FAST RETAILING CO., LTD.
迅銷有限公司Interim Report 2017/18
2017.9.1–2018.2.28
Stock Code: 6288

Contents
Corporate Profile

2

Financial Highlights

3Management Discussion and Analysis

5

Information about the Reporting Entity

9

Financial Section

12

Interim Condensed Consolidated Statement of
Financial Position

13

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

14Interim Condensed Consolidated Statement of
Changes in Equity

18

Interim Condensed Consolidated Statement of Cash Flows20

Notes to the Interim Condensed Consolidated
Financial Statements

22

Others32

Independent Accountant’s Review Report

33Corporate Profile
Board of Directors
Executive Director
Mr. Tadashi Yanai (Chairman of the Board of Directors,
President and Chief Executive Officer)

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

Non-Executive Director
Mr. Toru Murayama (External)

Principal Place of Business in Hong Kong702-706, 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—

Financial Highlights
Financial Summary

Term

Second Quarterof
56th Year

Second Quarterof
57th Year

56th Year

Accounting period

Six months
ended
28 February
2017

Six months
ended
28 February
2018Year ended
31 August
2017

Revenue (Millions of yen)

1,017,508

1,186,765

1,861,917

Operating profit (Millions of yen)

130,657

170,492

176,414

Profit before income taxes (Millions of yen)

147,610

165,196

193,398

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

97,233

104,150

119,280

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

177,80278,846

190,566

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

736,750

796,650

731,770

1,388,138

1,621,507

1,388,486

Basic earnings per share for the period (Yen)953.55

1,021.16

1,169.70

Diluted earnings per share for the period (Yen)952.17

1,019.36

1,168.00

53.1

49.1

52.7

Total assets (Millions of yen)

Ratio of equity attributable to owners of
the Parent to total assets (%)
Net cash generated by operating activities (Millions of yen)

211,222220,245

212,168

Net cash used in investing activities (Millions of yen)

(16,586)(25,196)

122,790

Net cash used in financing activities (Millions of yen)

(25,234)(21,998)(50,836)

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

569,861

848,658

683,802

Three months
ended
28 February
2017

Three months
ended
28 February
2018

488,660

569,738

Accounting period

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

27,53825,610

Basic earnings per share for the period (Yen)

270.05251.09(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 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 the business engaged in by the Company and its subsidiaries (collectively, the“Group”) during the six months ended 28 February 2018.
In addition, there was no significant changes in the organizational structure including the major subsidiaries during thesix months ended 28 February 2018.

—4—

Management Discussion and Analysis
Business Review
1. Business and Operational Risks

No new business-related risks have arisen during the six months ended 28 February 2018.
There have been no important changes concerning business-related risks as stated in the annual report for the preceding
consolidated fiscal year.

2.
3.

(1)

Significant Contract in Business Operation

None.

Financial Analysis

Results of Operations
The Fast Retailing Group generated rises in both revenue and profit in the first half of fiscal 2018, or the six months from 1
September 2017 to 28 February 2018. Consolidated revenue totaled ¥1.1867 trillion (+16.6% year-on-year) and operating
profit reached ¥170.4 billion (+30.5% year-on-year). The consolidated gross profit margin improved by 0.7 point year-onyear and the selling, general and administrative expense ratio improved by 1.9 points. As a result, the operating profit
margin improved 1.6 points to 14.4%. The Group recorded a foreign exchange loss of ¥1.7 billion and impairment losses of¥9.9 billion under other income and expenses. A net loss of ¥5.2 billion was recorded under finance income, after the spot
foreign exchange rate at the end of February closed higher than the spot rate at the start of the business term. As a result,first-half profit before income taxes expanded to ¥165.1 billion (+11.9% year-on-year) and profit attributable to owners of
the parent increased to ¥104.1 billion (+7.1% year-on-year). Breaking the consolidated performance down into individual
business segments, UNIQLO International reported significant rises in revenue and profit in the first half of fiscal 2018,
and UNIQLO Japan and GU also reported revenue and profit rises. Meanwhile the Global Brands segment reported a risein revenue but a fall in profit over the six-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. We continue to increase UNIQLO store numbers ineach country where we operate, and open global flagship stores and large-format stores in major cities around the world
to help consolidate UNIQLO’s position as a key global brand. Within the UNIQLO International segment, Greater China(Mainland China, Hong Kong and Taiwan), Southeast Asia and South Korea are entering a new stage of growth as the
key drivers of operational growth for the Fast Retailing Group. Operating losses at UNIQLO USA contracted considerably,
putting that operation on track to turn a profit going forward. In terms of 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, formerly a part of the Global Brands businesssegment, has been separated into an independent business segment from the 2018 reporting period. The previous
reporting period’s data have been adjusted to suit the new reporting segment structure and facilitate accurate year-onyear comparisons.
UNIQLO Japan
UNIQLO Japan reported a rise in revenue and profit in the first half of fiscal 2018, with revenue totaling ¥493.6 billion(+8.5% year-on-year) and operating profit totaling ¥88.7 billion (+29.0% year-on-year). In the six months to 28 February
2018, same-store sales, including online sales, expanded by 8.4% year-on-year. Online sales increased 31.6% to constitute
7.5% of total revenue.
The Fall Winter season displayed a consistently strong sales trend as the unusually cold weather supported strong salesof warm clothing such as HEATTECH, down, fleece, sweat pants and shirts, and danpan warm pants. In addition, we
carved sophisticated sales plans that closely correlated production, distribution and retail, and successfully monitoring
immediate conditions to ensure ample inventory of strong-selling items and facilitate timely revisions such as prompt
price cutting on poor-selling items. The cost of sales continued to rise in the first half of fiscal 2018 on persistent
weakening in internal yen exchange rates. However, the first-half gross profit margin improved significantly as strong
sales of winter clothing ranges reduced discounting losses on inventory rundowns. The first-half gross profit margin
improved 0.8 point year on year, and the selling, general and administrative expense ratio improved 1.9 points year-onyear on the back of significant reductions in distribution costs, and advertising and promotion expenses.

—5—

UNIQLO International
UNIQLO International revenue and profit rose significantly in the first half of fiscal 2018, with revenue totaling ¥507.4
billion (+29.2% year-on-year) and operating profit increasing to ¥80.7 billion (+65.6% year-on-year). The operating profit
margin improved by 3.5 points year-on-year to 15.9% on the back of progressive management reforms across global
operations that included a review of product mixes, the establishment of more accurate numerical planning, and a shift toa business format that relies less heavily on discounting. Looking more closely at individual regional operations, all areasachieved higher-than-expected first-half results, with profitability improving at UNIQLO North America, Greater China
and South Korea. Greater China and South Korea achieved higher revenue and profit on strong sales of Winter ranges
such as HEATTECH and down. UNIQLO Southeast Asia & Oceania continued to generate a strong performance, with solid
demand for summer clothing and firm demand from travelers for winter clothing resulting in significantly higher first-halfrevenue and profit. In addition, we were able to significantly reduce operating losses at UNIQLO USA, expanding sales ofcore ranges by reviewing product mixes in each area of the United States and creating more accurate sales plans. UNIQLO
Europe also reported a considerable increase in first-half profit, with strong sales in core markets such as Russia, France
and the United Kingdom helping increase same-store sales for the European region overall. The UNIQLO operation in
Spain got off to a strong start, as we consolidated the brand’s September 2017 entry into that market with the opening ofa second store in November.
GU
The GU business segment reported increases in both revenue and profit in the first half of fiscal 2018, with revenue
totaling ¥105.8 billion (+8.3% year-on-year) and operating profit reaching ¥9.1 billion (+23.3% year-on-year). Samestore sales declined slightly year-on-year in the first half due to a lack of sought-after thermal items. However, first-halfrevenue increased 8.3% year-on-year after new store openings expanded the total GU network by 26 stores. On the profit
front, GU operating profit increased on a higher gross profit margin.
Global Brands
The Global Brands segment reported a rise in revenue but a fall in profit in the first half of fiscal 2018. The segment
reported a rise in revenue to ¥78.4 billion (+11.4% year-on-year) and an operating loss of ¥5.6 billion, following therecording of impairments losses of ¥7.7 billion for the Comptoir des Cotonniers label, and ¥1.0 billion for Helmut Lang,a Theory operation brand. Theory operating profit, excluding the Helmut Lang impairment loss, rose on the back ofcontinued strong sales at the operation’s Theory and PLST brands. While the France-based Princesse tam.tam brandcontinued to report a steady year-on-year loss, the US-based J Brand denim label reported reduced losses in the sixmonth period to 28 February 2018.
Sustainability
As the Fast Retailing Group expands its business globally, we remain committed to integrating environmental and social
sustainability into our operations from a long-term perspective. Our sustainability initiatives are conducted across fourpriority areas: supply chain, products, stores and communities, and employees.
Going beyond the disclosure of our core partner factory list for UNIQLO, we disclosed our core partner factory list for GU
in December 2017 to enhance supply chain transparency and ensure better work environments and accountability in thearea of human rights.
In January 2018, we published our latest Sustainability Report, which features key activities for the fiscal year to August
2017 across the four priority areas above as well as our initiatives for improvement.
We are also making various efforts to reduce our environmental impact due to the use of water resources and the use ofchemical substances such as fertilizers required for the cultivation of cotton — a key material in our products. We also
prohibit the use of cotton produced by child labor or forced labor. As part of these efforts, we joined the Better Cotton
Initiative (BCI), an international NGO whose aim is to produce sustainable cotton. Founded in cooperation with various
NGOs such as the Worldwide Fund for Nature (WWF) and other companies, BCI provides support to 1.6 million cotton
farmers in 23 countries. While fulfilling our responsibilities and obligations as a global corporation, the Fast RetailingGroup remains committed to creating high-quality products that will reduce environmental impact.

—6—

(2)

Financial Positions
Total assets as at 28 February 2018 were ¥1.6215 trillion, which was an increase of ¥233.0 billion relative to the endof the preceding consolidated fiscal year. The principal factors were an increase of ¥164.8 billion in cash and cash
equivalents, an increase of ¥59.4 billion in other current assets, an increase of ¥15.3 billion in deferred tax assets and adecrease of ¥20.1 billion in inventories.
Total liabilities as at 28 February 2018 were ¥786.7 billion, which was an increase of ¥160.2 billion relative to the end of
the preceding consolidated fiscal year. The principal factors were an increase of ¥29.1 billion in other current financial
liabilities, an increase of ¥38.7 billion in derivative financial liabilities, an increase of ¥171.6 billion in other current
liabilities, a decrease of ¥68.8 billion in trade and other payables and a decrease of ¥30.7 billion in non-current financial
liabilities.
Total net assets as at 28 February 2018 were ¥834.7 billion, which was an increase of ¥72.7 billion relative to the end of
the preceding consolidated fiscal year. The principal factors were an increase of ¥86.3 billion in retained earnings.

(3)

Cash Flows Information
Cash and cash equivalents as at 28 February 2018 had increased by ¥278.7 billion from the period-end as at 28 February
2017, to ¥848.6 billion.
Net cash generated by operating activities for the six months ended 28 February 2018 was ¥220.2 billion, which was anincrease of ¥9.0 billion (+4.3 % year-on-year) from the six months ended 28 February 2017.
The principal factors were ¥165.1 billion in profit before income taxes (an increase of ¥17.5 billion from the six months
ended 28 February 2017) and an increase of ¥176.1 billion in other liabilities (an increase of ¥164.7 billion from the six
months ended 28 February 2017), a decrease of ¥20.5 billion in inventories (an decrease of ¥24.0 billion from the six
months ended 28 February 2017), an increase of ¥65.8 billion in other assets (an increase of ¥63.8 billion from the six
months ended 28 February 2017) and a decrease of ¥70.4 billion in trade and other payables (an decrease of ¥83.0 billion
from the six months ended 28 February 2017),.
Net cash used in investing activities for the six months ended 28 February 2018 was ¥25.1 billion, which was an increaseof ¥8.6 billion (+51.9 % year-on-year) from the six months ended 28 February 2017. The principal factors were an increaseof ¥1.5 billion in bank deposits with original maturity over three months (an increase of ¥6.9 billion from the six months
ended 28 February 2017), ¥13.9 billion payments for tangible assets (a decrease of ¥3.4 billion from the six months ended
28 February 2017) and ¥6.2 billion payments for intangible assets (an increase of ¥1.3 billion from the six months ended
28 February 2017).
Net cash used in financing activities for the six months ended 28 February 2018 was ¥21.9 billion, which was a decreaseof ¥3.2 billion (-12.8 % year-on-year) from the six months ended 28 February 2017. The principal factor was an increase of¥0.5 billion in short-term loans payable (a decrease of ¥3.4 billion from the six months ended 28 February 2017).

—7—

(4)

Operational and Financial Assignment
There have been no important changes during the six months ended 28 February 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 six months ended 28 February 2018.

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

Type of facility

Name of business

UNIQLO EUROPE LIMITEDUNIQLOInternational Stores

Paseo de Gracia 18

Barcelona
Spain

September 2017

UNIQLO CANADA INC.

UNIQLOInternational Stores

UNIQLO Metrotown

Vancouver
CanadaOctober 2017—8—

Location

Completion date

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

Total number of shares
Type

Total number of authorized shares (shares)

Common stock

300,000,000

Total

300,000,000(Note) 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 28 February 2018

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

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

Details

First section of the Tokyo
Stock Exchange andthe Main board of
the Stock Exchange ofHong Kong Limited (Note)

100 sharesas one unit

Common stock

106,073,656

106,073,656

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

1 December 2017 to
28 February 2018

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)——

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 thethree months ended 28 February 2018.

—9—

(6)

Principal Shareholders
As at 28 February 2018
Name or trade nameLocation

Number ofPercentage ofshares held
total number of(Thousand shares) shares issued (%)

Tadashi Yanai

Shibuya-ku, Tokyo

22,987

21.67

The Master Trust Bank of Japan, Ltd.

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

18,025

16.99

Japan Trustee Services Bank, Ltd.

1-8-11 Harumi, Chuo-ku, Tokyo

11,13910.50

TTY Management B.V.

Hoogoorddreef 15, 1101BA Amsterdam,
The Netherlands

5,310

5.01

Kazumi Yanai

New York, U.S.A.

4,781

4.51

Koji Yanai

Shibuya-ku, Tokyo

4,780

4.51

Fight & Step Co., Ltd.

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

4,750

4.48

MASTERMIND, LLC

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

3,610

3.40

Trust & Custody Services Bank, Ltd.

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

3,449

3.25

Teruyo Yanai

Shibuya-ku, Tokyo

2,327

2.19

81,162

76.51

Total
(Notes)―1. “Number of shares held” is rounded down to the nearest unit of thousand shares.
2. The shares held by The Master Trust Bank of Japan, Ltd., Japan Trustee Services Bank, Ltd., and Trust & Custody
Services Bank, Ltd. are all held in conjunction with the trust business.
3. According to the report of large shareholdings (report of change of composition) submitted on 13 October 2017by Nomura Securities Co., Ltd., Nomura International plc, Nomura Securities International, Inc., and Nomura AssetManagement Co., Ltd., who are all joint holders, each party was holding the number of shares stated below as at 6
October 2017. However, since the Company has not been able to confirm the number of shares actually held as at
28 February 2018, these shareholdings have not been included in the above statement of principal shareholders.

Name or trade nameLocation

Number ofPercentage ofshares held
total number of(Thousand shares) shares issued (%)

Nomura Securities Co., Ltd.

1‐9‐1 Nihonbashi, Chuo‐ku, Tokyo

78

0.07

Nomura international plc

1 Angel Lane, London, U.K.

198

0.19

Nomura Securities International, Inc.

Worldwide Plaza 309 West 49th Street,
New York, New York U.S.A.

154

0.15

Nomura Asset Management Co., Ltd.

1‐12‐1 Nihonbashi, Chuo‐ku, Tokyo

10,432

9.83

4. According to the report of large shareholdings (report of change of composition) submitted on 21 February 2018
by Sumitomo Mitsui Trust Bank, Limited, Sumitomo Mitsui Trust Asset Management Co., Ltd. and Nikko AssetManagement Co., Ltd., who are all joint holders, each party was holding the number of shares stated below as
at 15 February 2018. However, since the Company has not been able to confirm the number of shares actually
held as of the end of the term, these shareholdings have not been included in the above statement of principal
shareholders.

Name or trade nameLocation

Sumitomo Mitsui Trust Bank, Limited

1‐4‐1 Marunouchi, Chiyoda‐ku, Tokyo

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

Number ofPercentage ofshares held
total number of(Thousand shares) shares issued (%)
1,149

1.08

3‐33‐1 Shiba, Minato‐ku, Tokyo

489

0.46

9‐7‐1 Akasaka, Minato‐ku, Tokyo

5,745

5.42

5. In addition to the above, 4,065,733 shares of treasury stock are held by the Company (3.83% of the total numberof authorized shares).

— 10 —

(7)Voting Rights(i)

Shares issued
As at 28 February 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 28 February 2018

Name or trade name ofholderFASTLTD.

RETAILING

CO.,

Total

2.

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 (%)

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 six months ended 28 February 2018.

— 11 —

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 of 28 February 2018 and the related interim condensed consolidated statements of profit
or loss and other comprehensive income for the three-month and six-month periods then ended, and the interim condensed
consolidated statements of changes in equity and cash flows for the six-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 quarterly and interim condensed
consolidated financial statements have been reviewed by Deloitte Touche Tohmatsu LLC.

— 12 —

(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

14
6
14

Other assets
Total current assets
Non-current assets
Property, plant and equipment
Goodwill
Intangible assets
Financial assets
Investments in associates
Deferred tax assets

7,8
8
8
14

Other assets

As at 28 February 2018

683,80248,59830,426289,675
6,269
1,518
17,307

848,658
55,40933,058269,5128,512
3,155
76,805

1,077,598

1,295,112

136,979
15,88536,89577,60813,47325,303
4,742

139,070
8,092
39,15678,652
13,43840,606
7,378

310,888326,395

1,388,486

1,621,507

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

135,191
40,98044,87341,30824,087
207,391

311,421493,832

Other liabilities

273,467
15,40910,00016,144

242,675
17,367
16,587
16,250Total non-current liabilities

315,022292,880

626,443786,712

10,273
14,373
698,584(15,563)
24,102

10,273
18,163784,887(15,472)(1,201)

Non-controlling interests

731,770
30,272796,650
38,144

Total equity

762,043834,794

1,388,486

1,621,507

Total non-current assets
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

Total liabilities and equity— 13 —

(2) Interim Condensed Consolidated Statement of Profit or Loss and Interim Condensed Consolidated Statement of Other
Comprehensive Income
Interim Condensed Consolidated Statement of Profit or Loss
Six months ended 28 February 2018
(Millions of yen)Six months ended
28 February 2017

Notes
RevenueSix months ended
28 February 2018

1,017,508(523,298)

1,186,765(601,126)

10
11
8,11

494,209(365,486)
3,265(1,671)
340

585,638(403,638)
910(12,688)
270

Operating profit
Finance income

12

Finance costs

12

130,657
18,613(1,660)170,492
3,009(8,305)

Income tax expense

147,610(44,196)

165,196(51,549)

Profit for the period

103,414

113,646

97,233
6,180

104,150
9,495

103,414

113,646953.55952.17

1,021.16
1,019.36

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

Profit before income taxes

Profit 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— 14 —

Three months ended 28 February 2018
(Millions of yen)
Notes

Three months ended
28 February 2017

RevenueThree months ended
28 February 2018

488,660(265,137)

569,738(301,165)

223,522(181,292)
687(1,004)
152

268,573(199,412)
645(13,312)97

42,0662,223(883)

56,591
1,267(10,495)

Income tax expense

43,405(13,689)

47,363(18,363)

Profit for the period

29,71629,00027,5382,177

25,6103,389

29,71629,000270.05269.63251.09250.65

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

Profit 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— 15 —

Interim Condensed Consolidated Statement of Other Comprehensive Income
Six months ended 28 February 2018
(Millions of yen)
Notes
Profit for the period
Other comprehensive income, net of income
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

Six months ended
28 February 2017

Six months ended
28 February 2018

103,414

113,646

—

—

(21)

804

24,82158,005(2,140)(24,604)

82,805(25,940)

186,22087,705

Non-controlling interests

177,802
8,418

78,846
8,859

Total comprehensive income/(loss) for the period

186,22087,705

Cash flow hedges
Other comprehensive income/(loss), net of Income tax
Total comprehensive income/(loss) for the period
Attributable to:
Owners of the Parent— 16 —

Three months ended 28 February 2018
(Millions of yen)
Notes
Profit for the period
Other comprehensive income, net of income
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
Cash flow hedges

Three months ended
28 February 2017

Three months ended
28 February 2018

29,71629,000

—

—

(69)

854

3,639
(5,114)(9,284)(28,380)(1,544)(36,809)28,171(7,809)Non-controlling interests

26,2201,950(9,718)
1,909

Total comprehensive income/(loss) for the period

28,171(7,809)Other comprehensive loss, net of taxes
Total comprehensive income/(loss) for the period
Attributable to:
Owners of the parent— 17 —

(3) Interim Condensed Consolidated Statement of Changes in Equity
For the six months ended 28 February 2017
(Millions of yen)
Other components of equity

Notes
As at 1 September 2016
Net changes during
the period
Comprehensive income
Profit for the period
Other comprehensive
incomeTotal comprehensive
incomeTransactions withthe owners of the Parent
Acquisition oftreasury stock
Disposal oftreasury stock
Dividends
Share-based payments
Total transactions withthe owners of the parent
Total net changes during
the period
As at 28 February 2017

9

Treasury Availablestock,for-saleat costreserve(15,633)
248

Foreigncurrency Cash-flowtranslation
hedge
reserve
reserve(2,811)(44,619)

Equityattributableto owners
Nonof the controlling
Total
Parentinterests(47,183)
574,501
23,159

Capitalstock
10,273

Capitalsurplus13,070Retainedearnings
613,974——

97,233

—

—

—

—

—

97,233

6,180

103,414

—

—

—

—

(21)

22,98957,60080,56880,5682,237

82,805——

97,233—(21)

22,98957,60080,568177,8028,418

186,220

—

—

—

(6)

—

—

—

—

(6)

—

(6)

—
—
—

447
—
776

—
(16,824)
—

52
—
—

—
—
—

—
—
—

—
—
—

—
—
—

499
(16,824)776—(1,531)—

499(18,356)
776

—

1,223

(16,824)

46

—

—

—

—

(15,554)(1,531)(17,085)—
10,273

1,223
14,29480,409694,38346(15,586)(21)
226

22,98920,17857,60012,98080,56833,385

162,248736,750

6,886
30,045

169,134
766,795— 18 —

Total
equity597,661For the six months ended 28 February 2018
(Millions of yen)
Other components of equity

Notes
As at 1 September 2017
Net changes during
the period
Comprehensive income
Profit for the period
Other comprehensive
incomeTotal comprehensive
incomeTransactions with theowners of the Parent
Disposal of treasury stock
Dividends
Share-based payments
Increase in equity
due to capitalincrease by
consolidated
subsidiary
Capital contributions
from non-controllinginterests
Total transactions withthe owners of
the Parent
Total net changes during
the period
As at 28 February 2018

9

Treasury Availablestock,for-saleat costreserve(15,563)2

Foreigncurrencytranslation
reserve
21,806

Cash-flow
hedge
reserve
2,293

Equityattributableto owners
Nonof the controlling
Total
Parentinterests
24,102
731,770
30,272

Capitalstock
10,273

Capitalsurplus14,373Retainedearnings
698,584——

104,150

—

—

—

—

—

104,150

9,495

113,646

—

—

—

—

804

(2,502)(23,605)(25,304)(25,304)(636)(25,940)——

104,150—804(2,502)(23,605)(25,304)

78,846

8,859

87,705

—
—
—

782
—
1,132

—
(17,847)
—

91
—
—

—
—
—

—
—
—

—
—
—

—
—
—

874
(17,847)
1,132—(2,916)—874(20,763)
1,132

—

—

—

—

—

—

—

—

—

173

173

—

1,874

—

—

—

—

—

—

1,874

1,754

3,629

—

3,789

(17,847)

91

—

—

—

—

(13,966)(987)(14,954)—
10,273

3,789
18,16386,303784,88791(15,472)804
806(2,502)
19,303(23,605)(21,312)(25,304)(1,201)64,880796,650

7,871
38,14472,751
834,794— 19 —

Total
equity762,043

(4) Interim Condensed Consolidated Statement of Cash Flows(Millions of yen)
Notes
Cash flows from operating activities
Profit 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
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

Six months ended
28 February 2017

Six months ended
28 February 2018

147,610
17,996—(4,858)(2,872)
1,660(15,496)(340)
599(3,186)44,63812,643(2,006)
11,394(2,333)

165,196
21,742
9,940(6,049)(3,009)
1,361
6,943
(270)
289
(6,391)
20,572(70,439)(65,866)
176,135
3,947

Income taxes refund

205,448
3,074(1,683)(16,537)
20,920254,102
3,008(1,354)(35,509)—

Net cash generated by operating activities

211,222220,245(113,288)(29,231)

118,598(17,415)
22(4,944)(1,767)

27,636(13,969)—(6,276)(2,146)

1,130
(196)
(575)
859
990

1,236
—
(759)
1,001
(2,688)(16,586)(25,196)

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
Proceeds from sales of property, plant and equipment
Payments for intangible assets
Payments for lease and guarantee deposits
Proceeds from collection of leaseand guarantee deposits
Investment in associates
Returns of construction assistance fundReceipts of construction assistance fund
Others, net
Net cash used in investing activities— 20 —

(Millions of yen)Six months ended
28 February 2017

Notes
Cash 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

Six months ended
28 February 2018

6,323
(9,183)(1,163)(16,824)

1,361
(774)
(1,675)(17,845)

Others, net—(1,698)(2,504)
(182)

3,803
(3,155)(3,665)(46)

Net cash used in financing activities(25,234)(21,998)

15,027(8,194)

184,429

164,856

385,431

683,802569,861

848,658

9

Effect of exchange rate changes on thebalance of cash held in foreign currencies
Net increase/(decrease) in cash
and cash equivalents
Cash and cash equivalents at the
beginning of period
CASH AND CASH EQUIVALENTS AT THE
END OF PERIOD— 21 —

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 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), etc.
2. Basis of Preparation
The interim condensed consolidated financial statements have been prepared in compliance with IAS 34. The Group
meets all of the criteria of a “specified company” defined under Article 1-2 of the Consolidated Quarterly Financial
Statements Rules, 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 forconsolidated 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 April 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 theinterim condensed consolidated financial statements.
IFRS

Title

Summary of new standards and amendments

IAS 7 (Amendments)

Statement of Cash Flows

Request for disclosure of changes in liabilities related tofinancing activities

IAS12 (Amendments)

Income Taxes

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.

— 22 —

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.

— 23 —

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 apart 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 six months ended 28 February 2017
(Millions of yen)
Reportable segments
Others(Note 1)

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

GlobalBrandsTotal

392,862

97,78370,415

1,016,184

1,324

—

1,017,508

68,78848,773

7,426

2,640

127,629

113

2,914

130,657

71,242

49,223

7,369

2,619

130,454

113

17,042

147,610UNIQLOJapan

UNIQLOInternational

Revenue

455,122

Operating profit
Segment income(profit before
income taxes)(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.
For the six months ended 28 February 2018
(Millions of yen)
Reportable segments
UNIQLOJapan

UNIQLOInternational

GU

GlobalBrands

Total

Others(Note 1)

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

Revenue493,674

507,456

105,860

78,4491,185,441

1,323

—

1,186,765

Operating profit

88,72980,763

9,155(5,653)

172,995

117(2,619)170,492

Segment income(profit before
income taxes)

88,212

79,0409,064(5,719)170,598

117(5,520)165,196

Other disclosure:
Impairment
losses (Note 3)

42

185

19

8,908

9,155

—

785

9,940

(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”.
— 24 —

For the three months ended 28 February 2017
(Millions of yen)
Reportable segments
Others(Note 1)

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

GlobalBrandsTotal

196,307

40,19335,205487,979681—

488,660

23,17418,605589(103)

42,26567(266)

42,06623,091

18,751554(97)42,30067

1,037

43,405UNIQLOJapan

UNIQLOInternational

Revenue

216,272

Operating profit
Segment income(profit before
income taxes)(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.
For the three months ended 28 February 2018
(Millions of yen)
Reportable segments
UNIQLOUNIQLOJapan

International

GlobalGU

Total

BrandsOthers(Note 1)

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

Revenue

236,606

249,173

45,04538,397569,223515—

569,738

Operating profit

34,61634,092

143(8,683)60,16883(3,661)

56,591

Segment income(profit before
income taxes)

34,11332,22368(8,760)57,64484(10,365)

47,363

Other disclosure:
Impairment
losses (Note 3)

42

185

19

8,908

9,155

—

785

9,940

(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”.

— 25 —

6. Inventories
Write-down of inventories to net realizable value and recognized as expenses is as follows:(Millions of yen)Six months ended
28 February 2017

Six months ended
28 February 2018

3,832

3,919

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

As at
28 February 2018

96,77813,757
1,927
6,824
17,69098,374
13,666
1,927
5,413
19,689136,979

139,070

8. Impairment losses
During the six months ended 28 February 2018, the Group recognized impairment losses that amounted to 9,940 million
yen on goodwill owned by the Comptoir des Cotonniers business and a trademark owned by the Helmut Lang brand under
Theory business, because it is not expected to earn profit that was estimated initially. Those impairment losses are included
in “other expenses” on the consolidated statement of profit or loss.
Six months ended 28 February 2017
Not applicable.
Six months ended 28 February 2018(1) Impairment losses related to the Comptoir des Cotonniers businessOf the total impairment losses that amounted to 9,940 million yen, 7,792 million yen represented an impairment
loss for goodwill owned by the Comptoir des Cotonniers business.
(2) Impairment losses related to the Helmut Lang brand under Theory businessOf the total impairment losses amounted to 9,940 million yen, 1,039 million yen represented an impairment loss fora trademark owned by the Helmut Lang brand.

— 26 —

9. Dividends
The total amount of dividends paid was as follows:
Dividends paid during the six months ended 28 February 2017
Total dividends(Millions of yen)

Resolution
Meeting of the Board of Directors on 4 November 2016

16,824

Dividends per share
(Yen)
165

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

Resolution
Meeting of the Board of Directors on 2 November 2017

17,847

Dividends per share
(Yen)
175

Dividends for which the declared date is 31 August 2017 are paid on or after 10 November 2017 as the effective date.
Proposed dividends on common stock are as follows:

Total dividends (Millions of yen)
Dividends per share (yen)Six months ended
28 February 2017

Six months ended
28 February 2018

17,846

20,401

175

200

Regarding the proposed dividends per common stock, the Board has approved the proposal subsequent to the period-end
date, and this sum is not recognized as a liability as at 28 February 2018.

— 27 —

10. Selling, general and administrative expenses
The breakdown of selling, general and administrative expenses for each reporting period is as follows:(Millions of yen)Six months ended
28 February 2017

Six months ended
28 February 2018

Selling, general and administrative expenses
Advertising and promotion
Rental expenses
Depreciation and amortization
Outsourcing
Salaries
Others38,58889,627
17,996
16,078122,301
80,89438,766
98,762
21,742
20,365
138,596
85,405

Total

365,486

403,638

11. Other income and other expenses
The breakdown of other income and other expenses for each reporting period is as follows:(Millions of yen)

Other income
Foreign exchange gains*
Others
Total

Six months ended
28 February 2017

Six months ended
28 February 2018

2,238
1,026

—
910

3,265

910
(Millions of yen)

Other expenses
Foreign exchange losses*
Loss on retirement of property, plant and equipment
Impairment losses
Others
Total

Six months ended
28 February 2017

Six months ended
28 February 2018

—
599
—
1,072

1,708
289
9,940
749

1,671

12,688* Currency adjustments incurred in the course of operating transactions are included in “other income” or “other expenses”.

— 28 —

12. 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
Others
Total

Six months ended
28 February 2017

Six months ended
28 February 201815,496
2,867
250

—
3,008
0

18,613

3,009(Millions of yen)

Finance costs
Foreign exchange losses*
Interest expenses
Others
Total

Six months ended
28 February 2017

Six months ended
28 February 2018

—
1,658
2

6,943
1,361
—

1,660

8,305

* Currency adjustments incurred in the course of operating transactions are included in “other income” or “other expenses”.
13. Earnings per share
Six months ended 28 February 2017

Six months ended 28 February 2018

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)

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)7,224.61
953.55952.17

7,809.69
1,021.16
1,019.36(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 outstanding 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)— 29 —

Six months ended
28 February 2017

Six months ended
28 February 2018

97,233—
97,233
101,970,207

104,150—
104,150
101,992,395—
148,102(148,102)—
180,861(180,861)

Three months ended 28 February 2017
Basic earnings per share for the period (Yen)
Diluted earnings per share for the period (Yen)Three months ended 28 February 2018
270.05269.63

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

251.09250.65(Note) The basis for calculation of basic earnings/(loss) per share and diluted earnings/(loss) per share for the period is asfollows:
Three months ended Three months ended
28 February 201728 February 2018
Basic earnings/(loss) per share for the period
Profit/(loss) for the period attributable to owners of the parent(Millions of yen)
Profit 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)
Diluted earnings/(loss) per share for the period
Adjustment to profit (Millions of yen)
Increase in number of common stock (Shares)(share subscription rights)

27,53825,610—27,538
101,973,477—
25,610101,997,945—
160,575(160,575)—
181,176(181,176)

14. Fair value of financial instruments
The information about the carrying amount and fair value of financial instruments is as follows:(Millions of yen)

Long-term borrowings (Note)
Corporate bonds
Lease obligations (Note)
Total

As at 31 August 2017
As at 28 February 2018
Carrying amounts
Fair value
Carrying amounts
Fair value
12,146
12,253
10,201
10,264
249,583
253,504
249,632
253,269
19,023
19,131
20,90421,026
280,753284,889
280,738
284,559(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.
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.

— 30 —

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

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

Level 2

Level 3

Total

16

—

—

16

—

(86)

—

(86)

—

273

—

273

16

186

—

202
(Millions of yen)

As at 28 February 2018

Level 1

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

Level 2

Level 3

Total

3,456
—

—
(3)

—
—

3,456
(3)

—

(36,357)—(36,357)

3,456(36,361)—(32,905)

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.
The Company did not have any transfers between levels of fair value measurements during the year ended 31 August
2017 and the six months ended 28 February 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.

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
16. Subsequent Events
Not applicable.

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As at
28 February 2018

17,347
11,11016,565
7,155

28,457

23,720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
April 13, 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 of 28 February 2018 and the related interim condensed consolidated statements of profit or loss and othercomprehensive income for the three-month and six-month periods then ended, and the interim condensed consolidated
statements of changes in equity and cash flows for the six-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 of 28 February 2018, and the consolidated results of theiroperations for the three-month and six-month periods then ended, and their cash flows for the six-month period then ended inconformity with IAS 34.
Other information
Consolidated financial statements of the Group for the fiscal year ended 31 August 2017 and interim condensed consolidated
financial statements that include the interim condensed consolidated statement of financial position of the Group as of 28
February 2017 and the related interim condensed consolidated statements of profit or loss and other comprehensive income
for the three-month and six-month periods then ended, and the interim condensed consolidated statements of changes inequity and cash flows for the six-month period then ended, and the related notes to the interim condensed consolidated
financial statements were audited and reviewed respectively, by the predecessor auditor. The predecessor auditor has issued
an unqualified opinion on the independent auditor’s report dated 30 November 2017 and an unqualified conclusion on the
independent accountant’s review report dated 14 April 2017, 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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