FAST RETAILING CO., LTD.
迅銷有限公司Third Quarterly Report 2015/16
2016.3.1–2016.5.31
Stock Code: 6288

Contents
Corporate Profile

2

Financial Highlights

3Management Discussion and Analysis

5

Information about the Reporting Entity

9

Financial Section

11

Interim Condensed Consolidated Statement of
Financial Position

12

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

13Interim Condensed Consolidated Statement of
Changes in Equity

17

Interim Condensed Consolidated Statement of Cash Flows

19

Notes to the Interim Condensed Consolidated
Financial Statements

21

Others29

Report on Review of Interim Condensed Consolidated
Financial Statements

30

Corporate Profile
Board of Directors
Executive Director

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

Mr. Tadashi Yanai (Chairman of the Board, President andChief Executive Officer)

Non-Executive Directors
Principal Place of Business in Hong Kong

Mr. Toru Murayama (External Director)
Mr. Takashi Nawa (External Director)

702-706, 7th Floor, Miramar Tower,
No. 132 Nathan Road
Tsim Sha Tsui
KowloonHong Kong

Independent Non-Executive Directors
Mr. Toru Hambayashi (External Director)
Mr. Nobumichi Hattori (External Director)
Mr. Masaaki Shintaku (External Director)

HDR Registrar and HDR Transfer Office
Statutory Auditors

Computershare Hong Kong Investor Services Limited
Shops 1712–1716, 17th Floor
Hopewell Centre
183 Queen’s Road East
WanchaiHong Kong

Mr. Akira Tanaka (Kansayaku) (Standing Statutory Auditor)
Mr. Masaaki Shinjo (Kansayaku) (Standing Statutory Auditor)
Mr. Takaharu Yasumoto (Shagai Kansayaku)(External Statutory Auditor)
Mr. Akira Watanabe (Shagai Kansayaku)(External Statutory Auditor)
Ms. Keiko Kaneko (Shagai Kansayaku)(External Statutory Auditor)

Stock CodeHong Kong: 6288
Japan: 9983

Joint Company Secretaries
Website Address

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

http://www.fastretailing.com

Auditors
Ernst & Young ShinNihon LLC

Principal Banks
Sumitomo Mitsui Banking Corporation
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Mizuho Bank, Ltd.
The Hong Kong and Shanghai Banking Corporation Limited

Registered Office and Headquarters
717-1 Sayama
Yamaguchi City
Yamaguchi 754-0894
Japan

—2—

Financial Highlights
Financial Summary

Term

Third Quarterof
54th Year

Third Quarterof
55th Year54th Year

Accounting period

Nine months
ended
31 May2015

Nine months
ended
31 May2016

Year ended
31 August2015

1,348,114

1,434,616

1,681,781

189,274

145,829

164,463

Profit before income taxes (Millions of yen)

210,282

122,095

180,676

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

132,364

71,010110,027

233,428(46,897)

163,871

Revenue (Millions of yen)
Operating profit (Millions of yen)Comprehensive income/(loss) attributable to ownersof the parent (Millions of yen)
Equity attributable to owners of the parent (Millions of yen)
Total assets (Millions of yen)

820,414

668,850

750,937

1,270,600

1,272,753

1,163,706

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

1,298.60

696.501,079.42

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

1,296.99

695.54

1,078.08

64.6

52.6

64.5

Ratio of equity attributable to owners of
the parent to total assets (%)
Net cash from operating activities (Millions of yen)

181,105

132,463

134,931

Net cash used in investing activities (Millions of yen)

(60,800)(218,979)(73,145)

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

(41,118)

203,256(41,784)

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

424,081453,927355,212Three months
ended
31 May2015

Three months
ended
31 May2016

Revenue (Millions of yen)

398,429422,962

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

27,611

23,967

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

270.86235.07

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

—3—

Business Description
There were no significant changes in the nature of business engaged in by the Group (the Company and its subsidiaries) during
the nine months ended 31 May 2016.
Important changes concerning subsidiaries are as follows:(Others)
Newly consolidated subsidiary:
Wearex Co., Ltd.

—4—

Management Discussion and Analysis
Business Review
1. Business and Operational Risks
No new business-related risks have arisen during the three months ended 31 May 2016.
There have been no important changes concerning business-related risks as stated in the annual report for the preceding
consolidated fiscal year.

2.

Significant Contract in Business Operation
None.

3.

Financial Analysis(1)

Results of Operations
The Fast Retailing Group reported a rise in revenue but a fall in profit in the first nine months of fiscal 2016 from 1
September 2015 to 31 May 2016. Consolidated revenue reached ¥1.4346 trillion (+6.4% year-on-year), while consolidated
operating profit totaled ¥145.8 billion (-23.0% year-on-year), consolidated profit before income taxes stood at ¥122.0
billion (-41.9% year-on-year), and profit attributable to owners of the parent totaled ¥71.0 billion (-46.4% year-on-year).
Breaking these results down into the three business segments, Global Brands reported a rise in both revenue and profit,
while both UNIQLO Japan and UNIQLO International reported a rise in revenue but a decline in profit. Furthermore, due
to the yen being appreciated at the end of May than at the beginning of the period, foreign exchange losses in otherexpenses were down 14.8 billion yen year on year to 6.7 billion yen, while the yen equivalent of long-term assets inforeign currencies etc. reduced, so foreign exchange losses in finance costs were down 43.4 billion yen year on year to23.4 billion yen. As a result, consolidated profit before income taxes declined by a considerable 41.9% year-on-year overthe same period.
However, the Group did report a clear improvement in consolidated results for the three months from 1 March to 31 May
2016, with consolidated revenue rising 6.2% year-on-year and consolidated operating profit expanding 18.6% year-onyear, thanks to a recovery in performance at both UNIQLO Japan and UNIQLO International.
The Group’s medium-term vision is to become the world’s number one apparel manufacturer and retailer. To this aim,
we are focusing our efforts on expanding UNIQLO’s global operations and our low-priced GU casual fashion brand. We
continue to boost UNIQLO store numbers in each country where we operate, opening global flagship stores and largeformat stores in major cities around the world to help consolidate UNIQLO’s position as a key global brand. On the
product side, we have sought to boost awareness and visibility of the UNIQLO brand across global markets by offering
exciting collaborations with well-known designers and artistic directors from other brands, such as Ines de la Fressange,
Lemaire, and Carine Roitfeld. We have set a target to expand e-commerce to 30% of total sales over the medium term,
and are currently in the process of aggressively transforming our distribution systems. In April 2016, we launched ournext-generation distribution center in Ariake, Tokyo, and we are pressing ahead with plans to open new distribution
centers elsewhere in Japan as well as internationally, starting in China and the United States. Also, our GU brand isexperiencing strong growth as a second pillar brand for the Group, and we expect to accelerate GU store openings outside
Japan going forward.
UNIQLO Japan
UNIQLO Japan reported a rise in revenue but a fall in profit in the nine months to May 2016, with revenue rising to ¥645.4
billion (+1.1% year-on-year) and operating profit declining to ¥93.2 billion (-18.1% year-on-year). However, the results
show a recovery in both revenue and profit in the third quarter from March to May 2016, with revenue rising 4.4% yearon-year and operating profit expanding 19.7% year-on-year. Same-store sales rose 2.8% year-on-year thanks to strong
sales of trendy jogger pants and skants for women, and strong sales of sports advertising campaign items made fromunique AIRism and DRY functional materials. The e-commerce segment also continued to grow strongly, with online sales
rising 40.6% year-on-year to 5.5% of total sales. On the profit side, the gross profit margin improved 0.9 point year-onyear after a successful pricing strategy review in spring 2016 improved the discounting rate. The selling, general andadministrative expenses ratio also improved 1.2 points year-on-year following some effective cost-cutting measures.
While the radical overhaul of distribution systems is boosting distribution costs for the time being, other costs such as
advertising and promotion expenses and outsourcing expenses all declined significantly. The total number of UNIQLO
Japan stores increased by 2 to 846 stores at the end of May 2016. That total includes 39 franchise stores.

—5—

UNIQLO International
UNIQLO International reported a rise in revenue but a decline in profit for the nine months to May 2016, with revenue
reaching ¥532.8 billion (+10.6% year-on-year) and operating profit totaling ¥42.2 billion (-18.7% year-on-year). However,
the operation reported increases in both revenue and profit for the third quarter from March to May 2016, with revenue
rising 5.3% and operating profit 41.1% year-on-year. UNIQLO Greater China (encompassing operations in mainland China,
Hong Kong and Taiwan) generated a recovery in profits, while UNIQLO Southeast Asia and Oceania (Singapore, Malaysia,
Thailand, the Philippines, Indonesia and Australia) and UNIQLO Europe (U.K., France, Russia, Germany and Belgium)
generated continued rises in both revenue and profit. UNIQLO South Korea reported another decline in profit, while
UNIQLO USA reported a smaller operating loss. Looking at individual UNIQLO International operations in more detail, theMarch 2016 opening of the newly refurbished 311 Oxford Street global flagship store helped boost UNIQLO visibility inEurope. The gross profit margin at UNIQLO USA improved once the inventory adjustment cycle ran its course. UNIQLO
USA business expenses ratios also improved as we pressed ahead with new management strategies. UNIQLO South Korea
continued to struggle in the face of sluggish economic conditions and increasingly fierce competition. The total number of
UNIQLO International stores had expanded by 161 year-on-year to 928 stores as of 31 May 2016.
Global Brands
Global Brands reported gains in both revenue and profit in the first nine months of fiscal 2016, with revenue rising 12.6%
year-on-year to ¥254.3 billion and operating profit increasing by 16.5% year-on-year to ¥23.0 billion. Global Brands also
generated revenue and profit increases for the March-May quarter, with revenue rising 12.0% year-on-year and operating
income expanding 8.7% year-on-year. GU continued to grow strongly, with the brand reporting double-digit growth insame-store sales on the back of robust sales of advertising campaign items such as skants and long T-shirts. Profit roseslightly at the Theory brand, while Comptoir de Cotonniers reported an expanded loss. Princesse tam.tam and the J Brand
premium denim label reported continued losses.
Corporate Social Responsibility (“CSR”) and Environmental Protection
The basic policy underlying the Group’s CSR activities consists of fulfilling our social responsibility, contributing tocommunities and addressing social issues and creating new value, both globally and locally.
On April 1, 2016, the TSURUMI Children’s Hospice for children with life-threatening illnesses opened in Tsurumi Ward,
Osaka, supported by UNIQLO and the Nippon Foundation. This facility is the first community children’s hospice in Japan,
with its operation led by local volunteers, and supported by medical, educational, and childcare specialists. It provides a
space where seriously ill children and their families can relax as though they were in a second home, in an environmentthat guarantees safety and security.
The 2016 Kumamoto earthquake wreaked tremendous damage on the people of Kumamoto Prefecture, and we provided
emergency clothing supplies to assist the victims. We donated 13,600 items as emergency supplies to the afflicted areathat were in high demand such as underwear, socks and loungewear.
On June 20, 2016 (World Refugee Day) the 10 Million Ways to HELP Project, which provides clothing to refugees anddisplaced persons around the world, achieved its goal of collecting 10 million articles of clothing — 12.81 million items
in total. This was made possible thanks to the support of 112 affiliated companies in 846 locations, 238 educational
institutions, 28 student organizations, and members of local communities in the 16 countries and regions in which
UNIQLO operates. Clothing that is collected is delivered to refugees and displaced persons around the world throughorganizations such as the United Nations High Commissioner for Refugees, with which Fast Retailing has a global
partnership. We assess the clothing requirements in advance to ensure that the clothing requirements of areas in needare met.

—6—

(2)

Financial Positions
Total assets as at 31 May 2016 were ¥1,272.7 billion, which was an increase of ¥109.0 billion relative to the end of thepreceding consolidated fiscal year. The principal factors were an increase of ¥98.7 billion in cash and cash equivalents, anincrease of ¥30.3 billion in trade and other receivables, an increase of ¥176.4 billion in other current financial assets, adecrease of ¥42.2 billion in inventories, and a decrease of ¥143.6 billion in derivative financial assets.
Total liabilities as at 31 May 2016 were ¥579.1 billion, which was an increase of ¥190.2 billion relative to the end of thepreceding consolidated fiscal year. The principal factors were a decrease of ¥22.1 billion in income taxes payable, anincrease of ¥247.9 billion in non-current financial liabilities and a decrease of ¥42.3 billion in deferred tax liabilities.
Total net assets as at 31 May 2016 were ¥693.5 billion, which was a decrease of ¥81.2 billion relative to the end of
the preceding consolidated fiscal year. The principal factor was an increase of ¥34.3 billion in retained earnings and adecrease of ¥117.9 billion in other components of equity.

(3)

Cash Flows Information
Cash and cash equivalents as at 31 May 2016 had increased by ¥29.8 billion from the nine months ended 31 May 2015, to¥453.9 billion.
Net cash from operating activities for the nine months ended 31 May 2016 was ¥132.4 billion, which was a decrease of¥48.6 billion (-26.9 % year-on-year) from the nine months ended 31 May 2015. The principal factors were ¥122.0 billion
in profit before income taxes (a decrease of ¥88.1 billion from the nine months ended 31 May 2015) and ¥23.4 billion
increase in foreign exchange losses (an increase of ¥43.4 billion from the nine months ended 31 May 2015).
Net cash used in investing activities for the nine months ended 31 May 2016 was ¥218.9 billion, which was an increaseof ¥158.1 billion (+260.2 % year-on-year) from the nine months ended 31 May 2015. The principal factors were ¥182.3
billion for increase in bank deposits with maturity over 3 months (an increase of ¥164.9 billion from the nine months
ended 31 May 2015) and ¥26.9 billion for purchases of property, plant and equipment (a decrease of ¥5.4 billion from thenine months ended 31 May 2015).
Net cash from financing activities for the nine months ended 31 May 2016 was ¥203.2 billion, which was an increaseof ¥244.3 billion from the nine months ended 31 May 2015. The principal factor was ¥249.3 billion for proceeds fromissuance of bonds (an increase of ¥249.3 billion from the nine months ended 31 May 2015).

—7—

(4)

Operational and Financial Assignment
There have been no important changes during the nine months ended 31 May 2016 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 2016.

<Subsidiaries in Japan>
Not applicable.
<Overseas Subsidiaries>
Company name

Type of facility

Name of business

Location

Completion date

UNIQLO Illinois LLCUNIQLOInternational Stores

Chicago N. Michigan Chicago City Illinois,
Ave
U.S.A.

October 2015

UNIQLO EUROPE LIMITEDUNIQLOInternational Stores

Meir 67/69,
Antwerp

Antwerp City,
Belgium.

October 2015

UNIQLO EUROPE LIMITEDUNIQLOInternational Stores

311 Oxford Street,
LondonLondon,United Kingdom

March 2016

The following are the important facilities that were newly planned during the three months ended 31 May 2016.
<Subsidiaries in Japan>
Not applicable.
<Overseas Subsidiaries>(1)

Important New Facilities

Amount ofplanned investment
Company

Type of

Name ofnamefacilitybusiness

Location

AmountConstruction

Construction

Total

already

startcompletion(Millions of

disbursed

yen)(Millions

Planned sales
floor area

Reference(m2)

of yen)UNIQLOUNIQLO
Florida LLC(Notes)InternationalStore

DisneySprings

Florida Lake
Buena Vista

1,333

U.S.A

1,333

February

July

2016

2016

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—

2,946

lease

Information about the Reporting Entity
1. Stock Information(1) Number of Shares(i)

Total number of shares
Type

Total number of authorised shares (shares)

Common stock

300,000,000
Total

300,000,000(Note) There are no provisions for preemptive rights under the Companies Act of Japan, which would oblige the Company tooffer new shares on a pro rata basis to existing shareholders.
(ii)

Shares Issued

Type

As at 31 May 2016

Number of shares issued
as of submission date
(Shares)(As at 15 July 2016)

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

Details

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

1 March 2016 to
31 May 2016—

106,073,656—

10,273—

4,578(Note) There was no increase or decrease in the total number of shares issued, capital stock or capital reserve during the ninemonths ended 31 May 2016.

(6)

Principal Shareholders
There are no items to state, 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 2016, 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 of the immediately preceding record date (29 February 2016).

(i)

Shares issued
As at 31 May 2016
Number of shares(Shares)Number of voting rights(Number)

Remarks

Non-voting shares

—

—

—

Shares subject to restrictions on voting rights(treasury stock)

—

—

—

Shares subject to restrictions on voting rights(others)———

Shares with full voting rights(treasury stock, etc.)(Shares held astreasury stock)
Common stock
4,117,400——

Shares with full voting rights (others)

Common stock
101,904,100

Class

Common stock

Shares less than one unit

52,156

Total number of shares issued

106,073,656

Total number of voting rights of allshareholders—(Notes)1,019,041(Note) 1—(Notes) 1, 2——
1,019,041—

1. The columns for the number of shares of “Shares with full voting rights (others)” and “Shares less than one unit”
respectively include 2,700 shares and 84 shares held in the name of Japan Securities Depository Center, Inc.
2. Common stock in the “Shares less than one unit” row includes 63 shares of treasury stock held by the Company.

(ii)

Treasury StockAs at 31 May 2016

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

2.

Holder’s address

717-1 Sayama,
Yamaguchi City,
Yamaguchi—

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

Total numberof shares held
(Shares)

Percentage of
total number ofshares issued(%)

4,117,400—

4,117,400

3.88

4,117,400—

4,117,400

3.88

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 2016.

— 10 —

Financial Section
1. Preparation of Interim Condensed Consolidated Financial Statements
The interim condensed consolidated financial statements of the Group were prepared in compliance with International
Accounting Standard 34 “Interim Financial Reporting” (“IAS 34”), pursuant to Article 93 of the “Rules Governing Term, Form andPreparation of Consolidated Quarterly Financial Statements” (2007 Cabinet Office Ordinance No. 64, hereinafter referred to as“Consolidated Quarterly Financial Statements Rules”).
2. Review Certification
Pursuant to the first clause of Article 193-2 of the Financial Instruments and Exchange Act, the quarterly and interim condensed
consolidated financial statements of the Group for the three months and nine months ended 31 May 2016, respectively, arereviewed by Ernst & Young ShinNihon LLC.

— 11 —

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

1. Interim Condensed Consolidated Financial Statements(1)

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

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

As at 31 August 2015

As at 31 May 2016

355,21244,77722,593260,006
157,490
18,564
15,748453,927
75,147
199,090
217,806
13,886636
16,992874,394

977,488

Others129,340
27,16540,99175,940
11,107
4,766

128,030
26,21240,531
77,174
18,551
4,764

Total non-current assets

289,311295,265

1,163,706

1,272,753

181,577100
15,471
36,763
22,61535,714

187,480
6,244
13,43014,643
13,99740,598292,242276,394

25,513
10,20347,272
13,668273,480
10,336
4,941
14,02013
6
13

OthersTotal current assets
Non-current assets
Property, plant and equipment
Goodwill
Other intangible assets
Non-current financial assets
Deferred tax assets

7

13

Total assets
Liabilities and equity
LIABILITIESCurrent liabilities
Trade and other payables
Derivative financial liabilities
Other current financial liabilities
Income taxes payable
Provisions

13
13

OthersTotal current liabilities
Non-current liabilities
Non-current financial liabilities
Provisions
Deferred tax liabilities

13

Others96,658

302,778

388,901

579,172

10,273
11,524
602,623(15,699)
142,214

10,273
12,984
636,931(15,646)
24,306

Non-controlling interests

750,937
23,867

668,850
24,729Total equity

774,804

693,580

1,163,706

1,272,753

Total non-current liabilities
Total liabilities
EQUITY
Capital stock
Capital surplus
Retained earnings
Treasury stock, at cost
Other components of equity
Equity attributable to owners of the parent

Total liabilities and equity— 12 —

(2)Interim Condensed Consolidated Statement of Profit or Loss and Interim Condensed Consolidated Statement ofComprehensive Income
Interim Condensed Consolidated Statement of Profit or Loss
Nine months ended 31 May 2016
(Millions of yen)
Notes

Nine months ended
31 May 2015

Revenue

Nine months ended
31 May 2016

1,348,114(661,656)

1,434,616(740,240)

686,458(502,805)
9,641(4,020)694,375(540,479)
1,877(9,943)

189,274
21,840(833)

145,829
1,389(25,124)

Income taxes

210,282(70,272)

122,095(45,400)

Profit for the period

140,00976,694Non-controlling interests

132,364
7,645

71,010
5,684

Profit for the period

140,00976,694

1,298.60
1,296.99

696.50695.54

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

910

Other expenses

10

Operating profit
Finance income

11

Finance costs

11

Profit before income taxes

Attributable to:
Owners of the parent

Earnings per share
Basic (Yen)
Diluted (Yen)1212— 13 —

Three months ended 31 May 2016
(Millions of yen)
Notes

Three months ended
31 May 2015

RevenueThree months ended
31 May 2016

398,429(191,489)

422,962(205,523)

206,940(166,471)
1,566(2,838)217,439(169,749)
955(2,157)39,1977,717(298)

46,488416(6,850)

Income taxes

46,615(17,577)

40,054(14,794)

Profit for the period

29,03825,259Non-controlling interests

27,611
1,427

23,967
1,292

Profit for the period

29,03825,259270.86270.51235.07234.74

Cost of sales
Gross profit
Selling, general and administrative expenses
Other income
Other expenses
Operating profit
Finance income
Finance costs
Profit before income taxes

Attributable to:
Owners of the parent

Earnings per share
Basic (Yen)
Diluted (Yen)1212— 14 —

Interim Condensed Consolidated Statement of Comprehensive Income
Nine months ended 31 May 2016
(Millions of yen)
Nine months ended
31 May 2015
Profit for the period
Other comprehensive income
Other comprehensive income that will not bereclassified to profit or loss
Other comprehensive income to be reclassified to
profit or loss in subsequent periods
Net (loss) on revaluation of available-for-saleinvestments
Exchange differences on translation offoreign operations

Nine months ended
31 May 2016

140,00976,694

—

—

(517)

33

26,00277,820(22,170)(98,322)

Other comprehensive income/(loss), net of taxes

103,306(120,459)

Total comprehensive income/(loss) for the period

243,316(43,765)

Non-controlling interests

233,428
9,888(46,897)
3,131

Total comprehensive income/(loss) for the period

243,316(43,765)

Cash flow hedges

Attributable to:
Owners of the parent— 15 —

Three months ended 31 May 2016
(Millions of yen)Three months ended
31 May 2015
Profit for the period
Other comprehensive income
Other comprehensive income that will not bereclassified to profit or loss
Other comprehensive income to be reclassified to
profit or loss in subsequent periods
Net gain/(loss) on revaluation of available-for-saleinvestments
Exchange differences on translation offoreign operations

Three months ended
31 May 2016

29,03825,259

—

—

171

72

8,714
21,758(3,828)(18,018)

Other comprehensive income/(loss), net of taxes

30,644(21,774)

Total comprehensive income/(loss) for the period

59,682

3,484

Non-controlling interests

57,336
2,346

1,873
1,611

Total comprehensive income/(loss) for the period

59,682

3,484

Cash flow hedges

Attributable to:
Owners of the parent— 16 —

(3)Interim Condensed Consolidated Statement of Changes in Equity
For nine months ended 31 May 2015
(Millions of yen)
Other components of equity

Note
As at 1 September 2014
Net changes during
the period
Comprehensive income
Profit for the period
Other comprehensive
incomeTotal comprehensive
incomeTransactions withthe owners
Acquisition oftreasury stock
Disposal oftreasury stock
Dividends
Share-based payments
OthersTotal transactions withthe owners
Total net changes
during the period
As at 31 May 2015

8

Treasury Availablestock,for-saleat costreserve(15,790)798

Foreigncurrencytranslation
reserve
23,035Cash-flow
hedge
reserve
64,536Equityattributableto owners
Nonof the controlling
Totalparentinterests
88,371
618,381
17,660Capitalstock
10,273

Capitalsurplus9,803

Retainedearnings
525,722——

132,364

—

—

—

—

—

132,3647,645

140,009

—

—

—

—

(517)

23,93577,645101,063

101,063

2,242

103,306——

132,364—(517)

23,93577,645101,063

233,428

9,888

243,316

—

—

—

(5)

—

—

—

—

(5)

—

(5)

—
—
—
—

557
—
1,098
—

—
(33,126)
—
—

80
—
—
—

—
—
—
—

—
—
—
—

—
—
—
—

—
—
—
—

638
(33,126)
1,098——(1,226)—180

638(34,352)
1,098
180

—

1,655

(33,126)

75

—

—

—

—

(31,394)(1,046)(32,441)—
10,273

1,655
11,45999,238624,960

75(15,714)

(517)
281

23,935
46,971

77,645
142,181

101,063
189,434

202,033
820,414

8,841
26,502

210,874
846,916— 17 —

Total
equity636,041

For nine months ended 31 May 2016
(Millions of yen)
Other components of equity

Note
As at 1 September 2015
Net changes during
the period
Comprehensive income
Profit for the period
Other comprehensive
incomeTotal comprehensive
incomeTransactions withthe owners
Acquisition oftreasury stock
Disposal oftreasury stock
Dividends
Share-based payments
OthersTotal transactions withthe owners
Total net changes
during the period
As at 31 May 2016

8

Treasury Availablestock,for-saleat costreserve(15,699)
143

Foreigncurrencytranslation
reserve
37,851

Cash-flow
hedge
reserve
104,219

Equityattributableto owners
Nonof the controlling
Totalparentinterests
142,214750,937
23,867

Capitalstock
10,273

Capitalsurplus11,524Retainedearnings
602,623——

71,010

—

—

—

—

—

71,0105,684

76,694

—

—

—

—

33

(20,000)(97,939)(117,907)(117,907)(2,552)(120,459)——

71,010—33(20,000)(97,939)(117,907)(46,897)3,131(43,765)

—

—

—

(4)

—

—

—

—

(4)

—

(4)

—
—
—
—

442
—
963
53

—
(36,702)
—
—

57
—
—
—

—
—
—
—

—
—
—
—

—
—
—
—

—
—
—
—

500
(36,702)963
53—(2,857)—587

500(39,560)
963
641

—

1,460

(36,702)

52

—

—

—

—

(35,189)(2,269)(37,459)—
10,273

1,460
12,98434,307
636,93152(15,646)

33
176(20,000)
17,850(97,939)
6,279(117,907)
24,306(82,086)
668,850862
24,729(81,224)
693,580— 18 —

Total
equity774,804

(4)Interim Condensed Consolidated Statement of Cash Flows(Millions of yen)
Nine months ended
31 May 2015

Profit before income taxes
Depreciation and amortization
Increase/(decrease) in allowance for doubtful accounts
Increase/(decrease) in other provisions
Interest and dividend income
Interest expenses
Foreign exchange losses/(gains)
Losses on retirement of property, plant and equipment
Decrease/(increase) in trade and other receivables
Decrease/(increase) in inventories
Increase/(decrease) in trade and other payables
Decrease/(increase) in other assets
Increase/(decrease) in other liabilities

Nine months ended
31 May 2016

210,282
27,549(3)(4,915)(1,013)829(20,035)
2,085(28,197)
36,524(6,335)(4,189)21,181(277)

122,095
27,78029(8,656)(1,389)1,677
23,446783(31,474)
30,782
12,096(2,899)10,274(2,008)

Income taxes refund

233,484
1,013(751)(66,522)
13,881

182,537
1,389(1,134)(68,292)
17,963

Net cash from operating activities

181,105

132,463

Others, net(17,394)(32,469)
230(5,710)(7,927)
3,442(1,937)
1,352
(385)

(182,374)(26,982)
1,003(6,818)(6,716)
3,718(1,186)
1,467(1,089)Net cash used in investing activities(60,800)(218,979)

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

Decrease/(increase) in bank deposits
with maturity over 3 months
Purchases of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchases of intangible assets
Payments for lease and guarantee deposits
Proceeds from collection of lease and guarantee deposits
Increase in construction assistance fund receivables
Decrease in construction assistance fund receivables— 19 —

Note
Net increase/(decrease) in short-termloans payable
Repayment of long-term loans payable
Proceeds from issuance of bonds
Cash dividends paid
Cash dividends paid to non-controlling interests
Repayments of lease obligations

Nine months ended
31 May 2015

Nine months ended
31 May 2016

Others, net(878)(2,977)―(33,105)(1,226)(3,355)425(1,287)(2,940)249,369(36,673)(2,857)(3,482)
1,128

Net cash from/(used in) financing activities(41,118)

203,256

30,845(18,025)

Cash and cash equivalents at beginning of period

110,032
314,049

98,715355,212

CASH AND CASH EQUIVALENTS AT END OF PERIOD

424,081453,9278

Effect of exchange rate changes on cash andcash equivalents
Net increase/(decrease) in cash andcash equivalents— 20 —

Notes to the Interim Condensed Consolidated Financial Statements
1. Reporting Entity
FAST RETAILING CO., LTD. (the “Company”) is a company incorporated in Japan. The locations of the registeredheadquarters and principal offices of the Company are disclosed on the Group’s website (http://www.fastretailing.com/eng/).
The principal activities of the Company and its consolidated subsidiaries (the “Group”) are the UNIQLO business (casual
wear retail business operating under the “UNIQLO” brand in Japan and overseas) and GU business, Theory business (appareldesigning and retail business in Japan and overseas), etc.
2. Basis of Preparation
The interim condensed consolidated financial statements of the Group have been prepared in compliance with
International Accounting Standard 34 “Interim Financial Reporting” (“IAS 34”). The Group adopted Article 93 of Consolidated
Quarterly Financial Statements Rules, because the Group meets the criteria of a “specified company” defined under Article
1-2 of the said rules. Since the interim condensed consolidated financial statements do not include all the information anddisclosures required for consolidated financial statements, they should be read in conjunction with the Group’s annual
consolidated financial statements for the year ended 31 August 2015.
The interim condensed consolidated financial statements were approved on 15 July 2016 by Tadashi Yanai, Chairman,
President and CEO, and Takeshi Okazaki, Group Executive Vice President and CFO.
3. Significant Accounting Policies
The accounting policies presented in the consolidated financial statements for the year ended 31 August 2015 are appliedconsistently in the preparation of these interim condensed consolidated financial statements.
4. Use of Estimates and Judgments
The preparation of the interim condensed consolidated financial statements in accordance with IAS 34 requires
management to make judgments, estimates and assumptions that affect the application of accounting policies and thereported amounts of assets and liabilities, income and expenses. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. The effects of the review of accounting
estimates are recognized in the accounting period in which the estimates were reviewed and in future accounting periods.
In principle, important estimates and judgments that have significant effects on the amounts recognized in the interim
condensed consolidated financial statements are the same as the preceding consolidated fiscal year.

— 21 —

5. Segment information(i) Description of reportable segments
The Group’s reportable segments are components for which discrete financial information is available and is reviewed
regularly by the Board to make decisions about the allocation of resources and to assess performance.
The Group’s main retail clothing business is divided into three reportable operating segments: UNIQLO Japan, UNIQLOInternational and Global Brands, each of which is used to frame and form the Group’s strategy.
The main businesses covered by each reportable segment are as follows:
UNIQLO Japan: UNIQLO clothing business within Japan
UNIQLO International: UNIQLO clothing business outside of Japan
Global Brands: GU, Theory, COMPTOIR DES COTONNIERS, PRINCESSE TAM.TAM and J Brand clothing operations(ii) Method of calculating segment revenue and results
The methods of accounting for the reportable segments are the same as those stated in the “Significant Accounting
Policies” of the Group’s annual consolidated financial statements for the year ended 31 August 2015.
The Group does not allocate assets and liabilities to individual reportable segments.
(iii) Segment information
For the nine months ended 31 May 2015
(Millions of yen)
Reportable segments
UNIQLOJapan

UNIQLOInternational

GlobalBrands

Total

Others(Note 1)

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

Revenue

638,104

481,876

225,970

1,345,951

2,162

—

1,348,114

Operating profit

113,773

51,95919,787

185,51945

3,709

189,274

Segment income(profit before
income taxes)

116,964

51,977

19,762

188,70445

21,532

210,282(Note1) “Others” include real estate leasing business, etc.
(Note2) “Adjustments” mainly include revenue and corporate expenses which are not allocated to individual reportablesegments.
For the nine months ended 31 May 2016
(Millions of yen)
Reportable segments
UNIQLOJapan

UNIQLOInternational

GlobalBrands

Total

Others(Note 1)

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

Revenue

645,432

532,813254,350

1,432,595

2,020

—

1,434,616

Operating profit

93,21642,23523,056

158,50951(12,731)

145,829

Segment income(profit before

92,65142,07322,905

157,63051(35,586)

122,095

income taxes)(Note1) “Others” include real estate leasing business, etc.
(Note2) “Adjustments” mainly include revenue and corporate expenses which are not allocated to individual reportablesegments.

— 22 —

For the three months ended 31 May 2015
(Millions of yen)
Reportable segments
UNIQLOUNIQLOInternational

Japan

GlobalBrandsTotal

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

Others(Note 1)

Revenue

183,602136,372

77,716397,690739—

398,429

Operating profit

24,310

9,097

8,046

41,45530(2,288)39,197

Segment income(profit before
income taxes)

26,144

9,982

8,046

44,17330

2,412

46,615(Note1) “Others” include real estate leasing business, etc.
(Note2) “Adjustments” mainly include revenue and corporate expenses which are not allocated to individual reportablesegments.
For the three months ended 31 May 2016
(Millions of yen)
Reportable segments
UNIQLOUNIQLO

GlobalJapan

International

BrandsTotal

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

Others(Note 1)

Revenue

191,738

143,557

87,033422,330

632—

422,962

Operating profit

29,103

12,832

8,746

50,68343(4,238)46,488Segment income(profit before
income taxes)

28,856

13,406

9,254

51,517

43(11,506)

40,054(Note1) “Others” include real estate leasing business, etc.
(Note2) “Adjustments” mainly include revenue and corporate expenses which are not allocated to individual reportablesegments.
6. Inventories
Write-down of inventories to net realizable value and recognized as expenses is as follows:(Millions of yen)
Nine months ended
31 May 2015

Nine months ended
31 May 2016

2,377

3,430

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 2015
Buildings and structures
Furniture, equipment and vehicles
Land
Construction in progress
Lease assets
Total— 23 —As at
31 May 2016

91,635
16,825
2,643
7,284
10,95290,494
16,2691,962
7,053
12,249129,340

128,030

8. Dividends
The total amount of dividends paid was as follows:
Dividends paid during the nine months ended 31 May 2015
Total dividends(Millions of yen)

Resolution

Dividends per share(Yen)

Meeting of the Board of Directors on 3 November 201415,287150

Meeting of the Board of Directors on 9 April 2015

17,838175

Dividends for which the declared date is 31 August 2014 are paid on or after 21 November 2014 as the effective date.
Dividends for which the declared date is 28 February 2015 are paid on or after 11 May 2015 as the effective date.
Dividends paid during the nine months ended 31 May 2016
Total dividends(Millions of yen)

Resolution

Dividends per share(Yen)

Meeting of the Board of Directors on 4 November 2015

17,840175

Meeting of the Board of Directors on 7 April 2016

18,861

185

Dividends for which the declared date is 31 August 2015 are paid on or after 11 November 2015 as the effective date.
Dividends for which the declared date is 29 February 2016 are paid on or after 11 May 2016 as the effective date.
9. Selling, general and administrative expenses
The breakdown of selling, general and administrative expenses for each reporting period is as follows:(Millions of yen)
Nine months ended
31 May 2015

Nine months ended
31 May 2016

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

53,713
127,674
27,54921,367
167,683
104,816

58,513
132,673
27,78024,961
181,018
115,531

Total

502,805

540,479— 24 —

10. 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 2015

Nine months ended
31 May 2016

8,118
38
1,485

—
34
1,842

9,641

1,877

Nine months ended
31 May 2015

Nine months ended
31 May 2016

—
2,085
1,934

6,776
783
2,384

4,020

9,943

Other income
Foreign exchange gains*
Gains on sales of property, plant and equipment
Others
Total(Millions of yen)

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

Finance income
Foreign exchange gains*
Interest income
Dividend income
Others
Total

Nine months ended
31 May 2015

Nine months ended
31 May 2016

20,035
978
34
792

—
1,384
5
—

21,840

1,389(Millions of yen)

Finance costs
Foreign exchange losses*
Interest expenses
Others
Total

Nine months ended
31 May 2015

Nine months ended
31 May 2016

—
829
3

23,446
1,677
—

833

25,124* Currency adjustments incurred in the course of non-operating transactions are included in “finance income and financecosts”.

— 25 —

12. Earnings per share
Nine months ended 31 May 2015
Equity per share attributable to ownersof the parent (Yen)
Basic earnings per share for the period (Yen)
Diluted earnings per share for the period (Yen)

Nine months ended 31 May 2016
8,048.03
1,298.60
1,296.99

Equity per share attributable to ownersof the parent (Yen)
Basic earnings per share for the period (Yen)
Diluted earnings per share for the period (Yen)

6,559.91
696.50696.54(Note) The basis for calculation of basic earnings per share and diluted earnings per share for the period is as follows:

Basic earnings per share for the period
Profit for the period attributable to owners of the parent (Millions of yen)
Profit not attributable to common shareholders (Millions of yen)
Profit attributable to common shareholders (Millions of yen)
Average number of common stock during the period (Shares)
Diluted earnings per share for the period
Adjustment to profit (Millions of yen)
Increase in number of common stock (Shares)(share subscription rights)

Three months ended 31 May 2015
Basic earnings per share for the period (Yen)
Diluted earnings per share for the period (Yen)

Nine months ended
31 May 2015

Nine months ended
31 May 2016

132,364—
132,364
101,928,795

71,010—71,010101,952,746—
126,620(126,620)—
140,984(140,984)

Three months ended 31 May 2016
270.86270.51

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

235.07234.74(Note) The basis for calculation of basic earnings per share and diluted earnings per share for the period is as follows:
Three months ended Three months ended
31 May 2015
31 May 2016
Basic earnings per share for the period
Profit for the period attributable to owners of the parent (Millions of yen)
Profit not attributable to common shareholders (Millions of yen)
Profit attributable to common shareholders (Millions of yen)
Average number of common stock during the period (Shares)
Diluted earnings per share for the period
Adjustment to profit (Millions of yen)
Increase in number of common stock (Shares)(share subscription rights)— 26 —

27,611—
27,611
101,937,554

23,967—23,967
101,958,301—
132,190(132,190)—
144,318(144,318)13. Fair value of financial instruments
The information about carrying amount and fair value of financial instruments is as follows:(Millions of yen)
As at 31 August 2015
Carrying amounts
Short-term borrowings
Long-term borrowings (Note1)
Corporate bonds (Note2)
Lease obligations (Note1)
Total

As at 31 May 2016

Fair value

Carrying amounts

Fair value

4,652
21,121—
12,262

4,652
21,270—12,1973,020
17,133
249,462
12,9883,020
17,375
254,450
12,85438,035

38,120282,605

287,701(Note1) The above includes the outstanding balance of borrowings due within 1 year.
(Note2) Corporate bonds issued during the nine-month ended 31 May, 2016 are as follows.
(Millions of yen)Company nameName of bonds

Date of issuance

FAST RETAILING
CO., LTD.

1st non-collateralized
corporate bonds

18 December 2015

FAST RETAILING
CO., LTD.

2nd non-collateralized
corporate bonds

FAST RETAILING
CO., LTD.
FAST RETAILING
CO., LTD.

Amountto be issued

Interest Rate (%)

Date of maturity

30,0000.110

18 December 201818 December 2015

100,000

0.291

18 December 2020

3rd non-collateralized
corporate bonds

18 December 2015

50,0000.491

16 December 2022

4th non-collateralized
corporate bonds

18 December 2015

70,0000.749

18 December 2025

The fair value of short-term financial assets, short-term financial liabilities, long-term financial assets and long-term
financial liabilities are measured by amortized cost and approximate their carrying amounts.
The fair value of corporate bonds is measured by the 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 time remaining to maturity and credit risk.
The following tables illustrate the fair value measurement hierarchy of the Group’s financial instruments. All assets
and liabilities for which fair value is measured or disclosed in the financial statements are categorized within the fair value
hierarchy described as follows:
Level 1 — based on quoted prices (unadjusted) in active markets for identical assets or liabilities
Level 2 — based on valuation techniques for which the lowest level input that is significant to the fair value measurement
is observable, either directly or indirectly
Level 3 — based on valuation techniques for which the lowest level input that is significant to the fair value measurement
is unobservable— 27 —

(Millions of yen)
As at 31 August 2015

Level 1

Level 2

Level 3

Total

Available-for-sale financial assets
Financial instruments at fair value throughprofit or loss (“FVTPL”)
Foreign currency forward contracts designatedas hedging instruments

363

—

210

574

—

556

—

556

—

156,834—

156,834

Total

363

157,390210

157,964(Millions of yen)

As at 31 May 2016

Level 1

Level 2

Level 3

Total

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

1,339
—

—
30

208
—

1,547
30

—

7,611

—

7,611

Total

1,339

7,641

208

9,188

For the valuation of level 2 derivative financial instruments for which a market value is available, we use a valuation
model that uses observable data on the measurement date as indicators such as interest rates, yield curves, currency rates
and volatility in comparable instruments.
Unlisted securities are included in level 3. There is no significant increase or decrease in level 3 items through purchase,
disposal or settlement. Also, there is no transfer from level 3 to level 2.
14. Commitments
The Group had the following commitments at each reporting dates:(Millions of yen)
As at
31 August 2015
Commitment for acquisition of property, plant and equipment
Commitment for acquisition of intangible assets
Total
15. Subsequent Events
Not applicable.

— 28 —As at
31 May 2016

8,825
85

11,415—

8,910

11,415

2. Others
Dividends
The Company resolved to pay a dividend from retained earnings at the meeting of the Board of Directors convened on 7
April 2016.
The total amount of dividend and amount per share are stated under “Financial section 1. Interim Condensed
Consolidated Financial Statements, Notes to the Interim Condensed Consolidated Financial Statements 8. Dividends”.

— 29 —

Report on review of interim condensed consolidated financial statements
Board of Directors
FAST RETAILING CO., LTD.
Ernst & Young ShinNihon LLC
Shigeyuki Amimoto
Certified Public Accountant
Designated and Engagement Partner
Shuji Kaneko
Certified Public Accountant
Designated and Engagement Partner
Tomo Ito
Certified Public Accountant
Designated and Engagement Partner
Pursuant to first clause of Article 193-2 of the Financial Instruments and Exchange Act, we have reviewed the interim condensed
consolidated financial information included in the financial section, which comprises the interim condensed consolidated
statement of financial position of FAST RETAILING CO., LTD. (the “Company”) and its subsidiaries (collectively, the “Group”) as at
31 May 2016, and the related interim condensed consolidated statement of profit or loss and interim condensed consolidated
statement of comprehensive income for the three-month and the nine-month period then ended, interim condensed
consolidated statement of changes in equity and interim condensed consolidated statement of cash flows for the nine-month
period then ended, and other explanatory notes (the “Interim Financial Information”).
Management’s responsibility for the interim condensed consolidated financial statements
Management is responsible for the preparation and fair presentation of the Interim Financial Information in accordance with
International Accounting Standard 34 “Interim Financial Reporting” (“IAS 34”), pursuant to Article 93 of the “Rules GoverningTerm, Form and Preparation of Consolidated Quarterly Financial Statements”, and for such internal control as management
determines is necessary to enable the preparation of interim condensed consolidated financial statements that are free frommaterial misstatement, whether due to fraud or error.
Auditors’ responsibility
Our responsibility is to express a conclusion on the Interim Financial Information based on our review. Our report is made solely
to you, as a body, and for no other purpose. We do not assume responsibility towards or accept liability to any other person forthe contents of this report.
We conducted our review in accordance with quarterly review standards generally accepted in Japan. A review of Interim
Financial Information consists of making inquiries, primarily of persons responsible for financial and accounting matters, andapplying analytical and other quarterly review procedures. A review is substantially less in scope than an audit conducted inaccordance with auditing standards generally accepted in Japan and consequently does not enable us to obtain assurance that
we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit
opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe that the accompanying interim condensed
consolidated financial statements are not prepared, in all material respects, in accordance with IAS 34.
Conflicts of Interest
We have no interest in the Company which should be disclosed in compliance with the Certified Public Accountants Act.

Ernst & Young ShinNihon LLC
Tokyo, Japan
15 July 2016
(Note)
This is an English translation of the Japanese language Independent Auditors’ Report issued by Ernst & Young ShinNihon LLC
in connection with the review of the interim condensed consolidated financial statements of the Group prepared in Japanese
for the period ended 31 May 2016. Ernst & Young ShinNihon LLC has not reviewed the English language version of the interim
condensed consolidated financial statements for the above mentioned period.

— 30 —