FAST RETAILING CO., LTD.
迅銷有限公司Third Quarterly Report 2017/18
2018.3.1–2018.5.31
Stock Code: 6288

Contents
1. Corporate Profile2

2. Financial Highlights

3

3. Management Discussion and Analysis

5

4. Information about the Reporting Entity

9

5. Financial Section

11

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

12(2) Interim Condensed Consolidated Statement ofProfit or Loss and Other Comprehensive Income

13Interim Condensed Consolidated Statement of Profit or
LossInterim Condensed Consolidated Statement of Other
Comprehensive Income(3) Interim Condensed Consolidated Statement of
Changes in Equity

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

18

2. Others
Independent Accountant’s Review Report28
29

1. Corporate Profile
Board of Directors
Executive Director

Principal Place of Business in Japan
Midtown Tower 9-7-1
Akasaka Minato-ku
Tokyo 107-6231
Japan

Mr. Tadashi Yanai (Chairman of the Board of Directors,
President and Chief Executive Officer)
Non-Executive Director
Mr. Toru Murayama (External)

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

Independent Non-Executive Directors
Mr. Toru Hambayashi (External)
Mr. Nobumichi Hattori (External)
Mr. Masaaki Shintaku (External)
Mr. Takashi Nawa (External)
Audit & Supervisory Board Members
Mr. Akira Tanaka
Mr. Masaaki Shinjo
Mr. Takaharu Yasumoto (External)
Mr. Akira Watanabe (External)
Ms. Keiko Kaneko (External)

HDR Registrar and HDR Transfer OfficeComputershare Hong Kong Investor Services Limited
Shops 1712–1716, 17th Floor
Hopewell Centre
183 Queen’s Road East
WanchaiHong Kong

Joint Company Secretaries
Japan: Mr. Mitsuru Ohki
Hong Kong: Ms. Choy Yee Man

Stock CodeHong Kong: 6288
Japan: 9983

External Independent Accountants
Deloitte Touche Tohmatsu LLC

Website Address
http://www.fastretailing.com

Principal Banks
Sumitomo Mitsui Banking Corporation
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Mizuho Bank, Ltd.
The Hong Kong and Shanghai Banking Corporation Limited
Registered Office and Headquarters
717-1 Sayama
Yamaguchi City
Yamaguchi 754-0894
Japan

—2—

2. Financial Highlights
Financial Summary

Term

Third Quarterof
56th Year

Third Quarterof
57th Year

56th Year

Accounting period

Nine months
ended
31 May2017

Nine months
ended
31 May2018

Year ended
31 August2017

1,477,958

1,704,149

1,861,917

Operating profit/(loss) (Millions of yen)

Revenue (Millions of yen)

180,618

238,897

176,414

Profit/(loss) before income taxes (Millions of yen)

195,477

237,475

193,398

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

120,113148,335

119,280

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

190,419

140,889

190,566

Equity attributable to owners of the Parent (Millions of yen)731,618

838,368

731,770

Total assets (Millions of yen)

1,401,900

1,648,823

1,388,486

Basic earnings per share for the period (Yen)

1,177.89

1,454.29

1,169.70

Diluted earnings per share for the period (Yen)

1,176.18

1,451.77

1,168.00

52.2

50.8

52.7

Net cash generated by operating activities (Millions of yen)

241,196258,122

212,168

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

(25,623)(35,892)

122,790

Net cash used in financing activities (Millions of yen)

(46,433)(43,129)(50,836)

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

567,446858,359

683,802

Three months
ended
31 May2017

Three months
ended
31 May2018

Revenue (Millions of yen)

460,449

517,384

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

22,87944,184

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

224.35433.13

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

Accounting period(Notes)1. FAST RETAILING CO., LTD. (the “Company” or “Parent”) prepared interim condensed consolidated financial statements,
and therefore has not included information regarding changes in key management indices for the reporting entity.
2. Revenue does not include consumption taxes, etc.
3. The financial figures are quoted from the interim condensed consolidated financial statements or consolidated
financial statements prepared in accordance with International Financial Reporting Standards (“IFRS”).

—3—

Business Description
There were no significant changes in the nature of the business engaged in by the Company and its subsidiaries (collectively, the“Group”) during the nine months ended 31 May 2018.
In addition, there was no significant changes in the organizational structure, including the major subsidiaries during the ninemonths ended 31 May 2018.

—4—

3. Management Discussion and Analysis
Business Review
1. Business and Operational Risks
No new business-related risks have arisen during the nine months ended 31 May 2018.
There have been no important changes concerning business-related risks as stated in the annual report for the preceding
consolidated fiscal year.

2.

Significant Contract in Business Operation
None.

3.

Financial Analysis(1)

Results of Operations
The Fast Retailing Group generated rises in both revenue and profit in the first nine months of fiscal 2018 from
1 September 2017 to 31 May 2018. Consolidated revenue totaled ¥1.7041 trillion (+15.3% year-on-year) and operating
profit reached ¥238.8 billion (+32.3% year-on-year). The consolidated gross profit margin improved by 0.8 point yearon-year and the selling, general and administrative expense ratio improved by 1.9 points. The Group recorded a foreignexchange loss of ¥1.5 billion and an impairment loss of ¥10.3 billion under other income and expenses. A net loss of¥1.4 billion was recorded under finance income/costs, after the spot foreign exchange rate at the end of May closed
higher than the spot rate at the start of the business term. As a result, 1Q-3Q profit before income taxes expanded to¥237.4 billion (+21.5% year-on-year) and profit attributable to owners of the parent increased to ¥148.3 billion (+23.5%
year-on-year). Looking at individual business segments, not only did UNIQLO Japan and UNIQLO International reportsignificant rises in revenue and profit in the first nine months of fiscal 2018, but GU also reported rising revenue andprofit. Meanwhile the Global Brands segment reported a rise in revenue but a fall in profit over the nine-month period.
The Group’s medium-term vision is to become the world’s number one apparel retailer. In pursuit of this aim, we arefocusing our efforts on expanding UNIQLO International and our GU casual fashion brand. We continue to increase
UNIQLO store numbers in each country where we operate, and open global flagship stores and large-format storesin major cities around the world to help consolidate UNIQLO’s position as a key global brand. Within the UNIQLOInternational segment, Greater China (Mainland China, Hong Kong and Taiwan), South Korea and Southeast Asia areentering a new stage of growth as key drivers of operational growth for the Fast Retailing Group. In addition, UNIQLO USA
was able to significantly reduce operating losses, and is working solidly towards turning a profit in fiscal 2019. In termsof the GU operation, we plan to open more GU stores in Japan, while expanding the brand’s international presence,
especially in Greater China.
Due to its growing impact on overall consolidated performance, the GU casual fashion brand, formerly a part of the Global
Brands business segment, has been separated into an independent business segment from the first quarter of the 2018
reporting period. Previous data have been adjusted to suit the new reporting segment structure and facilitate accurate
year-on-year comparisons.
UNIQLO Japan
UNIQLO Japan reported a considerable rise in both revenue and profit in the first nine months of fiscal 2018, with revenue
totaling ¥704.4 billion (+7.8 % year-on-year) and operating profit totaling ¥120.0 billion (+29.6% year-on-year). While thecost of sales continued to rise over the period due to persistent weakening in internal yen exchange rates, that negative
impact was successfully offset by stricter discounting rates. As a result, the gross profit margin improved by 0.8 point year
on year. Meanwhile, the selling, general and administrative expense ratio improved 2.0 points year-on-year on the back ofsignificant reductions in advertising and promotion expenses, distribution costs and personnel expenses.
In the three months to 31 May 2018, same-store sales, including online sales, expanded by 5.4% year-on-year as
consistently warm weather in March and April generated strong sales of summer items such as AIRism, UT and DRY
T-shirts. Online sales increased by 33.1% to ¥16.4 billion, constituting 7.8% of total revenue. A new service, launched on
3 April 2018, enabling customers to pick up online purchases from local UNIQLO stores free of charge proved extremely
popular, and contributed to the continued successful expansion of our e-commerce business.

—5—

UNIQLO International
UNIQLO International revenue and profit rose significantly in the first nine months of fiscal 2018, with revenue totaling¥716.0 billion (+27.5% year-on-year) and operating profit increasing to ¥112.4 billion (+65.0% year-on-year). The
operating profit margin improved by 1.3 points year-on-year as we shifted to a business format that relied less heavily on
discounting. The selling, general and administrative expense ratio improved 2.1 points on consistent cost-cutting efforts.
During the March-to-May quarter, Greater China, South Korea, and the Southeast Asia & Oceania region generated strong
results, while UNIQLO USA further reduced operating losses. Same-store sales at UNIQLO Greater China attained doubledigit year-on-year growth following a strong launch of new Spring Summer ranges, and effective news generated bypopular new UT brand contents, Kando pants and jackets, and other ranges. UNIQLO South Korea’s gross profit margin
improved as the successful linking of marketing and in-store displays helped reduce discounting. UNIQLO Southeast Asiaand Oceania reported continued double-digit growth in same-store sales on the back of strong sales of UT T-shirts, polo
shirts and short pants. The reduction in operating losses at UNIQLO USA was achieved by reviewing product mixes andimproving the accuracy of sales plans. UNIQLO Europe also reported rising overall same-store sales, thanks primarily to astrong performance from the Russia UNIQLO operation.
GU
The GU business segment reported increases in both revenue and profit in the first nine months of fiscal 2018, withrevenue totaling ¥166.6 billion (+6.4% year-on-year) and operating profit reaching ¥15.0 billion (+1.7% year-on-year).
In the March-to-May quarter, same-store sales declined year-on-year. Sales of products featured in advertising campaigns
were sluggish, and we experienced some shortages in strong-selling items after greatly increasing the number of productranges on offer. In addition, the overall GU product mix was heavily skewed towards fashion trend items in a period whencustomer demand for basic items was increasing. Against this backdrop of sluggish sales, we started discounting early,
resulting in a 1.9 point decline in the gross profit margin for the quarter, and a 1.2 point increase in the business expenses
to net sales ratio. As a result, operating profit declined by a significant 20.0% year-on-year.
Global Brands
For the Global Brands segment, revenue rose but profit fell in the first nine months of fiscal 2018. The segment reported
a rise in revenue to ¥114.7 billion (+10.1% year-on-year) and an operating loss of ¥3.5 billion, following the recording of¥8.9 billion in first-half impairment losses at Comptoir des Cotonniers and other labels.
In the March-to-May quarter, the Theory operation reported a rise in both revenue and profit, while Comptoir desCotonniers reported an expanded loss, and the Princesse tam.tam and J Brand labels reported continued losses.
Sustainability
As the business activities of the Fast Retailing Group expand and become global, we remain committed to promoting
business based on sustainability of the global environment and society from a medium- to long-term perspective. Our
initiatives for sustainability consist of activities across four priority areas: supply chain, products, stores and communities,
and employees. Furthermore, we continue to promote activities such as monitoring of the working environment,
total product recycling, the management of stores loved by local communities, and the employment of persons withdisabilities.
In March 2018, we held our first Sustainability Week for employees at the Ariake Headquarters. This event was organized
so that employees as individuals would understand the importance of sustainability and reflect this in their work. We also
invited experts from outside the company to deepen our knowledge of the environment, society, and governance (ESG)
and, with the participation of a large number of employees from Japan and other countries, we held a lively exchange of
opinions regarding various problems the Company is making efforts to address at present.
During the same week, we also held a Sustainability Media Panel Discussion where we invited representatives of themedia to broaden and deepen their understanding of the Group’s efforts in sustainability. On that day, we also held an indepth question and answer session concerning how the Group intends to execute its business strategy and how it intends
to grow over the long term while contributing to society.

—6—In August 2013, we entered into the Accord on Fire and Building Safety in Bangladesh, which aims to protect garment
factory workers from the collapse of buildings and fire accidents. In May 2018, we agreed to extend our membershipin the accord for a further three years and signed the new agreement accordingly. As a signatory of the accord, Fast
Retailing will continue to make efforts to improve the working environment at factories in close cooperation with theagreement and other member brands.
In June 2018, Fast Retailing Co., Ltd. was selected as a constituent of the FTSE4Good Index Series, a global index forsocially responsible investment, and at the same time was selected by Japan’s public pension manager Government
Pension Investment Fund (GPIF) for inclusion in the FTSE Blossom Japan Index for ESG investment in companies that placesignificant weight on the environment and governance.
(2)

Financial Positions
Total assets as at 31 May 2018 were ¥1.648 trillion, which was an increase of ¥260.3 billion relative to the end of thepreceding consolidated fiscal year. The principal factors were an increase of ¥174.5 billion in cash and cash equivalents,
an increase of ¥34.6 billion in trade and other receivables, an increase of ¥10.0 billion in derivative financial assets, anincrease of ¥32.0 billion in other current assets, an increase of ¥11.5 billion in property, plant and equipment and adecrease of ¥14.9 billion in inventories.
Total liabilities as at 31 May 2018 were ¥771.7 billion, which was an increase of ¥145.3 billion relative to the end of
the preceding consolidated fiscal year. The principal factors were an increase of ¥30.0 billion in other current financial
liabilities, an increase of ¥18.6 billion in derivative financial liabilities, an increase of ¥15.9 billion in current tax liabilities,
an increase of ¥149.5 billion in other current liabilities, a decrease of ¥51.1 billion in trade and other payables and adecrease of ¥23.6 billion in non-current financial liabilities.
Total net assets as at 31 May 2018 were ¥877.0 billion, which was an increase of ¥115.0 billion relative to the end of thepreceding consolidated fiscal year. The principal factors were an increase of ¥110.0 billion in retained earnings.

(3)

Cash Flows Information
Cash and cash equivalents as at 31 May 2018 had increased by ¥290.9 billion from the period-end as at 31 May 2017, to¥858.3 billion.
Net cash generated by operating activities for the nine months ended 31 May 2018 was ¥258.1 billion, which was anincrease of ¥16.9 billion (+7.0 % year-on-year) from the nine months ended 31 May 2017.
The principal factors were ¥237.4 billion in profit before income taxes (an increase of ¥41.9 billion from the ninemonths ended 31 May 2017) and an increase of ¥149.7 billion in other liabilities (an increase of ¥134.0 billion fromthe nine months ended 31 May 2017), a decrease of ¥14.7 billion in inventories (an decrease of ¥35.6 billion from thenine months ended 31 May 2017), a decrease of ¥56.2 billion in trade and other payables (an decrease of ¥74.8 billion
from the nine months ended 31 May 2017), an increase of ¥38.7 billion in other assets (a decrease of ¥33.9 billion
from the nine months ended 31 May 2017) and ¥53.0 billion in income tax paid (a decrease of ¥22.0 billion from thenine months ended 31 May 2017.
Net cash used in investing activities for the nine months ended 31 May 2018 was ¥35.8 billion, which was an increase of¥10.2 billion (+40.1 % year-on-year) from the nine months ended 31 May 2017. The principal factors were a decrease of¥1.2 billion in bank deposits with original maturity over three months (an increase of ¥6.0 billion from the nine months
ended 31 May 2017), ¥22.4 billion payments for property, plant and equipment (a decrease of ¥1.8 billion from the ninemonths ended 31 May 2017) and ¥10.5 billion payments for intangible assets (an increase of ¥1.3 billion from the ninemonths ended 31 May 2017).
Net cash used in financing activities for the nine months ended 31 May 2018 was ¥43.1 billion, which was a decreaseof ¥3.3 billion (-7.1 % year-on-year) from the nine months ended 31 May 2017. The principal factor was an increase of¥0.3 billion in short-term loans payable (a decrease of ¥3.0 billion from the nine months ended 31 May 2017).

—7—

(4)

Operational and Financial Assignment
There have been no important changes during the nine months ended 31 May 2018 concerning issues that must be
addressed by the Group.

(5)

Research and Development
Not applicable.

(6)

Important Facilities
The following are the important facilities that were newly completed during the nine months ended 31 May 2018.
<Subsidiaries in Japan>
Not applicable.
<Overseas Subsidiaries>
Company name

Type of facility

Name of business

Location

Completion date

UNIQLO EUROPE LIMITEDUNIQLOInternational Stores

Paseo de Gracia 18

Barcelona Spain

September 2017

UNIQLO CANADA INC.

UNIQLOInternational Stores

UNIQLO Metrotown

Vancouver Canada

October 2017

The following are the important facilities that were newly planned during the three months ended 31 May 2018.
<Subsidiaries in Japan>
Not applicable.
<Overseas Subsidiaries>

Company
nameType offacility

Name ofbusiness

Location

UNIQLO UNIQLO
Kungstradgarden Stockholm,
EUROPE International
STOCKHOLM
SwedenLIMITED Store(Notes)Amount of planned
investment
Total
AmountPlannedConstruction Construction(Millionsalready
sales floor Referencestartcompletionof yen) disbursed
area (m2)(Millionsof yen)728

642

February
2018

August 2018

1. It is expected that the Group will be able to meet its funding needs from equity capital.
2. The above figures do not include consumption tax, etc.

—8—

2,146

Lease
hold

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(Note)(ii)

300,000,000

There are no provisions for preemptive rights under the Companies Act of Japan, which would oblige the Company tooffer new shares on a pro rata basis to existing shareholders.

Shares Issued

Type

As at 31 May 2018

Number of shares issued
as at submission date
(Shares)(As at 13 July 2018)

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

Remarks

100 sharesas one unit—

Common stock

106,073,656

106,073,656

First section of the Tokyo
Stock Exchange andthe Main board of
the Stock Exchange ofHong 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
Not applicable.

(3)

Exercise of convertible bonds with conditional permission for adjustment of exercise priceNot applicable.

(4)

Content of Rights Plan
Not applicable.

(5)

Change in Total Number of Shares Issued, Capital Stock, Etc.

Date

Increase/
Balance of total
decrease of
number of
total number ofshares issued
shares issued(Shares)(Shares)

1 March 2018 to
31 May 2018—

Increase/decrease ofcapital stock(Millionsof yen)Balance ofcapital stock(Millionsof yen)—10,273106,073,656

Increase/
Balance of
decrease ofcapital reserve
capital reserve(Millions(Millionsof yen)of yen)—4,578(Note) There was no increase or decrease in the total number of shares issued, capital stock or capital reserve during the threemonths ended 31 May 2018.

(6)

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

—9—

(7)

Voting Rights
Concerning “Voting Rights” as at the end of the third quarterly accounting period ended 31 May 2018, it has not beenpossible to confirm and state the details entered in the register of shareholders. Therefore, the stated details are basedon the register of shareholders as at the immediately preceding record date (28 February 2018).

(i)

Shares issued
As at 31 May 2018
Number of shares(Shares)Number of voting
rights (Number)

Remarks

Non-voting shares

—

—

—

Shares subject to restrictions on voting rights(treasury stock)

—

—

—

—

—

—

Shares with full voting rights(treasury stock, etc.)(Shares held astreasury stock)
Common stock
4,065,700——

Shares with full voting rights (others)

Common stock
101,946,700

Class

Shares subject to restrictions on voting rights(others)

Common stock

Shares less than one unit

61,256

Total number of shares issued

106,073,656

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

1,019,467(Note) 1—(Notes) 1,2——
1,019,467—

1. The columns for the number of shares of “Shares with full voting rights (others)” and “Shares less than one unit”
include 2,700 shares and 84 shares held, respectively, in the name of Japan Securities Depository Center, Inc.
2. Common stock in the “Shares less than one unit” row includes 33 shares of treasury stock held by the Company.

Treasury StockAs at 31 May 2018

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

2.

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

Total numberof shares held
(Shares)

Ratio of total
number of shares
held to total
number of sharesissued (%)

717-1 Sayama,
Yamaguchi-shi,
Yamaguchi

4,065,700—

4,065,700

3.83—

4,065,700—

4,065,700

3.83

Holder’s address

Board of Directors
Since the submission of the year-end report for the preceding consolidated fiscal year, there has been no change ofdirectors during the nine months ended 31 May 2018.

— 10 —

5. Financial Section
1. Preparation of Interim Condensed Consolidated Financial Statements
The interim condensed consolidated financial statements of the Group, namely, the interim condensed consolidated statementof financial position of the Group as at 31 May 2018 and the related interim condensed consolidated statements of profit orloss and other comprehensive income for the three-month and nine-month periods then ended, and the interim condensed
consolidated statements of changes in equity and cash flows for the nine-month period then ended (collectively, the “interim
condensed consolidated financial statements”), were prepared in compliance with International Accounting Standard 34“Interim Financial Reporting” (“IAS 34”), pursuant to Article 93 of the “Rules Governing Term, Form and Preparation ofConsolidated Quarterly Financial Statements” (2007 Cabinet Office Ordinance No. 64, 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.

— 11 —

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

1. Interim Condensed Consolidated Financial Statements(1)

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

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

As at 31 August 2017

As at 31 May 2018

683,80248,59830,426289,675
6,269
1,518
17,307858,359
83,24430,882
274,698
16,2701,625
49,389

1,077,598

1,314,470

136,979
15,88536,89577,608148,532
8,092
44,79980,727

Other assets

13,47325,303
4,742

13,89532,5595,746

Total non-current assets

310,888334,352

1,388,486

1,648,823

204,008
11,844
6,083
25,86427,88935,731

152,827
41,94024,696
41,787
21,329185,296

311,421467,878

Other liabilities

273,467
15,40910,00016,144

249,867
19,20618,487
16,337

Total non-current liabilities

315,022

303,898

626,443771,777

10,273
14,373
698,584

10,273
18,216808,670(15,563)
24,102(15,449)
16,656

731,770
30,272

838,368
38,67814
6
14

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

7,8
8
8
14

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

14
14

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

14

Total liabilities
EQUITY
Capital stock
Capital surplus
Retained earnings
Treasury stock, at cost
Other components of equity
Equity attributable to owners of the Parent
Non-controlling interests
Total equity
Total liabilities and equity— 12 —

762,043877,046

1,388,486

1,648,823

(2)Interim Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income
Interim Condensed Consolidated Statement of Profit or Loss
Nine months ended 31 May 2018
(Millions of yen)
Notes

Nine months ended
31 May 2017

Revenue

Nine months ended
31 May 2018

1,477,958(752,538)

1,704,149(853,756)

725,419(546,162)
4,275(3,426)850,393(598,017)
2,124(16,060)512457

180,618
17,094(2,235)

238,897
5,414(6,836)

Income tax expense

195,477(66,904)

237,475(76,220)

Profit/(loss) for the period

128,573

161,254

120,1138,460

148,335
12,919128,573

161,254

1,177.89
1,176.18

1,454.29
1,451.77

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

10
11
8,11

Operating profit/(loss)
Finance income

12

Finance costs

12

Profit/(loss) before income taxes

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

Three months ended 31 May 2018
(Millions of yen)
Notes

Three months ended
31 May 2017

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

Three months ended
31 May 2018

460,449(229,240)

517,384(252,629)

231,209(180,675)
1,010(1,754)

264,754(194,378)
1,346(3,504)

171

186

49,960645(2,739)68,404
4,584(710)

Income tax expense

47,866(22,707)

72,279(24,671)

Profit/(loss) for the period

25,15947,60822,8792,279

44,184
3,423

25,15947,608224.35224.02433.13432.42

Operating profit/(loss)
Finance income
Finance costs
Profit/(loss) before income taxes

Profit/(loss) for the period attributable to:
Owners of the parent
Non-controlling interests
Earnings per share
Basic (yen per share)
Diluted (yen per share)

13
13Interim Condensed Consolidated Statement of Other Comprehensive Income
Nine months ended 31 May 2018
(Millions of yen)
Nine months ended
31 May 2017
Profit/(loss) for the period
Other comprehensive income/(loss), net of income/(loss)
Items that will not be reclassified subsequently to
profit or loss
Items that may be reclassified subsequently to
profit or loss
Net fair value gain/(loss) on available-for-sales
financial assets during the period
Exchange differences on translating foreign
operations
Cash flow hedges

Nine months ended
31 May 2018

128,573

161,254

―

―

(44)

778

22,087
49,840(1,398)(6,688)71,883(7,308)200,457

153,946

Non-controlling interests

190,419
10,038140,889
13,057

Total comprehensive income/(loss) for the period

200,457

153,946

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

Three months ended 31 May 2018
(Millions of yen)Three months ended
31 May 2017
Profit/(loss) for the period
Other comprehensive income/(loss), net of income/(loss)
Items that will not be reclassified to profit or loss
Items that may be reclassified subsequently to
profit or loss
Net fair value gain/(loss) on available-for-sales
financial assets during the period
Exchange differences on translation foreign
operations

Three months ended
31 May 201825,15947,608

―

―

(23)

(25)

(2,733)(8,165)742
17,916

Other comprehensive income/(loss), net of taxes(10,922)

18,632

Total comprehensive income/(loss) for the period

14,236

66,240Non-controlling interests

12,616
1,619

62,042
4,197

Total comprehensive income/(loss) for the period

14,236

66,240Cash flow hedges

Attributable to:
Owners of the parent— 15 —

(3)Interim Condensed Consolidated Statement of Changes in Equity
For the nine months ended 31 May 2017
(Millions of yen)
Other components of equity

Note
As at 1 September 2016
Net changes during
the period
Comprehensive income/(loss)
Profit/(loss) for theperiodOther comprehensive
income/(loss)
Total comprehensive
income/(loss)
Transactions with theowners of the Parent
Acquisition of treasury
stock
Disposal of treasury
stock
Dividends
Share-based payments
Total transactions with theowners of the Parent
Total net changes during
the period
As at 31 May 20179

Capitalstock
10,273Foreign
Treasury Available- currency Cash-flow
CapitalRetainedstock,
for-sale translation
hedge
surplusearnings
at costreserve
reserve
reserve
13,070613,974(15,633)
248(2,811)(44,619)

Equityattributableto owners
Nonof thecontrolling
Total
Parentinterests(47,183)
574,501
23,159Total
equity597,661——

120,113

—

—

—

—

—

120,1138,460

128,573

—

—

—

—

(44)

20,62649,72470,30570,305

1,577

71,883——

120,113—(44)

20,62649,72470,305

190,419

10,038200,457

—

—

—

(6)

—

—

—

—

(6)

—

(6)

—
—
—

542
—
768

—
(34,670)
—

63
—
—

—
—
—

—
—
—

—
—
—

—
—
—

605
(34,670)768—(3,462)—

605(38,132)
768

—

1,310

(34,670)

57

—

—

—

—

(33,302)(3,462)(36,764)—
10,273

1,310
14,38085,442
699,41757(15,575)(44)
203

20,626
17,81449,724
5,104

70,30523,122

157,116
731,618

6,575
29,734

163,692
761,353— 16 —

For the nine months ended 31 May 2018
(Millions of yen)
Other components of equity

Note
As at 1 September 2017
Net changes during
the period
Comprehensive income/(loss)
Profit/(loss) for theperiodOther 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
Increase in equity
due to capitalincrease by
consolidated
subsidiary
Capital contributions
from non-controllinginterests
Total transactions with theowners of the Parent
Total net changes during theperiodAs at 31 May 20189

Capitalstock
10,273Foreign
Treasury Available- currency Cash-flow
CapitalRetainedstock,
for-sale translation
hedge
surplusearnings
at costreserve
reserve
reserve
14,373
698,584(15,563)2
21,8062,293

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

148,335

—

—

—

—

—

148,335

12,919161,254

—

—

—

—

778

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

13,057

153,946

—

—

—

(1)

—

—

—

—

(1)

—

(1)

—
—
—

1,005
—
962

—
(38,248)
—

116
—
—

—
—
—

—
—
—

—
—
—

—
—
—

1,121
(38,248)962—(6,579)—1,121(44,828)
962

—

—

—

—

—

—

—

—

—

173

173

—

1,874

—

—

—

—

—

—

1,874

1,754

3,629

—

3,842

(38,248)

114

—

—

—

—

(34,291)(4,651)(38,943)—
10,273

3,842
18,216

110,086
808,670

114(15,449)

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

106,597
838,368

8,405
38,678115,003
877,046— 17 —

(4)Interim Condensed Consolidated Statement of Cash Flows(Millions of yen)
NoteCash flows from operating activities
Profit/(loss) before income taxes
Depreciation and amortization
Impairment losses
Increase/(decrease) in provisions
Interest and dividend income
Interest expenses
Foreign exchange losses/(gains)Share of profit and loss of associates accounted forunder the equity method
Losses on disposal of property, plant and equipment
Decrease/(increase) in trade and other receivables
Decrease/(increase) in inventories
Increase/(decrease) in trade and other payables
Decrease/(increase) in other assets
Increase/(decrease) in other liabilities

Nine months ended
31 May 2017

Nine months ended
31 May 2018

195,477
27,539—(8,652)(3,518)2,235(13,331)

237,475
32,961
10,353(9,095)(5,414)
2,072
4,764

(512)
1,328
(31,418)
50,47018,515(4,873)
15,715
783

(457)
726
(32,973)
14,799(56,288)(38,783)
149,769(2,794)

Income taxes refund

249,760
3,518(1,935)(30,987)
20,840307,113
4,987(1,203)(53,036)260

Net cash generated by operating activities

241,196258,122(114,079)(29,282)

121,402(24,291)(9,193)(2,631)30,549(22,431)(10,588)(3,436)

1,619
(922)
1,292
1,178

1,978
(948)
1,635
(3,367)(25,623)(35,892)

8

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

Cash flows used in investing activities
Amounts deposited into bank deposits with original
maturities of three months or longer
Amounts withdrawn from bank deposits with original
maturities of three months or longer
Payments for property, plant and equipment
Payments for intangible assets
Payments for lease and guarantee deposits
Proceeds from collection of lease and guarantee
deposits
Payments for construction assistance fund receivables
Returns of construction assistance fund receivables
Others, net
Net cash used in investing activities— 18 —

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

Nine months ended
31 May 2017

Nine months ended
31 May 2018

7,141
(9,882)(1,222)(34,637)

1,778(1,453)(1,655)(38,217)

Others, net—(3,629)(4,069)
(133)

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

Net cash used in financing activities(46,433)(43,129)

12,876(4,543)

182,015

174,557

385,431

683,802567,446858,359

9Effect of exchange rate changes on the balance of
cash held in foreign currencies
Net increase/(decrease) in cash and cash
equivalents
Cash and cash equivalents at the beginning of
periodCASH AND CASH EQUIVALENTS AT THE END OFPERIOD— 19 —

Notes to the Interim Condensed Consolidated Financial Statements
1. Reporting Entity
FAST RETAILING CO., LTD. (the “Company”) is a company incorporated in Japan. The locations of the registered headquarters andprincipal offices of the Company are disclosed on the Group’s website (http://www.fastretailing.com/eng/).
The principal activities of the Company and its consolidated subsidiaries (the “Group”) are the operations of the UNIQLO
business (casual wear retail business operating under the “UNIQLO” brand in Japan and overseas), GU business, and Theory
business (apparel design and retail business in Japan and overseas), and other businesses.
2. Basis of Preparation
The interim condensed consolidated financial statements have been prepared in compliance with IAS 34. The Group meets allof the criteria of a “specified company” defined under Article 1-2 of the Consolidated Quarterly Financial Statements Rules,
and accordingly applies Article 93 of the Consolidated Quarterly Financial Statements Rules. Since the interim condensed
consolidated financial statements do not include all the information and disclosures required for consolidated financial
statements, they should be read in conjunction with the Group’s annual consolidated financial statements for the year ended 31
August 2017.
The interim condensed consolidated financial statements were approved on 13 July 2018 by Tadashi Yanai, Chairman, President
and CEO, and Takeshi Okazaki, Group Executive Vice President and CFO.
3. Significant Accounting Policies
Except for the following standards that have been newly applied, the accounting policies presented in the consolidated
financial statements for the year ended 31 August 2017 are applied consistently in the preparation of these interim condensed
consolidated financial statements.
The Group adopted the following new and revised standards and interpretations beginning with the preparation of the interim
condensed consolidated financial statements.
IFRS
IAS 7 (Amendments)
IAS12 (Amendments)

Title
Statement of Cash Flows
Income Taxes

Summary of new standards and amendments
Request for disclosure of changes in liabilities related tofinancing activities
Recognition of deferred tax assets for unrealized losses

The adoption of the above amendments has no material impact on the interim condensed consolidated financial statements.
4. Use of Estimates and Judgments
The preparation of the interim condensed consolidated financial statements in accordance with IAS 34 requires management
to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts ofassets and liabilities, income and expenses. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. The effects of the review of accounting estimates
are recognized in the accounting period in which the estimates were reviewed and in future accounting periods.
In principle, important estimates and judgments that have significant effects on the amounts recognized in the interim
condensed consolidated financial statements are the same as the preceding consolidated fiscal year.

— 20 —

5. Segment information(i)

Description of reportable segments
The Group’s reportable segments are components for which discrete financial information is available and is reviewed
regularly by the Board of Directors (the “Board”) to make decisions about the allocation of resources and to assess
performance.
From the first quarter of the current consolidated fiscal year, the operations of GU, which were previously included
as a part of the Global Brand segment, have been included in the GU segment (newly created segment). The Group now
discloses the GU reportable segment as a result of the Board’s increased focus as its scale of operation expands.
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 brand clothing business in Japan and overseas
Global Brands: Theory, Comptoir des Cotonniers, Princesse tam.tam and J Brand clothing operations(ii)

Segment revenue and results

For the nine months ended 31 May 2017
(Millions of yen)
Reportable segments
Others(Note 1)

Interim
Condensed
Adjustments Consolidated(Note 2)
Statementof Profit or
Loss

UNIQLOJapan

UNIQLOInternational

GU

GlobalBrandsTotal

Revenue

653,484

561,567

156,678

104,233

1,475,964

1,993

—

1,477,958

Operatingprofit/(loss)

92,64968,116

14,8294,319

179,913184

520

180,618

Segment
income/(loss)(Profit/(loss)
before income
taxes)

94,441

68,683

14,741

4,291

182,159184

13,133

195,477(Note 1) “Others” includes the real estate leasing business, etc.
(Note 2) “Adjustments” mainly includes revenue and corporate expenses which are not allocated to individual reportablesegments.

— 21 —

For the nine months ended 31 May 2018
(Millions of yen)
Reportable segments
Others(Note 1)

Interim
Condensed
Adjustments Consolidated(Note 2)
Statementof Profit or
Loss

UNIQLOJapan

UNIQLOInternational

GU

GlobalBrandsTotal

Revenue

704,460

716,092

166,685

114,781

1,702,020

2,129

—

1,704,149

Operatingprofit/(loss)

120,057

112,418

15,080(3,549)244,006

205(5,314)

238,897

Segment
income /(loss)(Profit/(loss)
before income
taxes)

119,991

111,292

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

237,475

Other disclosure:
Impairment
losses (Note 3)

375

237

19

8,937

9,568

—

785

10,353(Note 1) “Others” includes the real estate leasing business, etc.
(Note 2) “Adjustments” mainly includes revenue and corporate expenses which are not allocated to individual reportablesegments.
(Note 3) For the details of Impairment losses, refer to Note “8. Impairment losses”.
For the three months ended 31 May 2017
(Millions of yen)
Reportable segments
Total

Others(Note 1)UNIQLOJapan

UNIQLOInternational

Revenue

198,362

168,705

58,89433,818459,780668—

460,449

Operatingprofit/(loss)

23,86019,342

7,402

1,678

52,28470(2,394)49,960

Segment
income/(loss)(Profit/(loss)
before income
taxes)

23,19919,460

7,372

1,672

51,70570(3,909)47,866

GU

GlobalBrandsInterim
Condensed
Adjustments Consolidated(Note 2)
Statementof Profit 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 reportablesegments.

— 22 —

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

GlobalBrandsInterim
Condensed
Adjustments Consolidated(Note 2)
Statementof Profit or
Loss

Others(Note 1)

Total

UNIQLOJapan

UNIQLOInternational

Revenue

210,785

208,635

60,82436,332516,578806—

517,384

Operatingprofit/(loss)

31,32731,655

5,925

2,103

71,01188(2,694)

68,404

Segment
income/(loss)(Profit/(loss)
before income
taxes)

31,77832,251

5,873

2,070

71,97489

215

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

332

51

—

29

413

—

—

413

GU

(Note 1) “Others” includes the real estate leasing business, etc.
(Note 2) “Adjustments” mainly includes revenue and corporate expenses which are not allocated to individual reportablesegments.
(Note 3) For the details of Impairment losses, refer to Note “8. Impairment losses”.
6. Inventories
Write-down of inventories to net realizable value and recognized as expenses is as follows:(Millions of yen)
Nine months ended
31 May 2017

Nine months ended
31 May 2018

3,506

4,082

Write-down of inventories to net realizable value
7. Property, plant and equipment
The breakdown of property, plant and equipment at each reporting date is as follows:(Millions of yen)
As at
31 August 2017
Buildings and structures
Furniture, equipment and vehicles
Land
Construction in progress
Lease assets
Total— 23 —As at
31 May 2018

96,77813,757
1,927
6,824
17,69099,144
14,111
1,927
5,436
27,911

136,979

148,532

8. Impairment losses
During the nine months ended 31 May 2018, the Group recognized impairment losses that amounted to 10,353 million
yen on mainly goodwill related to the Comptoir des Cotonniers business and a trademark owned by the Helmut Lang brandunder the Theory business, because it is not expected to earn profit that was estimated initially. Those impairment losses areincluded in “other expenses” on the consolidated statement of profit or loss.
Nine months ended 31 May 2017
Not applicable.
Nine months ended 31 May 2018(1) Impairment losses related to the Comptoir des Cotonniers businessOf the total impairment losses that amounted to 10,353 million yen, 7,792 million yen represented an impairment loss forgoodwill related to the Comptoir des Cotonniers business.
(2) Impairment losses related to the Helmut Lang brand under the Theory businessOf the total impairment losses that amounted to 10,353 million yen, 1,039 million yen represented an impairment loss fora trademark owned by the Helmut Lang brand.
9. Dividends
The total amount of dividends paid was as follows:
Dividends paid during the nine months ended 31 May 2017
Total dividends(Millions of yen)

Resolution

Dividends per share(Yen)

Meeting of the Board of Directors on 4 November 2016

16,824165

Meeting of the Board of Directors on 13 April 2017

17,846

175

Dividends for which the declared date is 31 August 2016 are paid on or after 11 November 2016 as the effective date.
Dividends for which the declared date is 28 February 2017 are paid on or after 12 May 2017 as the effective date.
Dividends paid during the nine months ended 31 May 2018
Total dividends(Millions of yen)

Resolution

Dividends per share(Yen)

Meeting of the Board of Directors on 2 November 2017

17,847175

Meeting of the Board of Directors on 12 April 2018

20,401200

Dividends for which the declared date is 31 August 2017 are paid on or after 10 November 2017 as the effective date.
Dividends for which the declared date is 28 February 2018 are paid on or after 11 May 2018 as the effective date.
10. Selling, general and administrative expenses
The breakdown of selling, general and administrative expenses for each reporting period is as follows:(Millions of yen)
Nine months ended
31 May 2017

Nine months ended
31 May 2018

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

57,686
133,062
27,53924,108
185,419
118,345

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

Total

546,162

598,017— 24 —

11. Other income and other expenses
The breakdown of other income and other expenses for each reporting period is as follows:(Millions of yen)
Nine months ended
31 May 2017

Nine months ended
31 May 2018

2,030
2,244

—
2,124

4,275

2,124

Nine months ended
31 May 2017

Nine months ended
31 May 2018

—
1,328
—
2,097

1,577
726
10,353
3,403

3,426

16,060

Other income
Foreign exchange gains*
Others
Total(Millions of yen)

Other expenses
Foreign exchange losses*
Loss on retirement of property, plant and equipment
Impairment losses
OthersTotal* Currency adjustments incurred in the course of operating transactions are included in “other income” or” other expenses”.
12. Finance income and finance costs
The breakdown of finance income and finance costs for each reporting period is as follows:(Millions of yen)
Nine months ended
31 May 2017

Nine months ended
31 May 2018

Finance income
Foreign exchange gains*

13,331—

Interest income

3,513

5,413

Others
Total

250

0

17,094

5,414(Millions of yen)

Nine months ended
31 May 2017

Nine months ended
31 May 2018

Finance costs
Foreign exchange losses*
Interest expenses
Total

—

4,764

2,235

2,072

2,235

6,836

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

— 25 —

13. Earnings per share
Nine months ended 31 May 2017

Nine months ended 31 May 2018

Equity per share attributable to ownersof the Parent (Yen)7,174.08

Equity per share attributable to ownersof the Parent (Yen)

8,218.13

Basic earnings per share for the period (Yen)

1,177.89

Basic earnings per share for the period (Yen)

1,454.29

Diluted earnings per share for the period (Yen)

1,176.18

Diluted earnings per share for the period (Yen)

1,451.77(Note) The basis for calculation of basic earnings/(loss) per share and diluted earnings per share for the period is as follows:
Nine months ended
31 May 2017

Nine months ended
31 May 2018

120,113148,335

Basic earnings/(loss) per share for the period
Profit/(loss) for the period attributable to owners of the parent (Millions of yen)
Profit/(loss) not attributable to common shareholders (Millions of yen)
Profit/(loss) attributable to common shareholders (Millions of yen)
Average number of common stock outstanding during the period (Shares)——

120,113148,335

101,973,153

101,998,432

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

Increase in number of common stock (Shares)

148,148

176,805(Share subscription rights)(148,148)(176,805)

Three months ended 31 May 2017

Three months ended 31 May 2018

Basic earnings per share for the period (Yen)

224.35

Basic earnings per share for the period (Yen)433.13

Diluted earnings per share for the period (Yen)

224.02

Diluted earnings per share for the period (Yen)432.42(Note) The basis for calculation of basic earnings/(loss) per share and diluted earnings/(loss) per share for the period is as follows:
Three months ended Three months ended
31 May 201731 May 2018
Basic earnings/(loss) per share for the period
Profit/(loss) for the period attributable to owners of the Parent (Millions of yen)

22,879Profit/(loss) not attributable to common shareholders (Millions of yen)
Profit/(loss) attributable to common shareholders (Millions of yen)
Average number of common stock during the period (Shares)

44,184——22,87944,184

101,979,476

102,011,369

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

Increase in number of common stock (Shares)

151,776

166,934(Share subscription rights)(151,776)(166,934)

14. Fair value of financial instruments
The information about the carrying amount and fair value of financial instruments is as follows:(Millions of yen)
As at 31 August 2017
Carrying amounts

As at 31 May 2018

Fair value

Carrying amounts

Fair value

Long-term borrowings (Note)

12,146

12,253

10,327

10,389Corporate bonds

249,583

253,504

249,656

253,241

Lease obligations (Note)

19,023

19,131

29,23529,446

280,753284,889

289,219

293,077

Total(Note) The above includes the outstanding balance of borrowings due within one year.
The fair value of short-term financial assets, short-term financial liabilities and long-term financial assets are measured byamortized cost and approximate their carrying amounts.

— 26 —

The fair value of corporate bonds is measured with reference to market price.
The fair value of long-term borrowings and lease obligations are classified by term, and are calculated on the basis of thecurrent value applying a discount rate that takes into account the time remaining to maturity and credit risk.
Available-for-sale financial assets whose fair value cannot be measured reliably are carried at cost.
The following tables illustrate the fair value measurement hierarchy of the Group’s financial instruments. All assets
and liabilities for which fair value is measured or disclosed in the financial statements are categorized within the fair value
hierarchy based on the following characteristics:
Level 1 — based on quoted prices (unadjusted) in active markets for identical assets or liabilities
Level 2 — based on valuation techniques for which the lowest level input that is significant to the fair value measurement
is observable, either directly or indirectly
Level 3 — based on valuation techniques for which the lowest level input that is significant to the fair value measurement
is unobservable① The following tables illustrate the fair value measurement hierarchy of the Group’s financial instruments:(Millions of yen)
As at 31 August 2017

Level 1

Level 2

Level 3

Total

Available-for-sale financial assets

16

—

—

16

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

—

(86)

—

(86)

Foreign currency forward contracts designatedas hedging instruments

—

273

—

273

16

186

—

202

Total

(Millions of yen)
As at 31 May 2018
Available-for-sale financial assets

Level 1

Level 2

Level 3

Total

3,514

—

—

3,514

Financial instruments at FVTPL

—

0

—

0

Foreign currency forward contracts designatedas hedging instruments—(8,426)—(8,426)

3,514(8,426)—(4,911)Total

For the valuation of Level 2 derivative financial instruments for which a market value is available, we use a valuation
model that uses observable data on the measurement date using inputs such as interest rates, yield curves, currency rates
and volatility in comparable instruments.
The Company did not have any transfers between levels of fair value measurements during the year ended 31 August
2017 and the nine months ended 31 May 2018.
② The financial instruments measured at amortized cost
The fair value measurements for corporate bonds, long-term borrowings and lease obligations are classified as Level 2.

— 27 —

15. Commitments for expenditure
The Group had the following commitments at each reporting date:(Millions of yen)
As at
31 August 2017
Commitment for the acquisition of property, plant and equipment
Commitment for the acquisition of intangible assets
Total

As at
31 May 2018

17,347
11,11012,231
4,077

28,457

16,30916. Subsequent Events
Based on the comprehensive decision made in the Board of Directors meeting held on 23 April 2018, the conditions of theissuance of non-collateralized corporate bonds were decided on 30 May 2018, and these bonds were issued on 6 June 2018as detailed below.
5th non-collateralized corporate bonds
1.
Issue amount:
80,000 million yen
2.
Issue price:
100 yen at par3.
Coupon:0.110% per annum
4.
Maturity date:
6 June 2023
5.
Redemption method:
Lump sum payment at maturity
6.
Collateral:
There is no collateral or guarantee attached to the bonds, and no funds held in reserve
7.
Use of funds:
Capital expenditures, working capital, investments and loans, and redemption of bonds
6th non-collateralized corporate bonds
1.
Issue amount::
30,000 million yen
2.
Issue price:
100 yen at par3.
Coupon:0.220% per annum
4.
Maturity date:
6 June 2025
5.
Redemption method:
Lump sum payment at maturity
6.
Collateral:
There is no collateral or guarantee attached to the bonds, and no funds held in reserve
7.
Use of funds:
Capital expenditures, working capital, investments and loans, and redemption of bonds
7th non-collateralized corporate bonds
1.
Issue amount:
100,000 million yen
2.
Issue price:
100 yen at par3.
Coupon:0.405% per annum
4.
Maturity date:
6 June 2028
5.
Redemption method:
Lump sum payment at maturity
6.
Collateral:
There is no collateral or guarantee attached to the bonds, and no funds held in reserve
7.
Use of funds:
Capital expenditures, working capital, investments and loans, and redemption of bonds
8th non-collateralized corporate bonds
1.
Issue amount:
40,000 million yen
2.
Issue price:
100 yen at par3.
Coupon:0.880% per annum
4.
Maturity date:
4 June 2038
5.
Redemption method:
Lump sum payment at maturity
6.
Collateral:
There is no collateral or guarantee attached to the bonds, and no funds held in reserve
7.
Use of funds:
Capital expenditures, working capital, investments and loans, and redemption of bonds

2. Others
Dividends
The Company resolved to pay dividends from retained earnings at the meeting of the Board of Directors convened on
12 April 2018.
The total amount of dividends paid and amount per share are stated under “Financial section 1. Interim Condensed
Consolidated Financial Statements, Notes to the Interim Condensed Consolidated Financial Statements 9. Dividends”.
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(TRANSLATION)
INDEPENDENT ACCOUNTANT’S REVIEW REPORT
13 July 2018

To the Board of Directors of FAST RETAILING CO., LTD.

Deloitte Touche Tohmatsu LLC
Designated Unlimited Liability Partner,
Engagement Partner,
Certified Public Accountant
Koichi Okubo__________________
Designated Unlimited Liability Partner,
Engagement Partner,
Certified Public Accountant
Hirofumi Otani__________________
Designated Unlimited Liability Partner,
Engagement Partner,
Certified Public Accountant
Emiko Minowa__________________
Pursuant to the first paragraph of Article 193-2 of the Financial Instruments and Exchange Act, we have reviewed the interim
condensed consolidated financial statements included in the Financial Section, namely, the interim condensed consolidated
statement of financial position of FAST RETAILING CO., LTD. (the “Company”) and its consolidated subsidiaries (collectively,
the “Group”) as at 31 May 2018 and the related interim condensed consolidated statements of profit or loss and othercomprehensive income for the three-month and nine-month periods then ended, and the interim condensed consolidated
statement of changes in equity and cash flows for the nine-month period then ended, and the related notes to the interim
condensed consolidated financial statements.
Management’s Responsibility for the Interim Condensed Consolidated Financial Statements
Management is responsible for the preparation and fair presentation of these interim condensed consolidated financial
statements in conformity with International Accounting Standard 34 “Interim Financial Reporting” (“IAS 34”), pursuant to
Article 93 of the “Rules Governing Term, Form and Preparation of Consolidated Quarterly Financial Statements”, and for suchinternal control as management determines is necessary to enable the preparation of interim condensed consolidated financial
statements that are free from material misstatement, whether due to fraud or error.
Accountant’s responsibility
Our responsibility is to express a conclusion on these interim condensed consolidated financial statements based on ourreview. We conducted our review in accordance with quarterly review standards generally accepted in Japan. A review consists
principally of making inquiries, primarily of management and persons responsible for financial and accounting matters, andapplying analytical procedures and other quarterly review procedures. A review is substantially less in scope than an audit
conducted in accordance with auditing standards generally accepted in Japan. We believe that we have obtained the evidence
to provide a basis for our conclusion.
Accountant’s Conclusion
Based on our review, nothing has come to our attention that causes us to believe that the interim condensed consolidated
financial statements referred to above do not present fairly, in all material respects, the condensed consolidated financial
position of the Company and its consolidated subsidiaries as at 31 May 2018, and the condensed consolidated results of theiroperations for the three-month and nine-month periods then ended, and their cash flows for the nine-month period then ended
in conformity with IAS 34.
Other information
Consolidated financial statements of the Group for the fiscal year ended 31 August 2017 (the “consolidated financial
statements”) and interim condensed consolidated financial statements that include the interim condensed consolidated
statement of financial position of the Group as at 31 May 2017 and the related interim condensed consolidated statements
of profit or loss and other comprehensive income for the three-month and nine-month periods then ended, and the interim
condensed consolidated statements of changes in equity and cash flows for the nine-month period then ended, and the related
notes to the interim condensed consolidated financial statements (collectively, the “interim condensed consolidated financial
statements”) were audited and reviewed, respectively, by the predecessor auditor. The predecessor auditor has issued an
unqualified opinion dated 30 November 2017 on the consolidated financial statements and an unqualified conclusion dated
14 July 2017, on the interim condensed consolidated financial statements, respectively.
Interest
Our firm and the engagement partners do not have any interest in the Company for which disclosure is required under theprovisions of the Certified Public Accountants Act.
The above represents a translation, for convenience only, of the original report issued in the Japanese language.
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