FAST RETAILING CO., LTD.
迅銷有限公司Interim Report 2020/21
2020.9.1–2021.2.28
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

12

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

13(2) Interim Condensed Consolidated Statement ofProfit or Loss and Interim Condensed Consolidated
Statement of Comprehensive Income

15Interim Condensed Consolidated Statement of Profit or Loss

15

Interim Condensed Consolidated Statement ofComprehensive Income17(3) Interim Condensed Consolidated Statement of
Changes in Equity

19(4) Interim Condensed Consolidated Statement of Cash Flows21

2. Others

34

Independent Accountant’s Review Report351. Corporate Profile
Board of Directors
Representative Director

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

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

Directors
Takeshi Okazaki
Kazumi Yanai

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

Koji Yanai

No. 132 Nathan Road
Tsim Sha Tsui

External Directors
Toru Hambayashi

KowloonHong Kong

Nobumichi Hattori
Masaaki Shintaku

HDR Registrar and HDR Transfer Office

Takashi Nawa
Naotake Ohno

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

Board of Statutory Auditors

Hopewell Centre
183 Queen’s Road East

Akira Tanaka
Masaaki Shinjo

WanchaiHong Kong

Masumi Mizusawa
Keiko Kaneko (External)

Stock Code

Takao Kashitani (External)
Masakatsu Mori (External)

Hong Kong: 6288
Japan: 9983

Company Secretary

Website Address

Shea Yee Man

https://www.fastretailing.com

Independent Accountants
Deloitte Touche Tohmatsu LLC
Principal Banks
Sumitomo Mitsui Banking Corporation
MUFG Bank, Ltd.
Mizuho Bank, Ltd.
The Hong Kong and Shanghai Banking Corporation Limited
Registered Office and Headquarters
10717-1 Sayama
Yamaguchi City
Yamaguchi 754-0894
Japan

- 1 -

2. Financial Highlights
Consolidated Financial Summary
Half-yearly period Half-yearly periodofof59th Fiscal
60th Fiscal
Year
Year

Term

59th Fiscal
Year

Six months
ended
29 February
2020

Six months
ended
28 February
2021

Year ended
31 August2020

1,208,512

1,202,864

2,008,846

Operating profit (Millions of yen)

136,736

167,982

149,347

Profit before income taxes (Millions of yen)

150,859

171,482

152,868

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

100,459

105,868

90,357

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

140,153

127,401

110,134

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

1,020,308

1,056,228

956,562

Total assets (Millions of yen)

2,454,296

2,501,920

2,411,990

Basic earnings per share (Yen)984.21

1,036.76

885.15

Diluted earnings per share (Yen)982.491,035.04

883.62

41.6

42.2

39.7

Net cash generated by operating activities (Millions of yen)

236,680

352,125

264,868

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

(58,828)(41,037)(75,981)

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

(99,195)(201,334)(183,268)

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

1,184,303

1,220,854

1,093,531

Three months
ended
29 February
2020

Three months
ended
28 February
2021

Revenue (Millions of yen)

585,028583,066

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

29,55235,487

Basic earnings per share for the period (Yen)

289.51347.49Accounting period

Revenue (Millions of yen)

Ratio of equity attributable to owners of the Parent to total assets (%)

Accounting period(Notes) 1. FAST RETAILING CO., LTD. (the “Company”, the “Parent”, or the “Reporting entity”) prepared interim condensed
consolidated financial statements and therefore has not included the non-consolidated financial summary of the Reporting
entity.
2. Revenue does not include consumption taxes, etc.
3. The financial figures are sourced from the interim condensed consolidated financial statements or consolidated financial
statements prepared in accordance with International Financial Reporting Standards (“IFRS”).

- 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 2021.
In addition, there were no significant changes in the organizational structure of the Group, including the major subsidiaries, during thesix months ended 28 February 2021.

- 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 2021.
There have been no significant changes concerning business-related risks as stated in the annual report for the preceding fiscal year.

2. Financial Analysis(1) Financial Position and Results of Operations(ⅰ) Results of Operations
The Fast Retailing Group reported a decline in revenue but a large jump in profits in the first half of fiscal 2021, or the six months
from 1 September 2020 to 28 February 2021 with consolidated revenue totaling 1.2028 trillion yen (−0.5% year-on-year), andoperating profit rising strongly to 167.9 billion yen (+22.9% year-on-year). The rise in profit can be attributed primarily to large
increases in profit from UNIQLO operations in Japan and Greater China (Mainland China market, Hong Kong market, andTaiwan market). On the other hand, due to the especially severe impact of COVID-19, The UNIQLO South Asia, Southeast Asia
& Oceania (Southeast Asia, Australia, and India), UNIQLO North America, UNIQLO Europe regions and our Global Brands
segment reported considerable declines in both revenue and profit. The first-half consolidated gross profit margin improved by
2.2 points year-on-year to 49.9% and the first-half selling, general and administrative expense ratio improved by 1.3 points yearon-year to 35.0%. We reported an impairment loss primarily on UNIQLO International operations and other losses of 11.7 billion
yen under other income/expenses. In addition, we recorded a 4.7 billion yen foreign-exchange gain on foreign-currency
denominated assets and other items, resulting in a finance income of 3.4 billion yen on a net basis. As a result, first-half profit
before income taxes rose to 171.4 billion yen (+13.7% year-on-year) and profit attributable to owners of the parent rose to 105.8
billion yen (+5.4% year-on-year).
The Group’s medium-term vision is to become the world’s number one apparel retailer. In pursuit of this aim, we focus ourefforts on expanding the UNIQLO International, as well as our GU brand and our global e-commerce operation. We continue toopen multiple new UNIQLO stores in all markets and areas in which we operate and strive to instill deeper and more widespread
empathy for UNIQLO’s LifeWear concept of ultimate everyday wear. Within the UNIQLO International segment, the Greater
China and Southeast Asia regions are continuing to serve as the key pillars of our Group's business and growth. In terms of our
GU segment, in addition to expanding the GU store network primarily in Japan, we are working to establish GU’s position as abrand that offers fun fashion at amazingly low prices. E-commerce sales continue to expand thanks to stronger initiatives to fuseonline and physical stores and the offering of a wider range of services.
UNIQLO Japan
UNIQLO Japan reported a rise in revenue and a significant increase in profit in the first half of fiscal 2021, with revenue
expanding to 492.5 billion yen (+6.2% year-on-year) and operating profit rising to 97.8 billion yen (+36.6% year-on-year). Firsthalf same-store sales increased by 5.6% year-on-year thanks to strong sales of products such as loungewear and HEATTECH
blankets that fulfilled customer demand for stay-at-home items, as well as buoyant sales of core Fall Winter items along withultra stretch active jogger pants and other items in our sport utility wear range. Our e-commerce operation expanded significantly,
with online sales rising to 73.8 billion yen (+40.5% year-on-year) in the first half. UNIQLO Japan’s first-half gross profit margin
improved by 2.9 points to 50.7% on the back of strong sales, improved discounting rates resulting from more restricted discountsales, and a lower cost of sales generated by improved production efficiency. The selling, general and administrative expense
ratio improved by 1.4 points to 31.0% thanks to greater efficiencies primarily in distribution costs and advertising and promotion
expenses.
UNIQLO International
UNIQLO International reported a decline in revenue but a significant increase in operating profit in the first half of fiscal 2021,
with revenue falling to 521.8 billion yen (−3.6% year-on-year) and operating profit rising to 67.0 billion yen (+25.9% year-onyear). UNIQLO Europe and North America saw sales struggle in the face of especially severe COVID-19 conditions, but
performance in East Asia was broadly strong. Meanwhile, e-commerce sales remained strong with online sales rising in eachmarket.
The Greater China region reported large rises in both revenue and profit in the first half as the Mainland China market along with
the Taiwan market and the Hong Kong market witnessed further improvements in profits. UNIQLO Greater China’s gross profit
margin improved by 4.7 points year-on-year thanks to controlled discount sales, and the selling, general and administrative
expense ratio improved by 2.5 points as the operation maintained appropriate inventory levels and enjoyed greater efficiencies
primarily in store personnel and distribution costs following concerted efforts to boost the efficiency of store operations. The- 4 -operational environment for UNIQLO South Korea continued to be tough resulting in a large decline in first-half revenue.
However, improvements in the gross profit margin and selling, general and administrative expense ratio enabled the South
Korean operation to post a slight operating profit compared to an operating loss in the previous year. UNIQLO S/SE Asia &Oceania reported sharp declines in both revenue and profit as the operation was adversely impacted by temporary store closuresand restrictions on movement caused by COVID-19. However, Vietnam reported ongoing strong sales and a large rise in profits
in the first half as the impact of COVID-19 remained low and the popularity of the UNIQLO brand increased. UNIQLO USA
reported a large decline in revenue and a larger operating loss after some stores were temporarily closed or forced to limit
customer numbers and people’s movement outside the home was restricted. UNIQLO Europe also reported large declines in bothrevenue and profit in the first half as temporary store closures hit the operation hard. However, Russia achieved double-digit
growth in first-half same-store sales and a large rise in operating profit as stores were not required to close temporarily in thatmarket and sales of Winter items proved strong.
GU
The GU business segment achieved a steady year-on-year performance in the first half of fiscal 2021, with revenue totaling 132.6
billion yen (+0.3% year-on-year) and operating profit standing at 15.8 billion yen (+0.4% year-on-year).
While customer visits declined primarily in urban areas due to COVID-19, first-half same-store sales held steady year-on-year
thanks to strong sales of the sweat-style knitwear that featured in our TV commercials, double-faced sweatshirts that successfully
captured mass fashion trends, and loungewear and other items that satisfied customer demand for stay-at-home clothing. GU’s
gross profit margin held steady at the previous year’s level, while the segment’s selling, general and administrative expense ratio
improved by 0.4 point thanks to stronger cost controls.
Global Brands
Global Brands reported a large decline in revenue and an operating loss in the first half of fiscal 2021. Revenue declined to 54.5
billion yen (−22.2% year-on-year) and the segment generated an operating loss of 8.1 billion yen (compared to a 0.7 billion yen
profit recorded in the first half of fiscal 2020). Our Theory fashion label reported large declines in both revenue and profit asperformance worsened in the United States and Japan in the face of COVID-19. Our Japan-based PLST brand reported a large
decline in revenue and a slight operating loss following a reduction in customer visits primarily in urban areas. Finally, ourFrance-based Comptoir des Cotonniers brand reported a large decline in revenue and a wider operating loss on the back of
temporary store closures.
Sustainability
In keeping with our key sustainability message, “Unlocking the power of clothing,” the Group pursues sustainability activities
through our core clothing business focused on six clear material areas: Creating new value through products and services;
Respecting human rights in our supply chain; Respecting the environment; Strengthening communities; Supporting employee
fulfillment; Implementing good corporate governance. Our main activities in the second quarter of fiscal 2021 from December
2020 to February 2021 involved:■ Consideration for the environment: We respect the goal of the Paris Agreement to reduce greenhouse gas emissions by 2050,
and are committed to establishing long-term reduction targets in our stores, offices and supply chain. We have started togradually introduce renewable energy in our stores and offices. In addition, water is valuable resources for the production ofclothing. Therefore, in the procurement of raw materials as well as the production, sale and use of our products, we are striving toprevent water pollution and reduce water usage, and are taking measures to address floods and other water risks. In view of these
efforts, the CDP (an international non-profit organization that provides a platform for the disclosure of environmental
information), included the Group in its Water Security A-List in December 2020, the highest rating for water resource measures.
We have thus been recognized as a leading company in terms of active efforts and transparency in water resource management.
■ Community support: In support of efforts against the COVID-19 pandemic, we have been donating masks and isolation gowns
to medical institutions and nursing care facilities around the world since last year. Also, in order to provide support for refugees,
among whom the impact of COVID-19 has been spreading, we have intensified our collaboration with the United Nations HighCommissioner for Refugees (UNHCR). We plan to donate about a million UNIQLO AIRism masks to refugees and displaced
persons in the five countries of Argentina, Iraq, Egypt, Chile and Bolivia, among others.
■ Good management (governance): As our business expands globally, we are focusing on ensuring compliance, strengthening
risk management systems, managing sensitive information and ensuring the thoroughness of internal audits to firmly establishinginternal control systems in each country and region. The efforts of each committee are also being intensified. Our Human Rights
Committee conducts human rights investigations for employees focused on harassment and discrimination, discusses
improvement measures and supports their promotion. In addition, in the event that significant compliance violation is suspected- 5 -based on report to the employee hotline, the Code of Conduct Committee discusses whether a violation has been committed andhow to prevent its recurrence. The Risk Management Committee has been strengthening risk management in business activities,
and is continually discussing and planning our response to issues such as COVID-19, the risk of major disasters such as anearthquake in Tokyo and information security risks.
(ⅱ) Financial Position
Total assets as at 28 February 2021 were 2.5019 trillion yen, which was an increase of 89.9 billion yen relative to the end of thepreceding fiscal year. The principal factors were an increase of 127.3 billion yen in cash and cash equivalents, a decrease of 1.6
billion yen in trade and other receivables, an increase of 5.2 billion yen in other current financial assets, a decrease of 62.8
billion yen in inventories, an increase of 6.7 billion yen in other current assets, an increase of 15.7 billion yen in property, plantand equipment, a decrease of 3.6 billion yen in right-of-use assets, and an increase of 4.1 billion yen in investments inassociates accounted for using the equity method.
Total liabilities as at 28 February 2021 were 1.4031 trillion yen, which was a decrease of 12.8 billion yen relative to the end of
the preceding fiscal year. The principal factors were a decrease of 7.3 billion yen in trade and other payables, a decrease of 44.6
billion yen in other current financial liabilities, an increase of 1.7 billion yen in derivative financial liabilities, an increase of 3.3
billion yen in lease liabilities, an increase of 24.5 billion yen in current tax liabilities, an increase of 4.3 billion yen in othercurrent liabilities, an increase of 3.9 billion yen in provisions, and an increase of 1.3 billion yen in deferred tax liabilities.
Total net assets as at 28 February 2021 were 1.0988 trillion yen, which was an increase of 102.7 billion yen relative to the end of
the preceding fiscal year. The principal factors were an increase of 81.9 billion yen in retained earnings, and an increase of 15.7
billion yen in other components of equity.

- 6 -(2) Cash Flows Information
Cash and cash equivalents as at 28 February 2021 had increased by 127.3 billion yen from the end of the preceding fiscal year, to1.2208 trillion yen.
(Operating Cash Flows)
Net cash generated by operating activities for the six months ended 28 February 2021 was 352.1 billion yen, which was anincrease of 115.4 billion yen (+48.8% year-on-year) from the six months ended 29 February 2020. The principal factors were171.4 billion yen in profit before income taxes (an increase of 20.6 billion yen from the six months ended 29 February 2020),
11.6 billion yen in impairment losses (an increase of 6.2 billion yen from the six months ended 29 February 2020), 4.7 billion
yen in foreign exchange gains (an increase of 7.4 billion yen from the six months ended 29 February 2020), a decrease of 70.1
billion yen in inventories (an increase of 6.0 billion yen from the six months ended 29 February 2020), a decrease of 12.4 billion
yen in trade and other payables (an increase of 20.5 billion yen from the six months ended 29 February 2020), an increase of 0.7
billion yen in other assets (a decrease of 11.4 billion yen from the six months ended 29 February 2020), and an increase of 60.1
billion yen in other liabilities (an increase of 61.3 billion yen from the six months ended 29 February 2020).
(Investing Cash Flows)
Net cash used in investing activities for the six months ended 28 February 2021 was 41.0 billion yen, which was a decrease of
17.7 billion yen (−30.2% year-on-year) from the six months ended 29 February 2020. The principal factors were a net increase of
0.5 billion yen in bank deposits with original maturities of three months or longer (a decrease of 19.7 billion yen from the six
months ended 29 February 2020), 28.3 billion yen in payments for property, plant and equipment (an increase of 4.5 billion yen
from the six months ended 29 February 2020), 8.0 billion yen in payments for intangible assets (a decrease of 2.8 billion yen
from the six months ended 29 February 2020), 4.2 billion yen in payments for acquisition of investments in associates (anincrease of 4.2 billion yen from the six months ended 29 February 2020), and 0.6 billion yen in proceeds from other investing
activities (a decrease of 3.1 billion yen from the six months ended 29 February 2020).
(Financing Cash Flows)
Net cash used in financing activities for the six months ended 28 February 2021 was 201.3 billion yen, which was an increase of
102.1 billion yen (+103.0% year-on-year) from the six months ended 29 February 2020. The principal factors were a net decreaseof 4.8 billion yen in loans payable (an increase of 0.6 billion yen from the six months ended 29 February 2020), 100.0 billion yen
in repayment of redemption of bonds (an increase of 100.0 billion yen from the six months ended 29 February 2020), 1.3 billion
yen in dividends paid to non-controlling interests (a decrease of 0.9 billion yen from the six months ended 29 February 2020),
and 70.7 billion yen in repayments of lease liabilities (an increase of 2.5 billion yen from the six months ended 29 February2020).
(3) Estimates and Assumptions Used for Those Estimates in the Accounting
Our assumptions concerning the impact of COVID-19 have changed since the previous consolidated fiscal year. Further details
about this can be found in "4. Use of Estimates and Judgments" in "Notes to the Interim Condensed Consolidated Financial
Statements" of "5. Financial Section."
For the 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 2021 that resulted in issues that must be
addressed by the Group.
(5) Research and Development
Not applicable.

- 7 -(6) Significant Facilities
The following are the significant facilities that were newly completed during the six months ended 28 February 2021.
<Subsidiaries in Japan>
Not applicable.
<Overseas Subsidiaries>
Company nameUNIQLO EUROPE LIMITEDUNIQLO CANADA INC.

Type of facility

Name of business

Location

Completion date

UNIQLOInternational StoreUNIQLO Hamburg
Alter Wall

Hamburg, Germany

October 2020

UNIQLOUNIQLO Montreal

International Store

Eaton Centre

Montreal, Canada

October 2020

The following are the significant facilities that were newly planned during the six months ended 28 February 2021.
<Subsidiaries in Japan>
Not applicable.
<Overseas Subsidiaries>
Not applicable.

3. Significant Contracts in Business Operation
None.

- 8 -

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

Total number of authorized shares

Common stock

300,000,000

Total

300,000,000(ii) Shares Issued

Type

Number of shares issued
as at 28 February 2021

Number of shares issued
as at submission date
(As at 9 April 2021)

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

Remarks

First section of the Tokyo
Stock Exchange andCommon stock

106,073,656

106,073,656

100 shares

the Main Board of
the Stock Exchange ofas one unit

Hong Kong Limited (Note)
Total

106,073,656

106,073,656--(Note) Hong Kong Depositary Receipts are listed on the Main Board of the Stock Exchange of Hong Kong Limited.
(2) Share Subscription Rights
1. Details of the Stock Option Program
Not applicable.
2. Other Share Subscription Rights
Not applicable.
(3) Exercise of convertible bonds with conditional permission for adjustment of exercise priceNot applicable.
(4) Change in total number of Shares Issued, Capital Stock, Etc.
Date
1 December 2020 to
28 February 2021

Increase/(decrease) of
total number ofshares issued

Balance of total
number ofshares issued-

106,073,656

Increase/
Increase/
Balance ofBalance of(decrease) of(decrease) ofcapital stock
capital reserve
capital stock
capital reserve(Millions of yen)
(Millions of yen)
(Millions of yen)
(Millions of yen)-

10,273-

4,578(Note) There was no change in the total number of shares issued, capital stock or capital reserve during the three months ended 28
February 2021.

- 9 -(5) Major Shareholders
As at 28 February 2021

Name or trade nameLocation

Number ofshares held
(in thousandsof shares)

As a percentage
over total
number ofshares (excluding
treasury stock)

Tadashi Yanai

Shibuya-ku, Tokyo

22,037

21.58

The Master Trust Bank of Japan, Ltd.

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

21,014

20.58

Custody Bank of Japan, Ltd.

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

14,073

13.78

TTY Management B.V.

De Entree 99, 1101HE Amsterdam,
The Netherlands

5,310

5.20

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

3.54

London, England 5JP E14(2-15-1, Konan, Minato-ku, Tokyo)

2,464

2.41

Shibuya-ku, Tokyo

2,327

2.28

85,15083.38

JP Morgan Chase Bank
(Standing proxy Mizuho Bank, Ltd.)
Teruyo Yanai

25 Bank Street, Canary Wharf,

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 15 December 2020 by
Nomura 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 8 December 2020. However, since theCompany has not been able to confirm the number of shares actually held as at 28 February 2021, these shareholdings havenot been included in the above table of major shareholders.

Name or trade name

Nomura Securities Co.,Ltd.
Nomura International PLC
Nomura Asset Management Co., Ltd.

Location

1-13-1 Nihonbashi, Chuo-ku, Tokyo
1 Angel Lane, London EC4R 3AB, United
Kingdom
2-2-1 Toyosu, Koto-ku, Tokyo

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

73

0.07

41

0.04

11,81211.14

4. In addition to the above, 3,943,966 shares of treasury stock are held by the Company (3.72% of the total number ofoutstanding shares).

- 10 -

(6) Voting Rights(i) Shares issued
As at 28 February 2021
Class

Number of shares

Number of voting rights

Remarks

Non-voting shares

-

-

-

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

-

-

-

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

-

-

-

-

-

(Shares held as treasury
Shares with full voting rights(e.g., treasury stock)stock)
Common stock
3,943,900

Shares with full voting rights

Common stock(e.g., other than treasury stock)

1,020,581

102,058,100
Common stock

Shares less than one unit

71,656

Total number of shares issued

106,073,656

Total number of voting rights of all shareholders-－(Note) 1(Notes) 1, 2－

1,020,581-(Notes) 1. The columns for the number of shares of “Shares with full voting rights (e.g., other than treasury stock)” and “Shares lessthan one unit” include 2,700 shares and 84 shares, respectively, held in the name of Japan Securities Depository Center, Inc.
2. Common stock in the “Shares less than one unit” row includes 66 shares of treasury stock held by the Company.
(ii) Treasury StockAs at 28 February 2021
Name or trade name ofholderFAST RETAILING
CO., LTD.

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

Number ofshares held in
own name

Number ofshares held inother’s name

Total number ofshares held

Percentage of
total number ofshares issued (%)

3,943,900-

3,943,900

3.72

3,943,900-

3,943,900

3.72

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 2021.

- 11 -

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 2021, 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.

- 12 -

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

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

As at 31 August 2020

As at 28 February 2021

1,093,531
67,0691,220,854
65,464ASSETS
Current assets
Cash and cash equivalents
Trade and other receivables
Other financial assets
Inventories

16
6

49,890417,529

55,162354,641

Derivative financial assets
Income taxes receivable

16

14,413
2,126

14,244
1,496

10,62917,402

1,655,191

1,729,266

7,8
8

136,123
399,944

151,875
396,335

8

8,092
66,833

8,092
67,162

16

67,77068,68814,221

18,41145,447

44,63010,983
7,383

10,332
7,124

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

16

Other assets

8

Total non-current assets

756,799772,653

2,411,990

2,501,920

210,747
213,301

203,430
168,668

2,763
114,652

5,621
118,956

Current tax liabilities
Provisions

22,602752

47,124882

Other liabilities

82,63686,939Total current liabilities

647,455

631,623

370,780
351,526

370,872
350,553

32,6587,760

36,437
9,105

3,205
2,524

2,094
2,414

768,455

771,478

1,415,910

1,403,101

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

9,16

Derivative financial liabilities
Lease liabilities

16

Non-current liabilities
Financial liabilities
Lease liabilities

9,16

Provisions
Deferred tax liabilities
Derivative financial liabilities

16

Other liabilities
Total non-current liabilities
Total liabilities- 13 -

Notes

As at 31 August 2020

As at 28 February 2021

Capital stock
Capital surplus

10,27323,365

10,27325,220Retained earnings
Treasury stock, at cost

933,303(15,129)

1,015,248(15,022)

4,749

20,507

Equity attributable to owners of the Parent

956,562

1,056,228

Non-controlling interests

39,51642,590996,079

1,098,819

2,411,990

2,501,920

EQUITY

Other components of equity

Total equity
Total liabilities and equity- 14 -

(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 2021
(Millions of yen)
Notes
Revenue

11

Cost of sales
Gross profit

Six months ended
29 February 2020

Six months ended
28 February 2021

1,208,512(631,722)

1,202,864(602,413)

Selling, general and administrative expenses

12

576,790(438,798)

600,451(420,750)

Other income
Other expenses

13
8,13

6,002
(7,309)4,446(16,512)51

347

136,736

167,982

18,069(3,946)

7,059(3,559)

Income tax expense

150,859(47,414)

171,482(62,227)

Profit for the period

103,444

109,255

Non-controlling interests

100,459
2,985

105,868
3,387

Total

103,444

109,255

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

14

Finance costs

14

Profit before income taxes

Profit for the period attributable to:
Owners of the Parent

Earnings per share
Basic (yen)15984.21

1,036.76

Diluted (yen)15982.491,035.04- 15 -

Three months ended 28 February 2021
(Millions of yen)Three months ended
29 February 2020Three months ended
28 February 2021

Revenue

585,028583,066

Cost of sales(321,161)(307,436)

Gross profit

263,867

275,630

Selling, general and administrative expenses
Other income(214,699)
1,918(207,504)
2,229

Other expenses
Share of profit and loss of associates accounted
for using the equity method(5,842)(15,598)

(197)

132

Operating profit
Finance income

45,0455,850

54,888
11,168Finance costs(2,051)(1,739)

Notes

Profit before income taxes

48,84464,317

Income tax expense(17,239)(27,555)

Profit for the period

31,60436,762

29,55235,487

Profit for the period attributable to:
Owners of the Parent
Non-controlling interests

2,052

1,275

Total

31,60436,762289.51288.98347.49346.91

Earnings per share
Basic (yen)Diluted (yen)1515- 16 -

Interim Condensed Consolidated Statement of Comprehensive Income
Six months ended 28 February 2021
(Millions of yen)Six months ended
29 February 2020
Profit for the period
Other comprehensive income / (loss), net of income tax

Six months ended
28 February 2021

103,444

109,255

Financial assets measured at fair value throughother comprehensive income / (loss)

(231)

369

Total items that will not be reclassified subsequently to
profit or loss

(231)

369

14,715

18,26925,556
18

4,584
55

Total items that may be reclassified subsequently to
profit or loss

40,291

22,909Other comprehensive income / (loss), net of income tax

40,06023,279143,505

132,534

140,153

127,401

3,352

5,133

143,505

132,534

Items that will not be reclassified subsequently to
profit or loss

Items that may be reclassified subsequently to
profit or loss
Exchange differences on translating
foreign operations
Cash flow hedges
Share of other comprehensive income of associates

Total comprehensive income for the period
Attributable to:
Owners of the Parent
Non-controlling interests
Total comprehensive income for the period- 17 -

Three months ended 28 February 2021
(Millions of yen)

Profit for the period

Three months ended
29 February 2020Three months ended
28 February 2021

31,60436,762

(249)

31

(249)

31

(3,286)

11,822Other 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

5,312

16,233

Share of other comprehensive income / (loss) of
associates

(0)

42

Total items that may be reclassified subsequently to
profit or loss

2,024

28,098Other comprehensive income / (loss), net of income tax
Total comprehensive income for the period

1,775

28,13033,38064,89332,52462,283855

2,609

33,38064,893Attributable to:
Owners of the Parent
Non-controlling interests
Total comprehensive income for the period- 18 -

(3) Interim Condensed Consolidated Statement of Changes in Equity
For the six months ended 29 February 2020
(Millions of yen)
Other components of equity

Note

As at 1 September 2019
Effect of change in accounting
policyBalance after adjustment

Capitalstock

CapitalsurplusRetainedearnings

Treasurystock, atcost

10,273

20,603928,748(15,271)

FinancialassetsForeignmeasuredcurrency
at fair valuetranslation
through otherreservecomprehensive
income(697)(13,929)

Share of otherCash flow
comprehensive
hedge
income ofreserveassociates

8,906

(11)

Equityattributable
Nonto owners controllingof theinterest
Parent

Total

Total
equity(5,732)

938,62144,913

983,534--(30,370)

-

-

-

-

-

-

(30,370)(1,429)(31,800)

10,273

20,603

898,377(15,271)(697)(13,929)

8,906

(11)

(5,732)908,250

43,483

951,734--

100,459

-

-

-

-

-

-

100,459

2,985

103,444

-

-

-

-

(231)

13,727

26,17818

39,69339,693366

40,060--100,459-(231)

13,727

26,17818

39,693140,153

3,352

143,505

-

-

-

(5)

-

-

-

-

-

(5)

-

(5)

Net changes during the period
Comprehensive income
Profit for the period
Other comprehensive
income / (loss)
Total comprehensive income /(loss)
Transactions with the ownersof the Parent
Acquisition of treasury
stock
Disposal of treasury stock
Dividends
Share-based payments
Transfer to non-financial
assetsTotal transactions withthe owners of the Parent
Total net changes during theperiodAs at 29 February 2020

10

-

934

-

78

-

-

-

-

-

1,013

-

1,013

-

-

(24,494)

-

-

-

-

-

-

(24,494)(1,569)(26,064)

-

1,690

-

-

-

-

-

-

-

1,690

-

1,690

-

-

-

-

-

-

(6,299)-(6,299)(6,299)(794)(7,093)-

2,625(24,494)73--(6,299)-(6,299)(28,095)(2,363)(30,459)-

2,625

75,96473(231)

13,727

19,87818

33,394

112,057

988

113,046

10,27323,229974,342(15,198)

(928)

(202)

28,785

7

27,661

1,020,308

44,471

1,064,780- 19 -

For the six months ended 28 February 2021
(Millions of yen)
Other components of equity

Note

As at 1 September 2020

Financial assets
Treasury measured at fair Foreign
stock,
value
currency
at costthrough other translation
comprehensive reserveincomeShare of otherCash flow
comprehensive
hedge
income ofreserveassociates

Equityattributable
Nonto owners controllingof theinterests
ParentCapitalstock

CapitalsurplusRetainedearnings

10,27323,365

933,303(15,129)385(8,489)12,905

(51)

4,749

956,562

39,516

996,079--

105,868

-

-

-

-

-

-

105,868

3,387

109,255

-

-

-

-

369

16,3894,717

55

21,533

21,533

1,746

23,279--105,868-369

16,3894,717

55

21,533

127,401

5,133

132,534

-

-

-

(4)

-

-

-

-

-

(4)

-

(4)

-

1,215

-

111

-

-

-

-

-

1,327

-

1,327

-

-

(24,504)

-

-

-

-

-

-

(24,504)(1,367)(25,871)

-

639

-

-

-

-

-

-

-

639

-

639

-

-

-

-

-

-

(5,193)-(5,193)(5,193)(691)(5,884)

-

-

581

-

(581)

-

-

-

(581)

-

-

-

-

1,855

(23,923)

106

(581)

-

(5,193)-(5,774)(27,735)(2,058)(29,794)-

1,855

81,945106(211)

16,389(475)

55

15,75899,665

3,074

102,740

10,27325,2201,015,248(15,022)

173

7,900

12,4294

20,507

1,056,228

42,5901,098,819

Total

Total
equityNet 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 2021

10

- 20 -

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

Six months ended
29 February 2020

Six months ended
28 February 2021

Cash flows from operating activities
Profit before income taxes
Depreciation and amortization

150,859
87,871

171,482
89,004

5,443(5,878)

11,696(2,310)

3,946(12,190)

3,551(4,740)Share of profit and loss of associates accounted for using theequity method

(51)

(347)

Losses on disposal of property, plant and equipment(Increase) / Decrease in trade and other receivables

355
207

609
(420)

(Increase) / Decrease in inventories
Increase / (Decrease) in trade and other payables

64,120(32,925)

70,197(12,402)(Increase) / Decrease in other assets
Increase / (Decrease) in other liabilities

10,648(1,227)(764)
60,132Others, net

2,061

2,278

Cash generated from operations

273,241

387,964

Interest and dividends income received
Interest paid

5,633
(3,483)

2,099(3,114)

Income taxes paid
Income taxes refunded(39,535)825(36,036)
1,212

Net cash generated by operating activities

236,680

352,125

Amounts deposited into bank deposits with original maturitiesof three months or longer(53,772)(47,286)

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

33,503

46,738

Payments for property, plant and equipment
Payments for intangible assets(23,833)(10,895)(28,359)(8,083)

Payments for acquisition of right-of-use assets
Payments for lease and guarantee deposits(1,759)(2,952)(666)(1,825)

Proceeds from collection of lease and guarantee deposits
Payments for acquisition of investments in associates

3,437
-

2,057
(4,232)

Impairment losses
Interest and dividend income

8Interest expenses
Foreign exchange losses / (gains)

Cash flows from investing activities

Others, net(2,556)620

Net cash generated by / (used in) investing activities(58,828)(41,037)- 21 -

(Millions of yen)
Note

Six months ended
29 February 2020

Six months ended
28 February 2021

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

976
(847)

32,618(37,453)

Repayment of long-term loans payable
Repayment of redemption of bonds(4,343)-(100,000)(24,494)(2,328)(24,504)(1,367)

Others, net(68,231)73(70,733)
106

Net cash generated by / (used in) financing activities(99,195)(201,334)

Effect of exchange rate changes on the balance of cash held in
foreign currencies

19,127

17,5709

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

10

Repayments of lease liabilities

Net increase in cash and cash equivalents

97,783

127,323

Cash and cash equivalents at the beginning of period

1,086,519

1,093,531

Cash and cash equivalents at the end of period

1,184,303

1,220,854- 22 -

Notes to the Interim Condensed Consolidated Financial Statements
1. Reporting Entity
FAST RETAILING CO., LTD. is a company incorporated in Japan. The locations of the registered headquarters and principal
offices of the Company are disclosed on the Group’s website (http://www.fastretailing.com/eng/).
The principal activities of the Company and its consolidated subsidiaries are the operations of the UNIQLO business (i.e., casualclothing retail business operating under the “UNIQLO” brand in Japan and overseas), GU business (i.e., casual clothing retailbusiness operating under the “GU” brand in Japan and overseas), Theory business (i.e., apparel design and retail business in Japanand overseas) and other businesses.
2. Basis of Preparation
The interim condensed consolidated financial statements have been prepared in compliance with IAS 34. The Group meets all of thecriteria of a “specified company” defined under Article 1-2 of the Consolidated Quarterly Financial Statements Rules andaccordingly, applies Article 93 of the Consolidated Quarterly Financial Statements Rules. Since the interim condensed consolidated
financial statements do not include all the information and disclosures required for consolidated financial statements, they should beread in conjunction with the Group’s annual consolidated financial statements for the year ended 31 August 2020.
The interim condensed consolidated financial statements were approved on 9 April 2021 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 2020 are appliedconsistently in the preparation of these interim condensed consolidated financial statements.
4. Use of Estimates and Judgments
The preparation of the interim condensed consolidated financial statements requires management to make judgments, estimates andassumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income andexpenses. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. The effects of the review of accounting estimates arerecognized in the accounting period in which the estimates were reviewed and in future accounting periods.
With the global spread of COVID-19, the Group's performance has been adversely affected due to temporarily closing stores, etc.
Regarding impairment to our non-financial assets, in the first quarter of the consolidated accounting period, we had assumed thatthe impact of the COVID-19 pandemic would continue to be felt through to the end of August 2021, on the basis of the assumptionthat business activities would gradually return to normal. However, there is continued uncertainty around the future economic
outlook owing to concerns such as the spread of the virus, and the timing for the situation subsiding differs from region to regionand on a case-by-case basis. As such, we made accounting estimates involving the assumption that the impact will last until the endof February 2022 for most countries and regions including Japan. For stores in other certain countries and regions, it may takelonger for the situation to get under control.
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.

- 23 -

5. Segment Information(i) Description of reportable segments
The Group’s reportable segments are components for which discrete financial information is available and which are reviewed
regularly by the Board of Directors (the “Board”) to make decisions about the allocation of resources and to assess performance.
The Group’s main retail clothing business is divided into four reportable operating segments: UNIQLO Japan, UNIQLOInternational, GU and Global Brands, each of which is used to frame and form the Group’s strategy.
The main businesses covered by each reportable segment are as follows:
UNIQLO Japan: UNIQLO clothing business within Japan
UNIQLO International: UNIQLO clothing business outside of Japan
GU: GU clothing business in Japan and overseas
Global Brands: Theory, PLST, COMPTOIR DES COTONNIERS, PRINCESSE TAM.TAM and J Brand clothing business(ii) Segment revenue and results
For the six months ended 29 February 2020
(Millions of yen)

Others(Note 1)

Adjustments(Note 2)

Interim
Condensed
Consolidated
Statement ofProfit or Loss

1,207,211

1,301

-

1,208,512

741

141,458278(5,000)136,736

15,711517

143,858

279

6,721

150,859

100

368

5,443

-

-

5,443

Reportable segments
UNIQLOJapan

UNIQLOInternational

GU

Revenue

463,568

541,248

132,293

70,100Operating profit / (loss)

71,62653,267

15,82373,47054,159

596

4,377

Total

GlobalBrandsSegment 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”.
For the six months ended 28 February 2021
(Millions of yen)

Others(Note 1)

Adjustments(Note 2)

Interim
Condensed
Consolidated
Statement ofProfit or Loss

Reportable segments
GlobalBrandsTotal

UNIQLOJapan

UNIQLOInternational

Revenue

492,519

521,826

132,671

54,561

1,201,579

1,284

-

1,202,864

Operating profit / (loss)

97,87067,07015,888(8,188)

172,64144(4,703)

167,982

98,49965,995

15,811(8,436)

171,87045(432)

171,482

839

9,035

434

1,386

11,696--

11,696

GU

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”.

- 24 -

For the three months ended 29 February 2020
(Millions of yen)

Others(Note 1)

Adjustments(Note 2)

Interim
Condensed
Consolidated
Statement ofProfit or Loss

584,368659-

585,028(1,128)50,818311(6,084)45,045

3,333(1,252)

53,236

312(4,705)

48,844

51

349

4,607

-

-

4,607

Reportable segments
UNIQLOJapan

UNIQLOInternational

GlobalBrands

Revenue

230,536

260,499

59,34433,987

Operating profit / (loss)

33,06815,431

3,446

34,017

17,138

-

4,206

GU

Total

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”.
For the three months ended 28 February 2021
(Millions of yen)

Others(Note 1)

Adjustments(Note 2)

Interim
Condensed
Consolidated
Statement ofProfit or Loss

Reportable segments
GlobalBrandsTotal

UNIQLOJapan

UNIQLOInternational

Revenue

238,667

261,196

56,157

26,493

582,514552-

583,066

Operating profit / (loss)

37,78725,6492,284(7,965)57,75661(2,929)54,88838,70325,2502,315(8,090)58,17962

6,075

64,317

845

8,961

434

1,322

11,563--

11,563

GU

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”.

- 25 -

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

Six months ended
28 February 2021

4,121

7,525

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

As at
28 February 2021

Buildings and structures

104,201

110,733

Furniture, equipment and vehicles

16,773

18,492

Land

1,927

1,927

Construction in progress

13,22020,721

136,123

151,875

Total- 26 -

8. Impairment Losses
The Group’s impairment losses during the six months ended 28 February 2021 amounted to 11,696 million yen, compared with
5,443 million yen during the six months ended 29 February 2020, and are included in “other expenses” on the Interim condensed
consolidated statement of profit or loss.
The breakdown of impairment losses is as follows:
For the six months ended 29 February 2020
Impairment losses are mainly due to a reduction in profitability of store assets at UNIQLO Japan and UNIQLO International, andno material impairment losses are recognized.
For the six months ended 28 February 2021
The breakdown of impairment losses by asset type is as follows:(Millions of yen)Six months ended
28 February 2021
Buildings and structures

1,439

Furniture, equipment and vehicles

374

Subtotal on property, plant and equipment
Software

1,814
106

Other intangible assets

7
Subtotal on intangible assets

113

Right-of-use assets

9,765

Other non-current assets (long-term prepayments)

2

Total impairment losses

11,696

Property, plant and equipment and right-of-use assets
Impairment losses amounting to 11,696 million yen represented write downs of the carrying amounts of store assets to therecoverable amounts, primarily due to a reduction in profitability of certain stores, including flagship stores. With the global spreadof COVID-19, the Group's performance has been adversely affected due to temporarily closing stores, etc. Although the timing forthe situation subsiding differs from region to region and on a case-by-case basis, we made accounting estimates involving theassumption that the impact will last until the end of February 2022 for most countries and regions including Japan. For stores inother certain countries and regions, it may take longer for the situation to get under control.
The grouping of assets is based on the smallest cash-generating unit ("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 onvalue in use.
The value in use is calculated by discounting the cash flow projections based on estimates and growth rates approved bymanagement at a discount rate of mainly 8.1%. Theoretically, the projected cash flows cover a maximum period of five years, anddo not use a growth rate that exceeds the long-term average market growth rate. The pre-tax discount rate calculation is primarily
based on the weighted-average cost of capital.

- 27 -

The main CGUs for which impairment losses were recorded are as follows:
Operating segment

CGU

UNIQLO Japan

UNIQLO CO., LTD. stores

UNIQLO International

UNIQLO USA LLC, UNIQLO EUROPE
LIMITED etc., stores

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

GU

GU (Shanghai) Trading Co., Ltd. stores

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

COMPTOIR DES COTONNIERS S.A.S.,

Buildings, structures and right-of-use

etc., stores

assets etc.

Global Brands

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

9. Corporate Bonds
The 2nd non-collateralized corporate bonds of 100,000 million yen (interest rate: 0.291%; date of maturity: 18 December 2020) was
repaid during the 6 months ended 28 February 2021.

10. Dividends
The total amount of dividends paid was as follows:
For the six months ended 29 February 2020
Total dividends(Millions of yen)

Resolution
Meeting of the Board on 5 November 2019

Dividends per share(Yen)

24,494240

Dividends were declared on 5 November 2019 and paid on 8 November 2019. The effective date of the dividend was forshareholders as at 31 August 2019.
For the six months ended 28 February 2021
Total dividends(Millions of yen)

Resolution
Meeting of the Board on 4 November 2020

Dividends per share(Yen)

24,504240

Dividends were declared on 4 November 2020 and paid on 6 November 2020. The effective date of the dividend was forshareholders as at 31 August 2020.
Dividends on common stock declared subsequent to 28 February 2021 are as follows:

Total dividends (Million yen)
Dividends per share (yen)Six months ended
29 February 2020

Six months ended
28 February 2021

24,49924,511240

240

The Board has approved the dividends on common stock subsequent to 28 February 2021, and the amount is not recognized as aliability as at 28 February 2021.

- 28 -

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 29 February 2020
Revenue(Millions of yen)

Percent of Total
(%)

Japan

463,568

38.4

Greater China

270,334

22.4

Other parts of Asia & Oceania

135,428

11.2

North America & Europe

135,485

11.2

1,004,816

83.1

GU (Note 2)

132,293

10.9

Global Brands (Note 3)

70,100

5.8

Others (Note 4)

1,301

0.1

1,208,512

100.0

UNIQLO (Note 1)

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

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

North America & Europe:

Indonesia, Australia, Vietnam, India
United States of America, Canada, United Kingdom, France, Russia,(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.

- 29 -Six months ended 28 February 2021
Revenue(Millions of yen)

Percent of Total
(%)

Japan

492,519

40.9

Greater China

310,807

25.8

Other parts of Asia & Oceania

110,032

9.1

North America & Europe

100,986

8.4

1,014,346

84.3

GU (Note 2)

132,671

11.0

Global Brands (Note 3)

54,561

4.5

Others (Note 4)

1,284

0.1

1,202,864

100.0

UNIQLO (Note 1)

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

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

North America & Europe:

Indonesia, Australia, Vietnam, India
United States of America, Canada, United Kingdom, France, Russia,(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.

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
29 February 2020

Six months ended
28 February 2021

Advertising and promotion

39,712

36,170

Lease expenses

38,74235,456

Depreciation and amortization

87,87189,004

Outsourcing

25,37025,177

Salaries

145,931

141,353

Distribution

54,12450,295

Others

47,04443,292438,798

420,750

Selling, general and administrative expenses

Total- 30 -

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
29 February 2020

Six months ended
28 February 2021

Foreign exchange gains (Note)

3,551

2,366

Others

2,450

2,079

6,002

4,446

Other income

Total(Millions of yen)Six months ended
29 February 2020

Six months ended
28 February 2021

355

609

Impairment losses

5,443

11,696

Others

1,510

4,207

7,309

16,512Other 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
29 February 2020

Six months ended
28 February 2021

Foreign exchange gains (Note)

12,1904,740Interest income

5,867

2,301

11

16

18,069

7,059

Finance income

Others
Total(Millions of yen)Six months ended
29 February 2020

Six months ended
28 February 2021

3,946

3,551

-

7

3,946

3,559

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

- 31 -

15. Earnings per ShareSix months ended 29 February 2020
Equity per share attributable to ownersof the Parent (Yen)Six months ended 28 February 2021
9,994.97

Equity per share attributable to ownersof the Parent (Yen)

10,342.04

Basic earnings per share (Yen)984.21

Basic earnings per share (Yen)

1,036.76

Diluted earnings per share (Yen)982.49Diluted earnings per share (Yen)

1,035.04(Note) The basis for calculation of basic earnings per share and diluted earnings per share is as follows:
Six months ended
29 February 2020

Six months ended
28 February 2021

100,459

105,868--

100,459

105,868

102,070,655

102,114,907--

Increase in number of common stock (Shares)

179,046

169,788(Number of share subscription rights included in increase)(179,046)(169,788)

Basic earnings per share for the period
Profit for the period attributable to owners of the Parent (Millions of yen)
Profit not attributable to common shareholders (Millions of yen)
Profit attributable to common shareholders (Millions of yen)
Average number of common stock outstanding during the period (Shares)
Diluted earnings per share for the period
Adjustment to profit (Millions of yen)Three months ended 29 February 2020Three months ended 28 February 2021

Basic earnings per share (Yen)

289.51

Basic earnings per share (Yen)

347.49Diluted earnings per share (Yen)

288.98

Diluted earnings per share (Yen)

346.91(Note) The basis for calculation of basic earnings per share and diluted earnings per share is as follows:
Three months ended
29 February 2020Three months ended
28 February 2021

29,55235,487--29,55235,487102,076,667

102,123,125--

Increase in number of common stock (Shares)

186,765

172,120(Number of share subscription rights included in increase)(186,765)(172,120)

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)

- 32 -

16. Fair value of Financial Instruments
Information about the carrying amount and fair value of financial instruments is as follows:(Millions of yen)
As at 31 August 2020
Carrying amounts

Fair value

As at 28 February 2021
Carrying amounts

Fair value

Financial assets:
Security deposits and guarantees
Total

63,63964,34164,377

65,10863,63964,34164,377

65,108469,342

470,938

369,411

371,951

469,342

470,938

369,411

371,951

Financial liabilities:
Corporate bonds
Total

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

- 33 -

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

Level 1

Financial assets measured at fair value
through other comprehensive income

Level 2

Level 3

Total

1,158

-

212

1,370

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

-

1,550

-

1,550

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

17,878-17,878

1,158

19,428212

20,799Fair value(Millions of yen)
As at 28 February 2021

Level 1

Financial assets measured at fair value
through other comprehensive income

Level 2

Level 3

Total

787

-

213

1,001

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

-

459

-

459

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

16,401-

16,401

Fair value

787

16,861

213

17,862For the valuation of Level 2 derivative financial instruments for which a market value is available, we use a valuation model thatuses observable data on the measurement date using inputs such as interest rates, yield curves, currency rates and volatility incomparable instruments.
Financial instruments classified as Level 3 consist mainly of unlisted shares. The fair values of unlisted shares are measured by thedivision responsible in the Group according to the Group’s accounting policy, etc., using the immediately preceding figuresavailable for each quarter.
There were no significant changes due to the purchase, sale, issuance and settlement of Level 3 financial instruments, and notransfers between Levels 1, 2 and 3.

17. Commitments for Expenditures
The Group had the following commitments at each reporting date:(Millions of yen)
As at
31 August 2020

As at
28 February 2021

Commitment for the acquisition of property, plant and equipment

24,942

19,745

Commitment for the acquisition of intangible assets

2,139

2,781

27,081

22,527Total

18. Subsequent Events
Not applicable.

2. Others
Dividends
The Company resolved to pay dividends from retained earnings at the meeting of the Board convened on 8 April 2021.
The total amount of dividends paid and the amount per share are stated under “Financial Section 1. Interim Condensed
Consolidated Financial Statements, Notes to the Interim Condensed Consolidated Financial Statements 10. Dividends.”- 34 -

(TRANSLATION)
Independent accountant’s review report
9 April 2021
To the Board of Directors of FAST RETAILING CO., LTD.:
Deloitte Touche Tohmatsu LLC
Tokyo office
Designated Engagement Partner,
Certified Public Accountant:
Koichi Okubo
Designated Engagement Partner,
Certified Public Accountant:
Hirofumi Otani
Accountant's Conclusion
Pursuant to the first paragraph of Article 193-2 of the Financial Instruments and Exchange Act, we have reviewed the interim
condensed consolidated financial statements of FAST RETAILING CO., LTD. and its consolidated subsidiaries (the "Group")
included in the Financial Section, namely, the interim condensed consolidated statement of financial position as at 28 February 2021,
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, and the interim condensed consolidated statement of changes in equity andinterim 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 2021, and the consolidated results of their operations for the three-month and six-month periods then ended and their 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.

- 35 -

As part of a review in accordance with quarterly review standards generally accepted in Japan, we exercise professional judgment andmaintain professional skepticism throughout the review. We also:•Make inquiries, primarily of management and persons responsible for financial and accounting matters, and apply analytical andother quarterly review procedures. A review is substantially less in scope than an audit conducted in accordance with auditing
standards generally accepted in Japan.
•Conclude whether nothing has come to our attention, based on the evidence obtained, related to going concern that causes us tobelieve that the interim condensed consolidated financial statements are not fairly presented, in all material respects, in accordancewith paragraph 4 of IAS 1, if we conclude that a material uncertainty exists related to events or conditions that may cast significant
doubt on the Group's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw
attention in our accountant's report to the related disclosures in the interim condensed consolidated financial statements or, if suchdisclosures are inadequate, to modify our conclusion. Our conclusions are based on the evidence obtained up to the date of our
accountant's report. However, future events or conditions may cause the Group to cease to continue as a going concern.
•Evaluate whether nothing has come to our attention that causes us to believe that the overall presentation and disclosures of theinterim condensed consolidated financial statements are not in accordance with IAS 34, as well as the overall presentation, structure
and content of the interim condensed consolidated financial statements, including the disclosures, and whether nothing has come toour attention that causes us to believe that the interim condensed consolidated financial statements do not represent the underlying
transactions and events in a manner that achieves fair presentation.
•Obtain evidence regarding the financial information of the entities or business activities within the Group to express a conclusion on
the interim condensed consolidated financial statements. We are responsible for the direction, supervision and performance of thereview of the interim condensed consolidated financial statements. We remain solely responsible for our conclusion.
We communicate with Statutory Auditors and the Board of Statutory Auditors regarding the planned scope and timing of the review
and significant findings that we identify during our review.
We also provide Statutory Auditors and the Board of Statutory Auditors with a statement that we have complied with relevant ethicalrequirements regarding independence, and communicate with them all relationships and other matters that may reasonably be thought
to bear on our independence, and where applicable, related safeguards.
Interest Required to Be Disclosed by the Certified Public Accountants Act of Japan
Our firm and its designated engagement partners do not have any interest in the Group which is required to be disclosed pursuant to
the provisions of the Certified Public Accountants Act of Japan.
Notes to the Readers of Independent Accountant's Review Report
This is an English translation of the independent accountant's review report as required by the Financial Instruments and Exchange
Act of Japan for the conveniences of the reader.

- 36 -