FAST RETAILING CO., LTD.
迅 銷 有 限 公 司Interim Report 2022/23
2022.9.1–2023.2.28
Stock Code: 6288

Contents
1. Corporate Profile

1

2. Financial Highlights

2

3. Management Discussion and Analysis

4

4. Information about the Reporting Entity

9

5. Financial Section

19

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

20(2) Interim Condensed Consolidated Statement ofProfit or Loss and Interim Condensed Consolidated
Statement of Comprehensive Income
Interim Condensed Consolidated Statement of Profit or Loss

22

Interim Condensed Consolidated Statement ofComprehensive Income24(3) Interim Condensed Consolidated Statement of
Changes in Equity

26(4) Interim Condensed Consolidated Statement of Cash Flows28

2. Others

43

Independent Accountant’s Review Report441. Corporate Profile
Board of Directors
Representative Executive Director

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

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

Executive Directors
Takeshi Okazaki

Japan

Kazumi Yanai
Koji Yanai

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

Independent Non-executive Directors

No. 132 Nathan Road
Tsim Sha Tsui

Nobumichi Hattori (External)
Masaaki Shintaku (External)

KowloonHong Kong

Naotake Ono (External)
Kathy Mitsuko Koll (aka Kathy Matsui) (External)

HDR Registrar and HDR Transfer OfficeJoji Kurumado (External)
Yutaka Kyoya (External)

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

Board of Statutory Auditors

Hopewell Centre
183 Queen’s Road East

Masaaki Shinjo
Masumi Mizusawa

WanchaiHong Kong

Keiko Kaneko (External)
Takao Kashitani (External)

Stock Code

Masakatsu Mori (External)
Company Secretary
Shea Yee Man

Hong Kong: 6288
Japan: 9983
Website Address
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

- 1 -

2. Financial Highlights
Consolidated Financial Summary
Term

Half-yearly
periodof
61st Fiscal
Year

Half-yearly
periodof
62nd Fiscal
Year

61st Fiscal
Year

Accounting period

Six months
ended
28 February2022

Six months
ended
28 February
2023

Year ended
31 August2022

1,218,977

1,467,350

2,301,122

Operating profit (Millions of yen)

189,278

220,263

297,325

Profit before income taxes (Millions of yen)

212,566

230,499

413,584

146,844

153,392

273,335

194,448

124,748554,833

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

1,274,093

1,602,173

1,561,652

Total assets (Millions of yen)

2,641,596

3,015,617

3,183,762

Basic earnings per share (Yen)479.14500.29891.77

Diluted earnings per share (Yen)

478.40499.56890.43

48.2

53.1

49.1

264,654

177,454430,817(74,216)(472,762)(212,226)

Net cash (used in) / generated by financing activities (Millions ofyen)(108,025)(159,701)(213,050)

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

1,297,451

888,605

1,358,292

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)

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)

Three months
ended
28 February
2022

Three months
ended
28 February
2023

Revenue (Millions of yen)

591,585

750,957

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

53,252

68,318

Basic earnings per share for the period (Yen)

173.74222.80Accounting 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. 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”).
3. Our common stock has been split on a 3-to-1 basis, effective 1 March 2023. Basic earnings per share, and diluted earnings
per share have been calculated assuming this stock split was conducted at the beginning of the previous fiscal year.

- 2 -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 six months ended 28 February 2023.
In addition, there were no significant changes in the organizational structure of the Group, including the major subsidiaries, during thesix months ended 28 February 2023.

- 3 -3. Management Discussion and Analysis
Business Review
1. Business and Operational Risks
No new business-related risks have arisen during the six months ended 28 February 2023.
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 reported a significant increase in revenue and profits in the first half of fiscal 2023, or the six months
from 1 September 2022 to 28 February 2023, with consolidated revenue totaling 1.4673 trillion yen (+20.4% year-on-year) andoperating profit rising to 220.2 billion yen (+16.4% year-on-year). This record performance is proof that the policies we started
putting in place last year are steadily bearing fruit, including our determination to diversify global earnings pillars, strengthen ourbranding, conduct business that focuses on meeting customer needs and conveying product value, and actively accelerate newstore openings. UNIQLO operations in Southeast Asia, North America, and Europe regions along with our GU operation reported
particularly strong rises in revenue and profit in the first half. Fast Retailing’s consolidated gross profit margin declined by 1.1
points year-on-year to 50.5% while the selling, general and administrative expense ratio improved by 0.3 point year-on-year to35.7%. In addition, we recorded 10.2 billion yen under finance income net of costs due to higher interest income generated fromthe larger number of bonds under management. As a result, first-half profit before income taxes rose to 230.4 billion yen (+8.4%
year-on-year) and profit attributable to owners of the parent increased to 153.3 billion yen (+4.5% year-on-year).
The Fast Retailing Group is determined to strengthen initiatives designed to expand our business operations and promotesustainability in an integrated and united manner in order to become a global No.1 brand by focusing on: (1) creating customeroriented products, (2) accelerating global store openings, (3) building purchasing experiences that fuse physical stores and ecommerce, and (4) helping to solve various environmental and social issues. We are working especially hard at UNIQLOInternational, as the pillar operation of the Fast Retailing Group, to accelerate new store openings in all markets and to strengthen
our e-commerce operations. We aim to continue to expand our operations in the Greater China region (Mainland China market,
Hong Kong market, and Taiwan market) and the Southeast Asia, India & Australia, where we hope to further strengthen ouralready established brand position. In North America and Europe, we are aiming to further expand the scale of our business bystrengthening our marketing, promoting deeper understanding and loyalty towards our LifeWear ultimate everyday clothing, andaccelerating new store openings. We also intend to create clothes that prize LifeWear concepts in order to build a sustainable
society. We will continue to pursue our ultimate goals of creating high-quality, long-lasting clothes, clothes with a low
environmental impact that are produced in healthy and safe working environments, and clothes that can be further circulated, evenafter purchase, through recycling and reuse.
UNIQLO Japan
UNIQLO Japan reported a considerable increase in revenue in the first half of fiscal 2023. However, profits declined as thedepreciation in the Japanese yen resulted in higher cost of sales. As a result, first-half revenue totaled 495.1 billion yen (+11.9%
year-on-year) and first-half operating profit totaled 67.3 billion yen (−1.6% year-on-year). First-half same-store sales increased by
10.0% year-on-year. The strong revenue performance was due to firm sales of Fall Winter items and thermal Winter products such
as HEATTECH innerwear. Strong sales of Spring items, such as our Wide-fit pleated pants, as well as products that satisfied new
everyday needs, such as AirSense jacket, AirSense pants and shirts also boosted the first-half results. However, on the profit front,
the gross profit margin declined by 2.2 points year-on-year as procurement costs on additional product orders rose considerablyon the back of the sharp depreciation in the Japanese yen during the six-month period. The selling, general and administrative
expense ratio decreased by 0.5 point year-on-year as cost ratios primarily in the areas of store rents, personnel, and distribution
improved on the back the extremely strong sales performance during the second quarter from December 2022 to February 2023.
UNIQLO International
UNIQLO International reported a significant increase in both revenue and profit in the first half of fiscal 2023, with revenue
rising to 755.2 billion yen (+27.3% year-on-year) and operating profit expanding to 122.6 billion yen (+22.2% year-on-year). We
saw large increases in both revenue and profit at UNIQLO operations in the Southeast Asia, India & Australia, North America,
and Europe (ex. Russia), as these regions start to enter a genuine growth phase. The strong overall performance by UNIQLOInternational can be attributed to the fact that rapid changes in clothing demand over the past few years in the face of the COVID19 pandemic and rising inflation have fueled consumer appetite for LifeWear, our high-quality and long-lasting basic everyday
clothing. Our aggressive efforts to consistently expand business by strengthening our branding and pursuing community-based- 4 -commercial operations also supported the segment’s strong first-half results.
Breaking down the UNIQLO International performance into individual regions and markets (in local-currency terms), the Greater
China region reported a dip in revenue and a sharp fall in profits in the first half of fiscal 2023. This was due to a large decline inrevenue and profit in the Mainland China market caused by the heavy impact of COVID-19 in the first quarter. However, sales
did start to recover in January, resulting in a slight decline in second-quarter revenue and a sharp increase in second-quarter profit,
so overall performance is now on a recovery track. UNIQLO South Korea reported higher revenue and profit in the first half offiscal 2023. Meanwhile, revenue and profit both rose considerably in Southeast Asia, India & Australia as we successfully andconsistently conveyed information primarily about our core products and expanded our customer base. UNIQLO North America
reported significantly higher revenue and profit in the first half. Strong marketing of core Winter items and the timely conveyanceof information to coincide with seasonal sales helped fuel significant increases in same-store sales throughout the six-month
period. Europe (ex. Russia) reported much higher revenue and profit in the first half as our consistent efforts to appeal thesuperior functionality and value of our products proved to be successful and helped expand our customer base.
GU
The GU business segment reported large increases in both revenue and profit in the first half of fiscal 2023, with revenue rising to145.5 billion yen (+18.5% year-on-year) and operating profit totaling 13.0 billion yen (+39.2% year-on-year). GU same-store
sales rose significantly in the first half as we pursued some bold strategies that involved successfully narrowing down the numberof product numbers on offer and ensuring a sufficient supply of mass-trend products. Sales of heat padded outerwear, super wide
cargo pants, and baggy slacks proved especially strong. While the GU gross profit margin did decline 1.8 points year-on-year, thiswas due primarily to the rapid depreciation of the Japanese yen over the first half, which resulted in sharply higher procurement
costs on additional product orders and an increase in cost of sales. Meanwhile, the selling, general and administrative expense
ratio improved by 1.5 points year-on-year on the back of strong overall sales and appropriate control of business costs.
Global Brands
The Global Brands segment reported a large rise in revenue but a decline in profit in the first half of fiscal 2023, with revenue
rising to 70.2 billion (+19.1% year-on-year) and an operating profit contracting to 0.1 billion yen (−85.3% year-on-year). While
our Theory brand generated much higher revenue, it also reported a decline in first-half profit. This was due primarily to a decline
in the gross profit margin at Theory’s United States operation after we prioritized selling inventory at a reduced price as well as afall in profits from Theory’s Asian operation, which is concentrated primarily in Greater China, due to COVID-19. Theory Japan,
however, reported a large rise in both revenue and profit as department-store customer visits recovered and our decision to
strategically build up stocks of strong-selling items proved successful. Meanwhile, our PLST brand generated slightly higher
revenue and a marginally smaller loss, and our France-based Comptoir des Cotonniers brand reported a decline in revenue and aslightly higher operating loss over the six-month period.
Sustainability
Fast Retailing is advancing its LifeWear concept—the ultimate in everyday clothing, designed to make everyone's life better—tocreate apparel that not only emphasizes quality, design, and price but also meets the definition of good clothing from thestandpoint of the environment, people and society. Our sustainability activities focus on six priority material areas: Creating newvalue through products and services; Respecting human rights and labor environment in our supply chain; Respecting theenvironment; Strengthening communities; Supporting employee fulfillment; and Implementing good corporate governance. The
main company activities during the second-quarter consolidated accounting period are as follows.
■Creating new value through products and services: UNIQLO is promoting the PEACE FOR ALL initiative, in which graphic Tshirts designed by celebrities who agree with our desire to take action for world peace are sold worldwide at UNIQLO stores andonline, with all profits (equivalent to 20% of the sale price per shirt) donated to the three organizations with which we haveformed a partnership. Donations are used to support activities that help those affected by poverty, discrimination, violence,
conflict and war. By the end of February 2023, proceeds from PEACE FOR ALL activities totaled JPY 322 million. We willcontinue to sell this series of graphic T-shirts designed by international celebrities who have given their support for changing our
future through the power of clothing.
■ Respecting human rights and labor environment in our supply chain: We are also continually improving our efforts to addresshuman rights and labor issues throughout our entire supply chain. At garment factories and fabric mills, we are performing clear
checks on the labor environment and other conditions by ourselves or through third-party organizations. In addition, from spring
2023, we have concluded a Code of Conduct with upstream textile mills in our supply chain to ensure regular labor environment- 5 -audits are conducted and confirm traceability information.
■ Respecting the environment: As a result of our proactive initiatives and transparency on climate change and water security, we
have been recognized as a 2022 "A-List" company by CDP, an international non-profit organization that provides a platform forenvironmental disclosure. CDP's disclosure and evaluation process is widely recognized as the gold standard in corporate
environmental reporting. Of the more than 10,000 international companies evaluated by CDP this year, Fast Retailing was one of
only a few companies to receive "A-List" recognition in both climate change and water security.
■ Strengthening communities: At the request of our global partner, the United Nations High Commissioner for Refugees(UNHCR), we have decided to provide emergency assistance to the victims of the major earthquake that struck Türkiye and Syria
on 6 February 2023. Through UNHCR, we are donating EUR 1 million (approximately JPY 140 million) in addition to relief
clothing, including UNIQLO HEATTECH.
■ Supporting employee fulfillment: We are implementing various initiatives to promote diversity in four priority areas ofgender, Global One Team, disabilities and LGBTQ+, including the introduction of systems and training programs to support
relevant parties. In February 2023, we received a diversity score of 96 points (out of 100) and received the highest possible ratingof "Best Workplace" in the 2022 D&I Awards, which evaluate companies' efforts to promote diversity and inclusion. This award
recognizes our efforts to create a work environment that respects the individuality of each employee and provides equal
opportunities to take on challenges and expand individuals' potential.
■Implementing good corporate governance: To enable rapid and transparent management, we have a number of committees areengaged in open and active discussions. The Nomination and Remuneration Advisory Committee discussed long-term incentives
for executives. The Human Rights Committee reported on the process of working environment monitoring at textile mills—a new
initiative—and on future measures to be taken. They also discussed measures to strengthen internal checks on the human rights
impact of our product design and marketing.
(ⅱ) Financial Position
Total assets as at 28 February 2023 were 3.0156 trillion yen, which was a decrease of 168.1 billion yen relative to the end of thepreceding fiscal year. The principal factors were a decrease of 469.6 billion yen in cash and cash equivalents, an increase of 11.1
billion yen in trade and other receivables, an increase of 309.2 billion yen in other current financial assets, a decrease of 48.2
billion yen in inventories, a decrease of 89.2 billion yen in derivative financial assets, an increase of 16.0 billion yen in property,
plant and equipment and an increase of 100.5 billion yen in non-current financial assets.
Total liabilities as at 28 February 2023 were 1.3576 trillion yen, which was a decrease of 210.7 billion yen relative to the end of
the preceding fiscal year. The principal factors were a decrease of 107.9 billion yen in trade and other payables, a decrease of 39.3
billion yen in other current financial liabilities, a decrease of 25.3 billion yen in current tax liabilities, a decrease of 8.9 billion yen
in other current liabilities, a decrease of 12.9 billion yen in lease liabilities, a decrease of 29.4 billion yen in deferred tax liabilities
and an increase of 11.7 billion yen in derivative financial liabilities.
Total net assets as at 28 February 2023 were 1.6579 trillion yen, which was an increase of 42.5 billion yen relative to the end of
the preceding fiscal year. The principal factors were an increase of 118.7 billion yen in retained earnings and a decrease of 78.3
billion yen in other components of equity.

- 6 -(2) Cash Flows Information
Cash and cash equivalents as at 28 February 2023 had decreased by 469.6 billion yen from the end of the preceding fiscal year, to888.6 billion yen.
(Operating Cash Flows)
Net cash generated by operating activities for the six months ended 28 February 2023 was 177.4 billion yen (264.6 billion yen
was generated during the six months ended 28 February 2022). The principal factors were cash inflow from profit before tax for
230.4 billion yen and depreciation and amortization for 93.2 billion yen, and cash outflow from decrease in trade and otherpayables for 106.1 billion yen and taxes paid for 95.4 billion yen.
(Investing Cash Flows)
Net cash used in investing activities for the six months ended 28 February 2023 was 472.7 billion yen (74.2 billion yen was usedduring the six months ended 28 February 2022). The principal factors were a net increase of 149.4 billion yen in bank deposits
with original maturities of three months or longer, and 267.4 billion yen in payments for acquisition of investment securities.
(Financing Cash Flows)
Net cash used in financing activities for the six months ended 28 February 2023 was 159.7 billion yen (108.0 billion yen wasused during the six months ended 28 February 2022). The principal factors were 50.0 billion yen in repayment of redemption ofbonds, and 67.8 billion yen in repayments of lease liabilities.
(3) Estimates and Assumptions Used for Those Estimates in the Accounting
For the second-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 six months ended 28 February 2023 that must be addressed by the Group.
(5) Research and Development
Not applicable.
(6) Significant Facilities
The following are the significant facilities that were newly completed during the six months ended 28 February 2023.
<Subsidiaries in Japan>
Company nameUNIQLO CO., LTD.
GU CO., LTD.

Type of facility

Name of business

Location

UNIQLO Japan

IchikawashiohamaJapanwarehouses

DC Warehouses

Chiba

GU Japanwarehouses

Ibarakikita DC
warehouses

Japan
Osaka

Completion date
September 2022
January 2023

<Overseas Subsidiaries>
Not applicable.
The following are the significant facilities that were newly planned during the six months ended 28 February 2023.
<Subsidiaries in Japan>
Company nameUNIQLO CO., LTD.

Type of facility

Name of business

UNIQLO Japan
storesItabashihasune
store

- 7 -

Location
Japan
Tokyo

Completion date
April 2023

<Overseas Subsidiaries>
Company name
FAST RETAILING(CHINA)TRADING CO., LTD.

Type of facility
UNIQLO
overseas
warehouses

Name of businessShanghai DC
warehouse

3. Significant Contracts in Business Operation
None.

- 8 -

Location
China
ShanghaiCompletion date

May 2023

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

Total number of authorized shares (shares)

Common stock

300,000,000

Total

300,000,000(Note) Based on a resolution at the Board of Directors meeting held on 15 December 2022, we have partially amended the Articles ofIncorporation and increased the total number of authorized shares by 600,000,000 shares to 900,000,000 shares as a result of
this stock split on 1 March 2023.
(ii) Shares Issued

Type

Number of shares issued
as at 28 February 2023
(shares)Number of shares issued
as at submission date(shares)(As at 14 April 2023)

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

Remarks

Prime market of the
Tokyo
Common stock

106,073,656

318,220,968

Stock Exchange andthe Main Board of
the Stock Exchange ofHong Kong Limited

100 sharesas one unit

(Note 1)
Total

106,073,656

318,220,968--(Notes) 1. Hong Kong Depositary Receipts are listed on the Main Board of the Stock Exchange of Hong Kong Limited.
2. Based on a resolution at the Board of Directors meeting held on 15 December 2022, our common stock was split on a 3-to-1
basis on 1 March 2023. As a result, the total number of issued shares has increased by 212,147,312 to 318,220,968.

- 9 -(2) Share Subscription Rights
1. Details of the Stock Option Program
The Company has instituted a stock option program that grants rights to acquire new shares pursuant to the Companies Act ofJapan. Share subscription rights issued in the three months ended 28 February 2023 are as follows:(i) 13th Share subscription rights A type
Resolution date

15 December 2022

Class and number of recipients (Persons)

Employees of the Company: 37

Number of stock options (Shares)

7,987

Type of shares to be issued upon exercise of share

Common Stocksubscription rights
Number of shares to be issued upon exercise of sharesubscription rights (Shares)

7,987

Amount to be paid upon exercise of share subscription rights

Number of shares allocated times 1 yen exercise price pershare for all shares to be obtained through exercise of the(Yen)share subscription rights.

Exercise period of share subscription rights

From 20 January 2026
to 19 January 2033

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

Issue price: 70,817
Paid-in capital: 35,409
If a holder of share subscription rights waives the right toExercise conditions of share subscription rights

Matters pertaining to transfer of share subscription rights

acquire shares, the share subscription rights shall be forfeited
and may not be exercised.
Any acquisition of share subscription rights by transfer shallrequire an authorizing resolution from the Board of Directors.

Matters pertaining to issuing of share subscription rights in(Notes)conjunction with reorganization*The above information is disclosed as at the date of issuing share subscription rights (20 January 2023).
(Notes) Upon any reorganization of the Company (collectively referred to as “Reorganization”) consisting of a merger (limited tocases where the Company becomes extinct thereby), absorption-type company split or incorporation-type company split (ineach event, limited to cases where the Company is the entity resulting from the company split), or exchange or transfer ofshares (in each event, limited to cases where the Company becomes a wholly owned subsidiary), parties holding sharesubscription 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 share subscription rights for shares of theresulting company as prescribed in 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 new share subscription rights; however, provided that terms and conditions
stipulating that the Company Resulting from Reorganization shall issue share subscription rights that prescribe the mattersstated below shall be included in any absorption merger agreement, new merger agreement, absorption-type company split
agreement, incorporation-type company 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 and numberof shares underlying the above-mentioned share subscription rights.

- 10 -

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 the amountobtained by multiplying the exercise price after reorganization prescribed below by the number of shares of the Company
Resulting from Reorganization underlying the share subscription rights that have been finalized as stated in No. 3. above.
The exercise price after Reorganization shall be 1 yen per share of the Company Resulting from Reorganization that can beissued upon exercise of each share subscription right that is issued.
5. Period during which share subscription rights can be exercised:
The period from the later of either the first day of the period during which share subscription rights can be exercised asprescribed above or the day on which a Reorganization takes effect through the final day of the period during which sharesubscription 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 theshare 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 Directorsof 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.

- 11 -

(ii) 13th Share subscription rights F type
Resolution date

15 December 2022

Class and number of recipients (Persons)

Employees of the Company: 2

Number of stock options (Shares)

18,305

Type of shares to be issued upon exercise of sharesubscription rights

Common Stock

Number of shares to be issued upon exercise of share

18,305subscription rights (Shares)

Number of shares allocated times 1 yen exercise price per

Amount to be paid upon exercise of share subscription rights(Yen)share for all shares to be obtained through exercise of theshare subscription rights.
From 20 January 2028

Exercise period of share subscription rights

to 19 January 2033

Fair value on the grant date and amount of paid-in capital per

Issue price: 70,232

share upon exercise of share subscription rights (Yen)

Paid-in capital: 35,116

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 Board of Directors.

Matters pertaining to issuing of share subscription rights inconjunction with reorganization(Notes)*The above information is disclosed as at the date of issuing share subscription rights (20 January 2023).
(Notes) Upon any reorganization of the Company (collectively referred to as “Reorganization”) consisting of merger (limited to cases
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 exchange or transfer of shares (ineach 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 share subscription rights for shares of the resulting
company as prescribed in 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 new share subscription rights; however provided terms and conditions stipulatingthat 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-type company 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 and numberof 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 the amountobtained by multiplying the exercise price after reorganization prescribed below by the number of shares of the Company
Resulting from Reorganization underlying the share subscription rights that have been finalized as stated in No. 3. above.
The exercise price after Reorganization shall be 1 yen per share of the Company Resulting from Reorganization that can beissued upon exercise of each share subscription right that is issued.

- 12 -

5. Period during which share subscription rights can be exercised:
The period from the later of either the first day of the period during which share subscription rights can be exercised asprescribed above or the day on which a Reorganization takes effect through the final day of the period during which sharesubscription 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 theshare 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 Directorsof 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.

- 13 -

(iii) 13th Share subscription rights G type
Resolution date

15 December 2022

Class and number of recipients (Persons)

Employees of the Company: 7

Number of stock options (Shares)

48,815

Type of shares to be issued upon exercise of sharesubscription rights

Common Stock

Number of shares to be issued upon exercise of share

48,815subscription rights (Shares)

Number of shares allocated times 1 yen exercise price per

Amount to be paid upon exercise of share subscription rights(Yen)share for all shares to be obtained through exercise of theshare subscription rights.
From 20 January 2028

Exercise period of share subscription rights

to 19 January 2063

Fair value on the grant date and amount of paid-in capital per

Issue price: 62,010

share upon exercise of share subscription rights (Yen)

Paid-in capital: 31,005

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 Board of Directors.

Matters pertaining to issuing of share subscription rights inconjunction with reorganization(Notes)*The above information is disclosed as at the date of issuing share subscription rights (20 January 2023).
(Notes) Upon any reorganization of the Company (collectively referred to as “Reorganization”) consisting of merger (limited to cases
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 exchange or transfer of shares (ineach 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 share subscription rights for shares of the resulting
company as prescribed in 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 new share subscription rights; however provided that terms and conditions
stipulating that the Company Resulting from Reorganization shall issue share subscription rights that prescribe the mattersstated below shall be included in any absorption merger agreement, new merger agreement, absorption-type company split
agreement, incorporation-type company 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 and numberof 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 the amountobtained by multiplying the exercise price after reorganization prescribed below by the number of shares of the Company
Resulting from Reorganization underlying the share subscription rights that have been finalized as stated in No. 3. above.
The exercise price after Reorganization shall be 1 yen per share of the Company Resulting from Reorganization that can beissued upon exercise of each share subscription right that is issued.
5. Period during which share subscription rights can be exercised:
The period from the later of either the day on which share subscription rights can be exercised as prescribed above or the
day on which a Reorganization takes effect through the final day of the period during which share subscription rights can be- 14 -

exercised as prescribed above.
6. Matters pertaining to the increase of capital and capital reserve resulting from the issuance of shares upon exercise of theshare 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 Directorsof 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.
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/
Balance ofIncrease/(decrease) of
total(decrease) of
Date
total number of
number ofcapital stock
shares issued
shares issued(Millions of(shares)(shares)yen)

Balance ofcapital stock(Millions ofyen)

Increase/(decrease) ofcapital reserve(Millions ofyen)

Balance ofcapital reserve(Millions ofyen)

10,273-4,578

1 December 2022
to28 February 2023-

106,073,656-(Note) Based on a resolution at the Board of Directors meeting held on 15 December 2022, our common stock was split on a 3-to-1
basis on 1 March 2023. As a result, the total number of issued shares has increased by 212,147,312 to 318,220,968.

- 15 -

(5) Major Shareholders

Name or trade nameLocation

As at 28 February 2023
As a percentage
Number ofover total
shares heldnumber of(in thousands
sharesof shares)(excluding
treasury stock)

The Master Trust Bank of Japan, Ltd.

2-11-3 Hamamatsu-cho, Minato-ku,
Tokyo22,466

21.98

Tadashi Yanai

Shibuya-ku, Tokyo

20,977

20.52

Custody Bank of Japan, Ltd.

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

11,054

10.81

TTY Management B.V.

Prinsengracht 769A, 1017JZ Amsterdam,
The Netherlands

5,310

5.19

Kazumi Yanai

New York, U.S.A.

4,781

4.68

Koji Yanai

Shibuya-ku, Tokyo

4,781

4.68

Fight & Step Co., Ltd.

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

4,750

4.65

MASTERMIND, LLC

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

3,610

3.53

25 Bank St, London E14 5JP, Canary
Wharf, London, United Kingdom

2,405

2.35

2,359

2.31

82,49680.71

JP MORGAN CHASE BANK (Standing
proxy Mizuho Bank, Ltd.)(2-15-1, Konan, Minato-ku, Tokyo)

STATE STREET BANK AND TRUSTP.O. Box 351, Boston, Massachusetts,

COMPANY (Standing proxy Mizuho
Bank, Ltd.)U.S.A., 02101(2-15-1, Konan, Minato-ku, Tokyo)

Total

-

(Notes) 1. “Number of shares held” is rounded down to the nearest unit of thousand shares.
2. The shares held by The Master Trust Bank of Japan, Ltd. and Custody Bank of Japan, Ltd. are all held in conjunction withtrust businesses.
3. According to the report of large shareholdings (Report of Change of Composition) submitted on 20 October 2022 byNomura Securities Co., Ltd. and the two parties of Nomura International PLC and Nomura Asset Management Co., Ltd.,
which are all joint shareholders, each party held the shares stated below as at 14 October 2022. However, since theCompany has not been able to confirm the number of shares actually held as at 28 February 2023, these shareholdings havenot been included in the above table of major shareholders.

Name or trade nameLocation

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

Nomura Securities Co., Ltd.

1-13-1 Nihonbashi, Chuo-ku, Tokyo

50

0.05

Nomura International PLC

1 Angel Lane, London EC4R 3AB,
United Kingdom

59

0.06

Nomura Asset Management Co., Ltd.

2-2-1 Toyosu, Koto-ku, Tokyo

10,945

10.32- 16 -

4. According to the report of large shareholdings (Report of Change of Composition) submitted on 20 October 2022 by
Sumitomo Mitsui Trust Asset Management Co., Ltd. and the party of Nikko Asset Management Americas, Inc., Ltd., which
are joint shareholders, each party held the shares stated below as at 14 October 2022. However, since the Company has notbeen able to confirm the number of shares actually held as at 28 February 2023, these shareholdings have not been includedin the above table of major shareholders.

Name or trade name

Sumitomo Mitsui Trust AssetManagement Co., Ltd.
Nikko Asset Management Americas, Inc.

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

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

1,414

1.33

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

5,310

5.01

Location

5. In addition to the above, 3,859,655 shares of treasury stock are held by the Company (3.64% of the total number ofoutstanding shares).
6. Based on a resolution at the Board of Directors meeting held on 15 December 2022, our common stock was split on a 3-to-1
basis on 1 March 2023.

- 17 -

(6) Voting Rights(i) Shares issued
As at 28 February 2023
Number of shares(shares)Number of voting rights

Remarks

Non-voting shares

-

-

-

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

-

-

-

-

-

-

-

-

Class

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
3,859,600

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

Common stock
102,112,000

Shares less than one unit

Common stock
102,056-(Notes) 1, 2

106,073,656--

Total number of shares issued
Total number of voting rights of all

1,021,120-

shareholders(Note) 1

1,021,120-(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 55 shares of treasury stock held by the Company.
3. Based on a resolution at the Board of Directors meeting held on 15 December 2022, our common stock was split on a 3-to 1
basis on 1 March 2023. As a result, the total number of issued shares has increased by 212,147,312 to 318,220,968.
(ii) Treasury Stock

Name or trade name ofholderFAST RETAILING
CO., LTD.

Holder’s address
10717-1 Sayama,
Yamaguchi-shi,

As at 28 February 2023
Percentage ofTotal number of
total number ofshares held
shares issued(shares)(%)

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

3,859,600-

3,859,600

3.64

3,859,600-

3,859,600

3.64

Yamaguchi

Total

-

2. Directors
Since the submission of the year-end report for the preceding fiscal year, there has been no change of directors during the six
months ended 28 February 2023.

- 18 -

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 28 February 2023, the interim condensed consolidated statement of profit or loss and interim condensed
consolidated statement of comprehensive income for the three-month and six-month periods then ended, the interim condensed
consolidated statement of changes in equity and interim condensed consolidated statements of cash flows for the six-month period
then ended, and the related notes (collectively, the “interim condensed consolidated financial statements”) were prepared inaccordance with International Accounting Standard 34, Interim Financial Reporting (“IAS 34”), pursuant to Article 93 of the “Rules
Governing Term, Form and Preparation of Consolidated Quarterly Financial Statements” (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.

- 19 -

(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 2022

As at 28 February 2023

1,358,292

888,605

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

16

60,184
123,446

71,343432,702

Inventories
Derivative financial assets

6
16

485,928
124,551437,671
92,122

2,612
23,8352,569
23,8082,178,851

1,948,823

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

7,8

195,226

211,242

Right-of-use assets
Goodwill

8395,634
8,092

390,2818,092

Intangible assets
Financial assets
Investments in associates accounted for using

8
16

76,621
164,340

82,574
264,874

18,557

18,760the equity method
Deferred tax assets
Derivative financial assets
Other assets

16
8

Total non-current assets
Total assets

8,506

10,074

134,240
3,690

77,4003,492

1,004,911

1,066,793

3,183,762

3,015,617

350,294
209,286

242,345
169,947

1,513
123,885

3,781
129,038

77,1622,581

51,852
2,804

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

9, 16
16

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

16

Provisions
Deferred tax liabilities
Derivative financial liabilities
Other liabilities

16

Total non-current liabilities
Total liabilities- 20 -

111,519

102,603876,242

702,373

241,022356,840

240,934
338,697

47,78044,25849,216
14,855

44
2,171

9,526
2,044

692,117655,274

1,568,360

1,357,648

Notes

As at 31 August 2022

As at 28 February 2023

10,273

10,273

27,834
1,275,102

27,946
1,393,811(14,813)
263,255(14,723)
184,864

Equity attributable to owners of the Parent
Non-controlling interests

1,561,652
53,7501,602,173
55,795

Total equity

1,615,402

1,657,969

3,183,762

3,015,617

EQUITY
Capital stock
Capital surplus
Retained earnings
Treasury stock, at cost
Other components of equity

Total liabilities and equity- 21 -

(2) Interim Condensed Consolidated Statement of Profit or Loss and Interim Condensed Consolidated Statement of Comprehensive
IncomeInterim Condensed Consolidated Statement of Profit or Loss
Six months ended 28 February 2023
(Millions of yen)

Revenue

Notes

Six months ended
28 February 2022

Six months ended
28 February 2023

11

1,218,977

1,467,350(589,891)(725,830)

Cost of sales
Gross profit
Selling, general and administrative expenses

12

629,085(439,265)

741,520(524,210)

Other income
Other expenses

13
8,13

6,652
(7,770)5,529(3,211)

576

635

189,278
26,694

220,263
17,075

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

14

Finance costs

14(3,407)(6,839)Profit before income taxes
Income tax expense

212,566(58,183)

230,499(65,868)

Profit for the period

154,382

164,631

Owners of the Parent
Non-controlling interests

146,844
7,537

153,392
11,238

Total

154,382

164,631

Profit for the period attributable to:Earnings per share
Basic (yen)15479.14500.29Diluted (yen)15478.40499.56- 22 -

Three months ended 28 February 2023
(Millions of yen)
Notes
Revenue
Cost of sales

Three months ended
28 February 2022

Three months ended
28 February 2023

591,585(301,126)

750,957(389,720)

Gross profit

290,458

361,236

Selling, general and administrative expenses
Other income(216,813)
2,964(259,176)
3,093

Other expenses
Share of profit and loss of associates accounted(6,882)(2,153)

144

185

Operating profit

69,871

103,185

Finance income
Finance costs

10,171(1,685)

8,689(8,188)

Profit before income taxes

78,357

103,687

Income tax expense(21,595)(28,887)

Profit for the period

56,76274,800

Profit for the period attributable to:
Owners of the Parent

for using the equity method

53,252

68,318Non-controlling interests

3,510

6,482

Total

56,76274,800173.74173.47222.80222.45

Earnings per share
Basic (yen)Diluted (yen)1515- 23 -

Interim Condensed Consolidated Statement of Comprehensive Income
Six months ended 28 February 2022
(Millions of yen)Six months ended
28 February 2022

Six months ended
28 February 2023

154,382

164,631

(57)

(6)

(57)

(6)

Items that may be reclassified subsequently to profit or loss
Exchange differences on translating foreign operations

16,961(17,581)

Cash flow hedges
Share of other comprehensive income of associates

30,561
7(13,094)2

Total items that may be reclassified subsequently to profit
or loss

47,531(30,673)

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 through othercomprehensive income / (loss)
Total items that will not be reclassified subsequently to
profit or loss

47,473(30,680)

Total comprehensive income for the period

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

201,856

133,950

Attributable to:
Owners of the Parent

194,448

124,748

7,407

9,202

201,856

133,950

Non-controlling interests
Total comprehensive income for the period- 24 -

Three months ended 28 February 2023
(Millions of yen)Three months ended
28 February 2022

Three months ended
28 February 2023

56,76274,800

0

16

0

16

938

(8,372)

11,848(10,221)

Share of other comprehensive income / (loss) of
associates

5

(17)

Total items that may be reclassified subsequently to
profit or loss

12,792(18,610)

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

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

12,793(18,593)

Total comprehensive income for the period

69,55656,206

Attributable to:
Owners of the Parent

67,29550,767

Non-controlling interests

2,260

5,439

Total comprehensive income for the period

69,55656,206- 25 -

(3) Interim Condensed Consolidated Statement of Changes in Equity
For the six months ended 28 February 2022
(Millions of yen)
Other components of equity

Note

As at 1 September 2021
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
assetsTransfer to retained
earnings
Changes in ownershipinterests in subsidiaries
without losing control
Total transactions with theowners of the Parent
Total net changes during theperiodAs at 28 February 2022

10

Treasury Financial assets
stock, measured at fair Foreignvalue
currency
at costthrough other translation
comprehensive reserveincomeCapitalstock

CapitalsurplusRetainedearnings

10,27325,3601,054,791(14,973)--

146,844

-

-

-

-

-

-

-

-

(57)

17,51430,138--146,844-(57)

17,51430,138

-

-

-

(3)

-

-

-

1,322
1,030

(24,514)
-

111
-

-

-

-

-

-

-

-

-

-

57

-

-

-

-

-

2,352

(24,457)

271

9,855

Share of otherCash flow
comprehensive
hedge
income ofreserveassociates
30,89013Equityattributable
Nonto owners controllingof theinterests
Parent

Total

Total
equity41,031

1,116,484

45,813

1,162,298--

146,844

7,537

154,382

7

47,60347,603(130)

47,473

7

47,603

194,4487,407

201,856

-

-

-

(3)

-

(3)

-

-

-

1,434
(24,514)1,030(5,850)-1,434(30,364)
1,030-(14,786)-(14,786)(14,786)(26)(14,812)

(57)

-

-

-

(57)

-

-

-

-

-

-

-

-

-

-

402

402

108

(57)

-

(14,786)-(14,843)(36,839)(5,473)(42,312)-2,352

122,387

108

(115)

17,514

15,352

7

32,760157,608

1,934

159,543

10,27327,713

1,177,178(14,864)

156

27,37046,243

21

73,791

1,274,093

47,747

1,321,841- 26 -

For the six months ended 28 February 2023
(Millions of yen)
Other components of equity

Note

As at 1 September 2022
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
assetsTransfer to retained
earnings
Total transactions with theowners of the Parent
Total net changes during theperiodAs at 28 February 2023

10

Treasury Financial assets
stock, measured at fair Foreignvalue
currency
at costthrough other translation
comprehensive reserveincomeEquityattributable
Nonto owners controllingof theinterests
ParentCapitalstock

CapitalsurplusRetainedearnings

10,273

27,834

1,275,102(14,813)131

100,587

162,407129

263,255

1,561,652

53,7501,615,402--

153,392

-

-

-

-

-

-

153,392

11,238

164,631

-

-

-

-

(6)

(17,105)(11,534)

2(28,643)(28,643)(2,036)(30,680)--

153,392-(6)(17,105)(11,534)

2(28,643)

124,748

9,202

133,950

-

-

-

(2)

-

-

-

-

-

(2)

-

(2)

-

1,185
(1,073)(34,744)
-

92
-

-

-

-

-

-

1,278
(34,744)(1,073)(6,529)-1,278(41,274)(1,073)

-

-

-

-

-

-

(49,685)-(49,685)(49,685)(626)(50,312)

-

-

61

-

(61)

-

-

-

(61)

-

-

-

-

112

(34,683)

89

(61)

-

(49,685)-(49,747)(84,227)(7,156)(91,384)

Share of otherCash flow
comprehensive
hedge
income ofreserveassociates

Total

Total
equity-112

118,70989(67)(17,105)(61,220)2(78,390)

40,5202,045

42,566

10,27327,946

1,393,811(14,723)

63

83,481

101,187

132

184,864

1,602,173

55,795

1,657,969- 27 -

(4) Interim Condensed Consolidated Statement of Cash Flows(Millions of yen)Six months ended
28 February 2022

Six months ended
28 February 2023

Cash flows from operating activities
Profit before income taxes

212,566

230,499

Depreciation and amortization
Impairment losses

88,254
6,086

93,253783

Interest and dividend income
Interest expenses(3,069)3,359(17,075)
5,076

Foreign exchange losses / (gains)Share of profit and loss of associates accounted for using(23,576)

1,762

(576)

(635)

Notes

8

the equity method
Losses on disposal of property, plant and equipment

663

251

(Increase) / Decrease in trade and other receivables(Increase) / Decrease in inventories(4,471)
50,108(15,680)
45,244

Increase / (Decrease) in trade and other payables(Increase) / Decrease in other assets(14,429)(4,364)(106,189)
1,906

1,168
2,442

3,576
23,458Cash generated from operations

314,159

266,233

Interest and dividends income received
Interest paid

2,594
(2,889)11,731(5,102)

Income taxes paid
Income taxes refunded(55,461)6,251(95,407)-

Net cash generated by / (used in) operating activities

264,654

177,454

Amounts deposited into bank deposits with original
maturities of three months or longer(96,317)(230,140)

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

60,90280,676

Payments for property, plant and equipment
Payments for intangible assets(26,926)(12,181)(37,629)(16,467)

(382)
-

(785)
(346,998)

Proceeds from sale and redemption of investment securities
Payments for lease and guarantee deposits(2,005)79,549(2,202)

Proceeds from collection of lease and guarantee deposits
Others, net

2,511
183

2,326
(1,090)(74,216)(472,762)

Increase / (Decrease) in other liabilities
Others, net

Cash flows from investing activities

Payments for acquisition of right-of-use assets
Payments for acquisition of investment securities

Net cash generated by / (used in) investing activities- 28 -

(Millions of yen)
Notes

Six months ended
28 February 2022

Six months ended
28 February 2023

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

9,816

2,260

Repayment of short-term loans payable
Repayment of redemption of bonds(21,738)-(3,048)(50,000)(24,456)(5,250)(34,838)(6,306)

Repayments of lease liabilities
Others, net(66,907)511(67,858)
89

Net cash generated by / (used in) financing activities(108,025)(159,701)

37,302(14,676)

9

Dividends paid to owners of the Parent
Dividends paid to non-controlling interests

10

Effect of exchange rate changes on the balance of cash held
in foreign currencies
Net increase / (decrease) in cash and cash equivalents

119,715(469,686)

Cash and cash equivalents at the beginning of period

1,177,736

1,358,292

Cash and cash equivalents at the end of period

1,297,451

888,605- 29 -

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) and Theory business (i.e., apparel design and retail business inJapan and overseas), etc.
2. Basis of Preparation
The interim condensed consolidated financial statements have been prepared in accordance with IAS 34. The Group meets all of
the criteria of a “specified company” defined under Article 1-2 of the Consolidated Quarterly Financial Statements Rules 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 be read in conjunction with the Group’s annual consolidated financial statements for the year ended 31 August 2022.
The interim condensed consolidated financial statements were approved on 13 April 2023 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 2022 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.
The Company made accounting estimates involving the assumption that the impact of the global spread of COVID-19 will continue
to recover for most countries and regions, including Japan. For other countries and regions, the impact may continue for mid to longterm.
In principle, estimates and judgments that have significant effects on the amounts recognized in the interim condensed consolidated
financial statements are the same as those in the preceding fiscal year.

- 30 -

5. Segment Information(i) Description of reportable segments
The Group’s reportable segments are components for which discrete financial information is available and 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 and PRINCESSE TAM.TAM clothing business(Changes to classification of reportable segment)
From the three months ended 30 November 2022, in accordance with the partial review of the performance management
segmentation, Royalty Department performance that had previously been presented under "UNIQLO Japan" is now included in
the “Adjustments”.
This is due to the increase in sales of UNIQLO International including Europe and United States and the accompanying increasein royalty revenue, which has resulted in a change in positioning of the Royalty Division to a corporate division.
The segment information for the six months ended 28 February 2022 and three months ended 28 February 2022 is based on therevised segmentation.
(ii) Segment revenue and results
For the six months ended 28 February 2022
Reportable segments
Total

Others(Note 1)

58,994

1,217,595

1,381

-

1,218,977

9,385

1,044

179,303(511)

10,486

189,278

101,072

9,534

865

181,700(545)

31,411

212,566

3,580

1,186

524

5,292

794

-

6,086

UNIQLOJapan

UNIQLOInternational

GU

GlobalBrands

Revenue

442,513593,263

122,824

Operating profit / (loss)

68,500100,373

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

70,228-Other disclosure:
Impairment losses(Note 3)

(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”.

- 31 -

For the six months ended 28 February 2023
Reportable segments
Total

Others(Note 1)

70,235

1,466,229

1,121

-

1,467,350

13,064

153

203,295

172

16,795220,263

123,00712,465(272)

203,404173

26,922

230,499

414

140

228

783

-

-

783

UNIQLOJapan

UNIQLOInternational

GU

GlobalBrands

Revenue

495,165

755,259

145,568

Operating profit / (loss)

67,399122,678

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

68,203-

Other disclosure:
Impairment losses(Note 3)

(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”.

- 32 -

For the three months ended 28 February 2022
Reportable segments
Total

Others(Note 1)

28,272590,864721-

591,585475(1,495)

66,114

(529)

4,286

69,871

41,237441(1,577)67,528(545)

11,37578,357

3,514

1,186

492

5,193

794

-

5,988

UNIQLOJapan

UNIQLOInternational

GU

GlobalBrands

Revenue

216,064

293,540

52,986

Operating profit / (loss)

26,671

40,463

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

27,427-

Other disclosure:
Impairment losses(Note 3)

(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 28 February 2023
(Millions of yen)
Reportable segments
Total

Others(Note 1)

Adjustments(Note 2)

Interim
Condensed
Consolidated
Statement ofProfit or Loss

UNIQLOJapan

UNIQLOInternational

GU

GlobalBrands

Revenue

254,216

397,362

66,204

32,630750,413543-

750,957

Operating profit / (loss)

27,926

65,385

2,433

(555)

95,189198

7,797

103,185

28,51965,579

1,803

(773)

95,128216

8,342

103,687

-

353

140

227

721

-

-

721

Segment income / (loss)(i.e., profit / (loss)
before income taxes)
Other disclosure:
Impairment losses(Note 3)(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”.

- 33 -

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

Write-down of inventories to net realizable value

Six months ended
28 February 2022

Six months ended
28 February 2023

4,080

4,664

7. Property, Plant and Equipment
The breakdown of the carrying amount of property, plant and equipment at each reporting date is as follows:(Millions of yen)
As at
31 August 2022

As at
28 February 2023

Buildings and structures

125,947

129,634

Machinery and equipment

29,71043,204

Furniture, fixtures and vehicles

26,06427,603

Land

1,927

1,927

Construction in progress

11,575

8,870

195,226

211,242Total
8. Impairment Losses
The breakdown of impairment losses by asset type is as follows:(Millions of yen)Six months ended
28 February 2022
Buildings and structures

2,047

Furniture, equipment and vehicles

44

Subtotal on property, plant and equipment

2,092

Software-

Other intangible assets

13

Subtotal on intangible assets

13

Right-of-use assets

3,978

Other non-current assets (long-term prepayments etc.)
Total impairment losses

2
6,086

The Group’s impairment losses during the six months ended 28 February 2023 amounted to 783 million yen, compared with 6,086
million yen during the six months ended 28 February 2022, and are included in “Other expenses” on the consolidated statement of
profit or loss.
Six months ended 28 February 2022
Property, plant and equipment and Right-of-use assets
Impairment losses amounting to 6,086 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 of the stores, etc. Although the- 34 -

timing for the situation subsiding differs from region to region and on a case-by-case basis, we made accounting estimates involving
the assumption that the impact will last for the fiscal year ending August 2022 for most countries and regions including Japan. For
stores in other certain countries and regions, it may take longer for the situation to get under control.
The grouping of assets is based on the smallest identifiable 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 approved by management,
applying a discount rate of mainly 11.8%. Theoretically, the projected cash flows cover a five-year period, and do not use a growthrate that exceeds the long-term average market growth rate. The pre-tax discount rate calculation is based on the weighted-average
cost of capital.
The main CGUs for which impairment losses were recorded are as follows:
Operating segment
UNIQLO International

CGU
FAST RETAILING (CHINA) TRADING
CO., LTD., LLC UNIQLO (RUS),
UNIQLO USA LLC, etc., stores

Type
Buildings, structures and Right-of-use
assets etc.

GU

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

Buildings, structures and Right-of-use
assets etc.

Global Brands

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

Buildings, structures and Right-of-use
assets etc.

Six months ended 28 February 2023
No significant impairment losses.

- 35 -

9. Corporate Bonds
The 3rd non-collateralized corporate bonds of 50,000 million yen (interest rate: 0.491%; date of maturity: 16 December 2022) was
repaid during the 6 months ended 28 February 2023.
10. Dividends
The total amount of dividends paid was as follows:
For the six months ended 28 February 2022
Resolution
Meeting of the Board on 2 November 2021

Total dividends(Millions of yen)

Dividends per share(Yen)

24,514240

Dividends were paid on 5 November 2021. The effective date of the dividend was for shareholders as at 31 August 2021.
For the six months ended 28 February 2023
Resolution
Meeting of the Board on 1 November 2022

Total dividends(Millions of yen)

Dividends per share(Yen)

34,744

340

Dividends were paid on 4 November 2022. The effective date of the dividend was for shareholders as at 31 August 2022.
Dividends on common stock declared subsequent to 28 February 2023 are as follows:

Total dividends (Million yen)
Dividends per share (yen)Six months ended
28 February 2022

Six months ended
28 February 2023

28,60838,330280

375

The Board has approved the dividends on common stock subsequent to 28 February 2023, and the amount is not recognized as aliability as at 28 February 2023.
Our common stock was split on a 3-to-1 basis, effective 1 March 2023. However, the amount of dividends per share is the same asprior to the stock split.

- 36 -

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.
Six months ended 28 February 2022
Revenue(Millions of yen)

Percentage of Total
(%)

Japan

442,513

36.3

Greater China

306,773

25.2

Other parts of Asia & Oceania

136,891

11.2

North America & Europe

149,598

12.3

1,035,777

85.0

GU (Note 2)

122,824

10.1

Global Brands (Note 3)

58,994

4.8

Others (Note 4)

1,381

0.1

1,218,977

100.0

UNIQLO (Note 1)

Total(Note 1) Revenue is classified by nation or region based on customer location.
The designated regions and countries 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,(Note 2) Main national and regional market:

Germany, Belgium, Spain, Sweden, the Netherlands, Denmark, Italy
Japan(Note 3) Main national and regional markets:
North America, Europe, Japan(Note 4) The “Others” category includes real estate leasing operations.

- 37 -Six months ended 28 February 2023
Revenue(Millions of yen)

Percentage of Total
(%)

Japan

495,165

33.7

Greater China

320,982

21.9

Other parts of Asia & Oceania

233,570

15.9

North America & Europe

200,706

13.7

1,250,425

85.2

GU (Note 2)

145,568

9.9

Global Brands (Note 3)

70,235

4.8

Others (Note 4)

1,121

0.1

1,467,350

100.0

UNIQLO (Note 1)

Total(Note 1) Revenue is classified by nation or region based on customer location.
The designated regions and countries 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,(Note 2) Main national and regional market:

Germany, Belgium, Spain, Sweden, the Netherlands, Denmark, Italy, Poland
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)Six months ended
28 February 2022

Six months ended
28 February 2023

Advertising and promotion

41,71949,596

Lease expenses

40,172

53,988Depreciation and amortization

88,254

93,253

Outsourcing

27,23030,317

Salaries

146,464

180,247

Distribution

49,99558,872Others45,42757,935439,265524,210

Selling, general and administrative expenses

Total- 38 -

13. Other Income and Other Expenses
The breakdown of other income and other expenses for each reporting period is as follows:(Millions of yen)Six months ended
28 February 2022

Six months ended
28 February 2023

Foreign exchange gains (Note)

2,197

2,908

Others

4,454

2,621

6,652

5,529

Other income

Total(Millions of yen)Six months ended
28 February 2022

Six months ended
28 February 2023

663

251

Impairment losses

6,086

783

Others

1,020

2,175

7,770

3,211

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)Six months ended
28 February 2022

Six months ended
28 February 2023

Foreign exchange gains (Note)

23,576-

Interest income

3,059

17,06958

526,694

17,075

Finance income

Others
Total(Millions of yen)Six months ended
28 February 2022

Six months ended
28 February 2023

-

1,762

3,359

5,076

48

－

3,407

6,839

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

- 39 -

15. Earnings per ShareSix months ended 28 February 2022
Equity per share attributable to ownersof the Parent (Yen)Six months ended 28 February 2023
4,156.62

Equity per share attributable to ownersof the Parent (Yen)

5,224.90

Basic earnings per share for the period (Yen)479.14

Basic earnings per share for the period (Yen)

500.29Diluted earnings per share for the period(Yen)

478.40

Diluted earnings per share for the period(Yen)

499.56(Note) 1. The basis for calculation of basic earnings per share and diluted earnings per share is as follows:
Six months ended
28 February 2022

Six months ended
28 February 2023

146,844

153,392--

146,844

153,392

306,476,386

306,605,049--

Increase in number of common stock (Shares)

470,290451,198(Number of share subscription rights included in increase)(470,290)(451,198)

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)

2. Our common stock has been split on a 3-to-1 basis, effective 1 March 2023. Equity per share attributable to owners of the
Parent, basic earnings per share for the period and diluted earnings per share for the period have been calculated assuming thisstock split was conducted at the beginning of the previous fiscal year.
Three months ended 28 February 2022
Basic earnings per share for the period (Yen)
Diluted earnings per share for the period(Yen)

Three months ended 28 February 2023
173.74173.47

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

222.80222.45(Note) 1. The basis for calculation of basic earnings per share and diluted earnings per share is as follows:
Three months ended
28 February 2022

Three months ended
28 February 2023

53,252

68,318--53,252

68,318306,500,591

306,629,942--

Increase in number of common stock (Shares)

480,764

481,215(Number of share subscription rights included in increase)(480,764)(481,215)

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)

- 40 -

2. Our common stock has been split on a 3-to-1 basis, effective 1 March 2023. Equity per share attributable to owners of the
Parent, basic earnings per share for the period and diluted earnings per share for the period have been calculated assuming thisstock split was conducted at the beginning of the previous fiscal year.
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 2022

As at 28 February 2023

Carrying
amounts

Fair value

Carrying
amounts

Fair value

Bonds

135,214134,264

399,968

396,947

Security deposits and guarantees

68,626

69,09368,383

68,254

203,840

203,357

468,352

465,201

369,589

370,513319,644316,589

369,589

370,513319,644316,589

Financial assets:

Total
Financial liabilities:
Corporate bonds
Total(Note) The amount above includes the outstanding balance of bonds and corporate bonds due within one year.
Notes concerning financial assets and financial liabilities for which carrying amount approximates fair value have been omitted.
The fair value of bonds is calculated with reference to publicly available market prices.
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 bonds, security deposits / guarantees, and corporate bonds are categorized 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 level
categorization in the overall fair value assessment.

- 41 -

The following tables illustrate the fair value measurement hierarchy of the Group’s financial instruments:(Millions of yen)
As at 31 August 2022

Level 1

Financial assets measured at fair value
through other comprehensive income

Level 2

Level 3

Total

301

-

189

490

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

(1,109)-(1,109)Net financial assets and financial liabilities
designated as hedging instruments - Fair value-

258,344-258,344

Fair value

301

257,234

189

257,725(Millions of yen)

As at 28 February 2023

Level 1

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

Level 3

Total

77

-

189

266

-

(40)

-

(40)

-

156,255-

156,25577

156,215189

156,482

measured 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 categorized as Level 3 consist mainly of unlisted shares. The fair values of unlisted shares are measured by
the division 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 2022

As at
28 February 2023

Commitment for the acquisition of property, plant and equipment

32,926

16,528Commitment for the acquisition of intangible assets

2,202

2,723

35,12819,252Total

18. Subsequent Events(Stock Split, Corresponding Changes in The Articles of Incorporation)
Based on a resolution at the Board of Directors meeting held on 15 December 2022, our common stock was split on a 3-to-1 basis
and we made the corresponding changes to the Articles of Incorporation on 1 March 2023.
1. Purpose of the Stock Split
This stock split is designed to reduce the level of investment units as part of our aim to further increase the liquidity of the Company’s
shares and expand the range of investors who hold the Company’s shares.
2. Overview of the Stock Split(1) Stock Split Method
Based on the record date of 28 February 2023, the Company conducted a three-for-one split for each common share owned byshareholders listed or recorded on the final register of shareholders on the record date.
- 42 -

(2) Increase in Number of Shares as a Result of the Stock Split
Total number of issued shares prior to stock split
Increase in number of shares as a result of the stock split
Total number of issued shares after the stock split
Total number of issuable shares after the stock split

106,073,656 shares
212,147,312 shares
318,220,968 shares
900,000,000 shares(3) Stock Split Schedule
Date of publication of record date: 9 February 2023
Record date: 28 February 2023
Effective date: 1 March 2023
(4) Impact on per share data
See "15. Earnings per Share" for details of impact on per-share data.
3. Corresponding Changes in The Articles of Incorporation(1) Reason for change
In view of this share split, in accordance with Article 184 No. 2 of the Japanese Companies Law, the change in the total number
of issuable shares listed in Article 6 of the Company's Articles of Incorporation took effect on 1 March 2023.
(2) Outline of changes
A summary of the changes is as follows:(Underlined segments Indicate amended items)
Current Articles of Incorporation

After Changes(Total number of Issuable Shares)(Total number of Issuable Shares)

Article 6 The total number of issuable shares of theCompany is 300,000,000 shares.

Article 6 The total number of issuable shares of theCompany is 900,000,000 shares.

(3) Schedule change
Board resolution date: 15 December 2022
Effective date: 1 March 2023

2. Others
Dividends
The Company resolved to pay dividends from retained earnings at the meeting of the Board convened on 13 April 2023.
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.”- 43 -

(TRANSLATION)
INDEPENDENT ACCOUNTANT'S REVIEW REPORT
14 April 2023
To the Board of Directors of
FAST RETAILING CO., LTD.:
Deloitte Touche Tohmatsu LLC
Tokyo office
Designated Engagement Partner,
Certified Public Accountant:
Hirofumi Otani
Designated Engagement Partner,
Certified Public Accountant:
Akira Kimotsuki
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 28 February 2023, theinterim condensed consolidated statement of profit or loss and interim condensed consolidated statement of comprehensive income forthe three-month and six-month periods then ended, the interim condensed consolidated statement of changes in equity and the interim
condensed consolidated statement of cash flows for the six-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 28
February 2023, and its consolidated financial performance for the three-month and six-month periods then ended and its consolidated
cash flows for the six-month period then ended in accordance with International Accounting Standard (“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.
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 and- 44 -

maintain 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
such disclosures 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 conclusionon the interim condensed consolidated financial statements. We are responsible for the direction, supervision and performance ofthe review 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.

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