FAST RETAILING CO., LTD.
迅銷有限公司Interim Report 2018/19
2018.9.1–2019.2.28
Stock Code: 6288

Contents
Corporate Profile

2

Financial Highlights

3Management Discussion and Analysis

5

Information about the Reporting Entity

8

Financial Section

12

1.

Interim Condensed Consolidated Financial Statements

13

(1)

Interim Condensed Consolidated Statement of
Financial Position

13

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

14Interim Condensed Consolidated Statement of Profit or Loss

14

Interim Condensed Consolidated Statement ofComprehensive Income

16Interim Condensed Consolidated Statement of
Changes in Equity

18

(4)

Interim Condensed Consolidated Statement of Cash Flows

20

2.

Others

32

(2)

(3)

Independent Accountant’s Review Report

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

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

Independent Directors
Toru Hambayashi (External)
Nobumichi Hattori (External)
Masaaki Shintaku (External)
Takashi Nawa (External)
Naotake Ohno (External)

Principal Place of Business in Hong Kong
702–706, 7th Floor, Mira Place Tower A
No. 132 Nathan Road
Tsim Sha Tsui
KowloonHong Kong

Directors
Takeshi Okazaki
Kazumi Yanai
Koji Yanai

HDR Registrar and HDR Transfer OfficeComputershare Hong Kong Investor Services Limited
Shops 1712–1716, 17th Floor,
Hopewell Centre
183 Queen’s Road East
WanchaiHong Kong

Audit & Supervisory Board Members
Akira Tanaka
Masaaki Shinjo
Takaharu Yasumoto (External)
Keiko Kaneko (External)
Takao Kashitani (External)

Stock CodeHong Kong: 6288
Japan: 9983

Company Secretary
Shea Yee Man

Website Address
https://www.fastretailing.com

External 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
717-1 Sayama, Yamaguchi City,
Yamaguchi 754-0894
Japan

—2—

Financial Highlights
Consolidated Financial Summary

Term

57th Fiscal
Year

58th Fiscal
Year

57th Fiscal
Year

Accounting period

Six months
ended
28 February
2018

Six months
ended
28 February
2019

Year ended
31 August
2018

Revenue (Millions of yen)

1,186,765

1,267,697

2,130,060

Operating profit (Millions of yen)

170,492

172,941

236,212

Profit before income taxes (Millions of yen)

165,196

174,214242,678

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

104,150

114,029

154,811Comprehensive income (loss) attributable to ownersof the Parent (Millions of yen)

78,846

120,920

165,378

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

796,650

961,680

862,936

1,621,507

2,015,201

1,953,466

Basic earnings per share (Yen)

1,021.16

1,117.54

1,517.71

Diluted earnings per share (Yen)

1,019.36

1,115.67

1,515.23

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

49.1

47.7

44.2

220,245

230,899

176,403

Net cash (used in) generated by investing activities (Millions of yen)

(25,196)(59,688)(57,180)

Net cash (used in) generated by financing activities (Millions of yen)

(21,998)(63,240)

198,217

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

848,658

1,111,067

999,697

Three months
ended
28 February
2018

Three months
ended
28 February
2019

Revenue (Millions of yen)

569,738

623,230

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

25,61040,552

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

251.09397.40Accounting period(Notes)1. FAST RETAILING CO., LTD. (the “Company”, “Parent”, or “reporting entity”) prepared interim condensed consolidated
financial statements and therefore has not included the nonconsolidated financial summary of the reporting entity.
2. Revenue does not include consumption taxes, etc.
3. The financial figures are quoted from the interim condensed consolidated financial statements or consolidated
financial statements prepared in accordance with International Financial Reporting Standards (“IFRS”).

—3—

Business Description
There were no significant changes in the nature of the business engaged in by the Company and its subsidiaries (collectively, the“Group”) during the six months ended 28 February 2019.
In addition, there were no significant changes in the organizational structure of the Group, including the major subsidiaries,
during the six months ended 28 February 2019.

—4—

Management Discussion and Analysis
Business Review
1. Business and Operational Risks
No new business-related risks have arisen during the six months ended 28 February 2019.
There have been no significant changes concerning business-related risks as stated in the annual report for the preceding
consolidated fiscal year.

2.

Financial Analysis(1)

Results of Operations
The Fast Retailing Group reported rises in both revenue and profit in the first half of fiscal 2019, or the six months from
1 September 2018 to 28 February 2019. Consolidated revenue increased to 1.2676 trillion yen (+6.8% year-on-year),
operating profit expanded to 172.9 billion yen (+1.4% year-on-year), profit before income taxes totaled 174.2 billion
yen (+5.5% year-on-year), and profit attributable to owners of the parent rose to 114.0 billion yen (+9.5% year-on-year).
Of those data, first-half revenue, operating profit, profit before income taxes and profit attributable to owners of theparent reached new record levels.
The Group’s medium-term vision is to become the world’s number one apparel retailer. In pursuit of this aim, we arefocusing our efforts on expanding UNIQLO International and our GU casual fashion brand. We continue to increase
UNIQLO store numbers in each country in which we operate, and open global flagship stores and large-format stores inmajor cities around the world to further develop UNIQLO as a global brand. Within the UNIQLO International segment,
Greater China (Mainland China, Hong Kong and Taiwan) and Southeast Asia are entering a new stage of growth as key
drivers of operational expansion. UNIQLO USA is working steadily towards turning a profit in fiscal 2019. In terms of our
GU operation, we plan to open more GU stores in Japan, while expanding the brand’s international presence, primarily inGreater China and South Korea.
UNIQLO Japan
UNIQLO Japan reported declines in both revenue and profit in the first half of fiscal 2019, with revenue totaling
491.3 billion yen (-0.5% year-on-year) and operating profit totaling 67.7 billion yen (-23.7% year-on-year). First-half samestore sales, including online sales, declined 0.9% year-on-year. While sales of core Winter items struggled overall in theface of especially warm winter in October and November, sales of Winter ranges such as HEATTECH, down, and fleece
picked up strongly once the weather turned colder in December and January, and Spring ranges such as sweat wear,
legging pants, and BLOCKTECH got off to a favorable start in February. Meanwhile, online sales continued to rise strongly,
expanding by an impressive 30.3% year-on-year in the first half, and expanding their proportion of total sales from 7.5%
to 9.9% of total sales. On the profit front, the continued rise in cost of sales due to a weakening in internal yen exchange
rates, along with stronger discounting of Winter items, resulted in a 3.3 point year-on-year decline in the gross profit
margin. In addition, the selling, general and administrative expense ratio increased by 1.0 points year-on-year. While
new IC tags (radio frequency identification) helped increase productivity and reduce the personnel-to-net-sales ratio, thedistribution-to-net-sales ratio rose on the back of expanding online sales, and the other expenses-to-net-sale ratio roseon the back of higher IT investment relating to our ongoing transformative Ariake Project. In October 2018, the Ariake
distribution center started operating as a fully automated dedicated online sales warehouse.
UNIQLO International
UNIQLO International revenue and profit rose in the first half of fiscal 2019, with revenue expanding to 580.0 billion yen(+14.3% year-on-year) and operating profit increasing to 88.4 billion yen (+9.6% year-on-year). In terms of individual
markets, UNIQLO Greater China generated double-digit growth in both revenue and profit in the first half of the financial
year despite the dampening effect of the mild winter weather. Within that region, our operation in Mainland China
continued to report strong growth in revenue and profit of approximately 20% year-on-year. UNIQLO South Korea also
reported increases in both revenue and profit. UNIQLO Southeast Asia & Oceania generated significant rises in bothrevenue and profit thanks to strong increases in same-store sales in every single one of the region’s markets. UNIQLO USA
generated an operating profit in the first half. UNIQLO Europe reported a steady first-half performance. In terms of newstore activity, UNIQLO International opened its first store in the Netherlands in Amsterdam in September 2018, and its
biggest Southeast Asian global flagship store in Manila, the Philippines in October 2018.
GUThe GU business segment achieved significantly higher revenue and profit in the first half of fiscal 2019, with revenue
climbing to 117.1 billion yen (+10.7% year-on-year) and operating profit rising to 14.1 billion yen (+54.3% year-on-year).
GU same-store sales rose as determined action to create mass-trend focused product mixes and pursue complementary
TV and web marketing helped put the operation on a firm recovery track. The GU gross profit margin increased by
3.0 points year-on-year thanks to strong sales, strict control over discounting, and lower cost of sales resulting fromaggregate purchasing of raw materials. This and a 0.5 point year-on-year improvement in the selling, general andadministrative expense ratio helped generate the impressive rise in operating profit.

—5—

Global Brands
Global Brands revenue declined while profit rose in the first half of fiscal 2019, with revenue totaling 77.7 billion yen(-0.9% year-on-year) and operating profit standing at 3.1 billion yen (compared to a 5.6 billion yen loss in the first half offiscal 2018). The Theory fashion operation reported a considerable increase in profit, thanks to strong sales at the Theory
operation in the United States. Meanwhile, the France-based Comptoir des Cotonniers fashion brand reported anotherloss on the back of continued sluggish sales.
Sustainability
In keeping with our key sustainability message, “Unlocking the power of clothing,” Fast Retailing aims to contribute to
the sustainable development of global society through our core clothing business. Fast Retailing’s sustainability activities
seek to promote human rights, environmental protection and broader social contributions within six clear material areas:
Create new value through products and services Respect human rights in our supply chain Respect the environment
Strengthen communities Support employee fulfillment and Corporate governance.
As a company with expanding global operations, we strive to uphold human rights by determining our own Fast RetailingGroup Human Rights Policy that aligns closely with the UN Guiding Principles on Business and Human Rights andother international human rights principles and declarations. Across our supply chain, we use our Code of Conduct for
Production Partners as a template to audit partner sewing factories and key fabric manufacturers on human rights abuses,
poor labor conditions, environmental preservation practices and other issues and then disclose the results of these audits.
In 2015, we joined the US-based non-profit Fair Labor Association (“FLA”) with the aim of protecting worker rights andbringing working environments in line with international standards. Fast Retailing asked FLA to monitor our working
environments and give guidance to help improve our own programs. In February 2019, FLA recognized Fast Retailing’s
program for monitoring working environments across the supply chain as meeting FLA standards on both structure andprocedure. Also in February 2019, Fast Retailing declared its support for the footwear and apparel industry’s Commitment
to Responsible Recruitment compiled in October 2018 by FLA and the American Apparel & Footwear Association(“AAFA”). The commitment is an industrywide pledge to reduce potential forced labor risk for migrant workers in the
global supply chain, such as workers having to pay for their job and we at Fast Retailing are working together with ourpartner factories to ensure compliance.
In terms of environmental protection, we continue our efforts to reduce greenhouse gas emissions across our stores,
offices and supply chain as part of our climate change response. For instance, we are cutting greenhouse gas emissions
per unit area by introducing LED lighting in UNIQLO stores and GU Japan stores. In February 2019, we committed toestablish science-based targets (“SBT”) within two years. SBT are tools to help to reduce greenhouse gas emissions basedon targets laid out in the Paris Agreement on climate change.
(2)

Financial Position
Total assets as at 28 February 2019 were 2,015.2 billion yen, which was an increase of 61.7 billion yen relative to total
assets at the end of the preceding consolidated fiscal year. The principal factors were an increase of 111.3 billion yen
in cash and cash equivalents, an increase of 23.1 billion yen in other financial assets, an increase of 11.9 billion yen in
intangible assets and a decrease of 85.6 billion yen in inventories.
Total liabilities as at 28 February 2019 were 1,005.7 billion yen, which was a decrease of 44.9 billion yen relative to total
liabilities at the end of the preceding consolidated fiscal year. The principal factors were a decrease of 52.6 billion yen in
trade and other payables, a decrease of 11.5 billion yen in other current financial liabilities and an increase of 17.9 billion
yen in current tax liabilities.
Total net assets as at 28 February 2019 were 1,009.4 billion yen, which was an increase of 106.6 billion yen relative tototal net assets at the end of the preceding consolidated fiscal year. The principal factor was an increase of 89.5 billion
yen in retained earnings.

(3)

Cash Flow Information
Cash and cash equivalents as at 28 February 2019 increased by 111.3 billion yen from the end of the preceding
consolidated fiscal year to 1,111.0 billion yen.
(Operating Cash Flows)
Net cash generated by operating activities for the six months ended 28 February 2019 was 230.8 billion yen (anincrease by 4.8% from the six months ended 28 February 2018), which was an increase of 10.6 billion yen from the six
months ended 28 February 2018. The principal factors were a decrease of 87.2 billion yen in inventories (an increase of
66.7 billion yen from the six months ended 28 February 2018), a decrease of 52.5 billion yen in trade and other payables(an increase of 17.9 billion yen from the six months ended 28 February 2018), a decrease of 9.0 billion yen in other assets(an increase of 74.8 billion yen from the six months ended 28 February 2018) and an increase of 19.7 billion yen in otherliabilities (a decrease of 150.3 billion yen from the six months ended 28 February 2018).
—6—

(Investing Cash Flows)
Net cash used in investing activities for the six months ended 28 February 2019 was 59.6 billion yen (an increase by
136.9% from the six months ended 28 February 2018), which was an increase of 34.4 billion yen from the six months
ended 28 February 2018. The principal factors were 24.3 billion yen in bank deposits with original maturities overthree months or longer (an increase of 22.7 billion yen from the six months ended 28 February 2018), 21.0 billion yen
in payments for property, plant and equipment (an increase of 7.1 billion yen from the six months ended 28 February2018) and 11.9 billion yen in payments for intangible assets (an decrease of 5.6 billion yen from the six months ended
28 February 2018).
(Financing Cash Flows)
Net cash used in financing activities for the six months ended 28 February 2019 was 63.2 billion yen (an increase by
187.5% from the six months ended 28 February 2018), which was an increase of 41.2 billion yen from the six months
ended 28 February 2018. The principal factor was 30.0 billion yen in Repayment of redemption of bonds (an increase of
30.0 billion yen from the six months ended 28 February 2018).
(4)

Operational and Financial Challenges
There have been no significant challenges during the six months ended 28 February 2019 that resulted in issues that must
be addressed by the Group.

(5)

Research and Development
Not applicable.

(6)

Significant Facilities
The following are the significant facilities that were planned as at the end of the preceding consolidated fiscal year andnewly completed during the six months ended 28 February 2019.

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

Type of facility

Name of business

Location

Completion date

FAST RETAILING PHILIPPINES, INC.

UNIQLOInternational Stores

UNIQLO Manila
Global FlagshipStore

UNIQLO CANADA INC.

UNIQLOInternational Stores

UNIQLO
Vaughan Mills

City of Vaughan,
CanadaSeptember 2018

UNIQLO EUROPE LIMITEDUNIQLOInternational Stores

UNIQLO Köln

Cologne, Germany

October 2018

UNIQLO EUROPE LIMITEDUNIQLOInternational Stores

UNIQLO Kalverstraat

Amsterdam,
The Netherlands

September 2018

UNIQLO HAWAII INC.

UNIQLOInternational Stores

UNIQLO Ala Moana

Hawaii, USA

January 2019

Manila, Philippines

October 2018

The main new facility plans included in the plans described above are as follows.
Amount of planned
investment
Company name

G.U. CO., LTD.

Type of facility

GU
Japan stores

Name ofbusiness

Location

GU Shibuya

Shibuya,
Japan

Total
(Millions of
yen)
505

AmountConstruction Construction Planned sales
Reference
already
startcompletion floor area (m2)disbursed(Millions ofyen)
13

December
2018

March 2019

(Notes) 1. It is expected that the Group will be able to meet its funding needs from equity capital.
2. The above figures do not include consumption tax, etc.

3. Significant Contracts in Business Operation
None.
—7—

1,812

Lease hold

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

Total number of shares
Type

(ii)

Total number of authorized shares

Common stock

300,000,000

Total

300,000,000

Shares Issued

Type

Number of shares issued
as at 28 February 2019

Number of shares issued
as at submission date
(As at 12 April 2019)

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

Remarks

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

100 sharesas one unit

Common stock

106,073,656

106,073,656

Total

106,073,656

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

(2)

Share Subscription Rights
Not applicable.

(3)

Exercise of convertible bonds with conditional permission for adjustment of exercise priceNot applicable.

(4)

Change in Total Number of Shares Issued, Capital Stock, Etc.

Date

1 September 2018 to
28 February 2019

Increase
Increase
Increase
Balance of total
Balance ofBalance of(decrease) of(decrease) of(decrease) of
number ofcapital stock
capital reserve
total number ofcapital stock
capital reserve
shares issued(Millions of yen)
(Millions of yen)shares issued(Millions of yen)
(Millions of yen)—

106,073,656—

10,273—

4,578(Note) There was no change in the total number of shares issued, capital stock or capital reserve during the three months ended
28 February 2019.

—8—

(5)

Major Shareholders
As at 28 February 2019

Name or trade nameLocation

Number ofshares held

As a percentage
over total(in thousandsof shares)

number ofshares (excluding
treasury stock)

Tadashi Yanai

Shibuya-ku, Tokyo

22,037

21.59

The Master Trust Bank of Japan, Ltd.

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

21,16920.74

Japan Trustee Services Bank, Ltd.

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

11,612

11.38

TTY Management B.V.

Hoogoorddreef 15, 1101BA Amsterdam,
The Netherlands

5,310

5.20

Kazumi Yanai

New York, U.S.A.

4,781

4.69

Koji Yanai

Shibuya-ku, Tokyo

4,780

4.68

Fight & Step Co., Ltd.

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

4,750

4.65

Trust & Custody Services Bank, Ltd.

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

3,820

3.74

MASTERMIND, LLC

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

3,610

3.54

Teruyo Yanai

Shibuya-ku, Tokyo

2,327

2.28

84,201

82.51

Total
(Notes)―1. “Number of shares held” is rounded down to the nearest unit of thousand shares.
2. The shares held by The Master Trust Bank of Japan, Ltd., Japan Trustee Services Bank, Ltd. and Trust & Custody
Services Bank, Ltd. are all held in conjunction with trust businesses.
3. According to the report of large shareholdings (report of change of composition) submitted on 29 October 2018 by
Mitsubishi UFJ Financial Group, Inc. and the three parties of Mitsubishi UFJ Trust and Banking Co., Ltd., Mitsubishi
UFJ Kokusai Asset Management Co., Ltd. and Mitsubishi UFJ Morgan Stanley Securities Co., Ltd., which are all joint
shareholders, each party held the shares stated below as at 22 October 2018. However, since the Company has notbeen able to confirm the number of shares actually held as at 28 February 2019, these shareholdings have not 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

Mitsubishi UFJ Trust and Banking Co., Ltd.

1-4-5 Marunouchi, Chiyoda-ku, Tokyo

903

0.85

Mitsubishi UFJ Kokusai AssetManagement Co., Ltd.

1-12-1 Yurakucho, Chiyoda-ku, Tokyo

2,834

2.67

Mitsubishi UFJ Morgan Stanley
Securities Co., Ltd.

1-9-2 Otemachi, Chiyoda-ku, Tokyo

700

0.66

4. According to the report of large shareholdings (report of change of composition) submitted on 20 December 2018
by Sumitomo Mitsui Trust Bank, Limited and the two parties of Sumitomo Mitsui Trust Asset Management Co.,
Ltd. and Nikko Asset Management Co., Ltd., which are all joint shareholders, each party held the shares statedbelow as at 14 December 2018. However, since the Company has not been able to confirm the number of sharesactually held as at 28 February 2019, these shareholdings have not 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

Sumitomo Mitsui Trust AssetManagement Co., Ltd.

1-1-1 Shibakoen, Minato-ku, Tokyo

1,240

1.17

Nikko Asset Management Co., Ltd.

9-7-1 Akasaka, Minato-ku, Tokyo

5,938

5.60

—9—

5. According to the report of large shareholdings (report of change of composition) submitted on 27 February 2019by Nomura Securities Co., Ltd. and Nomura Asset Management Co., Ltd., which are all joint shareholders, eachparty held the shares stated below as at 20 February 2019. However, since the Company has not been able toconfirm the number of shares actually held as at 28 February 2019, these shareholdings have not 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.

1-9-1 Nihonbashi, Chuo-ku, Tokyo

190

0.18

Nomura Asset Management Co., Ltd.

1-12-1 Nihonbashi, Chuo-ku, Tokyo

11,500

11.02

6. According to the report of large shareholdings submitted on 6 March 2019 by Daiwa Asset Management Co.
Ltd. and Daiwa Securities Co. Ltd., which are all joint holders, each party held the shares stated below as at
28 February 2019. However, since the Company has not been able to confirm the number of shares actually held
as at 28 February 2019, these shareholdings have not 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

Daiwa Asset Management Co. Ltd.

1-9-1 Marunouchi, Chiyoda-ku, Tokyo

5,222

4.92

Daiwa Securities Co. Ltd.

1-9-1 Marunouchi, Chiyoda-ku, Tokyo

118

0.11

7. In addition to the above, 4,022,730 shares of treasury stock are held by the Company (3.79% of the total numberof outstanding shares).

(6)

Voting Rights(i)

Shares issued
As at 28 February 2019
Number of shares

Number of voting rights

Remarks

Non-voting shares

Class

—

—

—

Shares subject to restrictions on voting rights(i.e., treasury stock, etc.)

—

—

—

Shares subject to restrictions on voting rights(i.e., other than treasury stock)

—

—

—

Shares with full voting rights(i.e., treasury stock, etc.)(Shares held astreasury stock)
Common stock
4,022,700——

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

Common stock
101,989,900

Shares less than one unit

Common stock
61,056

Total number of shares issued

106,073,656

Total number of voting rights of allshareholders—(Note 1)

(Note 2)

1,019,899—(Note 1)
(Notes 1 and 2)——
1,019,899—

The columns for the number of shares of “Shares with full voting rights (i.e., other than treasury stock)” and “Sharesless than one unit” include 2,700 shares and 84 shares, respectively, held in the name of Japan Securities Depository
Center, Inc.
Common stock in the “Shares less than one unit” row includes 30 shares of treasury stock held by the Company.

— 10 —

(ii)Treasury StockAs at 28 February 2019

Name or trade name ofholderFASTLTD.

RETAILING

Total

2.

CO.,

Number ofshares held in
own name

Number ofshares held inother’s name

Total number ofshares held

Percentage of
total number ofshares issued

717-1 Sayama,
Yamaguchi-shi,
Yamaguchi

4,022,700—

4,022,700

3.79—

4,022,700—

4,022,700

3.79

Holder’s address

Directors
Since the submission of the year-end report for the preceding consolidated fiscal year, there has been no change ofdirectors during the six months ended 28 February 2019.

— 11 —

Financial Section
1. Preparation of Interim Condensed Consolidated Financial Statements
The interim condensed consolidated financial statements of the Group, namely, the interim condensed consolidated statementof financial position of the Group as at 28 February 2019, the related interim condensed consolidated statements of profit orloss and interim condensed consolidated statement of comprehensive income for the three-month and six-month periods thenended, and the interim condensed consolidated statements of changes in equity and cash flows for the six-month period thenended (collectively, the “interim condensed consolidated financial statements”) were prepared in compliance with International
Accounting Standard 34, “Interim Financial Reporting” (“IAS 34”), pursuant to Article 93 of the “Rules Governing Term, Formand 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.

— 12 —

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

1. Interim Condensed Consolidated Financial Statements(1) Interim Condensed Consolidated Statement of Financial Position(Millions of yen)
Notes
ASSETS
Current assets
Cash and cash equivalents
Trade and other receivables
Other financial assets
Inventories
Derivative financial assets
Income taxes receivable

As at 31 August 2018

As at 28 February 2019

999,697
52,67735,359464,788
35,5191,702
28,353

1,111,067
56,67158,541
379,104
38,465
2,172
20,317

1,618,097

1,666,339

155,077
8,092
46,002
79,476

157,404
8,092
57,93877,577

Other assets

14,64926,378
5,691

14,62524,565
8,657

Total non-current assets

335,368

348,861

1,953,466

2,015,201

214,542
171,854
6,917
21,503
11,86872,722

161,878
160,306
2,838
39,43613,143
77,975499,410455,578502,671
18,912
13,003
16,690499,272
18,72914,915
17,27816
6
16

Other assets
Total current assets
Non-current assets
Property, plant and equipment
Goodwill
Intangible assets
Financial assets
Investments in associates accounted
for using the equity method
Deferred tax assets

7,8
8
8
16

Total assets
Liabilities and equity
LIABILITIESCurrent liabilities
Trade and other payables
Other financial liabilities
Derivative financial liabilities
Current tax liabilities
Provisions

9,16
16

Other liabilities
Total current liabilities
Non-current liabilities
Financial liabilities
Provisions
Deferred tax liabilities

9,16

Other liabilities
Total non-current liabilities
Total liabilities
EQUITY
Capital stock
Capital surplus
Retained earnings
Treasury stock, at cost
Other components of equity
Equity attributable to owners of the Parent
Non-controlling interests
Total equity
Total liabilities and equity— 13 —

551,277

550,194

1,050,688

1,005,773

10,273
18,275815,146(15,429)
34,66910,273
20,466904,690(15,312)41,561

862,936
39,841

961,680
47,748902,777

1,009,428

1,953,466

2,015,201

(2) Interim Condensed Consolidated Statement of Profit or Loss and Interim Condensed Consolidated Statement ofComprehensive Income
Interim Condensed Consolidated Statement of Profit or Loss
Six months ended 28 February 2019
(Millions of yen)Six months ended
28 February 2018

Notes
Revenue11

Six months ended
28 February 2019

1,186,765(601,126)

1,267,697(660,923)

585,638(403,638)
910(12,688)606,773(433,463)
2,106(2,738)270264

170,492
3,009(8,305)

172,9415,413(4,140)

Income tax expense

165,196(51,549)

174,214(49,283)

Profit for the period

113,646

124,930

104,150
9,495

114,029
10,901

113,646

124,930

1,021.16
1,019.36

1,117.54
1,115.67

Cost of sales
Gross profit
Selling, general and administrative expenses
Other income
Other expenses
Share of profit and loss of associates accounted
for using the equity method

12
13
8,13

Operating profit
Finance income

14

Finance costs

14

Profit before income taxes

Profit for the period attributable to:
Owners of the Parent
Non-controlling interests
Earnings per share
Basic (yen)Diluted (yen)1515— 14 —

Three months ended 28 February 2019
(Millions of yen)
Notes

Three months ended
28 February 2018

Revenue
Cost of sales
Gross profit
Selling, general and administrative expenses
Other income
Other expenses
Share of profit and loss of associates accounted
for using the equity method

Three months ended
28 February 2019569,738(301,165)

623,230(341,265)

268,573(199,412)
645(13,312)281,964(211,948)
1,688(3,503)

97

74

Operating profit
Finance income

56,591
1,267

68,276
2,883

Finance costs(10,495)(8,031)

Profit before income taxes
Income tax expense

47,363(18,363)

63,127(18,482)

Profit for the period

29,00044,64425,6103,389

40,552
4,092

29,00044,644251.09250.65397.40396.72

Profit for the period attributable to:
Owners of the Parent
Non-controlling interests
Earnings per share
Basic (yen)Diluted (yen)1515— 15 —

Interim Condensed Consolidated Statement of Comprehensive Income
Six months ended 28 February 2019
(Millions of yen)Six months ended
28 February 2018
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
Net fair value gain (loss) on available-for-sales
financial assets during the period
Exchange differences on translating
foreign operations
Cash flow hedges
Share of other comprehensive income of associates
Total items that may be reclassified subsequently to
profit or loss

Six months ended
28 February 2019113,646

124,930

—

(223)

—

(223)

804

—

(2,140)(24,604)
—

3,493
3,731
17

(25,940)

7,243(25,940)

7,019

87,705

131,950

Non-controlling interests

78,846
8,859

120,920
11,029Total comprehensive income (loss) for the period

87,705

131,950

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

Three months ended 28 February 2019
(Millions of yen)Three months ended
28 February 2018
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
Net fair value gain (loss) on available-for-sales
financial assets during the period
Exchange differences on translating
foreign operations
Cash flow hedges

Three months ended
28 February 2019

29,00044,644

—

(107)

—

(107)

854

—

(9,284)(28,380)—(3,342)(13,076)(1)(36,809)(16,419)(36,809)(16,526)(7,809)28,118Non-controlling interests(9,718)
1,909

24,8483,269

Total comprehensive income (loss) for the period(7,809)28,118

Share of other comprehensive income of associates
Total items that may be reclassified subsequently to
profit or loss
Other comprehensive income (loss), net of income tax
Total comprehensive income (loss) for the period
Attributable to:
Owners of the Parent— 17 —

(3) Interim Condensed Consolidated Statement of Changes in Equity
For the six months ended 28 February 2018
(Millions of yen)
Other components of equity

Equityattributableto owners
Nonof the controlling
Total
Parentinterests

Total
equityCapitalstock

CapitalsurplusRetainedearnings

Foreign
Share of other
Treasury Available- currency Cash flow comprehensive
stock,
for-sale translation
hedge
income ofat costreserve
reserve
reserveassociates

As at 1 September 2017
Net changes during
the period
Comprehensive income

10,273

14,373

698,584(15,563)2

21,806

2,293—

24,102

731,770

30,272762,043

Profit for the period
Other comprehensive
income (loss)
Total comprehensive
income (loss)
Transactions withthe owners of the Parent
Disposal oftreasury stock——

104,150

—

—

—

—

—

—

104,150

9,495

113,646

—

—

—

—

804

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

104,150—804(2,502)(23,605)—(25,304)

78,846

8,859

87,705

—
—
—

782

—

91

—

—

874

(17,847)———(17,847)(2,916)(20,763)

—

—

—

—

—
—
—

—

—

—
—
—

874

1,132

—
—
—

1,132

—

1,132

—

—

—

—

—

—

—

—

—

—

173

173

—

1,874

—

—

—

—

—

—

—

1,874

1,754

3,629

—

3,789

(17,847)

91

—

—

—

—

—

(13,966)(987)(14,954)—

3,789

86,30391804(2,502)(23,605)—(25,304)

64,8807,871

72,751

10,273

18,163784,887(15,472)806

19,303(21,312)—(1,201)

796,650

38,144

834,794

Note

Dividends
Share-based payments
Increase in equity due
to capital increase by
consolidated subsidiary
Changes in ownershipinterests in subsidiaries
without losing control
Total transactions withthe owners of the Parent
Total net changes during
the period
As at 28 February 201810

— 18 —

For the six months ended 28 February 2019
(Millions of yen)
Other components of equity

Capitalstock

Financial assets
measured
at fair value
Foreign
Share of other
Treasury through othercurrency Cash flow comprehensive
Capital Retained stock, at comprehensive translation
hedge
income ofsurplus earnings
cost
incomereserve reserve
associates

Equityattributableto owners
Nonof the controlling
Total
Parent interest

As at 1 September 2018
Net changes during
the period
Comprehensive income

10,273

18,275815,146(15,429)37

15,42919,202—

34,669862,936

39,841

902,777

Profit for the period
Other comprehensive
income (loss)
Total comprehensive
income (loss)
Transactions with theowners of the Parent
Acquisition of treasury
stock
Disposal of treasury
stock
Dividends——

114,029

—

—

—

—

—

—

114,029

10,901

124,930

—

—

—

—

(223)

3,489

3,608

17

6,891

6,891

127

7,019

—

—

114,029

—

(223)

3,489

3,608

17

6,891

120,920

11,029131,950

—

—

—

(2)

—

—

—

—

—

(2)

—

(2)

—
—

1,109
—

—
(24,484)

118
—

—
—

—
—

—
—

—
—

—
—

1,228
(24,484)—(3,531)(28,016)

—

1,081

—

—

—

—

—

—

—

1,081

—

1,081

—

—

—

—

—

—

—

—

—

—

239

239

—

—

—

—

—

—

—

—

—

—

169

169

—

2,191

(24,484)

116

—

—

—

—

—

(22,177)(3,122)(25,299)—

2,191

89,544

116

(223)

3,489

3,608

17

6,891

98,743

7,906

106,650

10,273

20,466904,690(15,312)(186)

18,91922,81017

41,561

961,680

47,748 1,009,428

Note

Share-based payments
Incorporation of a
new subsidiary
Changes in ownershipinterests in subsidiaries
without losing control
Total transactions
with the owners of
the Parent
Total net changes during
the period
As at 28 February 201910

— 19 —

Total
equity1,228

(4) Interim Condensed Consolidated Statement of Cash Flows(Millions of yen)
NoteCash flows from operating activities
Profit before income taxes
Depreciation and amortization
Impairment losses
Interest and dividend income
Interest expenses
Foreign exchange losses (gains)Share of profit and loss of associates accounted forusing the equity method
Losses on disposal of property, plant and equipment
Decrease (increase) in trade and other receivables
Decrease (increase) in inventories
Increase (decrease) in trade and other payables
Decrease (increase) in other assets
Increase (decrease) in other liabilities

Six months ended
28 February 2018

Six months ended
28 February 2019

165,196
21,742
9,940(3,009)
1,361
6,943

174,214
24,0901,512(5,413)
2,374
1,765

(270)
289
(6,391)
20,572(70,439)(65,866)
170,085
3,947

(264)
129
(3,538)87,283(52,515)
9,016
19,757610

Income taxes paid

254,102
3,008(1,354)(35,509)

259,0225,194(2,070)(31,246)

Net cash generated by operating activities

220,245

230,899(29,231)(72,631)

Others, net

27,636(13,969)(6,276)(2,146)
1,236(2,446)48,314(21,097)(11,926)(2,951)
1,456
(853)

Net cash (used in) generated by investing activities(25,196)(59,688)

8

Others, net
Cash generated from operations
Interest and dividends income received
Interest paid

Cash flows from investing activities
Amounts deposited into bank deposits
with original maturities of three months or longer
Amounts withdrawn from bank deposits
with original maturities of three months or longer
Payments for property, plant and equipment
Payments for intangible assets
Payments for lease and guarantee deposits
Proceeds from collection of lease and guarantee deposits— 20 —

(Millions of yen)Six months ended
28 February 2018

Note
Cash flows from financing activities
Proceeds from short-term loans payable
Repayment of short-term loans payable
Repayment of long-term loans payable
Repayment of redemption of bonds
Dividends paid to owners of the Parent
Capital contributions from non-controllinginterests
Dividends paid to non-controlling interests
Repayments of obligations under finance leases

Six months ended
28 February 2019

1,361
(774)
(1,675)—(17,845)

8,305(7,483)(2,237)(30,000)(24,484)

Others, net

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

420(3,531)(4,345)117

Net cash (used in) generated by financing activities(21,998)(63,240)(8,194)

3,399

164,856

111,370

683,802

999,697

848,658

1,111,067

9
10Effect of exchange rate changes on thebalance of cash held in foreign currencies
Net increase (decrease) in cash
and cash equivalents
Cash and cash equivalents at the
beginning of period
Cash and cash equivalents at theend of period— 21 —

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., casual clothing retail business operating under the “UNIQLO” brand in Japan and overseas), GU business (i.e., casualclothing retail business operating under the “GU” brand in Japan and overseas) Theory business (i.e., apparel design andretail business in Japan and overseas) and other businesses.
2. Basis of Preparation
The interim condensed consolidated financial statements have been prepared in compliance with IAS 34. The Group meets
all of the criteria of a “specified company” defined under Article 1-2 of the Consolidated Quarterly Financial Statements
Rules and accordingly, applies Article 93 of the Consolidated Quarterly Financial Statements Rules. Since the interim
condensed consolidated financial statements do not include all the information and disclosures required for consolidated
financial statements, they should be read in conjunction with the Group’s annual consolidated financial statements for theyear ended 31 August 2018.
The interim condensed consolidated financial statements were approved on 12 April 2019 by Tadashi Yanai, President andCEO and Takeshi Okazaki, Group Executive Vice President and CFO.
3. Significant Accounting Policies
Except for the following standards that have been newly applied, the accounting policies presented in the consolidated
financial statements for the year ended 31 August 2018 are applied consistently in the preparation of the interim condensed
consolidated financial statements.
The Group adopted the following new and revised standards and interpretations beginning with the preparation of theinterim condensed consolidated financial statements.
IFRS

Title

Summary of new standards and amendments

IFRS 9Financial Instruments

Revisions to financial asset classification and measurement,
hedge accounting and impairment

IFRS 15

Revenue from Contracts with Customers

A comprehensive framework for revenue recognition(1) Application of IFRS 9: Financial Instruments① Financial instruments: Classification and measurement
The Group began classifying equity instruments that previously were classified as “Available-for-sale financial assets” as“Financial assets measured at fair value through other comprehensive income” from the beginning of the consolidated
fiscal year ending 31 August 2019. The Group has chosen not to apply the full retrospective application of IFRS 9 on the
consolidated financial statements for the consolidated fiscal year ended 31 August 2018 in accordance with the transition
provisions set out in IFRS 9.
② Financial instruments: Impairment
The Group has changed the recognition of impairment of financial assets measured at amortized cost to recognize a loss
allowance for expected credit losses on those financial assets.
③ Financial instruments: Hedge accounting
The Group applies IFRS 9 hedge accounting standards and considers the fulfilment of specific hedge accounting requirements
under IAS 39, Financial Instruments: Recognition and Measurement, and IFRS 9 as incremental parts of a consistent hedge
accounting policy.
The application of IFRS 9 has not had a significant impact on the financial position and financial performance of the Group forthe six months ended 28 February 2019.

— 22 —

(2) Application of IFRS 15: Revenue from contracts with customers
The Group recognizes revenue in accordance with IFRS 15 by applying the following five-step approach:
Step 1: Identify the contract(s) with a customer
Step 2: Identify the performance obligations in the contract
Step 3: Determine the transaction price
Step 4: Allocate the transaction price to the performance obligations in the contract
Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation
The Group, as a global clothing retailer, recognizes revenue when it satisfies its performance obligation by transferring thepromised goods to the customer. An asset is transferred when the customer obtains control of that asset. In addition, theGroup recognizes revenue at the amount of the promised consideration that the customer would pay in accordance with acontract, less the sum of discounts, rebates and refunds or credits.
The application of IFRS 15 has not had a significant impact on the financial position and financial performance of the Groupfor the six months ended 28 February 2019.
4. Use of Estimates and Judgments
The preparation of the interim condensed consolidated financial statements requires management to make judgments,
estimates and assumptions that affect the application of accounting policies and the reported amounts of assets andliabilities, income and expenses. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Any effects resulting from such review ofaccounting estimates are recognized prospectively by including the effects it in profit or loss in the period of the change or
the period of the change and future periods.
Significant estimates and judgments that have significant effects on the amounts recognized in the interim condensed
consolidated financial statements are generally the same as those in the preceding consolidated fiscal year.

— 23 —

5. Segment Information(i) Description of reportable segments
The Group’s reportable segments are components for which discrete financial information is available and which arereviewed 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, PRINCESSE TAM.TAM and J Brand clothing operations(ii) Segment revenue and results
For the six months ended 28 February 2018
(Millions of yen)
Reportable segments

Revenue
Operating profit
Segment income(losses) (i.e.,
Profit before
income taxes)
Other disclosure:
Impairment
losses (Note 3)

UNIQLOJapan

UNIQLOInternational

493,674
88,729Total

GU

GlobalBrands507,456
80,763

105,860
9,155

78,449 1,185,441(5,653)
172,995

88,212

79,0409,064(5,719)

42

185

19

8,908

Others(Note 1)

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

1,323
117

—
(2,619)1,186,765
170,492

170,598

117(5,520)165,196

9,155

—

785

9,940

(Note 1) “Others” includes the real estate leasing business, etc.
(Note 2) “Adjustments” mainly includes revenue and corporate expenses which are not allocated to individual reportablesegments.
(Note 3) For details on Impairment losses, please refer to Note “8. Impairment Losses.”
For the six months ended 28 February 2019
(Millions of yen)
Reportable segments

Revenue
Operating profit
Segment income(losses) (i.e.,
Profit before
income taxes)
Other disclosure:
Impairment
losses (Note 3)

Interim
Condensed
Others Adjustments
Consolidated(Note 1)
(Note 2)
Statement ofProfit or Loss
1,406—
1,267,697
110(644)
172,941

GU

GlobalBrandsTotal

580,006
88,486

117,195
14,12277,7453,125

1,266,290
173,475

67,88387,385

14,037

3,071

172,377

110

1,725

174,214

243

1,108

110

49

1,512

—

—

1,512

UNIQLOJapan

UNIQLOInternational

491,343
67,741(Note 1) “Others” includes the real estate leasing business, etc.
(Note 2) “Adjustments” mainly includes revenue and corporate expenses which are not allocated to individual reportablesegments.
(Note 3) For details on Impairment losses, please refer to Note “8. Impairment Losses.”— 24 —

For the three months ended 28 February 2018
(Millions of yen)
Reportable segments
UNIQLOJapan

UNIQLOInternational

GU

GlobalBrands

Total

Others(Note 1)

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

Revenue

236,606

249,173

45,04538,397569,223515—

569,738

Operating profit

34,61634,092

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

56,591

Segment income(losses) (i.e.,
Profit before
income taxes)

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

47,363

Other disclosure:
Impairment
losses (Note 3)

42

185

19

8,908

9,155

—

785

9,940

(Note 1) “Others” includes the real estate leasing business, etc.
(Note 2) “Adjustments” mainly includes revenue and corporate expenses which are not allocated to individual reportablesegments.
(Note 3) For details on Impairment losses, please refer to Note “8. Impairment Losses.”
For the three months ended 28 February 2019
(Millions of yen)
Reportable segments
Others(Note 1)

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

GlobalBrandsTotal

288,623

51,701

36,969622,497732—

623,230

35,921

5,553

396

71,65465(3,444)

68,27629,56834,7695,500

385

70,22365(7,161)

63,127

114

1,108

61

49

1,334

—

—

1,334

UNIQLOJapan

UNIQLOInternational

Revenue

245,202

Operating profit

29,783

Segment income(losses) (i.e.,
Profit before
income taxes)
Other 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 reportablesegments.
(Note 3) For details on Impairment losses, please refer to Note “8. Impairment Losses.”— 25 —

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 2018

Six months ended
28 February 2019

3,919

4,624

Write down of inventories to net realizable value
7. Property, plant and equipment
The breakdown of cost of property, plant and equipment at each reporting date is as follows:(Millions of yen)
As at
31 August 2018
Buildings and structures
Furniture, equipment and vehicles
Land
Construction in progress
Lease assets
Total

As at
28 February 2019

94,67314,143
1,927
9,550
34,782

96,625
16,1701,927
8,120
34,559155,077

157,404

8. Impairment Losses
The breakdown of Impairment losses for each reporting period is as follows:
Six months ended 28 February 2018
During the six months ended 28 February 2018, the Group recognized impairment losses that amounted to 9,940 million
yen on goodwill owned by the Comptoir des Cotonniers business and a trademark owned by the Helmut Lang brand under
Theory business, because it is not expected to earn profit that was estimated initially. Those impairment losses are included
in “other expenses” on the consolidated statement of profit or loss.
(1) Impairment losses related to the COMPTOIR DES COTONNIERS businessOf the total impairment losses that amounted to 9,940 million yen, 7,792 million yen represented an impairment loss
for goodwill owned by the COMPTOIR DES COTONNIERS business.
(2) Impairment losses related to the Helmut Lang brand under the Theory businessOf the total impairment losses that amounted to 9,940 million yen, 1,039 million yen represented an impairment loss
for a trademark owned by the Helmut Lang brand.
Six months ended 28 February 2019
There have been no material impairment losses.

— 26 —

9. Corporate Bonds
The 1st non-collateralized corporate bonds of 30 billion yen (interest rate: 0.110%; date of maturity: 18 December 2018) was
repaid during the 6 months ended 28 February 2019.
10. Dividends
The total amount of dividends paid was as follows:
For the six months ended 28 February 2018
Total dividends(Millions of yen)

Resolution
Meeting of the Board on 2 November 2017

17,847

Dividends per share
(Yen)
175

Dividends were declared on 2 November 2017 and paid on 10 November 2017. The effective date of the dividend was forshareholders as at 31 August 2017.
For the six months ended 28 February 2019
Total dividends(Millions of yen)

Resolution
Meeting of the Board on 2 November 2018

24,484

Dividends per share
(Yen)
240

Dividends were declared on 2 November 2018 and paid on 9 November 2018. The effective date of the dividend was forshareholders as at 31 August 2018.
Dividends on common stock declared subsequent to 28 February 2019 are as follows:
Six months ended
28 February 2018

Six months ended
28 February 2019

Total dividends (Million yen)

20,401

24,492

Dividends per share (yen)

200

240

The Board has approved the dividends on common stock subsequent to 28 February 2019, and the amount is not recognized
as a liability as at 28 February 2019.

— 27 —

11. Revenue
The Group performs global retail clothing operations through both physical stores and e-commerce channels. The following
is a breakdown of total revenue by major regional market operation.
Six months ended 28 February 2019
Revenue(Millions of yen)
Japan
Greater China
Other parts of Asia & Oceania
North America & Europe
UNIQLO (Note 1)

Percent of Total

491,343
282,484
174,275
123,246

38.8
22.3
13.7
9.7

1,071,349

84.5

GU (Note 2)

117,195

9.2

Global Brands(Note 3)

77,745

6.1

Others (Note 4)

1,406

0.1

1,267,697

100.0

Total
(Note 1)

(Note 2)
(Note 3)(Note 4)

Revenue is classified by nation or region based on customer location.
The designated countries and regions are classified as follows:
Greater China:
Mainland China, Hong Kong, Taiwan
Other parts of Asia & Oceania:
South Korea, Singapore, Malaysia, Thailand, the Philippines,
Indonesia, Australia
North America & Europe:
United States of America, Canada, United Kingdom, France, Russia,
Germany, Belgium, Spain, Sweden, the Netherlands
Main national and regional market:
Japan
Main national and regional markets:
North America, Europe, Japan
The “Others” category includes real estate leasing operations.

12. 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 2018

Six months ended
28 February 2019

Selling, general and administrative expenses
Advertising and promotion
Rental expenses
Depreciation and amortization
Outsourcing
Salaries
Others38,766
98,762
21,742
20,365
138,596
85,40539,722
104,371
24,09022,159146,745
96,373

Total

403,638

433,463— 28 —

13. 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 2018

Six months ended
28 February 2019

910

2,106

910

2,106

Other income
Others
Total(Millions of yen)Six months ended
28 February 2018

Six months ended
28 February 2019

1,708
289
9,940
749

51
129
1,512
1,046

12,688

2,738

Other expenses
Foreign exchange losses (Note)
Loss on retirement of property, plant and equipment
Impairment losses
Others
Total(Note) Currency adjustments incurred in the course of operating transactions are included in “other income.”
14. Finance income and finance costs
The breakdown of finance income and finance costs for each reporting period is as follows:(Millions of yen)

Finance income
Interest income
Others
Total

Six months ended
28 February 2018

Six months ended
28 February 2019

3,008
0

5,365
48

3,009

5,413
(Millions of yen)

Finance costs
Foreign exchange losses (Note)
Interest expenses
Total

Six months ended
28 February 2018

Six months ended
28 February 2019

6,943
1,361

1,765
2,374

8,305

4,140

(Note) Currency adjustments incurred in the course of non-operating transactions are included in “finance income.”— 29 —

15. Earnings per share
Six months ended 28 February 2018
Equity per share attributable to ownersof the Parent (Yen)
Basic earnings per share (Yen)
Diluted earnings per share (Yen)Six months ended 28 February 2019
7,809.69
1,021.16
1,019.36

Equity per share attributable to ownersof the Parent (Yen)
Basic earnings per share (Yen)
Diluted earnings per share (Yen)

9,423.53
1,117.54
1,115.67(Note) The basis for calculation of basic earnings per share and Diluted earnings per share is as follows:

Basic earnings per share for the period
Profit for the period attributable to owners of the Parent (Millions of yen)
Profit not attributable to common shareholders (Millions of yen)
Profit attributable to common shareholders (Millions of yen)
Average number of common stock outstanding during the period (Shares)
Diluted earnings per share for the period
Adjustment to profit (Millions of yen)
Increase in number of common stock (Shares)
Number of share subscription rights included in increase

Three months ended 28 February 2018
Basic earnings per share (Yen)
Diluted earnings per share (Yen)Six months ended
28 February 2018

Six months ended
28 February 2019

104,150—
104,150
101,992,395

114,029—
114,029
102,035,840—
180,861
180,861—
171,262
171,262

Three months ended 28 February 2019
251.09250.65

Basic earnings per share (Yen)
Diluted earnings per share (Yen)397.40396.72(Note) The basis for calculation of basic earnings (loss) per share and Diluted earnings per share is as follows:
Three months ended Three months ended
28 February 201828 February 2019
Basic earnings (loss) 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 (loss) per share for the period
Adjustment to profit (Millions of yen)
Increase in number of common stock (Shares)
Number of share subscription rights included in Increase— 30 —

25,61040,552—
25,610101,997,945—
40,552102,044,080——

181,176
181,176

176,333
176,333

16. 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 2018
Carrying amounts
Fair value
Financial assets:
Security deposits and guarantees

As at 28 February 2019
Carrying amounts
Fair value

61,75262,25363,81365,359Total

61,75262,25363,81365,359Financial liabilities:
Long-term borrowings (Note)
Corporate bonds (Note)
Lease obligations (Note)

8,884
499,020
35,6438,924
501,708
35,5286,932
469,103
36,981

6,932
473,271
36,864

Total

543,548546,161

513,017517,067(Note) The above includes the outstanding balance of borrowings due within one year.
The fair values of current financial assets, current financial liabilities and non-current financial assets, which are measured byamortized cost, approximate their carrying amounts.
The fair value of security deposits and guarantees is calculated on the basis of the current 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 of long-term borrowings and finance lease obligations is classified by term and calculated on the basis of thecurrent value, applying a discount rate that takes into account the time remaining to maturity and credit risk.
The fair value measurements of corporate bonds, long-term borrowings and lease obligations are classified as Level 2.
The following tables illustrate the fair value measurement hierarchy of the Group’s financial instruments. All assets andliabilities 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
is observable, either directly or indirectly
Level 3 — based on valuation techniques for which the lowest level input that is significant to the fair value measurement
is unobservable
When multiple inputs are used to measure fair value, the fair value level is determined based on the input with the lowest
level classification in the overall fair value assessment.

— 31 —

The following tables illustrate the fair value measurement hierarchy of the Group’s financial instruments:(Millions of yen)
As at 31 August 2018

Level 1

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

Level 2

Level 3

Total

2,513

—

—

2,513

—

136

—

136

—

28,464—28,4642,513

28,601—

31,114(Millions of yen)

As at 28 February 2019

Level 1

Financial assets measured at fair value
through other comprehensive income
Financial instruments at FVTPL
Foreign currency forward contracts designatedas hedging instruments
Total

Level 2

Level 3

Total

2,195

—

173

2,369

—

(2)

—

(2)

—

35,630—35,6302,195

35,627

173

37,996

For the valuation of Level 2 derivative financial instruments for which a market value is available, we use a valuation modelthat uses observable data on the measurement date using inputs such as interest rates, yield curves, currency rates andvolatility in comparable instruments.
Most of the financial assets classified as Level 3 are unlisted shares. The fair value of unlisted shares is measured on aquarterly basis by management in accordance with Group accounting policy using the latest available data.
The Company did not have any significant changes in Level 3 fair value measurement that were resulted from Level 3purchases, sales, issuance or settlement, nor any transfer between Levels 1, 2, or 3.
17. Commitments for expenditures
The Group had the following commitments at each reporting date:(Millions of yen)
As at
31 August 2018
Commitment for the acquisition of property, plant and equipment
Commitment for the acquisition of intangible assets
Total

As at
28 February 2019

10,046
1,461

8,795
5,868

11,508

14,664

18. Subsequent Events
Not applicable.

2. Others
Dividends
The Company resolved to pay dividends from retained earnings at the meeting of the Board convened on 11 April 2019.
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 10. Dividends.”— 32 —

(TRANSLATION)
Independent accountant’s review report
April 12, 2019
To the Board of Directors of FAST RETAILING CO., LTD.
Deloitte Touche Tohmatsu LLC
Designated Unlimited Liability Partner,
Engagement Partner,
Certified Public Accountant
Koichi Okubo _________________
Designated Unlimited Liability Partner,
Engagement Partner,
Certified Public Accountant
Hirofumi Otani _________________
Designated Unlimited Liability Partner,
Engagement Partner,
Certified Public Accountant
Yohei Masuda _________________
Pursuant to the first paragraph of Article 193-2 of the Financial Instruments and Exchange Act, we have reviewed the interim
condensed consolidated financial statements included in the Financial Section, namely, the interim condensed consolidated
statement of financial position of FAST RETAILING CO., LTD. (the “Company”) and its consolidated subsidiaries (collectively, the“Group”) as of 28 February 2019 and the related interim condensed consolidated statements of profit or loss and statement ofcomprehensive income for the three-month and six-month periods then ended, statement of changes in equity and cash flows
for the six-month period then ended, and the related notes.
Management’s Responsibility for the Interim Condensed Consolidated Financial Statements
Management is responsible for the preparation and fair presentation of these interim condensed consolidated financial
statements in conformity with International Accounting Standard 34 “Interim Financial Reporting” (“IAS 34”), pursuant to
Article 93 of the “Rules Governing Term, Form and Preparation of Consolidated Quarterly Financial Statements”, and for suchinternal control as management determines is necessary to enable the preparation of interim condensed consolidated financial
statements that are free from material misstatement, whether due to fraud or error.
Accountant’s responsibility
Our responsibility is to express a conclusion on these interim condensed consolidated financial statements based on ourreview. We conducted our review in accordance with quarterly review standards generally accepted in Japan. A review consists
principally of making inquiries, primarily of management and persons responsible for financial and accounting matters, andapplying analytical procedures and other quarterly review procedures. A review is substantially less in scope than an audit
conducted in accordance with auditing standards generally accepted in Japan. We believe that we have obtained the evidence
to provide a basis for our conclusion.
Accountant’s Conclusion
Based on our review, nothing has come to our attention that causes us to believe that the interim condensed consolidated
financial statements referred to above do not present fairly, in all material respects, the condensed consolidated financial
position of the Company and its consolidated subsidiaries as of 28 February 2019, and the condensed consolidated results of
their operations for the three-month and six-month periods then ended, and their cash flows for the six-month period thenended in conformity with IAS 34.
Interest
Our firm and the engagement partners do not have any interest in the Company for which disclosure is required under theprovisions of the Certified Public Accountants Act.
The above represents a translation, for convenience only, of the original report issued in the Japanese language.

— 33 —