FAST RETAILING CO., LTD.
迅銷有限公司First Quarterly Report 2020/21
2020.9.1-2020.11.30
Stock Code: 6288

Contents
1. Corporate Profile2

2. Financial Highlights

3

3. Management Discussion and Analysis

5

4. Information about the Reporting Entity

10

5. Financial Section18

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

19(2) Interim Condensed Consolidated Statement ofProfit or Loss and Interim Condensed Consolidated
Statement of Comprehensive Income

21Interim Condensed Consolidated Statement of Profit or Loss

21

Interim Condensed Consolidated Statement ofComprehensive Income22(3) Interim Condensed Consolidated Statement of
Changes in Equity

23(4) Interim Condensed Consolidated Statement of Cash Flows25

2. Others

37

Independent Accountant’s Review Report

38

- 1 -

1. Corporate Profile
Board of Directors
Representative Director

Principal Place of Business in Japan
Midtown Tower 9-7-1

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

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

External Directors
Toru Hambayashi

KowloonHong Kong

Nobumichi Hattori
Masaaki Shintaku

HDR Registrar and HDR Transfer Office

Takashi Nawa
Naotake Ohno

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

Board of Statutory Auditors

Hopewell Centre
183 Queen’s Road East

Akira Tanaka
Masaaki Shinjo

WanchaiHong Kong

Masumi Mizusawa
Keiko Kaneko (External)

Stock Code

Takao Kashitani (External)
Masakatsu Mori (External)

Hong Kong: 6288
Japan: 9983

Company Secretary

Website Address

Shea Yee Man

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

- 2 -

2. Financial Highlights
Consolidated Financial Summary
TermFirst Quarterof
59th Fiscal
Year

First Quarterof
60th Fiscal
Year

59th Fiscal
Year

Accounting period

Three months
ended
30 November
2019

Three months
ended
30 November
2020

Year ended
31 August2020

Revenue (Millions of yen)

623,484

619,797

2,008,846

Operating profit (Millions of yen)

91,690113,094

149,347

Profit before income taxes (Millions of yen)

102,015

107,164

152,868

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

70,90770,38190,357

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

107,628

65,117110,134

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

988,554

997,071956,562

Total assets (Millions of yen)

2,528,281

2,539,457

2,411,990

Basic earnings per share (Yen)694.73689.29885.15

Diluted earnings per share (Yen)693.59688.17883.62

39.1

39.3

39.7

Net cash generated by operating activities (Millions of yen)

97,650140,334

264,868

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

(33,267)(19,296)(75,981)

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

(56,640)(58,655)(183,268)

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

1,115,031

1,154,607

1,093,531

Ratio of equity attributable to owners of the Parent to total assets (%)(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. Revenue does not include consumption taxes, etc.
3. 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”).

- 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 three months ended 30 November 2020.
In addition, there were no significant changes in the organizational structure of the Group, including the major subsidiaries, during thethree months ended 30 November 2020.

- 4 -3. Management Discussion and Analysis
Business Review
1. Business and Operational Risks
No new business-related risks have arisen during the three months ended 30 November 2020.
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
While the Fast Retailing Group revenue declined, profit increased significantly in the first quarter of fiscal 2021, or the threemonths from 1 September 2020 to 30 November 2020. Consolidated revenue totaled 619.7 billion yen (−0.6% year-on-year),while operating profit totaled 113.0 billion yen (+23.3% year-on-year). The impressive rise in profit can be attributed primarily tolarge increases in profit from UNIQLO operations in Japan and Greater China (Mainland China, Hong Kong and Taiwan), as wellas rising profit and a strong overall performance from GU. On the other hand, UNIQLO operations in other parts of Asia &Oceania (Southeast Asia, Australia, and India), North America, and Europe were hit especially hard by COVID-19, resulting inconsiderable declines in both revenue and profit. The first-quarter consolidated gross profit margin improved by 2.2 points yearon-year to 52.4% and the first-quarter selling, general and administrative expense ratio improved by 1.5 points year-on-year to34.4%. In addition, we recorded a 5.9 billion yen of foreign-exchange losses and other items under finance income net of costs
due to an appreciation in yen exchange rates over the quarter. As a result, first-quarter profit before income taxes rose to 107.1
billion yen (+5.0% year-on-year). Profit attributable to owners of the parent declined to 70.3 billion yen (−0.7% year-on-year),but this was due to an increase in the tax burden rate after performance worsened at loss-making operations that cannot record
deferred tax assets.
The Group’s medium-term vision is to become the world’s number one apparel retailer. In pursuit of this aim, we focus ourefforts on expanding UNIQLO International, as well as our GU brand and our global e-commerce operation. We continue toincrease UNIQLO store numbers in all markets and areas in which we operate, and open global flagship stores and large-format
stores in major cities around the world to instill deeper and more widespread empathy for UNIQLO’s LifeWear concept ofultimate everyday wear. While COVID-19 continues to affect our business performance in all markets, we continue to expand ouroperations while prioritizing the safety and health of all our customers, employees, and business partners.
UNIQLO Japan
UNIQLO Japan reported a rise in revenue and a significant increase in profit in the first quarter of fiscal 2021, with revenue
reaching 253.8 billion yen (+8.9% year-on-year) and operating profit rising to 60.0 billion yen (+55.8% year-on-year). Firstquarter same-store sales increased by 7.3% year-on-year. We enjoyed strong sales of products such as loungewear and
HEATTECH blankets that fulfilled customer demand for stay-at-home items. Our Ultra Stretch Active Pants and other items inour sports utility wear range along with haori-style jackets, Smart Ankle Pants, and other Fall Winter ranges also sold well. Our+J collection with designer Ms. Jil Sander, our collaborative Peanuts products, and AIRism masks also contributed to the rise insales. E-commerce sales expanded strongly, with online sales rising to 36.7 billion yen (+48.3% year-on-year) in the first quarter.
UNIQLO Japan’s gross profit margin improved by 3.8 points on the back of a sharp reduction in discounting rates, and risingproductivity that helped reduce the cost of sales. The selling, general and administrative expense ratio improved by 2.8 points,
primarily on lower distribution costs and advertising and promotion expenses.

- 5 -UNIQLO International
UNIQLO International reported a decline in revenue but an increase in operating profit in the first quarter of fiscal 2021, withrevenue falling to 260.6 billion yen (−7.2% year-on-year) and operating profit rising to 41.4 billion yen (+9.5% year-on-year).
UNIQLO International’s large profit rise was fueled by a significant increase in profit at UNIQLO Greater China, especially in
Mainland China and Taiwan, and a shift from an operating loss to an operating gain at UNIQLO South Korea. In sharp contrast,
other parts of Asia & Oceania, North America, and Europe were hit harder than expected by COVID-19, resulting in a large
decline in first-quarter profit. Meanwhile, e-commerce sales expanded steadily in each market.
Looking more closely at individual market performance, Mainland China reported a rise in revenue and a significant profit gain in
the first quarter, with same-store sales increasing on the back of strong sales of warm clothing and products that fulfilled stay-athome customer needs. Mainland China’s gross profit margin improved as we pushed ahead with our new strategy of controlling
discounting and instead focusing on appealing product value and strengthening branding. Mainland China’s selling, general andadministrative expense ratio also improved thanks to greater efficiency in store operations. Furthermore, Mainland China's ecommerce sales rose and the e-commerce profit margin also improved remarkably. In South Korea, while revenue declined
sharply in the first quarter, the operation moved back into the profit side on the back of an improved gross profit margin and an
improved selling, general and administrative expense ratio due to the closure of unprofitable stores and stronger control ofbusiness expenses. Other parts of Asia & Oceania reported sharp declines in both revenue and profit after the region was hit
especially hard by the ongoing COVID-19 pandemic. However, Vietnam reported higher-than-expected results after successfully
managing to control COVID-19 infections. UNIQLO USA reported a large decline in revenue and an operating loss after somestores were temporarily closed and people’s movement outside the home was restricted. While UNIQLO Europe was tracking
towards a recovery and recording sales on a par with the previous year through October, the temporary closure of all our stores in
the United Kingdom, France, Belgium, and Italy in November resulted in a considerable decline in both revenue and profit for the
first quarter as a whole. However, Russia achieved large first-quarter rises in revenue and profit in local currency terms thanks tostrong sales of Winter clothing and products that satisfied stay-at-home demand.
GU
The GU business segment reported increases in both revenue and profit in the first quarter of fiscal 2021, with revenue climbing
to 76.5 billion yen (+4.9% year-on-year) and operating profit expanding to 13.6 billion yen (+9.9% year-on-year).
Same-store sales increased thanks to strong sales of the sweat-style knitwear that featured in our TV commercials and advertising
campaigns, double-faced sweatshirts and chef’s pants that successfully captured mass fashion trends, and loungewear that
fulfilled stay-at-home customer needs. GU’s gross profit margin declined by 0.6 point, but this was compared to a particularly
strong performance in the previous year. GU’s selling, general and administrative expense ratio improved by 1.2 points thanks toa lower personnel cost ratio achieved through more efficient store operations and a lower advertising and promotion cost ratio
achieved through stronger cost controls.
Global Brands
Global Brands reported a large decline in revenue and a slight operating loss in the first quarter of fiscal 2021. Revenue totaled
28.0 billion yen (−22.3% year-on-year) and the segment generated an operating loss of 0.2 billion yen (compared to a 1.8 billion
yen profit recorded in the first quarter of fiscal 2020). Our Theory fashion label reported large declines in both revenue and profit
as performance worsened in the United States, Europe, and Japan in the face of COVID-19. Sales for our Japan-based PLST
brand did return to previous year levels through October, but first-quarter revenue and profit both declined overall following arise in COVID-19 infections in November. Finally, our France-based COMPTOIR DES COTONNIERS brand reported a large
decline in revenue and a wider operating loss after we were forced to temporarily close all our stores in France for approximately
one month from the end of October.

- 6 -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; Implementing good corporate governance. Our main activities in the first quarter of fiscal 2021 from September toNovember 2020 involved:■ New value creation through products and sales: Taking into account the fact that masks have become essential to people's lives
due to COVID-19, UNIQLO is selling AIRism masks and GU is selling masks that use high-performance filters. In September
2020, UNIQLO also developed and launched a line of front-opening innerwear, including T-shirts and bras, in response torequests from hospitalized individuals and people with disabilities who found regular innerwear difficult to put on and take off.
■ Consideration for the environment: UNIQLO has been carrying out an All-Product Recycling initiative, where UNIQLO
clothing that is no longer needed by customers is collected and donated to refugees and other people in need. In September 2020,
we expanded this activity and began our RE.UNIQLO initiative, adding new value to our clothes and passing that value forward
in order to make efficient use of resources. In November, for our first RE.UNIQLO project we began selling a new recycled down
jacket, in which 100% of the down and feathers come from products collected from customers.
■ Community support: Our ongoing activities in this area include donating AIRism masks to medical and care facilities aroundthe world that are battling COVID-19. In addition, the Group plans to donate USD 1 million (approximately JPY 100 million) toaddress the damage caused by typhoons no. 19 and 22 in the Philippines in November 2020. Fast Retailing Philippines, Inc.,
which manages UNIQLO in the Philippines, has also donated 300,000 AIRism masks to the affected areas.
The Company was also selected for the first time for inclusion in the MSCI Japan ESG Select Leaders Index, a key index used byinvestors to evaluate companies that place a high value on environmental, social and governance (ESG); and the Dow Jones
Sustainability Indices (DJSI) World Index, a leading global ESG investment index. For the three consecutive years since 2018,
the Company has also been selected for inclusion in the FTSE4Good Index Series, another major ESG investment index, as wellas the FTSE Blossom Japan Index. In addition, in 2020 the Company was rated highly by the Corporate Human Rights
Benchmark (CHRB), an index for ESG investment specializing in human rights. The Company ranked fourth among 53 global
apparel companies, and top among Japanese companies.
(ⅱ) Financial Position
Total assets as at 30 November 2020 were 2.5394 trillion yen, which was an increase of 127.4 billion yen relative to the end of
the preceding fiscal year. The principal factors were an increase of 61.0 billion yen in cash and cash equivalents, an increase of
53.1 billion yen in trade and other receivables, an increase of 9.4 billion yen in right-of-use assets, an increase of 9.1 billion yen
in other current assets, an increase of 7.4 billion yen in property, plant and equipment, a decrease of 13.4 billion yen in
inventories, and a decrease of 13.0 billion yen in derivative financial assets.
Total liabilities as at 30 November 2020 were 1.5004 trillion yen, which was an increase of 84.5 billion yen relative to the end of
the preceding fiscal year. The principal factors were an increase of 21.4 billion yen in trade and other payables, an increase of
19.3 billion yen in other current financial liabilities, an increase of 12.7 billion yen in current tax liabilities, an increase of 10.9
billion yen in lease liabilities, and an increase of 9.6 billion yen in other current liabilities.
Total net assets as at 30 November 2020 were 1.0390 trillion yen, which was an increase of 42.9 billion yen relative to the end of
the preceding fiscal year. The principal factors were an increase of 46.4 billion yen in retained earnings, and a decrease of 7.7
billion yen in other components of equity.

- 7 -(2) Cash Flows Information
Cash and cash equivalents as at 30 November 2020 had increased by 61.0 billion yen from the end of the preceding fiscal year, to1.1546 trillion yen.
(Operating Cash Flows)
Net cash generated by operating activities for the three months ended 30 November 2020 was 140.3 billion yen, which was anincrease of 42.6 billion yen (+43.7% year-on-year) from the three months ended 30 November 2019. The principal factors werean increase of 52.4 billion yen in trade and other receivables (an increase of 24.8 billion yen from the three months ended 30
November 2019), a decrease of 15.1 billion yen in inventories (an increase of 20.1 billion yen from the three months ended 30
November 2019), 5.1 billion yen in foreign exchange losses (an increase of 14.4 billion yen from the three months ended 30
November 2019), an increase of 20.5 billion yen in trade and other payables (a decrease of 11.4 billion yen from the three months
ended 30 November 2019), and an increase of 10.1 billion yen in other assets (a decrease of 10.1 billion yen from the threemonths ended 30 November 2019).
(Investing Cash Flows)
Net cash used in investing activities for the three months ended 30 November 2020 was 19.2 billion yen, which was a decrease of
13.9 billion yen (-42.0% year-on-year) from the three months ended 30 November 2019. The principal factors were a net decreaseof 1.3 billion yen in bank deposits with original maturities of three months or longer (a decrease of 10.4 billion yen from the threemonths ended 30 November 2019), 4.2 billion yen in payments for investments in associates (an increase of 4.2 billion yen fromthe three months ended 30 November 2019), 1.3 billion yen in proceeds from other investing activities (a decrease of 2.7 billion
yen from the three months ended 30 November 2019), and 0.2 billion yen in payments for right-of-use assets (a decrease of 2.3
billion yen from the three months ended 30 November 2019).
(Financing Cash Flows)
Net cash used in financing activities for the three months ended 30 November 2020 was 58.6 billion yen, which was an increaseof 2.0 billion yen (+3.6% year-on-year) from the three months ended 30 November 2019. The principal factor was 35.1 billion
yen in repayments of lease liabilities (an increase of 2.3 billion yen from the three months ended 30 November 2019).
(3) Estimates and Assumptions Used for Those Estimates in the Accounting
For the first-quarter consolidated accounting period, there are no significant changes to the estimates or the assumptions used for
those estimates.
(4) Operational and Financial Challenges to Address as Priority
There have been no significant challenges during the three months ended 30 November 2020 that must be addressed by theGroup.
(5) Research and Development
Not applicable.

- 8 -(6) Significant Facilities
The following are the significant facilities that were newly completed during the three months ended 30 November 2020.
<Subsidiaries in Japan>
Not applicable.
<Overseas Subsidiaries>
Company nameUNIQLO EUROPE LIMITEDUNIQLO CANADA INC.

Type of facility

Name of business

UNIQLOInternational StoreUNIQLO Hamburg
Alter Wall

UNIQLOUNIQLO Montreal

International Store

Eaton Centre

Location

Completion date

Hamburg,
Germany

October 2020

Montreal, Canada

October 2020

The following are the significant facilities that were newly planned during the three months ended 30 November 2020.
<Subsidiaries in Japan>
Not applicable.
<Overseas Subsidiaries>
Not applicable.

3. Significant Contracts in Business Operation
None.

- 9 -

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

Total number of authorized shares (shares)

Common stock

300,000,000
Total

300,000,000(ⅱ) Shares Issued

Type

Number of shares issued
as at 30 November 2020

Number of shares issued
as at submission date
(As at 14 January
2021)

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
the Stock Exchange ofHong Kong Limited (Note)

Total

106,073,656

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

- 10 -

100 sharesas one unit-(2) Share Subscription Rights
1. Details of the Stock Option Program
The Company has instituted a stock option program that grants rights to acquire new shares pursuant to the Companies Act ofJapan. Share subscription rights issued in the three months ended 30 November 2020 are as follows:(i) 11th Share subscription rights A type
Resolution date

15 October 2020
Employees of the Company: 18

Class and number of recipients (Persons)

Employees of Group subsidiaries: 47

Number of stock options (Shares)

2,175

Type of shares to be issued upon exercise of share subscription
rightsNumber of shares to be issued upon exercise of sharesubscription rights (Shares)
Amount to be paid upon exercise of share subscription rights(Yen)
Exercise period of share subscription rights

Common Stock2,175
Number of shares allocated times 1 yen exercise price per sharefor all shares to be obtained through exercise of the sharesubscription rights.
From 13 November 2020
to 12 November 2030

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

Issue price: 77,560
Paid-in capital: 38,780

Exercise conditions of share subscription rights

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

Matters pertaining to transfer of share subscription rights

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

Matters pertaining to issuing of share subscription rights inconjunction with reorganization(Notes)*The above information is disclosed as at the date of issuing share subscription rights (13 November 2020).
(Notes) Upon any reorganization of the Company (collectively referred to as “Reorganization”) consisting of a merger (limited tocases where the Company becomes extinct thereby), absorption-type company split or incorporation-type company split (ineach event, limited to cases where the Company is the entity resulting from the company split), or exchange or transfer ofshares (in each event, limited to cases where the Company becomes a wholly owned subsidiary), parties holding sharesubscription rights in existence immediately preceding the effective date of such Reorganization (hereinafter referred to as“Outstanding Share Subscription Rights”) shall, in each applicable case, be issued share subscription rights for shares of theresulting company as prescribed in Article 236 (1) viii of the Companies Act of Japan (hereinafter referred to as the“Company Resulting From Reorganization”). In such event, any Outstanding Share Subscription Rights shall lapse and theCompany Resulting From Reorganization shall issue new share subscription rights; however, provided that terms andconditions stipulating that the Company Resulting From Reorganization shall issue share subscription rights that prescribe thematters stated below shall be included in any absorption merger agreement, new merger agreement, absorption-type company
split agreement, incorporation-type company split plan, share exchange agreement or transfer of shares plan.
1. Number of share subscription rights to be issued by the Company Resulting From Reorganization: Each holder of
Outstanding Share Subscription Rights shall be issued the same number thereof.
2. Type of shares of the Company Resulting From Reorganization underlying the share subscription rights: Common stock of
the Company Resulting From Reorganization.
3. Number of shares of the Company Resulting From Reorganization underlying the share subscription rights:
A proposal stating the conditions for Reorganization and the like shall include a finalized statement of the type and numberof shares underlying the above-mentioned share subscription rights.

- 11 -

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

- 12 -

(ⅱ) 11th Share subscription rights B type
Resolution date

15 October 2020

Class and number of recipients (Persons)

Employees of the Company: 694
Employees of Group subsidiaries: 1,435

Number of stock options (Shares)

22,306

Type of shares to be issued upon exercise of share subscription
rightsCommon Stock

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

22,306

Amount to be paid upon exercise of share subscription rights

Number of shares allocated times 1 yen exercise price per share(Yen)

for all shares to be obtained through exercise of the sharesubscription rights.

Exercise period of share subscription rights

From 13 December 2020
to 12 November 2030

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

Issue price: 78,237

share upon exercise of share subscription rights (Yen)

Paid-in capital: 39,119
If a holder of share subscription rights waives the right toExercise conditions of share subscription rights

Matters pertaining to transfer of share subscription rights

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

Matters pertaining to issuing of share subscription rights in(Notes)conjunction with reorganization*The above information is disclosed as at the date of issuing share subscription rights (13 November 2020).
(Notes) Upon any reorganization of the Company (collectively referred to as “Reorganization”) consisting of merger (limited to cases
where the Company becomes extinct thereby), absorption-type company split or incorporation-type company split (in each
event, limited to cases where the Company is the entity resulting from the company split), or exchange or transfer of shares (ineach event, limited to cases where the Company becomes a wholly owned subsidiary), parties holding share subscription
rights in existence immediately preceding the effective date of such Reorganization (hereinafter referred to as “Outstanding
Share Subscription Rights”) shall, in each applicable case, be issued share subscription rights for shares of the resulting
company as prescribed in Article 236 (1) viii of the Companies Act of Japan (hereinafter referred to as the “Company
Resulting From Reorganization”). In such event, any Outstanding Share Subscription Rights shall lapse and the Company
Resulting From Reorganization shall issue new share subscription rights; however provided terms and conditions stipulatingthat the Company Resulting From Reorganization shall issue share subscription rights that prescribe the matters stated below
shall be included in any absorption merger agreement, new merger agreement, absorption-type company split agreement,
incorporation-type company split plan, share exchange agreement or transfer of shares plan.
1. Number of share subscription rights to be issued by the Company Resulting From Reorganization: Each holder of
Outstanding Share Subscription Rights shall be issued the same number thereof.
2. Type of shares of the Company Resulting from Reorganization underlying the share subscription rights: Common stock of
the Company Resulting From Reorganization.
3. Number of shares of the Company Resulting from Reorganization underlying the share subscription rights:
A proposal stating the conditions for Reorganization and the like shall include a finalized statement of the type and numberof shares underlying the above-mentioned share subscription rights.
4. Value of property to be incorporated upon exercise of the share subscription rights:
The value of property to be incorporated upon exercise of share subscription rights that are issued shall be the amountobtained by multiplying the exercise price after reorganization prescribed below by the number of shares of the Company
Resulting From Reorganization underlying the share subscription rights that have been finalized as stated in No. 3. above.
The exercise price after Reorganization shall be 1 yen per share of the Company Resulting From Reorganization that can beissued upon exercise of each share subscription right that is issued.

- 13 -

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

- 14 -

(ⅲ) 11th Share subscription rights C type
Resolution date

15 October 2020

Class and number of recipients (Persons)

Employees of the Company: 41

Number of stock options (Shares)

3,777

Type of shares to be issued upon exercise of share subscription
rightsNumber of shares to be issued upon exercise of sharesubscription rights (Shares)
Amount to be paid upon exercise of share subscription rights(Yen)

Common Stock
3,777
Number of shares allocated times 1 yen exercise price per sharefor all shares to be obtained through exercise of the sharesubscription rights.

Exercise period of share subscription rights

13 November 2023

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

Issue price: 79,193
Paid-in capital: 39,597
If a holder of share subscription rights waives the right toExercise conditions of share subscription rights

acquire shares, the share subscription rights shall be forfeited
and may not be exercised.

Matters pertaining to transfer of share subscription rights

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

Matters pertaining to issuing of share subscription rights inconjunction with reorganization(Notes)*The above information is disclosed as at the date of issuing share subscription rights (13 November 2020).
(Notes) Upon any reorganization of the Company (collectively referred to as “Reorganization”) consisting of merger (limited to cases
where the Company becomes extinct thereby), absorption-type company split or incorporation-type company split (in each
event, limited to cases where the Company is the entity resulting from the company split), or exchange or transfer of shares (ineach event, limited to cases where the Company becomes a wholly owned subsidiary), parties holding share subscription
rights in existence immediately preceding the effective date of such Reorganization (hereinafter referred to as “Outstanding
Share Subscription Rights”) shall, in each applicable case, be issued share subscription rights for shares of the resulting
company as prescribed in Article 236 (1) viii of the Companies Act of Japan (hereinafter referred to as the “Company
Resulting From Reorganization”). In such event, any Outstanding Share Subscription Rights shall lapse and the Company
Resulting From Reorganization shall issue new share subscription rights; however provided that terms and conditions
stipulating that the Company Resulting From Reorganization shall issue share subscription rights that prescribe the mattersstated below shall be included in any absorption merger agreement, new merger agreement, absorption-type company split
agreement, incorporation-type company split plan, share exchange agreement or transfer of shares plan.
1. Number of share subscription rights to be issued by the Company Resulting From Reorganization: Each holder of
Outstanding Share Subscription Rights shall be issued the same number thereof.
2. Type of shares of the Company Resulting From Reorganization underlying the share subscription rights: Common stock of
the Company Resulting From Reorganization.
3. Number of shares of the Company Resulting From Reorganization underlying the share subscription rights:
A proposal stating the conditions for Reorganization and the like shall include a finalized statement of the type and numberof shares underlying the above-mentioned share subscription rights.
4. Value of property to be incorporated upon exercise of the share subscription rights:
The value of property to be incorporated upon exercise of share subscription rights that are issued shall be the amountobtained by multiplying the exercise price after reorganization prescribed below by the number of shares of the Company
Resulting From Reorganization underlying the share subscription rights that have been finalized as stated in No. 3. above.
The exercise price after Reorganization shall be 1 yen per share of the Company Resulting From Reorganization that can beissued upon exercise of each share subscription right that is issued.

- 15 -

5. Period during which share subscription rights can be exercised:
The period from the later of either the day on which share subscription rights can be exercised as prescribed above or the
day on which a Reorganization takes effect.
6. Matters pertaining to the increase of capital and capital reserve resulting from the issuance of shares upon exercise of theshare subscription rights:
To be determined in order to align with the conditions applicable to the subject share subscription rights.
7. Restrictions on acquisition of share subscription rights by transfer:Any acquisition of share subscription rights by transfer shall require an authorizing resolution from the Board of Directorsof the Company Resulting From Reorganization.
8. Terms and conditions for acquisition of share subscription rights:
To be determined in order to align with the conditions applicable to the subject share subscription rights.
9. Conditions for exercise of share subscription rights:
To be determined in order to align with the conditions applicable to the subject share subscription rights.
2. Other Share Subscription Rights
Not applicable.
(3) Exercise of convertible bonds with conditional permission for adjustment of exercise priceNot applicable.
(4) Change in Total Number of Shares Issued, Capital Stock, Etc.
Date
1 September 2020 to
30 November 2020

Increase/(decrease) of
total number ofshares issued

Balance of total
number ofshares issued-

106,073,656

Increase/
Increase/
Balance ofBalance of(decrease) of(decrease) ofcapital stock
capital reserve
capital stock
capital reserve(Millions of yen)
(Millions of yen)
(Millions of yen)
(Millions of yen)-

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 30
November 2020.
(5) Major Shareholders
There are no items to disclose, as the accounting period under review is the first quarter accounting period.

- 16 -

(6) Voting Rights
Concerning “Voting Rights” as at the end of the three months ended 30 November 2020, it has not been possible to confirm andstate the details entered in the register of shareholders. Therefore, the stated details are based on the register of shareholders as at
the immediately preceding record date (31 August 2020).
(ⅰ) Shares issued
As at 30 November 2020
Class

Number of shares

Number of voting rights

Remarks

Non-voting shares

-

-

-

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

-

-

-

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

-

-

-

-

-

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

stock)
Common stock

Shares with full voting rights

Common stock

3,973,100(i.e., other than treasury stock)

1,020,282

102,028,200
Common stock

Shares less than one unit

72,356

Total number of shares issued

106,073,656

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

1,020,282-(Notes) 1. The columns for the number of shares of “Shares with full voting rights (i.e., other than treasury stock) ” and “Shares lessthan one unit” include 2,700 shares and 84 shares, respectively, held in the name of Japan Securities Depository Center, Inc.
2. Common stock in the “Shares less than one unit” row includes 13 shares of treasury stock held by the Company.
(ⅱ) Treasury StockAs at 30 November 2020
Name or trade name ofholderFAST RETAILING
CO., LTD.

Holder’s address
10717-1 Sayama
Yamaguchi-shi

Number ofshares held in
own name

Number ofshares held inother’s name

Total number ofshares held

Percentage of
total number ofshares issued (%)

3,973,100-

3,973,100

3.75

3,973,100-

3,973,100

3.75

Yamaguchi

Total

-

2. Directors
Since the submission of the year-end report for the preceding fiscal year, there has been no change of directors during the threemonths ended 30 November 2020.

- 17 -

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 of the Group as at 30 November 2020, the related interim condensed consolidated statements of profit or loss andinterim condensed consolidated statement of comprehensive income for the three-month period then ended, and the interim
condensed consolidated statements of changes in equity and cash flows for the three-month period then ended (collectively, the“interim condensed consolidated financial statements”) were prepared in compliance with International Accounting Standard 34
Interim Financial Reporting (“IAS 34”), pursuant to Article 93 of the “Rules Governing Term, Form and Preparation ofConsolidated 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.

- 18 -

(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 2020

As at 30 November 2020

1,093,531
67,0691,154,607
120,185

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

14
649,890417,529

51,145404,115

Derivative financial assets
Income taxes receivable

14

14,413
2,126

8,524
5,057

10,62919,732

1,655,191

1,763,369

136,123
399,944

143,556
409,393

8,092
66,833

8,092
66,296

67,77068,78014,221

18,32845,44750,261

10,983
7,383

3,851
7,528

Other assets
Total current assets
Non-current assets
Property, plant and equipment
Right-of-use assets

7

Goodwill
Intangible assets
Financial assets
Investments in associates accounted
for using the equity method

14

Deferred tax assets
Derivative financial assets

14

Other assets
Total non-current assets

756,799

776,088

2,411,990

2,539,457

210,747
213,301

232,217232,639

2,763
114,652

5,062
122,241

Current tax liabilities
Provisions

22,602752

35,328528

Other liabilities

82,63692,309Total current liabilities

647,455

720,327

370,780

370,792

351,526
32,658354,878
34,837

7,760
3,205

9,398
7,803

2,524

2,393

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

14

Derivative financial liabilities
Lease liabilities

14

Non-current liabilities
Financial liabilities

14

Lease liabilities
Provisions
Deferred tax liabilities
Derivative financial liabilities

14

Other liabilities
Total non-current liabilities
Total liabilities- 19 -

768,455

780,105

1,415,910

1,500,432

(Millions of yen)Notes

As at 31 August 2020

As at 30 November 2020

10,273

10,273

Capital surplus
Retained earnings

23,365
933,303

25,159979,761

Treasury stock, at cost

(15,129)
4,749(15,074)(3,050)Non-controlling interests

956,562
39,516

997,071
41,953

Total equity

996,079

1,039,025

2,411,990

2,539,457

EQUITY
Capital stock

Other components of equity
Equity attributable to owners of the Parent

Total liabilities and equity- 20 -

(2) Interim Condensed Consolidated Statement of Profit or Loss and Interim Condensed Consolidated Statement of Comprehensive
IncomeInterim Condensed Consolidated Statement of Profit or Loss
Three months ended 30 November 2020
(Millions of yen)
Notes
Revenue9

Cost of sales
Gross profit

Three months ended
30 November 2019

Three months ended
30 November 2020

623,484(310,560)

619,797(294,976)

Selling, general and administrative expenses

10

312,923(224,098)

324,821(213,245)

Other income
Other expenses

11
11

4,083
(1,467)

2,216
(913)

249

215

91,690113,094

12,219(1,894)

1,051(6,980)

Income tax expense

102,015(30,174)

107,164(34,672)

Profit for the period

71,84072,49270,90770,381932

2,111

71,84072,492

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

12

Finance costs

12

Profit before income taxes

Profit for the period attributable to:
Owners of the Parent
Non-controlling interests
Total
Earnings per share
Basic (yen)13694.73689.29Diluted (yen)13

693.59688.17- 21 -

Interim Condensed Consolidated Statement of Comprehensive Income
Three months ended 30 November 2020
(Millions of yen)Three months ended
30 November 2019

Three months ended
30 November 2020

71,84072,492Financial assets measured at fair value throughother comprehensive income / (loss)

18

337

Total items that will not be reclassified subsequently to
profit or loss

18

337

18,002

6,447

20,244
19(11,649)
13

Total items that may be reclassified subsequently to
profit or loss

38,266(5,189)Other comprehensive income / (loss), net of income tax

38,284(4,851)

110,125

67,641

Non-controlling interests

107,628
2,496

65,117
2,523

Total comprehensive income for the period

110,125

67,641

Profit for the period
Other comprehensive income / (loss), net of income tax
Items that will not be reclassified subsequently to
profit or loss

Items that may be reclassified subsequently to
profit or loss
Exchange differences on translating
foreign operations
Cash flow hedges
Share of other comprehensive income of associates

Total comprehensive income for the period
Attributable to:
Owners of the Parent- 22 -

(3) Interim Condensed Consolidated Statement of Changes in Equity
For the three months ended 30 November 2019
(Millions of yen)
Other components of equity

Notes

As at 1 September 2019
Effect of change in accounting
policyBalance after adjustment

Capitalstock

CapitalsurplusRetainedearnings

Treasurystock, atcost

10,273

20,603928,748(15,271)

FinancialassetsForeign
Share of othermeasured
Cash flow
currency
comprehensive
at fair value
hedgetranslation
income ofthrough otherreserve
reserveassociatescomprehensive
income / (loss)(697)(13,929)

8,906

(11)

Equityattributable
Nonto owners controllingof theinterest
ParentTotal(5,732)

938,62144,913Total
equity983,534--(32,817)

-

-

-

-

-

-

(32,817)(1,386)(34,204)

10,273

20,603895,930(15,271)(697)(13,929)

8,906

(11)

(5,732)905,803

43,526

949,329--70,907

-

-

-

-

-

-

70,907932

71,840

-

-

-

-

18

15,811

20,872

19

36,72136,721

1,563

38,284--70,907-18

15,811

20,872

19

36,721

107,6282,496

110,125

Net changes during the period
Comprehensive income
Profit for the period
Other comprehensive
income / (loss)
Total comprehensive income
Transactions with the owners of
the Parent
Acquisition of treasury stock

-

-

-

(5)

-

-

-

-

-

(5)

-

(5)

Disposal of treasury stock

-

291

-

32

-

-

-

-

-

323

-

323

-

-

(24,494)

-

-

-

-

-

-

(24,494)-(24,494)

-

2,271

-

-

-

-

-

-

-

2,271

-

2,271

-

-

-

-

-

-

(2,973)-(2,973)(2,973)(375)(3,349)-2,563(24,494)

26--(2,973)-(2,973)(24,878)(375)(25,254)

Dividends
Share-based payments
Transfer to non-financial
assetsTotal transactions with theowners of the Parent
Total net changes during the period
As at 30 November 2019

8

-

2,563

46,41226

18

15,811

17,89819

33,74782,7502,120

84,871

10,27323,167942,343(15,245)

(679)

1,881

26,8048

28,015988,554

45,646

1,034,201- 23 -

For the three months ended 30 November 2020
(Millions of yen)
Other components of equity

Note

As at 1 September 2020

FinancialassetsTreasury
Foreign
Share of othermeasured
Cash flow
stock, atcurrency
comprehensive
at fair value
hedge
cost
translation
income ofthrough otherreserve
reserveassociatescomprehensive
income / (loss)

Total

Equityattributable
Nonto owners controllingof theinterests
ParentCapitalstock

CapitalsurplusRetainedearnings

Total
equity10,27323,365

933,303(15,129)385(8,489)12,905

(51)

4,749

956,562

39,516

996,079--

70,381

-

-

-

-

-

-

70,381

2,111

72,492

-

-

-

-

337

5,245

(10,860)

13(5,263)(5,263)412(4,851)--

70,381

-

337

5,245

(10,860)

13(5,263)

65,117

2,523

67,641

Net changes during the period
Comprehensive income
Profit for the period
Other comprehensive income/(loss)
Total comprehensive income
Transactions with the owners of
the Parent
Acquisition of treasury stock

-

-

-

(2)

-

-

-

-

-

(2)

-

(2)

Disposal of treasury stock

-

474

-

57

-

-

-

-

-

532

-

532

-

-

(24,504)

-

-

-

-

-

-

(24,504)-(24,504)

-

1,320

-

-

-

-

-

-

-

1,320

-

1,320

-

-

-

-

-

-

(1,955)-(1,955)(1,955)(86)(2,041)

-

-

581

-

(581)

-

-

-

(581)

-

-

-

-

1,794

(23,922)

55

(581)

-

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

Dividends
Share-based payments
Transfer to non-financial
assetsTransfer to retained earnings
Total transactions with theowners of the Parent
Total net changes during the period
As at 30 November 2020

8

-

1,794

46,458

55

(243)

5,245

(12,815)

13(7,799)40,5082,437

42,945

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

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

41,953

1,039,025- 24 -

(4) Interim Condensed Consolidated Statement of Cash Flows(Millions of yen)Three months ended
30 November 2019

Three months ended
30 November 2020

Profit before income taxes
Depreciation and amortization

102,015
43,067

107,164
44,565

Impairment losses
Interest and dividend income

836(2,921)132(1,043)

Interest expenses
Foreign exchange losses / (gains)

1,894(9,297)

1,812
5,160

(249)

(215)

Losses on disposal of property, plant and equipment(Increase) / Decrease in trade and other receivables

73(77,222)96(52,415)(Increase) / Decrease in inventories
Increase / (Decrease) in trade and other payables(4,963)32,042

15,18820,554(Increase) / Decrease in other assets
Increase / (Decrease) in other liabilities(65)
31,703(10,170)
26,617965

4,928

Cash generated from operations

117,879

162,376

Interest and dividends income received
Interest paid

2,891
(1,081)928(1,048)

Income taxes paid

(22,039)(21,922)Net cash generated by operating activities

97,650140,334(30,454)(23,614)

Note
Cash flows from operating activities

Share of profit and loss of associates accounted for using theequity method

Others, net

Cash flows from investing activities
Amounts deposited into bank deposits with original maturitiesof three months or longer
Amounts withdrawn from bank deposits with original
maturities of three months or longer
Payments for property, plant and equipment

21,327

24,932(14,127)(14,211)

Payments for intangible assets
Payments for acquisition of right-of-use assets(5,433)(2,636)(3,257)(245)

Payments for lease and guarantee deposits
Proceeds from collection of lease and guarantee deposits(1,609)
1,000

(863)
796

Payments for acquisition of investments in associates
Others, net(1,334)(4,232)
1,398

Net cash generated by / (used in) investing activities(33,267)(19,296)- 25 -

(Millions of yen)Three months ended
30 November 2019

Three months ended
30 November 2020

625-

24,483(23,539)(24,473)(32,819)(24,478)(35,176)26

55(56,640)(58,655)

20,769(1,306)

Cash and cash equivalents at the beginning of period

28,511
1,086,519

61,076
1,093,531

Cash and cash equivalents at the end of period

1,115,031

1,154,607

Note
Cash flows from financing activities
Proceeds from short-term loans payable
Repayment of short-term loans payable
Dividends paid to owners of the Parent
Repayments of lease liabilities

8

Others, net
Net cash generated by / (used in) financing activities
Effect of exchange rate changes on the balance of cash held in
foreign currencies
Net increase in cash and cash equivalents- 26 -

Notes to the Interim Condensed Consolidated Financial Statements
1. Reporting Entity
FAST RETAILING CO., LTD. is a company incorporated in Japan. The locations of the registered headquarters and principal
offices of the Company are disclosed on the Group’s website (http://www.fastretailing.com/eng/).
The principal activities of the Company and its consolidated subsidiaries are the operations of the UNIQLO business (i.e., casualclothing retail business operating under the “UNIQLO” brand in Japan and overseas), GU business (i.e., casual clothing retailbusiness operating under the “GU” brand in Japan and overseas), Theory business (i.e., apparel design and retail business in Japanand overseas), and other businesses.
2. Basis of Preparation
The interim condensed consolidated financial statements have been prepared in compliance with IAS 34. The Group meets all of
the criteria of a “specified company” defined under Article 1-2 of the Consolidated Quarterly Financial Statements Rules, andaccordingly applies Article 93 of the Consolidated Quarterly Financial Statements Rules. Since the interim condensed consolidated
financial statements do not include all the information and disclosures required for consolidated financial statements, they should
be read in conjunction with the Group’s annual consolidated financial statements for the year ended 31 August 2020.
The interim condensed consolidated financial statements were approved on 14 January 2021 by Tadashi Yanai, Chairman,
President and CEO, and Takeshi Okazaki, Group Executive Vice President and CFO.

- 27 -

3. Significant Accounting Policies
The accounting policies presented in the consolidated financial statements for the year ended 31 August 2020 are appliedconsistently in the preparation of these interim condensed consolidated financial statements.
4. Use of Estimates and Judgments
The preparation of the interim condensed consolidated financial statements requires management to make judgments, estimatesand assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income andexpenses. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. The effects of the review of accounting estimates arerecognized in the accounting period in which the estimates were reviewed and in future accounting periods.
With the global spread of Covid-19, the Group's performance has been adversely affected due to temporarily closing stores, etc.
Regarding impairment of our non-financial assets, although we assume that business activities will gradually return to normal, we
estimate that the impact of the Covid-19 pandemic will continue to be felt through to the end of August 2021, and we are working
on the assumption that we will see recovery from that point onward. The estimates are made while taking into consideration thelevel of impact that differs from region to region and case-by-case basis.
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.

- 28 -

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, PRINCESSE TAM.TAM and J Brand clothing business(ii) Segment revenue and results
For the three months ended 30 November 2019
(Millions of yen)

Others(Note 1)

Adjustments(Note 2)

Interim
Condensed
Consolidated
Statement ofProfit or Loss

Reportable segments
GlobalBrandsTotal

UNIQLOJapan

UNIQLOInternational

Revenue

233,031

280,748

72,94936,113622,842642-

623,484

Operating profit/(loss)

38,557

37,836

12,376

1,870

90,639

(33)

1,084

91,69039,45237,02012,3771,770

90,621(33)

11,427102,015

GU

Segment income/(loss)(i.e., profit/ loss before
income taxes)(Note 1) “Others” includes the real estate leasing business, etc.
(Note 2) “Adjustments” mainly includes revenue and corporate expenses which are not allocated to individual reportable segments.
For the three months ended 30 November 2020
(Millions of yen)

Others(Note 1)

Adjustments(Note 2)

Interim
Condensed
Consolidated
Statement ofProfit or Loss

Reportable segments
GlobalBrandsTotal

UNIQLOJapan

UNIQLOInternational

Revenue

253,851

260,630

76,51428,068619,064

732-

619,797

Operating profit/(loss)

60,083

41,42013,604(222)

114,885(17)(1,774)

113,094

59,79640,744

13,495(345)

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

GU

Segment income/(loss)(i.e., profit/ losses before
income taxes)(Note 1) “Others” includes the real estate leasing business, etc.
(Note 2) “Adjustments” mainly includes revenue and corporate expenses which are not allocated to individual reportable segments.
6. Inventories
Write-down of inventories to their net realizable values recognized in expenses is as follows:(Millions of yen)

Write-down of inventories to net realizable value- 29 -

Three months ended
30 November 2019

Three months ended
30 November 2020

1,981

2,710

7. Property, Plant and Equipment
The breakdown of the carrying amount of property, plant and equipment at each reporting date is as follows:(Millions of yen)
As at
31 August 2020

As at
30 November 2020

Buildings and structures

104,201

108,707

Furniture, equipment and vehicles

16,77318,081

Land

1,927

1,927

Construction in progress

13,22014,838136,123

143,556

Total
8. Dividends
The total amount of dividends paid was as follows:
For the three months ended 30 November 2019

Total dividends(Millions of yen)

Resolution
Meeting of the Board on 5 November 2019

Dividends per share(Yen)

24,494240

Dividends were declared on 5 November 2019 and paid on 8 November 2019. The effective date of the dividend was forshareholders as at 31 August 2019.
For the three months ended 30 November 2020
Total dividends(Millions of yen)

Resolution
Meeting of the Board on 4 November 2020

Dividends per share(Yen)

24,504

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.

- 30 -

240

9. Revenue
The Group conducts its global clothing retail operations through both physical stores and e-commerce channels. The
following is a breakdown of total revenue by major regional market operation.
Three months ended 30 November 2019
Revenue(Millions of yen)

Percent of Total
(%)

Japan

233,03137.4

Greater China

142,671

22.9

Other parts of Asia & Oceania

66,307

10.6

North America & Europe

71,769

11.5

UNIQLO (Note 1)

513,780

82.4

GU (Note 2)

72,949

11.7

Global Brands (Note 3)

36,113

5.8

642

0.1

623,484

100.0

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

South Korea, Singapore, Malaysia, Thailand, the Philippines, Indonesia,
Australia, India

North America & Europe:

United States of America, Canada, United Kingdom, France, Russia,
Germany, Belgium, Spain, Sweden, the Netherlands, Denmark, Italy(Note 2) Main national and regional market:(Note 3) Main national and regional markets:

Japan
North America, Europe, Japan(Note 4) The “Others” category includes real estate leasing operations.

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Three months ended 30 November 2020
Revenue(Millions of yen)

Percent of Total
(%)

Japan

253,851

41.0

Greater China

152,861

24.7

Other parts of Asia & Oceania

54,4398.8

North America & Europe

53,329

8.6

UNIQLO (Note 1)

514,482

83.0

GU (Note 2)

76,514

12.3

Global Brands (Note 3)

28,068

4.5

732

0.1

619,797

100.0

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

South Korea, Singapore, Malaysia, Thailand, the Philippines,
Indonesia, Australia, Vietnam, India

North America & Europe:

United States of America, Canada, United Kingdom, France, Russia,
Germany, Belgium, Spain, Sweden, the Netherlands, Denmark, Italy(Note 2) Main national and regional market:(Note 3) Main national and regional markets:

Japan
North America, Europe, Japan(Note 4) The “Others” category includes real estate leasing operations.
10. Selling, General and Administrative Expenses
The breakdown of selling, general and administrative expenses for each reporting period is as follows:(Millions of yen)Three months ended
30 November 2019

Three months ended
30 November 2020

Advertising and promotion

21,925

19,260

Lease expenses

20,302

18,377

Depreciation and amortization

43,06744,565

Outsourcing

11,941

11,603

Salaries

75,03872,301

Distribution

28,20826,189Others23,61520,948224,098

213,245

Selling, general and administrative expenses

Total- 32 -

11. Other Income and Other Expenses
The breakdown of other income and other expenses for each reporting period is as follows:(Millions of yen)Three months ended
30 November 2019

Three months ended
30 November 2020

3,317

1,332

766

884

4,083

2,216

Other income
Foreign exchange gains (Note)
Others
Total(Millions of yen)Three months ended
30 November 2019

Three months ended
30 November 2020

Loss on retirement of property, plant and equipment

73

96

Impairment losses

836

132

Others

557

684

1,467

913

Other expenses

Total(Note) Currency adjustments incurred in the course of operating transactions are included in “other income”.
12. Finance Income and Finance Costs
The breakdown of finance income and finance costs for each reporting period is as follows:(Millions of yen)Three months ended
30 November 2019

Three months ended
30 November 2020

Foreign exchange gains (Note)

9,297

-

Interest income

2,910

1,035

11

16

12,219

1,051

Finance income

Others
Total(Millions of yen)Three months ended
30 November 2019

Three months ended
30 November 2020

-

5,160

1,894

1,812

-

7

1,894

6,980

Finance costs
Foreign exchange losses (Note)
Interest expenses
Others
Total(Note) Currency adjustments incurred in the course of non-operating transactions are included in “finance income” and "financecosts".

- 33 -

13. Earnings per ShareThree months ended 30 November 2019
Equity per share attributable to ownersof the Parent (Yen)Three months ended 30 November 2020
9,685.06

Equity per share attributable to ownersof the Parent (Yen)9,764.13

Basic earnings per share (Yen)694.73

Basic earnings per share (Yen)

689.29Diluted earnings per share (Yen)693.59Diluted earnings per share (Yen)

688.17(Note) The basis for calculation of basic earnings per share and diluted earnings per share is as follows:
Three months ended
30 November 2019

Three months ended
30 November 2020

70,90770,381--70,90770,381102,064,495

102,106,878--

Increase in number of common stock (Shares)

167,866

166,859(Number of share subscription rights included in increase)(167,866)(166,859)

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

14. Fair Value of Financial Instruments
Information about the carrying amount and fair value of financial instruments is as follows:(Millions of yen)
As at 31 August 2020
Carrying amounts

Fair value

As at 30 November 2020
Carrying amounts

Fair value

Financial assets
Security deposits and guarantees
Total

63,63964,34164,134

65,14363,63964,34164,134

65,143

469,342

470,938

469,382

472,486

469,342

470,938

469,382

472,486

Financial liabilities
Corporate bonds (Note)
Total(Note) The amount above include the outstanding balance of corporate bonds due within one year.
The fair values of financial assets and financial liabilities, which are measured by amortized cost, approximate their carrying
amounts.
The fair value of security deposits and guarantees is calculated on the basis of the present value, applying the current market
interest rate.
The fair value of corporate bonds is calculated with reference to publicly available market prices.
The fair value measurements of corporate bonds and security deposits and guarantees are classified as Level 2.

- 34 -

The following tables illustrate the fair value measurement hierarchy of the Group’s financial instruments. All assets and liabilities
for which fair value is measured or disclosed in the interim condensed financial statements are categorized within the fair value
hierarchy based on the following characteristics:
Level 1 - based on quoted prices (unadjusted) in active markets for identical assets or liabilities
Level 2 - based on valuation techniques for which the lowest level input that is significant to the fair value measurement isobservable, either directly or indirectly
Level 3 - based on valuation techniques for which the lowest level input that is significant to the fair value measurement isunobservable
When multiple inputs are used to measure fair value, the fair value level is determined based on the input with the lowest levelclassification in the overall fair value assessment.
The following tables illustrate the fair value measurement hierarchy of the Group’s financial instruments:(Millions of yen)
As at 31 August 2020
Financial assets measured at fair value through othercomprehensive income

Level 1

Level 2

Level 3

Total

1,158

-

212

1,370

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

-

1,550

-

1,550

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

17,878-17,878

1,158

19,428212

20,799Fair value(Millions of yen)
As at 30 November 2020
Financial assets measured at fair value through othercomprehensive income

Level 1

Level 2

Level 3

Total

741

-

212

954

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

-

1,031

-

1,031

Net financial assets and financial liabilities
designated as hedging instruments - Fair value-(1,522)-(1,522)

Fair value

741

(490)

212

463

For the valuation of Level 2 derivative financial instruments for which a market value is available, we use a valuation model thatuses observable data on the measurement date using inputs such as interest rates, yield curves, currency rates and volatility incomparable instruments.
Financial instruments 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.

- 35 -

15. Commitments for Expenditures
The Group had the following commitments at each reporting date:(Millions of yen)
As at
31 August 2020

As at
30 November 2020

Commitment for the acquisition of property, plant and equipment

24,942

25,429Commitment for the acquisition of intangible assets

2,139

2,811

27,081

28,241Total
16. Subsequent Events
Not applicable.

- 36 -

2. Others
Dividends
The Company resolved to pay dividends from retained earnings at the meeting of the Board convened on 4 November 2020.
The total amount of dividends paid and the amount per share are stated under “Financial Section 1. Interim Condensed
Consolidated Financial Statements, Notes to the Interim Condensed Consolidated Financial Statements 8. Dividends”.

- 37 -

(TRANSLATION)
INDEPENDENT ACCOUNTANT’S REVIEW REPORT
14 January, 2021
To the Board of Directors of FAST RETAILING CO., LTD.:
Deloitte Touche Tohmatsu LLC
Tokyo office
Designated Engagement Partner,
Certified Public Accountant
Koichi Okubo
Designated Engagement Partner,
Certified Public Accountant
Hirofumi Otani
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")
included in the Financial Section, namely, the interim condensed consolidated statement of financial position as at 30 November,
2020, and the interim condensed consolidated statement of profit or loss, comprehensive income, changes in equity and cash flows forthe three-month period then ended, and the related notes.
Based on our review, nothing has come to our attention that causes us to believe that the accompanying interim condensed
consolidated financial statements do not present fairly, in all material respects, the consolidated financial position of the Group as at
30 November, 2020, and the consolidated results of their operations and their cash flows for the three-month period then ended inaccordance 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.
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:- 38 -

• 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.

- 39 -