FAST RETAILING CO., LTD.
迅 銷 有 限 公 司First Quarterly Report 2021/22
2021.9.1-2021.11.30
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

17

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

18(2) Interim Condensed Consolidated Statement ofProfit or Loss and Interim Condensed Consolidated
Statement of Comprehensive Income

20Interim Condensed Consolidated Statement of Profit or Loss

20

Interim Condensed Consolidated Statement ofComprehensive Income21(3) Interim Condensed Consolidated Statement of
Changes in Equity

22(4) Interim Condensed Consolidated Statement of Cash Flows24

2. Others

35

Independent Accountant’s Review Report36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
Japan

Executive Directors
Takeshi Okazaki
Kazumi Yanai

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

Koji Yanai

No. 132 Nathan Road
Tsim Sha Tsui

Independent Non-executive Directors
Nobumichi Hattori

KowloonHong Kong

Masaaki Shintaku
Takashi Nawa

HDR Registrar and HDR Transfer Office

Naotake Ohno
Kathy Mitsuko Koll (aka Kathy Matsui)

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

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1 －

2. Financial Highlights
Consolidated Financial Summary

TermFirst Quarterof
60th Fiscal
Year

First Quarterof
61st Fiscal
Year

60th Fiscal
Year

Accounting period

Three months
ended
30 November
2020

Three months
ended
30 November
2021

Year ended
31 August
2021

Revenue (Millions of yen)619,797

627,391

2,132,992

Operating profit (Millions of yen)

113,094

119,406

249,011

Profit before income taxes (Millions of yen)

107,164

134,208

265,872

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

70,381

93,592

169,847

65,117

127,152

215,309

997,071

1,217,757

1,116,484

Total assets (Millions of yen)

2,539,457

2,658,723

2,509,976

Basic earnings per share (Yen)

689.29916.21

1,663.12

Diluted earnings per share (Yen)

688.17914.87

1,660.44

39.3

45.8

44.5

Net cash generated by operating activities (Millions of yen)

140,334

84,419428,968

Net cash (used in) / generated by investing activities (Millions ofyen)(19,296)(21,838)(82,597)(58,655)(65,157)(302,985)

1,154,607

1,204,173

1,177,736

Comprehensive income attributable to ownersof the Parent (Millions of yen)
Equity attributable to owners of 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”).

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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 2021.
In addition, there were no significant changes in the organizational structure of the Group, including the major subsidiaries, during thethree months ended 30 November 2021.

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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 2021.
There have been no significant changes concerning business-related risks as stated in the annual report for the preceding fiscal year.
2. Financial Analysis(1) Financial Position and Results of Operations(ⅰ) Results of Operations
The Fast Retailing Group’s revenue and profit both increased in the first quarter of fiscal 2022, or the three months from 1
September 2021 to 30 November 2021. Consolidated revenue totaled 627.3 billion yen (+1.2% year-on-year), while operating
profit totaled 119.4 billion yen (+5.6% year-on-year). That impressive result can be attributed primarily to strong performancesand large increases in both revenue and profit at UNIQLO operations in South Asia, Southeast Asia & Oceania (Southeast Asia,
Australia, and India), North America, and Europe. Meanwhile, our UNIQLO operations in Japan and the Greater China region(Mainland China market, Hong Kong market, and Taiwan market) and our GU business segment all reported declines in firstquarter revenue and profit. Fast Retailing’s consolidated gross profit margin improved by 1.6 points year-on-year to 54.0% andthe selling, general and administrative expense ratio increased by 1.1 points year-on-year to 35.5%. In addition, under financeincome net of costs, we recorded a 14.8 billion yen foreign exchange gain on foreign-currency denominated financial assets andother items due to a depreciation in yen exchange rates over the quarter. As a result, first-quarter profit before income taxes rose
to 134.2 billion yen (+25.2% year-on-year) and profit attributable to owners of the parent increased to 93.5 billion yen (+33.0%
year-on-year). Thanks to the growing diversification of our global earnings pillars, Fast Retailing achieved a record first-quarter
consolidated performance in the first quarter of fiscal 2022.
As a united Group, we are determined to strengthen initiatives designed to expand our business operations and promotesustainability as part of our quest to become a global No.1 brand. We work hard to ensure our LifeWear ultimate everyday
clothing is produced in working environments that are healthy, safe, and environment conscious, and strive to help solve a variety
of social issues. We are currently channeling our efforts into expanding our e-commerce, UNIQLO International, and GU
businesses as key pillars of operational growth. With regards to e-commerce, we are accelerating the building of a framework thatwill promote our main business by melding online and physical stores so we can offer as many of the products and informationthat customers want, whenever they want them. We are already pressing ahead with reforms that will enable us to offer more
services that combine the strengths of our physical store and e-commerce network and unify inventory management. Regarding
UNIQLO International, we are accelerating the opening of new stores in all markets and areas in which we operate, and seeking
to instill deeper and more widespread empathy for UNIQLO’s LifeWear concept by opening global flagship stores and largeformat stores in the world’s major cities. In terms of our GU segment, we are working to strengthen GU’s position as a brand thatoffers fun fashion at amazingly low prices and seeking to expand the GU store network primarily in Japan.
UNIQLO Japan
UNIQLO Japan reported significant declines in revenue and profit in the first quarter of fiscal 2022, with revenue totaling 226.4
billion yen (−10.8% year-on-year) and operating profit totaling 48.7 billion yen (−18.8% year-on-year). First-quarter same-store
sales declined by 7.7% year-on-year. This performance was being compared to a strong result in the previous year when stay-athome demand and sales of AIRism masks were particularly buoyant. In addition, the large number of persistently warm days from
September through to the middle of October stifled sales of Fall Winter ranges. Sales of outerwear and thermal innerwear did
strengthen once the weather turned colder from the middle of October and sales exceeded previous year levels during our
UNIQLO anniversary sale in November, but, despite that, revenue for the first-quarter as a whole still declined year-on-year. Ecommerce sales declined slightly compared to the first quarter of fiscal 2021 with online sales totaling 36.6 billion yen (−0.2%
year-on-year). However, this figure represented an approximate 50% increase compared to the first quarter of fiscal 2020, so ecommerce is still trending on a favorable expansion track. UNIQLO Japan’s gross profit margin improved by 0.5 point as ourdetermination to restrict any tendency to offer excessive discounts improved discounting rates. The selling, general andadministrative expense ratio increased by 2.6 points following the decline in sales.

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4 －UNIQLO International
UNIQLO International reported a significant increase in both revenue and profit in the first quarter of fiscal 2022, with revenue
rising to 299.7 billion yen (+15.0% year-on-year) and operating profit expanding to 59.9 billion yen (+44.6% year-on-year). This
impressive UNIQLO International performance was fueled primarily by strong sales and large increases in both revenue andprofit at UNIQLO operations in the S/SE Asia & Oceania, North America, and Europe regions. Meanwhile, first-quarter revenue
declined marginally and first-quarter profit declined significantly for the Greater China region. Overall, UNIQLO International
generated a record performance in the first quarter as the segment’s earning pillars continued to diversify.
Breaking down the UNIQLO International performance into individual regions and markets, revenue declined and profit
contracted significantly in the Mainland China market. This was due to a weaker consumer appetite for apparel following thecontinued implementation of tough restrictions to control rising COVID-19 infections, and the fact that the operation was being
compared to a strong sales performance in the previous year. Meanwhile, the Hong Kong and Taiwan markets generated
significant increases in both revenue and profit and UNIQLO South Korea reported a rise in both revenue and profit. S/SE Asia &Oceania reported significantly higher revenue and profit as the region recovered the level of performance it had enjoyed two years
ago prior to COVID-19. UNIQLO USA generated a significant rise in revenue and moved into the black in the first quarter. Sales
were strong thanks to a partial recovery in travel demand and our concerted efforts to convey information and product news tostrengthen UNIQLO branding. UNIQLO Europe achieved significant increases in both revenue and profit as falling temperatures
and a rising consumer appetite for shopping created a buoyant sales environment and an increase in the number of registered ecommerce app members helped strengthen customer support for the UNIQLO brand.
GU
The GU business segment reported a decline in revenue and a considerable contraction in profit in the first quarter of fiscal 2022,with revenue falling to 69.8 billion yen (−8.7% year-on-year) and operating profit contracting to 8.9 billion yen (−34.5% year-onyear). First-quarter same-store sales declined as persistently warm weather stifled sales of Fall Winter items and delays inproduction and distribution also delayed the launch of Winter ranges. GU’s gross profit margin declined by 1.7 points after westrengthened discount sales to help rundown Fall inventory and as the sharp rises in raw materials prices and shipping costs
resulted in a slightly higher cost of sales. GU’s selling, general and administrative expense ratio increased by 3.2 points. However,this was due to a temporary increase in distribution costs linked to the launch of automated warehousing in Western Japan to help
expand e-commerce operations as well as stronger marketing to boost our brand recognition.
Global Brands
The Global Brands segment reported a rise in revenue and a move back into the black in the first quarter of fiscal 2022. The
segment generated revenue of 30.7 billion yen (+9.5% year-on-year) and an operating profit of 2.5 billion yen (compared to a 0.2
billion yen loss recorded in the first quarter of fiscal 2021). Our Theory operation generated strong increases in both revenue andprofit, thanks primarily to a recovery in performance and a move back into the black for Theory in the United States. PLST
reported a decline in both revenue and profit as that operation struggled to attract customers during the COVID-19-related state of
emergency in Japan. Our France-based Comptoir des Cotonniers operation reported higher revenue and a move back into theblack after we were able to avoid temporarily closing any stores due to COVID-19. Meanwhile, the permanent closure of
unprofitable stores and other structural reforms improved cost efficiencies.

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5 －Sustainability
Fast Retailing is promoting sustainability activities through its clothing business. At the "LifeWear=Sustainability" briefing heldin December 2021, we announced our initiatives geared toward achieving a sustainable society and business growth by 2030. We
are accelerating the shift to a new business model that adds environmental, human rights and social initiatives to our LifeWear
concept—the ultimate everyday clothing—, which is designed to make everyone's lives better.
Our sustainability activities focus on six clear material areas: Creating new value through products and services; Respecting
human rights in our supply chain; Respecting the environment; Strengthening communities; Supporting employee fulfillment and
Implementing good corporate governance. Our main activities for the current period involved:■ Respecting human rights in our supply chain: In September 2021, we signed the International Accord for Health and Safety in
the Garment and Textile Industry. This framework is the successor to the Accord on Fire and Building Safety in Bangladesh,which we signed in 2013. Under this agreement, we will continue our initiatives for ensuring the health and safety of workers in
Bangladesh. We are also continually improving our efforts to address human rights and labor issues throughout our entire supply
chain. We are pursuing traceability right up to the highest levels of procurement of raw materials, and we are moving forwardwith verifying working conditions at work sites through site visits by our employees, audits by third-party organizations, andthird-party certifications, etc.
■ Respecting the environment: In September 2021, we announced our goal of reducing greenhouse gas emissions from energy
used across company sites of operation, including stores and major offices, by 90% by FY2030 (compared to FY2019), reducing
emissions associated with raw material production, fabric production, and sewing of UNIQLO and GU products by 20%, andincreasing our company's renewable energy use to 100%. We have already completed a switch to renewable energy in all 67
UNIQLO stores in nine European countries (as of the end of November 2021), and we are also aiming to complete the switch insome North American and Southeast Asian countries by the end of this fiscal year. For raw materials, we also have a policy ofswitching approximately 50% of all raw materials used to materials that have very low greenhouse gas emissions, such as
recycled materials, by FY2030. In September 2021, we signed the Microfibre 2030 Commitment, an international initiative tominimize the impact of microfibers on the natural environment, and we are improving our efforts to eliminate environmental
damage caused by microfibers. We will conduct annual materials testing up until 2023, and we will take measures to reduce
microfibers in our products and in the process of their manufacture. We are committed to rolling out textile and apparel industry
best practices in this area.
■ Strengthening communities: To help Afghan refugees and other refugees and internally displaced persons throughout the world
to face the winter, we are donating approximately one million items of UNIQLO HEATTECH and outerwear winter clothing(equivalent to approximately JPY 1 billion) to the United Nations High Commissioner for Refugees (UNHCR). In response to arequest for assistance from the UNHCR, we will donate USD 800,000 (approximately JPY 92 million) to the UNHCR to provide
winter assistance to refugees from Afghanistan.
■ Supporting employee fulfillment: As we value the diversity of our employees, we have set a goal of achieving 50% female
representation among management positions by the end of FY2030 in order to promote a workplace environment that encourages
career development and allows employees to demonstrate their abilities to the fullest. In order to achieve this goal, we will
improve our development plans and medium-to-long-term career plans for female management candidates. In addition to careerdevelopment sessions and training (confidence training, skills training, etc.) with female managers serving as role models, wehave also set up a mentoring scheme as a means of offering support.

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6 －(ii) Financial Position
Total assets as at 30 November 2021 were 2.6587 trillion yen, which was an increase of 148.7 billion yen relative to the end of thepreceding fiscal year. The principal factors were an increase of 26.4 billion yen in cash and cash equivalents, an increase of 74.0
billion yen in trade and other receivables, an increase of 10.2 billion yen in inventories, an increase of 6.5 billion yen in othercurrent assets, an increase of 6.5 billion yen in property, plant and equipment, a decrease of 5.6 billion yen in deferred tax assets,
and an increase of 21.8 billion yen in derivative financial assets.
Total liabilities as at 30 November 2021 were 1.3938 trillion yen, which was an increase of 46.1 billion yen relative to the end of
the preceding fiscal year. The principal factors were an increase of 36.3 billion yen in trade and other payables, an increase of 6.8
billion yen in other current financial liabilities, a decrease of 1.7 billion yen in derivative financial liabilities, a decrease of 9.3
billion yen in current tax liabilities, an increase of 6.2 billion yen in other current liabilities, an increase of 3.5 billion yen in leaseliabilities, an increase of 1.7 billion yen in provisions, and an increase of 2.5 billion yen in deferred tax liabilities.
Total net assets as at 30 November 2021 were 1.2648 trillion yen, which was an increase of 102.5 billion yen relative to the end of
the preceding fiscal year. The principal factors were an increase of 69.1 billion yen in retained earnings, and an increase of 29.8
billion yen in other components of equity.
(2) Cash Flows Information
Cash and cash equivalents as at 30 November 2021 had increased by 26.4 billion yen from the end of the preceding fiscal year, to1.2041 trillion yen.
(Operating Cash Flows)
Net cash generated by operating activities for the three months ended 30 November 2021 was 84.4 billion yen, which was adecrease of 55.9 billion yen (-39.8% year-on-year) from the three months ended 30 November 2020. The principal factors were134.2 billion yen in profit before income taxes (an increase of 27.0 billion yen from the three months ended 30 November 2020),
43.9 billion yen in depreciation and amortization (a decrease of 0.6 billion yen from the three months ended 30 November 2020),
15.2 billion yen in foreign exchange gains (a decrease of 20.4 billion yen from the three months ended 30 November 2020), an
increase of 70.2 billion yen in trade and other receivables (a decrease of 17.7 billion yen from the three months ended 30
November 2020), an increase of 4.1 billion yen in inventories (a decrease of 19.2 billion yen from the three months ended 30
November 2020), an increase of 30.4 billion yen in trade and other payables (an increase of 9.9 billion yen from the three months
ended 30 November 2020), an increase of 9.5 billion yen in other assets (an increase of 0.5 billion yen from the three months
ended 30 November 2020), an increase of 17.1 billion yen in other liabilities (a decrease of 9.4 billion yen from the three months
ended 30 November 2020), and 42.4 billion yen in income taxes paid (a decrease of 20.5 billion yen from the three months ended
30 November 2020).
(Investing Cash Flows)
Net cash used in investing activities for the three months ended 30 November 2021 was 21.8 billion yen, which was an increaseof 2.5 billion yen (+13.2% year-on-year) from the three months ended 30 November 2020. The principal factors were a netincrease of 1.8 billion yen in bank deposits with original maturities of three months or longer (an increase of 3.1 billion yen fromthe three months ended 30 November 2020), 5.8 billion yen in payments for intangible assets (an increase of 2.5 billion yen fromthe three months ended 30 November 2020), no payments for investments in associates (a decrease of 4.2 billion yen from thethree months ended 30 November 2020 due to 4.2 billion yen in payments for the three months ended 30 November 2020), and 0
billion yen in payments for other investing activities (an increase of 1.4 billion yen from the three months ended 30 November2020).
(Financing Cash Flows)
Net cash used in financing activities for the three months ended 30 November 2021 was 65.1 billion yen, which was an increaseof 6.5 billion yen (+11.1% year-on-year) from the three months ended 30 November 2020. The principal factor was a net decreaseof 6.4 billion yen in short-term loans payable (an increase of 7.3 billion yen from the three months ended 30 November 2020).
(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.
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7 －(4) Operational and Financial Challenges to Address as Priority
There have been no significant challenges during the three months ended 30 November 2021 that must be addressed by the Group.
(5) Research and Development
Not applicable.
(6) Significant Facilities
The following are the significant facilities that were newly completed during the three months ended 30 November 2021.
<Subsidiaries in Japan>
Company name

Type of facility

Name of business

UNIQLO Japan
warehouses

Kobe DC
Warehouses

Japan
Hyogo

UNIQLO Japan

Ibaraki DC

Japanwarehouses

Warehouses

Osaka

Type of facility

Name of business

UNIQLO EUROPE LIMITEDUNIQLOInternational store

UNIQLO Rivoli

FranceParis

September 2021

UNIQLO TAIWAN LTD.

UNIQLOInternational store

UNIQLO Taipei

TaiwanTaipei

October 2021

FAST RETAILING (CHINA)UNIQLOTRADING CO., LTD

International store

UNIQLO CO., LTD.
UNIQLO CO., LTD.

Location

Completion date
September 2021
November 2021

<Overseas Subsidiaries>
Company nameUNIQLOBEIJINGSALITUN

Location

China
Beijing

Completion dateNovember 2021

The following are the significant facilities that were newly planned during the three months ended 30 November 2021.
<Subsidiaries in Japan>
Not applicable.
<Overseas Subsidiaries>
Company name
LLC UNIQLO (RUS)

Type of facility

Name of business

UNIQLOInternational store

UNIQLO
Moscow

3. Significant Contracts in Business Operation
None.

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8 －

Location
RussiaMoscow

Completion date
December 2021

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 2021

Number of shares issued
as at submission date
(As at 14 January 2022)

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

Remarks

First section of the Tokyo
Stock Exchange andCommon stock

106,073,656

106,073,656

the Main Board of
the Stock Exchange of

100 sharesas one unit

Hong Kong Limited(Note)
Total

106,073,656

106,073,656-(Note) Hong Kong Depositary Receipts are listed on the Main Board of the Stock Exchange of Hong Kong Limited.

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9 －

-

(2) Share Subscription Rights
1. Details of the Stock Option Program
The Company has instituted a stock option program that grants rights to acquire new shares pursuant to the Companies Act ofJapan. Share subscription rights issued in the three months ended 30 November 2021 are as follows:(i) 12th Share subscription rights A type
Resolution date

14 October 2021
Employees of the Company: 19

Class and number of recipients (Persons)

Employees of Group subsidiaries: 47

Number of stock options (Shares)

2,907

Type of shares to be issued upon exercise of sharesubscription rights

Common Stock

Number of shares to be issued upon exercise of sharesubscription rights (Shares)

2,907

Amount to be paid upon exercise of share subscription rights

Number of shares allocated times 1 yen exercise price per(Yen)share for all shares to be obtained through exercise of theshare subscription rights.

Exercise period of share subscription rights

From 12 November 2024
to 11 November 2031

Fair value on the grant date and amount of paid-in capital per

Issue price: 73,173

share upon exercise of share subscription rights (Yen)

Paid-in capital: 36,587
If a holder of share subscription rights waives the right toExercise conditions of share subscription rights

acquire shares, the share subscription rights shall be forfeited
and may not be exercised.
Any acquisition of share subscription rights by transfer shallMatters pertaining to transfer of share subscription rights

require an authorizing resolution from the Board of Directors.

Matters pertaining to issuing of share subscription rights in(Notes)conjunction with reorganization*The above information is disclosed as at the date of issuing share subscription rights (12 November 2021).
(Notes) Upon any reorganization of the Company (collectively referred to as “Reorganization”) consisting of a merger (limited tocases where the Company becomes extinct thereby), absorption-type company split or incorporation-type company split (ineach event, limited to cases where the Company is the entity resulting from the company split), or exchange or transfer ofshares (in each event, limited to cases where the Company becomes a wholly owned subsidiary), parties holding sharesubscription rights in existence immediately preceding the effective date of such Reorganization (hereinafter referred to as“Outstanding Share Subscription Rights”) shall, in each applicable case, be issued share subscription rights for shares of theresulting company as prescribed in Article 236 (1) viii of the Companies Act of Japan (hereinafter referred to as the “Company
Resulting From Reorganization”). In such event, any Outstanding Share Subscription Rights shall lapse and the Company
Resulting From Reorganization shall issue new share subscription rights; however, provided that terms and conditions
stipulating that the Company Resulting From Reorganization shall issue share subscription rights that prescribe the mattersstated below shall be included in any absorption merger agreement, new merger agreement, absorption-type company split
agreement, incorporation-type company split plan, share exchange agreement or transfer of shares plan.
1. Number of share subscription rights to be issued by the Company Resulting From Reorganization: Each holder of
Outstanding Share Subscription Rights shall be issued the same number thereof.
2. Type of shares of the Company Resulting From Reorganization underlying the share subscription rights: Common stock of
the Company Resulting From Reorganization.
3. Number of shares of the Company Resulting From Reorganization underlying the share subscription rights:
A proposal stating the conditions for Reorganization and the like shall include a finalized statement of the type and numberof shares underlying the above-mentioned share subscription rights.

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10 －

4. Value of property to be incorporated upon exercise of the share subscription rights:
The value of property to be incorporated upon exercise of share subscription rights that are issued shall be the amountobtained by multiplying the exercise price after reorganization prescribed below by the number of shares of the Company
Resulting From Reorganization underlying the share subscription rights that have been finalized as stated in No. 3. above.
The exercise price after Reorganization shall be 1 yen per share of the Company Resulting From Reorganization that can beissued upon exercise of each share subscription right that is issued.
5. Period during which share subscription rights can be exercised:
The period from the later of either the first day of the period during which share subscription rights can be exercised asprescribed above or the day on which a Reorganization takes effect through the final day of the period during which sharesubscription rights can be exercised as prescribed above.
6. Matters pertaining to the increase of capital and capital reserve resulting from the issuance of shares upon exercise of theshare subscription rights:
To be determined in order to align with the conditions applicable to the subject share subscription rights.
7. Restrictions on acquisition of share subscription rights by transfer:Any acquisition of share subscription rights by transfer shall require an authorizing resolution from the Board of Directorsof the Company Resulting From Reorganization.
8. Terms and conditions for acquisition of share subscription rights:
To be determined in order to align with the conditions applicable to the subject share subscription rights.
9. Conditions for exercise of share subscription rights:
To be determined in order to align with the conditions applicable to the subject share subscription rights.

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11 －

(ii) 12th Share subscription rights B type
Resolution date

14 October 2021

Class and number of recipients (Persons)

Employees of the Company: 736
Employees of Group subsidiaries: 1,521

Number of stock options (Shares)

30,757

Type of shares to be issued upon exercise of share

Common Stocksubscription rights
Number of shares to be issued upon exercise of share

30,757

subscription rights (Shares)
Amount to be paid upon exercise of share subscription rights(Yen)

Number of shares allocated times 1 yen exercise price pershare for all shares to be obtained through exercise of theshare subscription rights.
From 12 December 2021

Exercise period of share subscription rights

to 11 November 2031

Fair value on the grant date and amount of paid-in capital per
share upon exercise of share subscription rights (Yen)

Issue price: 73,849
Paid-in capital: 36,925

Exercise conditions of share subscription rights

If a holder of share subscription rights waives the right toacquire shares, the share subscription rights shall be forfeited
and may not be exercised.

Matters pertaining to transfer of share subscription rights

Any acquisition of share subscription rights by transfer shallrequire an authorizing resolution from the Board of Directors.

Matters pertaining to issuing of share subscription rights inconjunction with reorganization(Notes)*The above information is disclosed as at the date of issuing share subscription rights (12 November 2021).
(Notes) Upon any reorganization of the Company (collectively referred to as “Reorganization”) consisting of merger (limited to cases
where the Company becomes extinct thereby), absorption-type company split or incorporation-type company split (in each
event, limited to cases where the Company is the entity resulting from the company split), or exchange or transfer of shares (ineach event, limited to cases where the Company becomes a wholly owned subsidiary), parties holding share subscription
rights in existence immediately preceding the effective date of such Reorganization (hereinafter referred to as “Outstanding
Share Subscription Rights”) shall, in each applicable case, be issued share subscription rights for shares of the resulting
company as prescribed in Article 236 (1) viii of the Companies Act of Japan (hereinafter referred to as the “Company
Resulting From Reorganization”). In such event, any Outstanding Share Subscription Rights shall lapse and the Company
Resulting From Reorganization shall issue new share subscription rights; however provided terms and conditions stipulatingthat the Company Resulting From Reorganization shall issue share subscription rights that prescribe the matters stated below
shall be included in any absorption merger agreement, new merger agreement, absorption-type company split agreement,
incorporation-type company split plan, share exchange agreement or transfer of shares plan.
1. Number of share subscription rights to be issued by the Company Resulting From Reorganization: Each holder of
Outstanding Share Subscription Rights shall be issued the same number thereof.
2. Type of shares of the Company Resulting from Reorganization underlying the share subscription rights: Common stock of
the Company Resulting From Reorganization.
3. Number of shares of the Company Resulting from Reorganization underlying the share subscription rights:
A proposal stating the conditions for Reorganization and the like shall include a finalized statement of the type and numberof shares underlying the above-mentioned share subscription rights.
4. Value of property to be incorporated upon exercise of the share subscription rights:
The value of property to be incorporated upon exercise of share subscription rights that are issued shall be the amountobtained by multiplying the exercise price after reorganization prescribed below by the number of shares of the Company
Resulting From Reorganization underlying the share subscription rights that have been finalized as stated in No. 3. above.
The exercise price after Reorganization shall be 1 yen per share of the Company Resulting From Reorganization that can beissued upon exercise of each share subscription right that is issued.

－

12 －

5. Period during which share subscription rights can be exercised:
The period from the later of either the first day of the period during which share subscription rights can be exercised asprescribed above or the day on which a Reorganization takes effect through the final day of the period during which sharesubscription rights can be exercised as prescribed above.
6. Matters pertaining to the increase of capital and capital reserve resulting from the issuance of shares upon exercise of theshare subscription rights:
To be determined in order to align with the conditions applicable to the subject share subscription rights.
7. Restrictions on acquisition of share subscription rights by transfer:Any acquisition of share subscription rights by transfer shall require an authorizing resolution from the Board of Directorsof the Company Resulting From Reorganization.
8. Terms and conditions for acquisition of share subscription rights:
To be determined in order to align with the conditions applicable to the subject share subscription rights.
9. Conditions for exercise of share subscription rights:
To be determined in order to align with the conditions applicable to the subject share subscription rights.

－

13 －

(iii) 12th Share subscription rights C type
Resolution date

14 October 2021

Class and number of recipients (Persons)

Employees of the Company: 39

Number of stock options (Shares)

3,108Type of shares to be issued upon exercise of sharesubscription rights

Common Stock

Number of shares to be issued upon exercise of share

3,108

subscription rights (Shares)
Amount to be paid upon exercise of share subscription rights(Yen)

Number of shares allocated times 1 yen exercise price pershare for all shares to be obtained through exercise of theshare subscription rights.

Exercise period of share subscription rights

12 November 2024

Fair value on the grant date and amount of paid-in capital per
share upon exercise of share subscription rights (Yen)

Issue price: 74,804
Paid-in capital: 37,402
If a holder of share subscription rights waives the right toExercise conditions of share subscription rights

acquire shares, the share subscription rights shall be forfeited
and may not be exercised.
Any acquisition of share subscription rights by transfer shallrequire an authorizing resolution from the Board of Directors.

Matters pertaining to transfer of share subscription rights
Matters pertaining to issuing of share subscription rights in(Notes)conjunction with reorganization*The above information is disclosed as at the date of issuing share subscription rights (12 November 2021).
(Notes) Upon any reorganization of the Company (collectively referred to as “Reorganization”) consisting of merger (limited to cases
where the Company becomes extinct thereby), absorption-type company split or incorporation-type company split (in each
event, limited to cases where the Company is the entity resulting from the company split), or exchange or transfer of shares (ineach event, limited to cases where the Company becomes a wholly owned subsidiary), parties holding share subscription
rights in existence immediately preceding the effective date of such Reorganization (hereinafter referred to as “Outstanding
Share Subscription Rights”) shall, in each applicable case, be issued share subscription rights for shares of the resulting
company as prescribed in Article 236 (1) viii of the Companies Act of Japan (hereinafter referred to as the “Company
Resulting From Reorganization”). In such event, any Outstanding Share Subscription Rights shall lapse and the Company
Resulting From Reorganization shall issue new share subscription rights; however provided that terms and conditions
stipulating that the Company Resulting From Reorganization shall issue share subscription rights that prescribe the mattersstated below shall be included in any absorption merger agreement, new merger agreement, absorption-type company split
agreement, incorporation-type company split plan, share exchange agreement or transfer of shares plan.
1. Number of share subscription rights to be issued by the Company Resulting From Reorganization: Each holder of
Outstanding Share Subscription Rights shall be issued the same number thereof.
2. Type of shares of the Company Resulting From Reorganization underlying the share subscription rights: Common stock of
the Company Resulting From Reorganization.
3. Number of shares of the Company Resulting From Reorganization underlying the share subscription rights:
A proposal stating the conditions for Reorganization and the like shall include a finalized statement of the type and numberof shares underlying the above-mentioned share subscription rights.
4. Value of property to be incorporated upon exercise of the share subscription rights:
The value of property to be incorporated upon exercise of share subscription rights that are issued shall be the amountobtained by multiplying the exercise price after reorganization prescribed below by the number of shares of the Company
Resulting From Reorganization underlying the share subscription rights that have been finalized as stated in No. 3. above.
The exercise price after Reorganization shall be 1 yen per share of the Company Resulting From Reorganization that can beissued upon exercise of each share subscription right that is issued.

－

14 －

5. Period during which share subscription rights can be exercised:
The period from the later of either the day on which share subscription rights can be exercised as prescribed above or the
day on which a Reorganization takes effect.
6. Matters pertaining to the increase of capital and capital reserve resulting from the issuance of shares upon exercise of theshare subscription rights:
To be determined in order to align with the conditions applicable to the subject share subscription rights.
7. Restrictions on acquisition of share subscription rights by transfer:Any acquisition of share subscription rights by transfer shall require an authorizing resolution from the Board of Directorsof the Company Resulting From Reorganization.
8. Terms and conditions for acquisition of share subscription rights:
To be determined in order to align with the conditions applicable to the subject share subscription rights.
9. Conditions for exercise of share subscription rights:
To be determined in order to align with the conditions applicable to the subject share subscription rights.
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/
Increase/
Balance of(decrease) of(decrease) of
total
Date
capital stock
total number of
number of(Millions ofshares issued
shares issued
yen)

Balance ofcapital stock(Millions ofyen)

Increase/(decrease) ofcapital reserve(Millions ofyen)

Balance ofcapital reserve(Millions ofyen)

10,273-

4,578

1 September 2021
to30 November 2021-

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 2021.
(5) Major Shareholders
There are no items to disclose, as the accounting period under review is the first quarter accounting period.

－

15 －

(6) Voting Rights
Concerning “Voting Rights” as at the end of the three months ended 30 November 2021, 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 2021).
(i) Shares issued
As at 30 November 2021
Class

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

treasury stock)
Common stock
3,928,900

Shares with full voting rights

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

1,020,633

102,063,300
Common stock

Shares less than one unit

81,456

Total number of shares issued

106,073,656

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

1,020,633-(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 85 shares of treasury stock held by the Company.
(ii) Treasury Stock

Name or trade name ofholderFAST RETAILING
CO., LTD.

Holder’s address

Number ofshares held in
own name

Number ofshares held inother’s name

As at 30 November 2021
Percentage ofTotal number of
total number ofshares held
shares issued(%)

10717-1 Sayama
Yamaguchi-shi
Yamaguchi

Total

-

3,928,900-

3,928,900

3.70

3,928,900-

3,928,900

3.70

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 2021.

－

16 －

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 2021, 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 compliance 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.

－

17 －

(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 2021

As at 30 November 2021

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

1,177,736
50,546

1,204,173
124,57114
656,157394,868

61,404405,103

14

27,1032,992

35,601
1,603

15,27021,7891,724,674

1,854,247

168,177
390,537

174,721395,505

8,092
66,9398,092
68,61067,122

66,13818,236

18,242

37,12531,45522,5526,520

35,888
5,822

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

785,302804,475

2,509,976

2,658,723

220,057
104,969

256,433
111,861

2,493
117,083

1,125
118,836

38,606
2,149

29,233
2,099

95,652

101,862

581,012621,452

370,799
343,574

370,837
345,368

39,046
9,860

40,824
12,447

1,042
2,342

644
2,274

Liabilities and equity
LIABILITIESCurrent liabilities
Trade and other payables
14

Other financial liabilities
Derivative financial liabilities

14

Lease liabilities
Current tax liabilities
Provisions
Other liabilities
Total current liabilities
Non-current liabilities
Financial liabilities

14

Lease liabilities
Provisions
Deferred tax liabilities
Derivative financial liabilities

14

Other liabilities
Total non-current liabilities
Total liabilities

－

18 －

766,665

772,397

1,347,678

1,393,849

(Millions of yen)Notes

As at 31 August 2021

As at 30 November 2021

EQUITY
Capital stock
Capital surplus
Retained earnings
Treasury stock, at cost

10,27325,36010,273
27,667

1,054,791(14,973)

1,123,899(14,917)

41,031

70,833Equity attributable to owners of the Parent
Non-controlling interests

1,116,484
45,8131,217,757
47,116

Total equity

1,162,298

1,264,873

2,509,976

2,658,723

Other components of equity

Total liabilities and equity

－

19 －

(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 2021
(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 2020Three months ended
30 November 2021

619,797

627,391(294,976)(288,765)

324,821(213,245)

338,626(222,451)

2,216
(913)

3,687
(887)

215

432

113,094
1,051

119,406
16,522(6,980)(1,721)

Profit before income taxes
Income tax expense

107,164(34,672)

134,208(36,588)

Profit for the period

72,492

97,619Profit for the period attributable to:
Owners of the Parent

70,381

93,592

Non-controlling interests

2,111

4,027

Total

72,492

97,619689.29916.21

688.17914.87

Earnings per share
Basic (yen)13
13

Diluted (yen)

－

20 －

Interim Condensed Consolidated Statement of Comprehensive Income
Three months ended 30 November 2021
(Millions of yen)Three months ended
30 November 2020Three months ended
30 November 2021

72,492

97,619

337

(58)

337

(58)

6,447

16,022(11,649)

18,71313

2(5,189)34,738(4,851)

34,67967,641

132,299

Owners of the Parent
Non-controlling interests

65,117
2,523

127,152
5,147

Total comprehensive income for the period

67,641

132,299

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
Exchange differences on translating
foreign operations
Cash flow hedges
Share of other comprehensive
income / (loss) of associates
Total items that may be reclassified subsequently to
profit or loss
Other comprehensive income / (loss), net of income tax
Total comprehensive income for the period
Attributable to:

－

21 －

(3) Interim Condensed Consolidated Statement of Changes in Equity
For the three months ended 30 November 2020
(Millions of yen)
Other components of equity

Note

As at 1 September 2020

Capitalstock

CapitalsurplusRetainedearnings

Treasurystock, atcost

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

10,27323,365

933,303(15,129)

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

70,381

-

-

-

-

-

-

-

-

-

337

5,245

(10,860)

13

Total comprehensive income--

70,381

-

337

5,245

(10,860)

13

-

474
1,320

(24,504)
-

(2)
57
-

-

-

-

-

-

-

-

-

-

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
Total transactions with theowners of the Parent
Total net changes during the period
As at 30 November 2020

8385

(8,489)12,905(51)

Equityattributable
Nonto owners controllingof theinterests
Parent

Total

4,749

Total
equity956,562

39,516

996,079-

70,381

2,111

72,492(5,263)(5,263)412(4,851)(5,263)

65,117

2,523

67,641

-

-

(2)
532
(24,504)
1,320

-

(2)
532
(24,504)
1,320(1,955)-(1,955)(1,955)(86)(2,041)

-

-

581

-

(581)

-

-

-

(581)

-

-

-

-

1,794

(23,922)

55

(581)

-

(1,955)-(2,536)(24,609)(86)(24,696)-

1,794

46,458

55

(243)

5,245

(12,815)

13(7,799)40,5082,437

42,945

10,27325,159979,761(15,074)

141(3,244)89(37)(3,050)997,071

41,953

1,039,025－

22 －For the three months ended 30 November 2021
(Millions of yen)
Other components of equity

Note

As at 1 September 2021
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 2021

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

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

271

9,855

30,89013

41,031

1,116,484

45,813

1,162,298--

93,592

-

-

-

-

-

-

93,592

4,027

97,619

-

-

-

-

(58)

15,203

18,412

2

33,56033,5601,119

34,679--93,592-(58)

15,203

18,412

2

33,560127,152

5,147

132,299

-

568
1,738

(24,514)
-

(3)
59
-

-

-

-

-

-

(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)

-

-

-

(30)

-

-

-

-

-

-

-

-

-

-

-

-

-

402

402

-

2,306

(24,483)

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

－

23 －

Total

Total
equity(4) Interim Condensed Consolidated Statement of Cash Flows(Millions of yen)Three months ended
30 November 2020Three months ended
30 November 2021

Cash flows from operating activities
Profit before income taxes

107,164

134,208

Depreciation and amortization
Impairment losses

44,565132

43,92098

Interest and dividend income
Interest expenses(1,043)
1,812(1,221)
1,673

Foreign exchange losses / (gains)Share of profit and loss of associates accounted for using

5,160(15,252)

(215)

(432)

Note

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

96

247

(Increase) / Decrease in trade and other receivables(Increase) / Decrease in inventories(52,415)
15,188(70,202)(4,103)

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

20,554(10,170)

30,473(9,597)

Increase / (Decrease) in other liabilities
Others, net

26,617
4,928

17,180(147)

Cash generated from operations

162,376

126,844

Interest and dividends income received
Interest paid

928
(1,048)1,085(1,043)

Income taxes paid

(21,922)(42,467)

Net cash generated by operating activities

140,334

84,419(23,614)(30,033)

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

24,932

28,175(14,211)(14,174)

Payments for intangible assets
Payments for acquisition of right-of-use assets(3,257)(245)(5,832)(232)

Payments for lease and guarantee deposits
Proceeds from collection of lease and guarantee deposits

(863)
796

(1,163)
1,508

Payments for acquisition of investments in associates
Others, net(4,232)
1,398

(86)

Net cash generated by / (used in) investing activities(19,296)(21,838)－

24 －(Millions of yen)
Note

Three months ended
30 November 2020Three months ended
30 November 2021

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

24,483

7,699

Repayment of short-term loans payable
Dividends paid to owners of the Parent(23,539)(24,478)(14,113)(24,515)

Repayments of lease liabilities
Others, net(35,176)
55(34,707)479

Net cash generated by / (used in) financing activities(58,655)(65,157)(1,306)29,0138

Effect of exchange rate changes on the balance of cash held
in foreign currencies
Net increase in cash and cash equivalents

61,07626,437

Cash and cash equivalents at the beginning of period

1,093,531

1,177,736

Cash and cash equivalents at the end of period

1,154,607

1,204,173－

25 －Notes to the Interim Condensed Consolidated Financial Statements
1. Reporting Entity
FAST RETAILING CO., LTD. is a company incorporated in Japan. The locations of the registered headquarters and principal
offices of the Company are disclosed on the Group’s website (http://www.fastretailing.com/eng/).
The principal activities of the Company and its consolidated subsidiaries are the operations of the UNIQLO business (i.e., casualclothing retail business operating under the “UNIQLO” brand in Japan and overseas), GU business (i.e., casual clothing retailbusiness operating under the “GU” brand in Japan and overseas), Theory business (i.e., apparel design and retail business in Japanand overseas), and other businesses.
2. Basis of Preparation
The interim condensed consolidated financial statements have been prepared in compliance with IAS 34. The Group meets all of
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 2021.
The interim condensed consolidated financial statements were approved on 13 January 2022 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 2021 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.
With the global spread of COVID-19, the Group's performance has been adversely affected due to temporarily closing stores, etc.
While the spread of COVID-19, and the timing for the situation subsiding differs from region to region and on a case-by-case basis,
we made accounting estimates involving the assumption that the impact will last until the end of August 2022 for most countries
and regions including Japan, with the situation taking longer to get under control for stores in certain other countries and regions.
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.

－

26 －

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
For J Brand Inc, which had been included in Global Brands operations for the three months ended 30 November 2020, thecorporate liquidation proceedings has been completed on 5 August 2021.
(ii) Segment revenue and results
For the three months ended 30 November 2020
(Millions of yen)
Reportable segments
Total

28,068619,064

732-

619,797

13,604(222)

114,885(17)(1,774)

113,094

13,495(345)

113,690(17)(6,508)107,164

UNIQLOJapan

UNIQLOInternational

GU

GlobalBrands

Revenue

253,851

260,630

76,514

Operating profit/(loss)

60,083

41,42059,79640,744

Segment income/(loss)(i.e., profit/ losses
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 2021
(Millions of yen)
Reportable segments
Total

30,721

626,731660-

627,391

8,910

2,540

120,14918(760)

119,406

9,093

2,443

121,1270

13,079134,208

UNIQLOJapan

UNIQLOInternational

GU

GlobalBrands

Revenue

226,449

299,723

69,837

Operating profit/(loss)

48,78959,90949,756

59,834

Segment income/(loss)(i.e., profit/ losses
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.

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

－

27 －

Three months ended
30 November 2020Three months ended
30 November 2021

2,710

2,273

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 2021

As at
30 November 2021

Buildings and structures

116,120

120,479

Machinery and equipment

11,21623,015

Furniture, fixtures and vehicles

20,553

22,370

Land

1,927

1,927

Construction in progress

18,358

6,927

168,177

174,721

Total dividends(Millions of yen)

Dividends per share(Yen)

24,504240

Total

8. Dividends
The total amount of dividends paid was as follows:
For the three months ended 30 November 2020
Resolution
Meeting of the Board on 4 November 2020

Dividends were declared on 4 November 2020 and paid on 6 November 2020. The effective date of the dividend was forshareholders as at 31 August 2020.
For the three months ended 30 November 2021
Resolution
Meeting of the Board on 2 November 2021

Total dividends(Millions of yen)

Dividends per share(Yen)

24,514240

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.

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28 －

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 2020
Revenue(Millions of yen)

Percent of Total
(%)

Japan

253,851

41.0

Greater China

152,861

24.7

Other parts of Asia & Oceania

54,4398.8

North America & Europe

53,329

8.6

UNIQLO (Note 1)

514,482

83.0

GU (Note 2)

76,514

12.3

Global Brands (Note 3)

28,068

4.5

732

0.1

619,797

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.

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29 －

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

Percent 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.

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 2020Three months ended
30 November 2021

Advertising and promotion

19,26021,863

Lease expenses

18,377

20,100Depreciation and amortization

44,56543,920Outsourcing

11,603

13,594

Salaries

72,30173,847

Distribution

26,18926,272Others

20,94822,853

213,245

222,451

Selling, general and administrative expenses

Total

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30 －

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 2020Three months ended
30 November 2021

1,332

1,396

884

2,291

2,216

3,687

Other income
Foreign exchange gains (Note)
Others
Total(Millions of yen)Three months ended
30 November 2020Three months ended
30 November 2021

Loss on retirement of property, plant and equipment

96

247

Impairment losses

132

98

Others

684

541

913

887

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 2020Three months ended
30 November 2021-

15,252

1,035

1,211

16

58

1,051

16,522Finance income
Foreign exchange gains (Note)
Interest income
Others
Total(Millions of yen)Three months ended
30 November 2020Three months ended
30 November 2021

Foreign exchange losses (Note)

5,160

-

Interest expenses

1,812

1,673

7

48

6,980

1,721

Finance costs

Others
Total(Note) Currency adjustments incurred in the course of non-operating transactions are included in “Finance income” and "Financecosts".

－

31 －13. Earnings per ShareThree months ended 30 November 2020
Equity per share attributable to ownersof the Parent (Yen)Three months ended 30 November 2021
Equity per share attributable to ownersof the Parent (Yen)9,764.13

11,920.08

Basic earnings per share (Yen)

689.29Basic earnings per share (Yen)916.21

Diluted earnings per share (Yen)

688.17

Diluted earnings per share (Yen)914.87(Note) The basis for calculation of basic earnings per share and diluted earnings per share is as follows:
Three months ended
30 November 2020Three months ended
30 November 2021

70,381

93,592--70,381

93,592102,106,878

102,151,077--

Increase in number of common stock (Shares)

166,859

149,595(Number of share subscription rights included in increase)(166,859)(149,595)

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 2021

As at 30 November 2021

Carrying
amounts

Fair value

Carrying
amounts

Fair value

64,50265,35864,61065,46964,50265,35864,61065,469369,471375,144369,500

374,311369,471375,144369,500

374,311

Financial assets
Security deposits and guarantees
Total
Financial liabilities
Corporate bonds
Total

Notes concerning financial assets and financial liabilities for which carrying amount approximates the fair value have been omitted.
The fair value of security deposits and guarantees is calculated on the basis of the present value, applying the current market interest
rate.
The fair value of corporate bonds is calculated with reference to publicly available market prices.
The fair value measurements of corporate bonds and security deposits and guarantees are classified as Level 2.

－

32 －

The following tables illustrate the fair value measurement hierarchy of the Group’s financial instruments. All assets and liabilities
for which fair value is measured or disclosed in the interim condensed financial statements are categorized within the fair value
hierarchy based on the following characteristics:
Level 1 - based on quoted prices (unadjusted) in active markets for identical assets or liabilities
Level 2 - based on valuation techniques for which the lowest level input that is significant to the fair value measurement isobservable, either directly or indirectly
Level 3 - based on valuation techniques for which the lowest level input that is significant to the fair value measurement isunobservable
When multiple inputs are used to measure fair value, the fair value level is determined based on the input with the lowest levelclassification in the overall fair value assessment.
The following tables illustrate the fair value measurement hierarchy of the Group’s financial instruments:(Millions of yen)
As at 31 August 2021

Level 1

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

Level 3

Total

808

-

199

1,008

-

(71)

-

(71)

-

46,190-46,190808

46,118

199

47,127

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 2021

Level 1

Level 2

Level 3

Total

Financial assets measured at fair value throughother comprehensive income

596

-

199

796

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

-

(125)

-

(125)

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

69,845-69,845

Fair value

596

69,719199

70,515For the valuation of Level 2 derivative financial instruments for which a market value is available, we use a valuation model thatuses observable data on the measurement date using inputs such as interest rates, yield curves, currency rates and volatility incomparable instruments.
Financial instruments classified as Level 3 consist mainly of unlisted shares. The fair values of unlisted shares are measured by thedivision responsible in the Group according to the Group’s accounting policy, etc., using the immediately preceding figuresavailable for each quarter.
There were no significant changes due to the purchase, sale, issuance and settlement of Level 3 financial instruments, and notransfers between Levels 1, 2 and 3.

－

33 －

15. Commitments for Expenditures
The Group had the following commitments at each reporting date:(Millions of yen)
As at
31 August 2021

As at
30 November 2021

Commitment for the acquisition of property, plant and equipment

21,492

17,971

Commitment for the acquisition of intangible assets

1,487

3,152

22,97921,123Total

16. Subsequent Events
Not applicable.

－

34 －

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

－

35 －

(TRANSLATION)
INDEPENDENT ACCOUNTANT’S REVIEW REPORT
14 January, 2022
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 have reviewed the interim
condensed consolidated financial statements of FAST RETAILING CO., LTD. and its consolidated subsidiaries (the "Group") includedin the Financial Section, namely, the interim condensed consolidated statement of financial position as at 30 November 2021, theinterim condensed consolidated statement of profit or loss and interim condensed consolidated statement of comprehensive income forthe three-month period then ended, the interim condensed consolidated statement of changes in equity and the interim condensed
consolidated statement of cash flows for the three-month period then ended, and the related notes.
Based on our review, nothing has come to our attention that causes us to believe that the accompanying interim condensed
consolidated financial statements do not present fairly, in all material respects, the consolidated financial position of the Group as at 30
November 2021, and its consolidated financial performance for the three-month period then ended and its consolidated cash flows forthe 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 thosestandards is further described in the Accountant's Responsibility for the Review of the Interim Condensed Consolidated Financial
Statements section of our report. We are independent of the Group in accordance with the provisions of the Code of Professional
Ethics in Japan, and we have fulfilled our other ethical responsibilities as accountants. We believe that we have obtained the evidence
to provide a basis for our review conclusion.
Responsibilities of Management and Statutory Auditors and the Board of Statutory Auditors for the Interim Condensed
Consolidated Financial Statements
Management is responsible for the preparation and fair presentation of the interim condensed consolidated financial statements inaccordance with IAS 34, and for such internal control as management determines is necessary to enable the preparation of interim
condensed consolidated financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the interim condensed consolidated financial statements, management is responsible for assessing the Group's ability tocontinue as a going concern, disclosing, as applicable, matters related to going concern in accordance with paragraph 4 of IAS 1"Presentation of Financial Statements" (“IAS 1”).
Statutory Auditors and the Board of Statutory Auditors are responsible for overseeing the Directors' execution of duties relating to thedesign and operating effectiveness of the controls over the Group's financial reporting process.

－

36 －

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

－37 －