3

RYOHIN KEIKAKU CO., LTD.

About MUJI REPORTThis report is intended to lead to dialogue with stakeholders by presenting goals for medium- to long-term value creation,
management policies, business conditions, and other financial and non-financial information based on the philosophy andmission of Ryohin Keikaku, which is aiming to help create “a truthful and sustainable life for all.”Information Resources
Non-Financial Information

Financial Information

MUJI REPORT
Information on medium- to long-term value creation
Securities Report(Japanese only)

Consolidated
Financial ResultsInvestor Relations(website)

Sustainability (website)
https://ryohin-keikaku.jp/eng/sustainability/

https://ryohin-keikaku.jp/eng/ir/

Contents
Introduction

Our Philosophy

3

Our History

5

Toward “a Truthful and Sustainable Lifefor All”

Enhancing Our
Corporate ValueBusiness Strategies
Material Issue 1:
Build a Sustainable andCircular Society That
Coexists with Nature

7

Financial and Non-Financial Highlights

9

Global Network

11

Message from the Chairman

13

The Value We Create

15

Ryohin Keikaku and Sustainability

17

Message from the President

19

Our Goals and How We Will Achieve Them

25

Feature 1: Overseas Growth Potential

27

Feature 2: Changes in Our People and Stores

29

Feature 3: An IT Strategy Aimed at Realizing
Comfortable Online Services

31

Feature 4: Strengthening Our Earning Power35

Ryohin Keikaku’s Business Strategies

37

Ryohin Keikaku’s Unique ProductDevelopment

39

Apparel41

Household Goods

42

Food

43

Overseas Product Development

44

Supply Chain Management

45

Raw Material Procurement

47

Recovery and Recycling Initiatives

48

Caring for the Environment

49

Climate Change

50

Material Issue 2:
Address Local
Challenges andRevitalize Regions

Store Strategy

51Interview with a General Manager

53

Sustainable Community Design

55

Material Issue 3:
Practice Business
Activities in Which Eachand Every Diverse
Individual Plays aLeading Role

Human Resource Development

57

Initiatives for Diversity & Inclusion

59

Material Issue 4:
Realize GovernanceAligned with Public
Interest and PeopleCentered Management

Working toward “Public Interest andPeople-Centered Management”

61

Directors and Corporate Auditors

63

Corporate Governance

65

Messages from Outside Officers

69

Message from an Outside CorporateAuditor

71

Risk Management and Compliance72

11-Year Summary75

ESG Data

77

Stock Information

79

Corporate Information

80

Basic Information

Scope of This Report Consolidated subsidiaries and consolidated companies of Ryohin Keikaku Co., Ltd.
Period Covered

Fiscal year ended August 2023 (September 1, 2022 to August 31, 2023)
Note: Information outside this period is reported when it is appropriate to show past events and data or recent examples. In this report, amounts and number ofshares that are less than one unit are rounded down, and all ratios and percentages are rounded to the nearest whole number.

Forward-Looking Statements
This report contains forward-looking statements and projections. These statements and projections are based on the Company’s judgments at the time the report wasproduced, and include risks and uncertainties. Changes in various factors could cause actual results to differ materially from forward-looking statements and projections
contained herein.
MUJI REPORT 2023

2Our Philosophy
Our Corporate Purpose
Our corporate purpose is to contribute to the creation of “a truthful andsustainable life for all through our products, services, stores and businessactivities; believing human society rich in heart, with balanced relationshipbetween human, nature and artifacts.”

Our Two Missions
1. T o provide daily necessities and services with genuine quality andethical value, at appropriate and affordable prices.
2. T o have a positive impact on each region by operating stores thatserve as community centers, sharing concerns and values with local
residents and collaborating with them to tackle local issues.

Our Core Value
We make efforts to reduce our environmental burden and to respectindividual human rights through our product development, services andactions. Through our core value of “contributing to society and people”
our employees and associates will proactively respond to issues facing
society and the Earth.

Our Management Policy
We will practice “public interest and people-centered management,”
where each of our employees and associates contribute to the public
interest through our business activities and locally rooted stores, havea sense of ownership and take leading roles in the community.

Enhancing Our Corporate Value
Through our activities, we will create a highly profitable business structure, pay
taxes properly and return profits to shareholders appropriately. Furthermore,
we will strive to create long-term value for the Company by making a
positive impact on society together with stakeholders.

MUJI Tsubame

3 MUJI REPORT 2023

MUJI REPORT 2023

4Introduction

Introduction

Our History
Ryohin Keikaku’s “Grand Strategy” is to realize “a truthful and sustainable life for all.” Our “Grand Strategy” defines who weare—being useful to people and society. Of course, as a business enterprise, profit is also important, but our top priority is
this “Grand Strategy.” Ryohin Keikaku has been working since its founding to make a contribution wherever it can help
with social issues and people’s concerns. This approach has led to the Ryohin Keikaku of today.

2001-2015

1980-2000

2016-2020

2021-

Redefining the value of goods

The relationship between life and goods

A truthful and sustainable life

“A truthful and sustainable life for all,” and beyond

We aimed to minimize unnecessary elements and create
products that are truly useful to consumers from the perspectiveof selection of materials, streamlining of processes andsimplification of packaging.

We sought to give customers a feeling of rational satisfaction,
expressed not with “This is what I really want,” but with “This will do.”By providing functional, streamlined products that help simplify
and beautify people’s lives based on our concept of “conscienceand creativity,” we have contributed to solving social issues withproposals for peaceful, relaxed living.

We offer affordable products that are not only essential and useful but also
beneficial for the environment, producers and local communities. We will also
evolve our efforts to help address local challenges, and contribute to the harmonious
coexistence and development of daily life, culture and the environment together
with local communities.

Our Perspective

Products with simplicity

Products that fit all life occasions

New store openings both inJapan and overseas

Launch of flagship stores and new services

Products for organizing people’s life

Products in harmony with society

Evolution ofOur Products
Evolution of Our
Stores and Services

Expansion of services close to daily life

Creation of platforms for realizing a better society

History of Ryohin Keikaku

1980
Seiyu Co., Ltd., a Japaneseretail company, establishedMujirushi Ryohin (MUJI) as
its private brand

1983
First directly managed store,
MUJI Aoyama, opened in Japan

1986
Production and procurement
started outside Japan

1989
Ryohin Keikaku Co., Ltd.
established

5 MUJI REPORT 2023

1991
Began business outside Japan(First store in U.K. and first store in
Hong Kong opened)2011

MUJI Yurakucho, a flagship store for
information dissemination, opened

Found MUJI Aoyama opened

Entered the market in India as the first Japaneseretailer there

2012

2017

Muji Retail (Thailand) Co., Ltd. established

Number of MUJI stores surpassed 400 both inJapan and overseas

2005
MUJI (Shanghai) Company Limited
established2013

MUJI Tsunan Campsite opened

2006

Joined UN Global Compact
Launched MUJI passport smartphone app

2000

Business transfer from IDÉE Co., Ltd.

Listed on the first section of theTokyo Stock Exchange*
MUJI.net Co., Ltd. established(currently MUJI HOUSE Co., Ltd.)

2007

1995

*N ow listed on the Tokyo Stock
Exchange Prime Market

2016

2001

First store in U.S. opened

2010
Began MUJI x JICA Project Kyrgyz

2018
Began sales of frozen food

2014

2019

MUJI Sino-Ocean Taikoo Li Chengdu opened

MUJI Ginza and MUJI HOTEL GINZA opened

2015

2020

Began ReMUJI initiative for reuse and recyclingof fabric items

Established production management base in Vietnam
Launched MUJI passport Pay service2021
New start under our “Second Founding”
Started monthly furniture rental service
Opened Healthcare Center

FY2023/82022

JPY

Opened MUJI Hiroshima Alpark
Started sales of MUJI products in Lawson convenience
stores nationwide and through CO-OP Sapporo’s Todock
home delivery system

2023

Operating revenue

581.4 billion

Operating profit

JPY

33.1 billion

Expanded range of plastic products collected
Reopened MUJI Shinjuku Yasukuni-Dori as a specialty
clothing store
The graph in the background shows operating revenue.
MUJI REPORT 2023

6Introduction

Introduction

Toward “a Truthful and Sustainable Life for All”
The scope of our activities has greatly expanded since the creation of MUJI 43 years ago, but our core philosophy has remained
the same. We envision a future where “a truthful and sustainable life for all” is a reality. We will provide various products basedon our concept of “conscience and creativity,” and help solve social issues through our businesses and services.

A store with all lifestyle essentials

ApparelHousehold goods

Local community centers

Platforms for realizing “a truthfuland sustainable life for all”

Organization of local resources: Collaboration withlocal businesses and sales of local productsSpace design business: Designing residences andspaces that reflect MUJI’s value

Events and workshops

Residential design

Food products

Community Market events(page 55)

Development of local products
exclusive to the area

Public spaces

Renovation

Revival projects for regional areas: Highlighting local
traditions and utilizing local resources

Fresh foodRental of stall space inside MUJI
stores at shopping arcades
Store opening support for local
business owners

Café&Meal (local production
for local consumption)

Revitalization of shoppingarcades

Store openings at roadsiderest areas

Revitalization of housing complexes
and renovation projects

Repurposing of abandoned
school buildings

Revitalization of unused houses Shokoku Ryohin (Sales of localproducts)

Circularity: Collaborating with customers in productrecycling and waste reduction

MUJI CYCLE (page 48)

ReMUJI (page 48)

Mottainai Market (page 48)

Accommodation business: Managing facilities andfacilitating local experiences

Services that support daily life: Enhancing customers’
well-being

MUJI BASE (page 56)

MUJI HOTEL

Campsites

Community engagement: Developing activities and collaboratingwith local governments, entrepreneurs and producers
Mobile sales

7 MUJI REPORT 2023

Healthcare Centers (page 56)

MUJI SUPPORT (page 52)

ITSUMO MOSHIMO (page 56)

Satoyama landscapeconservation​

Art events
MUJI REPORT 2023

8Introduction

Introduction

Financial and Non-Financial Highlights
Operating Revenue

Operating Profit/
Operating Profit Ratio(Billion JPY)

(Billion JPY)

581.4

600（%）(Billion JPY)

1550

320

4040

1236.3

6.6

0

179.3

2,446
2,285

1,250

10.8

8.7

366

2,527
2,343

131（27.8%）

1,374

1,295142

300
252

1,404

208

340
（72.2%）

1,500

11.8

80

310200173

100002020/2 2020/8 2021/8 2022/8 2023/8

0.50.8

Total Assets/ROA

Operating profit ratio (Right scale)

Dividends per Share/Dividend Payout Ratio（%）(Billion JPY)

500

25

47.9

50

1,035

500

400

2040

343.9
306.5

15（%）

50

40.0

40.0
40.0

36.4

Includes licensed stores, Cafe&Meal MUJI and IDÉE
1,500

1,072

1,048

66
28

1,200

30(t-CO2e)

35,00050,000

49.1

12.3

200

9.4

1020

20600

51010300

52.0

44.2

571

Number of midcareer hires

CO2 Emissions/Emissions perUnit of Operating Revenue
Scope 1 and 2 only1(t-CO2e/per 100 million JPY)

20.0

30,43330,000

66.9

10538

Number of new university
graduate hires(ReMUJI products)

654
550

Male（t）

60

900
556Female52

2020/2 2020/8 2021/8 2022/8 2023/8

ReMUJI1, 2 Sales Volume

604

12.8

Number of male
employees

28,62340,37840,000

1,136

1,068

1,029

0

Volume of Textile ProductsCollected1

1,251
4057

2020/2 2020/8 2021/8 2022/8 2023/8

Number of female
employees

224

116

100

1,298

1,123

80

1,033

31.8

300(10)ROE (Right scale)

Net assets (Left scale)

42.941.1

399.3(8.8)
2020/2 2020/8 2021/8 2022/8 2023/8

Number of Stores (Total) in Japanand Overseas(JPY)

453.7
393.3

(80)

0

2020/2 2020/8 2021/8 2022/8 2023/8

103

200
1,000

Total 471

Operating profit (Left scale)

300

6

5.7

400

2,000

17.3

20

2,500

Number of New Employees Hired1

2,874

20

160

8.3

100

Percentage of Women in
Managerial Positions1

1,576

182.9
9300

200

30

214.8

208.4

9.4

30

244.8

240

33.1

32.7

400

3,000

267.4

42.4

453.6

438.7

Number of Employees1
Number of employees at the end of the period（%）

496.1

500

Net Assets/ROE

16.0

35,81925,00030,83930,00020,00040

15,00027,07310.1 9.5

12.0

11.8

11.6
10.0

8.0

20,000

8.5
100

597
477

5.0
00.2
2020/2 2020/8 2021/8 2022/8 2023/8

0

ROA (Right scale)

Total assets (Left scale)000

Capital Investment andDepreciation(Billion JPY)

(Billion JPY) 30.0

60

63.7

61.4

56.5

600

26.3
24.8

24.4

18.9 18.9

17.6

23.3

17.6

150
(31.4)

(1.7)
(4.2)

(13.5)(16.6)(15.1)

400

300(22.1)(11.2)(11.4)

500

22.0
2030

(30)

Parentheses indicate percentage of total(Billion JPY)

25

1010.39.0

100(58.6)(90)

2020/2 2020/8 2021/8 2022/8 2023/8

Cash flows from operating activities
Cash flows from investing activities
Cash flows from financing activities

02020/2 2020/8 2021/8 2022/8 2023/8

Capital Investment

Depreciation

Note: Due to the change in fiscal year, 2020/8 covers the six-month period from March 1 to August 31, 2020.

9 MUJI REPORT 2023

211.8
（46.7%）

2020/2 2020/8 2021/8 2022/8 2023/8

20.7（4.2%）
59.9（12.1%）

232.7（46.9%）

23.9（4.1%）
74.8（12.9%）

00

3,214
224

0

2020/2 2020/8 2021/8 2022/8 2023/8

Number of Regional
Cooperation Agreements140

Number of Employees in Employee
Shareholding Association1

182.7（36.8%）

2,6262022/8

Number of Employees underthe Balanced Four-Day
Workweek System1
89

2,623
75

2,000

260.0（44.7%）
19202023/8

ApparelHousehold goods

Food products

OtherEmissions per unit of operating
revenue (Right scale)

31

1,425

17

70

1,848

50
32
25

1050

2021/8

0.0

100

3,000

30

222.5（38.3%）

2020/2 2020/8 2021/8 2022/8 2023/8

CO2 emissions(Left scale)

1,000169.0（37.3%）

4.0

3,927

Sales grew substantially in FY2022/8 due to the expansionof ReMUJI sales at MUJI Shinjuku* from September 2021.
* Currently MUJI Shinjuku Yasukuni-Dori

200

5(60)

18.2
（4.0%）
54.5（12.0%）

5,000
0

11,61410,000

Number of storesin JapanOperating Revenue by ProductCategory

3090

10,00017.1

532

Number of storesoverseas

Dividend payout ratio (Right scale)Note: T he dividend payout ratio for FY2020/8 is not presented
as the Company recognized net loss per share.

Cash Flow497

2020/2 2020/8 2021/8 2022/8 2023/8

2020/2 2020/8 2021/8 2022/8 2023/8Dividends per share (Left scale)

479

20

52020/2 2020/8 2021/8 2022/8 2023/8

02020/8

2021/82022/82023/802021/8

2022/82023/8For FY2021/8, the figure covers the four-month period
since the launch of the system in May.

1. Ryohin Keikaku Co., Ltd. only
2. Resale of goods reprocessed from products collected at stores for recycling and from products soiled or damaged during the manufacturing process
MUJI REPORT 2023

10IntroductionIntroduction

Global Network (As of August 31, 2023)

Employees

StoresCafés

We operate directly managed MUJI stores and a wholesale business in Japan and overseas, with more than 1,200 stores in
32 countries and regions. Although points of emphasis differ depending on the region, by enhancing our lineup of locally developed
products and services that match lifestyles in each region, we establish a locally rooted business model. We also focus on hiring
employees locally. We will continue to expand globally with the aim of being useful to the people of each country and region
where we operate to help realize “a truthful and sustainable life for all.”East Asia

Europe7,274 (2,070)

1715 (334)1Campsites

Countries/Regions
Where We Operate

32

Number of Stores

1,251

Number of Group
Employees

20,79531(10,721)

482
25
2384

HotelsJapan
10,737 (7,784)

15712
26
1
3

SoutheastAsia
1,545 (208)1

Breakdown of Operating Revenue by Area

North
America

Europe/North America

388 (257)
19

1Southeast Asia/
Oceania

6.1%

5.4%

Japan

59.0%

East Asia

29.5%

Breakdown of Employees by Area
Europe/North America

834Southeast Asia/Oceania

3

5.3%

8.1%

Oceania

Japan

51.6%

East Asia

136 (68)

135.0%

4
1. Number of non-regular employees (average number of employees per year
based on an eight-hour workday calculation method)
2. Including 9 IDÉE stores and 84 licensed stores
3. Including licensed stores, Café&Meal MUJI and IDÉE
4. Including licensed stores

11 MUJI REPORT 2023

MUJI REPORT 202312