UNIQLO Craftsmanship in Producing Clothes

Yoshihiro Kunii
Executive Vice President
Production Division
FAST RETAILING Co., Ltd.

July 30, 2013

UNIQLO’s Production Mission

Provide customers with products that areof the highest possible quality, and instable quantities.

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Aiming for the Best in the World

Product

Finished Material

Raw Material

ServiceTechnology

Spinning

Store

DesignKnitting／Weaving

Information

Pattern

DyeingCompany

SewingEmployee3This Season’s Challenges
We wish for customers around the world to truly enjoy products that are made fromthe highest quality materials.
Silk→ Full-fledged worldwide sales to begin from Fall/Winter 2013
Cashmere→ In Japan, 100% cashmere items had been available at certain stores until last year,and 2013 will be the first time in four years to conduct sales nationwide.
UNIQLO will develop silk and cashmere products made from natural materials.
Offering an overwhelming number of products and variations, made from highest
quality, natural materials with advanced functions. Items of clothing that are

comfortable to wear and have a rich texture, all at a reasonable price.

4Distinctive Features of UNIQLO’s Silk ProductsRaw Material

Silk used in mainstay shirts and dresses is grade 6A and 5A, the highest ranks inthe quality standards determined by China’s state certifying agency. It is estimatedthat in 2012, these two grades represented just 10%* of all the silk made in China,
the world’s top producer of this material.
*Based on estimates provided to UNIQLO by its business partner.

ProcessingPreshrinking improves shape retention, allowing for hand-washing of silk productsthat ordinarily would be prone to shrink when washed.

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Sales Volume for UNIQLO’s Silk Products

Fall/Winter 2013 Sales Target:

Approximately 1.6 million pieces

6Distinctive Features of UNIQLO’s
Cashmere Products

Raw Material
The wool is produced in Inner Mongolia, considered the highest quality.

Finished Material

We use long and thin fibers, with a diameter of 15.5 to 16.5 microns, and length of32 to 34 mm.

7Sales Volume for UNIQLO’s Cashmere Products

Fall/Winter 2013 Sales Target:

Approximately 5.9 million pieces
Cashmere 100% 2,900,000
Cashmere blend 3,000,000

8Supplying UNIQLO Silk and Cashmere

Provide Customers with the Highest Quality Products① Establish stable framework for procuring material that supports global
business development② Manufacture at facility with the world’s highest standards③ Commit to long term production planning④ Stabilize production quantities, to be able to stabilize deliveries⑤ Create the most efficient working process⑥ Manage and control total process, from materials to finished product9

To Provide UNIQLO’s Silk Products
at an Attractive Price

Follow-up ServiceSelling
Warehousing
Shipping

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Washing/Processing
SewingFinished Material
Raw Material
Production
Planning
Material Procurement
Merchandize Planning）

To Continue to Provide Customers withTruly Great Clothing
Three important elements to achieve truly great clothing:Social Quality

ComplianceProvide a safe and healthy work environmentPartner with leading factories, in terms of both quantityand quality



Build trusting relationships with respect, for mutual profitDirectly manage a total and lean processManage costs, with highest level of production efficiency

Partnerships

Business Process1112