FAST RETAILING CO., LTD.
迅 銷 有 限 公 司

Third Quarterly Report 2020/21
2021.3.1-2021.5.31
Stock Code: 6288－

1 －Contents
1. Corporate Profile3

2. Financial Highlights

4

3. Management Discussion and Analysis

6

4. Information about the Reporting Entity

11

5. Financial Section

13

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

14(2) Interim Condensed Consolidated Statement ofProfit or Loss and Interim Condensed Consolidated
Statement of Comprehensive Income

16Interim Condensed Consolidated Statement of Profit or Loss

16

Interim Condensed Consolidated Statement ofComprehensive Income18(3) Interim Condensed Consolidated Statement of
Changes in Equity

20(4) Interim Condensed Consolidated Statement of Cash Flows22

2. Others

36

Independent Accountant’s Review Report

37

－

2 －

1. Corporate Profile
Board of Directors
Representative Director

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

Tadashi Yanai (Chairman, President and CEO)Akasaka, Minato-ku
Tokyo 107-6231
Japan

Directors
Takeshi Okazaki
Kazumi Yanai

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

Koji Yanai

No. 132 Nathan Road
Tsim Sha Tsui

External Directors
Toru Hambayashi

KowloonHong Kong

Nobumichi Hattori
Masaaki Shintaku

HDR Registrar and HDR Transfer Office

Takashi Nawa
Naotake Ohno

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

Board of Statutory Auditors

Hopewell Centre
183 Queen’s Road East

Akira Tanaka
Masaaki Shinjo

WanchaiHong Kong

Masumi Mizusawa
Keiko Kaneko (External)

Stock Code

Takao Kashitani (External)
Masakatsu Mori (External)

Hong Kong: 6288
Japan: 9983

Company Secretary

Website Address

Shea Yee Man

https://www.fastretailing.com

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
10717-1 Sayama
Yamaguchi City
Yamaguchi 754-0894
Japan

－

3 －

2. Financial Highlights
Consolidated Financial Summary
Term

Third Quarterof
59th Fiscal
Year

Third Quarterof
60th Fiscal
Year

59th Fiscal
Year

Accounting period

Nine months
ended
31 May2020

Nine months
ended
31 May2021

Year ended
31 August2020

1,544,924

1,698,082

2,008,846

Operating profit (Millions of yen)

132,383

227,897

149,347

Profit before income taxes (Millions of yen)

142,420

245,654

152,868

90,640151,351

90,357

119,501

209,635

110,134

968,616

1,113,646

956,562

Total assets (Millions of yen)

2,337,738

2,492,263

2,411,990

Basic earnings per share (Yen)887.96

1,482.08

885.15

Diluted earnings per share (Yen)886.42

1,479.65

883.62

41.4

44.7

39.7

173,122367,214

264,868(70,097)(65,768)(75,981)(149,492)(262,782)(183,268)

1,045,734

1,177,159

1,093,531

Three months
ended
31 May2020

Three months
ended
31 May2021

Revenue (Millions of yen)

336,411495,218

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

(9,818)45,483

Basic earnings / (loss) per share for the period (Yen)(96.18)445.33

Revenue (Millions of yen)

Profit for the period attributable to ownersof the Parent (Millions of yen)Comprehensive income attributable to ownersof the Parent (Millions of yen)
Equity attributable to owners of the Parent (Millions of yen)

Ratio of equity attributable to owners of the Parent to total assets (%)
Net cash generated by operating activities (Millions of yen)
Net cash (used in) / generated by investing activities (Millions ofyen)
Net cash (used in) / generated by financing activities (Millions ofyen)Cash and cash equivalents at end of the period (year) (Millions ofyen)Accounting period(Notes) 1. FAST RETAILING CO., LTD. (the “Company”, the “Parent”, or the “Reporting entity”) prepared interim condensed
consolidated financial statements and therefore has not included the non-consolidated financial summary of the Reporting
entity.
2. Revenue does not include consumption taxes, etc.
3. The financial figures are sourced from the interim condensed consolidated financial statements or consolidated financial
statements prepared in accordance with International Financial Reporting Standards (“IFRS”).

－

4 －Business Description
There were no significant changes in the nature of the business engaged by the Company and its subsidiaries (collectively, the“Group”) during the nine months ended 31 May 2021.
In addition, there were no significant changes in the organizational structure of the Group, including the major subsidiaries, during thenine months ended 31 May 2021.

－

5 －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 2021.
There have been no significant changes concerning business-related risks as stated in the annual report for the preceding fiscal year.
2. Financial Analysis(1) Financial Position and Results of Operations(i) Results of Operations
The Fast Retailing Group’s revenue and profit increased significantly in the first nine months of fiscal 2021 from 1 September
2020 to 31 May 2021, with consolidated revenue rising to 1.6980 trillion yen (+9.9% year-on-year) and operating profit
expanding to 227.8 billion yen (+72.1% year-on-year). Group performance recovered as profitability, primarily at our UNIQLO
operations, improved in the first half. In the third quarter, performance picked up at all four business segments, generating
significant increases in both revenue and profit compared to the previous year when business was hit hard by the COVID-19
pandemic. We reported an impairment loss of 17.5 billion yen primarily on UNIQLO International operations, resulting in a net
cost of 15.2 billion yen under other income/expenses. In addition, we recorded finance income of 17.7 billion yen on a net basis,
mainly comprising a 19.5 billion yen foreign-exchange gain on foreign-currency denominated assets and other items. As a result,profit before income taxes rose to 245.6 billion yen (+72.5% year-on-year) and profit attributable to owners of the Parent rose to151.3 billion yen (+67.0% year-on-year) in the nine months ended 31 May 2021.
The Group’s medium-term vision is to become the world’s number one apparel retailer. In pursuit of this aim, we focus our efforts
on expanding UNIQLO International, as well as our GU brand and our global E-commerce operation. We continue to open
multiple new UNIQLO stores in all markets and areas in which we operate and strive to instill deeper and more widespread
empathy for UNIQLO’s LifeWear concept of ultimate everyday wear. Within the UNIQLO International segment, the Greater
China and Southeast Asia regions are continuing to serve as the key pillars of our Group's business and growth. In terms of our
GU segment, in addition to expanding the GU store network primarily in Japan, we are working to establish GU’s position as abrand that offers fun fashion at amazingly low prices. E-commerce sales continue to expand thanks to stronger initiatives to fuseonline and physical stores and the offering of a wider range of services.
UNIQLO Japan
UNIQLO Japan reported large increases in revenue and profit in the first nine months of fiscal 2021, with revenue expanding to675.1 billion yen (+12.7% year-on-year) and operating profit rising to 119.5 billion yen (+51.0% year-on-year). First-half revenuerose and profit expanded significantly on the back of strong sales of products that fulfilled customer demand for stay-at-homeitems as well as core Fall Winter ranges. Revenue and profit subsequently expanded significantly in the third quarter compared toa low previous-year performance.
From March to May 2021, revenue increased considerably on the back of strong sales of Uniqlo U T-shirts, KANDO pants andother Summer ranges along with loungewear, ultra stretch active pants, and other items. E-commerce revenue increased as theonline sales operation continued to expand favorably. Since 12 March 2021, we have changed the product price displays in Japanto show just one tax-inclusive price to make our products easier for customers to purchase. However, the prices have remained thesame following our decision to absorb the additional consumption-tax component ourselves. To alleviate the impact of this moveon our gross profit margin, we have worked hard to reduce the cost of sales. As a result, we were able to contain the decline in
UNIQLO Japan’s third-quarter gross profit margin to 0.5 point year-on-year. In addition, the third-quarter selling, general andadministrative expense ratio improved by 6.1 points year-on-year. However, overall sales struggled in the face of a higher-thananticipated COVID-19 impact and our inability to fully convey the new, newsworthy elements of our products to customers, so
the third-quarter UNIQLO Japan performance did fall short of our business plan.
UNIQLO International
UNIQLO International reported a rise in revenue and a large increase in profit in the first nine months of fiscal 2021, withrevenue rising to 739.6 billion yen (+9.8% year-on-year) and operating profit increasing to 97.7 billion yen (+88.7% year-onyear). Profit increased significantly in the first half thanks to improved profitability in East Asia operations. All regions reported
significant recoveries in the third quarter. Geographically speaking, the Mainland China market reported large rises in bothrevenue and profit. UNIQLO South Korea moved back into the black in terms of operating profit following improvements in theoperation’s gross profit margin and selling, general and administrative expense ratio. UNIQLO South Asia, Southeast Asia &－6 －Oceania (Southeast Asia, Australia, and India) reported a large rise in revenue and a return to the black in terms of operating
profit. UNIQLO North America and UNIQLO Europe reported large revenue gains and smaller operating losses as the COVID
situation improved in those regions.
From March to May 2021, performance from the Greater China region fell short of our business estimates. For the Mainland
China market, compared with the extremely strong May Labor Day sales in 2020, when a rebound in consumption was observed
after the pandemic was brought under control, demand across the whole retail market was slightly more subdued as consumer
focus shifted to domestic travel this year. However, UNIQLO International third-quarter operating profit came in roughly in linewith plan thanks to larger-than-expected improvements in profitability in North America and Europe.
GU
Our GU operation reported a rise in revenue and a large increase in profit in the nine months ended May 2021, with revenue
climbing to 200.8 billion yen (+7.1% year-on-year) and operating profit expanding to 24.3 billion yen (+18.9% year-on-year). GU
performance held steady year-on-year but both revenue and profit increased considerably in the third quarter.
From March to May 2021, items such as chef’s pants, airy shirts, and colored flared slacks contributed to the rise in GU revenue.
However, sales struggled and GU performance fell short of our business estimates due to the announcement of another state of
emergency in Japan and the fact that some of our GU products did not fully grasp the prevailing trend.
Global Brands
Global Brands revenue declined and operating losses widened in the first nine months of fiscal 2021. Revenue declined to 80.5
billion yen (-3.3% year-on-year) and the segment reported an operating loss of 8.9 billion yen (compared to an operating loss of
6.0 billion in the first nine months of fiscal 2020). In the first half, Global Brands performance worsened significantly in the wakeof COVID-19, but performance, primarily driven by Theory, picked up in the third quarter, with revenue rising sharply and theoperating loss shrinking to 0.7 billion yen (compared to an operating loss of 6.7 billion in the third quarter of fiscal 2020).
However, Global Brands performance fell short of plan due to a higher-than-anticipated COVID-19 impact.
Sustainability
In keeping with our key sustainability message, “Unlocking the power of clothing,” the Group pursues sustainability activities
through our core clothing business focused on six clear material areas: Creating new value through products and services;
Respecting human rights in our supply chain; Respecting the environment; Strengthening communities; Supporting employee
fulfillment; Implementing good corporate governance. Our main activities in the third quarter of fiscal 2021 from March 2021 to
May 2021 involved:■Consideration for the environment: In June 2021, we expressed our support for proposals by the Task Force on Climate-related
Financial Disclosures (TCFD) targeting disclosure of companies' actions in relation to climate change, and are working toward
disclosing such information in accordance with the TCFD. The Sustainability Committee is also advancing discussions on theestablishment of long-term reduction targets and specific measures to counter greenhouse gas emissions in the supply chain,including from our own stores and offices, the factories of business partners, and the production of raw materials.
■Community support: In support of efforts against the COVID-19 pandemic, we have been donating masks and isolation gowns to
medical institutions and nursing care facilities around the world since last year. In India, where the impact of COVID-19 is spreading,we have provided emergency support equivalent to 220 million rupees (approximately 330 million yen), including over 600,000
Uniqlo AIRism Masks.
■Employee satisfaction: We have established various personnel systems that enable all employees to choose work styles that areright for their stage of life, helping them build careers and exhibit their respective individualities and talents. Among these, we arepromoting career development for female employees. For example, we provide a development program for female management
candidates, along with training aimed at dispelling unconscious bias toward female management and management candidates.
Moving forward, the Diversity Promotion Team will play a central role in efforts to improve the percentage of women in
management roles by analyzing and monitoring the ratio of male to female promotions by country and department.
(ii) Financial Position
Total assets as at 31 May 2021 were 2.4922 trillion yen, which was an increase of 80.2 billion yen relative to the end of thepreceding fiscal year. The principal factors were an increase of 83.6 billion yen in cash and cash equivalents, an increase of 8.9
billion yen in trade and other receivables, an increase of 12.8 billion yen in other current financial assets, a decrease of 72.8
billion yen in inventories, an increase of 26.8 billion yen in derivative financial assets, an increase of 25.7 billion yen in property,－

7 －plant and equipment, and a decrease of 9.9 billion yen in deferred tax assets.
Total liabilities as at 31 May 2021 were 1.3326 trillion yen, which was a decrease of 83.2 billion yen relative to the end of thepreceding fiscal year. The principal factors were a decrease of 31.7 billion yen in trade and other payables, a decrease of 93.9
billion yen in other current financial liabilities, an increase of 4.5 billion yen in lease liabilities, an increase of 21.3 billion yen incurrent tax liabilities, an increase of 6.2 billion yen in other current liabilities, an increase of 5.1 billion yen in provisions, and anincrease of 4.6 billion yen in deferred tax liabilities.
Total net assets as at 31 May 2021 were 1.1596 trillion yen, which was an increase of 163.5 billion yen relative to the end of thepreceding fiscal year. The principal factors were an increase of 102.7 billion yen in retained earnings, and an increase of 52.2
billion yen in other components of equity.

－8 －(2) Cash Flows Information
Cash and cash equivalents as at 31 May 2021 had increased by 83.6 billion yen from the end of the preceding fiscal year, to1.1771 trillion yen.
(Operating Cash Flows)
Net cash generated by operating activities for the nine months ended 31 May 2021 was 367.2 billion yen, which was an increaseof 194.0 billion yen (+112.1% year-on-year) from the nine months ended 31 May 2020. The principal factors were 245.6 billion
yen in profit before income taxes (an increase of 103.2 billion yen from the nine months ended 31 May 2020), 19.5 billion yen inforeign exchange gains (a decrease of 11.8 billion yen from the nine months ended 31 May 2020), a decrease of 87.4 billion yen
in inventories (an increase of 56.1 billion yen from the nine months ended 31 May 2020), and an increase of 6.5 billion yen inother liabilities (an increase of 42.7 billion yen from the nine months ended 31 May 2020).
(Investing Cash Flows)
Net cash used in investing activities for the nine months ended 31 May 2021 was 65.7 billion yen, which was a decrease of 4.3
billion yen (-6.2% year-on-year) from the nine months ended 31 May 2020. The principal factors were a net increase of 6.8
billion yen in bank deposits with original maturities of three months or longer (a decrease of 7.8 billion yen from the nine months
ended 31 May 2020), 41.9 billion yen in payments for property, plant and equipment (an increase of 5.9 billion yen from the ninemonths ended 31 May 2020), 13.8 billion yen in payments for intangible assets (a decrease of 2.6 billion yen from the ninemonths ended 31 May 2020), 0.8 billion yen in payments for acquisition of right-of-use (a decrease of 0.5 billion yen from thenine months ended 31 May 2020), 4.2 billion yen in payments for acquisition of investments in associates (an increase of 4.2
billion yen from the nine months ended 31 May 2020), and 1.6 billion yen in proceeds from other investing activities (a decreaseof 3.3 billion yen from the nine months ended 31 May 2020).
(Financing Cash Flows)
Net cash used in financing activities for the nine months ended 31 May 2021 was 262.7 billion yen, which was an increase of
113.2 billion yen (+75.8% year-on-year) from the nine months ended 31 May 2020. The principal factors were a net decrease of
0.4 billion yen in loans payable (an increase of 5.4 billion yen from the nine months ended 31 May 2020), 100.0 billion yen in
repayment of redemption of bonds (an increase of 100.0 billion yen from the nine months ended 31 May 2020), 1.8 billion yen in
dividends paid to non-controlling interests (a decrease of 0.4 billion yen from the nine months ended 31 May 2020), and 111.6
billion yen in repayments of lease liabilities (an increase of 8.2 billion yen from the nine months ended 31 May 2020).
(3) Estimates and Assumptions Used for Those Estimates in the Accounting
Our assumptions concerning the impact of COVID-19 have changed since the preceding consolidated fiscal year. Further details
about this can be found in "4. Use of Estimates and Judgments" in "Notes to the Interim Condensed Consolidated Financial
Statements" of "5. Financial Section."
For the third-quarter consolidated accounting period, there are no significant changes to the estimates or the assumptions used for
those estimates.
(4) Operational and Financial Challenges to Address as Priority
There have been no significant challenges during the nine months ended 31 May 2021 that resulted in issues that must be
addressed by the Group.
(5) Research and Development
Not applicable.

－

9 －(6) Significant Facilities
The following are the significant facilities that were planned as at the end of the preceding consolidated fiscal year and newly
completed during the nine months ended 31 May 2021.
<Subsidiaries in Japan>
Not applicable.
<Overseas Subsidiaries>
Company nameUNIQLO EUROPE LIMITEDUNIQLO CANADA INC.

Type of facility

Name of business

UNIQLOUNIQLOInternationalStore

Hamburg
Alter Wall

UNIQLOUNIQLOInternationalStore

Montreal
Eaton Centre

Location

Completion date

Hamburg,
Germany

October 2020

Montreal, Canada

October 2020

The following are the significant facilities that were newly planned during the nine months ended 31 May 2021.
<Subsidiaries in Japan>
Not applicable.
<Overseas Subsidiaries>
Not applicable.
3. Significant Contracts in Business Operation
None.

－

10 －

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

Total number of authorized shares

Common stock

300,000,000

Total

300,000,000(ii) Shares Issued

Type

Number of shares issued
as at 31 May 2021

Number of shares issued
as at submission date
(As at 15 July 2021)

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

Remarks

First section of the Tokyo
Stock Exchange andCommon stock

106,073,656

106,073,656

the Main Board of
The Stock Exchange of

100 sharesas one unit

Hong Kong Limited(Note)
Total

106,073,656

106,073,656--(Note) Hong Kong Depositary Receipts are listed on the Main Board of the Stock Exchange of Hong Kong Limited.
(2) Share Subscription Rights
1.

Details of the Stock Option Program
Not applicable.

2.

Other Share Subscription Rights
Not applicable.

(3) Exercise of convertible bonds with conditional permission for adjustment of exercise priceNot applicable.
(4) Change in total number of Shares Issued, Capital Stock, Etc.
Increase/
Increase/
Balance of(decrease) of(decrease) of
total
Date
capital stock
total number of
number of(Millions ofshares issued
shares issuedyen)
1 March 2021 to
31 May 2021-

106,073,656-

Balance ofcapital stock(Millions ofyen)

Increase/(decrease) ofcapital reserve(Millions ofyen)

Balance ofcapital reserve(Millions ofyen)

10,273-

4,578(Note) There was no change in the total number of shares issued, capital stock or capital reserve during the three months ended 31
May 2021.

－

11 －(5) Major Shareholders
There are no items to disclose, as the accounting period under review is the third quarter accounting period.
(6) Voting Rights
Concerning “Voting Rights” as at the end of the third quarterly accounting period ended 31 May 2021, it has not been possible toconfirm and state the details entered in the register of shareholders. Therefore, the stated details are based on the register ofshareholders as at the immediately preceding record date (28 February 2021).
(i) Shares issued
As at 31 May 2021
Class

Number of shares

Number of voting rights

Remarks

Non-voting shares

-

-

-

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

-

-

-

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

-

-

-

-

-

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

Shares with full voting rights

Common stock

3,943,900(e.g., other than treasury stock)

1,020,581

102,058,100(Note) 1

Common stock
71,656-(Notes) 1, 2

Total number of shares issued

106,073,656--

Total number of voting rights of allshareholders-

Shares less than one unit

1,020,581-(Notes) 1. The columns for the number of shares of “Shares with full voting rights (e.g., other than treasury stock)” and “Shares lessthan one unit” include 2,700 shares and 84 shares, respectively, held in the name of Japan Securities Depository Center, Inc.
2. Common stock in the “Shares less than one unit” row includes 66 shares of treasury stock held by the Company.
(ii) Treasury Stock

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

Holder’s address

As at 31 May 2021
Percentage ofTotal number of
total number ofshares held
shares issued(%)

Number ofshares held in
own name

Number ofshares held inother’s name

3,943,900-

3,943,900

3.72

3,943,900-

3,943,900

3.7210717-1 Sayama,
Yamaguchi-shi,
Yamaguchi-

2. Directors
Since the submission of the year-end report for the preceding fiscal year, there has been no change of directors during the ninemonths ended 31 May 2021.

－

12 －

5. Financial Section
1. Preparation of Interim Condensed Consolidated Financial Statements
The interim condensed consolidated financial statements of the Group, namely, the interim condensed consolidated statement offinancial position as at 31 May 2021, the interim condensed consolidated statement of profit or loss and interim condensed
consolidated statement of comprehensive income for the three-month and nine-month periods then ended, the interim condensed
consolidated statement of changes in equity and interim condensed consolidated statements of cash flows for the nine-month period
then ended, and the related notes (collectively, the “interim condensed consolidated financial statements”) were prepared inaccordance with International Accounting Standards 34, Interim Financial Reporting (“IAS 34”), pursuant to Article 93 of the“Rules Governing Term, Form and 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.

－

13 －

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

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

As at 31 August 2020

As at 31 May 2021

1,093,531

1,177,159

ASSETS
Current assets
Cash and cash equivalents
Trade and other receivables
Other financial assets

16

67,06949,89076,02562,712Inventories
Derivative financial assets

6
16

417,529
14,413

344,651
24,691

2,126
10,6291,310
15,586

1,655,191

1,702,138

Income taxes receivable
Other assets
Total current assets
Non-current assets
Property, plant and equipment

7,8

136,123

161,918

Right-of-use assets
Goodwill

8399,944
8,092

395,415
8,092

Intangible assets
Financial assets

8
16

66,83367,77067,92368,492

Investments in associates accounted
for using the equity method

14,221

18,289Deferred tax assets
Derivative financial assets

16

45,447
10,98335,53027,538Other assets

8

7,383

6,923

Total non-current assets
Total assets

756,799

790,125

2,411,990

2,492,263

210,747
213,301

178,994
119,346

2,763
114,652

5,334
120,451

22,602752

43,978
1,079

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

9,16

Derivative financial liabilities
Lease liabilities

16

Current tax liabilities
Provisions
Other liabilities
Total current liabilities
Non-current liabilities
Financial liabilities
Lease liabilities

9,16

Provisions
Deferred tax liabilities
Derivative financial liabilities
Other liabilities

16

Total non-current liabilities
Total liabilities

－

14 －

82,63688,902

647,455

558,086

370,780
351,526

370,806
350,316

32,6587,760

37,493
12,410

3,205
2,524

1,140
2,408

768,455774,575

1,415,910

1,332,661

NotesEQUITY
Capital stock

As at 31 August 2020

As at 31 May 2021

10,273

10,273

Capital surplus
Retained earnings

23,365
933,303

Treasury stock, at cost
Other components of equity(15,129)
4,749

25,301
1,036,072(14,994)

Equity attributable to owners of the Parent
Non-controlling interests

956,562
39,516

1,113,646
45,955996,079

1,159,601

2,411,990

2,492,263

Total equity
Total liabilities and equity

－

15 －

56,991

(2) Interim Condensed Consolidated Statement of Profit or Loss and Interim Condensed Consolidated Statement of Comprehensive
IncomeInterim Condensed Consolidated Statement of Profit or Loss
Nine months ended 31 May 2021
(Millions of yen)

Revenue

Notes

Nine months ended
31 May 2020

Nine months ended
31 May 2021

11

1,544,924

1,698,082(793,637)(839,246)

Cost of sales
Gross profit
Selling, general and administrative expenses

12751,286(608,029)

858,836(615,730)

Other income
Other expenses

13
8,13

7,098
(18,425)

7,855(23,646)453

581

132,383
15,938227,897
23,014

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

14

Finance costs

14(5,901)(5,256)

Profit before income taxes
Income tax expense

142,420(50,944)245,654(88,777)

Profit for the period

91,475

156,876

Owners of the Parent
Non-controlling interests

90,640835

151,351
5,525

Total

91,475

156,876

Profit for the period attributable to:Earnings per share
Basic (yen)15887.96

1,482.08

Diluted (yen)15886.42

1,479.65－

16 －Three months ended 31 May 2021
(Millions of yen)
Notes
Revenue
Cost of sales

Three months ended
31 May 2020Three months ended
31 May 2021

336,411(161,915)

495,218(236,833)

Gross profit

174,495

258,385

Selling, general and administrative expenses
Other income(169,231)
2,805(194,979)
3,408

Other expenses
Share of profit and loss of associates accounted(12,825)(7,133)402

233

Operating profit / (loss)(4,352)

59,914

Finance income
Finance costs

2,408(6,494)

15,955(1,697)

Profit / (loss) before income taxes(8,438)74,171

Income tax expense(3,530)(26,550)

Profit / (loss) for the period(11,969)

47,621

Profit / (loss) for the period attributable to:
Owners of the Parent

for using the equity method(9,818)45,483

Non-controlling interests(2,150)

2,138

Total

(11,969)

47,621(96.18)(96.18)445.33444.63

Earnings / (loss) per share
Basic (yen)Diluted (yen)

15
15

－

17 －

Interim Condensed Consolidated Statement of Comprehensive Income
Nine months ended 31 May 2021
(Millions of yen)
Nine months ended
31 May 2020

Nine months ended
31 May 2021

91,475

156,876

(244)

410

(244)

410

1,084

36,225

27,165

24,136(10)

98

28,23960,46027,99460,871

Total comprehensive income for the period

119,470

217,748

Attributable to:
Owners of the Parent

119,501

209,635

(31)

8,112

119,470

217,748

Notes
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
Exchange differences on translating
foreign operations
Cash flow hedges
Share of other comprehensive income / (loss) of
associates
Total items that may be reclassified subsequently to
profit or loss
Other comprehensive income / (loss), net of income tax

Non-controlling interests
Total comprehensive income for the period

－

18 －

Three months ended 31 May 2021
(Millions of yen)Three months ended
31 May 2020Three months ended
31 May 2021

(11,969)

47,621

(13)

41

(13)

41

(13,631)

17,956

1,608

19,552

Share of other comprehensive income / (loss) of
associates

(29)

42

Total items that may be reclassified subsequently to
profit or loss

(12,052)

37,551Other comprehensive income / (loss), net of income tax(12,066)

37,592(24,035)

85,214

Owners of the Parent
Non-controlling interests(20,651)(3,383)82,234
2,979

Total comprehensive income / (loss) for the period(24,035)

85,214

Notes
Profit / (loss) 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
Exchange differences on translating
foreign operations
Cash flow hedges

Total comprehensive income / (loss) for the period
Attributable to:

－

19 －

(3) Interim Condensed Consolidated Statement of Changes in Equity
For the nine months ended 31 May 2020
(Millions of yen)
Other components of equity

Note

As at 1 September 2019
Effect of change in accounting
policyBalance after adjustment
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
Share-based payments
Transfer to non-financial
assetsTotal transactions with theowners of the Parent
Total net changes during theperiodAs at 31 May 2020

10

Capitalstock

CapitalsurplusRetainedearnings

Treasurystock, atcost

FinancialassetsForeignmeasuredcurrency
at fair valuetranslation
through otherreservecomprehensive
incomeShare of otherCash flow
comprehensive
hedge
income ofreserveassociates

Equityattributable
Nonto owners controllingof theinterest
Parent

Total

Total
equity10,273

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

8,906

(11)

(5,732)

938,62144,913

983,534--(34,252)

-

-

-

-

-

-

(34,252)(1,361)(35,614)

10,273

20,603

894,495(15,271)(697)(13,929)

8,906

(11)

(5,732)

904,368

43,551

947,920--

90,640

-

-

-

-

-

-

90,640835

91,475

-

-

-

-

(244)

1,911

27,204(10)

28,86028,860(866)

27,994--90,640

-

(244)

1,911

27,204(10)

28,860

119,501(31)

119,470

-

-

-

(5)

-

-

-

-

-

(5)

-

(5)

-

1,261

-

121

-

-

-

-

-

1,382

-

1,382

-

1,424

(48,994)
-

-

-

-

-

-

-

(48,994)
1,424(1,565)-(50,560)
1,424

-

-

-

-

-

-

(9,060)-(9,060)(9,060)(974)(10,035)-

2,685(48,994)

116

-

-

(9,060)-(9,060)(55,253)(2,540)(57,793)-

2,685

41,645

116

(244)

1,911

18,143(10)

19,80064,248(2,572)

61,676

10,27323,288936,141(15,155)(942)(12,018)

27,050(21)

14,068968,616

40,9791,009,596－

20 －For the nine months ended 31 May 2021
(Millions of yen)
Other components of equity
Treasury Financial assets
stock, measured at fair Foreignvalue
currency
at costthrough other translation
comprehensive reserveincomeCapitalstock

CapitalsurplusRetainedearnings

10,27323,365

933,303(15,129)--

151,351

-

-

-

-

-

-

-

-

410

32,94024,834--

151,351-410

32,94024,834

-

-

-

(5)

-

-

-

1,567
369

(49,015)
-

140
-

-

-

-

-

-

-

-

Transfer to retained
earnings

-

-

433

-

OthersNote

As at 1 September 2020
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
Share-based payments
Transfer to non-financial
assets10385

Share of otherCash flow
comprehensive
hedge
income ofreserveassociates

Total

Total
equity4,749

956,562

39,516

996,079--

151,351

5,525

156,87698

58,28458,284

2,587

60,871

98

58,284

209,635

8,112

217,748

-

-

-

(5)

-

(5)

-

-

-

1,708
(49,015)369(1,867)-

1,708(50,882)369-(5,608)-(5,608)(5,608)(68)(5,677)

(433)

-

-

-

(433)

-

-

-

(8,489)12,905Equityattributable
Nonto owners controllingof theinterests
Parent

(51)

-

-

-

-

-

-

-

-

-

-

262

262

Total transactions with theowners of the Parent

-

1,936

(48,582)

134

(433)

-

(5,608)-(6,041)(52,552)(1,673)(54,226)

Total net changes during theperiod-

1,936

102,769134(22)

32,94019,22598

52,242

157,083

6,438

163,521

10,27325,301

1,036,072(14,994)363

24,45032,13046

56,991

1,113,646

45,955

1,159,601

As at 31 May 2021

－

21 －

(4) Interim Condensed Consolidated Statement of Cash Flows(Millions of yen)
Nine months ended
31 May 2020

Nine months ended
31 May 2021

Cash flows from operating activities
Profit before income taxes

142,420

245,654

Depreciation and amortization
Impairment losses

131,157
15,296

132,576
17,577(3,473)Note

8Interest and dividend income
Interest expenses(8,286)
5,901

Foreign exchange losses / (gains)Share of profit and loss of associates accounted for using(7,651)

5,249(19,532)

(453)

(581)

712

757
(7,826)the equity method
Losses on disposal of property, plant and equipment(Increase) / Decrease in trade and other receivables(Increase) / Decrease in inventories(14,999)
31,327

Increase / (Decrease) in trade and other payables(Increase) / Decrease in other assets(39,409)
4,090

Increase / (Decrease) in other liabilities
Others, net(36,243)
5,629

6,517
2,346

Cash generated from operations

229,492

428,549

Interest and dividends income received
Interest paid

7,866
(4,776)

Income taxes paid
Income taxes refunded(60,287)827

3,110(4,336)(61,928)

Net cash generated by operating activities

173,122367,214Amounts deposited into bank deposits with original
maturities of three months or longer(67,776)(78,518)

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

53,07971,683

Payments for property, plant and equipment
Payments for intangible assets(35,974)(16,504)(41,952)(13,815)

Payments for acquisition of right-of-use assets
Payments for lease and guarantee deposits(1,366)(4,723)(807)(2,859)Proceeds from collection of lease and guarantee deposits
Payments for acquisition of investments in associates

4,882
-

3,129
(4,232)Others, net(1,715)

1,605

Net cash generated by / (used in) investing activities(70,097)(65,768)

87,475(39,652)
1,463

1,818

Cash flows from investing activities

－

22 －

(Millions of yen)
Nine months ended
31 May 2020

Nine months ended
31 May 2021

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

10,319

Repayment of short-term loans payable
Repayment of long-term loans payable(931)(4,343)43,425(43,843)

Note

Repayment of redemption of bonds
Dividends paid to owners of the Parent

9
10

Dividends paid to non-controlling interests
Repayments of lease liabilities(48,965)(2,328)(103,358)

Others, net(100,000)(48,993)(1,867)(111,638)

116

134

(149,492)(262,782)

5,681

44,965

Net increase / (decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning of period(40,785)
1,086,519

83,627
1,093,531

Cash and cash equivalents at the end of period

1,045,734

1,177,159

Net cash generated by / (used in) financing activities
Effect of exchange rate changes on the balance of cash held
in foreign currencies

－

23 －

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., casualclothing retail business operating under the “UNIQLO” brand in Japan and overseas), GU business (i.e., casual clothing retailbusiness operating under the “GU” brand in Japan and overseas), Theory business (i.e., apparel design and retail business in Japanand overseas) and other businesses.
2. Basis of Preparation
The interim condensed consolidated financial statements have been prepared in compliance with IAS 34. The Group meets all of thecriteria of a “specified company” defined under Article 1-2 of the Consolidated Quarterly Financial Statements Rules andaccordingly, applies Article 93 of the Consolidated Quarterly Financial Statements Rules. Since the interim condensed consolidated
financial statements do not include all the information and disclosures required for consolidated financial statements, they should beread in conjunction with the Group’s annual consolidated financial statements for the year ended 31 August 2020.
The interim condensed consolidated financial statements were approved on 15 July 2021 by Tadashi Yanai, Chairman, President andCEO, 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 2020 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 requires management to make judgments, estimates andassumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income andexpenses. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. The effects of the review of accounting estimates arerecognized in the accounting period in which the estimates were reviewed and in future accounting periods.
With the global spread of COVID-19, the Group's performance has been adversely affected due to temporarily closing stores, etc.
Regarding impairment to our non-financial assets, in the first quarter of the consolidated accounting period, we had assumed thatthe impact of the COVID-19 pandemic would continue to be felt through to the end of August 2021, on the basis of the assumptionthat business activities would gradually return to normal. However, in the second quarter of the consolidated accounting period,
there continues to be uncertainty around the future economic outlook owing to concerns such as the spread of the virus, and thetiming for the situation subsiding differs from region to region and on a case-by-case basis. As such, we made accounting estimates
involving the assumption that the impact will last until the end of February 2022 for most countries and regions including Japan,
with the situation taking longer to get under control for stores in certain other countries and regions. Our estimates presume thatthese assumptions will continue to apply in the third quarter of the consolidated accounting period.
In principle, estimates and judgments that have significant effects on the amounts recognized in the interim condensed consolidated
financial statements are the same as those in the preceding consolidated fiscal year.

－

24 －

5. Segment Information(i) Description of reportable segments
The Group’s reportable segments are components for which discrete financial information is available and which are reviewed
regularly by the Board of Directors (the “Board”) to make decisions about the allocation of resources and to assess performance.
The Group’s main retail clothing business is divided into four reportable operating segments: UNIQLO Japan, UNIQLOInternational, GU and Global Brands, each of which is used to frame and form the Group’s strategy.
The main businesses covered by each reportable segment are as follows:
UNIQLO Japan: UNIQLO clothing business within Japan
UNIQLO International: UNIQLO clothing business outside of Japan
GU: GU clothing business in Japan and overseas
Global Brands: Theory, PLST, COMPTOIR DES COTONNIERS, PRINCESSE TAM.TAM and J Brand clothing business(ii) Segment revenue and results
For the nine months ended 31 May 2020
(Millions of yen)
Reportable segments
Total

Others(Note 1)

83,344

1,543,208

1,715

-

1,544,924

20,486(6,002)

145,458401(13,476)

132,383

53,121

20,340(6,361)

147,833

402(5,814)142,420

11,328436

755

15,296--

15,296UNIQLOJapan

UNIQLOInternational

GU

GlobalBrands

Revenue

598,843

673,532

187,488

Operating profit / (loss)

79,16051,815

Segment income/(loss) (i.e., profit /loss before income
taxes)

80,732Other disclosure:
Impairment losses(Note 3)

2,776

Adjustments(Note 2)

Interim
Condensed
Consolidated
Statement ofProfit or Loss

(Note 1) “Others” includes the real estate leasing business, etc.
(Note 2) “Adjustments” mainly includes revenue and corporate expenses which are not allocated to individual reportable segments.
(Note 3) Details on the Impairment losses are stated in note “8. Impairment losses”.
For the nine months ended 31 May 2021
Reportable segments(Millions of yen)Interim
Condensed
Adjustments
Consolidated(Note 2)
Statement ofProfit or
Loss

Total

Others(Note 1)80,576

1,696,146

1,936

-

1,698,082

24,353(8,983)

232,670

110(4,883)

227,897

96,412

24,300(9,343)

233,290111

12,253245,654

11,103

1,095

2,222

17,577--

17,577UNIQLOJapan

UNIQLOInternational

GU

GlobalBrands

Revenue

675,102739,609200,858

Operating profit / (loss)

119,518

97,781

Segment income/(loss) (i.e., profit /loss before income
taxes)

121,920

Other disclosure:
Impairment losses(Note 3)

3,155

(Note 1) “Others” includes the real estate leasing business, etc.
(Note 2) “Adjustments” mainly includes revenue and corporate expenses which are not allocated to individual reportable segments.
(Note 3) Details on the Impairment losses are stated in note “8. Impairment losses”.

－

25 －

For the three months ended 31 May 2020
Reportable segments
Total

Others(Note 1)

13,243335,997413-

336,411

4,663(6,744)

4,000

122

(8,475)(4,352)(1,037)

4,629(6,878)

3,975

122

(12,536)(8,438)

6,950

335

386

9,852

-

-

9,852

UNIQLOJapan

UNIQLOInternational

GU

GlobalBrands135,274

132,284

55,195

Operating profit / (loss)

7,533(1,452)

Segment income/(loss) (i.e., profit /loss before income
taxes)

7,262

Other disclosure:
Impairment losses(Note 3)

2,179

Revenue(Millions of yen)Interim
Condensed
Adjustments
Consolidated(Note 2)
Statement ofProfit or
Loss(Note 1) “Others” includes the real estate leasing business, etc.
(Note 2) “Adjustments” mainly includes revenue and corporate expenses which are not allocated to individual reportable segments.
(Note 3) Details on the Impairment losses are stated in note “8. Impairment losses”.
For the three months ended 31 May 2021
Reportable segments(Millions of yen)Interim
Condensed
Adjustments
Consolidated(Note 2)
Statement ofProfit or
Loss

Total

Others(Note 1)

26,014

494,567651-

495,218

8,464

(794)

60,02865(179)

59,91430,417

8,488

(906)

61,42065

12,68574,171

2,067

661

836

5,881

-

-

5,881

UNIQLOJapan

UNIQLOInternational

GU

GlobalBrands

Revenue

182,583

217,782

68,187

Operating profit / (loss)

21,64830,711

Segment income/(loss) (i.e., profit /loss before income
taxes)

23,420

Other disclosure:
Impairment losses(Note 3)2,316

(Note 1) “Others” includes the real estate leasing business, etc.
(Note 2) “Adjustments” mainly includes revenue and corporate expenses which are not allocated to individual reportable segments.
(Note 3) Details on the Impairment losses are stated in note “8. Impairment losses”.

－

26 －

6. Inventories
Write-down of inventories to their net realizable values recognized in expenses is as follows:(Millions of yen)
Nine months ended
31 May 2020

Nine months ended
31 May 2021

5,883

11,542

Write-down of inventories to net realizable value
7. Property, Plant and Equipment
The carrying amount of property, plant and equipment at each reporting date is as follows:(Millions of yen)
As at
31 August 2020

As at
31 May 2021

Buildings and structures

104,201

116,829

Furniture, equipment and vehicles

16,773

26,441

Land

1,927

1,927

Construction in progress

13,22016,719136,123

161,918

Total

－

27 －

8. Impairment Losses
During the nine months ended 31 May 2021, the Group recognized impairment losses on certain store assets etc., due to reductions
in originally expected profitability of the respective cash-generating unit (“CGU”).
The breakdown of impairment losses by asset type is as follows:(Millions of yen)
Nine months ended
31 May 2020
Buildings and structures

Nine months ended
31 May 2021
3,053

1,495

507

374

3,561

1,869

Software

0

108

Other intangible assets

-

7

0

116

11,732

15,5882

2

15,296

17,577

Furniture, equipment and vehicles
Subtotal on property, plant and equipment

Subtotal on intangible assets
Right-of-use assets
Other non-current assets (long-term prepayments)
Total impairment losses

The Group’s impairment losses during the nine months ended 31 May 2021 amounted to 17,577 million yen, compared with 15,296
million yen during the nine months ended 31 May 2020, and are included in “Other expenses” on the Interim condensed
consolidated statement of profit or loss.
For the nine months ended 31 May 2020
Property, plant and equipment and Right-of-use assets
Impairment losses amounting to 15,296 million yen represented write downs of the carrying amounts of store assets to therecoverable amounts, primarily due to a reduction in profitability of certain stores, including flagship stores. With the global spreadof COVID-19, the Group's performance has been adversely affected due to temporarily closing stores, etc. We measured impairment
losses on the assumption that the impact of the COVID-19 pandemic will continue to be felt through to the end of August 2021.
The grouping of assets is based on the smallest CGU that independently generates cash inflow. In principle, each store, including
flagship stores, is considered as an individual CGU and recoverable amounts thereon are calculated based on value in use.
The value in use is calculated based on the cash flow projections with estimates and growth rates compiled by management at a
discount rate of mainly 6.3%. Theoretically, the projected cash flows cover a five-year period, and do not use a growth rate thatexceeds the long-term average market growth rate. The pre-tax discount rate calculation is based on the weighted-average cost ofcapital.
The main CGUs for which impairment losses were recorded are as follows:
Operating segment

CGU

UNIQLO Japan

UNIQLO CO., LTD. stores

UNIQLO International

UNIQLO USA, FRL Korea Co., Ltd.
etc., stores

Buildings and structures and Right-ofuse assets etc.

GU

FRL Korea Co., Ltd. etc., stores

Buildings and structures and Right-ofuse assets etc.

Global Brands

Theory LLC., etc., stores

－

28 －

Type
Buildings and structures and Right-ofuse assets etc.

Buildings and structures and Right-ofuse assets etc.

For the nine months ended 31 May 2021
Property, plant and equipment and Right-of-use assets
Impairment losses amounting to 17,577 million yen represented write downs of the carrying amounts of store assets to therecoverable amounts, primarily due to a reduction in profitability of certain stores, including flagship stores. With the global spreadof COVID-19, the Group's performance has been adversely affected due to temporarily closing stores, etc. Although the timing forthe situation subsiding differs from region to region and on a case-by-case basis, we made accounting estimates involving theassumption that the impact will last until the end of February 2022 for most countries and regions including Japan. For stores inother certain countries and regions, it may take longer for the situation to get under control.
The grouping of assets is based on the smallest CGU that independently generates cash inflow. In principle, each store, including
flagship stores, is considered as an individual CGU and recoverable amounts thereon are calculated based on value in use.
The value in use is calculated by discounting the cash flow projections based on estimates and growth rates approved bymanagement at a discount rate of mainly 8.7%. Theoretically, the projected cash flows cover a maximum period of five years, anddo not use a growth rate that exceeds the long-term average market growth rate. The pre-tax discount rate calculation is primarily
based on the weighted-average cost of capital.
The main CGUs for which impairment losses were recorded are as follows:
Operating segment

CGU

Type

UNIQLO Japan

UNIQLO CO., LTD. stores

Buildings, and structures and Right-ofuse assets etc.

UNIQLO USA LLC, UNIQLO

Buildings, and structures and Right-of-

EUROPE LIMITED etc., stores

use assets etc.

UNIQLO International
GU

G.U. CO., LTD. etc., stores

Global Brands

COMPTOIR DES COTONNIERS
S.A.S., etc., stores

－

29 －

Buildings, and structures and Right-ofuse assets etc.
Buildings, and structures and Right-ofuse assets etc.

9. Corporate Bonds
The 2nd non-collateralized corporate bonds of 100,000 million yen (interest rate: 0.291%; date of maturity: 18 December 2020) was
repaid during the 9 months ended 31 May 2021.
10. Dividends
The total amount of dividends paid was as follows:
For the nine months ended 31 May 2020
Total dividends(Millions of yen)

Dividends per share(Yen)

Meeting of the Board on 5 November 201924,494240

Meeting of the Board on 9 April 2020

24,499240

Resolution

Dividends were declared on 5 November 2019 and paid on 8 November 2019. The effective date of the dividend was forshareholders as at 31 August 2019.
Dividends were declared on 9 April 2020 and paid on 11 May 2020. The effective date of the dividend was for shareholders as at 29
February 2020.
For the nine months ended 31 May 2021
Total dividends(Millions of yen)

Dividends per share(Yen)

Meeting of the Board on 4 November 2020

24,504240

Meeting of the Board on 8 April 2021

24,511240

Resolution

Dividends were declared on 4 November 2020 and paid on 6 November 2020. The effective date of the dividend was forshareholders as at 31 August 2020.
Dividends were declared on 8 April 2021 and paid on 11 May 2021. The effective date of the dividend was for shareholders as at 28
February 2021.

－

30 －

11. Revenue
The Group conducts its global clothing retail operations through both physical stores and e-commerce channels. The following is abreakdown of total revenue by major regional market operation.
Nine months ended 31 May 2020
Revenue(Millions of yen)

Percent of Total
(%)

Japan

598,843

38.8

Greater China

362,657

23.5

Other parts of Asia & Oceania

160,128

10.4

North America & Europe

150,7469.8

1,272,375

82.4

GU (Note 2)

187,488

12.1

Global Brands (Note 3)

83,344

5.4

Others (Note 4)

1,715

0.1

1,544,924

100.0

UNIQLO (Note 1)

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

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

North America & Europe:

Indonesia, Australia, Vietnam, India
United States of America, Canada, United Kingdom, France, Russia,
Germany, Belgium, Spain, Sweden, the Netherlands, Denmark, Italy(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.

－

31 －

Nine months ended 31 May 2021
Revenue(Millions of yen)

Percent of Total
(%)

Japan

675,102

39.8

Greater China

431,502

25.4

Other parts of Asia & Oceania

165,255

9.7

North America & Europe

142,8518.4

1,414,711

83.3

GU (Note 2)

200,858

11.8

Global Brands (Note 3)

80,576

4.7

Others (Note 4)

1,936

0.1

1,698,082

100.0

UNIQLO (Note 1)

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

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

North America & Europe:

Indonesia, Australia, Vietnam, India
United States of America, Canada, United Kingdom, France, Russia,
Germany, Belgium, Spain, Sweden, the Netherlands, Denmark, Italy(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.
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 2020

Nine months ended
31 May 2021

Advertising and promotion

53,06951,603

Lease expenses

43,00949,857

Depreciation and amortization

131,157

132,576

Outsourcing

36,78537,458

Salaries

207,768

210,503

Distribution

75,31871,543

Others60,92062,186

608,029615,730

Selling, general and administrative expenses

Total

－

32 －

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 2020

Nine months ended
31 May 2021

Foreign exchange gains (Note)

1,841

4,201

Others

5,256

3,653

7,098

7,855

Other income

Total(Millions of yen)
Nine months ended
31 May 2020

Nine months ended
31 May 2021

712

757

Impairment losses

15,296

17,577

Others

2,416

5,310

18,42523,646

Other expenses
Loss on retirement of property, plant and equipment

Total(Note) Currency adjustments incurred in the course of operating transactions are included in “Other income”.
14. Finance Income and Finance Costs
The breakdown of Finance income and Finance costs for each reporting period is as follows:(Millions of yen)
Nine months ended
31 May 2020

Nine months ended
31 May 2021

Foreign exchange gains (Note)

7,651

19,532

Interest income

8,271

3,461

14

20

15,93823,014

Finance income

Others
Total(Millions of yen)
Nine months ended
31 May 2020

Nine months ended
31 May 2021

5,901

5,249

-

7

5,901

5,256

Finance costs
Interest expenses
Others
Total(Note) Currency adjustments incurred in the course of non-operating transactions are included in “Finance income”.

－

33 －

15. Earnings per Share
Nine months ended 31 May 2020
Equity per share attributable to ownersof the Parent (Yen)

Nine months ended 31 May 2021
9,487.54

Equity per share attributable to ownersof the Parent (Yen)

10,903.41

Basic earnings per share (Yen)887.96

Basic earnings per share (Yen)

1,482.08

Diluted earnings per share (Yen)886.42

Diluted earnings per share (Yen)

1,479.65(Note) The basis for calculation of basic earnings per share and diluted earnings per share is as follows:
Nine months ended
31 May 2020

Nine months ended
31 May 2021

90,640151,351--

90,640151,351

102,076,743

102,121,062--

Increase in number of common stock (Shares)

178,269

167,579(Number of share subscription rights included in increase)(178,269)(167,579)

Basic earnings per share for the period
Profit for the period attributable to owners of the Parent (Millions of yen)
Profit not attributable to common shareholders (Millions of yen)
Profit attributable to common shareholders (Millions of yen)
Average number of common stock outstanding during the period (Shares)
Diluted earnings per share for the period
Adjustment to profit (Millions of yen)Three months ended 31 May 2020Three months ended 31 May 2021

Basic loss per share (Yen)(96.18)

Basic earnings per share (Yen)445.33

Diluted loss per share (Yen)(96.18)

Diluted earnings per share (Yen)444.63(Note) The basis for calculation of basic earnings / (loss) per share and diluted earnings per share is as follows:
Three months ended
31 May 2020Three months ended
31 May 2021

(9,818)45,483--(9,818)45,483102,088,765

102,133,992

Adjustment to profit (Millions of yen)--

Increase in number of common stock (Shares)-

160,996(Number of share subscription rights included in increase)(-)(160,996)

Basic earnings / (loss) per share for the period
Profit / (loss) for the period attributable to owners of the Parent (Millions ofyen)Profit / (loss) not attributable to common shareholders (Millions of yen)
Profit / (loss) attributable to common shareholders (Millions of yen)
Average number of common stock outstanding during the period (Shares)
Diluted earnings per share for the period(Note) In the third quarter of the preceding consolidated fiscal year, no adjustment has been made to the basic earnings per share forthe period in respect of a dilution as the impact of the outstanding stock options had an anti-dilutive effect on the basic loss per shareamounts presented.

－

34 －

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 2020

As at 31 May 2021

Carrying
amounts

Fair value

Carrying
amounts

Fair value

63,63964,341

65,202

66,10563,63964,341

65,202

66,105469,342

470,938

369,441

374,654469,342

470,938

369,441

374,654

Financial assets:
Security deposits and guarantees
Total
Financial liabilities:
Corporate bonds
Total

Notes concerning financial assets and financial liabilities for which book values approximate fair values have been omitted.
The fair value of security deposits and guarantees is calculated on the basis of the present 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 measurements of security deposits and guarantees and corporate bonds are classified as Level 2.
The following tables illustrate the fair value measurement hierarchy of the Group’s financial instruments. All assets and liabilities
for which fair value is measured or disclosed in the interim condensed financial statements are categorized within the fair value
hierarchy based on the following characteristics:
Level 1 - based on quoted prices (unadjusted) in active markets for identical assets or liabilities
Level 2 - based on valuation techniques for which the lowest level input that is significant to the fair value measurement isobservable, either directly or indirectly
Level 3 - based on valuation techniques for which the lowest level input that is significant to the fair value measurement isunobservable
When multiple inputs are used to measure fair value, the fair value level is determined based on the input with the lowest levelclassification in the overall fair value assessment.

－

35 －

The following tables illustrate the fair value measurement hierarchy of the Group’s financial instruments:(Millions of yen)
As at 31 August 2020

Level 1

Financial assets measured at fair value
through other comprehensive income

Level 2

Level 3

Total

1,158

-

212

1,370

Net financial assets and financial liabilities
measured at fair value through profit or loss

-

1,550

-

1,550

Net financial assets and financial liabilities
designated as hedging instruments - Fair value-

17,878-17,878

1,158

19,428212

20,799Fair value(Millions of yen)
As at 31 May 2021

Level 1

Financial assets measured at fair value
through other comprehensive income
Net financial assets and financial liabilities

Level 3

Total

1,059

-

213

1,273

-

272

-

272

-

45,483-45,483

1,059

45,755

213

47,029measured at fair value through profit or loss
Net financial assets and financial liabilities
designated as hedging instruments - Fair value
Fair value

Level 2For the valuation of Level 2 derivative financial instruments for which a market value is available, we use a valuation model thatuses observable data on the measurement date using inputs such as interest rates, yield curves, currency rates and volatility incomparable instruments.
Financial instruments classified as Level 3 consist mainly of unlisted shares. The fair values of unlisted shares are measured by thedivision responsible in the Group according to the Group’s accounting policy, etc., using the immediately preceding figuresavailable for each quarter.
There were no significant changes due to the purchase, sale, issuance and settlement of Level 3 financial instruments, and notransfers between Levels 1, 2 and 3.
17. Commitments for Expenditures
The Group had the following commitments at each reporting date:(Millions of yen)
As at
31 August 2020

As at
31 May 2021

Commitment for the acquisition of property, plant and equipment

24,942

14,597

Commitment for the acquisition of intangible assets

2,139

2,246

27,081

16,843Total
18. Subsequent Events
Not applicable.

2. Others
Dividends
The Company resolved to pay dividends from retained earnings at the meeting of the Board convened on 8 April 2021.
The total amount of dividends paid and the amount per share are stated under “Financial Section 1. Interim Condensed
Consolidated Financial Statements, Notes to the Interim Condensed Consolidated Financial Statements 10. Dividends.”－

36 －(TRANSLATION)
Independent accountant’s review report
15 July 2021
To the Board of Directors of FAST RETAILING CO., LTD.:
Deloitte Touche Tohmatsu LLC
Tokyo office
Designated Engagement Partner,
Certified Public Accountant:
Koichi
Okubo
Designated Engagement Partner,
Certified Public Accountant:
Hirofumi
Otani

Accountant's Conclusion
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 of FAST RETAILING CO., LTD. and its consolidated subsidiaries (the "Group") includedin the Financial Section, namely, the interim condensed consolidated statement of financial position as at 31 May 2021, the interim
condensed consolidated statement of profit or loss and interim condensed consolidated statement of comprehensive income for thethree-month and nine-month periods then ended, the interim condensed consolidated statement of changes in equity and the interim
condensed consolidated statement of cash flows for the nine-month period then ended, and the related notes.
Based on our review, nothing has come to our attention that causes us to believe that the accompanying interim condensed
consolidated financial statements do not present fairly, in all material respects, the consolidated financial position of the Group as at 31
May 2021, and its consolidated financial performance for the three-month and nine-month periods then ended and its cash flows forthe nine-month period then ended in accordance with International Accounting Standards (“IAS”) 34 “Interim Financial Reporting”(“IAS 34”), pursuant to Article 93 of the “Rules Governing Term, Form and Preparation of Consolidated Quarterly Financial
Statements”.
Basis for Accountant's Conclusion
We conducted our review in accordance with quarterly review standards generally accepted in Japan. Our responsibility under thosestandards is further described in the Accountant's Responsibility for the Review of the Interim Condensed Consolidated Financial
Statements section of our report. We are independent of the Group in accordance with the provisions of the Code of Professional
Ethics in Japan, and we have fulfilled our other ethical responsibilities as accountants. We believe that we have obtained the evidence
to provide a basis for our review conclusion.
Responsibilities of Management and Statutory Auditors and the Board of Statutory Auditors for the Interim Condensed
Consolidated Financial Statements
Management is responsible for the preparation and fair presentation of the interim condensed consolidated financial statements inaccordance with IAS 34, and for such internal control as management determines is necessary to enable the preparation of interim
condensed consolidated financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the interim condensed consolidated financial statements, management is responsible for assessing the Group's ability tocontinue as a going concern, disclosing, as applicable, matters related to going concern in accordance with paragraph 4 of IAS 1“Presentation of Financial Statements” (“IAS 1”).
Statutory Auditors and the Board of Statutory Auditors are responsible for overseeing the Directors' execution of duties relating to thedesign and operating effectiveness of the controls over the Group's financial reporting process.
－37 －Accountant's Responsibility for the Review of the Interim Condensed Consolidated Financial Statements
Our objective is to issue an accountant's report that includes our conclusion.
As part of a review in accordance with quarterly review standards generally accepted in Japan, we exercise professional judgment andmaintain professional skepticism throughout the review. We also:•Make inquiries, primarily of management and persons responsible for financial and accounting matters, and apply analytical andother quarterly review procedures. A review is substantially less in scope than an audit conducted in accordance with auditing
standards generally accepted in Japan.
•Conclude whether nothing has come to our attention, based on the evidence obtained, related to going concern that causes us tobelieve that the interim condensed consolidated financial statements are not fairly presented, in all material respects, in accordancewith paragraph 4 of IAS 1, if we conclude that a material uncertainty exists related to events or conditions that may cast significant
doubt on the Group's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw
attention in our accountant's report to the related disclosures in the interim condensed consolidated financial statements or, if suchdisclosures are inadequate, to modify our conclusion. Our conclusions are based on the evidence obtained up to the date of our
accountant's report. However, future events or conditions may cause the Group to cease to continue as a going concern.
•Evaluate whether nothing has come to our attention that causes us to believe that the overall presentation and disclosures of theinterim condensed consolidated financial statements are not in accordance with IAS 34, as well as the overall presentation, structure
and content of the interim condensed consolidated financial statements, including the disclosures, and whether nothing has come toour attention that causes us to believe that the interim condensed consolidated financial statements do not represent the underlying
transactions and events in a manner that achieves fair presentation.
•Obtain evidence regarding the financial information of the entities or business activities within the Group to express a conclusion on
the interim condensed consolidated financial statements. We are responsible for the direction, supervision and performance of thereview of the interim condensed consolidated financial statements. We remain solely responsible for our conclusion.
We communicate with Statutory Auditors and the Board of Statutory Auditors regarding the planned scope and timing of the review
and significant findings that we identify during our review.
We also provide Statutory Auditors and the Board of Statutory Auditors with a statement that we have complied with relevant ethicalrequirements regarding independence, and communicate with them all relationships and other matters that may reasonably be thought
to bear on our independence, and where applicable, related safeguards.
Interest Required to Be Disclosed by the Certified Public Accountants Act of Japan
Our firm and its designated engagement partners do not have any interest in the Group which is required to be disclosed pursuant to
the provisions of the Certified Public Accountants Act of Japan.
Notes to the Readers of Independent Accountant's Review Report
This is an English translation of the independent accountant's review report as required by the Financial Instruments and Exchange Act
of Japan for the conveniences of the reader.

－38 －