1To express the FR spirit in a nutshell, we are all about innovation and challenge.
The FR group is a group of companies willing to stand up and challenge oldexisting bonds with strong conviction and high ambition to realize an even betterworld.
We have already managed to change the traditional structure of apparelretailing in Japan, and to change the way that people view and value theirclothes.
Our corporate group should be made up of people with a high ambition andstandard looking to realize good ideas, introduce them into the world,
revolutionize, and thus contribute to society.
Now, we are moving beyond Japan and aiming for the worldNow, we are moving beyond the world of casual clothes, to becoming a groupthat can design and produce really good clothes to enrich the lives of people
throughout the world. Then, having got that message across to the consumer
and sold them clothes, we would go on and deliver something even better.
The FR group staff will of course work closely with our partners around theworld to realize this ideal.
21

September 6, 2006

FAST RETAILING business strategy～The past year’s successes and future outlook～

Tadashi Yanai
FAST RETAILING CO., LTD.
Chairman, President & CEO
3

The FAST RETAILING vision
zDevelop truly revolutionary casual clothes thatappeal to people the world over for anywhere
and any time.
zCreate a truly revolutionary global company tobecome the world’s number one casual wear group.
zAchieve net sales of 1 trillion yen andordinary income of 150 billion yen by 2010.

42

Revolutionizing the FR group structure
Major changes
z Rejuvenate our spirit as a group of venturecompanies with global aspirationsz Expand our presence in both retail industryand location, perfect our products, improve
our corporate organizationz Shift to a holding company structure &maximize our M&A strategy
z Genuine & enthusiastic push into non-Japanmarkets
5

Revolutionizing the FR group structure
Go venture!
From a large
corporation to arevolutionary groupof high-margin, highgrowth companies

Go global!
Across the board –markets, products,operations,personnel,management

Go group!
Boost value of overall
group by seeking
synergies with our core
UNIQLO brand andseeking new growth
opportunities within theretail industry
63

The new holding company structure
The FR group

FAST RETAILINGUNIQLOONEZONEg.u.

CABIN

FR France

ASPESIJapan

LINK
LINK THEORY
THEORYHＯLDINGSHOLDINGS

U.K.
Comptoir Des
Cotonniers

CHINA

Princesse
tam.tamU.S.A.
CDC Japan
KOREA
Hong Kong

7

What the holding company will do?

zAttract good business and talented managers
zRealize a fresh venture, global and group spirit
zEstablish a group company governing structure84

Strategy on Ｍ＆Ａ, business tie-ups
Each center around the world will look to create agroup of companies and a team of managers

LondonParis

New York
Seoul

MiranShangihai/Hongkong

Tokyo

9The success of UNIQLO flagship stores
The success of the Ginza store last autumn
The store upped its profits
in the superior shopping
area of Ginza
The role of the Ginza store
The Japanese flagshipstore displaying the verylatest in UNIQLO fashion
and advertising thoseconcepts across the wholecountry.

105

The UNIQLO flagship store challenge
The challenge ahead this autumn for the NY Sohostore
New York Soho store
The world’s biggest UNIQLO
at 3,300 square meters
The role ofthe NY SOHO store
A global flagship store
resplendent with the top levelproducts, displays and services
that only UNIQLO can offer.
11UNIQLO Shanghai flagship store
Opening of the UNIQLO Shanghai flagship store※The photo is of theopening of the Shanghai
Ganghui store afterrefurbishment.

Tentative opening date : Saturday December 9, 2006
Location: Pudong, Shanghai
12
Shop floor: 2,310 square meters

6Large-scale UNIQLO stores in Japan
Large-scale stores (type and size)
Store nameLocation

Shop floor(squaremeters)

Open date

Type of store

Shinsaibashisujistore

Chuo-ku, OsakaCityApprox. 2145

2004/10/9

Urban roadside type

Kuzuha mall
store

Hirakata, Osaka

Approx. 1815

2005/4/14

Suburban SC type

Ito-yokado
Musashisakai
store

Musashino City,TokyoApprox. 1650

2005/7/1

Suburban SC type

LALA Garden
Tsukuba store

Tsukuba City,Ibaragi

Approx. 1650

2005/10/1

Suburban SC type

Ginza store

Chuo-ku, Tokyo

Approx. 1485

2005/10/7

Urban roadside type

Mina Tenjin
store

Fukuoka City,Fukuoka

Approx. 1980

2005/10/29

Developed withincommercial facility

Kasugai store

Kasugai City, Aichi

Approx. 1650

2005/12/2

Roadside type13

Strong pace of domestic
large-scale store openings
PeriodOpenings per year

Cumulative total

Yr to Aug 2005

3 stores3 storesYr to Aug 2006

4 stores7 storesYr to Aug 2007

20 stores planned

27 stores

Yr to Aug 2008

40 stores planned

67 stores

Yr to Aug 2009

40 stores planned

107 stores

Acceleratedopenings

14

7

Potential for UNIQLO domestic annual sales
There is still untapped potential for domestic UNIQLO
sales totaling a maximum ¥96.0bln per year
Sales floor area

Large-scale
storesRegularstores

Small-scale
storesMonthly sales pertsubo(3.3 sq m)

Monthlynet sales

Annualnet sales

New storesper year

Increase inannual netsales\250,000￥125mln￥1.5bln

40 stores￥60.0bln\250,000￥50mln￥0.6bln

50 stores￥30.0bln\500,000￥25mln￥0.3bln

100 stores￥6.0blnapprox 500
tsubo(approx 1650 sq m)

approx 200
tsubo(approx 660 sq m)

approx 50 tsubo(approx 165 sq m)￥96.0bln

Total※

In calculating the latent market potential for increased annual net sales,
we have not incorporated store closures through scrap and build orreduced income at existing stores resulting from the new store competition.

15

Domestic large-scale store opening plans
New store openings in autumn/winter 2006
Store nameLocation

Shop floor(sqm)Open date

Store type

LAZONA Kawasaki store

Kawasaki City,
Kanagawa

Approx. 1585

2006/9/28

Suburban SC
type

AEON Moriguchi Dainichi
store

Moriguchi City, Osaka

Approx. 1650

2006/9/29

Suburban SC
type

Lala Boat Tokyosu store

Kotoku, TokyoApprox. 1155

Oct 2006

Suburban SC
type

AEON Hassan store

Sapporo City, Hokkaido

Approx. 1848

Oct 2006

Suburban SC
type

Shimachu Higashikasai

Edogawa-ku, TokyoApprox. 1650

Nov 2006

Suburban SC
typeShimachu Soga store

Chuo-ku, Chiba

Approx. 1320

Nov 2006

Suburban SC
type

Shimachu Sagamihara

Sagamihara City,
Kanagawa

Approx. 1750

Nov 2006

Suburban SCtype

Kakogawa Park Town store

Kakogawa City, Hyogo

Approx. 1715

Dec 2006

Suburban SC
type

Yodobashi Umeda store

Osaka City, Osaka

Approx. 1190

Dec 2006

Urban SC type

DIAMONDCITY carat store

Kawaguchi City,
Saitama

Approx. 1155

Dec 2006

Suburban SC
type168

Domestic large-scale store opening plans
Opening of LAZONA Kawasaki store

Opening date： September 28, 2006
Location: Kawasaki City, KanagawaShopfloor: 1,585 sqm (1 level/suburban SC type)17

UNIQLO 2006 Fall/Winter collection
Development/sale of “Skinny Jeans” line
Good perception of fashion signs becomes instant mass trend

189

UNIQLO 2006 Fall/Winter collection
Designers Invitation Project
Incorporating the world’s best talent to create fun
garments with true value for the consumer

19

UNIQLO 2006 Fall/Winter collection
Strong leadership from the NY R&D center
The range of garments developed under the strong
leadership of the NY R&D center

20

10g.u.

A mainstay business within the FR group
50 new stores per year, target sales ¥100bln sales【First business year】
Yr to Aug 2007- plan to open 50 stores, sales ¥10.0bln【After 3 years】
Yr to Aug 2009 – plan 150 total stores, sales ¥45.0bln
21

CABIN

Became consolidated subsidiary on
August 24, 2006
Targeting sales of ¥100bln

22

11

Nurture a large group of managers

The direction we are aiming in as a holding company

Business development:
Develop M&A in Japan and overseas,
cultivate strategic operational alliances
Business support:
Provide management support to acquiredcompanies and business tie-ups
23

The FAST RETAILING vision

Develop a truly revolutionary global company withclothes that people the world over can buy anywhere
and any time.
Achieve net sales of 1 trillion yen and ordinary incomeof 150 billion yen by 2010 and become the world’s
number one apparel retail group.

2412