September 2, 2009

FAST RETAILING Business Strategy〜A look back and a look forward〜

Tadashi Yanai
Chairman, President and CEO, FAST RETAILING CO., LTD.

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〜FAST RETAILING DREAM〜

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Making a company for the future

Taking a company today to generate future growth.
Observing our history, our present, and our future
All working together to build our future each and every day
Focusing not on the past or the present, but on the future

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FAST RETAILING DREAM 2020

Creating the Number One Apparel Retailer
FY 2009 Sales
UNIQLO JAPAN¥538 bln

Sales in year2020¥1 trln

UNIQLO INTERNATIONAL¥37 bln¥3 trlnJAPAN APPAREL¥51 bln¥0.5 trln

GLOBAL BRANDS¥53 bln¥0.5 trln

FR GROUP TOTAL¥682 bln¥5 trln（July 9th estimate）

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The era of global retailers• Global retailer vs domestic retailer• Clothes that only sell in Japan will no longer selleven in Japan• Asian regional SPA losing shares• Global SPA competing in Tokyo's Ginza

5Overview of the past,
outlook for coming decade
Men's clothing retailer on shopping streets↓Casualwear specialty store↓
Suburban roadside casualwear chain↓National brand↓Global brandBecome Japan's No.1 brand, then take the best of UNIQLO to the world
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UNIQLO’s three strengths
Low prices 〜 High Quality 〜 Style

StylePriceQuality

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Clothes to create new market

Fleece, Cashmere, Merino, Jeans, Down, Dry Polo,HEATTECH, BRATOP, SILKY DRY, SARAFINE, UT,+J, and many more...

UNIQLO offers ‘new to the world’ products andthose products are going global.

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〜How we got where we are today〜

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Our vision in 2005

To achieve 1 trillion yen sales and ¥150bln profit by 2010.
• Creating a leading global apparel manufacturer/retailer by developing
revolutionary casual wear and creating an innovative global company• Drive towards globalization, group integration, and putting
entrepreneurial values into practiceIn 2005, chance of becoming
the world's number one was less than 5%

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FAST RETAILING and UNIQLO today

Record net sales and profit
Net sales ¥682.0bln, operating income ¥108.0bln (FY 2009 - July 9th estimate)

UNIQLO to be recognized as a Global SPA,a Global Retailer• The 99th National Retail Federation International award• The 56th Cannes International Advertising Festival Cyber Gold Award• The 1st Japan Marketing Grand Prize (Japan Marketing Association)• The 5th Asahi Corporate Citizenship Prize• The 25th Grand Prize for Corporate Communication(Japan Institute for Social and Economic Affairs)

11〜Future Strategies〜

12Express the best of UNIQLO
around the world

FROM TOKYO TO THE WORLDUNIQLO = Tokyo / UNIQLO = Japan• Open large numbers of urban stores in Tokyo and in Japan• Open many small stores in railway stations• Open stores in the world's major cities• Global marketing

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UNIQLO １
UNIQLO will provide good price, high quality and style in 2009
Fall / Winter season 2009
•Able to find the most trendy items.
•Able to meet the most updated coordinates

UNIQLO 2009 Fall / Winter 1st campaign “UNIQLO COLLECTION TOKYO 2009”14

UNIQLO 2+J collection: Concept “Open the Future”• Simple luxury• Purity of design• Beauty and comfort• High quality for all
A collection to open new possibilities.

Launch +J globally with the openingof the Paris global flagship.
In store in Japan from Oct 2nd
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Video message about +J collection

Kazuhiro Saito, President, Conde Nast Publications Japan• About Ms. Jil Sander• Ms. Jil Sander & UNIQLO• +J• Expectations for the future

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UNIQLO 3

Creating truly great clothes with new and unique value• Leverage the world’s best Japanese textile technology tomarket and merchandize great clothes• Demonstrate today’s Japanese culture through casual wear tocustomers all over the world

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UNIQLO Japan

Large format stores・October 2nd 2009:
Open new Ginza store
Open Nagoya Sakae store
・October 23rd 2009:
・Spring 2010:
Open Shibuya Prime
・Fall 2010:
Plan to open super large format in Shinsaibashi
Planning to open more large-format stores in Japan's major cities.

Move into urban areas
Open stores in prime city locations including major department stores.

Opening of small stores
Aggressive development in convenient locations in/near railway
stations for customers to drop in en route.

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UNIQLO International 1

Aiming for Asia's No.1
Asia - the world's only huge market with stable growth
Breaking into Asia - the number one priority for US & European companies
and companies looking for future growth
China has the potential to top the world's GDP table
Japan is a part of Asia. An affinity with Japan and Tokyo is a boost forUNIQLOThe Asian market isUNIQLO's biggest growth opportunity
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UNIQLO International 2

From Asian No.1 to the world
China & Hong Kong:
Opening roughly double the current number of stores in FY2010.
100-store network very soon.
Building a system to open 100 stores every year.
Achieve the No.1 brand position

South Korea:
Opening roughly double the current number of stores in FY2010.
100-store network very soon to become No.1 brand position

South East Asia：
Expand into South East Asia from a base in Singapore

Aim to become the solid No.1 in strategic region - ASIA
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UNIQLO International 3
Paris Global FlagshipA showcase to the world. Show the very best, very latest UNIQLO.
Shop floor：approx. 2,150sqm
Open: Thursday, October 1, 2009

CG:RAGAR/TOZAWA DESIGN RENDERINGInterior Design: Masamichi Katayama/Wonderwall Inc.

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UNIQLO International 3
Spreading the news of the global flagship opening

The global flagship store in the making

Paris city bus wrapped in UNIQLO

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UNIQLO International 3
Drawing the high expectations ofthe fashion-conscious Parisians

Limited period store at Malais District

Limited period store at ColletteParis - the world fashion scene
Ultimate stage to show the best of UNIQLO23UNIQLO International 42010 Spring：• Open the first Asian global flagship in Shanghai• Open the first store in Moscow, Russia

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UNIQLO International
the future picture

Sales Image¥1 trillion in Chinese market¥1 trillion in Asia excluding China¥1 trillion in US & European markets
Aggressive opening across Asia
Focused opening in US and Europe major cities

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Japan Apparelg.u.
Nurture into a second UNIQLO
・ Aiming for 200 stores & sales of ¥50bln by 2013
・ Pursue absolute lowest market price such as ¥990 jeans
・ 2009 Fall - launch new ¥990 jeans series（Details to be released on September 8)

CABIN
Perfect workings as a SPA
・Focus effort on two mainstay brands (ZAZIE, enraciné )・Utilize UNIQLO infrastructure to realize fashionable products at low prices
・Open outlet for two mainstay brands within UNIQLO Ginza store as a
CABIN Showcase to boost brand awareness26

FAST RETAILING GROUP 1Maximizing group synergies
Create a new footwear business “UNIQLO Shoes”
・ Draw on internal group experience for product development
・ Sell footwear in UNIQLO large-format stores & VIEW stores（Details to be announced on September 16)

Share information & infrastructure.
（Example）Theory to Paris...
COMPTOIR DES COTONNIERS to New York...

Multiple group brands in same locations and facilities
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FAST RETAILING group 2

Going Global, Sharing Management Vision
Strengthen organization and develop talents• FR Management and Innovation CenterWork = education, education = work
Foster management talents through work
Nurture 200 top managers• Accelerate hiring of new graduates around the world.

Strengthen HQ function• Create a new Tokyo head office - Reinforce partnership with groupcompanies by consolidating head office functions.
(HQ to move to Roppongi Midtown in Spring 2010)28

STATEMENT

Changing clothes. Changing conventional wisdom. Change the world.

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