FAST RETAILING CO., LTD.
迅 銷 有 限 公 司Interim Report 2021/22
2021.9.1–2022.2.28
Stock Code: 6288

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Contents
1. Corporate Profile3

2. Financial Highlights

4

3. Management Discussion and Analysis

6

4. Information about the Reporting Entity

11

5. Financial Section

14

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

15(2) Interim Condensed Consolidated Statement ofProfit or Loss and Interim Condensed Consolidated
Statement of Comprehensive Income

17Interim Condensed Consolidated Statement of Profit or Loss

17

Interim Condensed Consolidated Statement ofComprehensive Income19(3) Interim Condensed Consolidated Statement of
Changes in Equity

21(4) Interim Condensed Consolidated Statement of Cash Flows23

2. Others

36

Independent Accountant’s Review Report

37

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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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2. Financial Highlights
Consolidated Financial Summary

Term

Half-yearly
periodof60th Fiscal
Year

Half-yearly
periodof
61st Fiscal
Year

60th Fiscal
Year

Accounting period

Six months
ended
28 February2021

Six months
ended
28 February
2022

Year ended
31 August2021

1,202,864

1,218,977

2,132,992

Operating profit (Millions of yen)

167,982

189,278

249,011

Profit before income taxes (Millions of yen)

171,482

212,566

265,872

105,868

146,844

169,847

127,401

194,448

215,309

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

1,056,228

1,274,093

1,116,484

Total assets (Millions of yen)

2,501,920

2,641,596

2,509,976

Basic earnings per share (Yen)

1,036.76

1,437.41

1,663.12

Diluted earnings per share (Yen)

1,035.04

1,435.21

1,660.44

42.2

48.2

44.5

352,125

264,654428,968(41,037)(74,216)(82,597)

Net cash (used in) / generated by financing activities (Millions ofyen)(201,334)(108,025)(302,985)

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

1,220,854

1,297,451

1,177,736

Three months
ended
28 February
2021

Three months
ended
28 February
2022

Revenue (Millions of yen)

583,066

591,585

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

35,48753,252

Basic earnings per share for the period (Yen)

347.49521.23

Revenue (Millions of yen)

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

Ratio of equity attributable to owners of the Parent to total assets (%)
Net cash generated by operating activities (Millions of yen)
Net cash (used in) / generated by investing activities (Millions ofyen)Accounting period(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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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 six months ended 28 February 2022.
In addition, there were no significant changes in the organizational structure of the Group, including the major subsidiaries, during thesix months ended 28 February 2022.

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3. Management Discussion and Analysis
Business Review
1. Business and Operational Risks
No new business-related risks have arisen during the six months ended 28 February 2022.
There have been no significant changes concerning business-related risks as stated in the annual report for the preceding fiscal year.
2. Financial Analysis(1) Financial Position and Results of Operations(ⅰ) Results of Operations
The Fast Retailing Group reported an increase in revenue and a large rise in profits in the first half of fiscal 2022, or the six
months from 1 September 2021 to 28 February 2022, with consolidated revenue totaling 1.2189 trillion yen (+1.3% year-on-year)
and operating profit rising to 189.2 billion yen (+12.7% year-on-year). That firm result can be attributed primarily to an expansionin our business operations, with strong performances reported by UNIQLO operations in the South Asia, Southeast Asia &Oceania, North America, and Europe regions. Meanwhile, UNIQLO operations in Japan and the Greater China region as well as
our GU business segment reported declines in first-half revenue and profit. Fast Retailing’s consolidated gross profit margin
improved by 1.7 points year-on-year to 51.6% and the selling, general and administrative expense ratio increased by 1.0 points
year-on-year to 36.0%. In addition, under finance income net of costs, we recorded a 23.2 billion yen foreign exchange gain on
foreign-currency denominated assets and other items due to a depreciation in yen exchange rates over the six-month period. As aresult, first-half profit before income taxes rose to 212.5 billion yen (+24.0% year-on-year) and profit attributable to owners of theparent increased to 146.8 billion yen (+38.7% year-on-year). Thanks to the growing diversification of our global earnings pillars,
Fast Retailing achieved a record consolidated performance in the first half 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 storesand large-format stores in the world’s major cities. In terms of our GU segment, we are working to strengthen GU’s position as abrand that offers 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 half of fiscal 2022, with revenue totaling 442.5
billion yen (−10.2% year-on-year) and operating profit totaling 80.9 billion yen (−17.3% year-on-year). First-half same-store sales
declined by 9.0% year-on-year. This performance was being compared to a strong result in the previous year when sales of ranges
such as loungewear that satisfied stay-at-home demand as well as AIRism masks proved particularly buoyant. In addition,shortages of strong-selling Winter ranges resulted in lost sales opportunities. E-commerce sales declined slightly compared to thefirst half of fiscal 2021 with online sales totaling 72.4 billion yen (−1.9% year-on-year). However, this figure represented an
approximate 40% increase compared to the first half of fiscal 2020, so e-commerce is still trending on a favorable expansion track.
UNIQLO Japan’s gross profit margin improved by 0.9 point as our strategy of restricting discount sales improved discounting
rates. The selling, general and administrative expense ratio increased by 2.6 points following the decline in sales.
UNIQLO International
UNIQLO International reported a significant increase in both revenue and profit in the first half of fiscal 2022, with revenue
rising to 593.2 billion yen (+13.7% year-on-year) and operating profit expanding to 100.3 billion yen (+49.7% year-on-year). This
impressive UNIQLO International performance was fueled primarily by large increases in both revenue and profit at UNIQLO
operations in the S/SE Asia & Oceania, North America, and Europe regions. Operating profit generated by the North America andEurope regions constituted approximately 20% of the total for UNIQLO International overall. This constitutes one more earnings
pillar following on from the Greater China region, which accounts for approximately 55% of the segment’s operating profit.
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 weaker consumer appetite for apparel following the－6－

implementation of restrictions to control rising COVID-19 infections. Meanwhile, the Hong Kong and Taiwan markets and
UNIQLO South Korea reported rises in both revenue and profit. S/SE Asia & Oceania reported significant year-on-year rises inrevenue and profit. Within that region, UNIQLO operations in Malaysia and Indonesia generated particularly strong results as theeasing of COVID-19 restrictions as well as stronger digital and in-store marketing helped attract customers. UNIQLO North
America reported a significant rise in revenue and moved into the black in the first half. Sales expanded as we focused onconveying pertinent information to strengthen UNIQLO branding and marketing core products. The region’s gross profit marginand selling, general and administrative expense ratio improved significantly on the back of restricted discount sales and an
overhaul of the operation’s cost structures. UNIQLO Europe achieved significant increases in both revenue and profit as stronger
marketing targeting new customers successfully broadened the customer base and the region was able to secure sufficientinventory of strong-selling core Winter ranges.
We are pursuing more determined new store openings on a global scale. We opened the UNIQLO RIVOLI Store in Paris in
September 2021 and our first global flagship store in Beijing, the UNIQLO BEIJING SANLITUN Store, in November 2021. We
are set to open our new UNIQLO Regent Street Store in London in April 2022. We intend to showcase the UNIQLO brand to theworld from prime locations in major global cities.
GU
The GU business segment reported a decline in revenue and a considerable contraction in profit in the first half of fiscal 2022,with revenue falling to 122.8 billion yen (−7.4% year-on-year) and operating profit contracting to 9.3 billion yen (−40.9% yearon-year). First-half sales declined as persistently warm weather early on in the season stifled sales of Fall items and, despite
strong sales of knitwear, bottoms, and other Winter items, delays in production and distribution prevented us from procuringstrong-selling items in a timely manner and resulted in lost sales opportunities. GU’s gross profit margin declined by 0.4 point as
the sharp rises in raw materials prices and shipping costs resulted in a slightly higher cost of sales. GU’s selling, general andadministrative expense ratio increased by 3.6 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 toboost brand recognition.
Global Brands
The Global Brands segment reported a rise in revenue and a move back into the black in the first half of fiscal 2022. The segment
generated revenue of 58.9 billion yen (+8.1% year-on-year) and an operating profit of 1.0 billion yen (compared to an 8.1 billion
yen loss recorded in the first half of fiscal 2021). Our Theory operation generated strong increases in both revenue and profit
thanks primarily to a recovery in performance and a move back into the black for Theory in the United States. PLST reported adecline in revenue and a wider operating loss as the operation was adversely impacted by Japan’s COVID-19-related state of
emergency and semi-state of emergency measures and was unable to release products and convey product news that would attract
customers. Our France-based Comptoir des Cotonniers operation reported higher revenue and a considerably lower operating loss
in the first half as customer numbers in France recovered compared to the previous year, which was hit hard by rising COVID-19
infections. Meanwhile, the permanent closure of unprofitable stores and other structural reforms improved cost efficiencies.
Sustainability
In keeping with our key sustainability message, “Unlocking the power of clothing,” the Group pursues sustainability activities
through our core clothing business focused 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 order to improve the quality of life of the people working in our supply chain,
in December 2021 we not only guaranteed our workers a minimum wage, but also announced targets and initiatives aimed atproviding a living wage (a level of pay that meets a person's fundamental needs such as clothing, shelter and food, and allows
them to lead a reasonable social life). Please see our website for more details:
https://www.fastretailing.com/jp/about/frway/pdf/LivingWageCommitment_jp.pdf

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■ Consideration for the environment: For the second year running, we have been selected as a Supplier Engagement Leader by
CDP, an international non-profit organization that provides a platform for the disclosure of environmental information. Supplier
Engagement Leader is the highest rank given by the Supplier Engagement Rating, which assesses how effectively companies
work with their suppliers to combat climate change. It was only awarded to the top 8% of companies surveyed globally in 2021.
Fast Retailing was recognized for incorporating our climate response into our business strategy and working on reducing
greenhouse gas emissions in our supply chain (https://www.fastretailing.com/jp/sustainability/news/2202161500.html).
■ Strengthening communities: The Power of Clothing Project received the METI Minister's Awards Grand Prix, the top prize inthe large-enterprise category of the Japanese Ministry of Economy, Trade and Industry's 11th Career Education Awards. It also
received the Judges' Commendation in the 9th Awards for Companies Promoting Experience-based Learning Activities for Young
People, held by the Japanese Ministry of Education, Culture, Sports, Science and Technology. The Power of Clothing Project is ahands-on learning program for elementary, junior and high-school students, organized by Fast Retailing in partnership with the
UN Refugee Agency. This year marks the project's tenth anniversary. In fiscal 2021, around 73,000 students from 625 schools
took part (https://www.fastretailing.com/jp/sustainability/news/2202281500.html).
Following an appeal by the UN Refugee Agency, we have also made a donation of USD 10 million (approx. JPY 1.15 billion)
toward their work providing emergency humanitarian aid in Ukraine and the surrounding regions. This donation will be used forurgent work to protect people in danger, including the establishment of emergency shelters, distribution of emergency supplies,
and children's mental health care. We will also provide 100,000 clothing items, including UNIQLO HEATTECH blankets,
HEATTECH innerwear and AIRism face masks, as well as 100,000 items of reclaimed winter clothing, etc. collected at UNIQLO
stores in Japan, to refugees in regions such as Poland according to the needs of the UN Refugee Agency(https://www.fastretailing.com/jp/ir/news/2203101800.html).
■ Implementing good corporate governance: To enable rapid and transparent management, each committee is engaged in open
and active discussion. The Nomination and Remuneration Advisory Committee has been restructured to further improve thecommittee's transparency and independence. The Board of Directors will nominate an external director to serve as the chairperson,
and all independent external directors and some independent external auditors will participate as committee members.
Furthermore, the Group’s philosophy and spirit are the source of our growth, and we believe it is important that these are passedon, so the President will also participate as a committee member. The Human Rights Committee are discussing an action plan for
an initiative to ensure that human rights are respected in the future, based on monitoring of manufacturing partners' working
environments, and the findings of their factory hotlines.
(ⅱ) Financial Position
Total assets as at 28 February 2022 were 2.6415 trillion yen, which was an increase of 131.6 billion yen relative to the end of thepreceding fiscal year. The principal factors were an increase of 119.7 billion yen in cash and cash equivalents, an increase of 39.1
billion yen in other current financial assets, a decrease of 44.5 billion yen in inventories, an increase of 19.9 billion yen inderivative financial assets, an increase of 7.8 billion yen in property, plant and equipment, a decrease of 13.3 billion yen in rightof-use assets, and a decrease of 5.4 billion yen in deferred tax assets.
Total liabilities as at 28 February 2022 were 1.3197 trillion yen, which was a decrease of 27.9 billion yen relative to the end of thepreceding fiscal year. The principal factors were a decrease of 12.0 billion yen in trade and other payables, an increase of 48.9
billion yen in other current financial liabilities, a decrease of 2.3 billion yen in derivative financial liabilities, an increase of 9.1
billion yen in current tax liabilities, a decrease of 7.9 billion yen in other current liabilities, a decrease of 49.8 billion yen in noncurrent financial liabilities, a decrease of 14.5 billion yen in lease liabilities, and an increase of 1.9 billion yen in provisions.
Total net assets as at 28 February 2022 were 1.3218 trillion yen, which was an increase of 159.5 billion yen relative to the end of
the preceding fiscal year. The principal factors were an increase of 122.3 billion yen in retained earnings, and an increase of 32.7
billion yen in other components of equity.

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(2) Cash Flows Information
Cash and cash equivalents as at 28 February 2022 had increased by 119.7 billion yen from the end of the preceding fiscal year, to1.2974 trillion yen.
(Operating Cash Flows)
Net cash generated by operating activities for the six months ended 28 February 2022 was 264.6 billion yen (352.1 billion yen
was generated during the six months ended 28 February 2021). The principal factors were cash inflow from profit before tax for212.5 billion yen, depreciation and amortization for 88.2 billion yen and decrease in inventories for 50.1 billion yen, and cash
outflow from income taxes paid for 55.4 billion yen and foreign exchange gains for 23.5 billion yen.
(Investing Cash Flows)
Net cash used in investing activities for the six months ended 28 February 2022 was 74.2 billion yen (41.0 billion yen was usedduring the six months ended 28 February 2021). The principal factors were a net increase of 35.4 billion yen in bank deposits
with original maturities of three months or longer, and 26.9 billion yen in payments for property, plant and equipment.
(Financing Cash Flows)
Net cash used in financing activities for the six months ended 28 February 2022 was 108.0 billion yen (201.3 billion yen wasused during the six months ended 28 February 2021). The principal factors were 66.9 billion yen in repayments of lease liabilities,
and 24.4 billion yen in dividends paid to owners of the Parent.
(3) Estimates and Assumptions Used for Those Estimates in the Accounting
For the second-quarter consolidated accounting period, there are no significant changes to the estimates or the assumptions used
for those estimates.
(4) Operational and Financial Challenges to Address as Priority
There have been no significant challenges during the six months ended 28 February 2022 that must be addressed by the Group.
(5) Research and Development
Not applicable.

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(6) Significant Facilities
The following are the significant facilities that were newly completed during the six months ended 28 February 2022.
<Subsidiaries in Japan>
Company nameUNIQLO CO., LTD.
UNIQLO CO., LTD.

Type of facility

Name of business

Location

UNIQLO Japan

Kobe DCJapan

warehouses

Warehouses

Hyogo

UNIQLO Japan
warehouses

Ibaraki DC
Warehouses

Japan
Osaka

Type of facility

Name of business

Completion date
September 2021
November 2021

<Overseas Subsidiaries>
Company nameUNIQLO EUROPE LIMITEDUNIQLO TAIWAN LTD.
FAST RETAILING (CHINA)TRADING CO., LTD
LLC UNIQLO (RUS)

UNIQLOUNIQLO Rivoli

International store
UNIQLOUNIQLO Taipei

International store

UNIQLOBEIJINGUNIQLOInternational store

SALITUN

LocationFranceParis
TaiwanTaipeiChina
Beijing

UNIQLOUNIQLO

RussiaInternational store

Moscow

Moscow

Completion date
September 2021
October 2021

November 2021

December 2021

The following are the significant facilities that were newly planned during the six months ended 28 February 2022.
<Subsidiaries in Japan>
Company nameUNIQLO CO., LTD.

Type of facility

Name of business

Location

UNIQLO Japan
warehouses

Nagareyama DC
Warehouses

Type of facility

Name of business

Location

UNIQLOUNIQLO Regent

United Kingdom

International store

StreetLondon

Japan
Chiba

Completion date
April 2022

<Overseas Subsidiaries>
Company nameUNIQLO EUROPE LIMITED

3. Significant Contracts in Business Operation
None.

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Completion date
April 2022

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

Total number of authorized shares

Common stock

300,000,000

Total

300,000,000(ii) Shares Issued

Type

Number of shares issued
as at 28 February 2022

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

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

Remarks

First section of the Tokyo

Common stock

106,073,656

106,073,656

Stock Exchange andthe Main Board of

100 shares

the Stock Exchange ofHong Kong Limited

as one unit

(Note)
Total

106,073,656

106,073,656--(Note) Hong Kong Depositary Receipts are listed on the Main Board of the Stock Exchange of Hong Kong Limited.
(2) Share Subscription Rights
1. Details of the Stock Option Program2.

Not applicable.
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 December 2021
to28 February 2022-

106,073,656-(Note) There was no change in the total number of shares issued, capital stock or capital reserve during the three months ended 28
February 2022.

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(5) Major Shareholders

Name or trade nameLocation

As at 28 February 2022
As a percentage
Number ofover total
shares heldnumber of(in thousands
sharesof shares)(excluding
treasury stock)

The Master Trust Bank of Japan, Ltd.

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

22,962

22.47

Tadashi Yanai

Shibuya-ku, Tokyo

22,037

21.57

Custody Bank of Japan, Ltd.

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

11,40011.16

TTY Management B.V.

De Entree 99, 1101HE Amsterdam,
The Netherlands

5,310

5.20

Kazumi Yanai

New York, U.S.A.

4,781

4.68

Koji Yanai

Shibuya-ku, Tokyo

4,781

4.68

Fight & Step Co., Ltd.

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

4,750

4.65

MASTERMIND, LLC

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

3,610

3.53

Teruyo Yanai

Shibuya-ku, Tokyo

2,327

2.28

STATE STREET BANK AND TRUSTP.O. Box 351, Boston, Massachusetts,

COMPANY (Standing proxy Mizuho
Bank, Ltd.)U.S.A., 02101(2-15-1, Konan, Minato-ku, Tokyo)

2,186

2.14

84,148

82.36

Total

-

(Notes) 1. “Number of shares held” is rounded down to the nearest unit of thousand shares.
2. The shares held by The Master Trust Bank of Japan, Ltd. and Custody Bank of Japan, Ltd. are all held in conjunction withtrust businesses.
3. According to the report of large shareholdings (Report of Change of Composition) submitted on 17 January 2022 byNomura Securities Co., Ltd. and the two parties of Nomura International PLC and Nomura Asset Management Co., Ltd.,
which are all joint shareholders, each party held the shares stated below as at 12 January 2022. However, since theCompany has not been able to confirm the number of shares actually held as at 28 February 2022, these shareholdings havenot been included in the above table of major shareholders.

Name or trade nameLocation

Number ofshares held
(in thousands ofshares)Percentage of
total number ofshares issued

Nomura Securities Co., Ltd.

1-13-1 Nihonbashi, Chuo-ku, Tokyo

79

0.08

Nomura International PLC

1 Angel Lane, London EC4R 3AB,
United Kingdom

66

0.06

Nomura Asset Management Co., Ltd.

2-2-1 Toyosu, Koto-ku, Tokyo

11,31910.67

4. In addition to the above, 3,899,687 shares of treasury stock are held by the Company (3.68% of the total number ofoutstanding shares).

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(6) Voting Rights(i) Shares issued
As at 28 February 2022
Class

Number of shares

Number of voting rights

Remarks

-

-

-

-

-

-

-

-

-

-

-

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

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

Common stock
3,899,600

Shares with full voting rights(e.g., other than treasury stock)

Common stock
102,077,400

1,020,774

Common stock

Shares less than one unit

96,656

Total number of shares issued

106,073,656

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

1,020,774-(Notes) 1. The columns for the number of shares of “Shares with full voting rights (e.g., 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 87 shares of treasury stock held by the Company.
(ii) Treasury Stock

Name or trade name ofholderFAST RETAILING
CO., LTD.

Holder’s address
10717-1 Sayama,
Yamaguchi-shi,

As at 28 February 2022
Percentage ofTotal number of
total number ofshares held
shares issued(%)

Number ofshares held in
own name

Number ofshares held inother’s name3,899,600-

3,899,600

3.68

3,899,600-

3,899,600

3.68

Yamaguchi

Total

-

2. Directors
Since the submission of the year-end report for the preceding fiscal year, there has been no change of directors during the six
months ended 28 February 2022.

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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 28 February 2022, the interim condensed consolidated statement of profit or loss and interim condensed
consolidated statement of comprehensive income for the three-month and six-month periods then ended, the interim condensed
consolidated statement of changes in equity and interim condensed consolidated statements of cash flows for the six-month period
then ended, and the related notes (collectively, the “interim condensed consolidated financial statements”) were prepared inaccordance 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,
hereinafter referred to as “Consolidated Quarterly Financial Statements Rules”).
2. Review Report
Pursuant to the first clause of Article 193-2 of the Financial Instruments and Exchange Act, the interim condensed consolidated
financial statements have been reviewed by Deloitte Touche Tohmatsu LLC.

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14

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(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 28 February 2022

1,177,736

1,297,451

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

15

50,54656,15755,861
95,275Inventories
Derivative financial assets

6
15

394,868
27,103350,348
40,151

2,992
15,2701,391
20,342

1,724,674

1,860,823

Income taxes receivable
Other assets
Total current assets
Non-current assets
Property, plant and equipment

7,8

168,177

176,033

Right-of-use assets
Goodwill

8

390,5378,092

377,152
8,092

Intangible assets
Financial assets

8
15

66,93967,12270,60565,074

Investments in associates accounted
for using the equity method

18,236

18,392

Deferred tax assets
Derivative financial assets

15

37,12522,552

31,64529,460

Other assets

8

6,520

4,317

Total non-current assets
Total assets

785,302780,772

2,509,976

2,641,596

220,057
104,969

208,009
153,916

2,493
117,083764
114,532

38,606
2,149

47,7262,201

Liabilities and equity
LIABILITIESCurrent liabilities
Trade and other payables
Other financial liabilities

15

Derivative financial liabilities
Lease liabilities

15

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

15

Provisions
Deferred tax liabilities
Derivative financial liabilities
Other liabilities

15

Total non-current liabilities
Total liabilities

－

15

－

95,65287,736

581,012614,887

370,799
343,574

320,947
331,531

39,046
9,860

40,923
8,644

1,042
2,342

397
2,422

766,665

704,866

1,347,678

1,319,754

Notes

As at 31 August 2021

As at 28 February 2022

10,273

10,27325,3601,054,791

27,713
1,177,178(14,973)
41,031(14,864)
73,791Equity attributable to owners of the Parent
Non-controlling interests

1,116,484
45,813

1,274,093
47,747

Total equity

1,162,298

1,321,841

2,509,976

2,641,596

EQUITY
Capital stock
Capital surplus
Retained earnings
Treasury stock, at cost
Other components of equity

Total liabilities and equity

－

16

－

(2) Interim Condensed Consolidated Statement of Profit or Loss and Interim Condensed Consolidated Statement of Comprehensive
IncomeInterim Condensed Consolidated Statement of Profit or Loss
Six months ended 28 February 2022
(Millions of yen)

Revenue

Notes

Six months ended
28 February 2021

Six months ended
28 February 2022

10

1,202,864

1,218,977(602,413)(589,891)

Cost of sales
Gross profit
Selling, general and administrative expenses

11

600,451(420,750)

629,085(439,265)

Other income
Other expenses

12
8,12

4,446
(16,512)

6,652(7,770)347

576

167,982
7,059

189,278
26,694

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

13

Finance costs

13(3,559)(3,407)

Profit before income taxes
Income tax expense

171,482(62,227)

212,566(58,183)

Profit for the period

109,255

154,382

Owners of the Parent
Non-controlling interests

105,868
3,387

146,844
7,537

Total

109,255

154,382

Profit for the period attributable to:Earnings per share
Basic (yen)14

1,036.76

1,437.41

Diluted (yen)14

1,035.04

1,435.21－

17－

Three months ended 28 February 2022
(Millions of yen)
Notes
Revenue
Cost of sales

Three months ended
28 February 2021

Three months ended
28 February 2022

583,066(307,436)

591,585(301,126)

Gross profit

275,630

290,458

Selling, general and administrative expenses
Other income(207,504)
2,229(216,813)
2,964

Other expenses
Share of profit and loss of associates accounted(15,598)(6,882)

132

144

Operating profit

54,88869,871

Finance income
Finance costs

11,168(1,739)10,171(1,685)

Profit before income taxes

64,31778,357

Income tax expense(27,555)(21,595)

Profit for the period

36,762

56,762

Profit for the period attributable to:
Owners of the Parent

for using the equity method

35,48753,252

Non-controlling interests

1,275

3,510

Total

36,762

56,762347.49346.91521.23520.41

Earnings per share
Basic (yen)Diluted (yen)

14
14

－

18

－

Interim Condensed Consolidated Statement of Comprehensive Income
Six months ended 28 February 2022
(Millions of yen)Six months ended
28 February 2021

Six months ended
28 February 2022

109,255

154,382

369

(57)

369

(57)

Exchange differences on translating
foreign operations

18,26916,961

Cash flow hedges
Share of other comprehensive income of associates

4,584
55

30,561
7

22,90947,531

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

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

23,27947,473

132,534

201,856

Owners of the Parent
Non-controlling interests

127,401
5,133

194,448
7,407

Total comprehensive income for the period

132,534

201,856

Total comprehensive income for the period
Attributable to:

－

19

－

Three months ended 28 February 2022
(Millions of yen)Three months ended
28 February 2021

Three months ended
28 February 2022

36,762

56,762

31

0

31

0

11,822938

16,233

11,848

Share of other comprehensive income / (loss) of
associates

42

5

Total items that may be reclassified subsequently to
profit or loss

28,098

12,792Other comprehensive income / (loss), net of income tax

28,13012,79364,89369,556

Owners of the Parent
Non-controlling interests

62,283
2,609

67,295
2,260

Total comprehensive income for the period

64,89369,556

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

Total comprehensive income for the period
Attributable to:

－

20

－

(3) Interim Condensed Consolidated Statement of Changes in Equity
For the six months ended 28 February 2021
(Millions of yen)
Other components of equity
Treasury Financial assets
stock, measured at fair Foreignvalue
currency
at costthrough other translation
comprehensive reserveincomeCapitalstock

CapitalsurplusRetainedearnings

10,27323,365

933,303(15,129)--

105,868

-

-

-

-

-

-

-

-

369

16,389

4,717

-

-

105,868-369

16,389

4,717

-

-

-

(4)

-

-

-

1,215
639

(24,504)
-

111
-

-

-

-

-

-

-

-

581

Total transactions with theowners of the Parent

-

1,855

Total net changes during theperiod10,273Note

As at 1 September 2020
Net changes during the period
Comprehensive income
Profit for the period
Other comprehensive
income / (loss)
Total comprehensive income /(loss)
Transactions with the ownersof the Parent
Acquisition of treasury
stock
Disposal of treasury stock
Dividends
Share-based payments
Transfer to non-financial
assetsTransfer to retained
earnings

As at 28 February 2021

9385

39,516

996,079--

105,868

3,387

109,255

55

21,533

21,533

1,746

23,27955

21,533

127,401

5,133

132,534

-

-

-

(4)

-

(4)

-

-

-

-

1,327
(24,504)639(1,367)-

1,327(25,871)639--(5,193)-(5,193)(5,193)(691)(5,884)

-

(581)

-

-

-

(581)

-

-

-

(23,923)

106

(581)

-

(5,193)-(5,774)(27,735)(2,058)(29,794)

1,855

81,945106(211)

16,389(475)

55

15,75899,665

3,074

102,740

25,2201,015,248(15,022)

173

7,900

12,4294

20,507

1,056,228

42,5901,098,819

－

(51)

Total

Total
equity956,562

21

12,905Equityattributable
Nonto owners controllingof theinterests
Parent4,749－(8,489)

Share of otherCash flow
comprehensive
hedge
income ofreserveassociates

For the six months ended 28 February 2022
(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 /(loss)
Transactions with the ownersof 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 theperiodAs at 28 February 2022

9

Treasury Financial assets
stock, measured at fair Foreignvalue
currency
at costthrough other translation
comprehensive reserveincomeCapitalstock

CapitalsurplusRetainedearnings

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

146,844

-

-

-

-

-

-

-

-

(57)

17,51430,138--146,844-(57)

17,51430,138

-

-

-

(3)

-

-

-

1,322
1,030

(24,514)
-

111
-

-

-

-

-

-

-

-

-

-

57

-

-

-

-

-

2,352

(24,457)

271

9,855

Share of otherCash flow
comprehensive
hedge
income ofreserveassociates
30,89013Equityattributable
Nonto owners controllingof theinterests
Parent

Total

Total
equity41,031

1,116,484

45,813

1,162,298--

146,844

7,537

154,382

7

47,60347,603(130)

47,473

7

47,603

194,4487,407

201,856

-

-

-

(3)

-

(3)

-

-

-

1,434
(24,514)1,030(5,850)-1,434(30,364)
1,030-(14,786)-(14,786)(14,786)(26)(14,812)

(57)

-

-

-

(57)

-

-

-

-

-

-

-

-

-

-

402

402

108

(57)

-

(14,786)-(14,843)(36,839)(5,473)(42,312)-2,352

122,387

108

(115)

17,514

15,352

7

32,760157,608

1,934

159,543

10,27327,713

1,177,178(14,864)

156

27,37046,243

21

73,791

1,274,093

47,747

1,321,841

－

22

－

(4) Interim Condensed Consolidated Statement of Cash Flows(Millions of yen)Six months ended
28 February 2021

Six months ended
28 February 2022

Cash flows from operating activities
Profit before income taxes

171,482

212,566

Depreciation and amortization
Impairment losses

89,004
11,696

88,254
6,086Interest and dividend income
Interest expenses(2,310)3,551(3,069)3,359

Foreign exchange losses / (gains)Share of profit and loss of associates accounted for using(4,740)(23,576)

(347)

(576)

Notes

8

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

609

663

(Increase) / Decrease in trade and other receivables(Increase) / Decrease in inventories(420)
70,197(4,471)
50,108

Increase / (Decrease) in trade and other payables(Increase) / Decrease in other assets(12,402)(764)(14,429)(4,364)

Increase / (Decrease) in other liabilities
Others, net

60,132
2,278

1,168
2,442

Cash generated from operations

387,964

314,159

Interest and dividends income received
Interest paid

2,099
(3,114)2,594(2,889)

Income taxes paid
Income taxes refunded(36,036)
1,212(55,461)
6,251

Net cash generated by operating activities

352,125

264,654

Amounts deposited into bank deposits with original
maturities of three months or longer(47,286)(96,317)

Amounts withdrawn from bank deposits with original
maturities of three months or longer

46,73860,902

Payments for property, plant and equipment
Payments for intangible assets(28,359)(8,083)(26,926)(12,181)

Payments for acquisition of right-of-use assets
Payments for lease and guarantee deposits(666)(1,825)(382)(2,005)

Proceeds from collection of lease and guarantee deposits
Payments for acquisition of investments in associates

2,057(4,232)

2,511
-

620

183

(41,037)(74,216)

Cash flows from investing activities

Others, net
Net cash generated by / (used in) investing activities

－

23

－

(Millions of yen)
Notes

Six months ended
28 February 2021

Six months ended
28 February 2022

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

32,618

9,816

Repayment of short-term loans payable
Repayment of redemption of bonds(37,453)(100,000)(21,738)-(24,504)(1,367)(24,456)(5,250)

Repayments of lease liabilities
Others, net(70,733)
106(66,907)511

Net cash generated by / (used in) financing activities(201,334)(108,025)

17,57037,302

Dividends paid to owners of the Parent
Dividends paid to non-controlling interests

9

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

127,323

119,715

Cash and cash equivalents at the beginning of period

1,093,531

1,177,736

Cash and cash equivalents at the end of period

1,220,854

1,297,451

－

24

－

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 thecriteria 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 beread 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 14 April 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, estimates andassumptions 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.

－

25

－

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 six months ended 28 February 2021, the corporate
liquidation proceedings has been completed on 5 August 2021.
(ii) Segment revenue and results
For the six months ended 28 February 2021
Reportable segments(Millions of yen)Interim
Condensed
Adjustments
Consolidated(Note 2)
Statement ofProfit or
Loss

Total

Others(Note 1)54,561

1,201,579

1,284

-

1,202,864

15,888(8,188)

172,64144(4,703)

167,982

65,995

15,811(8,436)

171,87045(432)

171,482

9,035

434

1,386

11,696--

11,696UNIQLOJapan

UNIQLOInternational

GU

GlobalBrands

Revenue

492,519

521,826

132,671

Operating profit / (loss)

97,87067,070

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

98,499Other disclosure:
Impairment losses(Note 3)839

(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.
(Note 3) Details on the Impairment losses are stated in note “8. Impairment losses”.
For the six months ended 28 February 2022
Reportable segments(Millions of yen)Interim
Condensed
Adjustments
Consolidated(Note 2)
Statement ofProfit or
Loss

Total

Others(Note 1)

58,994

1,217,595

1,381

-

1,218,977

9,385

1,044

191,729(511)(1,939)189,278

101,072

9,534

865

194,120(545)

18,990212,566

3,580

1,186

524

5,292

794

-

6,086

UNIQLOJapan

UNIQLOInternational

GU

GlobalBrands

Revenue

442,513593,263

122,824

Operating profit / (loss)

80,926

100,373

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

82,648Other disclosure:
Impairment losses(Note 3)-(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.
(Note 3) Details on the Impairment losses are stated in note “8. Impairment losses”.

－

26

－

For the three months ended 28 February 2021
Reportable segments(Millions of yen)Interim
Condensed
Adjustments
Consolidated(Note 2)
Statement ofProfit or
Loss

Total

Others(Note 1)

26,493

582,514552-

583,066

2,284(7,965)57,75661(2,929)54,88825,2502,315(8,090)58,17962

6,075

64,317

8,961

434

1,322

11,563--

11,563

UNIQLOJapan

UNIQLOInternational

GU

GlobalBrands

Revenue

238,667

261,196

56,157

Operating profit / (loss)

37,78725,649Segment income/(loss) (i.e., profit /loss before income
taxes)

38,703

Other disclosure:
Impairment losses(Note 3)845

(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.
(Note 3) Details on the Impairment losses are stated in note “8. Impairment losses”.
For the three months ended 28 February 2022
Reportable segments(Millions of yen)Interim
Condensed
Adjustments
Consolidated(Note 2)
Statement ofProfit or
Loss

Total

Others(Note 1)

28,272590,864721-

591,585475(1,495)71,579(529)(1,178)69,871

41,237441(1,577)72,992

(545)

5,910

78,357

3,514

1,186

492

5,193

794

-

5,988

UNIQLOJapan

UNIQLOInternational

GU

GlobalBrands

Revenue

216,064

293,540

52,986

Operating profit / (loss)

32,13740,463

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

32,891Other disclosure:
Impairment losses(Note 3)-(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.
(Note 3) Details on the Impairment losses are stated in note “8. Impairment losses”.

－

27

－

6. Inventories
Write-down of inventories to their net realizable values recognized in expenses is as follows:(Millions of yen)Six months ended
28 February 2021

Six months ended
28 February 2022

7,525

4,080

Write-down of inventories to net realizable value

7. Property, Plant and Equipment
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
28 February 2022

Buildings and structures

116,120

115,036

Machinery and equipment

11,216

22,573

Furniture, fixtures and vehicles

20,553

26,042

Land

1,927

1,927

Construction in progress

18,35810,452

168,177

176,033

Total

－

28

－

8. Impairment Losses
During the six months ended 28 February 2022, the Group recognized impairment losses on certain store assets, etc., due toreductions in profitability of the respective cash-generating units ("CGU").
The breakdown of impairment losses by asset type is as follows:(Millions of yen)Six months ended
28 February 2021
Buildings and structures
Furniture, equipment and vehicles
Subtotal on property, plant and equipment
Software
Other intangible assets
Subtotal on intangible assets
Right-of-use assets
Other non-current assets (long-term prepayments)
Total impairment losses

Six months ended
28 February 2022

1,439

2,047

374

44

1,814

2,092

106

-

7

13

113

13

9,765

3,978

2

2

11,696

6,086

The Group’s impairment losses during the six months ended 28 February 2022 amounted to 6,086 million yen, compared with
11,696 million yen during the six months ended 28 February 2021, and are included in “Other expenses” on the consolidated
statement of profit or loss.
Six months ended 28 February 2021
Property, plant and equipment and Right-of-use assets
Impairment losses amounting to 11,696 million yen represented write downs of the carrying amounts of store assets to therecoverable amounts, primarily due to a reduction in profitability of certain stores, including flagship stores. With the global spreadof COVID-19, the Group's performance has been adversely affected due to temporarily closing of the stores, etc. Although thetiming 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 February 2022 for most countries and regions including Japan. For stores inother certain countries and regions, it may take longer for the situation to get under control.
The grouping of assets is based on the smallest identifiable CGU that independently generates cash inflow. In principle, each store,
including flagship stores, is considered as an individual CGU and recoverable amounts thereon are calculated based on value in use.
The value in use is calculated based on the cash flow projections with estimates and growth rates approved by management,
applying a discount rate of mainly 8.1 %. Theoretically, the projected cash flows cover a five-year period, and do not use a growthrate that exceeds the long-term average market growth rate. The pre-tax discount rate calculation is based on the weighted-average
cost of capital.
The main CGUs for which impairment losses were recorded are as follows:

Operating segment

CGU

Type
Buildings, structures and Right-of-use

UNIQLO Japan

UNIQLO CO., LTD. stores

UNIQLO International

UNIQLO USA LLC, UNIQLO EUROPE
LIMITED etc., stores

Buildings, structures and Right-of-use
assetsGU

GU (Shanghai) Trading Co., Ltd. stores

Buildings, structures and Right-of-use
assetsCOMPTOIR DES COTONNIERS S.A.S.,

Buildings, structures and Right-of-use

etc., stores

assetsGlobal Brands

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assetsSix months ended 28 February 2022
Property, plant and equipment and Right-of-use assets
Impairment losses amounting to 6,086 million yen represented write downs of the carrying amounts of store assets to therecoverable amounts, primarily due to a reduction in profitability of certain stores, including flagship stores. With the global spreadof COVID-19, the Group's performance has been adversely affected due to temporarily closing of the stores, etc. Although thetiming 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 for the fiscal year ending August 2022 for most countries and regions including Japan. For
stores in other certain countries and regions, it may take longer for the situation to get under control.
The grouping of assets is based on the smallest identifiable CGU that independently generates cash inflow. In principle, each store,
including flagship stores, is considered as an individual CGU and recoverable amounts thereon are calculated based on value in use.
The value in use is calculated based on the cash flow projections with estimates and growth rates approved by management,
applying a discount rate of mainly 11.8%. Theoretically, the projected cash flows cover a five-year period, and do not use a growthrate that exceeds the long-term average market growth rate. The pre-tax discount rate calculation is based on the weighted-average
cost of capital.
The main CGUs for which impairment losses were recorded are as follows:

Operating segment

CGU

Type

FAST RETAILING (CHINA) TRADINGUNIQLO International

CO., LTD., LLC UNIQLO (RUS),
UNIQLO USA LLC, etc., stores

GU

G.U. CO., LTD., etc., stores

Global Brands

Buildings, structures and Right-of-use
assets etc.
Buildings, structures and Right-of-use
assets etc.

COMPTOIR DES COTONNIERS S.A.S.,

Buildings, structures and Right-of-use

etc., stores

assets etc.

9. Dividends
The total amount of dividends paid was as follows:
For the six months ended 28 February 2021
Resolution
Meeting of the Board on 4 November 2020

Total dividends(Millions of yen)

Dividends per share(Yen)

24,504240

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 six months ended 28 February 2022
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 for shareholders
as at 31 August 2021.
Dividends on common stock declared subsequent to 28 February 2022 are as follows:

Total dividends (Million yen)
Dividends per share (yen)Six months ended
28 February 2021

Six months ended
28 February 2022

24,511

28,608240

280

The Board has approved the dividends on common stock subsequent to 28 February 2022, and the amount is not recognized as aliability as at 28 February 2022.
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10. 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.
Six months ended 28 February 2021
Revenue(Millions of yen)

Percent of Total
(%)

Japan

492,519

40.9

Greater China

310,807

25.8

Other parts of Asia & Oceania

110,032

9.1

North America & Europe

100,986

8.4

1,014,346

84.3

GU (Note 2)

132,671

11.0

Global Brands (Note 3)

54,561

4.5

Others (Note 4)

1,284

0.1

1,202,864

100.0

UNIQLO (Note 1)

Total(Note 1) Revenue is classified by nation or region based on customer location.
The designated countries and regions 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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Six months ended 28 February 2022
Revenue(Millions of yen)

Percent of Total
(%)

Japan

442,513

36.3

Greater China

306,773

25.2

Other parts of Asia & Oceania

136,891

11.2

North America & Europe

149,598

12.3

1,035,777

85.0

GU (Note 2)

122,824

10.1

Global Brands (Note 3)

58,994

4.8

Others (Note 4)

1,381

0.1

1,218,977

100.0

UNIQLO (Note 1)

Total(Note 1) Revenue is classified by nation or region based on customer location.
The designated countries and regions 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.
11. Selling, General and Administrative Expenses
The breakdown of selling, general and administrative expenses for each reporting period is as follows:(Millions of yen)Six months ended
28 February 2021

Six months ended
28 February 2022

Advertising and promotion

36,17041,719Lease expenses

35,45640,172

Depreciation and amortization

89,00488,254

Outsourcing

25,177

27,230

Salaries

141,353

146,464

Distribution

50,29549,995

Others43,29245,427420,750439,265

Selling, general and administrative expenses

Total

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12. Other Income and Other Expenses
The breakdown of other income and other expenses for each reporting period is as follows:(Millions of yen)Six months ended
28 February 2021

Six months ended
28 February 2022

Foreign exchange gains (Note)

2,366

2,197

Others

2,079

4,454

4,446

6,652

Other income

Total(Millions of yen)Six months ended
28 February 2021

Six months ended
28 February 2022

609

663

Impairment losses

11,696

6,086

Others

4,207

1,020

16,512

7,770

Other expenses
Loss on retirement of property, plant and equipment

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

Six months ended
28 February 2022

Foreign exchange gains (Note)

4,740

23,576

Interest income

2,301

3,059

16

58

7,059

26,694

Finance income

Others
Total(Millions of yen)Six months ended
28 February 2021

Six months ended
28 February 2022

3,551

3,359

7

48

3,559

3,407

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

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14. Earnings per ShareSix months ended 28 February 2021

Six months ended 28 February 2022

Equity per share attributable to ownersof the Parent (Yen)

10,342.04

Equity per share attributable to ownersof the Parent (Yen)

12,469.85

Basic earnings per share (Yen)

1,036.76

Basic earnings per share (Yen)

1,437.41

Diluted earnings per share (Yen)

1,035.04

Diluted earnings per share (Yen)

1,435.21(Note) The basis for calculation of basic earnings per share and diluted earnings per share is as follows:
Six months ended
28 February 2021

Six months ended
28 February 2022

105,868

146,844--

105,868

146,844

102,114,907

102,158,795--

Increase in number of common stock (Shares)

169,788

156,763(Number of share subscription rights included in increase)(169,788)(156,763)

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)Three months ended 28 February 2021

Three months ended 28 February 2022

Basic earnings per share (Yen)

347.49Basic earnings per share (Yen)

521.23

Diluted earnings per share (Yen)

346.91

Diluted earnings per share (Yen)

520.41(Note) The basis for calculation of basic earnings per share and diluted earnings per share is as follows:
Three months ended
28 February 2021

Three months ended
28 February 2022

35,48753,252--35,48753,252102,123,125

102,166,864--

Increase in number of common stock (Shares)

172,120

160,255(Number of share subscription rights included in increase)(172,120)(160,255)

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)

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15. 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 28 February 2022

Carrying
amounts

Fair value

Carrying
amounts

Fair value

64,50265,35864,806

65,20264,50265,35864,806

65,202369,471375,144369,530

371,913369,471375,144369,530

371,913

Financial assets:
Security deposits and guarantees
Total
Financial liabilities:
Corporate bonds
Total(Note) The amount above includes the outstanding balance of corporate bonds due within one year.
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 security deposits and guarantees and corporate bonds are classified as Level 2.
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.

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35

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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
through other comprehensive income

Level 2

Level 3

Total

808

-

199

1,008

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

-

(71)

-

(71)

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

46,190-46,190Fair value

808

46,118

199

47,127(Millions of yen)
As at 28 February 2022

Level 1

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

Level 3

Total

482

-

200

682

-

(99)

-

(99)

-

68,550-68,550482

68,450200

69,132

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

Level 2For 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.
16. Commitments for Expenditures
The Group had the following commitments at each reporting date:(Millions of yen)
As at
31 August 2021

As at
28 February 2022

Commitment for the acquisition of property, plant and equipment

21,49233,336

Commitment for the acquisition of intangible assets

1,487

2,910

22,97936,247Total

17. Subsequent Events
Not applicable.

2. Others
Dividends
The Company resolved to pay dividends from retained earnings at the meeting of the Board convened on 14 April 2022.
The total amount of dividends paid and the amount per share are stated under “Financial Section 1. Interim Condensed
Consolidated Financial Statements, Notes to the Interim Condensed Consolidated Financial Statements 9. Dividends.”

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36

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(TRANSLATION)
Independent accountant’s review report
14 April 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 28 February 2022, theinterim condensed consolidated statement of profit or loss and interim condensed consolidated statement of comprehensive income forthe three-month and six-month periods then ended, the interim condensed consolidated statement of changes in equity and the interim
condensed consolidated statement of cash flows for the six-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 28
February 2022, and its consolidated financial performance for the three-month and six-month periods then ended and its consolidated
cash flows for the six-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.

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37

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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.

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