FAST RETAILING CO., LTD.
迅銷有限公司Interim Report 2019/20
2019.9.1–2020.2.29
Stock Code: 6288

Contents
1. Corporate Profile

1

2. Financial Highlights

2

3. Management Discussion and Analysis

3

4. Information about the Reporting Entity

8

5. Financial Section

12

1. Interim Condensed Consolidated Financial Statements

13(1) Interim Condensed Consolidated Statement of
Financial Position

13(2) Interim Condensed Consolidated Statement ofProfit or Loss and Interim Condensed Consolidated
Statement of Comprehensive Income

15Interim Condensed Consolidated Statement of Profit or Loss

15

Interim Condensed Consolidated Statement ofComprehensive Income17(3) Interim Condensed Consolidated Statement of
Changes in Equity

19(4) Interim Condensed Consolidated Statement of Cash Flows21

2. Others

38

Independent Accountant’s Review Report391. Corporate Profile
Board of Directors
Executive Director

Principal Place of Business in Japan
Midtown Tower 9-7-1

Tadashi Yanai (Chairman of the Board of Directors,
President and Chief Executive Officer)

Akasaka, Minato-ku
Tokyo 107-6231
Japan

Non-executive Directors
Takeshi Okazaki
Kazumi Yanai

Principal Place of Business in Hong Kong
702–706, 7th Floor, Mira Place Tower A

Koji Yanai

No. 132 Nathan Road
Tsim Sha Tsui

Independent Non-executive Directors
Toru Hambayashi (External)

KowloonHong Kong

Nobumichi Hattori (External)
Masaaki Shintaku (External)

HDR Registrar and HDR Transfer Office

Takashi Nawa (External)
Naotake Ohno (External)

Computershare Hong Kong Investor Services Limited
Shops 1712–1716, 17th Floor

Board of Statutory Auditors

Hopewell Centre
183 Queen’s Road East

Akira Tanaka
Masaaki Shinjo

WanchaiHong Kong

Masumi Mizusawa
Takaharu Yasumoto (External)

Stock Code

Keiko Kaneko (External)
Takao Kashitani (External)

Hong Kong: 6288
Japan: 9983

Company Secretary

Website Address

Shea Yee Man

https://www.fastretailing.com

External Independent Accountants
Deloitte Touche Tohmatsu LLC
Principal Banks
Sumitomo Mitsui Banking Corporation
MUFG Bank, Ltd.
Mizuho Bank, Ltd.
The Hong Kong and Shanghai Banking Corporation Limited
Registered Office and Headquarters
717-1 Sayama, Yamaguchi City
Yamaguchi 754-0894
Japan

- 1 -

2. Financial Highlights
Consolidated Financial Summary
Half-yearly period Half-yearly periodofof
58th Fiscal
59th Fiscal
Year
Year

Term

58th Fiscal
Year

Six months
ended
28 February
2019

Six months
ended
29 February
2020

Year ended
31 August2019

1,267,697

1,208,512

2,290,548

Operating profit (Millions of yen)

172,941

136,736

257,636

Profit before income taxes (Millions of yen)

174,214150,859

252,447

Profit for the period attributable to ownersof the Parent (Millions of yen)

114,029

100,459

162,578

Comprehensive income attributable to ownersof the Parent (Millions of yen)

120,920140,153

140,900

Equity attributable to owners of the Parent (Millions of yen)

961,680

1,020,308

938,621

Total assets (Millions of yen)

2,015,201

2,454,296

2,010,558

Basic earnings per share (Yen)

1,117.54

984.21

1,593.20

Diluted earnings per share (Yen)

1,115.67

982.491,590.55

47.7

41.6

46.7

Net cash generated by operating activities (Millions of yen)

230,899

236,680

300,505

Net cash used in investing activities (Millions of yen)

(59,688)(58,828)(78,756)

Net cash used in financing activities (Millions of yen)

(63,240)(99,195)(102,429)

1,111,067

1,184,303

1,086,519

Three months
ended
28 February
2019

Three months
ended
29 February
2020

Revenue (Millions of yen)623,230

585,028

Profit attributable to owners of the Parent (Millions of yen)

40,552

29,552

Basic earnings per share for the period (Yen)397.40289.51

Accounting period

Revenue (Millions of yen)

Ratio of equity attributable to owners of the Parent to total assets (%)

Cash and cash equivalents at end of the period (Millions of yen)Accounting period(Notes) 1. FAST RETAILING CO., LTD. (the “Company”, “Parent”, or “reporting entity”) prepared interim condensed consolidated
financial statements and therefore has not included the non-consolidated financial summary of the reporting entity.
2. Revenue does not include consumption taxes, etc.
3. The financial figures are sourced from the interim condensed consolidated financial statements or consolidated financial
statements prepared in accordance with International Financial Reporting Standards (“IFRS”).
Business Description
There were no significant changes in the nature of the business engaged in by the Company and its subsidiaries (collectively, the“Group”) during the six months ended 29 February 2020.
In addition, there were no significant changes in the organizational structure of the Group, including the major subsidiaries, during thesix months ended 29 February 2020.

- 2 -3. Management Discussion and Analysis
Business Review
1. Business and Operational Risks
For the six-month period ended 29 February 2020 and as of the date of submission of this quarterly report (14 April 2020), thefollowing item should be added to business risks described in the Securities Report for the fiscal year ended 31 August 2019.
Due to the global spread of COVID-19, the temporary closure of stores may cause a deterioration in performance and adversely
affect the product supply system.
2. Financial Analysis(1) Financial Position and Results of Operations(ⅰ) Results of Operations
The Fast Retailing Group’s revenue and profit declined in the first half of fiscal 2020, or the six months from 1 September 2019
to 29 February 2020. Consolidated revenue totaled 1.2085 trillion yen (−4.7% year-on-year) and operating profit totaled 136.7
billion yen (−20.9% year-on-year). This weaker performance was caused primarily by significant reductions in revenue and profit
at UNIQLO International segment (South Korea, Mainland China, Hong Kong and Taiwan), which were adversely impacted by
COVID-19 and other factors. We recorded 14.1 billion yen under finance income net of costs after reporting a net 12.1 billion yen
foreign-exchange gain on our holdings of foreign-currency denominated assets. As a result, first-half profit before income taxes
declined to 150.8 billion yen (−13.4% year-on-year) and profit attributable to owners of the Parent declined to 100.4 billion yen(−11.9% year-on-year).
The Group’s medium-term vision is to become the world’s number one apparel retailer. In pursuit of this aim, we focus ourefforts on expanding UNIQLO International, as well as our GU brand and our global e-commerce operation. We continue toincrease UNIQLO store numbers in each markets and areas in which we operate, and open global flagship stores and large-format
stores in major cities around the world to instill deeper and more widespread empathy for UNIQLO’s LifeWear concept. Within
the UNIQLO International segment, Greater China (Mainland China, Hong Kong and Taiwan) and Southeast Asia are serving as
the key pillars of our Group's business and growth. In terms of our GU segment, in addition to expanding the GU store network
primarily in Japan, we are working to establish GU’s position as a brand that offers fun fashion at amazingly low prices.
UNIQLO Japan
UNIQLO Japan segment reported a decrease in revenue but a rise in profit in the first half of fiscal 2020, with revenue declining
to 463.5 billion yen (−5.7% year-on-year) and operating profit rising to 71.6 billion yen (+5.7% year-on-year). Same-store sales(including e-commerce sales) declined by 4.6% year-on-year after the warmer winter weather stifled sales of core Winter items.
While e-commerce sales totaled 52.5 billion yen (+8.3% year-on-year) over the first-half period, the rate of online sales growthslowed for the same reasons as for our physical stores. UNIQLO Japan’s gross profit margin improved by 2.2 points to 47.8% on
the back of a continued appreciation in the yen exchange rate for merchandise purchasing. The selling, general and administrative
expense ratio increased 0.5 point to 31.9%, while, in monetary terms, selling, general and administrative expenses decreased
further than planned and compared to the prior fiscal year. Despite a strong launch of our new Spring ranges, revenue began to
decline sharply from the latter half of February brought by the impact of COVID-19 started to adversely affect results.
UNIQLO International
UNIQLO International segment reported a sharp decline in both revenue and profit in the first half of fiscal 2020, with revenue
falling to 541.2 billion yen (−6.7% year-on-year) and operating profit declining to 53.2 billion yen (−39.8% year-on-year). Thiswas caused primarily by considerable reductions in revenue and profit at UNIQLO South Korea and UNIQLO Greater China,
which were both adversely impacted by the outbreak of COVID-19 and other factors. UNIQLO International’s gross profit
margin contracted 2.3 points year-on-year following an early rundown of excess stock in each UNIQLO International market.
The selling, general and administrative expense ratio increased 2.3 points year-on-year on the back of lower-than-planned
revenue.
Looking at individual regions, UNIQLO Greater China revenue dipped, while operating profit declined sharply. Our Mainland
China operation continued to generate strong results through most of January 2020, but revenue then fell sharply in the wake ofthe spread of COVID-19 at the end of January. In February, we temporarily closed a maximum of 395 stores resulting in a sharp
fall in that month’s revenue and an overall decline in both revenue and profit for the first-half as a whole. Revenue has started torecover in Mainland China from March onwards as the majority of stores reopened for business. At UNIQLO South Korea, theadverse impact of ongoing Korea-Japan tensions since July 2019 followed by the impact of COVID-19 from February 2020
resulted in a sharp decline in same-stores sales and recorded of a wider operating loss for the first half of fiscal 2020. UNIQLOSouth, Southeast Asia & Oceania, which includes Southeast Asian nations, Australia and India, generated double-digit growth in- 3 -first-half revenue and profit. UNIQLO operations in Indonesia, the Philippines and Thailand continued to expand favorably byreporting double-digit increases in both revenue and profit. Our new Indian operation generated strong first-half sales following
our entry into the market in October 2019 and the opening of our third store in new Delhi in February 2020. Following the
opening of its first store in December 2019, our Vietnam operation has achieved a higher-than-expected performance thanks tothe popularity of UV-cut mesh parkas, DRY-EX polo shirts, and other clothing that is well suited to the local climate. UNIQLO
USA reported a first-half operating loss as warmer winter weather stifled the sales of Winter ranges. Meanwhile, UNIQLO
Europe reported double-digit increases in both revenue and profit in the first half of fiscal 2020, thanks to especially strong sales
in Italy and Spain and a double-digit increase in same-store sales in Russia.
GU
GU segment reported significant increases in both revenue and profit in the first half of fiscal 2020, with revenue climbing to132.2 billion yen (+12.9% year-on-year) and operating profit expanding to 15.8 billion yen (+12.0% year-on-year). Same-store
sales increased thanks to strong sales of on-target mass fashion trend items such as knitted cardigans and matching knitwear top
and bottom sets along with lightweight outerwear hit products that adapted successfully to the warm winter weather. On the profit
front, GU’s gross profit margin improved by 0.4 point in the first half and operating profit increased significantly thanks to a
decline in the cost of sales generated by further aggregate purchasing of core materials and early submission of production orders.
Global Brands
Global Brands segment revenue and profit both declined in the first half of fiscal 2020. Revenue totaled 70.1 billion yen (−9.8%
year-on-year) and operating profit stood at 0.7 billion yen (−76.3% year-on-year). Our Theory fashion label reported a decline inboth revenue and profit after sales of Winter items struggled during the warmer winter weather. Revenue from our Japan-based
PLST brand came in flat year-on-year as warmer winter weather dampened sales of Winter-season clothing, while operating
profit dipped on a more determined rundown of excess inventories during the period. Finally, our France-based Comptoir desCotonniers brand reported a first-half operating loss of similar magnitude to the preceding fiscal year.
Sustainability
Under our slogan “The power of clothing is the power of society”, we have been promoting sustainability initiatives through theclothing business by focusing on six priority areas (“materialities”). The six materialities are: (1) Creating new value throughproducts and sales, (2) Respecting human rights and the work environment in our supply chain, (3) Respecting the environment,(4) Strengthening communities, (5) Supporting employee fulfillment, and (6) Implementing good corporate governance. Detailsof our main activities during the six months ended February 2020 are as follows.
■ Creating new value through products and sales: In January 2020, we began selling our “Dry-EX” high-performance quickdrying wear that uses recycled polyester derived from PET bottles. By turning recovered PET bottles into valuable resources, wereduce the use of petroleum resources. We will continue to create new value through clothing by actively applying newtechnologies to promote recycling of resources.
■ Respecting the environment: By the end of 2020, we aim to reduce greenhouse gas emissions at UNIQLO stores in Japan by
10% per unit of floor area (compared to 2013 emissions). As of the end of 2019, we already achieved a reduction of about 31.6%.
As our next goal on environmental protection, we are currently formulating SBT (science-based targets), which are targets for
reducing greenhouse gas emissions based on the Paris Agreement. In January 2020, we signed the Fashion Industry Charter for
Climate Action, promoted by the secretariat of the United Nations Framework Convention on Climate Change (UNFCCC), whichprescribes initiatives to be implemented in cooperation with the fashion industry as a whole.
■ Strengthening communities: In November 2019, we contributed a total of US$1 million in cash for initiatives for refugees
conducted by the United Nations High Commissioner for Refugees (UNHCR) in Mali and South Sudan. In February 2020, as partof our “All Product Recycling Initiative” for collecting clothing no longer needed by customers at stores and donating them torefugees and displaced persons, UNIQLO and GU headquarters and store employees together with the UNHCR visited refugee
camps in the Republic of Malawi where they distributed part of the approximately 250,000 items of clothing donated to thatcountry.

- 4 -(ⅱ) Financial Position
Total assets as at 29 February 2020 were 2,454.2 billion yen, which was an increase of 443.7 billion yen relative to the end of thepreceding fiscal year. The principal factors were an increase of 390.2 billion yen in right-of-use assets, an increase of 97.7 billion
yen in cash and cash equivalents and a decrease of 56.6 billion yen in inventories.
Total liabilities as at 29 February 2020 were 1,389.5 billion yen, which was an increase of 362.4 billion yen relative to the end of
the preceding fiscal year. The principal factors were an increase of 444.3 billion yen in lease liabilities, an increase of 110.6
billion yen in other financial liabilities, a decrease of 129.2 billion yen in non-current financial liabilities and a decrease of 30.9
billion yen in trade and other payables.
Furthermore, the increases of right-of-use assets and lease liabilities are due to the application of IFRS 16 Leases as mentioned in“Notes to the Interim Condensed Consolidated Financial Statements 3. Significant Accounting Policies”.
Total net assets as at 29 February 2020 were 1,064.7 billion yen, which was an increase of 81.2 billion yen relative to the end of
the preceding fiscal year. The principal factors were an increase of 45.5 billion yen in retained earnings and an increase of 33.3
billion yen in other components of equity.

(2) Cash Flow Information
Cash and cash equivalents as at 29 February 2020 had increased by 97.7 billion yen from the end of the preceding fiscal year, to1,184.3 billion yen.
(Operating Cash Flows)
Net cash generated by operating activities for the six months ended 29 February 2020 was 236.6 billion yen, which was anincrease of 5.7 billion yen (+2.5% year-on-year) from the six months ended 28 February 2019. The principal factors were 150.8
billion yen in profit before income taxes (a decrease of 23.3 billion yen from the six months ended 28 February 2019), 87.8
billion yen in depreciation and amortization (an increase of 63.7 billion yen from the six months ended 28 February 2019), a
decrease of 64.1 billion yen in inventories (a decrease of 23.1 billion yen from the six months ended 28 February 2019), a
decrease of 1.2 billion yen in other liabilities (a decrease of 20.9 billion yen from the six months ended 28 February 2019), a
decrease of 32.9 billion yen in trade and other payables (an increase of 19.5 billion yen from the six months ended 28 February2019), 12.1 billion yen in foreign exchange gains (a decrease of 13.9 billion yen from the six months ended 28 February 2019),
39.5 billion yen in income taxes paid (a decrease of 8.2 billion yen from the six months ended 28 February 2019), 5.4 billion yen
in impairment losses (an increase of 3.9 billion yen from the six months ended 28 February 2019) and a decrease of 0.2 billion
yen in trade and other receivables (an increase of 3.7 billion yen from the six months ended 28 February 2019).
(Investing Cash Flows)
Net cash used in investing activities for the six months ended 29 February 2020 was 58.8 billion yen, which was a decrease of
0.8 billion yen (-1.4% year-on-year) from the six months ended 28 February 2019. The principal factors were a net increase of
20.2 billion yen in bank deposits with original maturity over three months (a decrease of 4.0 billion yen from the six months
ended 28 February 2019), 23.8 billion yen in payments for property, plant and equipment (an increase of 2.7 billion yen from thesix months ended 28 February 2019), 3.4 billion yen in proceeds from collection of lease and guarantee deposits (an increase of
1.9 billion yen from the six months ended 28 February 2019) and 1.7 billion yen in payments for right-of-use assets (an increaseof 1.7 billion yen from the six months ended 28 February 2019).
(Financing Cash Flows)
Net cash used in financing activities for the six months ended 29 February 2020 was 99.1 billion yen, which was an increase of
35.9 billion yen (+56.9% year-on-year) from the six months ended 28 February 2019. The principal factors were 68.2 billion yen
in repayments of lease liabilities (an increase of 63.8 billion yen from the six months ended 28 February 2019) and 30.0 billion
yen in repayment of redemption of bonds for the six months ended 28 February 2019 (a decrease of 30.0 billion yen from the six
months ended 28 February 2019).
(3) Operational and Financial Challenges
There have been no significant challenges during the six months ended 29 February 2020 that resulted in issues that must be
addressed by the Group.

- 5 -(4) Research and Development
Not applicable.

- 6 -(5) Significant Facilities
The following are the significant facilities that were newly completed during the six months ended 29 February 2020.
<Subsidiaries in Japan>
Not applicable.
<Overseas Subsidiaries>
Company name

Type of facility

UNIQLO EUROPE LIMITEDUNIQLOInternational StoreUNIQLO INDIA PRIVATEUNIQLO

LIMITEDInternational Store

Name of business

Location

UNIQLO Piazza
Cordusio

Milan,
Italy

UNIQLO Ambience
Mall Vasant Kunj
store

Completion date
September 2019

New Delhi,
India

October 2019

The following are the significant facilities that were newly planned during the six months ended 29 February 2020.
<Subsidiaries in Japan>
Amount of planned
investment
Company name

Type offacility

UNIQLO CO., LTD.

UNIQLOJapan srores

Name ofbusiness

Location

Construction Construction Planned sales
Amountfloor area
commencement completion
Total
already
date
date
(m2)
(Millions of disbursed
yen)(Millions ofyen)Reference

UNIQLOPARK

Yokohama,

Yokohama

Kanagawa

548

0

May 2019

April 2020

2,118

Leasehold517

76

May 2019

April 2020

1,541

Leasehold

624

380

April 2020

2,039

Leasehold

2,085

1,201

May 2020

4,415

Leasehold

BaysideGU UNIQLO
G.U. CO., LTD.

GU JapanstoresPARK

Yokohama,

Yokohama

Kanagawa

BaysideUNIQLO CO., LTD.

UNIQLOJapan stores

UNIQLO

Shibuya-ku,

Harajuku

Tokyo

UNIQLO CO., LTD.

UNIQLOJapan stores

UNIQLO

Chuo-ku,

TOKYO

Tokyo

November
2018
October 2019

(Notes) 1. It is expected that the Group will be able to meet its funding needs from equity capital.
2. The above figures do not include consumption taxes, etc.
<Overseas Subsidiaries>
Not applicable.

3. Significant Contracts in Business Operation
None.

- 7 -

4. Information about the Reporting Entity
1. Stock Information(1) Number of Shares(i) Total number of shares
Type

Total number of authorized shares

Common stock

300,000,000

Total

300,000,000(ii) Shares Issued

Type

Number of shares issued
as at 29 February 2020

Number of shares issued
as at submission date
(As at 14 April 2020)

Name of financial
instrument exchangeof listing, or authorized
financial instruments
firms association

Remarks

First section of the Tokyo
Stock Exchange andCommon stock

106,073,656

106,073,656

100 shares

the Main Board of
The Stock Exchange ofas one unit

Hong Kong Limited (Note)
Total

106,073,656

106,073,656--(Note) Hong Kong Depositary Receipts are listed on the Main Board of The Stock Exchange of Hong Kong Limited.
(2) Share Subscription Rights
1. Details of the Stock Option Program
Not applicable.
2. Other Share Subscription Rights
Not applicable.
(3) Exercise of convertible bonds with conditional permission for adjustment of exercise priceNot applicable.
(4) Change in total number of Shares Issued, Capital Stock, Etc.
Date
1 December 2019 to
29 February 2020

Increase/(decrease) of
total number ofshares issued

Balance of total
number ofshares issued-

106,073,656

Increase/
Increase/
Balance ofBalance of(decrease) of(decrease) ofcapital stock
capital reserve
capital stock
capital reserve(Millions of yen)
(Millions of yen)
(Millions of yen)
(Millions of yen)-

10,273-

4,578(Note) There was no change in the total number of shares issued, capital stock or capital reserve during the three months ended 29
February 2020.

- 8 -(5) Major Shareholders
As at 29 February 2020

Name or trade nameLocation

Number ofshares held
(in thousandsof shares)

As a percentage
over total
number ofshares (excluding
treasury stock)

Tadashi Yanai

Shibuya-ku, Tokyo

22,037

21.59

The Master Trust Bank of Japan, Ltd.

2-11-3 Hamamatsu-cho, Minato-ku, Tokyo

20,096

19.69

Japan Trustee Services Bank, Ltd.

1-8-11 Harumi, Chuo-ku, Tokyo

10,854

10.63

TTY Management B.V.

De Entree 99, 1101HE Amsterdam,
The Netherlands

5,310

5.20

Kazumi Yanai

New York, U.S.A.

4,781

4.68

Koji Yanai

Shibuya-ku, Tokyo

4,780

4.68

Fight & Step Co., Ltd.

1-4-3 Mita, Meguro-ku, Tokyo

4,750

4.65

MASTERMIND, LLC

1-4-3 Mita, Meguro-ku, Tokyo

3,610

3.54

Trust & Custody Services Bank, Ltd.

1-8-12 Harumi, Chuo-ku, Tokyo

3,347

3.28

Teruyo Yanai

Shibuya-ku, Tokyo

2,327

2.28

81,896

80.23

Total

-

(Notes) 1. “Number of shares held” is rounded down to the nearest unit of thousand shares.
2. The shares held by The Master Trust Bank of Japan, Ltd., Japan Trustee Services Bank, Ltd. and Trust & Custody Services
Bank, Ltd. are all held in conjunction with trust businesses.
3. According to the report of large shareholdings (Report of Change of Composition) submitted on 21 October 2019 by
Mitsubishi UFJ Financial Group, Inc. and the three parties of Mitsubishi UFJ Trust and Banking Corporation, Mitsubishi
UFJ Kokusai Asset Management Co., Ltd. and Mitsubishi UFJ Morgan Stanley Securities Co., Ltd., which are all joint
shareholders, each party held the shares stated below as at 14 October 2019. However, since the Company has not been able
to confirm the number of shares actually held as at 29 February 2020, these shareholdings have not been included in theabove table of major shareholders.

Name or trade name
Mitsubishi UFJ Trust and Banking
Corporation
Mitsubishi UFJ Kokusai Asset Management
Co., Ltd.
Mitsubishi UFJ Morgan Stanley Securities
Co., Ltd.

Number ofshares held
(in thousands ofshares)Percentage of
total number ofshares issued

1-4-5 Marunouchi, Chiyoda-ku, Tokyo

820

0.77

1-12-1 Yurakucho, Chiyoda-ku, Tokyo

3,018

2.85

2-5-2 Marunouchi, Chiyoda-ku, Tokyo

1,428

1.35

Location- 9 -4. According to the report of large shareholdings (Report of Change of Composition) submitted on 4 December 2019 byNomura Securities Co., Ltd. and the two parties of Nomura International PLC and Nomura Asset Management Co., Ltd.,
which are all joint shareholders, each party held the shares stated below as at 27 November 2019. However, since theCompany has not been able to confirm the number of shares actually held as at 29 February 2020, these shareholdings havenot been included in the above table of major shareholders.
Name or trade name

Nomura Securities Co., Ltd.
Nomura International PLC
Nomura Asset Management Co., Ltd.

Location

1-9-1 Nihonbashi, Chuo-ku, Tokyo
1 Angel Lane, London EC4R 3AB, United
Kingdom
1-12-1 Nihonbashi, Chuo-ku, Tokyo

Number ofshares held
(in thousands ofshares)Percentage of
total number ofshares issued

16

0.02

54

0.05

10,88510.26

5. According to the report of large shareholdings (Report of Change of Composition) submitted on 21 January 2020 by
Sumitomo Mitsui Trust Bank, Limited and the two parties of Sumitomo Mitsui Trust Asset Management Co., Ltd. andNikko Asset Management Co., Ltd., which are all joint shareholders, each party held the shares stated below as at 15
January 2020. However, since the Company has not been able to confirm the number of shares actually held as at 29
February 2020, these shareholdings have not been included in the above table of major shareholders.
Name or trade nameLocation

Number ofshares held
(in thousands ofshares)Percentage of
total number ofshares issued

Sumitomo Mitsui Trust Asset Management
Co., Ltd.

1-1-1 Shibakoen, Minato-ku, Tokyo

1,167

1.10

Nikko Asset Management Co., Ltd.

9-7-1 Akasaka, Minato-ku, Tokyo

5,688

5.36

6. In addition to the above, 3,991,435 shares of treasury stock are held by the Company (3.76% of the total number ofoutstanding shares).

- 10 -

(6) Voting Rights(i) Shares issued
As at 29 February 2020
Class

Number of shares

Number of voting rights

Remarks

Non-voting shares

-

-

-

Shares subject to restrictions on voting rights(e.g., treasury stock)

-

-

-

Shares subject to restrictions on voting rights(e.g., other than treasury stock)

-

-

-

-

-

(Shares held as treasury
Shares with full voting rights(e.g., treasury stock)stock)
Common stock
3,991,400

Shares with full voting rights

Common stock(e.g., other than treasury stock)

1,020,165

102,016,500
Common stock

Shares less than one unit－

65,756

Total number of shares issued

106,073,656

Total number of voting rights of all shareholders-(Note) 1(Notes) 1, 2－

1,020,165-(Notes) 1.The columns for the number of shares of “Shares with full voting rights (e.g., other than treasury stock)” and “Shares lessthan one unit” include 2,700 shares and 84 shares, respectively, held in the name of Japan Securities Depository Center, Inc.
2. Common stock in the “Shares less than one unit” row includes 35 shares of treasury stock held by the Company.
(ii) Treasury StockAs at 29 February 2020
Name or trade name ofholderFAST RETAILING
CO., LTD.

Holder’s address
717-1 Sayama,
Yamaguchi-shi,

Number ofshares held in
own name

Number ofshares held inother’s name

Total number ofshares held

Percentage of
total number ofshares issued (%)

3,991,400－

3,991,400

3.76

3,991,400－

3,991,400

3.76

Yamaguchi

Total

-

2. Directors
Since the submission of the year-end report for the preceding fiscal year, there has been no change of directors during the six
months ended 29 February 2020.

- 11 -

5. Financial Section
1. Preparation of Interim Condensed Consolidated Financial Statements
The interim condensed consolidated financial statements of the Group, namely, the interim condensed consolidated statement offinancial position of the Group as at 29 February 2020, the related interim condensed consolidated statements of profit or loss andinterim condensed consolidated statement of comprehensive income for the three-month and six-month periods then ended, and theinterim condensed consolidated statements of changes in equity and cash flows for the six-month period then ended (collectively,
the “interim condensed consolidated financial statements”) were prepared in compliance with International Accounting Standard
34, Interim Financial Reporting (“IAS 34”), pursuant to Article 93 of the “Rules Governing Term, Form and Preparation ofConsolidated Quarterly Financial Statements” (Cabinet Office Ordinance No. 64 of 2007, hereinafter referred to as “Consolidated
Quarterly Financial Statements Rules”).
2. Review Report
Pursuant to the first clause of Article 193-2 of the Financial Instruments and Exchange Act, the interim condensed consolidated
financial statements have been reviewed by Deloitte Touche Tohmatsu LLC.

- 12 -

(Amounts are stated in millions of yen and are rounded down to the nearest million unless otherwise stated)

1. Interim Condensed Consolidated Financial Statements(1) Interim Condensed Consolidated Statement of Financial Position(Millions of yen)Notes

As at 31 August 2019

As at 29 February 2020

1,086,519
60,398

1,184,303
56,968ASSETS
Current assets
Cash and cash equivalents
Trade and other receivables
Other financial assets
Inventories

15
644,473
410,526

66,424353,907

Derivative financial assets
Income taxes receivable

15

14,787
1,492

21,117
4,087

19,975

15,5691,638,174

1,702,379

162,092－

133,068
390,283

8,092
60,117

8,092
66,05477,026

68,497

14,587

14,34433,16336,311

9,442
7,861

27,9197,344

Other assets
Total current assets
Non-current assets
Property, plant and equipment
Right-of -use assets

7

Goodwill
Intangible assets
Financial assets
Investments in associates accounted
for using the equity method

15

Deferred tax assets
Derivative financial assets

15

Other assets
Total non-current assets

372,384

751,916

2,010,558

2,454,296

191,769
159,006

160,836
269,688

2,985
－

1,037
104,361

Current tax liabilities
Provisions

27,451
13,34039,394895

Other liabilities

82,10359,605

Total current liabilities

476,658

635,820499,948－

370,732
339,951

20,474
8,822

32,482
7,418

Other liabilities

3,838
17,281637
2,473

Total non-current liabilities

550,365

753,694

1,027,024

1,389,515

Total assets
Liabilities and equity
LIABILITIESCurrent liabilities
Trade and other payables
Other financial liabilities

8, 15

Derivative financial liabilities
Lease liabilities

15

Non-current liabilities
Financial liabilities
Lease liabilities

8, 15

Provisions
Deferred tax liabilities
Derivative financial liabilities

15

Total liabilities- 13 -

Notes

As at 31 August 2019

As at 29 February 2020

Capital stock
Capital surplus

10,273
20,603

10,27323,229Retained earnings
Treasury stock, at cost

928,748(15,271)

974,342(15,198)

Other components of equity(5,732)

27,661Equity attributable to owners of the Parent

938,6211,020,308

Non-controlling interests

44,91344,471

983,534

1,064,780

2,010,558

2,454,296

EQUITY

Total equity
Total liabilities and equity- 14 -

(2) Interim Condensed Consolidated Statement of Profit or Loss and Interim Condensed Consolidated Statement of Comprehensive
IncomeInterim Condensed Consolidated Statement of Profit or Loss
Six months ended 29 February 2020
(Millions of yen)
Notes
Revenue

10

Cost of sales
Gross profit

Six months ended
28 February 2019

Six months ended
29 February 2020

1,267,697(660,923)

1,208,512(631,722)

Selling, general and administrative expenses

11

606,773(433,463)

576,790(438,798)

Other income
Other expenses

12
12

2,106
(2,738)

6,002(7,309)264

51

172,941

136,736

5,413(4,140)18,069(3,946)

Income tax expense

174,214(49,283)

150,859(47,414)

Profit for the period

124,930

103,444

Non-controlling interests

114,029
10,901

100,459
2,985

Total

124,930

103,444

Share of profit and loss of associates accounted
for using the equity method
Operating profit
Finance income

13

Finance costs

13

Profit before income taxes

Profit for the period attributable to:
Owners of the Parent

Earnings per share
Basic (yen)14

1,117.54

984.21

Diluted (yen)14

1,115.67

982.49- 15 -

Three months ended 29 February 2020
(Millions of yen)Three months ended
28 February 2019

Three months ended
29 February 2020

Revenue

623,230

585,028

Cost of sales(341,265)(321,161)

Gross profit

281,964

263,867

Selling, general and administrative expenses
Other income(211,948)
1,688(214,699)
1,918

Other expenses
Share of profit and loss of associates accounted
for using the equity method(3,503)(5,842)

74(197)

Operating profit
Finance income

68,2762,883

45,045
5,850

Finance costs(8,031)(2,051)

Notes

Profit before income taxes

63,127

48,844

Income tax expense(18,482)(17,239)

Profit for the period

44,64431,60440,552

29,552

Profit for the period attributable to:
Owners of the Parent
Non-controlling interests

4,092

2,052

Total

44,64431,604397.40396.72289.51288.98

Earnings per share
Basic (yen)Diluted (yen)1414- 16 -

Interim Condensed Consolidated Statement of Comprehensive Income
Six months ended 29 February 2020
(Millions of yen)Six months ended
28 February 2019
Profit for the period
Other comprehensive income, net of income tax

Six months ended
29 February 2020

124,930

103,444

Financial assets measured at fair value throughother comprehensive income

(223)

(231)

Total items that will not be reclassified subsequently to
profit or loss

(223)

(231)

3,493

14,7153,731
1725,55618

Total items that may be reclassified subsequently to
profit or loss

7,243

40,291Other comprehensive income, net of income tax

7,019

40,060131,950

143,505

Owners of the Parent

120,920140,153

Non-controlling interests

11,0293,352

Total comprehensive income for the period

131,950

143,505

Items that will not be reclassified subsequently to
profit or loss

Items that may be reclassified subsequently to
profit or loss
Exchange differences on translating
foreign operations
Cash flow hedges
Share of other comprehensive income of associates

Total comprehensive income for the period
Attributable to:- 17 -

Three months ended 29 February 2020
(Millions of yen)Three months ended
28 February 2019

Three months ended
29 February 2020

44,64431,604

(107)

(249)

(107)

(249)

(3,342)(3,286)(13,076)

5,312

(1)

(0)

Total items that may be reclassified subsequently to
profit or loss

(16,419)

2,024

Other comprehensive (loss) / income, net of income tax(16,526)

1,775

28,11833,380Non-controlling interests

24,8483,269

32,524855

Total comprehensive income for the period

28,11833,380

Profit for the period
Other comprehensive income, net of income tax
Items that will not be reclassified subsequently to
profit or loss
Financial assets measured at fair value throughother comprehensive income
Total items that will not be reclassified subsequently to
profit or loss
Items that may be reclassified subsequently to
profit or loss
Exchange differences on translating
foreign operations
Cash flow hedges
Share of other comprehensive income of associates

Total comprehensive income for the period
Attributable to:
Owners of the Parent- 18 -

(3) Interim Condensed Consolidated Statement of Changes in Equity
For the six months ended 28 February 2019
(Millions of yen)
Other components of equity

Note

As at 1 September 2018

Equityattributable
Nonto owners controllingof theinterests
ParentFinancial assets
Treasury measured at fair Foreign
Share of otherCash flow
stock,
value
currency
comprehensivehedge
at costthrough other translation
income ofreservecomprehensive reserve
associates
incomeTotal

815,146(15,429)37

15,42919,202-

34,669862,936

39,841

902,777-

114,029

-

-

-

-

-

-

114,029

10,901

124,930

-

-

-

-

(223)

3,489

3,608

17

6,891

6,891

127

7,019

-

-

114,029

-

(223)

3,489

3,608

17

6,891

120,920

11,029131,950-

Capitalstock

CapitalsurplusRetainedearnings

10,273

18,275-Total
equityNet changes during the period
Comprehensive income
Profit for the period
Other comprehensive
income / (loss)
Total comprehensive income /(loss)
Transactions with the owners of
the Parent
Acquisition of treasury stock--

Disposal of treasury stock

-

1,109

Dividends
Share-based payments
Incorporation of a new
subsidiary

9

-

(2)

-

-

-

-

-

(2)

-

(2)

118

-

-

-

-

-

1,228

-

1,228

(24,484)

-

-

-

-

-

-

(24,484)(3,531)(28,016)

-

1,081

-

-

-

-

-

-

-

1,081

-

1,081

-

-

-

-

-

-

-

-

-

-

239

239

-

-

-

-

-

-

-

-

-

-

169

169

-

2,191

(24,484)

116

-

-

-

-

-

(22,177)(3,122)(25,299)-

2,191

89,544

116

(223)

3,489

3,608

17

6,891

98,743

7,906

106,650

10,273

20,466904,690(15,312)(186)

18,91922,81017

41,561

961,680

47,7481,009,428

Changes in ownershipinterests in subsidiaries
without losing control
Total transactions with theowners of the Parent
Total net changes during the period
As at 28 February 2019- 19 -

For the six months ended 29 February 2020
(Millions of yen)
Other components of equity

Note

As at 1 September 2019
Effect of change in accounting
policy3

Net changes during the period

FinancialassetsTreasury
Foreign
Share of othermeasured
Cash flow
stock, atcurrency
comprehensive
at fair value
hedge
cost
translation
income ofthrough otherreserve
reserveassociatescomprehensive
incomeTotal

Equityattributable
Nonto owners controllingof theinterest
ParentCapitalstock

CapitalsurplusRetainedearnings

Total
equity10,273

20,603928,748(15,271)(697)(13,929)

8,906

(11)

(5,732)

938,62144,913

983,534--(30,370)

-

-

-

－

-

-

(30,370)(1,429)(31,800)

10,273

20,603

898,377(15,271)(697)(13,929)

8,906

(11)

(5,732)908,250

43,483

951,734--

100,459

-

-

-

-

-

-

100,459

2,985

103,444

-

-

-

-

(231)

13,727

26,17818

39,69339,693366

40,060--100,459-(231)

13,727

26,17818

39,693140,153

3,352

143,505

Comprehensive income
Profit for the period
Other comprehensive
income / (loss)
Total comprehensive income /(loss)
Transactions with the owners of
the Parent
Acquisition of treasury stock

-

-

-

(5)

-

-

-

-

-

(5)

-

(5)

Disposal of treasury stock

-

934

-

78

-

-

-

-

-

1,013

-

1,013

-

-

(24,494)

-

-

-

-

-

-

(24,494)(1,569)(26,064)

-

1,690

-

-

-

-

-

-

1,690

－

1,690

-

-

-

-

-

-

(6,299)-(6,299)(6,299)(794)(7,093)-

2,625(24,494)73--(6,299)-(6,299)(28,095)(2,363)(30,459)

Dividends
Share-based payments
Transfer to non-financial
assetsTotal transactions with theowners of the Parent
Total net changes during the period
As at 29 February 2020

9

-

2,625

75,96473(231)

13,727

19,87818

33,394

112,057

988

113,046

10,27323,229974,342(15,198)

(928)

(202)

28,785

7

27,661

1,020,308

44,471

1,064,780- 20 -

(4) Interim Condensed Consolidated Statement of Cash Flows(Millions of yen)
Note

Six months ended
28 February 2019

Six months ended
29 February 2020

Cash flows from operating activities
Profit before income taxes
Depreciation and amortization

174,214
24,090150,859
87,871

Impairment losses
Interest and dividend income

1,512(5,413)

5,443(5,878)Interest expenses
Foreign exchange losses / (gains)

2,374
1,765

3,946
(12,190)

Share of profit and loss of associates accounted for using theequity method

(264)

(51)

Losses on disposal of property, plant and equipment(Increase) / decrease in trade and other receivables

129(3,538)355
207

Decrease in inventories
Decrease in trade and other payables

87,283(52,515)

64,120(32,925)

Decrease in other assets
Increase / (decrease) in other liabilities

9,016
19,757

10,648(1,227)

610

2,061

Cash generated from operations

259,022273,241

Interest and dividends income received
Interest paid

5,194
(2,070)

5,633(3,483)

Income taxes paid
Income taxes refunded(31,246)-(39,535)
825

Net cash generated by operating activities

230,899

236,680

Amounts deposited into bank deposits with original maturitiesof three months or longer(72,631)(53,772)

Amounts withdrawn from bank deposits with original
maturities of three months or longer

48,31433,503(21,097)(11,926)－(23,833)(10,895)

Others, net

Cash flows from investing activities

Payments for property, plant and equipment
Payments for intangible assets
Payments for acquisition of right-of-use assets
Payments for lease and guarantee deposits
Proceeds from collection of lease and guarantee deposits
Others, net
Net cash used in investing activities- 21 -(2,951)(1,759)(2,952)

1,456
(853)

3,437
(2,556)(59,688)(58,828)

(Millions of yen)
Note

Six months ended
28 February 2019

Six months ended
29 February 2020

Cash flows from financing activities
Proceeds from short-term loans payable
Repayment of short-term loans payable

8,305(7,483)

976(847)

Repayment of long-term loans payable
Repayment of redemption of bonds(2,237)(30,000)(4,343)－(24,484)420(24,494)－(3,531)(4,345)(2,328)－117(68,231)73(63,240)(99,195)

3,399

19,127111,370

97,783

999,697

1,086,519

1,111,067

1,184,303

8

Dividends paid to owners of the Parent
Capital contributions from non-controlling interests

9

Dividends paid to non-controlling interests
Repayments of financial lease obligations
Repayments of lease liabilities
Others, net
Net cash used in financing activities
Effect of exchange rate changes on the balance of cash held in
foreign currencies
Net increase in cash and cash equivalents
Cash and cash equivalents at the beginning of period
Cash and cash equivalents at the end of period- 22 -

Notes to the Interim Condensed Consolidated Financial Statements
1. Reporting Entity
FAST RETAILING CO., LTD. is a company incorporated in Japan. The locations of the registered headquarters and principal
offices of the Company are disclosed on the Group’s website (http://www.fastretailing.com).
The principal activities of the Company and its consolidated subsidiaries are the operations of the UNIQLO business (i.e., casualclothing retail business operating under the “UNIQLO” brand in Japan and overseas), GU business (i.e., casual clothing retailbusiness operating under the “GU” brand in Japan and overseas), Theory business (i.e., apparel design and retail business in Japanand overseas) and other businesses.
2. Basis of Preparation
The interim condensed consolidated financial statements have been prepared in compliance with IAS 34. The Group meets all of thecriteria of a “specified company” defined under Article 1-2 of the Consolidated Quarterly Financial Statements Rules andaccordingly, applies Article 93 of the Consolidated Quarterly Financial Statements Rules. Since the interim condensed consolidated
financial statements do not include all the information and disclosures required for consolidated financial statements, they should beread in conjunction with the Group’s annual consolidated financial statements for the year ended 31 August 2019.
The interim condensed consolidated financial statements were approved on 14 April 2020 by Tadashi Yanai, Chariman, President
and CEO and Takeshi Okazaki, Group Executive Vice President and CFO.

- 23 -

3. Significant Accounting Policies
Except for the following standards that have been newly applied, the accounting policies presented in the consolidated financial
statements for the year ended 31 August 2019 are applied consistently in the preparation of these interim condensed consolidated
financial statements.
The Group adopted the following new and revised standards and interpretations beginning with the preparation of theinterim condensed consolidated financial statements.
IFRS
IFRS 16IFRIC 23

Title

Summary of new standards and amendments

LeasesAmendments to accounting treatment for lease arrangement

Uncertainty over Income Tax

Clarifies the accounting for uncertainties in income tax

Treatments(1) Application of IFRS 16: Leases
The Group began applying IFRS 16 Leases (announced in January 2016; hereinafter “IFRS 16”), from the first quarter of thecurrent fiscal year. In applying IFRS 16, the Group has adopted the cumulative catch-up approach that recognizes the cumulative
effect of initial application of the standard as at the date of initial application (1 September 2019) as a transition method, without
restating comparative information.
1) Definition of lease
The application of IFRS 16 requires that a judgment be made at the inception of a contract as to whether a contract is, or contains,
a lease. If a contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration,
the contract is, or contains, a lease.
To determine whether or not a contract conveys the right to control the use of an identified asset, the Group examines whether thecontract includes the use of the specified asset, whether the Group has the right to obtain substantially all of the economic
benefits from use of identified asset throughout the period of use, and whether the Group has the right to direct the use of theidentified asset.
2) Accounting treatment of leases
2.1) Leases in which Fast Retailing Group is the lessee
Separate from short-term leases or leases for which the underlying asset is of low value, the Group accounts for each lease
component within the contract as a lease and recognizes a right-of-use asset and a lease liability. On the date of commencementof a lease, the right-of-use asset is measured at cost, and the lease liability is calculated as the present value of lease payments
outstanding.
The cost of the right-of-use asset is mainly composed of the initial measurement of the lease liability, initial direct costs and theamount of any prepaid lease payments. Furthermore, the discount rate used to calculate the present value of lease payments is theinterest rate implicit in the lease. If that rate cannot be readily determined, the lessee’s incremental borrowing rate is used.
The lease term is determined as the non-cancelable period which includes an option to extend the lease (if it is reasonably certainthat the Group will exercise that option), or an option to cancel the lease (if it is reasonably certain that the Group will not
exercise that option).
After the commencement date, the right-of-use asset is measured at cost less any accumulated depreciation and any accumulated
impairment losses. When depreciating right-of-use assets, the Group applies the depreciation requirements in IAS 16 Property,
Plant and Equipment. In addition, the Group applies IAS 36, Impairment of Assets, to determine whether the right-of-use asset isimpaired and to account for any impairment loss identified.
Depreciation of right-of-use asset is measured from the commencement date to the end of the useful life of the underlying asset if
ownership of the underlying asset is to be transferred to the Group by the end of the lease term, or if it is reasonably certain thatthe lessee purchase options will be exercised; otherwise the straight-line method will be used to calculate depreciation from thecommencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term.
After the commencement date, the carrying amount of the lease liability is increased to reflect the interest rates on the leaseliability and reduced to reflect any lease payments made. Furthermore, any reassessment or lease modifications, or to reflectrevised in-substance fixed lease payments is remeasured.
The Group uses the straight-line basis to recognize any lease payments associated with short-term leases or leases for which anunderlying asset is of low value.
2.2) Leases in which the Group is the lessor
The Group classifies a lease as either a finance lease or an operating lease at the inception of the lease contract.
- 24 -

To classify each lease, the Group comprehensively assesses whether all the risks and rewards incidental to ownership of theunderlying asset will be substantially transferred or not. If the risks and rewards value are to be transferred, the lease is classified
as a finance lease; if not, it is classified as an operating lease.
If the Group is acting as an intermediate lessor, the Group accounts for head leases and subleases separately. A subleaseclassification is determined by reference to the right-of-use asset arising from the head lease, rather than by reference to theunderlying asset.
The Group recognizes lease payments from operating leases as lease income on a straight-line basis over the lease term.
Lease payments from finance leases are recognized at the commencement date as assets held under finance leases and presented
as receivables at an amount equal to the net investment in the lease.
3) Treatment on transition
In applying IFRS 16, the Group applies the practical expedient in place of the judgments previously used to determine whether or
not a contract is a lease. Consequently, the requirements in IFRS 16 is applied only to contracts entered into or changed on orafter 1 September 2019.
3.1) Leases in which the Group is the lessee(Leases previously classified as operating leases applying IAS 17)
Lease liabilities on transition are measured at the present value of the remaining lease payments discounted using the lessee’s
incremental borrowing rate as at 1 September 2019. In addition, right-of-use assets on transition are measured using one of thefollowing methods.
• Its carrying amount calculated on the assumption that IFRS 16 was applied from the commencement of the lease. Note thatthe discount rate used is the lessee’s incremental borrowing rate on the date of initial application of IFRS 16.
• The amount measured for the lease liability, is adjusted by the amount of any prepaid or accrued lease payments.
Note that the followings apply when IFRS 16 is applied to leases that were previously classified as operating leases IAS 17.
• A single discount rate is applied to a portfolio of leases with reasonably similar characteristics.
• Leases for which the lease term ends within 12 months of the date of initial application of IFRS 16 are accounted for in thesame way as short-term leases.
• Initial direct costs are excluded from the measurement of right-of-use assets at the date of initial application of IFRS 16.
• The Group uses hindsight, such as in determining the lease term if the contract contains options to extend or terminate thelease.
(Leases previously classified as operating leases applying IAS 17)
The Group accounts for the carrying amount of the right-of-use asset and the lease liability at the date of initial application at theamount of the lease asset and lease liability applying IAS 17 immediately prior to the date of initial application of IFRS 16.
3.2) Leases in which the Group is the lessor
Leases in which the Group acts as lessor require no adjustment on transition to IFRS 16, except for subleases. Subleases will be
accounted for in accordance with the transition provisions under IFRS 16 as stated below.
• In applying IFRS 16, the Group classifies sublease transactions as at the date of initial application as either operating leases orfinance leases. This classification is determined based on the remaining contractual terms and conditions of the head lease andsublease at that date.
• Any subleases classified as operating leases applying IAS 17 but finance leases applying IFRS 16 are accounted for as
new finance leases entered into at the date of initial application.

- 25 -

4) Impact on interim condensed consolidated financial statements
With the application of IFRS 16, the Group recognized an additional 368,722 million yen in right-of-use assets, 420,772 million
yen in lease liabilities and a decrease of 30,370 million yen in retained earnings in its interim condensed consolidated statementof financial position at the start of the fiscal year.
The weighted average of the lessee’s incremental borrowing rate applied to lease liabilities recognized in interim condensed
consolidated statement of financial position as at the date of initial application of IFRS 16 is 0.9%.
The major factors for the difference in the commitment amount related to operating leases applying IAS 17 disclosed in interim
condensed consolidated statement of financial position as at 31 August 2019 and the lease liabilities recognized in interim
condensed consolidated statement of financial position as at the date of initial application of IFRS 16 are as follows.
(Unit: Million Yen)
Minimum future lease payments for non-cancelable operating lease contracts (31 August 2019)344,888

Present value of non-cancelable operating lease contracts (31 August 2019)

337,009

Finance lease obligations (31 August 2019)

38,726

Extension or termination options that are reasonably certain to be exercised

45,036

Lease liabilities recognized in interim condensed consolidated statement of financial position as at
the date of initial application of IFRS 16

420,772(2) Application of IFRIC 23: Uncertainty over income tax treatments
IFRIC 23 interpretations are additional to the requirement of IAS 12 Income Taxes and establish accounting procedures for
uncertain tax positions, such as items with no clear tax treatment or items related to matters that are not yet resolved with the tax
authorities. If it is determined that the tax treatment used by the Group is not likely to be approved by the tax authorities, theGroup’s calculation of taxable income will recognize additional taxable income in an amount equivalent to the impact of that
uncertainty, using either the most likely amount or expected value.
The application of IFRIC 23 does not have a significant impact on the Group’s interim condensed consolidated financial
statements.

- 26 -

4. Use of Estimates and Judgments
The preparation of the interim condensed consolidated financial statements requires management to make judgments, estimates andassumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income andexpenses. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. The effects of the review of accounting estimates arerecognized in the accounting period in which the estimates were reviewed and in future accounting periods.
In principle, estimates and judgments that have significant effects on the amounts recognized in the interim condensed consolidated
financial statements are the same as those in the preceding fiscal year except the impact of applying IFRS16.

- 27 -

5. Segment Information(i) Description of reportable segments
The Group’s reportable segments are components for which discrete financial information is available and which are reviewed
regularly by the Board of Directors (the “Board”) to make decisions about the allocation of resources and to assess performance.
The Group’s main retail clothing business is divided into four reportable operating segments: UNIQLO Japan, UNIQLOInternational, GU and Global Brands, each of which is used to frame and form the Group’s strategy.
The main businesses covered by each reportable segment are as follows:
UNIQLO Japan: UNIQLO clothing business within Japan
UNIQLO International: UNIQLO clothing business outside of Japan
GU: GU clothing business in Japan and overseas
Global Brands: Theory, PLST, COMPTOIR DES COTONNIERS, PRINCESSE TAM.TAM and J Brand clothing operations(ii) Segment revenue and results
For the six months ended 28 February 2019
(Millions of yen)

Others(Note 1)

Adjustments(Note 2)

Interim
Condensed
Consolidated
Statement ofProfit or Loss

1,266,290

1,406

-

1,267,697

3,125

173,475

110

(644)

172,941

3,071

172,377

110

1,725

174,214

Reportable segments
UNIQLOJapan

UNIQLOInternational

GlobalBrands

Revenue

491,343

580,006

117,195

77,745

Operating profit

67,741

88,486

14,122

67,88387,385

14,037

GU

Total

Segment income(i.e., Profit
before income taxes)(Note 1) “Others” includes the real estate leasing business, etc.
(Note 2) “Adjustments” mainly includes revenue and corporate expenses which are not allocated to individual reportable segments.
For the six months ended 29 February 2020
(Millions of yen)

Others(Note 1)

Adjustments(Note 2)

Interim
Condensed
Consolidated
Statement ofProfit or Loss

1,207,211

1,301

－

1,208,512

741

141,458278(5,000)136,736517

143,858

279

6,721

150,859

Reportable segments
UNIQLOJapan

UNIQLOInternational

GlobalBrandsGU

Revenue

463,568

541,248

132,293

70,100Operating profit / (loss)

71,62653,267

15,82373,47054,15915,711

Total

Segment income(i.e., Profit before income
taxes)(Note 1) “Others” includes the real estate leasing business, etc.
(Note 2) “Adjustments” mainly includes revenue and corporate expenses which are not allocated to individual reportable segments.

- 28 -

For the three months ended 28 February 2019
(Millions of yen)

Others(Note 1)

Adjustments(Note 2)

Interim
Condensed
Consolidated
Statement ofProfit or Loss

622,497732-

623,230396

71,65465(3,444)

68,276385

70,22365(7,161)

63,127

Reportable segments
UNIQLOJapan

UNIQLOInternational

GlobalBrands

Revenue

245,202

288,623

51,701

36,969Operating profit

29,78335,921

5,553

29,56834,769

5,500

GU

Total

Segment income (i.e.,
Profit before income
taxes)(Note 1) “Others” includes the real estate leasing business, etc.
(Note 2) “Adjustments” mainly includes revenue and corporate expenses which are not allocated to individual reportable segments.
For the three months ended 29 February 2020
(Millions of yen)

Others(Note 1)

Adjustments(Note 2)

Interim
Condensed
Consolidated
Statement ofProfit or Loss

584,368659－

585,028(1,128)50,818311(6,084)45,045(1,252)

53,236

312(4,705)

48,844

Reportable segments
UNIQLOJapan

UNIQLOInternational

GlobalBrands

Revenue

230,536

260,499

59,34433,987

Operating profit

33,06815,431

3,446

34,017

17,138

3,333

GU

Total

Segment income /(losses) (i.e., Profit /(loss) before income
taxes)(Note 1) “Others” includes the real estate leasing business, etc.
(Note 2) “Adjustments” mainly includes revenue and corporate expenses which are not allocated to individual reportable segments.
6. Inventories
Write-down of inventories to their net realizable values recognized in expenses is as follows:(Millions of yen)

Write-down of inventories to net realizable value- 29 -

Six months ended
28 February 2019

Six months ended
29 February 2020

4,624

4,121

7. Property, Plant and Equipment
The breakdown of property, plant and equipment at each reporting date is as follows:(Millions of yen)
As at
31 August 2019

As at
29 February 2020

Buildings and structures

94,659104,845

Furniture, equipment and vehicles

17,07618,114

Land

1,927

1,927

Construction in progress

10,4048,180

Lease assets (Note)

38,024－

162,092

133,068

Total(Note) With the application of IFRS 16 as at the first quarter of the current fiscal year, leased assets have been reclassified and arepresented under “right-of-use assets”.
8. Corporate Bonds
The 1st non-collateralized corporate bonds of 30 billion yen (interest rate: 0.110%; date of maturity: 18 December 2018) was repaid
during the 6 months ended 28 February 2019.

- 30 -

9. Dividends
The total amount of dividends paid was as follows:
For the six months ended 28 February 2019
Total dividends(Millions of yen)

Resolution
Meeting of the Board on 2 November 2018

Dividends per share(Yen)

24,484240

Dividends were declared on 2 November 2018 and paid on 9 November 2018. The effective date of the dividend was forshareholders as at 31 August 2018.
For the six months ended 29 February 2020
Total dividends(Millions of yen)

Resolution
Meeting of the Board on 5 November 2019

Dividends per share(Yen)

24,494240

Dividends were declared on 5 November 2019 and paid on 8 November 2019. The effective date of the dividend was forshareholders as at 31 August 2019.
Dividends on common stock declared subsequent to 29 February 2020 are as follows:

Total dividends (Million yen)
Dividends per share (yen)Six months ended
28 February 2019

Six months ended
29 February 2020

24,492

24,499240

240

The Board has approved the dividends on common stock subsequent to 29 February 2020, and the amount is not recognized as aliability as at 29 February 2020.

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10. Revenue
The Group conducts its global clothing retail operations through both physical stores and e-commerce channels. The
following is a breakdown of total revenue by major regional market operation.
Six months ended 28 February 2019
Revenue(Millions of yen)

Percent of Total
(%)

Japan

491,343

38.8

Greater China

282,484

22.3

Other parts of Asia & Oceania

174,275

13.7

North America & Europe

123,2469.7

1,071,349

84.5

GU (Note 2)

117,195

9.2

Global Brands (Note 3)

77,745

6.1

Others (Note 4)

1,406

0.1

1,267,697

100.0

UNIQLO (Note 1)

Total(Note 1) Revenue is classified by nation or region based on customer location.
The designated countries and regions are classified as follows:
Greater China:
Other parts of Asia & Oceania:

Mainland China, Hong Kong, Taiwan
South Korea, Singapore, Malaysia, Thailand, the Philippines,

North America & Europe:

Indonesia, Australia
United States of America, Canada, United Kingdom, France, Russia,(Note 2) Main national and regional market:

Germany, Belgium, Spain, Sweden, the Netherlands
Japan(Note 3) Main national and regional markets:
North America, Europe, Japan(Note 4) The “Others” category includes real estate leasing operations.
Six months ended 29 February 2020
Revenue(Millions of yen)

Percent of Total
(%)

Japan

463,568

38.4

Greater China

270,334

22.4

Other parts of Asia & Oceania

135,428

11.2

North America & Europe

135,485

11.2

1,004,816

83.1

GU (Note 2)

132,293

10.9

Global Brands (Note 3)

70,100

5.8

Others (Note 4)

1,301

0.1

1,208,512

100.0

UNIQLO (Note 1)

Total(Note 1) Revenue is classified by nation or region based on customer location.
The designated countries and regions are classified as follows:
Greater China:
Mainland China, Hong Kong, Taiwan
Other parts of Asia & Oceania:

South Korea, Singapore, Malaysia, Thailand, the Philippines,
Indonesia, Australia, Vietnam, India

North America & Europe:

United States of America, Canada, United Kingdom, France, Russia,
Germany, Belgium, Spain, Sweden, the Netherlands, Denmark, Italy- 32 -

(Note 2) Main national and regional market:(Note 3) Main national and regional markets:

Japan
North America, Europe, Japan(Note 4) The “Others” category includes real estate leasing operations.

11. Selling, General and Administrative Expenses
The breakdown of selling, general and administrative expenses for each reporting period is as follows:(Millions of yen)Six months ended
28 February 2019

Six months ended
29 February 2020

Advertising and promotion

39,722

39,712

Rental expenses (Note)

104,371

38,742

Depreciation and amortization (Note)

24,09087,871

Outsourcing

22,15925,370

Salaries

146,745

145,931

Others96,373

101,168

433,463438,798

Selling, general and administrative expenses

Total(Note) The decrease of rental expenses and the increase of depreciation and amortization are due to the application of IFRS 16
Leases as mentioned in “Notes to the Interim Condensed Consolidated Financial Statements 3. Significant Accounting Policies”.

- 33 -

12. Other Income and Other Expenses
The breakdown of other income and other expenses for each reporting period is as follows:(Millions of yen)Six months ended
28 February 2019

Six months ended
29 February 2020

Other income
Foreign exchange gains (Note)
Others
Total

-

3,551

2,106

2,450

2,106

6,002
(Millions of yen)Six months ended
28 February 2019

Six months ended
29 February 2020

Foreign exchange losses (Note)

51－

Loss on retirement of property, plant and equipment

129

355

Impairment losses

1,512

5,443

Others

1,046

1,510

2,738

7,309

Other expenses

Total(Note) Currency adjustments incurred in the course of operating transactions are included in “other income” and "other expenses".

13. Finance Income and Finance Costs
The breakdown of finance income and finance costs for each reporting period is as follows:(Millions of yen)Six months ended
28 February 2019

Six months ended
29 February 2020

Finance income
Foreign exchange gains (Note)
Interest income
OthersTotal-

12,190

5,365

5,867

48

11

5,413

18,069(Millions of yen)Six months ended
28 February 2019

Six months ended
29 February 2020

Foreign exchange losses (Note)

1,765

－

Interest expenses

2,374

3,946

4,140

3,946

Finance costs

Total(Note) Currency adjustments incurred in the course of non-operating transactions are included in “finance income" and "financecosts".

- 34 -

14. Earnings per ShareSix months ended 28 February 2019

Six months ended 29 February 2020

Equity per share attributable to ownersof the Parent (Yen)

9,423.53

Equity per share attributable to ownersof the Parent (Yen)

Basic earnings per share (Yen)

1,117.54

Basic earnings per share (Yen)984.21

Diluted earnings per share (Yen)

1,115.67

Diluted earnings per share (Yen)982.499,994.97(Note) The basis for calculation of basic earnings per share and diluted earnings per share is as follows:
Six months ended
28 February 2019

Six months ended
29 February 2020

114,029

100,459－－

114,029

100,459

102,035,840

102,070,655－－

Increase in number of common stock (Shares)

171,262

179,046

Number of share subscription rights included in increase(171,262)(179,046)

Basic earnings per share for the period
Profit for the period attributable to owners of the Parent (Millions of yen)
Profit not attributable to common shareholders (Millions of yen)
Profit attributable to common shareholders (Millions of yen)
Average number of common stock outstanding during the period (Shares)
Diluted earnings per share for the period
Adjustment to profit (Millions of yen)Three months ended 28 February 2019

Three months ended 29 February 2020

Basic earnings per share (Yen)397.40

Basic earnings per share (Yen)

289.51

Diluted earnings per share (Yen)396.72

Diluted earnings per share (Yen)

288.98(Note) The basis for calculation of basic earnings per share and diluted earnings per share is as follows:
Three months ended
28 February 2019

Three months ended
29 February 2020

40,552

29,552－－40,552

29,552102,044,080

102,076,667－－

Increase in number of common stock (Shares)

176,333

186,765

Number of share subscription rights included in increase(176,333)(186,765)

Basic earnings per share for the period
Profit for the period attributable to owners of the Parent (Millions of yen)
Profit not attributable to common shareholders (Millions of yen)
Profit attributable to common shareholders (Millions of yen)
Average number of common stock outstanding during the period (Shares)
Diluted earnings per share for the period
Adjustment to profit (Millions of yen)

- 35 -

15. Fair value of Financial Instruments
Information about the carrying amount and fair value of financial instruments is as follows:(Millions of yen)
As at 31 August 2019
Carrying amounts

As at 29 February 2020

Fair value

Carrying amounts

Fair value

Financial assets:
Security deposits and guarantees

62,39863,98262,78063,948

Total

62,39863,98262,78063,948Long-term borrowings (Note)

4,258

4,258

－

－

469,183

478,638

469,262475,288473,442482,896469,262475,288

Financial liabilities:

Corporate bonds (Note)
Total(Note) The amount above include the outstanding balance of borrowings and corporate bonds due within one year.
The fair values of current financial assets, current financial liabilities and non-current financial assets, which are measured byamortized cost, approximate their carrying amounts.
The fair value of security deposits and guarantees is calculated on the basis of the current value, applying the current market interest
rate.
The fair value of corporate bonds is calculated with reference to publicly available market prices.
The fair value of long-term borrowings is classified by term, and are calculated on the basis of the present-value, applying a
discount rate that takes into account the time remaining to maturity, and credit risk.
The fair value measurements of security deposits and guarantees, corporate bonds and long-term borrowings are classified as Level
2.
The following tables illustrate the fair value measurement hierarchy of the Group’s financial instruments. All assets and liabilities
for which fair value is measured or disclosed in the interim condensed financial statements are categorized within the fair value
hierarchy based on the following characteristics:
Level 1 - based on quoted prices (unadjusted) in active markets for identical assets or liabilities
Level 2 - based on valuation techniques for which the lowest level input that is significant to the fair value measurement isobservable, either directly or indirectly
Level 3 - based on valuation techniques for which the lowest level input that is significant to the fair value measurement isunobservable
When multiple inputs are used to measure fair value, the fair value level is determined based on the input with the lowest levelclassification in the overall fair value assessment.

- 36 -

The following tables illustrate the fair value measurement hierarchy of the Group’s financial instruments:(Millions of yen)
As at 31 August 2019

Level 1

Level 2

Level 3

Total

Financial assets measured at fair value
through other comprehensive income

1,471

－

173

1,645

Financial assets measured at fair value
through profit or loss

－

－

－

－

Financial assets and financial liabilities designatedas hedging instruments — Fair value－

17,406－

17,406

Total

1,471

17,406173

19,051(Millions of yen)

As at 29 February 2020

Level 1

Level 2

Level 3

Total

Financial assets measured at fair value
through other comprehensive income

1,186

－

171

1,358

Financial assets measured at fair value
through profit or loss

－

3,416

－

3,416

Financial assets and financial liabilities designatedas hedging instruments — Fair value－

43,944－43,944

Total

1,186

47,361

171

48,719For the valuation of Level 2 derivative financial instruments for which a market value is available, we use a valuation model thatuses observable data on the measurement date using inputs such as interest rates, yield curves, currency rates and volatility incomparable instruments.
Financial instruments classified as Level 3 consist mainly of unlisted shares. The fair values of unlisted shares are measured by thedivision responsible in the Group according to the Group’s accounting policy, etc., using the immediately preceding figuresavailable for each quarter.
There were no significant changes due to the purchase, sale, issuance and settlement of Level 3 financial instruments, and notransfers between Levels 1, 2 and 3.

16. Commitments for Expenditures
The Group had the following commitments at each reporting date:(Millions of yen)
As at
31 August 2019

As at
29 February 2020

Commitment for the acquisition of property, plant and equipment

7,382

13,552

Commitment for the acquisition of intangible assets

4,340

3,184

11,723

16,736Total
17. Subsequent Events
Impact of temporary stores closure after March 2020 due to the Global Spread of COVID-19
UNIQLO International

In response to the global spread of COVID-19, governments of various countries have asked people to exercise voluntary
restraint in their daily activities and have imposed various restrictions on going outdoors and general behavior since the middle ofMarch. As a result, we made a decision to temporarily close the following stores: all 28 stores in Singapore from 7 April 2020, all
49 stores in Malaysia from 18 March 2020, up to a maximum of all 50 stores in Thailand from 22 March 2020, all 60 stores in thePhilippines from 16 March 2020, all 30 stores in Indonesia from 27 March 2020, all three stores in India from 22 March 2020,
both stores in Vietnam from 28 March 2020, and all 22 stores in Australia from 2 April 2020. As at 14 April 2020, operations
were resumed at some stores in Indonesia.
In addition, we have temporarily closed all 62 UNIQLO stores in the United States and Canada from 17 March 2020.
- 37 -

In Europe as well, in response to requests from the governments of various countries from mid-March 2020, we have temporarilyclosed UNIQLO stores (97 out of 98 stores) in all EU countries except Sweden.
Global Brands
For the Theory business, mainly in the United States, we have temporarily closed all its stores from 17 March 2020. And for the
COMPTOIR DES COTONNIERS business in Europe, we have also temporarily closed all its stores.
UNIQLO Japan and GU
Following the declaration of a state of emergency by the Government of Japan on 7 April 2020, for both UNIQLO Japan and GU
segments, we have temporarily closed stores mainly in large shopping complexes in the relevant areas in Japan, while wecontinue to operate all other stores in other areas with shorter business hours.
For information on the impact of the spread of COVID-19 on the first six months of the current fiscal year, please refer to “3.
Management Discussion and Analysis, 2. Financial Analysis, (1) Financial Position and Results of Operations.”
Although a decrease in revenue is expected due to the impact of temporary store closures accompanying the spread of COVID19, it is difficult at present to reasonably estimate the impact on the Group’s financial position, business performance and cash
flows after the six months ended February 29 as the extent of the impact due to the rapid global expansion of COVID-19 is
unknown.

2. Others
Dividends
The Company resolved to pay dividends from retained earnings at the meeting of the Board convened on 9 April 2020.
The total amount of dividends paid and the amount per share are stated under “Financial Section 1. Interim Condensed
Consolidated Financial Statements, Notes to the Interim Condensed Consolidated Financial Statements 9. Dividends.”- 38 -

(TRANSLATION)
Independent accountant’s review report
14 April 2020
To the Board of Directors of FAST RETAILING CO., LTD.
Deloitte Touche Tohmatsu LLC
Designated Unlimited Liability Partner,
Engagement Partner,
Certified Public Accountant
Koichi Okubo
Designated Unlimited Liability Partner,
Engagement Partner,
Certified Public Accountant
Hirofumi Otani
Designated Unlimited Liability Partner,
Engagement Partner,
Certified Public Accountant
Yohei Masuda
Pursuant to the first paragraph of Article 193-2 of the Financial Instruments and Exchange Act, we have reviewed the interim
condensed consolidated financial statements included in the Financial Section, namely, the interim condensed consolidated statementof financial position of FAST RETAILING CO., LTD. (the “Company”) and its consolidated subsidiaries (collectively, the “Group”)
as of 29 February 2020 and the related interim condensed consolidated statements of profit or loss and statement of comprehensive
income for the three-month and six-month periods then ended, statement of changes in equity and cash flows for the six-month period
then ended, and the related notes.
Management’s Responsibility for the Interim Condensed Consolidated Financial Statements
Management is responsible for the preparation and fair presentation of these interim condensed consolidated financial statements inconformity with International Accounting Standard 34 “Interim Financial Reporting” (“IAS 34”), pursuant to Article 93 of the “Rules
Governing Term, Form and Preparation of Consolidated Quarterly Financial Statements”, and for such internal control as management
determines is necessary to enable the preparation of interim condensed consolidated financial statements that are free from material
misstatement, whether due to fraud or error.
Accountant’s Responsibility
Our responsibility is to express a conclusion on these interim condensed consolidated financial statements based on our review. We
conducted our review in accordance with quarterly review standards generally accepted in Japan. A review consists principally of
making inquiries, primarily of management and persons responsible for financial and accounting matters, and applying analyticalprocedures and other quarterly review procedures. A review is substantially less in scope than an audit conducted in accordance withauditing standards generally accepted in Japan. We believe that we have obtained the evidence to provide a basis for our conclusion.
Accountant’s Conclusion
Based on our review, nothing has come to our attention that causes us to believe that the interim condensed consolidated financial
statements referred to above do not present fairly, in all material respects, the condensed consolidated financial position of theCompany and its consolidated subsidiaries as of 29 February 2020, and the condensed consolidated results of their operations for thethree-month and six-month periods then ended, and their cash flows for the six-month period then ended in conformity with IAS 34.
Interest
Our firm and the engagement partners do not have any interest in the Company for which disclosure is required under the provisionsof the Certified Public Accountants Act.
The above represents a translation, for convenience only, of the original report issued in the Japanese language.

- 39 -