1

Declaration of Business Structural Reform, 2005

Creating the World’s No. 1
Casual Clothing Company- Achieve sales of JPY 1 trillion and an ordinary income
margin of 15% in 2010
- Develop a grand design for business operations andimplement business structural reform- Push for globalization and group integration, and put
entrepreneurial values into practice- Build a large, innovative company that grows quickly and ishighly profitable3

Confirming Our Competitive Advantages andRedefining the Business

Timely, Innovative, High Quality, Affordable- Change the way we plan, manufacture and sell innovativeitems that match the times- Raise our standards for each item
- Increase the range of variations for single items
Become a new kind of Japanese company that offers
everyone the chance to wear quality casual clothing4

Final Stage of Marketing and Merchandising

Manufacture excellent products
Communicate product information and images
through the media, and make those products
available to customers in storesSet up sales floors where products are sold inlarge quantities

5World-Class Quality
Achieve World-Class Quality (Highest Possible Level)- Turned highly marketable ideas into products the world had
yet to see, while making the world’s best merchandise
available to consumers- Developed highly functional, innovative clothing thattranscends conventional wisdom- Made luxury items affordable to everyone- Offer essential, everyday items by matching them with thetimes better than any other brand in the world, while
incorporating innovative world-class elements and the best
quality and style in the world- Offer customers products that will enrich their lives
6

Globalization of FR and UNIQLOUNIQLO will become a global brand that willoffer everyone in the world the chance toenjoy wearing truly great clothing

7

FR and UNIQLO’s Targets

Become the World’s No. 1 Apparel
Manufacturer and Retailer
Net sales of JPY 5 trillion and ordinary income of
JPY 1 trillion in 2020
From 2016 onward: Annual
growth of JPY 0.5 trillion<Targets>
2015: JPY 1.7 trillion(JPY 0.4 trillion increase)2013: JPY 1.3 trillion(JPY 0.3 trillion increase)2012: JPY 1 trillion(JPY 0.2 trillion increase)8

Infrastructure to Increase Sales by
JPY 500 billion Per YearTo achieve a net sales increase of JPY 500billion per year:- Open 300 stores that will each generate annual net
sales of JPY 2 billion per year
- Develop 1,500 store managers each year who havethe ability to work internationally9A Brand with the Largest Presence in theWorld’s Major Cities

New York, Paris, London, Tokyo, Berlin, Milan,Los Angeles, San Francisco, Chicago, Shanghai,Beijing, Hong Kong, Seoul, Singapore,
Rio de Janeiro, Buenos Aires….

10Becoming Asia’s No. 1 Brand

To Become the No. 1 Brand in Asia:- Open flagship stores in major cities in key
Asian markets- Beijing, Shanghai, Hong Kong, Taipei, Seoul, Kuala
Lumpur, Bangkok, Jakarta, Manila,
Ho Chi Minh11

Become No. 1 in Asia
to Become No. 1 in the World- Become the No. 1 brand in Japan by far- The region that encompasses China and India
offers the world’s biggest growth opportunities-Become Asia’s No. 1 brand and then become theworld’s No. 1 brand

Winner takes all
12

Global One – ZEN-IN KEIEI

Create a New Company with Associates allover the World
Employees and senior executives around theworld share our management principles andvalues and manage the company in the best way
possible, as if they belonged to a team13

Global Headquarters and Regional Head Offices

Global Headquarters in Tokyo
Establish regional head offices in four cities:- Set up regional head offices in New York, Paris,
Shanghai and Singapore- Create an FRMIC and UNIQLO University in every regional
head office- Hire a large number of employees, including staff who areexpected to become executives, and cultivate them early
14

Opening a Large Number ofStores Throughout the World

Aim to Open 200 to 300 Stores Worldwide Each Year
<Targets>
China
South Korea
Taiwan0ASEAN countries
Europe and the U.S.0

100 stores
50 stores
30 stores
100 stores
20 stores
15

Increase the Number ofProduction BasesAs the Company Expands its Operations, it will setup Production Bases throughout the world:- Build large production bases in countries otherthan China- Bangladesh, Vietnam, Indonesia, and Cambodia- Plan to start full-fledged production in India- Build a production system that will manufacture
five billion articles of clothing per year by 2020

16

UNIQLO Japan- Open flagship stores in Ginza, Shinjuku, Shibuya, Harajuku, andUeno- 100 mega stores (around 3,300 square meters)- 200 large-scale stores (around 1,600 square meters)- 500 mid-scale stores (around 1,000 square meters)- 200 small-scale stores and locations in railway stations- Adopt a scrap-and-build approach- Build a brand that is clearly No. 1 in Japan through global marketingand sales initiatives- Promote PR activities that are linked to overseas PR initiatives

17

UNIQLO in
China and South Korea- Develop a JPY 100 billion business in each country
within two to three years- China: Ultimately a JPY 1 trillion business- South Korea: Ultimately a JPY 200 billion business- Achieve a high operating income margin of over 15%- Function as bases to supply human resources
throughout the world18

UNIQLO in the ASEAN Countries,
Europe and the U.S.
In the ASEAN Countries- Set up a regional head office in Singapore and make it a hub
for the entire region- Open a large number of stores in Malaysia, Thailand,Indonesia, the Philippines and Vietnam- Consider opening stores in India, Australia and New Zealand
In Europe and the U.S.
- Open flagship stores and large-size stores inNew York, Paris, and London.
- Become the No. 1 brand in New York, Paris and London- Open stores in other major cities in Europe and the UnitedStates
19BrandingBranding: The Key To Future Global GrowthCustomers buy clothing not only because of its
specifications, performance, or functions, butalso because of the emotions and empathy they
have for the brand
Which company made and sold these items?
Why is it selling these items?
What kind of people do shoppers want to buy from?
What kind of items do they want to buy?
21

A Great CompanyPeople want to buy excellent items fromwonderful sales clerks at fantastic storesrun by great companies managed by topnotch people
A brand consists of all corporate
activities
Are all employees selling truly great
clothing in the right environment?
22

Global Operations
Who we are / where we are going- A brand that represents Japan in the world- A brand that represents clothing- Customers want to buy from the best company- They want to buy the best items at the best stores- The strengths of Japan- Innovative technologies- The world’s best quality- Meticulousness- Service at stores- Item-by-item management
23

What is UNIQLO? Where is it Going?

UNIQLO Clothing: MADE FOR ALL
UNIQLO is the elements of style
UNIQLO is a toolbox for living
UNIQLO is clothes that suit your values
UNIQLO is how the future dresses
UNIQLO is beauty in hyperpracticality
UNIQLO is clothing in the absolute24

Global Brands
g.u.
- Aim to generate net sales of JPY 50 billion this fiscal year
- Open 50 stores every year
- Open new stores in the ASEAN countries in the near future
Theory- Net sales of JPY 100 billion- Launch full-fledged operations in Europe and Asia
- Turn it into a global brand
COMTOIR des COTONNIERS and Princesse Tam.Tam- In Europe and France in particular, lay the foundations to turnthem into global brands
25

CSR Initiatives- All-Product Recycling Initiative- Grameen UNIQLO- Employ people with disabilities- Provide assistance and contributeto reconstruction efforts in the partsof Japan that were affected by theearthquake and tsunami- Momo-Kaki Orphans Fund
- Special Olympics
28

Mission Statement

Changing clothes.
Changing conventional wisdom.
Change the world.

29

30