yen

4. Long-term payables

2,466 million yen（3）Contingent liabilities
Guarantees has applied as follows to lease payments at affiliates and loans payable to financial institutions.

1. Guarantee for office and retail store leases

16,103 million yen

2. Guarantee on loans payable to financial institutions

6,483 million yen

404 Notes to Statement of Income
Transactions with subsidiaries and associates
Operating transactions
Operating revenue
Operating expense

326,380 million yen
3,814 million yen

Non-operating transactions
Non-operating expense

2,259 million yen

5 Notes to Statement of Changes in Net Assets
Types and number of shares of treasury stock as at 31 August 2023
Class of Shares
Number of shares as at 31 August 2023 (shares)
Common stock

11,552,70041

6Notes to Deferred Tax

Main breakdown of the causes of deferred tax assets and deferred tax liabilities
Deferred tax assets:
Provisions for bonuses

1,330 million yen

Depreciation

1,607 million yen

Loss on shares of subsidiaries and associates

58,119 million yen

Impairment losses

241 million yen

Allowance for doubtful accounts

11,225 million yen

Unused tax losses carried forward

199 million yen

Software2,123 million yen

Others7,511 million yen

Subtotal deferred tax assets

82,358 million yen

Valuation allowances for tax loss carryforwards(199) million yen

Valuation allowances pertaining to the sum total of
future deductible temporary differences etc.
Subtotal valuation allowance(74,523) million yen(74,722) million yen

Total deferred tax assets

7,635 million yen

Deferred tax liabilities:
Temporary differences on shares of subsidiaries

1,893 million yen

Others

1,061 million yen

Total deferred tax liabilities

2,954 million yen

Net deferred tax assets

4,680 million yen

427

Notes to the Related Party Transactions（1）Subsidiaries and associates
Type

Company
nameLocation

Capital stock orinvestment

Businessdetails(Millions of yen)

Percentage ofsharesRelationshipwith relatedparties(%)

Subsidiary

Yamaguchi
City,
Yamaguchi

1,000

Clothingrelated
business

100.0

Amount oftransaction

Account(Millions of yen)

Relation ofservicerendering,etc.
UNIQLO
CO., LTD.

Contents oftransactions

Interlocking
directors(Millions of yen)

Receipt of service
fee etc. (Note 1)

36,184

Operating accounts
receivables

18,505

Receipt of lease
payments (Note 2)

1,451

Current leasereceivables

1,562

Non-current leasereceivables

12,665

Real estateleasing, etc.
Deposition
contract

Balance at
31 August2023

Lending of funds(Note 3)

4,992

Short-term loans
receivable from subsidiaries and associates

27,578

Paying out funds(Note 3)60,683

Deposits received

84,430

Payment ofinterest (Note 3)

1,869

Capital increase(Note 4)

202,958

Guarantee (Note5)

12,867

Lending of funds(Note 3)

5,816Long-term loans
receivable from subsidiaries and associates

39,702

Provision ofallowance for
doubtful accounts
for subsidiaries
and associates

27,325

Allowance for
doubtful accounts

33,902

Guarantee (Note
5)

3,928

Guarantee (Note
5)

3,790

Guarantee

Subsidiary

Fast
Retailing
USA,Inc.

New York,
USA

833,612Clothingrelated
business

100.0

Relation ofservicerendering,etc.
Interlocking
directors
Financialassistance
Guarantee

SubsidiaryFAST
RETAILNGFRANCE
S.A.S.

Paris, France

12,552Clothingrelated
business

100.0

Relation ofservicerendering,etc.
Interlocking
directors
Guarantee

Subsidiary

UNIQLO
USA LLCNew York,
USA

13,256

Clothingrelated
business

100.0

Relation ofservicerenderingInterlocking
directors

Terms of business and how they are determined(Notes)1. FAST RETAILING CO., LTD. receives payments as service fee for system service, etc. service fee payments are based ona certain percentage of sales. The rate is determined using a reasonable and uniform standard across the entire group.
2. The receipt of lease payments is set at a reasonable lease payments with consideration of the property price etc.
3. The interest rate relating to the deposit of funds (Paying out funds and Lending of funds) based on the related contract arereasonably determined by considering the market rate. In addition, the deposit transaction amount and loan transaction
amount from the deposit of funds are each given as the net amount of the amount deposited and the amount paid out.
4. Capital increase means making a full additional capital contribution to Fast Retailing USA, Inc.
5. The Company provides guarantees for loans payable to financial institutions and lease payments.
6. Transactions subject to consumption taxes are recorded at amounts exclusive of consumption taxes.

（2）Directors and Major Individual Shareholders
Not applicable8

Notes to Revenue Recognition
43

The information which forms the basis of our understanding of revenues arising from contracts withcustomers is described in “Notes to Financial Statements 1. Significant Accounting Policies (5) Basis ofrevenue and expense recognition.”44

9

Per Share Information
Net assets per share

3,279.26 yen

Earnings per share for the year

682.08 yen

Diluted earnings per share for the year

680.95 yen

Our common stock has been split on a 3-to-1 basis, effective 1 March 2023. Net assets per share,
Earnings per share for the year, and diluted earnings per share for the year have been calculated
assuming this stock split was conducted at the beginning of this fiscal year.

10

Notes to Significant Subsequent Events

Not applicable.

45

(TRANSLATION)
INDEPENDENT AUDITOR'S REPORT

25 October 2023

To the Board of Directors of
FAST RETAILING CO., LTD.:

Deloitte Touche Tohmatsu LLC
Tokyo office

Designated Engagement Partner,
Certified Public Accountant:
Hirofumi Otani

Designated Engagement Partner,
Certified Public Accountant:
Akira Kimotsuki

OpinionPursuant to the first item, second paragraph of Article 436 of the Companies Act, we have audited the financial statements of FASTRETAILING CO., LTD. (the "Company"), namely, the balance sheet as at 31 August 2023, and the statement of income and thestatement of changes in net assets for the 62nd fiscal year from 1 September 2022 to 31 August 2023, and notes to the financial
statements and the accompanying supplemental schedules.
In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the Company as at
31 August 2023, and its financial performance for the year then ended in accordance with accounting principles generally accepted inJapan.
Basis for Opinion
We conducted our audit in accordance with auditing standards generally accepted in Japan. Our responsibilities under those standards
are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are independentof the Company in accordance with the provisions of the Code of Professional Ethics in Japan, and we have fulfilled our other ethicalresponsibilities as auditors. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion.
Other Information
Management is responsible for the other information. Audit & Supervisory Board Members and Audit & Supervisory Board are
responsible for overseeing the Directors' execution of duties relating to the design and operating effectiveness of the controls over theother information. The other information comprises the information included in the Business Report and the accompanying supplemental
schedules.
46

Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion
thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider
whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise
appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required toreport that fact. We have nothing to report in this regard.
Responsibilities of Management and Audit & Supervisory Board Members and Audit & Supervisory Board for the Financial
Statements
Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles
generally accepted in Japan, and for such internal control as management determines is necessary to enable the preparation of financial
statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is responsible for assessing the Company's ability to continue as a going concern,
disclosing, as applicable, matters related to going concern in accordance with accounting principles generally accepted in Japan.
Audit & Supervisory Board Members and Audit & Supervisory Board are responsible for overseeing the Directors' execution of duties
relating to the design and operating effectiveness of the controls over the Company's financial reporting process.
Auditor's Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material
misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Misstatements can arise fromfraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence theeconomic decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with auditing standards generally accepted in Japan, we exercise professional judgment and maintainprofessional skepticism throughout the audit. We also:• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform
audit procedures responsive to those risks. The procedures selected depend on the auditor's judgment. In addition, we obtain audit
evidence that is sufficient and appropriate to provide a basis for our opinion.
• Obtain, when performing risk assessment procedures, an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of theCompany's internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures
made by management.
• Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence
obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability
to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor'sreport to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our
conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may
cause the Company to cease to continue as a going concern.
• Evaluate whether the overall presentation and disclosures of the financial statements are in accordance with accounting principles
generally accepted in Japan, as well as the overall presentation, structure and content of the financial statements, including the47

disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fairpresentation.
We communicate with Audit & Supervisory Board Members and Audit & Supervisory Board regarding, among other matters, the planned
scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during
our audit.
We also provide Audit & Supervisory Board Members and Audit & Supervisory Board with a statement that we have complied with
relevant ethical requirements regarding independence, and communicate with them all relationships and other matters that may
reasonably be thought to bear on our independence, and where applicable, related safeguards.
Interest Required to Be Disclosed by the Certified Public Accountants Act of Japan
Our firm and its designated engagement partners do not have any interest in the Company which is required to be disclosed pursuant to
the provisions of the Certified Public Accountants Act of Japan.

Notes to the Readers of Independent Auditor's Report
This is an English translation of the independent auditor's report as required by the Companies Act of Japan for the conveniences of thereader. "The accompanying supplemental schedules" referred to in the "Opinion" section of this English translation are not included in
the attached financial documents. The other information in "the accompanying supplemental schedules" referred to in the "Other
Information" section of this English translation is not translated.

48

Report by the Audit & Supervisory Board

AUDIT REPORTWith respect to the directors’ performance of their duties during the 62nd fiscal year (from 1 September 2022 to 31 August 2023), the Audit & Supervisory Board has preparedthis audit report after deliberations based on the audit reports prepared by each Audit & Supervisory Board Member, and hereby reports as follows.
1. Method and Contents of Audit by Each Audit & Supervisory Board Member and the Audit & Supervisory Board(1) The Audit & Supervisory Board has established the audit policies, assignment of duties, etc. and received a report from each Audit & Supervisory Board Member regarding
the status of implementation of their audits and results thereof. In addition, the Audit & Supervisory Board has received reports from the Directors and the Accounting Auditor
regarding the status of performance of their duties and requested explanations as necessary.
(2) In conformity with the Audit & Supervisory Board Members’ auditing standards established by the Audit & Supervisory Board, and in accordance with the audit policies andassignment of duties, etc., each of the Audit & Supervisory Board Members endeavored to facilitate a mutual understanding with the Directors, the internal audit division,and other employees, etc., endeavored to collect information and maintain and improve the audit environment, and has conducted audit by the following methods.
(a) Each Audit & Supervisory Board Member has attended Board of Directors meetings and other important meetings, received reports on the performance of duties from
Directors and other employees and requested explanations as necessary, examined important approval/decision documents, and inspected the corporate affairs and assets
at the Company’s head office and principal places. With respect to subsidiaries, each Audit & Supervisory Board Member endeavored to facilitate mutual understanding andinformation exchange with the Directors and Audit & Supervisory Board Members of each subsidiary and received operational reports as necessary.
(b) In relation to (i) the contents of Board of Directors’ resolutions regarding the system for ensuring Directors’ performance of duties as described in the Business Reportcomply with all laws, regulations and Articles of Incorporation and also comply with any other systems deemed necessary under Article 100, Paragraphs 1 and 3 of theOrdinance for Enforcement of the Companies Act of Japan for ensuring appropriate corporate affairs of a corporate entity comprising a joint stock company and its
subsidiaries, and (ii) the systems (internal control systems) based on those regulations, each Audit & Supervisory Board Member has regularly received reports on the
structure of that system and the status of its operation from Directors and other employees, requested explanations as necessary and expressed its opinion.
(c) Each Audit & Supervisory Board Member has monitored and verified whether the Accounting Auditor maintained its independence and properly conducted its audit, received
a report from the Accounting Auditor on the status of its performance of duties, and requested explanations as necessary. Each Audit & Supervisory Board Member was
notified by the Accounting Auditor that it had established a “system to ensure that the performance of the duties of the Accounting Auditor was properly conducted” (thematters listed in the items of Article 131 of the Ordinance of Company Accounting) in accordance with the “Quality Control Standards for Audits” (Business Accounting
Council on October 28, 2005) and requested explanations as necessary.
Based on the above-described methods, each Audit & Supervisory Board Member examined the Business Report and its supplementary schedules, as well as the Financial
Statements (the balance sheet, the statement of income, the statement of changes in net assets, and the notes to the financial statements) and its supplementary schedules,
and the Consolidated Financial Statements (the consolidate statement of financial position, theconsolidated statement of profit or loss, the consolidated statement of changes in equity, and the notes to the consolidated financial statements) for the fiscal year underconsideration.
Based on the above-described methods, each Audit & Supervisory Board Member examined the Financial Statements (the balance sheet, the statement of income, thestatement of changes in net assets, and the notes to the financial statements) and the supplementary schedules, and the Consolidated Financial Statements (the consolidated
statement of financial position, the consolidated statement of profit or loss, the consolidated statement ofchanges in equity, and the notes to the consolidated financial statements) for the fiscal year under consideration.
2. Results of Audit(1) Results of Audit of Business Report, etc.
(i) We acknowledge that the Business Report and the supplementary schedules fairly present the status of the Company in conformity with the applicable laws, regulations, and
the Articles of Incorporation.
(ii) We acknowledge that no misconduct or material fact constituting a violation of laws, regulations, or the Articles of Incorporation was found with respect to the Directors’
performance of their duties.
(iii) We acknowledge that the Board of Director’s resolutions with respect to the internal control systems are appropriate. We did not find any matter in the Business Report or
the Directors’ performance of their duties concerning the internal control systems that requiring mentioning.
(2) Results of Audit of the Financial Statements and the Supplementary Schedules
We acknowledge that the methods and results of audit performed by the Independent Auditor, Deloitte Touche Tohmatsu LLC, are appropriate.
(3) Results of Audit of the Consolidated Financial Statements
We acknowledge that the methods and results of audit performed by the Independent Auditor, Deloitte Touche Tohmatsu LLC, are appropriate.

25 October 2023

The Audit & Supervisory Board of FAST RETAILING CO., LTD.
Standing Audit & Supervisory Board Member Masaaki Shinjo
Standing Audit & Supervisory Board Member Masumi Mizusawa
Audit & Supervisory Board Member Keiko Kaneko
Audit & Supervisory Board Member Takao Kashitani
Audit & Supervisory Board Member Masakatsu Mori

49