FAST RETAILING CO., LTD.
迅銷有限公司First Quarterly Report 2015/16
2015.9.1–2015.11.30
Stock Code: 6288

Contents
Corporate Profile

2

Financial Highlights

3Management Discussion and Analysis

5

Information about the Reporting Entity

8

Financial Section

14

Interim Condensed Consolidated Statement of
Financial Position

15

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

16Interim Condensed Consolidated Statement of
Changes in Equity

18

Interim Condensed Consolidated Statement of Cash Flows20

Notes to the Interim Condensed Consolidated
Financial Statements

22

Others28

Report on Review of Interim Condensed Consolidated
Financial Statements

29

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

TermFirst Quarterof
54th YearFirst Quarterof
55th Year54th Year

Accounting period

Three months
ended
30 November
2014

Three months
ended
30 November
2015

Year ended
31 August2015

Revenue (Millions of yen)

479,543

520,303

1,681,781

Operating profit (Millions of yen)

91,37075,921

164,463

Profit before income taxes (Millions of yen)

106,745

77,666

180,676

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

68,82648,024110,027

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

157,780

45,012

163,871

Equity attributable to owners of the parent (Millions of yen)
Total assets (Millions of yen)

762,414779,368

750,937

1,281,057

1,264,584

1,163,706

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

675.30471.07

1,079.42

Diluted earnings per share for the period (year) (Yen)674.61

470.481,078.08

59.5

61.6

64.5

Net cash from operating activities (Millions of yen)

71,88258,501

134,931

Net cash used in investing activities (Millions of yen)

(19,207)(7,178)(73,145)

Net cash used in financing activities (Millions of yen)

(17,194)(21,478)(41,784)

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

371,546

387,537

355,212

Ratio of equity attributable to owners of
the parent to total assets (%)(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 three months ended 30 November 2015.
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 30 November 2015.
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 quarter of fiscal 2016, or the threemonths from 1 September to 30 November 2015. Consolidated revenue reached ¥520.3 billion (+8.5% year-on-year),while consolidated operating profit totaled ¥75.9 billion (-16.9% year-on-year), consolidated profit before income taxes
stood at ¥77.6 billion (-27.2% year-on-year), and profit attributable to owners of the parent totaled ¥48.0 billion (-30.2%
year-on-year). Breaking these first-quarter results down into the three business segments, Global Brands reported a risein both revenue 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. In addition, the amount of foreign exchange gains recorded under otherincome and expenses, and net finance income declined by ¥18.9 billion in the first quarter of fiscal 2016 compared to thefirst quarter of fiscal 2015, when the yen depreciated considerably. That was the main factor underlying the ¥29.0 billion
fall in consolidated profit before income taxes.
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, boosting store numbers in each country where
we operate, opening global flagship stores and large-format stores in major cities around the world, and offering exciting
joint collections with well-known designers from around the world, such as Ines de la Fressange. This strategy is designed
to both boost awareness and visibility of the UNIQLO brand and strengthen our global operational base. We are also
actively promoting our GU brand by accelerating the opening of 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 quarter of fiscal 2016, reporting a year-on-year decline in bothrevenue and profit (revenue: ¥230.9 billion (-0.7% year-on-year), operating profit: ¥44.8 billion (-12.4% year-on-year)).
While online sales expanded 23.2% year-on-year, same-store sales declined 2.3%, resulting the fall in revenue. In
September and October, fall winter items such as cashmere sweaters, merino sweaters, gaucho pants and wide pants
got off to a great start and sales proved strong, pushing same-stores sales higher as a result. However, the unexpected
heatwave in November stifled demand for winter items, and led to a sharp drop in revenue. On the profit side, hefty
discounting of winter items in November squeezed the first-quarter gross profit margin, while lower-than-expected
first-quarter sales inflated the selling, general and administrative expenses to revenue ratio. The number of directlyrun UNIQLO Japan stores, excluding 38 franchise outlets, totaled 806 stores at the end of November 2015. While that
represents a net decrease of 18 stores year-on-year, 10 of these stores were converted from directly-run stores to new
employee-franchise outlets.
UNIQLO International
UNIQLO International’s also fell short of target in the first quarter, reporting a rise in revenue but a decline in profit(revenue: ¥196.9 billion (+17.2% year-on-year), operating profit: ¥20.8 billion (-14.2% year-on-year)). Unseasonal
warm winter weather around the globe adversely impacted same-store sales at UNIQLO Greater China (encompassing
operations in mainland China, Hong Kong and Taiwan), UNIQLO South Korea and UNIQLO USA in particular, resulting ina lower-than-expected first-quarter performance and declining profits in all three of these areas. Meanwhile, UNIQLO
Europe reported higher-than-forecast gains in both revenue and profit, and UNIQLO Southeast Asia and Oceania reported
a steady operating profit, as expected. New store openings proceeded as planned, with a net 66 stores opened during thefirst quarter, mainly in Greater China and Southeast Asia. As a result, the total number of UNIQLO International stores had
expanded by 169 year-on-year to 864 stores as of 30 November 2015. Fifteen years after the first UNIQLO store outsideof Japan was opened in London in fall 2001, the number of UNIQLO International stores finally overtook the number of
UNIQLO Japan stores in November 2015. UNIQLO USA continued to generate an operating loss, but we now have a new—5—

strategy focusing on new store openings in major US cities and expanding e-commerce sales. As part of that strategy, inthe first quarter we opened a 4,100m2 flagship store in Chicago, the first such store in the Midwest, as well as a store in
Boston on the East Coast in order to boost awareness of the UNIQLO brand. In Europe, our first UNIQLO store in Belgium,
which was opened in Antwerp in October, got off to a favorable start.
Global Brands
Global Brands exceeded expectations in the first quarter by reporting a 17.4% year-on-year gain in revenue to ¥91.8
billion, and a 29.7% year-on-year gain in operating profit to ¥12.4 billion. Within the Global Brands segment, our lowpriced GU fashion casualwear label reported significant rises in both revenue and profit that surpassed our initial
forecasts. GU reported double-digit growth in same-store sales on the back of strong sales of heavily advertised campaign
items such wide pants, baggy sweaters and knitted bottoms. Meanwhile, our Theory fashion brand and J Brand premium
denim label both fell slightly short of target when they reported a decline in profits. Our France-based Comptoir desCotonniers and Princesse tam.tam labels reported lower-than-expected sales and a decline in profit, after the November
terrorist attacks in Paris forced some stores to close temporarily.
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.
To improve the work environment throughout the entire supply chain, we implemented the Work Environment
Monitoring program at partner manufacturing facilities in 2004. We also began monitoring working conditions andthe environmental impact of our partner fabric manufacturers, and had introduced monitoring procedures at fabricmanufacturers accounting for 70% of UNIQLO’s production output as of September 2015. Moreover, as part of our efforts
to make our operations more sustainable, we joined the Sustainable Apparel Coalition (SAC), an organization that strives
to reduce the environmental impact of apparel products, and the Fair Labor Association (FLA), an organization that strives
to protect the rights of factory workers.
Since 2011 we have also been providing support for refugees through a global partnership with the United Nations HighCommissioner for Refugees (UNHCR). In November 2015 we held a joint press conference with the UNHCR to announce
our commitment to provide US$10 million in funds to expand our refugee employment program, and provide emergency
clothing relief. To broaden our efforts to provide clothing for refugees, we launched the 10 Million Ways to HELP projectin October as a joint effort of UNIQLO and GU. We aim to collect 10 million clothing items by stepping up our collection
efforts through our All Product Recycling Initiative and by enlisting the support of FR Group employees and our business
partners.
To disseminate information on the plight of refugees, in November we ran a feature article on the global refugee problem
and the All Product Recycling Initiative in The Power of Clothing Vol.15, a CSR booklet which we distribute at UNIQLO
stores in Japan.
(2)

Financial Positions
Total assets as at 30 November 2015 were ¥1,264.5 billion, which was an increase of ¥100.8 billion relative to the endof the preceding consolidated fiscal year. The principal factors were an increase of ¥63.6 billion in trade and otherreceivables, an increase of ¥32.3 billion in cash and cash equivalents and an increase of ¥12.8 billion in inventories.
Total liabilities as at 30 November 2015 were ¥459.6 billion, which was an increase of ¥70.7 billion relative to the end of
the preceding consolidated fiscal year. The principal factor was an increase of ¥76.9 billion in trade and other payables.
Total net assets as at 30 November 2015 were ¥804.9 billion, which was an increase of ¥30.1 billion relative to the end of
the preceding consolidated fiscal year. The principal factor was an increase of ¥30.1 billion in retained earnings.

—6—

(3)

Cash Flows Information
Cash and cash equivalents as at 30 November 2015 had increased by ¥15.9 billion from the three months ended 30
November 2014, to ¥387.5 billion.
Net cash from operating activities for the three months ended 30 November 2015 was ¥58.5 billion, which was a decreaseof ¥13.3 billion (-18.6 % year-on-year) from the three months ended 30 November 2014. The principal factors were ¥77.6
billion in profit before income taxes (a decrease of ¥29.0 billion from the three months ended 30 November 2014), ¥1.7
billion in foreign exchange gains (a decrease of ¥12.9 billion from the three months ended 30 November 2014), and ¥34.0
billion in income taxes paid (an increase of ¥3.7 billion from the three months ended 30 November 2014).
Net cash used in investing activities for the three months ended 30 November 2015 was ¥7.1 billion, which was adecrease of ¥12.0 billion (-62.6 % year-on-year) from the three months ended 30 November 2014. The principal factors
were ¥6.0 billion for decrease in bank deposits with maturity over 3 months (an increase of ¥5.2 billion from the threemonths ended 30 November 2014), and ¥11.1 billion for purchases of property, plant and equipment (a decrease of ¥4.0
billion from the three months ended 30 November 2014).
Net cash used in financing activities for the three months ended 30 November 2015 was ¥21.4 billion, which was anincrease of ¥4.2 billion (+24.9 % year-on-year) from the three months ended 30 November 2014. The principal factors
were ¥17.8 billion for cash dividends paid (an increase of ¥2.5 billion from the three months ended 30 November 2014)and ¥2.5 billion for net decrease in short-term loans payable (an increase of ¥1.9 billion from the three months ended 30
November 2014).

(4)

Operational and Financial Assignment
There have been no important changes during the three months ended 30 November 2015 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 three months ended 30 November 2015.
<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 Chicago City Illinois,
Ave
U.S.A.

October 2015

UNIQLO EUROPE LIMITEDUNIQLOInternational Stores

Meir 67/69,
Antwerp

October 2015

—7—

Antwerp City,
Belgium.

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 30 November 2015

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

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

Details

First section of the Tokyo
Stock Exchange and theMain board of The Stock
Exchange of Hong 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
The Company has instituted a stock option program that grants rights to acquire new shares pursuant to the Companies
Act of Japan. Share subscription rights issued in the three months ended 30 November 2015 are as follows:(i)

6th Share subscription rights A type

Resolution date

8 October 2015

Number of stock options (Shares)

2,847

Number of share subscription rights for treasury stock(Shares)―

Type of shares to be issued upon exercise of sharesubscription rights

Common Stock

Number of shares to be issued upon exercise ofshare subscription rights (Shares)

2,847

Amount to be paid upon exercise of share subscription rights
(Yen)

1

Exercise period of share subscription rights

From 13 November 2018
To 12 November 2025

Fair value on the grant date and amount of paid-in capitalper share upon exercise of share subscription rights (Yen)

Issue price:
Paid-in capital:

Exercise conditions of share subscription rights

If a holder of share subscription rights waives the right toacquire shares, the share subscription rights shall be
forfeited and may not be exercised.

Matters pertaining to transfer of share subscription rights

Any acquisition of share subscription rights by transfer shallrequire an authorizing resolution from the Boardof Directors.

Matters pertaining to substitute payments

45,65822,829―Matters pertaining to issuing of share subscription rights
in conjunction with reorganization(Notes)—8—

(Notes) Upon any reorganization of the Company (collectively referred to as “Reorganization”) consisting of merger (limited tocases where the Company becomes extinct thereby), absorption-type company split or incorporation-type company
split (in each event, limited to cases where the Company is the entity resulting from the company split), or exchangeor transfer of shares (in each event, limited to cases where the Company becomes a wholly-owned subsidiary),
parties holding share subscription rights in existence immediately preceding the effective date of such Reorganization(hereinafter referred to as “Outstanding Share Subscription Rights”) shall, in each applicable case, be issued sharesubscription rights for shares of the resulting company as prescribed in subparagraphs (a)-(e) of Article 236(1)viii of
the Companies Act of Japan (hereinafter referred to as the “Company Resulting From Reorganization”). In such event,
any Outstanding Share Subscription Rights shall lapse and the Company Resulting From Reorganization shall issue newshare subscription rights; provided, however, that terms and conditions stipulating that the Company Resulting From
Reorganization shall issue share subscription rights that prescribe the matters stated below shall be included in any
absorption merger agreement, new merger agreement, absorption-type company split agreement, incorporation-typecompany split plan, share exchange agreement or transfer of shares plan.
1.
Number of share subscription rights to be issued by the Company Resulting From Reorganization:
Each holder of Outstanding Share Subscription Rights shall be issued the same number thereof.
2.
Type of shares of the Company Resulting From Reorganization underlying the share subscription rights:
Common stock of the Company Resulting From Reorganization.
3.
Number of shares of the Company Resulting From Reorganization underlying the share subscription rights:
A proposal stating the conditions for Reorganization and the like shall include a finalized statement of the type andnumber of shares underlying the above-mentioned share subscription rights.
4.
Value of property to be incorporated upon exercise of the share subscription rights:
The value of property to be incorporated upon exercise of share subscription rights that are issued shall be theamount obtained by multiplying the exercise price after reorganization prescribed below by the number of sharesof the Company Resulting From Reorganization underlying the share subscription rights that have been finalized asstated in No. 3. above. The exercise price after Reorganization shall be 1 yen per share of the Company Resulting
From Reorganization that can be issued upon exercise of each share subscription rights that is issued.
5.
Period during which share subscription rights can be exercised:
The period from the earlier of either the first day of the period during which share subscription rights can be
exercised as prescribed above or the day on which a Reorganization takes effect through the final day of theperiod during which share subscription rights can be exercised as prescribed above.
6.
Matters pertaining to the increase of capital and capital reserve resulting from the issuance of shares upon
exercise of the share subscription rights:
To be determined in order to align with the conditions applicable to the subject share subscription rights.
7.
Restrictions on acquisition of share subscription rights by transfer:Any acquisition of share subscription rights by transfer shall require an authorizing resolution from the Board of
Directors of the Company Resulting From Reorganization.
8.
Terms and conditions for acquisition of share subscription rights:
To be determined in order to align with the conditions applicable to the subject share subscription rights.
9.
Conditions for exercise of share subscription rights:
To be determined in order to align with the conditions applicable to the subject share subscription rights.

—9—

(ii)

6th Share subscription rights B type

Resolution date

8 October 2015

Number of stock options (Shares)

25,389Number of share subscription rights for treasury stock(Shares)―

Type of shares to be issued upon exercise of sharesubscription rights

Common Stock

Number of shares to be issued upon exercise ofshare subscription rights (Shares)

25,389Amount to be paid upon exercise of share subscription rights
(Yen)

1

Exercise period of share subscription rights

From 13 December 2015
To 12 November 2025

Fair value on the grant date and amount of paid-in capitalper share upon exercise of share subscription rights (Yen)

Issue price:
Paid-in capital:

Exercise conditions of share subscription rights

If a holder of share subscription rights waives the right toacquire shares, the share subscription rights shall be
forfeited and may not be exercised.

Matters pertaining to transfer of share subscription rights

Any acquisition of share subscription rights by transfer shallrequire an authorizing resolution from the Boardof Directors.

Matters pertaining to substitute payments

46,14823,074―

Matters pertaining to issuing of share subscription rights
in conjunction with reorganization(Notes)(Notes) Upon any reorganization of the Company (collectively referred to as “Reorganization”) consisting of merger (limited tocases where the Company becomes extinct thereby), absorption-type company split or incorporation-type company
split (in each event, limited to cases where the Company is the entity resulting from the company split), or exchangeor transfer of shares (in each event, limited to cases where the Company becomes a wholly-owned subsidiary),
parties holding share subscription rights in existence immediately preceding the effective date of such Reorganization(hereinafter referred to as “Outstanding Share Subscription Rights”) shall, in each applicable case, be issued sharesubscription rights for shares of the resulting company as prescribed in subparagraphs (a)-(e) of Article 236(1)viii of
the Companies Act of Japan (hereinafter referred to as the “Company Resulting From Reorganization”). In such event,
any Outstanding Share Subscription Rights shall lapse and the Company Resulting From Reorganization shall issue newshare subscription rights; provided, however, that terms and conditions stipulating that the Company Resulting From
Reorganization shall issue share subscription rights that prescribe the matters stated below shall be included in any
absorption merger agreement, new merger agreement, absorption-type company split agreement, incorporation-typecompany split plan, share exchange agreement or transfer of shares plan.
1.
Number of share subscription rights to be issued by the Company Resulting From Reorganization:
Each holder of Outstanding Share Subscription Rights shall be issued the same number thereof.
2.
Type of shares of the Company Resulting From Reorganization underlying the share subscription rights:
Common stock of the Company Resulting From Reorganization.
3.
Number of shares of the Company Resulting From Reorganization underlying the share subscription rights:
A proposal stating the conditions for Reorganization and the like shall include a finalized statement of the type andnumber of shares underlying the above-mentioned share subscription rights.
4.
Value of property to be incorporated upon exercise of the share subscription rights:
The value of property to be incorporated upon exercise of share subscription rights that are issued shall be theamount obtained by multiplying the exercise price after reorganization prescribed below by the number of sharesof the Company Resulting From Reorganization underlying the share subscription rights that have been finalized asstated in No. 3. above. The exercise price after Reorganization shall be 1 yen per share of the Company Resulting
From Reorganization that can be issued upon exercise of each share subscription rights that is issued.
5.
Period during which share subscription rights can be exercised:
The period from the earlier of either the first day of the period during which share subscription rights can be
exercised as prescribed above or the day on which a Reorganization takes effect through the final day of theperiod during which share subscription rights can be exercised as prescribed above.

— 10 —

6.

7.

8.
9.

(iii)

Matters pertaining to the increase of capital and capital reserve resulting from the issuance of shares upon
exercise of the share subscription rights:
To be determined in order to align with the conditions applicable to the subject share subscription rights.
Restrictions on acquisition of share subscription rights by transfer:Any acquisition of share subscription rights by transfer shall require an authorizing resolution from the Board of
Directors of the Company Resulting From Reorganization.
Terms and conditions for acquisition of share subscription rights:
To be determined in order to align with the conditions applicable to the subject share subscription rights.
Conditions for exercise of share subscription rights:
To be determined in order to align with the conditions applicable to the subject share subscription rights.

6th Share subscription rights C type

Resolution date

8 October 2015

Number of stock options (Shares)

6,072

Number of share subscription rights for treasury stock(Shares)―

Type of shares to be issued upon exercise of sharesubscription rights

Common Stock

Number of shares to be issued upon exercise ofshare subscription rights (Shares)

6,072

Amount to be paid upon exercise of share subscription rights
(Yen)

1

Exercise period of share subscription rights

13 November 2018

Fair value on the grant date and amount of paid-in capitalper share upon exercise of share subscription rights (Yen)

Issue price: 46,841
Paid-in capital: 23,420

Exercise conditions of share subscription rights

If a holder of share subscription rights waives the right toacquire shares, the share subscription rights shall be
forfeited and may not be exercised.

Matters pertaining to transfer of share subscription rights

Any acquisition of share subscription rights by transfer shallrequire an authorizing resolution from the Boardof Directors.

Matters pertaining to substitute payments―

Matters pertaining to issuing of share subscription rights
in conjunction with reorganization(Notes)(Notes) Upon any reorganization of the Company (collectively referred to as “Reorganization”) consisting of merger (limited tocases where the Company becomes extinct thereby), absorption-type company split or incorporation-type company
split (in each event, limited to cases where the Company is the entity resulting from the company split), or exchangeor transfer of shares (in each event, limited to cases where the Company becomes a wholly-owned subsidiary),
parties holding share subscription rights in existence immediately preceding the effective date of such Reorganization(hereinafter referred to as “Outstanding Share Subscription Rights”) shall, in each applicable case, be issued sharesubscription rights for shares of the resulting company as prescribed in subparagraphs (a)-(e) of Article 236(1)viii of
the Companies Act of Japan (hereinafter referred to as the “Company Resulting From Reorganization”). In such event,
any Outstanding Share Subscription Rights shall lapse and the Company Resulting From Reorganization shall issue newshare subscription rights; provided, however, that terms and conditions stipulating that the Company Resulting From
Reorganization shall issue share subscription rights that prescribe the matters stated below shall be included in any
absorption merger agreement, new merger agreement, absorption-type company split agreement, incorporation-typecompany split plan, share exchange agreement or transfer of shares plan.
1.
Number of share subscription rights to be issued by the Company Resulting From Reorganization:
Each holder of Outstanding Share Subscription Rights shall be issued the same number thereof.
2.
Type of shares of the Company Resulting From Reorganization underlying the share subscription rights:
Common stock of the Company Resulting From Reorganization.
3.
Number of shares of the Company Resulting From Reorganization underlying the share subscription rights:
A proposal stating the conditions for Reorganization and the like shall include a finalized statement of the type andnumber of shares underlying the above-mentioned share subscription rights.

— 11 —

4.

5.

6.

7.

8.
9.

(3)

Value of property to be incorporated upon exercise of the share subscription rights:
The value of property to be incorporated upon exercise of share subscription rights that are issued shall be theamount obtained by multiplying the exercise price after reorganization prescribed below by the number of sharesof the Company Resulting From Reorganization underlying the share subscription rights that have been finalized asstated in No. 3. above. The exercise price after Reorganization shall be 1 yen per share of the Company Resulting
From Reorganization that can be issued upon exercise of each share subscription rights that is issued.
Period during which share subscription rights can be exercised:
The period from the earlier of either the day on which share subscription rights can be exercised as prescribedabove or the day on which a Reorganization takes effect.
Matters pertaining to the increase of capital and capital reserve resulting from the issuance of shares upon
exercise of the share subscription rights:
To be determined in order to align with the conditions applicable to the subject share subscription rights.
Restrictions on acquisition of share subscription rights by transfer:Any acquisition of share subscription rights by transfer shall require an authorizing resolution from the Board of
Directors of the Company Resulting From Reorganization.
Terms and conditions for acquisition of share subscription rights:
To be determined in order to align with the conditions applicable to the subject share subscription rights.
Conditions for exercise of share subscription rights:
To be determined in order to align with the conditions applicable to the subject share subscription rights.

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

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

1 September 2015 to
30 November 2015—

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 threemonths ended 30 November 2015.

(6)

Principal Shareholders
There are no items to state, as the accounting period under review is the first quarter accounting period.

(7)

Voting Rights
Concerning “Voting Rights” as at the end of the first quarterly accounting period ended 30 November 2015, it has notbeen possible to confirm and state the details entered in the register of shareholders. Therefore, the stated details are
based on the register of shareholders as of the immediately preceding record date (31 August 2015).

— 12 —

(i)Shares issued
As at 30 November 2015
Number of shares(Shares)Number of voting rights(Number)

Remarks

Non-voting shares

—

—

—

Shares subject to restrictions on voting rights(treasury stock)

—

—

—

—

—

—

Shares with full voting rights(treasury stock, etc.)(Shares held astreasury stock)
Common stock
4,128,200——

Shares with full voting rights (others)

Common stock
101,898,800

Class

Shares subject to restrictions on voting rights(others)

Common stock

Shares less than one unit

46,656

Total number of shares issued

106,073,656

Total number of voting rights of allshareholders—(Notes)(ii)

1,018,988—(Note) 1(Notes) 1,2——
1,018,988—

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 55 shares of treasury stock held by the Company.

Treasury StockAs at 30 November 2015

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

2.

Holder’s address

717-1 Sayama,
Yamaguchi City,
Yamaguchi—

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

Total numberof shares held
(Shares)

Percentage of
total number ofshares issued (%)

4,128,200—

4,128,200

3.89

4,128,200—

4,128,200

3.89

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 three months ended 30 November 2015.

— 13 —

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 three months ended 30 November 2015 are reviewed by Ernst & Young
ShinNihon LLC.

— 14 —

(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
OthersTotal current assets
Non-current assets
Property, plant and equipment
Goodwill
Other intangible assets
Non-current financial assets
Deferred tax assets
OthersTotal non-current assets
Total assets
Liabilities and equity
LIABILITIESCurrent liabilities
Trade and other payables
Derivative financial liabilities
Other current financial liabilities
Income taxes payable
Provisions
OthersTotal current liabilities
Non-current liabilities
Non-current financial liabilities
Provisions
Deferred tax liabilities
OthersTotal 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

As at 31 August 2015

355,21244,77722,593260,006
157,490
18,564
15,74813
6
13874,394
7

13

13
13

13

— 15 —

As at 30 November 2015

387,537
108,430
15,838272,903148,331

19,15016,717968,910

129,340
27,16540,99175,940
11,107
4,766
289,311
1,163,706

134,449

11,3604,680
295,674
1,264,584

181,577100
15,471
36,763
22,61535,714292,242

258,52298
15,16030,18415,01944,879363,863

25,513
10,20347,272
13,66896,658
388,901

25,693
10,55944,88914,63995,782459,646

10,273
11,524
602,623(15,699)
142,214750,937
23,867
774,804
1,163,706

10,273
12,770632,808(15,686)
139,201
779,368
25,569804,938

27,31841,00476,8601,264,584

(2)Interim Condensed Consolidated Statement of Profit or Loss and Interim Condensed Consolidated Statement ofComprehensive Income
Interim Condensed Consolidated Statement of Profit or Loss
Three months ended 30 November 2015
(Millions of yen)
Notes

Three months ended
30 November 2014

Revenue

479,543(226,266)

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

910

Other expenses

10

Operating profit
Finance income

11

Finance costs

11

253,277(168,009)
6,732
(629)
91,37015,643(268)

Profit before income taxes
Income taxes

106,745(33,948)

Profit for the period

72,796

Attributable to:
Owners of the parent

Three months ended
30 November 2015

520,303(254,033)
266,269(190,680)
795(463)
75,921
2,119(374)
77,666(26,534)
51,131

Non-controlling interests

68,826
3,970

Profit for the period

72,79648,024
3,107
51,131675.30674.61471.07470.48

Earnings per share
Basic (Yen)
Diluted (Yen)1212— 16 —

Interim Condensed Consolidated Statement of Comprehensive Income
Three months ended 30 November 2015
(Millions of yen)

72,796

Three months ended
30 November 2015
51,131

―

―

(708)

11

18,55572,636

3,432(5,915)(2,471)
48,660Three months ended
30 November 2014
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
Cash flow hedges
Other comprehensive income, net of taxes

90,483

Total comprehensive income for the period

163,280

Attributable to:
Owners of the parent
Non-controlling interests

157,780
5,499

Total comprehensive income for the period

163,280— 17 —

45,012
3,648
48,660(3)Interim Condensed Consolidated Statement of Changes in Equity
For three months ended 30 November 2014
(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 of treasury
stock
Dividends
Share-based payments
Total transactions withthe owners
Total net changes
during the period
As at 30 November 20148

Equityattributableto owners
Nonof the controlling
Totalparent interests

Capitalstock

CapitalsurplusRetainedearnings

Foreign
Treasury Available- currency Cash-flow
stock, atfor-sale translation
hedge
cost
reserve
reserve
reserve

10,273

9,803

525,722(15,790)798

23,03564,53688,371

618,381

17,660Total
equity636,041——

68,826

—

—

—

—

—

68,826

3,970

72,796

—

—

—

—

(708)

17,30772,353

88,953

88,953

1,529

90,483——

68,826—(708)

17,30772,353

88,953

157,780

5,499

163,280

—

—

—

(1)

—

—

—

—

(1)

—

(1)

—
—
—

63
—
1,467

—
(15,287)
—

11
—
—

—
—
—

—
—
—

—
—
—

—
—
—

75
(15,287)
1,467—(1,226)—75(16,513)
1,467

—

1,531

(15,287)

9

—

—

—

—

(13,746)(1,226)(14,972)—
10,273

1,531
11,33553,538579,2619(15,780)(708)
90

17,30740,34372,353
136,890

88,953
177,324

144,033
762,414

4,273
21,934

148,307784,349— 18 —

For three months ended 30 November 2015
(Millions of yen)
Other components of equity

Note
As at 1 September 2015
Net changes during theperiodComprehensive income
Profit for the period
Other comprehensive
incomeTotal comprehensive
incomeTransactions with theownersAcquisition oftreasury stock
Disposal oftreasury stock
Dividends
Share-based payments
OthersTotal transactions
with the owners
Total net changes
during the period
As at 30 November 20158

Foreign
Available- currency
for-sale translation
reserve
reserve
143
37,851

Cashflowhedge
reserve
104,219

Equityattributableto owners
Nonof the controllingparent interests
Total
142,214750,937
23,867

Capitalstock
10,273

Capitalsurplus11,524Retainedearnings
602,623

Treasurystock, atcost(15,699)——

48,024

—

—

—

—

—

48,024

3,107

51,131

—

—

—

—

11

2,490

(5,514)(3,012)(3,012)540(2,471)——

48,024

—

11

2,490

(5,514)(3,012)45,012

3,648

48,660

—

—

—

—

—

—

—

—

—

—

—

—
—
—
—

80
—
1,165
—

—
(17,840)
—
—

13
—
—
—

—
—
—
—

—
—
—
—

—
—
—
—

—
—
—
—

93
(17,840)
1,165——(2,067)—121

93(19,907)
1,165
121

—

1,245

(17,840)

13

—

—

—

—

(16,581)(1,945)(18,527)—
10,273

1,245
12,77030,184
632,80813(15,686)

11
154

2,490
40,342(5,514)
98,704(3,012)
139,201

28,430779,368

1,702
25,56930,133804,938— 19 —

Total
equity774,804

(4)Interim Condensed Consolidated Statement of Cash Flows(Millions of yen)Three months ended
30 November 2014

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

106,7458,418
14(5,608)(227)
264(14,623)75(64,628)(9,799)53,660(3,020)31,509(1,134)

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

101,645227(180)(30,374)564

Net cash from operating activities

71,882

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 lease and guarantee deposits
Increase in construction assistance fund receivables
Decrease in construction assistance fund receivables
Others, net

811(15,209)174(2,217)(2,960)
834
(723)
442
(360)

Net cash used in investing activities(19,207)— 20 —

Three months ended
30 November 2015

77,6669,209(38)(7,770)(417)
374(1,701)
96(61,221)(11,432)
61,787(1,261)
25,467
1,809
92,567300(289)(34,077)—
58,501

6,090(11,116)
1,003(2,359)(1,133)
226
(506)
543
75
(7,178)(Millions of yen)Note
Net increase/(decrease) in short-term loans
payableCash dividends paid
Repayments of lease obligations

Three months ended
30 November 2014

Three months ended
30 November 2015

Others, net(640)(15,234)(1,076)(243)

Net cash used in financing activities(17,194)(2,576)(17,807)(1,147)
52(21,478)

22,016

2,480

Cash and cash equivalents at beginning of period

57,497314,049

CASH AND CASH EQUIVALENTS AT END OF PERIOD

371,546

32,324355,212387,5378

Effect of exchange rate changes on cash andcash equivalents
Net increase/(decrease) in cash andcash equivalents— 21 —

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 registeredheadquarters 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 January 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.
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.
— 22 —

(iii) Segment information
For the three months ended 30 November 2014
(Millions of yen)
Reportable segments
UNIQLOJapan

UNIQLOInternational

GlobalBrandsTotal

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

Others(Note 1)

Revenue

232,632

168,031

78,186478,851692—

479,543

Operating profit

51,14324,316

9,558

85,017(2)

6,354

91,370

Segment income(profit before
income taxes)

52,84323,746

9,626

86,215(2)

20,531

106,745(Note 1) “Others” include real estate leasing business, etc.
(Note 2)	“Adjustments” mainly include revenue and corporate expenses which are not allocated to individual reportablesegments.
For the three months ended 30 November 2015
(Millions of yen)
Reportable segments
UNIQLOJapan

UNIQLOInternational

GlobalBrandsTotal

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

Others(Note 1)

Revenue

230,939

196,943

91,825

519,708595—

520,303

Operating profit

44,821

20,86912,401

78,093(109)(2,062)75,921

Segment income(profit before
income taxes)

44,98820,96012,362

78,311

(109)

(534)

77,666(Note 1) “Others” include real estate leasing business, etc.
(Note 2)	“Adjustments” mainly include revenue and corporate expenses which are not allocated to individual reportablesegments.
6. Inventories
Write-down of inventories to net realizable value and recognized as expenses is as follows:(Millions of yen)Three months ended Three months ended
30 November 2014 30 November 2015
Write-down of inventories to net realizable value

1,255

2,335

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— 23 —

As at
30 November 2015

91,635
16,825
2,643
7,284
10,952

97,18018,036
1,985
6,067
11,179129,340

134,449

8. Dividends
The total amount of dividends paid was as follows:
Dividends paid during the three months ended 30 November 2014
Total dividends(Millions of yen)

Resolution
Meeting of the Board of Directors on 3 November 2014

Dividends per share(Yen)

15,287

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 three months ended 30 November 2015
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.
9. Selling, general and administrative expenses
The breakdown of selling, general and administrative expenses for each reporting period is as follows:(Millions of yen)Three months ended Three months ended
30 November 2014 30 November 2015
Selling, general and administrative expenses
Advertising and promotion
Rental expenses
Depreciation and amortization
Outsourcing
Salaries
Others21,16342,2638,418
6,700
54,04435,41923,93545,7699,209
9,024
61,731
41,009Total

168,009

190,680

10. Other income and other expenses
The breakdown of other income and other expenses for each reporting period is as follows:(Millions of yen)Three months ended Three months ended
30 November 2014 30 November 2015
Other income
Foreign exchange gains*
Gains on sales of property, plant and equipment
Others
Total
*

6,254
0
477

203
7
584

6,732

795

Currency adjustments incurred in the course of operating transactions are included in “other income”.
(Millions of yen)Three months ended Three months ended
30 November 2014 30 November 2015
Other expenses
Loss on retirement of property, plant and equipment
OthersTotal— 24 —

75
553

96
367

629

463

11. Finance income and finance costs
The breakdown of finance income and finance costs for each reporting period is as follows:(Millions of yen)Three months ended Three months ended
30 November 2014 30 November 2015
Finance income
Foreign exchange gains*
Interest income
Dividend income
OthersTotal*

14,623
227
0
792

1,701
417
0
—

15,643

2,119

Currency adjustments incurred in the course of non-operating transactions are included in “finance income”.
(Millions of yen)Three months ended Three months ended
30 November 2014 30 November 2015
Finance costs
Interest expenses
Others
Total

264
3

374
—

268

374

12. Earnings per share
Three months ended 30 November 2014
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)Three months ended 30 November 2015
7,480.41
675.30674.61Equity per share attributable to ownersof the parent (Yen)
Basic earnings per share for the period (Yen)
Diluted earnings per share for the period (Yen)7,644.70
471.07470.48(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
30 November 2014 30 November 2015
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)

68,826—
68,826
101,920,154

48,024—48,024
101,947,408—
104,832(104,832)—
129,190(129,190)

13. Fair value of financial instruments
The information about carrying amount and fair value of financial instruments is as follows:(Millions of yen)
As at 31 August 2015
Short-term borrowings
Long-term borrowings (Note)
Lease obligations (Note)
Total

As at 30 November 2015

Carrying amounts

Fair value

Carrying amounts

Fair value

4,652
21,121
12,262

4,652
21,27012,197

2,076
21,241
12,377

2,076
21,40812,24938,035

38,12035,69435,734(Note) The above includes the outstanding balance of borrowings due within 1 year.

— 25 —

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 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.
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 30 November 2015

Level 1

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

Level 2

Level 3

Total

381
―

―
284

208
―

590
284

―

147,948―

147,948381

148,232

208

148,823

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 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— 26 —

As at
30 November 2015

8,825
85

5,899
64

8,910

5,964

15. Subsequent Events
Based on the comprehensive decision made in the Board of Directors meeting on 25 November 2015, the conditions ofissuance of non-collateralized corporate bonds were decided upon on 11 December 2015, and these were issued from 18
December 2015 as detailed below.
1st non-collateralized corporate bonds
1. Amount to be issued: 30,000 million yen
2. Issue price:
100 yen per 100 yen of face value
3. Interest rate:
0.110% per annum
4. Maturity:
18 December 2018
5. Redemption method: Lump sum payment at maturity
6. Collateral:
There is no collateral or guarantee attached to the bonds, and no funds held in reserve
7. Use of funds:
Capital investment, operating funds, investments and/or repayment of other borrowings
2nd non-collateralized corporate bonds
1. Amount to be issued: 100,000 million yen
2. Issue price:
100 yen per 100 yen of face value
3. Interest rate:
0.291% per annum
4. Maturity:
18 December 2020
5. Redemption method: Lump sum payment at maturity
6. Collateral:
There is no collateral or guarantee attached to the bonds, and no funds held in reserve
7. Use of funds:

Capital investment, operating funds, investments and/or repayment of other borrowings

3rd non-collateralized corporate bonds
1. Amount to be issued: 50,000 million yen
2. Issue price:
100 yen per 100 yen of face value
3. Interest rate:
0.491% per annum
4. Maturity:
16 December 2022
5. Redemption method: Lump sum payment at maturity
6. Collateral:
There is no collateral or guarantee attached to the bonds, and no funds held in reserve
7. Use of funds:
Capital investment, operating funds, investments and/or repayment of other borrowings
4th non-collateralized corporate bonds
1. Amount to be issued: 70,000 million yen
2. Issue price:
100 yen per 100 yen of face value
3. Interest rate:
0.749% per annum
4. Maturity:
18 December 2025
5. Redemption method: Lump sum payment at maturity
6. Collateral:
There is no collateral or guarantee attached to the bonds, and no funds held in reserve
7. Use of funds:
Capital investment, operating funds, investments and/or repayment of other borrowings— 27 —

2. Others
Dividends
The Company resolved to pay a dividend from retained earnings at the meeting of the Board of Directors convened on 4
November 2015.
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”.

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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 30 November 2015, and the related interim condensed consolidated statement of profit or loss and interim condensed
consolidated statement of comprehensive income, interim condensed consolidated statement of changes in equity and interim
condensed consolidated statement of cash flows for the three-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 January 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 30 November 2015. 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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