FAST RETAILING CO., LTD.
迅 銷 有 限 公 司First Quarterly Report 2022/23
2022.9.1-2022.11.30
Stock Code: 6288

Contents
1. Corporate Profile

1

2. Financial Highlights

2

3. Management Discussion and Analysis

4

4. Information about the Reporting Entity

9

5. Financial Section

12

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

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

15

Interim Condensed Consolidated Statement ofComprehensive Income16(3) Interim Condensed Consolidated Statement of
Changes in Equity

17(4) Interim Condensed Consolidated Statement of Cash Flows19

2. Others

31

Independent Accountant’s Review Report32

1. Corporate Profile
Board of Directors
ChairmanPrincipal Place of Business in Japan
Midtown Tower 9-7-1

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

Executive Directors
Takeshi Okazaki

Japan

Kazumi Yanai
Koji Yanai

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

Independent Non-executive Directors

No. 132 Nathan Road
Tsim Sha Tsui

Nobumichi Hattori (External)
Masaaki Shintaku (External)

KowloonHong Kong

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

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

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

Board of Statutory Auditors

Hopewell Centre
183 Queen’s Road East

Masaaki Shinjo
Masumi Mizusawa

WanchaiHong Kong

Keiko Kaneko (External)
Takao Kashitani (External)

Stock Code

Masakatsu Mori (External)

Hong Kong: 6288
Japan: 9983

Company Secretary
Shea Yee Man

Website Address
https://www.fastretailing.com

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

－

1

－

2. Financial Highlights
Consolidated Financial Summary

TermFirst Quarterof
61st Fiscal
Year

First Quarterof
62nd Fiscal
Year

61st Fiscal
Year

Accounting period

Three months
ended
30 November
2021

Three months
ended
30 November
2022

Year ended
31 August2022

Revenue (Millions of yen)

627,391

716,3932,301,122

Operating profit (Millions of yen)

119,406

117,077

297,325

Profit before income taxes (Millions of yen)

134,208

126,812413,584

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

93,59285,074273,335

127,152

73,981554,833

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

1,217,757

1,565,335

1,561,652

Total assets (Millions of yen)

2,658,723

3,196,819

3,183,762

Basic earnings per share (Yen)916.21

832.47

2,675.30

Diluted earnings per share (Yen)914.87831.32

2,671.29

45.8

49.0

49.1

Net cash generated by operating activities (Millions of yen)

84,419(1,309)430,817

Net cash (used in) / generated by investing activities (Millions ofyen)(21,838)(376,354)(212,226)(65,157)(69,141)(213,050)

1,204,173

914,041

1,358,292

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

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

Net cash (used in) / generated by financing activities (Millions ofyen)Cash and cash equivalents at end of the period (year) (Millions ofyen)(Notes) 1. FAST RETAILING CO., LTD. (the “Company”, the “Parent” or the “Reporting entity”) prepared interim condensed
consolidated financial statements, and therefore has not included the non-consolidated financial summary of the Reporting
entity.
2. The financial figures are sourced from the interim condensed consolidated financial statements or consolidated financial
statements prepared in accordance with International Financial Reporting Standards (“IFRS”).

－

2

－

Business Description
There were no significant changes in the nature of the business engaged by the Company and its subsidiaries (collectively, the“Group”) during the three months ended 30 November 2022.
In addition, there were no significant changes in the organizational structure of the Group, including the major subsidiaries, during thethree months ended 30 November 2022.

－

3

－

3. Management Discussion and Analysis
Business Review
1. Business and Operational Risks
No new business-related risks have arisen during the three months ended 30 November 2022.
There have been no significant changes concerning business-related risks as stated in the annual report for the preceding fiscal year.
2. Financial Analysis(1) Financial Position and Results of Operations(ⅰ) Results of Operations
The Fast Retailing Group’s revenue increased but profit contracted in the first quarter of fiscal 2023, or the three months from 1
September 2022 to 30 November 2022. Consolidated revenue totaled 716.3 billion yen (+14.2% year-on-year), while operating
profit totaled 117.0 billion yen (−2.0% year-on-year). That result was due primarily to a large decline in profits at our UNIQLO
operation in the Mainland China market caused by COVID-19 restrictions on movement. Having said that, UNIQLO operations
in all markets, with the exception of Greater China and Japan, performed strongly and reported considerable increases in bothrevenue and profit. Our GU operation also started expanding once again after generating strong rises in both first-quarter revenue
and profit. Fast Retailing’s consolidated gross profit margin declined by 0.9 point year-on-year to 53.1%. Meanwhile, the selling,
general and administrative expense ratio increased by 1.5 points year-on-year to 37.0%. In addition, we recorded 9.7 billion yen
under finance income net of costs resulting from higher interest income generated from the higher number of bonds undermanagement and from the recording of translated foreign exchange gains on foreign-currency denominated assets. As a result,first-quarter profit before income taxes contracted to 126.8 billion yen (−5.5% year-on-year) and profit attributable to owners of
the Parent decreased to 85.0 billion yen (−9.1% year-on-year).
The Fast Retailing Group is determined to strengthen initiatives designed to expand our business operations and promotesustainability in order to become a global No.1 brand by focusing on: (1) creating customer-oriented products, (2) accelerating
global store openings, (3) building purchasing experiences that fuse physical stores and e-commerce, and (4) helping to solve
various environmental and social issues. We are working especially hard at UNIQLO International, as the pillar operation of theFast Retailing Group, to accelerate new store openings in all markets and to strengthen our e-commerce operations. We aim tocontinue to expand our operations in the Greater China region (Mainland China market, Hong Kong market, and Taiwan market)
and the South Asia, Southeast Asia & Oceania region (Southeast Asia, Australia, and India), where we hope to further strengthen
our already established brand position. Now that we have firmly established profitable business structures in North America andEurope, we are aiming to further expand the scale of our business by strengthening our marketing, promoting deeper
understanding and loyalty towards our LifeWear ultimate everyday clothing, and accelerating new store openings. We also intend
to create clothes that prize LifeWear concepts in order to build a sustainable society. We will continue to pursue our ultimate goalsof creating high-quality, long-lasting clothes, clothes with a low environmental impact that are produced in healthy and safe
working environments, and clothes that can be further circulated, even after purchase, through recycling and reuse.
UNIQLO Japan
UNIQLO Japan reported higher revenue but lower profit in the first quarter of fiscal 2023, with revenue totaling 240.9 billion yen(+6.4% year-on-year) and operating profit totaling 39.4 billion yen (−5.6% year-on-year). First-quarter same-store sales increased
by 4.7% year-on-year. Cooler-than-usual temperatures in September and October helped generate strong sales of Fall Winteritems, such as jackets, souffle yarn knitwear, cashmere, and HEATTECH items. Sales of on-trend items such as our tucked wideleg pants also sold well. However, on the profit front, the gross profit margin declined by 1.1 points year-on-year as procurement
costs rose on the back of the sharp depreciation in the Japanese yen. The selling, general and administrative expense ratio
increased by 0.8 point year-on-year as personnel costs rose on the back of higher wages for part-time and temporary workers andwe decided to strategically increase outlays for advertising and promotion.

－

4

－

UNIQLO International
UNIQLO International reported a significant increase in revenue but a decline in profit in the first quarter of fiscal 2023, withrevenue rising to 357.8 billion yen (+19.4% year-on-year) and operating profit contracting to 57.2 billion yen (−4.4% year-onyear). The two factors that sparked the decline in first-quarter profit were the impact of COVID-19 restrictions on movement in
Mainland China, which resulted in a large contraction in profit there, and the temporary suspension of operations in Russia, which
resulted in a first-quarter loss. However, the South Asia, Southeast Asia & Oceania region, North America, and Europe (excluding
Russia) all achieved record first-quarter performances, generating impressively strong increases in revenue and profits that
outstripped our expectations.
Breaking down the UNIQLO International performance into individual regions and markets (in local-currency terms), theMainland China market was heavily impacted by COVID-19 restrictions on movement and a decline in consumer appetite. At thesame time, a maximum of 247 stores were forced to temporarily close their doors over the period, all of which resulted in a large
decline in both revenue and profit in the Mainland China market. The weather was warmer than usual in the normally bumpermonth of November in the Hong Kong and Taiwan markets, which resulted in a fall in revenue and a large decline in profits.
UNIQLO South Korea reported higher revenue and profit in the first quarter, thanks to particularly strong sales of casualwear
items and knitwear. Meanwhile, revenue and profit both rose considerably in S/SE Asia & Oceania, where we witnessed arecovery in consumer appetite and travel demand. Customer support for UNIQLO products had also grown even stronger
following our efforts to continuously convey pertinent information about our core items. UNIQLO North America reported
significantly higher revenue and profit in the first quarter, with sales proving strong after we conveyed information to improve ourbranding and strengthened our marketing of core Winter items. Europe (excluding Russia) reported much higher revenue in thefirst quarter and profit also increased, with sales proving especially strong in September after the weather turned sharply colder.
GU
The GU business segment reported large increases in both revenue and profit in the first quarter of fiscal 2023, with revenue
rising to 79.3 billion yen (+13.6% year-on-year) and operating profit totaling 10.6 billion yen (+19.3% year-on-year). GU wasable to generate strong first-quarter sales by narrowing down the number of product numbers on offer and ensuring a sufficient
supply of mass-trend products. The return of more normal distribution operations, an increased ability to respond flexibly torequirements for additional production of strong-selling items, and falling temperatures in October all helped boost GU
performance. Sales of heavyweight sweatshirts, wide pants, and heat padded outerwear proved especially strong.
Global Brands
The Global Brands segment reported a large rise in revenue but a decline in profit in the first quarter of fiscal 2023, with revenue
rising to 37.6 billion (+22.4% year-on-year) and an operating profit contracting to 0.7 billion yen (−72.1% year-on-year). While
our Theory brand generated much higher revenue, it also reported a decline in first-quarter profit. This was due to a decline inprofitability and a consequent contraction in profits at Theory’s United States operation following a decision to strengthen
discount sales and also to falling profits from Theory’s Asian operation, which is concentrated primarily in Greater China, due to
COVID-19. Meanwhile, our PLST brand generated slightly higher revenue and profit in the first quarter on the back of strong
sales of lightweight haori jackets and stick pants. Finally, our France-based Comptoir des Cotonniers brand reported a decline inrevenue on the back of the warmer weather in Europe from October onwards as well as declining consumer appetite in an
inflationary environment, and, as a result, the brand recorded a slightly larger operating loss than in the previous year.
Royalty Department performance that had previously been presented under "UNIQLO Japan" is now included in the“Adjustments“. Please see “5. Financial Section, 1. Interim Condensed Consolidated Financial Statements, Notes to the Interim
Condensed Consolidated Financial Statements, 5. Segment Information” for details. The segment information for the threemonths ended 30 November 2021 is based on the revised segmentation.

－

5

－

Sustainability
Fast Retailing is advancing its LifeWear concept—the ultimate in everyday clothing, designed to make everyone's life better—tocreate apparel that not only emphasizes quality, design, and price but also meets the definition of good clothing from thestandpoint of the environment, people and society. Our sustainability activities focus on six priority material areas: Creating newvalue through products and services; Respecting human rights and labor environment in our supply chain; Respecting theenvironment; Strengthening communities; Supporting employee fulfillment and Implementing good corporate governance. In
November 2022, we held the "LifeWear=Sustainability" Second Annual Sustainability Briefing. Directed mainly at investors andthe media, we explained our progress in major initiatives, such as greenhouse gas emissions reduction, efforts to ensure
traceability and diversity and inclusion, and engaged in a two-way communication through Q&As. Please see our website formore details: https://www.fastretailing.com/eng/ir/library/presentation.html■ Creating new value through products and services: In the PEACE FOR ALL project launched by UNIQLO in June 2022, we
collaborated with world-famous celebrities who are committed to taking action to achieve peace for all and volunteering to help
sell UTs (graphic T-shirts) with designs that convey a desire for peace. All profits from sales were donated (equivalent to 20% of
the sales price of each T-shirt) to organizations that provide humanitarian aid to those affected by poverty, discrimination,
violence and conflict. We received great support for the project and the T-shirt sales revenue generated by PEACE FOR ALL
activities totaled 145 million yen as of the end of August 2022.
■ Respecting human rights and labor environment in our supply chain: We are also continually improving our efforts to addresshuman rights and labor issues throughout our entire supply chain. At garment factories and fabric mills, we are performing clear
checks on the labor environment and other conditions by ourselves or through third-party organizations. In addition, we aim toalso conclude a code of conduct with spinning mills, which are upstream of the supply chain, and conduct regular labor
environment audits and traceability information checks by Spring of 2023.
■ Respecting the environment: The use ratio of materials with ultra-low greenhouse gas emissions was approximately 5% in
fiscal 2022, an increase of about 4 points over the year. We are aiming to raise the ratio to 50% by fiscal 2030. We develop andsell products made from recycled materials, including the DRY-EX Crew Neck T-Shirts (27% to 80% recycled polyester), Furry
Yarn Fleece Full-zip Jackets (100% recycled polyester as body material) and Recycled Down Jackets (100% down or feather
extracted from down products collected through RE.UNIQLO), which have been highly popular among customers. We also
believe that long-lasting clothes will reduce our impact on the environment. RE.UNIQLO STUDIO, a repair and customization
service that has been well received in UNIQLO stores in Germany and the UK, also launched a trial service at the Setagaya
Chitosedai store in Japan in October. We will seek to continue collecting customer feedback to improve our service and expand it
further, both in Japan and overseas.
■ Strengthening communities: Together with the United Nations High Commissioner for Refugees (UNHCR), we havelaunched a project supporting independence for Rohingya refugee women in Cox's Bazar refugee camp in Bangladesh, which is
the largest in the world. With support from Fast Retailing Group’s production partners, we provide training on sewing daily
necessities that are always required in a refugee camp, such as reusable fabric sanitary towels. We aim to train 1,000 people by2025.
■ Supporting employee fulfillment: We are implementing various initiatives to meet our target of increasing the ratio of female
managers to 50% by the end of fiscal 2030. As of fiscal 2022, the ratio of women in managerial positions reached 43.7%. We willcontinue to improve our development plans and medium-to-long-term career plans for female management candidates, andprovide support in skill improvement and other areas.

－

6

－

(ⅰi) Financial Position
Total assets as at 30 November 2022 were 3.1968 trillion yen, which was an increase of 13.0 billion yen relative to the end of thepreceding fiscal year. The principal factors were a decrease of 444.2 billion yen in cash and cash equivalents, an increase of 60.6
billion yen in trade and other receivables, an increase of 243.5 billion yen in other current financial assets, an increase of 84.3
billion yen in inventories, a decrease of 51.2 billion yen in derivative financial assets, an increase of 3.9 billion yen in othercurrent assets, an increase of 5.7 billion yen in property, plant and equipment, an increase of 1.6 billion yen in right-of-use assets,
an increase of 2.3 billion yen in intangible assets, an increase of 104.1 billion yen in non-current financial assets, and an increaseof 1.2 billion yen in deferred tax assets.
Total liabilities as at 30 November 2022 were 1.579 trillion yen, which was an increase of 10.6 billion yen relative to the end of
the preceding fiscal year. The principal factors were an increase of 40.7 billion yen in trade and other payables, an increase of
24.1 billion yen in other current financial liabilities, an increase of 9.7 billion yen in derivative financial liabilities, a decrease of
37.9 billion yen in current tax liabilities, a decrease of 5.7 billion yen in other current liabilities, and a decrease of 20.5 billion yen
in deferred tax liabilities.
Total net assets as at 30 November 2022 were 1.6177 trillion yen, which was an increase of 2.3 billion yen relative to the end of
the preceding fiscal year. The principal factors were an increase of 50.3 billion yen in retained earnings, a decrease of 46.7 billion
yen in other components of equity, and a decrease of 1.3 billion yen in non-controlling interests.
(2) Cash Flows Information
Cash and cash equivalents as at 30 November 2022 had decreased by 444.2 billion yen from the end of the preceding fiscal year, to914.0 billion yen.
(Operating Cash Flows)
Net cash used in operating activities for the three months ended 30 November 2022 was 1.3 billion yen (84.4 billion yen was
generated during the three months ended 30 November 2021). The principal factors were cash inflow from profit before tax for
126.8 billion yen and increase in trade and other payables for 38.3 billion yen, and cash outflow from increase in trade and otherreceivables for 64.3 billion yen, increase in inventories for 88.0 billion yen, and income taxes paid for 81.5 billion yen.
(Investing Cash Flows)
Net cash used in investing activities for the three months ended 30 November 2022 was 376.3 billion yen (21.8 billion yen wasused during the three months ended 30 November 2021). The principal factors were net increase in time deposit for 74.6 billion
yen and 279.3 billion yen in payments for investment securities.
(Financing Cash Flows)
Net cash used in financing activities for the three months ended 30 November 2022 was 69.1 billion yen (65.1 billion yen was usedduring the three months ended 30 November 2021). The principal factors were 34.6 billion yen in dividends paid to owners of the
Parent, and 34.8 billion yen in repayments of lease liabilities.
(3) Estimates and Assumptions Used for Those Estimates in the Accounting
For the first-quarter consolidated accounting period, there are no significant changes to the estimates or the assumptions used for
those estimates.
(4) Operational and Financial Challenges to Address as Priority
There have been no significant challenges during the three months ended 30 November 2022 that must be addressed by the Group.
(5) Research and Development
Not applicable.

－

7

－

(6) Significant Facilities
The following are the significant facilities that were newly completed during the three months ended 30 November 2022.
<Subsidiaries in Japan>
Company nameUNIQLO CO., LTD.

Type of facility

Name of business

UNIQLO Japan

Ichikawashiohama

warehouses

DC Warehouses

Location

Completion dateJapan Chiba

September 2022

<Overseas Subsidiaries>
Not applicable.
The following are the significant facilities that were newly planned during the three months ended 30 November 2022.
<Subsidiaries in Japan>
Company name
G.U. CO., LTD.

Type of facility

Name of business

GU Japanwarehouses

Ibarakikita
DC Warehouses<Overseas Subsidiaries>
Not applicable.
3. Significant Contracts in Business Operation
None.

－

8

－

Location
Japan Osaka

Completion date
January 2023

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

Total number of authorized shares (shares)

Common stock

300,000,000
Total

300,000,000(ii) Shares Issued

Type

Number of shares issued
as at 30 November 2022
(shares)Number of shares issued
as at submission date(shares)(As at 13 January 2023)

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

Remarks

Prime market of the
Tokyo
Common stock

106,073,656

106,073,656

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

100 sharesas one unit

(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.

－

9

－

-

(2) Share Subscription Rights
1. Details of the Stock Option Program
Not applicable.
2. Other Share Subscription Rights
Not applicable.
(3) Exercise of convertible bonds with conditional permission for adjustment of exercise priceNot applicable.
(4) Change in Total Number of Shares Issued, Capital Stock, Etc.
Increase/
Balance ofIncrease/(decrease) of
total(decrease) of
Date
total number of
number ofcapital stock
shares issued
shares issued(Millions of(shares)(shares)yen)

Balance ofcapital stock(Millions ofyen)

Increase/(decrease) ofcapital reserve(Millions ofyen)

Balance ofcapital reserve(Millions ofyen)

10,273-

4,578

1 September 2022
to30 November 2022-

106,073,656-(Note) There was no change in the total number of shares issued, capital stock or capital reserve during the three months ended 30
November 2022.
(5) Major Shareholders
There are no items to disclose, as the accounting period under review is the first quarter accounting period.

－

10

－

(6) Voting Rights
Concerning “Voting Rights” as at the end of the three months ended 30 November 2022, it has not been possible to confirm andstate the details entered in the register of shareholders. Therefore, the stated details are based on the register of shareholders as at
the immediately preceding record date (31 August 2022).
(i) Shares issued
As at 30 November 2022
Class

Number of shares(shares)Number of voting rights

Remarks

-

-

-

-

-

-

-

-

-

-

-

Non-voting shares
Shares subject to restrictions on voting rights(i.e., treasury stock, etc.)
Shares subject to restrictions on voting rights(i.e., other than treasury stock)(Shares held astreasury stock)

Shares with full voting rights(i.e., treasury stock, etc.)

Common stock
3,883,900

Shares with full voting rights

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

1,020,944

102,094,400
Common stock

Shares less than one unit

95,356

Total number of shares issued

106,073,656

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

1,020,944-(Notes) 1. The columns for the number of shares of “Shares with full voting rights (i.e., other than treasury stock) ” and “Shares lessthan one unit” include 2,700 shares and 84 shares, respectively, held in the name of Japan Securities Depository Center, Inc.
2. Common stock in the “Shares less than one unit” row includes 73 shares of treasury stock held by the Company.
(ii) Treasury Stock

Name or trade name ofholderFAST RETAILING
CO., LTD.

Holder’s address
10717-1 Sayama
Yamaguchi-shi

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

As at 30 November 2022
Percentage ofTotal number of
total number ofshares held
shares issued(shares)(%)

3,883,900-

3,883,900

3.66

3,883,900-

3,883,900

3.66

Yamaguchi

Total

-

2. Directors
Since the submission of the year-end report for the preceding fiscal year, there has been no change of directors during the threemonths ended 30 November 2022.

－

11

－

5. Financial Section
1. Preparation of Interim Condensed Consolidated Financial Statements
The interim condensed consolidated financial statements of the Group, namely, the interim condensed consolidated statement offinancial position as at 30 November 2022, the interim condensed consolidated statement of profit or loss and interim condensed
consolidated statement of comprehensive income for the three-month period then ended, the interim condensed consolidated
statement of changes in equity and interim condensed consolidated statement of cash flows for the three-month period then ended,and the related notes (collectively, the “interim condensed consolidated financial statements”) were prepared in accordance with
International Accounting Standard 34 Interim Financial Reporting (“IAS 34”), pursuant to Article 93 of the “Rules Governing Term,
Form and Preparation of Consolidated Quarterly Financial Statements” (Cabinet Office Ordinance No. 64 of 2007, hereinafterreferred to as “Consolidated Quarterly Financial Statements Rules”).
2. Review Report
Pursuant to the first clause of Article 193-2 of the Financial Instruments and Exchange Act, the interim condensed consolidated
financial statements have been reviewed by Deloitte Touche Tohmatsu LLC.

－

12

－

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

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

As at 31 August 2022

As at 30 November 2022

ASSETS
Current assets
Cash and cash equivalents

1,358,292
60,184

914,041
120,78514
6

123,446
485,928

366,958
570,314

14

124,551
2,612

106,318
2,652

23,83527,801

2,178,851

2,108,872

195,226
395,634

201,012397,283

8,092
76,621

8,092
78,931

164,340

268,531

18,557

18,592

8,506

9,730

134,240
3,690

101,193
4,578

1,004,911

1,087,947

3,183,762

3,196,819

350,294

391,022

209,286
1,513

233,456
3,432

123,885
77,162126,094
39,180

Other liabilities

2,581
111,519

2,372
105,755

Total current liabilities

876,242901,314241,022356,840

240,739
354,152

47,78044,25849,02323,756

44
2,171

7,905
2,167

Trade and other receivables
Other financial assets
Inventories
Derivative financial assets
Income taxes receivable
Other assets
Total current assets
Non-current assets
Property, plant and equipment

7

Right-of-use assets
Goodwill
Intangible assets
Financial assets

14

Investments in associates accounted
for using the equity method
Deferred tax assets
Derivative financial assets

14

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

14
14

Derivative financial liabilities
Lease liabilities
Current tax liabilities
Provisions

Non-current liabilities
Financial liabilities

14

Lease liabilities
Provisions
Deferred tax liabilities
Derivative financial liabilities

14

Other liabilities
Total non-current liabilities
Total liabilities

－

13

－

692,117

677,744

1,568,360

1,579,059

(Millions of yen)Notes

As at 31 August 2022

As at 30 November 2022

EQUITY
10,273

Capital stock
Capital surplus

27,834
1,275,102

Retained earnings
Treasury stock, at cost

(14,813)
263,255

Other components of equity

10,27327,823
1,325,451(14,764)
216,551

Equity attributable to owners of the Parent
Non-controlling interests

1,561,652
53,7501,565,335
52,424

Total equity

1,615,402

1,617,760

3,183,762

3,196,819

Total liabilities and equity

－

14

－

(2) Interim Condensed Consolidated Statement of Profit or Loss and Interim Condensed Consolidated Statement of Comprehensive
IncomeInterim Condensed Consolidated Statement of Profit or Loss
Three months ended 30 November 2022
(Millions of yen)
Notes
9

Revenue
Cost of sales
Gross profit
Selling, general and administrative expenses

10
11

Other income
Other expenses

11

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

1212Finance costs

Three months ended
30 November 2021

Three months ended
30 November 2022

627,391

716,393(288,765)(336,109)338,626(222,451)

380,283(265,033)

3,687
(887)

2,436
(1,057)432

449

119,406
16,522

117,077
12,322(1,721)(2,588)

Profit before income taxes
Income tax expense

134,208(36,588)

126,812(36,981)

Profit for the period

97,61989,830

Profit for the period attributable to:
Owners of the Parent

93,59285,074Non-controlling interests

4,027

4,756

Total

97,61989,830916.21914.87832.47831.32

Earnings per share
13

Basic (yen)Diluted (yen)

13

－

15

－

Interim Condensed Consolidated Statement of Comprehensive Income
Three months ended 30 November 2022
(Millions of yen)Three months ended
30 November 2021

Three months ended
30 November 2022

97,61989,830

(58)

(23)

(58)

(23)

Exchange differences on translating
foreign operations

16,022(9,208)Cash flow hedges
Share of other comprehensive income of associates

18,7132(2,873)19

34,738(12,062)

Notes
Profit for the period
Other comprehensive income / (loss), net of income tax
Items that will not be reclassified subsequently to
profit or loss
Financial assets measured at fair value throughother comprehensive income / (loss)
Total items that will not be reclassified subsequently to
profit or loss
Items that may be reclassified subsequently to
profit or loss

Total items that may be reclassified subsequently to
profit or loss
Other comprehensive income / (loss), net of income tax

34,679(12,086)

132,299

77,744

Owners of the Parent
Non-controlling interests

127,152
5,147

73,981
3,763

Total comprehensive income for the period

132,299

77,744

Total comprehensive income for the period
Attributable to:

－

16

－

(3) Interim Condensed Consolidated Statement of Changes in Equity
For the three months ended 30 November 2021
(Millions of yen)
Other components of equity

Note

As at 1 September 2021

Capitalstock

CapitalsurplusRetainedearnings

Treasurystock, atcost

FinancialassetsForeign
Share of othermeasured
Cash flow
currency
comprehensive
at fair value
hedgetranslation
income ofthrough otherreserve
reserveassociatescomprehensive
income / (loss)

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

Net changes during the period
Comprehensive income
Profit for the period
Other comprehensive income/(loss)--

93,592

-

-

-

-

-

-

-

-

(58)

15,203

18,412

Total comprehensive income--

93,592-(58)

15,203

18,412

-

568
1,738

(24,514)
-

(3)
59
-

-

-

-

-

-

-

-

-

-

30

-

-

-

-

-

2,306

(24,483)

Transactions with the owners of
the Parent
Acquisition of treasury stock
Disposal of treasury stock
Dividends
Share-based payments
Transfer to non-financial
assetsTransfer to retained earnings
Changes in ownershipinterests in subsidiaries
without losing control
Total transactions with theowners of the Parent
Total net changes during the period
As at 30 November 2021

8

271

9,855

30,89013Equityattributable
Nonto owners controllingof theinterests
Parent

Total

Total
equity41,031

1,116,484

45,813

1,162,298--

93,592

4,027

97,6192

33,56033,5601,119

34,6792

33,560127,152

5,147

132,299

-

-

-

(3)
627
(24,514)
1,738(4,282)-(3)
627(28,796)
1,738-(3,727)-(3,727)(3,727)34(3,693)

(30)

-

-

-

(30)

-

-

-

-

-

-

-

-

-

-

402

402

56

(30)

-

(3,727)-(3,758)(25,879)(3,845)(29,724)-

2,306

69,10856(89)

15,203

14,6842

29,801

101,272

1,302

102,574

10,273

27,667

1,123,899(14,917)182

25,05945,575

16

70,8331,217,757

47,116

1,264,873

－

17

－

For the three months ended 30 November 2022
(Millions of yen)
Other components of equity

Note

As at 1 September 2022
Net changes during the period
Comprehensive income
Profit for the period
Other comprehensive income/(loss)
Total comprehensive income
Transactions with the owners of
the Parent
Acquisition of treasury stock
Disposal of treasury stock
Dividends
Share-based payments
Transfer to non-financial
assetsTransfer to retained earnings
Changes in ownershipinterests in subsidiaries
without losing control
Total transactions with theowners of the Parent
Total net changes during the period
As at 30 November 2022

8

FinancialassetsForeign
Share of othermeasured
Cash flow
currency
comprehensive
at fair value
hedgetranslation
income ofthrough otherreserve
reserveassociatescomprehensive
income / (loss)

Equityattributable
Nonto owners controllingof theinterests
ParentCapitalstock

CapitalsurplusRetainedearnings

Treasurystock, atcost

10,273

27,834

1,275,102(14,813)131

100,587

162,407129

263,255

1,561,652

53,7501,615,402--

85,074

-

-

-

-

-

-

85,074

4,756

89,830

-

-

-

-

(23)

(9,503)(1,585)

19(11,092)(11,092)(993)(12,086)--

85,074-(23)(9,503)(1,585)

19(11,092)

73,981

3,763

77,744

-

604
(616)

(34,744)
-

(2)
52
-

-

-

-

-

-

(2)
657
(34,744)(616)(4,590)-(2)
657(39,335)
(616)

-

-

-

-

-

-

(35,591)-(35,591)(35,591)(497)(36,089)

-

-

20

-

(20)

-

-

-

(20)

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

(11)

(34,724)

49

(20)

-

(35,591)-(35,611)(70,298)(5,088)(75,386)-(11)

50,34949(43)(9,503)(37,176)

19(46,704)

3,683(1,325)

2,357

10,27327,823

1,325,451(14,764)

88

91,083

125,230

149

216,551

1,565,335

52,424

1,617,760

－

18

－

Total

Total
equity(4) Interim Condensed Consolidated Statement of Cash Flows(Millions of yen)Three months ended
30 November 2021

Three months ended
30 November 2022

Cash flows from operating activities
Profit before income taxes

134,208

126,812

Depreciation and amortization
Impairment losses

43,92098

46,74362

Interest and dividend income
Interest expenses(1,221)
1,673(8,385)2,588

Foreign exchange losses / (gains)Share of profit and loss of associates accounted for using(15,252)(3,936)

(432)

(449)

Note

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

247

83

(Increase) / Decrease in trade and other receivables(Increase) / Decrease in inventories(70,202)(4,103)(64,396)(88,050)

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

30,473(9,597)38,315(3,396)

Increase / (Decrease) in other liabilities
Others, net

17,180(147)

17,243
12,834

Cash generated from operations

126,844

76,067

Interest and dividends income received
Interest paid

1,085
(1,043)

6,349(2,134)

Income taxes paid

(42,467)(81,591)

Net cash generated by / (used in) operating activities

84,419(1,309)(30,033)(126,306)

Cash flows from 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

28,17551,620(14,174)(14,761)

Payments for intangible assets
Payments for acquisition of right-of-use assets(5,832)(232)(6,798)(434)

Payments for acquisition of investment securities
Payments for lease and guarantee deposits(1,163)(279,335)(968)

Proceeds from collection of lease and guarantee deposits
Others, net

1,508
(86)

1,567
(935)

(21,838)(376,354)

Net cash generated by / (used in) investing activities

－

19

－

(Millions of yen)Three months ended
30 November 2021

Three months ended
30 November 2022

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

7,699

1,118

Repayment of short-term loans payable
Dividends paid to owners of the Parent(14,113)(24,515)(736)(34,697)

Repayments of lease liabilities
Others, net(34,707)479(34,875)
49

Net cash generated by / (used in) financing activities(65,157)(69,141)

29,013

2,554

Net increase / (decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning of period

26,437
1,177,736(444,250)
1,358,292

Cash and cash equivalents at the end of period

1,204,173

914,041Note

8Effect of exchange rate changes on the balance of cash held
in foreign currencies

－

20

－

Notes to the Interim Condensed Consolidated Financial Statements
1. Reporting Entity
FAST RETAILING CO., LTD. is a company incorporated in Japan. The locations of the registered headquarters and principal
offices of the Company are disclosed on the Group’s website (http://www.fastretailing.com/eng/).
The principal activities of the Company and its consolidated subsidiaries are the operations of the UNIQLO business (i.e., casualclothing retail business operating under the “UNIQLO” brand in Japan and overseas), GU business (i.e., casual clothing retailbusiness operating under the “GU” brand in Japan and overseas) and Theory business (i.e., apparel design and retail business inJapan and overseas), etc.
2. Basis of Preparation
The interim condensed consolidated financial statements have been prepared in accordance with IAS 34. The Group meets all of
the criteria of a “specified company” defined under Article 1-2 of the Consolidated Quarterly Financial Statements Rules, andaccordingly applies Article 93 of the Consolidated Quarterly Financial Statements Rules. Since the interim condensed consolidated
financial statements do not include all the information and disclosures required for consolidated financial statements, they should
be read in conjunction with the Group’s annual consolidated financial statements for the year ended 31 August 2022.
The interim condensed consolidated financial statements were approved on 12 January 2023 by Tadashi Yanai, Chairman,
President and CEO, and Takeshi Okazaki, Group Executive Vice President and CFO.
3. Significant Accounting Policies
The accounting policies presented in the consolidated financial statements for the year ended 31 August 2022 are appliedconsistently in the preparation of these interim condensed consolidated financial statements.
4. Use of Estimates and Judgments
The preparation of the interim condensed consolidated financial statements requires management to make judgments, estimatesand assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income andexpenses. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. The effects of the review of accounting estimates arerecognized in the accounting period in which the estimates were reviewed and in future accounting periods.
The Company made accounting estimates involving the assumption that the impact of the global spread of COVID-19 willcontinue to recover for most countries and regions, including Japan. For other countries and regions, the impact may continue formid to long term.
In principle, estimates and judgments that have significant effects on the amounts recognized in the interim condensed
consolidated financial statements are the same as those in the preceding fiscal year.

－

21

－

5. Segment Information(i) Description of reportable segments
The Group’s reportable segments are components for which discrete financial information is available and which are reviewed
regularly by the Board of Directors (the “Board”) to make decisions about the allocation of resources and to assess performance.
The Group’s main retail clothing business is divided into four reportable operating segments: UNIQLO Japan, UNIQLOInternational, GU and Global Brands, each of which is used to frame and form the Group’s strategy.
The main businesses covered by each reportable segment are as follows:
UNIQLO Japan: UNIQLO clothing business within Japan
UNIQLO International: UNIQLO clothing business outside of Japan
GU: GU clothing business in Japan and overseas
Global Brands: Theory, PLST, COMPTOIR DES COTONNIERS and PRINCESSE TAM.TAM clothing business(Changes to classification of reportable segment)
For the three months ended 30 November 2022, in accordance with the partial review of the performance management
segmentation, Royalty Department performance that had previously been presented under "UNIQLO Japan" is now included in
the “Adjustments”.
This is due to the increase in sales of UNIQLO International including Europe and United States and the accompanying increasein royalty revenue, which has resulted in a change in positioning of the Royalty Division to a corporate division.
The segment information for the three months ended 30 November 2021 is based on the revised segmentation.
(ii) Segment revenue and results
For the three months ended 30 November 2021
(Millions of yen)
Reportable segments
Total

30,721

626,731660-

627,391

8,910

2,540

113,188

18

6,199

119,406

9,093

2,443

114,1710

20,035

134,208

UNIQLOJapan

UNIQLOInternational

GU

GlobalBrands

Revenue

226,449

299,723

69,837

Operating profit / (loss)

41,82859,90942,80059,834

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

Adjustments(Note 2)

Interim
Condensed
Consolidated
Statement ofProfit or Loss

Others(Note 1)

(Note 1) “Others” includes the real estate leasing business, etc.
(Note 2) “Adjustments” mainly includes revenue and corporate expenses which are not allocated to individual reportable segments.
For the three months ended 30 November 2022
(Millions of yen)
Reportable segments
Total

37,604

715,815577-

716,393

10,631

708

108,105

(25)

8,997

117,077

10,661

501

108,275(43)

18,580126,812UNIQLOJapan

UNIQLOInternational

GU

GlobalBrands

Revenue

240,949

357,896

79,364

Operating profit / (loss)

39,47257,29339,68457,427

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

Adjustments(Note 2)

Interim
Condensed
Consolidated
Statement ofProfit or Loss

Others(Note 1)

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

－

22

－

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

Write-down of inventories to net realizable value

－

23

－

Three months ended
30 November 2021

Three months ended
30 November 2022

2,273

2,186

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

As at
30 November 2022

Buildings and structures

125,947

131,260

Machinery and equipment

29,71028,928

Furniture, fixtures and vehicles

26,06427,359

Land

1,927

1,927

Construction in progress

11,575

11,535

195,226

201,012

Total dividends(Millions of yen)

Dividends per share(Yen)

24,514240

Total

8. Dividends
The total amount of dividends paid was as follows:
For the three months ended 30 November 2021
Resolution
Meeting of the Board on 2 November 2021

Dividends were declared on 2 November 2021 and paid on 5 November 2021. The effective date of the dividend was forshareholders as at 31 August 2021.
For the three months ended 30 November 2022
Resolution
Meeting of the Board on 1 November 2022

Total dividends(Millions of yen)

Dividends per share(Yen)

34,744

340

Dividends were declared on 1 November 2022 and paid on 4 November 2022. The effective date of the dividend was forshareholders as at 31 August 2022.

－

24

－

9. Revenue
The Group conducts its global clothing retail operations through both physical stores and e-commerce channels. The following is abreakdown of total revenue by major regional market operation.
Three months ended 30 November 2021
Revenue(Millions of yen)

Percentage of Total
(%)

Japan

226,449

36.1

Greater China

151,644

24.2

Other parts of Asia & Oceania

64,844

10.3

North America & Europe

83,234

13.3

UNIQLO (Note 1)

526,172

83.9

GU (Note 2)

69,837

11.1

Global Brands (Note 3)

30,721

4.9

660

0.1

627,391

100.0

Others (Note 4)
Total(Note 1) Revenue is classified by nation or region based on customer location.
The designated regions and countries are classified as follows:
Greater China:
Other parts of Asia & Oceania:

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

North America & Europe:

Indonesia, Australia, Vietnam, India
United States of America, Canada, United Kingdom, France, Russia,(Note 2) Main national and regional market:

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

－

25

－

Three months ended 30 November 2022
Revenue(Millions of yen)

Percentage of Total
(%)

Japan

240,949

33.6

Greater China

146,718

20.5

Other parts of Asia & Oceania

110,323

15.4

North America & Europe

100,854

14.1

UNIQLO (Note 1)

598,846

83.6

GU (Note 2)

79,364

11.1

Global Brands (Note 3)

37,604

5.2

577

0.1

716,393

100.0

Others (Note 4)
Total(Note 1) Revenue is classified by nation or region based on customer location.
The designated regions and countries are classified as follows:
Greater China:
Other parts of Asia & Oceania:

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

North America & Europe:

Indonesia, Australia, Vietnam, India
United States of America, Canada, United Kingdom, France, Russia,(Note 2) Main national and regional market:

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

10. Selling, General and Administrative Expenses
The breakdown of selling, general and administrative expenses for each reporting period is as follows:(Millions of yen)Three months ended
30 November 2021

Three months ended
30 November 2022

Advertising and promotion

21,86326,555

Lease expenses

20,10025,618Depreciation and amortization

43,92046,743

Outsourcing

13,594

15,265

Salaries

73,84791,005Distribution

26,272

30,771Others22,85329,075

222,451

265,033

Selling, general and administrative expenses

Total

－

26

－

11. Other Income and Other Expenses
The breakdown of other income and other expenses for each reporting period is as follows:(Millions of yen)Three months ended
30 November 2021

Three months ended
30 November 2022

Foreign exchange gains (Note)

1,396

1,542

Others

2,291

893

3,687

2,436

Other income

Total(Millions of yen)Three months ended
30 November 2021

Three months ended
30 November 2022

Loss on retirement of property, plant and equipment

247

83

Impairment losses

98

62

Others

541

912

887

1,057

Other expenses

Total(Note) Currency adjustments incurred in the course of operating transactions are included in “Other income”.
12. Finance Income and Finance Costs
The breakdown of finance income and finance costs for each reporting period is as follows:(Millions of yen)Three months ended
30 November 2021

Three months ended
30 November 2022

Foreign exchange gains (Note)

15,252

3,936Interest income

1,211

8,380

58

5

16,522

12,322Finance income

Others
Total(Millions of yen)Three months ended
30 November 2021

Three months ended
30 November 2022

1,673

2,588

48

-

1,721

2,588

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

－

27

－

13. Earnings per ShareThree months ended 30 November 2021
Equity per share attributable to ownersof the Parent (Yen)Three months ended 30 November 2022
11,920.08

Equity per share attributable to owners of the
Parent (Yen)

15,315.90

Basic earnings per share for the period (Yen)916.21

Basic earnings per share for the period (Yen)832.47

Diluted earnings per share for the period(Yen)

914.87

Diluted earnings per share for the period(Yen)

831.32(Note) The basis for calculation of basic earnings per share and diluted earnings per share is as follows:
Three months ended
30 November 2021

Three months ended
30 November 2022

93,59285,074--

93,59285,074102,151,077

102,195,460--

Increase in number of common stock (Shares)

149,595

141,054(Number of share subscription rights included in increase)(149,595)(141,054)

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)

14. Fair Value of Financial Instruments
Information about the carrying amount and fair value of financial instruments is as follows:(Millions of yen)
As at 31 August 2022

As at 30 November 2022

Carrying
amounts

Fair value

Carrying
amounts

Fair value

Bonds

135,214134,264

406,839403,214

Security deposits and guarantees

68,626

69,09368,071

67,991

203,840

203,357

474,910471,206

369,589

370,513369,619

368,564

369,589

370,513369,619

368,564

Financial assets

Total
Financial liabilities
Corporate bonds
Total(Note) The amount above includes the outstanding balance of bonds and corporate bonds due within one year.
Notes concerning financial assets and financial liabilities for which carrying amount approximates fair value have been omitted.
The fair value of bonds is calculated with reference to publicly available market prices.
The fair value of security deposits and guarantees is calculated on the basis of the present value, applying the current market interest
rate.
The fair value of corporate bonds is calculated with reference to publicly available market prices.
The fair value measurements of bonds, security deposits / guarantees, and corporate bonds are categorized as level 2.

－

28

－

The following tables illustrate the fair value measurement hierarchy of the Group’s financial instruments. All assets and liabilities
for which fair value is measured or disclosed in the interim condensed financial statements are categorized within the fair value
hierarchy based on the following characteristics:
Level 1 - based on quoted prices (unadjusted) in active markets for identical assets or liabilities
Level 2 - based on valuation techniques for which the lowest level input that is significant to the fair value measurement isobservable, either directly or indirectly
Level 3 - based on valuation techniques for which the lowest level input that is significant to the fair value measurement isunobservable
When multiple inputs are used to measure fair value, the fair value level is determined based on the input with the lowest level
categorization in the overall fair value assessment.
The following tables illustrate the fair value measurement hierarchy of the Group’s financial instruments:(Millions of yen)
As at 31 August 2022

Level 1

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

Level 3

Total

301

-

189

490

-

(1,109)-(1,109)-258,344-258,344301

257,234

189

257,725

measured at fair value through profit or loss
Net financial assets and financial liabilities
designated as hedging instruments - Fair value
Fair value

Level 2

(Millions of yen)
As at 30 November 2022

Level 1

Level 2

Level 3

Total

Financial assets measured at fair value throughother comprehensive income

197

-

189

387

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

-

(480)

-

(480)

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

196,654-

196,654

Fair value

197

196,174

189

196,561

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

－

29

－

15. Commitments for Expenditures
The Group had the following commitments at each reporting date:(Millions of yen)
As at
31 August 2022

As at
30 November 2022

Commitment for the acquisition of property, plant and equipment

32,92628,493

Commitment for the acquisition of intangible assets

2,202

3,785

35,12832,279Total

16. Subsequent Events(Stock Split, Corresponding Changes in The Articles of Incorporation)
At the meeting of the Board of Directors held on 15 December 2022, the Company decided to conduct a stock split and made thecorresponding changes to the Articles of Incorporation.
1. Purpose of the Stock Split
This stock split is designed to reduce the level of investment units as part of our aim to further increase the liquidity of theCompany’s shares and expand the range of investors who hold the Company’s shares.
2. Overview of the Stock Split(1) Stock Split Method
Based on the record date of 28 February 2023, the Company will conduct a three-for-one split for each common share owned
by shareholders listed or recorded on the final register of shareholders on the record date.
(2) Increase in Number of Shares as a Result of the Stock Split
Total number of issued shares prior to stock split
Increase in number of shares as a result of the stock split
Total number of issued shares after the stock split
Total number of issuable shares after the stock split

106,073,656 shares
212,147,312 shares
318,220,968 shares
900,000,000 shares(3) Stock Split Schedule
Date of publication of record date: 13 February 2023
Record date: 28 February 2023
Effective date: 1 March 2023
(4) Impact on per share data
Per share data assuming that the applicable stock split was conducted at the beginning of the previous consolidated fiscal year
is as follows:
Three months ended
Three months ended
30 November 2021
Equity per share attributable to owners of the Parent (Yen)

30 November 2022

3,973.36

5,105.30

Basic earnings per share for the period (Yen)

305.40277.49Diluted earnings per share for the period (Yen)

304.96277.11

3. Corresponding Changes in The Articles of Incorporation(1) Reason for change
In view of this share split, in accordance with Article 184 No. 2 of the Japanese Companies Law, the change in the total number
of issuable shares listed in Article 6 of the Company's Articles of Incorporation will take effect on 1 March 2023.
(2) Outline of changes
A summary of the changes is as follows:(Underlined segments Indicate amended items)
Current Articles of Incorporation

After Changes(Total number of Issuable Shares)
Article 6 The total number of issuable shares of the(Total number of Issuable Shares)
Article 6 The total number of issuable shares of theCompany is 300,000,000 shares.

Company is 900,000,000 shares.

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

30

－

2. Others
Dividends
The Company resolved to pay dividends from retained earnings at the meeting of the Board convened on 1 November 2022.
The total amount of dividends paid and the amount per share are stated under “Financial Section 1. Interim Condensed
Consolidated Financial Statements, Notes to the Interim Condensed Consolidated Financial Statements 8. Dividends”.

－

31

－

(TRANSLATION)
INDEPENDENT ACCOUNTANT'S REVIEW REPORT

13 January, 2023

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

Deloitte Touche Tohmatsu LLC
Tokyo office
Designated Engagement Partner,
Certified Public Accountant:
Hirofumi Otani

Designated Engagement Partner,
Certified Public Accountant:
Akira Kimotsuki

Accountant's Conclusion
Pursuant to the first paragraph of Article 193-2 of the Financial Instruments and Exchange Act, we havereviewed the interim condensed consolidated financial statements of FAST RETAILING CO., LTD. and its
consolidated subsidiaries (the “Group”) included in the Financial Section, namely, the interim condensed
consolidated statement of financial position as at 30 November 2022, the interim condensed consolidated
statement of profit or loss and interim condensed consolidated statement of comprehensive income for thethree-month period then ended, the interim condensed consolidated statement of changes in equity and theinterim condensed consolidated statement of cash flows for the three-month period then ended, and therelated notes.
Based on our review, nothing has come to our attention that causes us to believe that the accompanying
interim condensed consolidated financial statements do not present fairly, in all material respects, theconsolidated financial position of the Group as at 30 November 2022, and its consolidated financial
performance for the three-month period then ended and its consolidated cash flows for the three-month period
then ended in accordance with International Accounting Standard (“IAS”) 34 “Interim Financial Reporting”(“IAS 34”), pursuant to Article 93 of the “Rules Governing Term, Form and Preparation of Consolidated
Quarterly Financial Statements”.
Basis for Accountant's Conclusion
We conducted our review in accordance with quarterly review standards generally accepted in Japan. Our
responsibility under those standards is further described in the Accountant's Responsibility for the Review of
the Interim Condensed Consolidated Financial Statements section of our report. We are independent of theGroup in accordance with the provisions of the Code of Professional Ethics in Japan, and we have fulfilled ourother ethical responsibilities as accountants. We believe that we have obtained the evidence to provide abasis for our review conclusion.
Responsibilities of Management and Statutory Auditors and the Board of Statutory Auditors for theInterim Condensed Consolidated Financial Statements
Management is responsible for the preparation and fair presentation of the interim condensed consolidated
financial statements in accordance with IAS 34, and for such internal control as management determines isnecessary to enable the preparation of interim condensed consolidated financial statements that are free frommaterial misstatement, whether due to fraud or error.
－

32

－

In preparing the interim condensed consolidated financial statements, management is responsible forassessing the Group's ability to continue as a going concern, disclosing, as applicable, matters related togoing concern in accordance with paragraph 4 of IAS 1 "Presentation of Financial Statements" (“IAS 1”).
Statutory Auditors and the Board of Statutory Auditors are responsible for overseeing the Directors' executionof duties relating to the design and operating effectiveness of the controls over the Group's financial reporting
process.
Accountant's Responsibility for the Review of the Interim Condensed Consolidated Financial
Statements
Our objective is to issue an accountant's report that includes our conclusion.
As part of a review in accordance with quarterly review standards generally accepted in Japan, we exercise
professional judgment and maintain professional skepticism throughout the review. We also:• Make inquiries, primarily of management and persons responsible for financial and accounting matters, andapply analytical 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.
• Conclude whether nothing has come to our attention, based on the evidence obtained, related to going
concern that causes us to believe that the interim condensed consolidated financial statements are notfairly presented, in all material respects, in accordance with paragraph 4 of IAS 1, if we conclude that amaterial uncertainty exists related to events or conditions that may cast significant doubt on the Group's
ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to
draw attention in our accountant's report to the related disclosures in the interim condensed consolidated
financial statements or, if such disclosures are inadequate, to modify our conclusion. Our conclusions are
based on the evidence obtained up to the date of our accountant's report. However, future events orconditions may cause the Group to cease to continue as a going concern.
• Evaluate whether nothing has come to our attention that causes us to believe that the overall presentationand disclosures of the interim condensed consolidated financial statements are not in accordance with IAS
34, as well as the overall presentation, structure and content of the interim condensed consolidated
financial statements, including the disclosures, and whether nothing has come to our attention that causes
us to believe that the interim condensed consolidated financial statements do not represent the underlying
transactions and events in a manner that achieves fair presentation.
• Obtain evidence regarding the financial information of the entities or business activities within the Group to
express a conclusion on the interim condensed consolidated financial statements. We are responsible forthe direction, supervision and performance of the review of the interim condensed consolidated financial
statements. We remain solely responsible for our conclusion.
We communicate with Statutory Auditors and the Board of Statutory Auditors regarding the planned scope
and timing of the review and significant findings that we identify during our review.
We also provide Statutory Auditors and the Board of Statutory Auditors with a statement that we havecomplied with relevant ethical requirements regarding independence, and communicate with them all
relationships and other matters that may reasonably be thought to bear on our independence, and whereapplicable, related safeguards.
Interest Required to Be Disclosed by the Certified Public Accountants Act of Japan
Our firm and its designated engagement partners do not have any interest in the Group which is required tobe disclosed pursuant to the provisions of the Certified Public Accountants Act of Japan.
Notes to the Readers of Independent Accountant's Review Report
This is an English translation of the independent accountant's review report as required by the Financial
Instruments and Exchange Act of Japan for the conveniences of the reader.

－33－