FAST RETAILING CO., LTD.
迅銷有限公司Third Quarterly Report 2018/19
2019.3.1–2019.5.31
Stock Code: 6288

Contents
1. Corporate Profile2

2. Financial Highlights

3

3. Management Discussion and Analysis

5

4. Information about the Reporting Entity

8

5. Financial Section

10

1. Interim Condensed Consolidated Financial Statements(1) Interim Condensed Consolidated Statement of
Financial Position

11(2) Interim Condensed Consolidated Statement ofProfit or Loss and Interim Condensed Consolidated
Statement of Comprehensive Income

12Interim Condensed Consolidated Statement ofProfit or Loss
Interim Condensed Consolidated Statement ofComprehensive Income(3) Interim Condensed Consolidated Statement of
Changes in Equity

16(4) Interim Condensed Consolidated Statement of
Cash Flows

18(5) Notes to the Interim Condensed Consolidated
Financial Statements

20

29

2. Others

30

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

Principal Place of Business in Japan

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

Midtown Tower 9-7-1, Akasaka, Minato-ku
Tokyo 107-6231
Japan

Independent Directors

Principal Place of Business in Hong Kong

Toru Hambayashi (External)
Nobumichi Hattori (External)
Masaaki Shintaku (External)
Takashi Nawa (External)
Naotake Ohno (External)

702–706, 7th Floor, Mira Place Tower A
No. 132 Nathan Road
Tsim Sha Tsui
KowloonHong Kong

Directors

HDR Registrar and HDR Transfer Office

Takeshi Okazaki
Kazumi Yanai
Koji Yanai

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

Audit & Supervisory Board Members
Akira Tanaka
Masaaki Shinjo
Takaharu Yasumoto (External)
Keiko Kaneko (External)
Takao Kashitani (External)

Stock CodeHong 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

—2—

2. Financial Highlights
Consolidated Financial Summary
Term

57th Fiscal Year

58th Fiscal Year

57th Fiscal Year

Accounting period

Nine months
ended
31 May 2018

Nine months
ended
31 May 2019Year ended
31 August 2018

Revenue (Millions of yen)

1,704,149

1,822,877

2,130,060

Operating profit (Millions of yen)

238,897

247,688236,212

Profit before income taxes (Millions of yen)

237,475

247,211242,678

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

148,335

158,668

154,811Comprehensive income attributable to owners of the Parent(Millions of yen)

140,889

147,420

165,378

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

838,368

963,770

862,936

Total assets (Millions of yen)

1,648,823

1,974,493

1,953,466

Basic earnings per share (Yen)

1,454.29

1,554.94

1,517.71

Diluted earnings per share (Yen)

1,451.77

1,552.35

1,515.23

50.8

48.8

44.2

Net cash generated by operating activities (Millions of yen)

258,122286,216

176,403

Net cash (used in) generated by investing activities (Millions of yen)

(35,892)(73,575)(57,180)

Ratio of equity attributable to owners of the Parent to total assets

Net cash (used in) generated by financing activities (Millions of yen)

(43,129)(94,753)

198,217

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

858,359

1,105,085

999,697

Three months
ended
31 May 2018

Three months
ended
31 May 2019517,384

555,180

Accounting period
Revenue (Millions of yen)
Profit attributable to owners of the parent (Millions of yen)

44,184

44,639Basic earnings per share for the period (Yen)433.13437.41(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 quoted from the 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 the business engaged in by the Company and its subsidiaries (collectively, the“Group”) during the nine months ended 31 May 2019.
In addition, there were no significant changes in the organizational structure of the Group, including the major subsidiaries,
during the nine months ended 31 May 2019.

—4—

3. Management Discussion and Analysis
Business Review
1. Business and Operational Risks

No new business-related risks have arisen during the nine months ended 31 May 2019.
There have been no significant changes concerning business-related risks as stated in the annual report for the preceding
consolidated fiscal year.

2.

(1)

Financial Analysis

Results of Operations
The Fast Retailing Group reported rises in both revenue and profit in the third quarter of fiscal 2019, or the nine months
from 1 September 2018 to 31 May 2019. Consolidated revenue increased to 1.8228 trillion yen (+7.0% year-on-year),
operating profit expanded to 247.6 billion yen (+3.7% year-on-year), profit before income taxes totaled 247.2 billion
yen (+4.1% year-on-year), and profit attributable to owners of the parent rose to 158.6 billion yen (+7.0% year-on-year).
Among those data, revenue, operating profit, profit before income taxes, and profit attributable to owners of the parents
attained new record levels in the nine months to 31 May 2019.
The Group’s medium-term vision is to become the world’s number one apparel retailer. In pursuit of this aim, weare focusing our efforts on expanding UNIQLO International as well as our GU casual fashion brand and our global
e-commerce operation. We continue to increase UNIQLO store numbers in each country in which we operate, and open
global flagship stores and large-format stores in major cities around the world to further develop UNIQLO as a global
brand. Within the UNIQLO International segment, Greater China (Mainland China, Hong Kong and Taiwan) and Southeast
Asia are entering a new stage of growth as key drivers of operational expansion. In terms of our GU operation, we plan toopen more GU stores in Japan, while expanding the brand’s international presence, primarily in Greater China and South
Korea.
UNIQLO Japan
UNIQLO Japan reported declines in both revenue and profit in the first nine months of fiscal 2019, with revenue totaling
701.0 billion yen (-0.5% year-on-year) and operating profit totaling 96.7 billion yen (-19.5% year-on-year). The grossprofit margin declined 2.4 points year-on-year as a result of stronger discounting of Winter items following the warm
winter weather in the first half, and an early rundown of Spring Summer inventory in the third quarter. Meanwhile, theselling, general and administrative expense ratio increased by 0.9 points year-on-year. While new IC tags (radio frequency
identification) helped increase cash-register and store-operation efficiencies and reduce the personnel-to-net-sales ratio,
the distribution-to-net-sales ratio rose on the back of expanding online sales and higher inventory levels, and we also
recorded higher depreciation expenses on investment linked to the automation of our Ariake warehouse.
For the three months through 31 May 2019, UNIQLO Japan same-store sales, including online sales, declined 0.1% yearon-year, resulting in a 0.5% year-on-year decline in revenue. While sweat wear, UV-cut items, leggings, T-shirts and otherranges sold well throughout the quarter, the deferral of our hallmark UNIQLO anniversary sale until June meant thatsame-store sales in the traditionally bumper month of May actually declined year-on-year, and that was what generated
the slight contraction in revenue for the three-month period as a whole. Meanwhile, online sales expanded by 16.1%
year-on-year in the three months to 31 May 2019 to 19.0 billion yen, increasing their proportion of total sales from 7.8%
to 9.1% of total sales. On the profit front, operating profit declined by 7.5% year-on-year on the back of a higher selling,
general and administrative expense ratio, and a lower gross profit margin, which was dampened by our decision to bringforward discounting of leftover Spring Summer inventory.
UNIQLO International
UNIQLO International revenue and profit rose in the first nine months of fiscal 2019, with revenue rising to 820.5 billion
yen (+14.6% year-on-year) and operating profit expanding to 124.8 billion yen (+11.1% year-on-year).
For the three months from March to May 2019, the segment also reported strong results, with revenue expanding 15.3%
year-on-year and operating profit expanding 14.9% year-on-year over that period. In terms of individual markets, within
the UNIQLO Greater China region, the Mainland China operation continued to achieve significant year-on-year growth inboth revenue and profit. UNIQLO Southeast Asia & Oceania achieved double-digit growth in both revenue and profit on
the back of strong sales of Summer ranges. UNIQLO South Korea reported a fall in same-store sales and a slight decline inprofit. While the loss generated by UNIQLO USA shrank year-on-year, overall performance was lower than expected after
unseasonal weather dampened sales of Spring Summer ranges. UNIQLO Europe reported a decline in profit caused byunseasonal weather patterns and political uncertainty. However, within that region, Russia continued to perform strongly
and report expanding revenue and profit.
In terms of new-store activity, UNIQLO International opened its first store in the Netherlands in Amsterdam in September
2018, as well as its biggest Southeast Asian global flagship store in Manila, the Philippines in October 2018, and its first
store in Denmark in Copenhagen in April 2019.
GUThe GU business segment reported a large recovery in profits over the first nine months of fiscal 2019, with revenue
expanding 11.2% year-on-year to 185.3 billion yen and operating profit expanding 74.5% year-on-year to 26.3 billion yen.
Over the three-month period from March to May 2019, that profit recovery was even more marked, as revenue expandedby 12.1% year-on-year and operating profit increased by 105.8% year-on-year. GU generated further strong sales over
the Spring Summer period thanks to its persistent drive to concentrate the number of product items, and developing
product mixes that focus on mass fashion trends. Furthermore, the GU operating profit margin improved by an impressive
8.2 points year-on-year on reduced discounting, and a lower cost of sales resulting from early submission of orders andaggregate purchasing of raw materials.
—5—Global Brands
Global Brands reported a decline in revenue but a rise in profit over the first nine months of fiscal 2019, with revenue
totaling 113.6 billion yen (-1.0% year-on-year) and operating profit standing at 4.6 billion yen (compared to a 3.5 billion
yen loss in the previous year following the recording of 8.9 billion yen in impairment losses).
For the three months from March to May 2019, Global Brands reported a 1.1% year-on-year decline in revenue and a
29.0% decline in operating profit. Breaking down that performance into individual brands, our Theory operation reported
a steady operating profit and our PLST brand achieved a slight rise in profit. Meanwhile, our France-based Comptoir desCotonniers and Princesse tam.tam brands reported increasing losses, while our US-based J Brand premium denim label
generated a similar loss to the previous year.
Sustainability
In keeping with our key sustainability message “Unlocking the power of clothing,” Fast Retailing aims to contribute to
the sustainable development of global society through our core clothing business. Fast Retailing’s sustainability activities
seek to promote human rights, environmental protection and broader social contributions within six clear material areas:
Create new value through products and services; Respect human rights in our supply chain; Respect the environment;
Strengthen communities; Support employee fulfillment, and; Corporate governance.
Regarding human rights, a common theme in several material areas, including respecting human rights and working
environments in our supply chain, and supporting employee fulfillment, we started offering human rights training for
employees from August 2018. By the end of May 2019, a total of 1,700 employees had participated in the program,including store managers from Fast Retailing Group companies in Japan.
In terms of environmental protection, in February 2019, we committed to establish science-based targets (SBT) within
two years, and are currently preparing to determine those goals. SBT are tools to help to reduce greenhouse gas
emissions based on targets laid out in the Paris Agreement on climate change.
In the area of strengthening communities, we continue to contribute to local communities in all locations in which we
operate. For instance, in September 2018, we distributed approximately 18,000 items of clothing aid to victims of the
Hokkaido Eastern Iburi earthquake. In support of surrounding local communities, UNIQLO launched a Casal U program inBarcelona, Spain in September 2018, with the aim of providing a place for socially vulnerable children and young people
to enjoy and learn about fashion, music, and dance. We continue to proactively support refugees, donating approximately
90,000 items of clothing to refugees and displaced persons from Venezuela in Columbia in November 2018 through our
All-Product Recycling Initiative. This initiative delivers second-hand clothing brought by our customers to UNIQLO andGU stores to people in need of clothes worldwide. In addition, employees serve as instructors in our Power of Clothing
Project, a school outreach program designed to help children deepen their understanding of the international refugee
and displaced person problem. The project received multiple accolades in 2018, including award for excellence in the 9thCareer Education Awards for outstanding educational activities in the industrial sector sponsored by Japan’s Ministry of
Economy, Trade and Industry, and the Special Award from the Panel (in the large companies category) for Companies
That Provide Experiences for Young People, sponsored by Japan’s Ministry of Education, Culture, Sports, Science andTechnology.
(2)

Financial Position
Total assets as at 31 May 2019 were 1,974.4 billion yen, which was an increase of 21 billion yen relative to total assets at
the end of the preceding consolidated fiscal year. The principal factors were an increase of 105.3 billion yen in cash andcash equivalents, an increase of 30.9 billion yen in trade and other receivables, an increase of 21.6 billion yen in otherfinancial assets, an increase of 11.8 billion yen in intangible assets and a decrease of 149.2 billion yen in inventories.
Total liabilities as at 31 May 2019 were 964.3 billion yen, which was a decrease of 86.3 billion yen relative to total
liabilities at the end of the preceding consolidated fiscal year. The principal factors were an increase of 21.7 billion yen incurrent tax liabilities and an increase of 6.5 billion yen in other liabilities, a decrease of 71 billion yen in trade and otherpayables and a decrease of 42 billion yen in other current financial liabilities,
Total net assets as at 31 May 2019 were 1,010.1 billion yen, which was an increase of 107.4 billion yen relative to total
net assets at the end of the preceding consolidated fiscal year. The principal factor was an increase of 109.6 billion yen inretained earnings.

—6—

(3)

Cash Flow Information
Cash and cash equivalents as at 31 May 2019 increased by 105.3 billion yen from the end of the preceding consolidated
fiscal year to 1,105 billion yen.
(Operating Cash Flows)
Net cash generated by operating activities for the nine months ended 31 May 2019 was 286.2 billion yen (an increase by
10.9% from the nine months ended 31 May 2018), which was an increase of 28 billion yen from the nine months ended
31 May 2018. The principal factors were 247.2 billion yen in profit before income taxes (an increase of 9.7 billion yen
from the nine months ended 31 May 2018), 2 billion yen in impairment losses (a decrease of 8.3 billion yen from the ninemonths ended 31 May 2018), an increase of 30.1 billion yen in trade and other receivables (an increase of 2.8 billion yen
from the nine months ended 31 May 2018), a decrease of 144.6 billion yen in inventories (an increase of 129.8 billion yen
from the nine months ended 31 May 2018), a decrease of 5.7 billion yen in other assets (an increase of 44.5 billion yen
from the nine months ended 31 May 2018), a decrease of 6.7 billion yen in other liabilities (a decrease of 147.4 billion yen
from the nine months ended 31 May 2018).
(Investing Cash Flows)
Net cash used in investing activities for the nine months ended 31 May 2019 was 73.5 billion yen (an increase by 105.0%
from the nine months ended 31 May 2018), which was an increase of 37.6 billion yen from the nine months ended 31
May 2018. The principal factors were an increase of 22.1 billion yen in bank deposits with original maturities over threemonths or longer (an increase of 23.4 billion yen from the nine months ended 31 May 2018), 31.8 billion yen in paymentsfor property, plant and equipment (an increase of 9.4 billion yen from the nine months ended 31 May 2018) and 18.1
billion yen in payments for intangible assets (an increase of 7.5 billion yen from the nine months ended 31 May 2018).
(Financing Cash Flows)
Net cash used in financing activities for the nine months ended 31 May 2019 was 94.7 billion yen (an increase by 119.7%
from the nine months ended 31 May 2018), which was an increase of 51.6 billion yen from the nine months ended 31
May 2018. The principal factor was 30 billion yen in repayment of redemption of bonds (an increase of 30 billion yen fromthe nine months ended 31 May 2018) and 48.9 billion yen in dividends paid to owners of the Parent (an increase of 10.7
billion yen from the nine months ended 31 May 2018).

(4)

Operational and Financial Challenges
There have been no significant challenges during the nine months ended 31 May 2019 that resulted in issues that must be
addressed by the Group.

(5)

Research and Development
Not applicable.

(6)

Significant Facilities
The following are the significant facilities that were planned as at the end of the preceding consolidated fiscal year andnewly completed during the nine months ended 31 May 2019.
<Subsidiaries in Japan>
Not applicable.
<Overseas Subsidiaries>
Company name

FAST RETAILING PHILIPPINES, INC.
UNIQLO CANADA INC.
UNIQLO EUROPE LIMITEDUNIQLO EUROPE LIMITEDUNIQLO HAWAII INC.

3.

Type of facility
UNIQLOInternational Stores
UNIQLOInternational Stores
UNIQLOInternational Stores
UNIQLOInternational Stores
UNIQLOInternational Stores

Name of business
UNIQLO Manila
Global FlagshipStore
UNIQLO Vaughan
Mills

Manila, Philippines

October 2018

City of Vaughan,
CanadaSeptember 2018

UNIQLO Köln

Cologne, Germany

October 2018

UNIQLO Kalverstraat

Amsterdam,
The Netherlands

September 2018

UNIQLO Ala Moana

Hawaii, USA

January 2019

Significant Contracts in Business Operation
None.

—7—

Location

Completion date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

(ii)

300,000,000

Shares Issued

Type

Number ofshares issued as at
31 May 2019

Number of shares issued
as at submission date
(As at 12 July 2019)

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

Remarks

100 sharesas one unit—

Common stock

106,073,656

106,073,656

First section of the Tokyo
Stock Exchange and theMain Board of the Stock
Exchange of 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(i)

Details of the Stock Option Program
Not applicable.

(ii)

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 March 2019 to
31 May 2019

Increase
Increase
Balance of total (decrease) of(decrease) of
number ofcapital stock
total number ofshares issued(Millionsshares issuedof yen)—106,073,656—

Balance ofcapital stock(Millionsof yen)10,273

Increase
Balance of(decrease) ofcapital reserve
capital reserve(Millions(Millionsof yen)of yen)—4,578(Note) There was no change in the total number of shares issued, capital stock or capital reserve during the three months
ended 31 May 2019.

(5)

Major Shareholders
There are no items to disclose, as the accounting period under review is the third quarter accounting period.

—8—

(6)

Voting Rights
Concerning “Voting Rights” as at the end of the third quarterly accounting period ended 31 May 2019, it has not beenpossible to confirm and state the details entered in the register of shareholders. Therefore, the stated details are basedon the register of shareholders as at the immediately preceding record date (28 February 2019).

(i)

Shares issued
As at 31 May 2019
Number of shares

Number of
voting rights

Remarks

Non-voting shares

—

—

—

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

—

—

—

—

—

—

Shares with full voting rights(i.e., treasury stock, etc.)(Shares held astreasury stock)
Common stock
4,022,700——

Shares with full voting rights(i.e., other than treasury stock)

Common stock
101,989,900

Class

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

Common stock

Shares less than one unit

61,056

Total number of shares issued

106,073,656

Total number of voting rights
of all Shareholders—

1,019,899—(Note 1)
(Notes 1 and 2)——
1,019,899—(Note 1) The columns for the number of shares of “Shares with full voting rights (i.e., other than treasury stock)” and “Sharesless than one unit” include 2,700 shares and 84 shares, respectively, held in the name of Japan Securities Depository
Center, Inc.
(Note 2) Common stock in the “Shares less than one unit” row includes 30 shares of treasury stock held by the Company.
(ii)

Treasury StockAs at 31 May 2019

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

2.

Number ofshares heldin own name

Number ofshares held inother’s name

Total numberof shares held

Percentage of
total number ofshares issued

717-1 Sayama,
Yamaguchi-shi,
Yamaguchi

4,022,700—

4,022,700

3.79—

4,022,700—

4,022,700

3.79

Holder’s address

Directors
Since the submission of the year-end report for the preceding consolidated fiscal year, there has been no change ofdirectors during the nine months ended 31 May 2019.

—9—

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 statementof financial position of the Group as at 31 May 2019, the related interim condensed consolidated statements of profit or loss
and interim condensed consolidated statement of comprehensive income for the three-month and nine-month periods thenended, and the interim condensed consolidated statements of changes in equity and cash flows for the nine-month period thenended (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, Formand Preparation of Consolidated 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.

— 10 —

(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

ASSETS
Current assets
Cash and cash equivalents
Trade and other receivables
Other financial assets
Inventories
Derivative financial assets
Income taxes receivable

As at 31 August 2018

As at 31 May 2019

999,697
52,67735,359464,788
35,5191,702
28,353

1,105,085
83,67456,966
315,50338,261
3,955
18,212

1,618,097

1,621,658

155,077
8,092
46,002
79,476

158,627
8,092
57,81377,931Other assets

14,64926,378
5,691

14,516
26,8309,020

Total non-current assets

335,368

352,834

1,953,466

1,974,493

214,542
171,854
6,917
21,503
11,86872,722

143,448
129,822
3,993
43,236
12,971
79,226499,410412,698

502,671
18,912
13,003
16,690499,479
19,723
15,426
16,97516
6
16

Other assets
Total current assets
Non-current assets
Property, plant and equipment
Goodwill
Intangible assets
Financial assets
Investments in associates accounted
for using the equity method
Deferred tax assets

7, 8
8
8
16

Total assets
Liabilities and equity
LIABILITIESCurrent liabilities
Trade and other payables
Other financial liabilities
Derivative financial liabilities
Current tax liabilities
Provisions

9, 16
16

Other liabilities
Total current liabilities
Non-current liabilities
Financial liabilities
Provisions
Deferred tax liabilities

9, 16

Other liabilities
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
Non-controlling interests
Total equity
Total liabilities and equity— 11 —

551,277

551,604

1,050,688

964,303

10,273
18,275815,146(15,429)
34,66910,273
20,531
924,837(15,294)
23,421

862,936
39,841

963,770
46,419902,777

1,010,190

1,953,466

1,974,493

(2)Interim Condensed Consolidated Statement of Profit or Loss and Interim Condensed Consolidated Statement ofComprehensive Income
Interim Condensed Consolidated Statement of Profit or Loss
Nine months ended 31 May 2019
(Millions of yen)
Notes

Revenue

Nine months ended
31 May 201811

Cost of sales
Gross profit
Selling, general and administrative expenses
Other income
Other expenses
Share of profit and loss of associates accounted
for using the equity method

12
13
8, 13

Nine months ended
31 May 2019

1,704,149(853,756)

1,822,877(930,200)

850,393(598,017)
2,124(16,060)

892,677(642,096)
3,469(6,842)457

480

238,897
5,414(6,836)247,688
8,792(9,268)

Income tax expense

237,475(76,220)

247,211(73,218)

Profit for the period

161,254

173,993

148,335
12,919158,668
15,325

161,254

173,993

1,454.29
1,451.77

1,554.94
1,552.35

Operating profit
Finance income

14

Finance costs

14

Profit before income taxes

Profit for the period attributable to:
Owners of the Parent
Non-controlling interests
Earnings per share
Basic (yen)Diluted (yen)1515— 12 —

Three months ended 31 May 2019
(Millions of yen)
Notes

Three months ended
31 May 2018

Revenue
Cost of sales
Gross profit
Selling, general and administrative expenses
Other income
Other expenses
Share of profit and loss of associates accounted
for using the equity method

Three months ended
31 May 2019517,384(252,629)

555,180(269,276)

264,754(194,378)
1,346(3,504)285,904(208,632)
1,363(4,104)186

216

68,4044,584(710)

74,747
3,378(5,127)

Income tax expense

72,279(24,671)

72,997(23,934)

Profit for the period

47,60849,062

44,184
3,423

44,6394,423

47,60849,062433.13432.42437.41436.69Operating profit
Finance income
Finance costs
Profit before income taxes

Profit for the period attributable to:
Owners of the Parent
Non-controlling interests
Earnings per share
Basic (yen)Diluted (yen)1515— 13 —

Interim Condensed Consolidated Statement of Comprehensive Income
Nine months ended 31 May 2019
(Millions of yen)
Nine months ended
31 May 2018
Profit for the period
Other comprehensive income (loss), net of income tax
Items that will not be reclassified subsequently
to profit or loss
Financial assets measured at fair value throughother comprehensive income (loss)
Total items that will not be reclassified subsequently
to profit or loss
Items that may be reclassified subsequently
to profit or loss
Net fair value gain (loss) on available-for-sales
financial assets during the period
Exchange differences on translating foreign
operations
Cash flow hedges
Share of other comprehensive income of associates
Total items that may be reclassified subsequently
to profit or loss

Nine months ended
31 May 2019

161,254

173,993

—

(393)

—

(393)

778

—

(1,398)(6,688)—(15,266)3,717(0)(7,308)(11,549)(7,308)(11,942)

153,946

162,051

Non-controlling interests

140,889
13,057

147,420
14,630Total comprehensive income (loss) for the period

153,946

162,051

Other comprehensive income (loss), net of income tax
Total comprehensive income (loss) for the period
Attributable to:
Owners of the Parent— 14 —

Three months ended 31 May 2019
(Millions of yen)Three months ended
31 May 2018
Profit for the period
Other comprehensive income (loss), net of income tax
Items that will not be reclassified subsequently
to profit or loss
Financial assets measured at fair value throughother comprehensive income (loss)
Total items that will not be reclassified subsequently
to profit or loss
Items that may be reclassified subsequently
to profit or loss
Net fair value gain (loss) on available-for-salefinancial assets during the period
Exchange differences on translating foreign
operations
Cash flow hedges

Three months ended
31 May 201947,60849,062

—

(169)

—

(169)

(25)

—

742
17,916—(18,760)(13)(17)

18,632(18,792)

18,632(18,961)

66,24030,101

Non-controlling interests

62,042
4,197

26,4993,601

Total comprehensive income (loss) for the period

66,24030,101

Share of other comprehensive income of associates
Total items that may be reclassified subsequently
to profit or loss
Other comprehensive income (loss), net of income tax
Total comprehensive income (loss) for the period
Attributable to:
Owners of the Parent— 15 —

(3)Interim Condensed Consolidated Statement of Changes in Equity
For the nine months ended 31 May 2018
(Millions of yen)
Other components of equity

Notes
As at 1 September 2017
Net changes during the period
Comprehensive income
Profit for the period
Other comprehensive
income/loss
Total comprehensive
income/loss
Transactions with the ownersof the Parent
Acquisition of treasury stock
Disposal of treasury stock
Dividends
10
Share-based payments
Increase in equity due
to capital increase by
consolidated subsidiary
Changes in ownershipinterests in subsidiaries
without losing control
Total transactions withthe owners of the Parent
Total net changes during
the period
As at 31 May 2018

Capitalstock
10,273Foreign
Share of other
Treasury Available- currency Cash flow comprehensive
CapitalRetainedstock,
for-sale translation hedge
income ofsurplusearnings
at costreserve
reserve
reserveassociates
14,373
698,584(15,563)2
21,8062,293—

Equityattributableto owners
Nonof the controlling
Total
Parentinterests
24,102
731,770
30,272Total
equity762,043——

148,335

—

—

—

—

—

—

148,335

12,919161,254

—

—

—

—

778

(1,966)(6,257)—(7,445)(7,445)137(7,308)——148,335—778(1,966)(6,257)—(7,445)140,889

13,057

153,946

—
—
—
—

—
1,005
—
962

—
—
(38,248)
—

(1)
116
—
—

—
—
—
—

—
—
—
—

—
—
—
—

—
—
—
—

—
—
—
—

(1)
1,121
(38,248)962——(6,579)
—

(1)
1,121
(44,828)
962

—

—

—

—

—

—

—

—

—

—

173

173

—

1,874

—

—

—

—

—

—

—

1,874

1,754

3,629

—

3,842

(38,248)

114

—

—

—

—

—

(34,291)(4,651)(38,943)—
10,273

3,842
18,216

110,086
808,670

114(15,449)

778
781(1,966)
19,840(6,257)(3,964)——(7,445)
16,656

106,597
838,368

8,405
38,678115,003
877,046— 16 —

For the nine months ended 31 May 2019
(Millions of yen)
Other components of equity

Notes
As at 1 September 2018
Net changes during
the period
Comprehensive income
Profit for the period
Other comprehensive
income (loss)
Total comprehensive income(loss)
Transactions with theowners of the Parent
Acquisition of treasury
stock
Disposal of treasury stock
Dividends
10
Share-based payments
Incorporation of a new
subsidiary
Changes in ownershipinterests in subsidiaries
without losing control
Total transactions withthe owners of the
ParentTotal net changes during
the period
As at 31 May 2019

Capitalstock
10,273Financial assets
measured
at fair value
Foreign
Share of other
Treasury through other currency Cash flow comprehensive
CapitalRetainedstock, comprehensive translation hedge
income ofsurplusearnings
at costincomereserve
reserveassociates
18,275815,146(15,429)37
15,42919,202—Equityattributableto owners
Nonof the controlling
Total
Parentinterest
34,669862,936
39,841Total
equity902,777——

158,668

—

—

—

—

—

—

158,668

15,325

173,993

—

—

—

—

(393)

(12,535)

1,681

(0)

(11,247)(11,247)(694)(11,942)——

158,668—(393)(12,535)

1,681

(0)

(11,247)

147,420

14,630162,051

—
—
—
—

—
1,322
—
933

—
—
(48,976)
—

(2)
137
—
—

—
—
—
—

—
—
—
—

—
—
—
—

—
—
—
—

—
—
—
—

(2)
1,459
(48,976)933——(8,461)
—

(2)
1,459
(57,438)
933

—

—

—

—

—

—

—

—

—

—

239

239

—

—

—

—

—

—

—

—

—

—

169

169

—

2,255

(48,976)

134

—

—

—

—

—

(46,586)(8,052)(54,638)—
10,273

2,255
20,531

109,691
924,837

134(15,294)

(393)
(355)

(12,535)
2,894

1,681
20,883(0)(0)(11,247)
23,421

100,834
963,770

6,578
46,419107,4131,010,190— 17 —

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

Cash flows from operating activities
Profit before income taxes
Depreciation and amortization
Impairment losses
Interest and dividend income
Interest expenses
Foreign exchange losses (gains)Share of profit and loss of associates accounted
for using the equity method
Losses on disposal of property, plant and equipment
Decrease in trade and other receivables
Increase in inventories
Decrease in trade and other payables
Increase (decrease) in other assets
Decrease (increase) in other liabilities

Nine months ended
31 May 2018

Nine months ended
31 May 2019

237,475
32,961
10,353(5,414)
2,072
4,764

247,21136,6292,050(8,792)
3,512
5,755

(457)
726
(32,973)
14,799(56,288)(38,783)
140,674(2,794)(480)
253(30,122)
144,649(72,600)
5,731(6,727)
6,569

Income taxes refunded

307,113
4,987(1,203)(53,036)260

333,641
7,266(2,687)(52,004)—

Net cash generated by operating activities

258,122286,216(29,282)(95,593)

30,549(22,431)(10,588)(3,436)73,427(31,846)(18,124)(5,835)

8

Others, net
Cash generated from operations
Interest and dividends income received
Interest paid
Income taxes paid

Cash flows from investing activities
Amounts deposited into bank deposits
with original maturitiesof three months or longer
Amounts withdrawn from bank deposits
with original maturities of three months or longer
Payments for property, plant and equipment
Payments for intangible assets
Payments for lease and guarantee deposits
Proceeds from collection of lease andguarantee deposits

1,978

3,081

Others, net(2,681)

1,315

Net cash used in (generated) by investing activities(35,892)(73,575)— 18 —

(Millions of yen)
Notes
Cash flows from financing activities
Proceeds from short-term loans payable
Repayment of short-term loans payable
Repayment of long-term loans payable
Repayment of redemption of bonds
Dividends paid to owners of the Parent
Capital contributions from non-controllinginterests
Dividends paid to non-controlling interests
Repayments of finance lease obligations

Nine months ended
31 May 20189
10

Others, net
Net cash used in (generated) by financing
activities
Effect of exchange rate changes on the balanceof cash held in foreign currencies
Net increase (decrease) in cash andcash equivalents
Cash and cash equivalents at the beginningof period
Cash and cash equivalents at the end of period— 19 —

Nine months ended
31 May 2019

1,778
(1,453)(1,655)—(38,217)

13,299(11,575)(2,237)(30,000)(48,949)

3,803(3,618)(3,905)138

420(8,461)(7,464)
214(43,129)(94,753)(4,543)(12,499)

174,557

105,387

683,802

999,697858,359

1,105,085

(5) 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/eng/).
The principal activities of the Company and its consolidated subsidiaries are the operations of the UNIQLO business (i.e.,casual clothing retail business operating under the “UNIQLO” brand in Japan and overseas), GU business (i.e., casual clothingretail business operating under the “GU” brand in Japan and overseas), Theory business (i.e., apparel design and retailbusiness in Japan and 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 the criteria of a “specified company” defined under Article 1–2 of the Consolidated Quarterly Financial
Statements Rules and accordingly, 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 forconsolidated financial statements, they should be read in conjunction with the Group’s annual consolidated financial
statements for the year ended 31 August 2018.
The interim condensed consolidated financial statements were approved on 12 July 2019 by Tadashi Yanai, President andCEO and Takeshi Okazaki, Group Executive Vice President and CFO.
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 2018 are applied consistently in the preparation of the 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

Title

Summary of new standards and amendments

IFRS 9Financial Instruments

Revisions to financial asset classification and measurement,
hedge accounting and impairment

IFRS 15

Revenue from Contracts with Customers

A comprehensive framework for revenue recognition(1) Application of IFRS 9: Financial Instruments① Financial instruments: Classification and measurement
The Group began classifying equity instruments that were previously classified as “Available-for-sale financial assets”
as “Financial assets measured at fair value through other comprehensive income” from the beginning of the consolidated
fiscal year ending 31 August 2019. The Group has chosen not to apply the full retrospective application of IFRS 9 on the
consolidated financial statements for the consolidated fiscal year ended 31 August 2018 in accordance with the transition
provisions set out in IFRS 9.
② Financial instruments: Impairment
The Group has changed the recognition of impairment of financial assets measured at amortized cost to recognize a loss
allowance for expected credit losses on those financial assets.
③ Financial instruments: Hedge accounting
The Group applies IFRS 9 hedge accounting standards and considers the fulfilment of specific hedge accounting
requirements under IAS 39, Financial Instruments: Recognition and Measurement, and IFRS 9 as incremental parts of aconsistent hedge accounting policy.
The application of IFRS 9 has not had a significant impact on the financial position and financial performance of the Groupfor the nine months ended 31 May 2019.

— 20 —

(2) Application of IFRS 15: Revenue from contracts with customers
The Group recognizes revenue in accordance with IFRS 15 by applying the following five-step approach:
Step 1: Identify the contract(s) with a customer
Step 2: Identify the performance obligations in the contract
Step 3: Determine the transaction price
Step 4: Allocate the transaction price to the performance obligations in the contract
Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation
The Group, as a global clothing retailer, recognizes revenue when it satisfies its performance obligation by transferring thepromised goods to the customer. An asset is transferred when the customer obtains control of that asset. In addition, theGroup recognizes revenue at the amount of the promised consideration that the customer would pay in accordance with acontract, less the sum of discounts, rebates and refunds or credits.
The application of IFRS 15 has not had a significant impact on the financial position and financial performance of theGroup for the nine months ended 31 May 2019.
4. Use of Estimates and Judgments
The preparation of the interim condensed consolidated financial statements requires management to make judgments,
estimates and assumptions that affect the application of accounting policies and the reported amounts of assets andliabilities, income and expenses. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Any effects resulting from such review ofaccounting estimates are recognized prospectively by including the effects in profit or loss in the period of the change or theperiod of the change and future periods.
Significant estimates and judgments that have significant effects on the amounts recognized in the interim condensed
consolidated financial statements are generally the same as those in the preceding consolidated fiscal year.
5. Segment Information(i) Description of reportable segments
The Group’s reportable segments are components for which discrete financial information is available and which arereviewed regularly by the Board of Directors (the “Board”) to make decisions about the allocation of resources and toassess 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— 21 —

(ii) Segment revenue and results
For the nine months ended 31 May 2018
(Millions of yen)
Reportable segments
UNIQLOJapan

UNIQLOInternational

GU

GlobalBrands

Total

Others(Note 1)

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

Revenue

704,460

716,092

166,685

114,781

1,702,020

2,129

—

1,704,149

Operatingprofit (loss)

120,057

112,418

15,080(3,549)244,006

205(5,314)

238,897

Segment
income (loss)(i.e., Profit
before income
taxes)

119,991

111,292

14,937(3,648)242,573207(5,305)

237,475

Other disclosure:
Impairment loss
(Note 3)

375

237

19

8,937

9,568

—

785

10,353(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 reportablesegments.
(Note 3) For details on Impairment losses, please refer to Note “8. Impairment Losses.”
For the nine months ended 31 May 2019
(Millions of yen)
Reportable segments
UNIQLOJapan

UNIQLOInternational

GU

GlobalBrands

Total

Others(Note 1)

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

Revenue

701,072

820,506

185,358

113,686

1,820,623

2,253

—

1,822,877

Operatingprofit (loss)

96,705

124,842

26,3184,619

252,485249(5,046)247,688

Segment
income (loss)(i.e., Profit
before income
taxes)

95,923

125,119

26,192

4,529

251,765

250(4,803)

247,211

Other disclosure:
Impairment
loss (Note 3)

423

1,043

206

134

1,807

—

243

2,050

(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 reportablesegments.
(Note 3) For details on Impairment losses, please refer to Note “8. Impairment Losses.”— 22 —

For the three months ended 31 May 2018
(Millions of yen)
Reportable segments
GlobalBrands

Total

Others(Note 1)

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

UNIQLOJapan

UNIQLOInternational

Revenue

210,785

208,635

60,82436,332516,578806—

517,384

Operatingprofit (loss)

31,32731,655

5,925

2,103

71,01188(2,694)

68,404

Segment
income (loss)(i.e., Profit
before income
taxes)

31,77832,251

5,873

2,070

71,97489

215

72,279Other disclosure:
Impairment
loss (Note 3)

332

51

—

29

413

—

—

413

GU

(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 reportablesegments.
(Note 3) For details on Impairment losses, please refer to Note “8. Impairment Losses.”
For the three months ended 31 May 2019
(Millions of yen)
Reportable segments
GlobalBrands

Total

Others(Note 1)

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

UNIQLOJapan

UNIQLOInternational

Revenue

209,728

240,500

68,16335,941

554,333

847—

555,180

Operatingprofit (loss)

28,96336,356

12,195

1,494

79,010139(4,402)74,747

Segment
income (loss)(i.e., Profit
before income
taxes)

28,03937,734

12,154

1,458

79,387139(6,528)72,997

Other disclosure:
Impairment
loss (Note 3)

179

(65)

95

85

295

—

243

538

GU

(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 reportablesegments.
(Note 3) For details on Impairment losses, please refer to Note “8. Impairment Losses.”— 23 —

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

Nine months ended
31 May 2018

Nine months ended
31 May 2019

4,082

5,046

7. Property, Plant and Equipment
The breakdown of cost of property, plant and equipment at each reporting date is as follows:(Millions of yen)
As at
31 August 2018
Buildings and structures
Furniture, equipment and vehicles
Land
Construction in progress
Lease assets
Total

As at
31 May 2019

94,67314,143
1,927
9,550
34,782

97,40916,7281,927
6,716
35,843155,077

158,627

8. Impairment Losses
The breakdown of Impairment losses for each reporting period is as follows:
Nine months ended 31 May 2018
During the nine months ended 31 May 2018, the Group recognized impairment losses that amounted to 10,353 million
yen on goodwill owned by the Comptoir des Cotonniers business and a trademark owned by the Helmut Lang brandunder Theory business, because it is not expected to earn profit that was estimated initially. Those impairment losses areincluded in “other expenses” on the consolidated statement of profit or loss.
(1) Impairment losses related to the COMPTOIR DES COTONNIERS businessOf the total impairment losses that amounted to 10,353 million yen, 7,792 million yen represented an impairment loss
for goodwill owned by the COMPTOIR DES COTONNIERS business.
(2) Impairment losses related to the Helmut Lang brand under the Theory businessOf the total impairment losses that amounted to 10,353 million yen, 1,039 million yen represented an impairment loss
for a trademark owned by the Helmut Lang brand.
Nine months ended 31 May 2019
In overseas UNIQLO operations and domestic UNIQLO operations, impairment losses were recognised to exist mainly
due to a drop in the profitability of store assets and other such factors, and a major impairment loss was not recorded.
9. 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 nine months ended 31 May 2019.

— 24 —

10. Dividends
The total amount of dividends paid was as follows:
For the nine months ended 31 May 2018
Total dividends(Millions of yen)

Resolution

Dividends per share(Yen)

Meeting of the Board on 2 November 2017

17,847175

Meeting of the Board on 12 April 2018

20,401200

Dividends were declared on 2 November 2017 and paid on 10 November 2017. The effective date of the dividend was forshareholders as at 31 August 2017.
Dividends were declared on 12 April 2018 and paid on 11 May 2018. The effective date of the dividend was forshareholders as at 28 February 2018.
For the nine months ended 31 May 2019
Total dividends(Millions of yen)

Resolution

Dividends per share(Yen)

Meeting of the Board on 2 November 2018

24,484240

Meeting of the Board on 11 April 201924,492

240

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.
Dividends were declared on 11 April 2019 and paid on 13 May 2019. The effective date of the dividend was forshareholders as at 28 February 2019.
11. Revenue
The Group performs global retail clothing operations through both physical stores and e-commerce channels. The
following is a breakdown of total revenue by major regional market operation.
Nine months ended 31 May 2019
Revenue(Millions of yen)
Japan
Greater China
Other parts of Asia & Oceania
North America & Europe

Percent of Total

701,072
402,594248,258
169,653

38.5
22.1
13.6
9.3

1,521,578

83.5

GU (Note 2)

185,358

10.2

Global Brands (Note 3)

113,686

6.2

UNIQLO (Note 1)

Others (Note 4)
Total

2,253

0.1

1,822,877

100.0(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
North America & Europe:
United States of America, Canada, United Kingdom, France, Russia, Germany,
Belgium, Spain, Sweden, the Netherlands, Denmark(Note 2) Main national and regional market: Japan(Note 3) Main national and regional markets: North America, Europe, Japan(Note 4) The “Others” category includes real estate leasing operations.

— 25 —

12. Selling, General and Administrative Expenses
The breakdown of selling, general and administrative expenses for each reporting period is as follows:(Millions of yen)
Nine months ended
31 May 2018

Nine months ended
31 May 2019

Selling, general and administrative expenses
Advertising and promotion
Rental expenses
Depreciation and amortization
Outsourcing
Salaries
Others

55,062
147,979
32,961
29,058
209,622
123,333

58,218
153,31236,62932,867221,237
139,831

Total

598,017642,096

13. Other Income and Other Expenses
The breakdown of other income and other expenses for each reporting period is as follows:(Millions of yen)
Nine months ended
31 May 2018

Nine months ended
31 May 2019

Other income
Others

2,124

3,469

2,124

3,469

Nine months ended
31 May 2018

Nine months ended
31 May 2019

1,577
726
10,353
3,403

2,869
253
2,050
1,669

16,060

6,842

Total

(Millions of yen)

Other expenses
Foreign exchange losses (Note)
Loss on retirement of property, plant and equipment
Impairment losses
Others
Total(Note)

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

14. 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
Interest income
Others
Total

Nine months ended
31 May 2018

Nine months ended
31 May 2019

5,413
0

8,740
51

5,414

8,792
(Millions of yen)

Finance costs
Foreign exchange losses (Note)
Interest expenses
Total(Note)

Nine months ended
31 May 2018

Nine months ended
31 May 2019

4,764
2,072

5,755
3,512

6,836

9,268

Currency adjustments incurred in the course of non-operating transactions are included in “finance costs.”— 26 —

15. Earnings Per Share
Nine months ended 31 May 2018

Nine months ended 31 May 2019

Equity per share attributable to ownersof the Parent (Yen)

8,218.13

Equity per share attributable to ownersof the Parent (Yen)

9,443.57

Basic earnings per share (Yen)

1,454.29

Basic earnings per share (Yen)

1,554.94

Diluted earnings per share (Yen)

1,451.77

Diluted earnings per share (Yen)

1,552.35(Note) The basis for calculation of basic earnings per share and diluted earnings per share is as follows:
Nine months ended
31 May 2018

Nine months ended
31 May 2019

148,335

158,668

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)——

148,335

158,668

101,998,432

102,041,403

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)——

Increase in number of common stock (Shares)

176,805170,248

Number of share subscription rights included in increase

176,805170,248Three months ended 31 May 2018

Three months ended 31 May 2019

Basic earnings per share (Yen)433.13

Basic earnings per share (Yen)

437.41

Diluted earnings per share (Yen)432.42

Diluted earnings per share (Yen)

436.69(Note) The basis for calculation of basic earnings (loss) per share and diluted earnings per share is as follows:
Three months ended Three months ended
31 May 2018
31 May 2019
Basic earnings (loss) 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)

44,184

44,639——44,184

44,639102,011,369

102,053,519

Diluted earnings (loss) per share for the period
Adjustment to profit (Millions of yen)——

Increase in number of common stock (Shares)

166,934

167,118

Number of share subscription rights included in increase

166,934

167,118— 27 —

16. 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 2018
Carrying amounts

As at 31 May 2019

Fair value

Carrying amounts

Fair value

Financial assets:
Security deposits and guarantees

61,75262,25362,66864,205

Total

61,75262,25362,66864,205Long-term borrowings (Note)

8,884

8,924

6,840

6,840

Corporate bonds (Note)

499,020

501,708

469,143474,251

Lease obligations (Note)

35,64335,52837,41037,335543,548546,161

513,394

518,426

Financial liabilities:

Total(Note) The above includes the outstanding balance of borrowings due within one year.
The fair values of current financial assets, current financial liabilities and non-current financial assets, which are measured
by amortized 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 and finance lease obligations is classified by term and calculated on the basis of
the current value, applying a discount rate that takes into account the time remaining to maturity and credit risk.
The fair value measurements of corporate bonds, long-term borrowings and lease obligations are classified as Level 2.
The following tables illustrate the fair value measurement hierarchy of the Group’s financial instruments. All assets andliabilities 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
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
When multiple inputs are used to measure fair value, the fair value level is determined based on the input with the lowest
level classification in the overall fair value assessment.

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The following tables illustrate the fair value measurement hierarchy of the Group’s financial instruments:(Millions of yen)
As at 31 August 2018

Level 1

Available-for-sale financial assets

Level 2

Level 3

Total

2,513

—

—

2,513

Financial instruments at fair value throughprofit or loss (“FVTPL”)

—

136

—

136

Foreign currency forward contracts designatedas hedging instruments—

28,464—28,4642,513

28,601—

31,114

Total(Millions of yen)
As at 31 May 2019

Level 1

Financial assets measured at fair value
through other comprehensive income

Level 2

Level 3

Total

1,795

—

173

1,968

Financial instruments at FVTPL

—

0

—

0

Foreign currency forward contracts designatedas hedging instruments—

34,268—34,268

1,795

34,268173

36,237Total

For 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 using inputs such as interest rates, yield curves, currency rates
and volatility in comparable instruments.
Most of the financial assets classified as Level 3 are unlisted shares. The fair value of unlisted shares is measured on aquarterly basis by management in accordance with Group accounting policy using the latest available data.
The Company did not have any significant changes in Level 3 fair value measurement, that were resulted from Level 3purchases, sales, issuance or settlement, nor any transfer between Levels 1, 2, or 3.
17. Commitments for Expenditures
The Group had the following commitments at each reporting date:(Millions of yen)
As at
31 August 2018
Commitment for the acquisition of property, plant and equipment
Commitment for the acquisition of intangible assets
Total

As at
31 May 2019

10,046
1,461

8,815
5,002

11,50813,818

18. Subsequent Events
Not applicable.

2. Others
Dividends
The Company resolved to pay dividends from retained earnings at the meeting of the Board of Directors convened on 11
April 2019.
The total amount of dividends paid and amount per share are stated under “Financial section 1. Interim Condensed
Consolidated Financial Statements, Notes to the Interim Condensed Consolidated Financial Statements 10. Dividends”.

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(TRANSLATION)
INDEPENDENT ACCOUNTANT’S REVIEW REPORT
July 12, 2019

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
statement of financial position of FAST RETAILING CO., LTD. (the “Company”) and its consolidated subsidiaries (collectively,
the “Group”) as of 31 May 2019 and the related interim condensed consolidated statements of profit or loss and statement ofcomprehensive income for the three-month and nine-month periods then ended, statement of changes in equity and cash flows
for the nine-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 in conformity 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 suchinternal 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 ourreview. 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, andapplying analytical procedures and other quarterly review procedures. A review is substantially less in scope than an audit
conducted in accordance with auditing 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 the Company and its consolidated subsidiaries as of 31 May 2019, and the condensed consolidated results of theiroperations for the three-month and nine-month periods then ended, and their cash flows for the nine-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 theprovisions of the Certified Public Accountants Act.
The above represents a translation, for convenience only, of the original report issued in the Japanese language.

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