FAST RETAILING CO., LTD.
迅銷有限公司Interim Report 2015/16
2015.9.1–2016.2.29
Stock Code: 6288

Contents
Corporate Profile

2

Financial Highlights

3Management Discussion and Analysis

5

Information about the Reporting Entity

8

Financial Section

11

Interim Condensed Consolidated Statement of
Financial Position

12

Interim Condensed Consolidated Statement ofProfit or Loss and Interim Condensed Consolidated
Statement of Comprehensive Income

13Interim Condensed Consolidated Statement of
Changes in Equity

17

Interim Condensed Consolidated Statement of Cash Flows

19

Notes to the Interim Condensed Consolidated
Financial Statements

21

Others29

Report on Review of Interim Condensed Consolidated
Financial Statements

30

Corporate Profile
Board of Directors
Executive Director

Principal Place of Business in Japan
Midtown Tower 9-7-1
Akasaka Minato-ku
Tokyo 107-6231
Japan

Mr. Tadashi Yanai (Chairman of the Board, President andChief Executive Officer)

Non-Executive Directors
Principal Place of Business in Hong Kong

Mr. Toru Murayama (External Director)
Mr. Takashi Nawa (External Director)

702-706, 7th Floor, Miramar Tower,
No. 132 Nathan Road
Tsim Sha Tsui
KowloonHong Kong

Independent Non-Executive Directors
Mr. Toru Hambayashi (External Director)
Mr. Nobumichi Hattori (External Director)
Mr. Masaaki Shintaku (External Director)

HDR Registrar and HDR Transfer Office
Statutory Auditors

Computershare Hong Kong Investor Services Limited
Shops 1712–1716, 17th Floor
Hopewell Centre
183 Queen’s Road East
WanchaiHong Kong

Mr. Akira Tanaka (Kansayaku) (Standing Statutory Auditor)
Mr. Masaaki Shinjo (Kansayaku) (Standing Statutory Auditor)
Mr. Takaharu Yasumoto (Shagai Kansayaku)(External Statutory Auditor)
Mr. Akira Watanabe (Shagai Kansayaku)(External Statutory Auditor)
Ms. Keiko Kaneko (Shagai Kansayaku)(External Statutory Auditor)

Stock CodeHong Kong: 6288
Japan: 9983

Joint Company Secretaries
Website Address

Japan: Mr. Mitsuru Ohki
Hong Kong: Ms. Choy Yee Man

http://www.fastretailing.com

Auditors
Ernst & Young ShinNihon LLC

Principal Banks
Sumitomo Mitsui Banking Corporation
The Bank of Tokyo-Mitsubishi UFJ, 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

—2—

Financial Highlights
Financial Summary

Term

Second Quarterof
54th Year

Second Quarterof
55th Year54th Year

Accounting period

Six months
ended
28 February
2015

Six months
ended
29 February
2016

Year ended
31 August2015

Revenue (Millions of yen)

949,684

1,011,653

1,681,781

Operating profit (Millions of yen)

150,077

99,341

164,463

Profit before income taxes (Millions of yen)

163,666

82,041

180,676

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

104,753

47,043110,027

176,091(48,770)

163,871

Comprehensive income/(loss) attributable to ownersof the parent (Millions of yen)
Equity attributable to owners of the parent (Millions of yen)
Total assets (Millions of yen)

780,826

685,871

750,937

1,276,295

1,311,064

1,163,706

Basic earnings per share for the period (year) (Yen)

1,027.75

461.43

1,079.42

Diluted earnings per share for the period (year) (Yen)

1,026.51

460.801,078.08

61.2

52.3

64.5

Ratio of equity attributable to owners of
the parent to total assets (%)
Net cash from operating activities (Millions of yen)

224,060

143,851

134,931

Net cash used in investing activities (Millions of yen)

(74,018)(202,107)(73,145)

Net cash used in financing activities (Millions of yen)

(22,397)

221,785(41,784)

Cash and cash equivalents at end of the period (year)(Millions of yen)

462,884

504,002355,212Three months
ended
28 February
2015

Three months
ended
29 February
2016

Revenue (Millions of yen)

470,140

491,350

Profit/(loss) attributable to owners of the parent (Millions of yen)

35,926(981)

Basic earnings/(loss) per share for the period (Yen)352.47(9.63)

Accounting period(Notes)1. The Company has prepared interim condensed consolidated financial statements, and therefore has not included
information regarding changes in key management indices for the submitting company.
2. Revenue does not include consumption taxes, etc.
3. The financial figures are quoted from interim condensed consolidated financial statements or consolidated
financial statements prepared in accordance with International Financial Reporting Standards (“IFRS”).

—3—

Business Description
There were no significant changes in the nature of business engaged in by the Group (the Company and its subsidiaries) during
the six months ended 29 February 2016.
Important changes concerning subsidiaries are as follows:(Others)
Newly consolidated subsidiary:
Wearex Co., Ltd.

—4—

Management Discussion and Analysis
Business Review
1. Business and Operational Risks
No new business-related risks have arisen during the three months ended 29 February 2016.
There have been no important changes concerning business-related risks as stated in the annual report for the preceding
consolidated fiscal year.

2.

Significant Contract in Business Operation
None.

3.

Financial Analysis(1)

Results of Operations
The Fast Retailing Group reported a rise in revenue but a fall in profit in the first half of fiscal 2016, or the six months
from 1 September 2015 to 29 February 2016. Consolidated revenue reached ¥1.0116 trillion (+6.5% year-on-year), while
consolidated operating profit totaled ¥99.3 billion (-33.8% year-on-year), consolidated profit before income taxes stoodat ¥82.0 billion (-49.9% year-on-year), and profit attributable to owners of the parent totaled ¥47.0 billion (-55.1% yearon-year). Breaking these first-half results down into the three business segments, Global Brands reported rises in bothrevenue and profit, while UNIQLO Japan reported declines in both revenue and profit, and UNIQLO International reported
a rise in revenue but a decline in profit. The appreciation in the yen over the six months ended 29 February 2016 resulted
in a ¥22.8 billion foreign exchange loss being recorded for the first half of fiscal 2016 under other income and expenses
and finance income and costs. That amounts to a ¥42.4 billion decline, compared to a ¥19.6 billion income in the first halfof fiscal 2015. As a result, consolidated profit before income taxes declined ¥81.6 billion year-on-year in the first-half.
The Group’s medium-term vision is to become the world’s number one apparel manufacturer and retailer. To this aim, we
have focused our efforts on expanding UNIQLO’s global operations by boosting store numbers in each country where we
operate, and opening global flagship stores and large-format stores in major cities around the world. On the product side,
we have sought to boost awareness and visibility of the UNIQLO brand by offering exciting joint collections with wellknown designers and artistic directors from other brands around the world, such as Ines de la Fressange and Lemaire. We
are currently in the process of aggressively transforming our distribution systems. In April 2016, we will launch our nextgeneration distribution center in Ariake, Tokyo, and we are pressing ahead with plans to open new distribution centerselsewhere in Japan and internationally. In addition, we are actively promoting our GU brand by accelerating the openingof new stores in Japan and launching the label in the Chinese market. We believe the GU operation has reached a key
turning point in its growth and development as a second pillar brand for the Group.
UNIQLO Japan
UNIQLO Japan fell short of expectations in the first half of fiscal 2016, reporting revenue of ¥453.6 billion (-0.2% yearon-year) and operating profit of ¥64.1 billion (-28.3% year-on-year). With hindsight, we didn’t conduct enough marketingto effectively convey the fresh appeal and exciting new elements in our products to customers. In addition, while winterclothing constituted a large portion of our product lineup, we didn’t have an adequate strategy in place to deal with warm
winter weather. These two factors adversely affected demand during the traditionally buoyant months of November
and December, and, as a result, same-store sales declined 1.9% year-on-year in the first half of fiscal 2016. Meanwhile,
e-commerce sales expanded 28.4% year-on-year to ¥25.3 billion, accounting for 5.6% of total revenue. On the profit side,
heavy discounting in January and February contributed to the 3.5 point contraction in the first-half gross profit margin.
Operating profit came in considerably below forecast, declining 28.3% year-on-year on the back of higher selling, generaland administrative expenses such as distribution and personnel expenses. The total number of directly-run UNIQLO Japan
stores declined by 9 to 805 stores at the end of February 2016, while the number of franchise outlets rose by 11 to 39
stores after 10 stores were converted from directly-run stores to new employee-franchise outlets.
UNIQLO International
UNIQLO International reported a rise in revenue that was largely in line with forecasts, but the operation fell shortof target on the profit side by reporting a sharp decline in operating profit. In the first half of fiscal 2016, UNIQLOInternational generated revenue of ¥389.2 billion (+12.7% year-on-year) and operating profit of ¥29.4 billion (-31.4%
year-on-year). Profit declined at UNIQLO Greater China (encompassing operations in mainland China, Hong Kong andTaiwan) and UNIQLO South Korea, and operating losses at UNIQLO USA expanded. All these operations were adversely
affected by warm winter weather but sales were hit especially hard in Hong Kong, Taiwan and South Korea due to sluggish
economic conditions. Meanwhile, UNIQLO Southeast Asia and Oceania (Singapore, Malaysia, Thailand, the Philippines,
Indonesia and Australia) and UNIQLO Europe (U.K., France, Russia, Germany and Belgium) reported gains in both revenue
and profit that were broadly in line with forecasts. UNIQLO International recorded ¥1.6 billion a foreign exchange loss,
and a ¥1.3 billion loss from asset retirement and other costs relating to the closure of four stores in the United States.
As a result, operating profit for the segment declined 31.4% year-on-year in the first half. The total number of UNIQLOInternational stores had expanded by 174 year-on-year to 890 stores as of 29 February 2016. A strong reception for the
first UNIQLO store in Belgium in October 2015 contributed to the brand’s growing success in Europe. The March 2016
opening of the newly refurbished 311 Oxford Street global flagship store has also attracted a great deal of attention, withthe store poised to serve as a beacon for new London culture.
—5—

Global Brands
Global Brands reported gains in both revenue and profit in the first half as expected, with revenue rising 12.9% yearon-year to ¥167.3 billion and operating profit expanding 21.9% year-on-year to ¥14.3 billion. Within the Global Brands
segment, our low-priced GU fashion casualwear label reported significant rises in both revenue and profit that exceeded
expectations. GU reported double-digit growth in same-store sales on the back of strong sales of heavily advertised
knitwear, and trendy bottoms such as wide pants and jogging pants. A successful launch of Spring 2016 ranges in the
traditionally less buoyant months of January and February also helped improve GU’s gross margin, and significantly boost
operating profit. Theory and Comptoir des Cotonniers fell short of target by reporting a decline in profits in the first half.
The J Brand premium denim label also fell short of target by reporting an expanded operating loss, while the flat year-onyear performance from Princesse tam.tam was broadly in line with plan.
Corporate Social Responsibility (“CSR”) and Environmental Protection
The basic policy underlying the Group’s CSR activities consists of fulfilling our social responsibility, contributing tocommunities and addressing social issues and creating new value, both globally and locally.
The 2016 CSR Report summarizes the Group’s CSR activities in the fiscal year ending 31 August 2015, and was publishedin January. Activity reports and improvement initiatives are featured in relation to four priority themes: Production,
Environment, Community and Human Resources. We also proactively disclose information in our stores and on our
website in communicating with our diverse stakeholders.
We have been conducting the 10 Million Ways to HELP Project since October 2015, as part of the All-Products Recycling
Initiative, which collects customers’ used clothing at Uniqlo and GU stores, and provides them to people in need ofclothing. This project has collected a total of 8.60 million articles of clothing (as of 3 April 2016) across stores in 16
countries and regions, from both customers and employees. We will continue the initiative, with the goal of collecting 10
million articles of clothing.
Furthermore, in December, 2015, Link Theory Japan held its Closet for Needs initiative, which provides women who havebeen victims of domestic violence with the clothing to help them regain their confidence and independence.
(2)

Financial Positions
Total assets as at 29 February 2016 were ¥1,311.0 billion, which was an increase of ¥147.3 billion relative to the endof the preceding consolidated fiscal year. The principal factors were an increase of ¥148.7 billion in cash and cash
equivalents, an increase of ¥176.1 billion in other current financial assets, a decrease of ¥38.2 billion in inventories, and adecrease of ¥119.2 billion in derivative financial assets.
Total liabilities as at 29 February 2016 were ¥601.4 billion, which was an increase of ¥212.5 billion relative to the end of
the preceding consolidated fiscal year. The principal factors were an increase of ¥247.0 billion in non-current financial
liabilities and a decrease of ¥42.7 billion in deferred tax liabilities.
Total net assets as at 29 February 2016 were ¥709.6 billion, which was a decrease of ¥65.1 billion relative to the end of
the preceding consolidated fiscal year. The principal factor was an increase of ¥29.2 billion in retained earnings and adecrease of ¥95.8 billion in other components of equity.

(3)

Cash Flows Information
Cash and cash equivalents as at 29 February 2016 had increased by ¥41.1 billion from the six months ended 28 February
2015, to ¥504.0 billion.
Net cash from operating activities for the six months ended 29 February 2016 was ¥143.8 billion, which was a decrease of¥80.2 billion (-35.8 % year-on-year) from the six months ended 28 February 2015. The principal factors were ¥82.0 billion
in profit before income taxes (a decrease of ¥81.6 billion from the six months ended 28 February 2015), ¥17.3 billion
increase in Foreign exchange losses (an increase of ¥30.0 billion from the six months ended 28 February 2015) and ¥22.7
billion Increase in trade and other payables (a decrease of ¥29.3 billion from the six months ended 28 February 2015).
Net cash used in investing activities for the six months ended 29 February 2016 was ¥202.1 billion, which was a increaseof ¥128.0 billion (+173.1 % year-on-year) from the six months ended 28 February 2015. The principal factors were ¥180.3
billion for increase in bank deposits with maturity over 3 months (an increase of ¥134.5 billion from the six months ended
28 February 2015) and ¥17.0 billion for purchases of property, plant and equipment (a decrease of ¥4.6 billion from thesix months ended 28 February 2015).
Net cash used in financing activities for the six months ended 29 February 2016 was ¥221.7 billion, which was an increaseof ¥244.1 billion from the six months ended 28 February 2015. The principal factor was ¥249.3 billion for proceeds fromissuance of bonds (an increase of ¥249.3 billion from the six months ended 28 February 2015).

—6—

(4)

Operational and Financial Assignment
There have been no important changes during the six months ended 29 February 2016 concerning issues that must be
addressed by the Group.

(5)

Research and Development
Not applicable.

(6)

Important Facilities
The following are the important facilities that were newly completed during the six months ended 29 February 2016.

<Subsidiaries in Japan>
Not applicable.
<Overseas Subsidiaries>
Company name

Type of facility

Name of business

Location

Completion date

UNIQLO Illinois LLCUNIQLOInternational Stores

Chicago N.
Michigan Ave

Chicago City Illinois,
U.S.A.

October 2015

UNIQLO EUROPE LIMITEDUNIQLOInternational Stores

Meir 67/69,
Antwerp

Antwerp City,
Belgium.

October 2015

The following are the important facilities that were newly planned during the three months ended 29 February 2016.
<Subsidiaries in Japan>
Not applicable.
<Overseas Subsidiaries>
Amount of planned investment
Company name

Type of facility

UNIQLOUNIQLO EUROPE LIMITEDInternational
Store(Notes)Name ofbusiness

Location

Total(Millions of yen)

311 Oxford Street,

London,LondonUnited Kingdom

2,424

Amount already Construction Construction Planned sales
disbursed

start

completion floor area (m2)(Millions of yen)
2,371

March 2015

March 2016

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 tax, etc.

—7—

Reference

2,240

lease

Information about the Reporting Entity
1. Stock Information(1) Number of Shares(i)

Total number of shares
Type

Total number of authorised shares (shares)

Common stock

300,000,000
Total

300,000,000(Note) There are no provisions for preemptive rights under the Companies Act of Japan, which would oblige the Company tooffer new shares on a pro rata basis to existing shareholders.
(ii)

Shares Issued

Type

As at 29 February 2016

Number of shares issued
as of submission date
(Shares)(As at 14 April 2016)

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

Details

First section of the Tokyo
Stock Exchange andthe Main board of
The Stock Exchange ofHong Kong Limited (Note)

100 sharesas one unit

Common stock

106,073,656

106,073,656

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
Not applicable.

(3)

Exercise of convertible bonds with conditional permission for adjustment of exercise priceNot applicable.

(4)

Content of Rights Plan
Not applicable.

(5)

Change in Total Number of Shares Issued, Capital Stock, Etc.

Date

1 December 2015 to
29 February 2016

Increase/
Balance of total
Increase/
Increase/decrease of
Balance ofBalance of
number of
decrease of
decrease of
total number ofcapital stock
capital reserve
shares issued
capital stock
capital reserve
shares issued(Millions of yen)
(Millions of yen)
(Shares)(Millions of yen)
(Millions of yen)
(Shares)—

106,073,656—

10,273—

4,578(Note) There was no increase or decrease in the total number of shares issued, capital stock or capital reserve during the six
months ended 29 February 2016.

—8—

(6)

Principal Shareholders
As at 29 February 2016
Name or trade nameLocation

Number ofPercentage ofshares held
total number of(Thousand shares) shares issued (%)

Tadashi Yanai

Shibuya-ku, Tokyo

22,987

21.67

The Master Trust Bank of Japan, Ltd.

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

13,300

12.54

Japan Trustee Services Bank, Ltd.

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

10,0899.51

TTY Management B.V.

Hoogoorddreef 15, 1101BA Amsterdam,
The Netherlands

5,310

5.01

Kazumi Yanai

New York, U.S.A.

4,781

4.51

Koji Yanai

Shibuya-ku, Tokyo

4,780

4.51

Fight & Step Co., Ltd.

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

4,750

4.48

Trust & Custody Services Bank, Ltd.

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

4,175

3.94

MASTERMIND, LLC

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

3,610

3.40

BNP Paribas Securities (Japan) Limited

1-9-1 Marunouchi, Chiyoda-ku, Tokyo

2,577

2.43

76,362

71.99

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 business.
3. According to the report of large shareholdings (report of change of composition) submitted on 21 October 2015 byNomura Securities Co., Ltd. and the two parties of NOMURA INTERNATIONAL PLC and Nomura Asset Management
Co., Ltd. as joint holders, each party was holding the shares stated below as at 15 October 2015. However, since
the Company has not been able to confirm the number of shares actually held as of the end of the term, theseshareholdings have not been included in the above statement of principal shareholders.

Name or trade nameLocation

Number ofPercentage ofshares held
total number of(Thousand shares) shares issued (%)

Nomura Securities Co., Ltd.

1-9-1 Nihonbashi, Chuo-ku, Tokyo

28

0.03

NOMURA INTERNATIONAL PLC

1 Angel Lane, London EC4R 3AB,
United Kingdom

242

0.23

Nomura Asset Management Co., Ltd.

1-12-1 Nihonbashi, Chuo-ku, Tokyo

7,750

7.31

4. In addition to the above, 4,117,463 shares of treasury stock are held by the Company (3.88% of the total numberof authorized shares).

—9—

(7)

Voting Rights(i)

Shares issued
As at 29 February 2016
Number of shares(Shares)Number of voting rights(Number)

Remarks

Non-voting shares

—

—

—

Shares subject to restrictions on voting rights(treasury stock)

—

—

—

Shares subject to restrictions on voting rights(others)———

Shares with full voting rights(treasury stock, etc.)(Shares held astreasury stock)
Common stock
4,117,400——

Shares with full voting rights (others)

Common stock
101,904,100

Class

Common stock

Shares less than one unit

52,156

Total number of shares issued

106,073,656

Total number of voting rights of allshareholders—(Notes)1,019,041(Note) 1—(Notes) 1,2——
1,019,041—

1. The columns for the number of shares of “Shares with full voting rights (others)” and “Shares less than one unit”
respectively include 2,700 shares and 84 shares held in the name of Japan Securities Depository Center, Inc.
2. Common stock in the “Shares less than one unit” row includes 63 shares of treasury stock held by the Company.

(ii)

Treasury StockAs at 29 February 2016

Name or trade name ofholderFAST RETAILING CO.,
LTD.
Total

2.

Holder’s address

717-1 Sayama,
Yamaguchi City,
Yamaguchi—

Number ofshares held in
own name(Shares)Number ofshares held inother’s name(Shares)

Total numberof shares held
(Shares)

Percentage of
total numberof shares issued(%)

4,117,400—

4,117,400

3.88

4,117,400—

4,117,400

3.88

Board of Directors
Since the submission of the year-end report for the preceding consolidated fiscal year, there has been no change ofdirectors during the six months ended 29 February 2016.

— 10 —

Financial Section
1. Preparation of Interim Condensed Consolidated Financial Statements
The interim condensed consolidated financial statements of the Group were prepared in compliance with International
Accounting Standard 34 “Interim Financial Reporting” (“IAS 34”), pursuant to Article 93 of the “Rules Governing Term, Form andPreparation of Consolidated Quarterly Financial Statements” (2007 Cabinet Office Ordinance No. 64, hereinafter referred to as“Consolidated Quarterly Financial Statements Rules”).
2. Review Certification
Pursuant to the first clause of Article 193-2 of the Financial Instruments and Exchange Act, the quarterly and interim condensed
consolidated financial statements of the Group for the three months and six months ended 29 February 2016, respectively, arereviewed by Ernst & Young ShinNihon LLC.

— 11 —

(Amounts in millions of Japanese 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
ASSETS
Current assets
Cash and cash equivalents
Trade and other receivables
Other current financial assets
Inventories
Derivative financial assets
Income taxes receivable

As at 31 August 2015

As at 29 February 2016

355,21244,77722,593260,006
157,490
18,564
15,748504,002
48,909198,715
221,800
38,258567
15,529874,394

1,027,783

Others129,340
27,16540,99175,940
11,107
4,766

125,996
26,46339,70275,436
11,035
4,646

Total non-current assets

289,311283,280

1,163,706

1,311,064

181,577100
15,471
36,763
22,61535,714200,106
5,478
10,79929,366
16,50538,049292,242

300,306

25,513
10,20347,272
13,668272,556
10,3694,559
13,62513
6
13

OthersTotal current assets
Non-current assets
Property, plant and equipment
Goodwill
Other intangible assets
Non-current financial assets
Deferred tax assets

7

13

Total assets
Liabilities and equity
LIABILITIESCurrent liabilities
Trade and other payables
Derivative financial liabilities
Other current financial liabilities
Income taxes payable
Provisions

13
13

OthersTotal current liabilities
Non-current liabilities
Non-current financial liabilities
Provisions
Deferred tax liabilities

13

Others96,658301,110

388,901

601,417

10,273
11,524
602,623(15,699)
142,214

10,273
13,032631,826(15,662)
46,400Non-controlling interests

750,937
23,867

685,871
23,775

Total equity

774,804

709,647

1,163,706

1,311,064

Total non-current liabilities
Total liabilities
EQUITY
Capital stock
Capital surplus
Retained earnings
Treasury stock, at cost
Other components of equity
Equity attributable to owners of the parent

Total liabilities and equity— 12 —

(2) Interim Condensed Consolidated Statement of Profit or Loss and Interim Condensed Consolidated Statement ofComprehensive Income
Interim Condensed Consolidated Statement of Profit or Loss
Six months ended 29 February 2016
(Millions of yen)Six months ended
28 February 2015

Notes
RevenueSix months ended
29 February 2016

949,684(470,166)

1,011,653(534,717)

479,517(336,333)
8,075(1,181)

476,935(370,729)
921(7,786)150,077
14,123(534)

99,341
973(18,273)

Income taxes

163,666(52,694)

82,041(30,606)

Profit for the period

110,971

51,434Non-controlling interests

104,753
6,218

47,043
4,391

Profit for the period

110,971

51,434

1,027.75
1,026.51

461.43460.80

Cost of sales
Gross profit
Selling, general and administrative expenses
Other income

910

Other expenses

10

Operating profit
Finance income

11

Finance costs

11

Profit before income taxes

Attributable to:
Owners of the parent

Earnings/(loss) per share
Basic (Yen)
Diluted (Yen)1212— 13 —

Three months ended 29 February 2016
(Millions of yen)
Notes

Three months ended
28 February 2015

RevenueThree months ended
29 February 2016

470,140(243,900)

491,350(280,684)

226,239(168,323)
1,343
(552)

210,665(180,048)
125(7,322)58,707379(2,165)23,420555(19,601)

Income taxes

56,920(18,745)

4,374(4,071)

Profit for the period

38,174302

Non-controlling interests

35,926
2,248

(981)
1,284

Profit for the period

38,174302

352.47351.98(9.63)(9.63)

Cost of sales
Gross profit
Selling, general and administrative expenses
Other income
Other expenses
Operating profit
Finance income
Finance costs
Profit before income taxes

Attributable to:
Owners of the parent

Earnings per share
Basic (Yen)
Diluted (Yen)1212— 14 —

Interim Condensed Consolidated Statement of Comprehensive Income
Six months ended 29 February 2016
(Millions of yen)Six months ended
28 February 2015
Profit for the period
Other comprehensive income
Other comprehensive income that will not bereclassified to profit or loss
Other comprehensive income to be reclassified to
profit or loss in subsequent periods
Net (loss) on revaluation of available-for-saleinvestments
Exchange differences on translation offoreign operations

Six months ended
29 February 2016

110,971

51,434

―

―

(689)

(39)

17,28856,062(18,341)(80,303)

Other comprehensive income/(loss), net of taxes

72,661(98,684)

Total comprehensive income/(loss) for the period

183,633(47,250)

Non-controlling interests

176,091
7,541(48,770)
1,520

Total comprehensive income/(loss) for the period

183,633(47,250)

Cash flow hedges

Attributable to:
Owners of the parent— 15 —

Three months ended 29 February 2016
(Millions of yen)Three months ended
28 February 2015
Profit for the period
Other comprehensive income
Other comprehensive income that will not bereclassified to profit or loss
Other comprehensive income to be reclassified to
profit or loss in subsequent periods
Net gain/(loss) on revaluation of available-for-saleinvestments
Exchange differences on translation offoreign operations

Three months ended
29 February 2016

38,174

302

―

―

18

(51)

(1,266)(16,574)(21,773)(74,388)

Other comprehensive income/(loss), net of taxes(17,821)(96,212)

Total comprehensive income/(loss) for the period

20,353(95,910)Non-controlling interests

18,311
2,041(93,782)(2,127)

Total comprehensive income/(loss) for the period

20,353(95,910)

Cash flow hedges

Attributable to:
Owners of the parent— 16 —

(3) Interim Condensed Consolidated Statement of Changes in Equity
For six months ended 28 February 2015
(Millions of yen)
Other components of equity

Note
As at 1 September 2014
Net changes during
the period
Comprehensive income
Profit for the period
Other comprehensive
incomeTotal comprehensive
incomeTransactions withthe owners
Acquisition oftreasury stock
Disposal oftreasury stock
Dividends
Share-based payments
OthersTotal transactions withthe owners
Total net changes
during the period
As at 28 February 2015

8

Treasury Availablestock,for-saleat costreserve(15,790)798

Foreigncurrencytranslation
reserve
23,035Cash-flow
hedge
reserve
64,536Equityattributableto owners
Nonof the controlling
Totalparentinterests
88,371
618,381
17,660Capitalstock
10,273

Capitalsurplus9,803

Retainedearnings
525,722——

104,753

—

—

—

—

—

104,753

6,218

110,971

—

—

—

—

(689)

16,11855,90871,337

71,337

1,323

72,661——

104,753—(689)

16,11855,90871,337

176,091

7,541

183,633

—

—

—

(2)

—

—

—

—

(2)

—

(2)

—
—
—
—

415
—
1,170
—

—
(15,287)
—
—

59
—
—
—

—
—
—
—

—
—
—
—

—
—
—
—

—
—
—
—

474
(15,287)
1,170——(1,226)—180474(16,513)
1,170
180

—

1,585

(15,287)

56

—

—

—

—

(13,646)(1,046)(14,692)—
10,273

1,585
11,38989,465615,187

56(15,733)

(689)
109

16,11839,15455,908120,444

71,337
159,708

162,445
780,826

6,495
24,156

168,940
804,982— 17 —

Total
equity636,041

For six months ended 29 February 2016
(Millions of yen)
Other components of equity

Note
As at 1 September 2015
Net changes during
the period
Comprehensive income
Profit for the period
Other comprehensive
incomeTotal comprehensive
incomeTransactions withthe owners
Acquisition oftreasury stock
Disposal oftreasury stock
Dividends
Share-based payments
OthersTotal transactions withthe owners
Total net changes
during the period
As at 29 February 2016

8

Treasury Availablestock,for-saleat costreserve(15,699)
143

Foreigncurrencytranslation
reserve
37,851

Cash-flow
hedge
reserve
104,219

Equityattributableto owners
Nonof the controlling
Totalparentinterests
142,214750,937
23,867

Capitalstock
10,273

Capitalsurplus11,524Retainedearnings
602,623——

47,043

—

—

—

—

—

47,043

4,391

51,434

—

—

—

—

(39)

(15,874)(79,899)(95,813)(95,813)(2,871)(98,684)——

47,043—(39)(15,874)(79,899)(95,813)(48,770)

1,520(47,250)

—

—

—

(4)

—

—

—

—

(4)

—

(4)

—
—
—
—

337
—
984
187

—
(17,840)
—
—

42
—
—
—

—
—
—
—

—
—
—
—

—
—
—
—

—
—
—
—

379
(17,840)984
187—(2,067)—454

379(19,907)
984
641

—

1,508

(17,840)

37

—

—

—

—

(16,294)(1,612)(17,907)—
10,273

1,508
13,032

29,202631,82637(15,662)(39)
103(15,874)
21,977(79,899)
24,319(95,813)
46,400(65,065)
685,871(92)
23,775(65,157)
709,647— 18 —

Total
equity774,804

(4) Interim Condensed Consolidated Statement of Cash Flows(Millions of yen)Six months ended
28 February 2015
Profit before income taxes
Depreciation and amortization
Increase/(decrease) in allowance for doubtful accounts
Increase/(decrease) in other provisions
Interest and dividend income
Interest expenses
Foreign exchange losses/(gains)
Losses on retirement of property, plant and equipment
Decrease/(increase) in trade and other receivables
Decrease/(increase) in inventories
Increase/(decrease) in trade and other payables
Decrease/(increase) in other assets
Increase/(decrease) in other liabilities

Six months ended
29 February 2016

163,666
17,784
6(2,973)(606)
530(12,724)265(1,981)
21,87852,134
3,518
10,555(1,445)82,041
18,656(28)(5,749)(973)
920
17,353519(5,054)27,941
22,764
1,835
5,813(1,938)

Income taxes refund

250,610478(543)(40,366)
13,881

164,101
973(733)(38,301)
17,811

Net cash from operating activities

224,060

143,851(45,811)(21,678)
174(3,426)(4,291)(180,353)(17,062)
1,003(4,555)(2,102)Others, net

1,589(1,228)
905
(250)

519
(807)
1,023
228

Net cash used in investing activities(74,018)(202,107)

Others, net
SubtotalInterest and dividend income received
Interest paid
Income taxes paid

Decrease/(increase) in bank deposits
with maturity over 3 months
Purchases of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchases of intangible assets
Payments for lease and guarantee deposits
Proceeds from collection of leaseand guarantee deposits
Increase in construction assistance fund receivables
Decrease in construction assistance fund receivables— 19 —Six months ended
28 February 2015

Note
Net increase/(decrease) in short-termloans payable
Repayment of long-term loans payable
Proceeds from issuance of bonds
Cash dividends paid
Cash dividends paid to non-controlling interests
Repayments of lease obligations

Six months ended
29 February 2016

Others, net(1,067)(2,954)—(15,234)(1,226)(2,244)330(2,870)(2,985)249,369(17,840)(2,067)(2,319)497

Net cash used in financing activities(22,397)

221,785

21,190(14,739)

Cash and cash equivalents at beginning of period

148,835
314,049

148,789355,212

CASH AND CASH EQUIVALENTS AT END OF PERIOD

462,884

504,0028

Effect of exchange rate changes on cash andcash equivalents
Net increase/(decrease) in cash andcash equivalents— 20 —

Notes to the Interim Condensed Consolidated Financial Statements
1. Reporting Entity
FAST RETAILING CO., LTD. (the “Company”) 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/eng/).
The principal activities of the Company and its consolidated subsidiaries (the “Group”) are the UNIQLO business (casual
wear retail business operating under the “UNIQLO” brand in Japan and overseas) and GU business, Theory business (appareldesigning and retail business in Japan and overseas), etc.
2. Basis of Preparation
The interim condensed consolidated financial statements of the Group have been prepared in compliance with
International Accounting Standard 34 “Interim Financial Reporting” (“IAS 34”). The Group adopted Article 93 of Consolidated
Quarterly Financial Statements Rules, because the Group meets the criteria of a “specified company” defined under Article
1-2 of the said rules. Since the interim condensed consolidated financial statements do not include all the information anddisclosures required for consolidated financial statements, they should be read in conjunction with the Group’s annual
consolidated financial statements for the year ended 31 August 2015.
The interim condensed consolidated financial statements were approved on 14 April 2016 by Tadashi Yanai, Chairman,
President and CEO, and Takeshi Okazaki, Group Executive Vice President and CFO.
3. Significant Accounting Policies
The accounting policies presented in the consolidated financial statements for the year ended 31 August 2015 are appliedconsistently in the preparation of these interim condensed consolidated financial statements.
4. Use of Estimates and Judgments
The preparation of the interim condensed consolidated financial statements in accordance with IAS 34 requires
management to make judgments, estimates and assumptions that affect the application of accounting policies and thereported amounts of assets and liabilities, income and expenses. 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 are recognized in the accounting period in which the estimates were reviewed and in future accounting periods.
In principle, important estimates and judgments that have significant effects on the amounts recognized in the interim
condensed consolidated financial statements are the same as the preceding consolidated fiscal year.

— 21 —

5. Segment information(i) Description of reportable segments
The Group’s reportable segments are components for which discrete financial information is available and is reviewed
regularly by the Board to make decisions about the allocation of resources and to assess performance.
The Group’s main retail clothing business is divided into three reportable operating segments: UNIQLO Japan, UNIQLOInternational 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
Global Brands: GU, Theory, COMPTOIR DES COTONNIERS, PRINCESSE TAM.TAM and J Brand clothing operations(ii) Method of calculating segment revenue and results
The methods of accounting for the reportable segments are the same as those stated in the “Significant Accounting
Policies” of the Group’s annual consolidated financial statements for the year ended 31 August 2015.
The Group does not allocate assets and liabilities to individual reportable segments.
(iii) Segment information
For the six months ended 28 February 2015
(Millions of yen)
Reportable segments
UNIQLOJapan

UNIQLOInternational

GlobalBrandsTotal

Interim
Condensed
Adjustments
Consolidated(Note 2)
Statement ofProfit or Loss

Others(Note 1)

Revenue

454,502345,504

148,254948,260

1,423—

949,684

Operating profit

89,462

42,861

11,740144,06415

5,997

150,077

Segment income(profit before
income taxes)

90,82041,994

11,715

144,530

15

19,120163,666(Note1) “Others” include real estate leasing business, etc.
(Note2) “Adjustments” mainly include revenue and corporate expenses which are not allocated to individual reportablesegments.
For the six months ended 29 February 2016
(Millions of yen)
Reportable segments
UNIQLOJapan

UNIQLOInternational

GlobalBrandsTotal

Interim
Condensed
Adjustments
Consolidated(Note 2)
Statement ofProfit or Loss

Others(Note 1)

Revenue453,693389,255

167,316

1,010,265

1,387

—

1,011,653

Operating profit

64,11329,402

14,310107,825

8(8,492)

99,341

Segment income(profit before

63,794

28,666

13,651

106,1128(24,079)

82,041income taxes)(Note1) “Others” include real estate leasing business, etc.
(Note2) “Adjustments” mainly include revenue and corporate expenses which are not allocated to individual reportablesegments.

— 22 —

For the three months ended 28 February 2015
(Millions of yen)
Reportable segments
UNIQLOUNIQLOInternational

Japan

GlobalBrands

Total

Others(Note 1)

Interim
Condensed
Adjustments
Consolidated(Note 2)
Statement ofProfit or Loss

Revenue

221,869

177,472

70,067469,409730—

470,140

Operating profit

38,31918,5452,182

59,04717(357)

58,707

Segment income(profit before
income taxes)

37,977

18,2482,089

58,31517(1,411)

56,920(Note1) “Others” include real estate leasing business, etc.
(Note2) “Adjustments” mainly include revenue and corporate expenses which are not allocated to individual reportablesegments.
For the three months ended 29 February 2016
(Millions of yen)
Reportable segments
UNIQLOUNIQLO

GlobalJapan

International

Brands

Total

Others(Note 1)

Interim
Condensed
Adjustments
Consolidated(Note 2)
Statement ofProfit or Loss

Revenue

222,753

192,31175,491

490,557792—

491,350

Operating profit

19,291

8,532

1,908

29,732

117(6,429)23,420

Segment income(profit before
income taxes)

18,806

7,706

1,289

27,801

117(23,545)4,374(Note1) “Others” include real estate leasing business, etc.
(Note2) “Adjustments” mainly include revenue and corporate expenses which are not allocated to individual reportablesegments.

— 23 —

6. Inventories
Write-down of inventories to net realizable value and recognized as expenses is as follows:(Millions of yen)Six months ended
28 February 2015

Six months ended
29 February 2016

1,948

3,209

Write-down of inventories to net realizable value
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 2015
Buildings and structures
Furniture, equipment and vehicles
Land
Construction in progress
Lease assets
Total

As at
29 February 2016

91,635
16,825
2,643
7,284
10,95289,757
16,709
1,962
6,418
11,148129,340

125,996

8. Dividends
The total amount of dividends paid was as follows:
Dividends paid during the six months ended 28 February 2015
Total dividends(Millions of yen)

Resolution
Meeting of the Board of Directors on 3 November 201415,287

Dividends per share
(Yen)
150

Dividends for which the declared date is 31 August 2014 are paid on or after 21 November 2014 as the effective date.
Dividends paid during the six months ended 29 February 2016
Total dividends(Millions of yen)

Resolution
Meeting of the Board of Directors on 4 November 2015

17,840

Dividends per share
(Yen)
175

Dividends for which the declared date is 31 August 2015 are paid on or after 11 November 2015 as the effective date.
Proposed dividends on common stock are as follows:
Six months ended
28 February 2015

Six months ended
29 February 2016

Total dividends (million yen)

17,83818,861Dividends per share (yen)

175

185

Regarding the proposed dividends per common stock, the Board has approved the proposal subsequent to the period-end
date, and this sum is not recognized as a liability as at 29 February 2016.

— 24 —

9. 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 2015

Six months ended
29 February 2016

Selling, general and administrative expenses
Advertising and promotion
Rental expenses
Depreciation and amortization
Outsourcing
Salaries
Others35,52086,814
17,784
13,813110,986
71,41340,835
91,16318,656
17,347
121,597
81,128

Total

336,333

370,729

10. Other income and other expenses
The breakdown of other income and other expenses for each reporting period is as follows:(Millions of yen)

Other income
Foreign exchange gains*
Gains on sales of property, plant and equipment
Others
Total

Six months ended
28 February 2015

Six months ended
29 February 2016

6,906
0
1,167

—
33
887

8,075

921

* Currency adjustments incurred in the course of operating transactions are included in “other income”.
(Millions of yen)

Other expenses
Foreign exchange losses*
Loss on retirement of property, plant and equipment
Others
Total

Six months ended
28 February 2015

Six months ended
29 February 2016

—
265
915

5,494
519
1,772

1,181

7,786

* Currency adjustments incurred in the course of operating transactions are included in “other expenses”.

— 25 —

11. Finance income and finance costs
The breakdown of finance income and finance costs for each reporting period is as follows:(Millions of yen)

Finance income
Foreign exchange gains*
Interest income
Dividend income
Others
Total

Six months ended
28 February 2015

Six months ended
29 February 2016

12,724
572
34
792

—
968
5
—

14,123973* Currency adjustments incurred in the course of non-operating transactions are included in “finance income”.
(Millions of yen)

Finance costs
Foreign exchange losses*
Interest expenses
Others
Total

Six months ended
28 February 2015

Six months ended
29 February 2016

—
530
3

17,353920—

534

18,273* Currency adjustments incurred in the course of non-operating transactions are included in “finance costs”.
12. Earnings per share
Six months ended 28 February 2015

Six months ended 29 February 2016

Equity per share attributable to ownersof the parent (Yen)
Basic earnings per share for the period (Yen)
Diluted earnings per share for the period (Yen)

Equity per share attributable to ownersof the parent (Yen)
Basic earnings per share for the period (Yen)
Diluted earnings per share for the period (Yen)

7,660.10
1,027.75
1,026.51

6,727.12
461.43460.80(Note) The basis for calculation of basic earnings per share and diluted earnings per share for the period is as follows:

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 during the period (Shares)
Diluted earnings per share for the period
Adjustment to profit (Millions of yen)
Increase in number of common stock (Shares)(share subscription rights)— 26 —

Six months ended
28 February 2015

Six months ended
29 February 2016

104,753—
104,753
101,924,560

47,043—47,043
101,950,064—
123,789(123,789)—
140,167(140,167)

Three months ended 28 February 2015
Basic earnings per share for the period (Yen)
Diluted earnings per share for the period (Yen)Three months ended 29 February 2016
352.47351.98

Basic loss per share for the period (Yen)
Diluted loss per share for the period (Yen)(9.63)(9.63)(Note) The basis for calculation of basic earnings per share and diluted earnings per share for the period is as follows:
Three months ended Three months ended
28 February 201528 February 2016
Basic earnings/(loss) per share for the period
Profit/(loss) for the period attributable to owners of the parent(Millions of yen)
Profit not attributable to common shareholders (Millions of yen)
Profit/(loss) attributable to common shareholders (Millions of yen)
Average number of common stock during the period (Shares)
Diluted earnings/loss per share for the period
Adjustment to profit (Millions of yen)
Increase in number of common stock (Shares)(share subscription rights)

35,926(981)—
35,926
101,928,222—(981)
101,952,430—
142,957(142,957)——(—)(Note) In the second quarter of the current fiscal year, no adjustment has been made to the basic earnings per share for theperiod in respect of a dilution as the impact of the outstanding stock options had an anti-dilutive effect on the basic
loss per share amounts presented.
13. Fair value of financial instruments
The information about carrying amount and fair value of financial instruments is as follows:(Millions of yen)

Short-term borrowings
Long-term borrowings (Note1)
Corporate bonds (Note2)
Lease obligations (Note1)
Total

As at 31 August 2015
As at 29 February 2016
Carrying amounts
Fair value
Carrying amounts
Fair value
4,652
4,652
1,538
1,538
21,121
21,27016,961
17,209——249,438
253,938
12,262
12,197
12,232
12,11638,035
38,120280,170
284,802(Note1) The above includes the outstanding balance of borrowings due within 1 year.
(Note2) Corporate bonds issued during the six-month ended February 29, 2016 are as follows.
(Millions of yen)Company nameName of bonds

FAST RETAILING
CO., LTD.
FAST RETAILING
CO., LTD.
FAST RETAILING
CO., LTD.
FAST RETAILING
CO., LTD.

1st non-collateralized
corporate bonds
2nd non-collateralized
corporate bonds
3rd non-collateralized
corporate bonds
4th non-collateralized
corporate bonds

Date of issuance

Amount to beissuedInterest Rate (%)

Date of maturity

18 December 2015

30,0000.110

18 December 201818 December 2015

100,000

0.291

18 December 2020

18 December 2015

50,0000.491

16 December 2022

18 December 2015

70,0000.749

18 December 2025

The fair value of short-term financial assets, short-term financial liabilities, long-term financial assets and long-term
financial liabilities are measured by amortized cost and approximate their carrying amounts.
The fair value of Corporate bonds are measured by the market price.
The fair value of long-term borrowings and lease obligations are classified by term, and are calculated on the basis of thecurrent value applying a discount rate that takes into account time remaining to maturity and credit risk.

— 27 —

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 financial statements are categorized within the fair value
hierarchy described as follows:
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
is observable, either directly or indirectly
Level 3 — based on valuation techniques for which the lowest level input that is significant to the fair value measurement
is unobservable(Millions of yen)
As at 31 August 2015

Level 1

Available-for-sale financial assets
Financial instruments at fair value throughprofit or loss (“FVTPL”)
Foreign currency forward contracts designatedas hedging instruments
Total

Level 2

Level 3

Total

363

―

210

574

―

556

―

556

―

156,834―

156,834363

157,390210

157,964(Millions of yen)

As at 29 February 2016

Level 1

Available-for-sale financial assets
Financial instruments at FVTPL
Foreign currency forward contracts designatedas hedging instruments
Total

Level 2

Level 3

Total

306
―

―
71

208
―

514
71

―

32,708―32,708306

32,779208

33,293For the valuation of level 2 derivative financial instruments for which a market value is available, we use a valuation
model that uses observable data on the measurement date as indicators such as interest rates, yield curves, currency rates
and volatility in comparable instruments.
Unlisted securities are included in level 3. There is no significant increase or decrease in level 3 items through purchase,
disposal or settlement. Also, there is no transfer from level 3 to level 2.
14. Commitments
The Group had the following commitments at each reporting dates:(Millions of yen)
As at
31 August 2015
Commitment for acquisition of property, plant and equipment
Commitment for acquisition of intangible assets
Total
15. Subsequent Events
Not applicable.

— 28 —As at
29 February 2016

8,825
85

6,389
—

8,910

6,389

2. Others
Dividends
The Company resolved to pay a dividend from retained earnings at the meeting of the Board of Directors convened on 7
April 2016.
The total amount of dividend and amount per share are stated under “Financial section 1. Interim Condensed
Consolidated Financial Statements, Notes to the Interim Condensed Consolidated Financial Statements 8. Dividends”.

— 29 —

Report on review of interim condensed consolidated financial statements
Board of Directors
FAST RETAILING CO., LTD.
Ernst & Young ShinNihon LLC
Shigeyuki Amimoto
Certified Public Accountant
Designated and Engagement Partner
Shuji Kaneko
Certified Public Accountant
Designated and Engagement Partner
Tomo Ito
Certified Public Accountant
Designated and Engagement Partner
Pursuant to first clause of Article 193-2 of the Financial Instruments and Exchange Act, we have reviewed the interim condensed
consolidated financial information included in the financial section, which comprises the interim condensed consolidated
statement of financial position of FAST RETAILING CO., LTD. (the “Company”) and its subsidiaries (collectively, the “Group”)
as at 29 February 2016, and the related interim condensed consolidated statement of profit or loss and interim condensed
consolidated statement of comprehensive income for the three-month and the six-month period then ended, interim
condensed consolidated statement of changes in equity and interim condensed consolidated statement of cash flows for thesix-month period then ended, and other explanatory notes (the “Interim Financial Information”).
Management’s responsibility for the interim condensed consolidated financial statements
Management is responsible for the preparation and fair presentation of the Interim Financial Information in accordance with
International Accounting Standard 34 “Interim Financial Reporting” (“IAS 34”), pursuant to Article 93 of the “Rules GoverningTerm, 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 frommaterial misstatement, whether due to fraud or error.
Auditors’ responsibility
Our responsibility is to express a conclusion on the Interim Financial Information based on our review. Our report is made solely
to you, as a body, and for no other purpose. We do not assume responsibility towards or accept liability to any other person forthe contents of this report.
We conducted our review in accordance with quarterly review standards generally accepted in Japan. A review of Interim
Financial Information consists of making inquiries, primarily of persons responsible for financial and accounting matters, andapplying analytical and other quarterly review procedures. A review is substantially less in scope than an audit conducted inaccordance with auditing standards generally accepted in Japan and consequently does not enable us to obtain assurance that
we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit
opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe that the accompanying interim condensed
consolidated financial statements are not prepared, in all material respects, in accordance with IAS 34.
Conflicts of Interest
We have no interest in the Company which should be disclosed in compliance with the Certified Public Accountants Act.

Ernst & Young ShinNihon LLC
Tokyo, Japan
14 April 2016
(Note)
This is an English translation of the Japanese language Independent Auditors’ Report issued by Ernst & Young ShinNihon LLC in
connection with the review of the interim condensed consolidated financial statements of the Group prepared in Japanese forthe period ended 29 February 2016. Ernst & Young ShinNihon LLC has not reviewed the English language version of the interim
condensed consolidated financial statements for the above mentioned period.

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