September 4, 2007

FAST RETAILING businessb istrategy
t t〜This year’s performance& future prospects〜

Tadashi Yanai
Chairman & President, FAST RETAILING CO., LTD.
1UNIQLO Japan –The year’s topics●Rapid expansion of large-scale stores
Septemberp2007 – 28 large
g stores●Opening 3,300sqm stores
Kobe HARBORLAND, Setagaya Chitosedai(Tokyo)●Skinny jeans hit product – 4mln (annual sales amounts)●Strategic tie-up
tie up with Toray Industries,Industries Inc.
Inc
●Full on operation of New York R&D Center●UT STORE HARAJUKU. opens
21UNIQLO Overseas operation- The year’s topics●Global flagship stores: Opened SOHO New York store●London: accelerate store opening (11 stores end Aug 07)●Shanghai: Open first large store
in Shanghai Super Brand Mall
●Hong Kong: develop multi-store network(4 storestendd AugA 07)●South Korea: Expand store network(14 stores end Aug 07)
3Japan apparel operation※– The year’s topics●Opened 50 stores for low-priced casualclothinggg
g.u. chain●Making CABIN CO., LTD. a 100% subsidiary●Capital injections for women’s footwear chain,
VIEWCOMPANY CO.,LTD.
●Begin developing unique in-house shoes at
ONEZONE CORPORATION※ Japan apparel operation refers to non-UNIQLO apparel retail operations developed mainly for thedomestic Japanese market.

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Global brands operation ※– The year’s topics●COMPTOIR DES COTONNIERS operationStores
305 stores (end August 2007)
Net sales ¥22.5bln ((Fcst for yyr to end Augg 07))OP
¥5.2bln (Fcst for yr to end Aug 07)−Including 30 COMPTOIR DES COTONNIER Japan stores(end August 2007)●PRINCESSE TAM.TAM operationStores
131 stores (end August 2007)
Net sales ¥12.0bln (Fcst for yr to end Aug 07)
OP¥1.5bln (Fcst for yr to end Aug 07)※ Global brands operation refer to non-UNIQLO operation brands either currently being developedin parts of the world or brands with global market potential.

5UNIQLO Japan – The year ahead●Open 40 large-scale stores per year
●Fundamentally strengthen our women’s wear
●Expand jeans(wide-leg, original basic premium, etc.)●Strengthen & expand revolutionary functional
material clothing●Strengthen & expand
e pand women’somen’s innerwear
inner ear(casual innerwear, functional material innerwear, room wear)●Strengthen & expand home furnishings(towels, bathrobes, sheets & bedcovers, toiletries, etc.)
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UNIQLO Overseas operation– The year ahead●Open a global flagship and large stores in London
Open two stores on Oxford Street simultaneously●Open first (antenna shop) in Paris, decision toopen flagship store●Open large stores in Beijing●Strengthen position in Shanghai
Shanghai, Hong Kong
Kong,Beijing with a view to mass production for theChinese market●Open large stores in Seoul & Myongdong
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Japan apparel – The year ahead●Revitalizing●Rit li i operations
tiatt CABINCABIN,ONEZONE, g.u., VIEWCOMPANY●Aim for early improvement in profitability
by better matching UNIQLO operational
infrastructure and business development.

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Global brands operation– The year ahead●Further accelerate global brands●Open 40 COMPTOIR DES COTONNIERS stores
across Europe.
Begin full development in Japanese market●Consolidate PRINCESSE TAM.TAM position in theFrench market●Reconstruct Theory operation in Europe

9FAST RETAILING M&A strategy
Targets, aims
①A return from the investment itself and growthpotential of the business②Expand FR group brand & operational portfolio＝Enter new markets and new fields, diversify risk
③Gain a platform to help grow individual FR groupcompanies and the group as a whole④④Acquire
management & personnel resources⑤Promote globalization of the overall FR group⑥FR corporate branding105

FAST RETAILING M&A strategy
Synergy benefits①Strengthen business process through mutual
exchange of knowledge, information and personnel(product planning & development, merchandising,production, store development, store operation,sales, etc.)②Sharing of operational infrastructure(manufacturing, distribution, procurement &purchasing, R&D, sales, information systems,management & accounting infrastructure)
11FAST RETAILING M&A strategy
Investment decision process
Specialistp
section develops
potential
targets

Relatede ateddepartments &Executive Board
consideration

Board ofDirectors
decision

Investment decision metrics①Investigate and confirm corporate value &return on investment(Analysis of DCF, IRR, growth potential, business model,products, risks, etc.)②Investigate & confirm investment objectives③Investigate & confirm synergy benefits

126Future M&A strategy
Transform a predominately Japan mass market
portfolio●European brands with global market potential●Companies that can provide a platform for UNIQLO
and other global brand operations●P ti i t in●Participatei new hihighh profit,
fit hihighh growth
th markets
k tInvest another ¥300 – 400bln to these aims
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Original aim of Barney’s takeover proposal①Investment return
・Growth potential of sales and profit at Barneys New York& Barneys CO-OP・Potential for global development of the Barneys concept②Portfolio management, risk diversification
・Penetrate the luxury market
・Penetrate the US market
・Strengthen commitment to affordable luxury market③Synergy effects with existing affordable luxury brands(theory, CDC, PTT)
④Globalization of the FR group⑤Become a fashion industry “insider”

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The FAST RETAILING Vision●To become a global company that develops
globall b lb
business
iffor UNIQLO andd otherthmultiple brands.
●To become a top class world apparelcompany with sales of 1 trillion yen andordinary income of 150 billion yen by 2010

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