FAST RETAILING CO., LTD.
迅銷有限公司Third Quarterly Report 2014/15
2015.3.1–2015.5.31
Stock Code: 6288

Contents
Corporate Profile

2

Financial Highlights

3Management Discussion and Analysis

5

Information about the Reporting Entity

8

Financial Section

10

Interim Condensed Consolidated Statement of
Financial Position

11

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

12Interim Condensed Consolidated Statement of
Changes in Equity

16

Interim Condensed Consolidated Statement of Cash Flows

18

Notes to the Interim Condensed Consolidated
Financial Statements

20

Others28

Report on Review of Interim Condensed Consolidated
Financial Statements

29

Corporate Profile
Board of Directors
Executive Director

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

Mr. Tadashi Yanai (Chairman of the Board, President andChief Executive Officer)

Non-Executive Directors
Principal Place of Business in Hong Kong

Mr. Toru Murayama (External Director)
Mr. Takashi Nawa (External Director)

704-705, 7th Floor, Miramar Tower,
No. 132 Nathan Road
Tsim Sha Tsui
KowloonHong Kong

Independent Non-Executive Directors
Mr. Toru Hambayashi (External Director)
Mr. Nobumichi Hattori (External Director)
Mr. Masaaki Shintaku (External Director)

HDR Registrar and HDR Transfer Office
Statutory Auditors

Computershare Hong Kong Investor Services Limited
Shops 1712–1716, 17th Floor
Hopewell Centre
183 Queen’s Road East
WanchaiHong Kong

Mr. Akira Tanaka (Kansayaku) (Standing Statutory Auditor)
Mr. Masaaki Shinjo (Kansayaku) (Standing Statutory
Auditor)Mr. Takaharu Yasumoto (Shagai Kansayaku)(External Statutory Auditor)
Mr. Akira Watanabe (Shagai Kansayaku)(External Statutory Auditor)
Ms. Keiko Kaneko (Shagai Kansayaku)(External Statutory Auditor)

Stock CodeHong Kong: 6288
Japan: 9983

Joint Company Secretaries

Website Address

Japan: Mr. Mitsuru Ohki
Hong Kong: Ms. Choy Yee Man

http://www.fastretailing.com

Auditors
Ernst & Young ShinNihon LLC

Principal Banks
Sumitomo Mitsui Banking Corporation
The Bank of Tokyo-Mitsubishi UFJ, 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
Financial Summary

Term

Third Quarterof
53rd Year

Third Quarterof
54th Year

53rd Year

Accounting period

Nine months
ended
31 May 2014

Nine months
ended
31 May 2015

Year ended
31 August2014

1,088,032

1,348,114

1,382,935

Operating profit (Millions of yen)

139,704

189,274

130,402

Profit before income taxes (Millions of yen)

142,930

210,282

135,470

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

87,344132,364

74,546Comprehensive income attributable to ownersof the parent (Millions of yen)

84,890233,428

75,517

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

625,987

820,414618,381

Total assets (Millions of yen)

978,833

1,270,600

992,307

Basic earnings per share for the period (year) (Yen)857.12

1,298.60

731.51

Diluted earnings per share for the period (year) (Yen)856.291,296.99

730.81

64.0

64.6

62.3

112,406

181,105

110,595

Revenue (Millions of yen)

Ratio of equity attributable to owners of
the parent to total assets (%)
Net cash from operating activities (Millions of yen)
Net cash used in investing activities (Millions of yen)

(37,995)(60,800)(56,323)

Net cash used in financing activities (Millions of yen)

(35,785)(41,118)(44,060)

Cash and cash equivalents at end of the period (year)(Millions of yen)339,427424,081

314,049

Three months
ended
31 May 2014

Three months
ended
31 May 2015

Revenue (Millions of yen)323,654

398,429

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

20,26527,611

Basic earnings per share for the period (Yen)

198.85270.86

Accounting period(Notes)1. The Company has prepared interim condensed consolidated financial statements, and therefore has not included
information regarding changes in key management indices for the submitting company.
2. Revenue does not include consumption taxes, etc.
3. The financial figures are quoted from 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 business engaged in by the Group (the Company and its subsidiaries) during
the nine months ended 31 May 2015.
Important changes concerning subsidiaries are as follows:(UNIQLO International)
Newly consolidated subsidiary:
UNIQLO Washington LLCUNIQLO CANADA INC.
Excluded from consolidation:
UNIQLO (Germany) GmbH
(Global Brands)
Newly consolidated subsidiary:
THEORY CANADA INC.
Excluded from consolidation:
COMPTOIR DES COTONNIERS FRANCE S.A.S.
A.M.B. S.A.S.
(Others)
Newly consolidated subsidiary:
FAST RETAILING CANADA INC.

—4—

Management Discussion and Analysis
Business Review
1. Business and Operational Risks
No new business-related risks have arisen during the nine months ended 31 May 2015.
There have been no important changes concerning business-related risks as stated in the annual report for the preceding
consolidated fiscal year.

2.

Significant Contract in Business Operation
None.

3.

Financial Analysis(1)

Results of Operations
The Fast Retailing Group reported increases in both revenue and profit during the first nine months of fiscal year 2015,or the period spanning 1 September 2014 to 31 May 2015. Consolidated revenue totaled ¥1.3481 trillion (+23.9% yearon-year), consolidated operating profit reached ¥189.2 billion (+35.5% year-on-year), consolidated profit before income
taxes stood at ¥210.2 billion (+47.1% year-on-year) and profit attributable to owners of the parent totaled ¥132.3 billion(+51.5% year-on-year). All Group operations reported increases in revenue and profit, while UNIQLO International
performed particularly strongly during the nine-month period. Consolidated profit before income taxes and profit
attributable to owners of the parent both increased by a greater margin than consolidated operating profit. This was due
largely to the depreciation of the Japanese yen over the nine months ended 31 May 2015, which boosted the carrying
amount of foreign-currency denominated assets, generating net finance income of ¥21.0 billion.
The Group’s medium-term vision is to become the world’s number one apparel manufacturer and retailer. In pursuit ofthis aim, we are committed to promoting corporate globalization, Group-wide cooperation, and renewed entrepreneurial
spirit. We have focused much of our efforts on building up our global UNIQLO operations, by accelerating the pace of
new store openings outside of Japan. We have also opened global flagship stores, hotspot stores, and large-format storesin major cities around the world, in order to boost awareness and visibility of the UNIQLO brand, and to strengthen
our global operational base. Within our Global Brands segment, we have been actively expanding our low-priced GU
casualwear brand, and our Theory fashion label.
UNIQLO Japan
UNIQLO Japan generated stronger-than-expected increases in both revenue and profit in the nine months from 1
September 2014 to 31 May 2015. Revenue expanded to ¥638.1 billion (+12.0% year-on-year), and operating profit
increased to ¥113.7 billion (+21.6% year-on-year). Same-store sales expanded a strong 8.8% year-on-year during the ninemonth period. In addition, operating profit increased significantly, thanks to a 1.0% improvement in the gross profit torevenue margin and a 0.6% fall in the selling, general and administrative expenses to revenue ratio.
The strong rise in same-store sales at UNIQLO Japan was largely attributable to firm sales of core Fall Winter ranges such
as HEATTECH and Ultra Light Down, followed by strong sales of Spring Summer ranges such as bottom wear and AIRism
innerwear.
The total number of UNIQLO Japan directly-run stores, excluding the 30 franchise outlets, decreased by 27 to 814 storesat the end of May 2015, reflecting our “scrap and build” strategy to increase average store size by replacing smaller, lessefficient stores with larger ones. Of these 27, 9 were converted from directly-run stores to employee-franchise outlets.

—5—

UNIQLO International
UNIQLO International reported increases in both revenue and profit that were roughly in line with our expectations forthe nine months from 1 September 2014 to 31 May 2015. Revenue increased to ¥481.8 billion (+47.0% year-on-year), andoperating profit expanded to ¥51.9 billion (+55.0% year-on-year). Within the UNIQLO International framework, Greater
China (Mainland China, Hong Kong, and Taiwan) and South Korea reported higher-than-expected increases in revenue
and profit thanks to continued strong growth in same-store sales in the third quarter from March to May 2015. The total
number of UNIQLO International stores expanded to 767 stores at the end of May 2015, a net addition of 169 storescompared to the end of May 2014.
Breaking down the UNIQLO International results into individual operations, UNIQLO Greater China exceeded expectationsin terms of revenue and profit growth in the nine months to 31 May 2015. During that time, the operation opened 78
new stores and closed 10 stores, bringing the total number of UNIQLO stores in Greater China to 442 at the end of May
2015. UNIQLO South Korea also reported higher-than-expected increases in revenue and profit. Profits at UNIQLO Europe(United Kingdom, France, Russia and Germany) declined in the third quarter after the 311 Oxford Street global flagshipstore closed for refurbishment from March. However, UNIQLO Europe did report a rise in revenue and profits for the fullnine-month period through to the end of May 2015. Operating losses expanded at UNIQLO USA after persistently sluggish
sales led to greater discounting. While slightly below target, UNIQLO Southeast Asia (Singapore, Malaysia, Thailand,
the Philippines and Indonesia) did report rises in both revenue and profit. Meanwhile, UNIQLO’s operation in Australia
performed roughly to plan.
Global Brands
Global Brands reported increases in revenue and profit in the first nine months of fiscal year 2015. Revenue increasedto ¥225.9 billion (+19.6% year-on-year) and operating profit expanded to ¥19.7 billion (+37.8% year-on-year). Our lowpriced GU fashion casualwear brand exceeded our expectations by reporting significant increases in both revenue andprofit. Powerful advertising campaigns for winter items such as skirts, knitwear items and winter outerwear, and thensummer items such as gaucho pants and our comfortable but beautiful “yurukire” ranges all generated strong sales.
This helped boost GU’s same-store sales and operating profit margin. By contrast, the Theory fashion label fell short ofour target, reporting a contraction in profits on the back of the continued slump in the US luxury market. Our Comptoir
des Cotonniers label and Princesse tam.tam label reported flat year-on-year performances. Finally, J Brand reported
persistent operating losses, despite a rise in sales.
Corporate Social Responsibility (“CSR”) and Environmental Protection
The basic policy underlying the Group’s CSR activities consists of fulfilling our social responsibility, addressing social issues
and creating new value, both globally and locally.
To ensure responsible purchasing practices, we conduct Work Environment Monitoring for partner garment factories andEnvironment Monitoring for fabric manufacturers. We also started introducing Work Environment Monitoring for fabricmanufacturers. We will continue strengthening our activities to uphold human rights and safe working conditions in
manufacturing facilities.
In April we launched the Factory Worker Empowerment Project, an initiative that supports female garment workers
by donating part of the proceeds from a new women’s capsule collection inspired by Bangladesh traditional dress. In
Bangladesh, an important production base for the company, basic educational opportunities are particularly limited for
women. The project supports around 20,000 working women to acquire a range of living skills in nutrition and household
management.
The Power of Clothing Project strives to broaden children’s awareness and promote the collection of clothing for children
in need, as part of the All-Product Recycling Initiative for schools. In 2015, the third year of this project, around 25,000
students from 238 schools throughout Japan are expected to participate. UNIQLO employees visit participating schools togive presentations on the role of clothing and refugee issues and students conduct a clothing drive on their own. We thendelivers donated items to refugee camps.

—6—

(2)

Financial Positions
Total assets as at 31 May 2015 were ¥ 1,270.6 billion, which was an increase of ¥278.2 billion relative to the end of
the preceding consolidated fiscal year. The principal factors were an increase of ¥ 114.6 billion in derivative financial
assets, an increase of ¥ 22.5 billion in property, plant and equipment and an increase of ¥ 110.0 billion in cash and cash
equivalents.
Total liabilities as at 31 May 2015 were ¥423.6 billion, which was an increase of ¥67.4 billion relative to the end of thepreceding consolidated fiscal year. The principal factors were an increase of ¥3.6 billion in trade and other payables, anincrease of ¥5.5 billion in income taxes payable and an increase of ¥35.9 billion in deferred tax liabilities.
Total net assets as at 31 May 2015 were ¥846.9 billion, which was an increase of ¥210.8 billion relative to the end of thepreceding consolidated fiscal year. The principal factors were an increase of ¥101.0 billion in other components of equity
and an increase of ¥99.2 billion in retained earnings.

(3)

Cash Flows Information
Cash and cash equivalents as at 31 May 2015 had increased by ¥84.6 billion from the nine months ended 31 May 2014, to¥424.0 billion.
Net cash from operating activities for the nine months ended 31 May 2015 was ¥181.1 billion, which was an increase of¥68.6 billion (+61.1 % year-on-year) from the nine months ended 31 May 2014. The principal factors were ¥210.2 billion in
profit before income taxes, ¥36.5 billion decrease in inventories and ¥66.5 billion in income taxes paid.
Net cash used in investing activities for the nine months ended 31 May 2015 was ¥60.8 billion, which was an increase of
22.8 billion (+60.0 % year-on-year) from the nine months ended 31 May 2014. The principal factors were ¥32.4 billion forpurchases of property, plant and equipment, and ¥17.3 billion for increase in bank deposits with maturity over 3 months.
Net cash used in financing activities for the nine months ended 31 May 2015 was ¥41.1 billion, which was an increase of¥5.3 billion (+14.9% year-on-year) from the nine months ended 31 May 2014. The principal factor was ¥33.1 billion for
cash dividends paid.

(4)

Operational and Financial Assignment
There has been no important changes during the nine months ended 31 May 2015 concerning issues that must be
addressed by the Group.

(5)

Research and Development
Not applicable.

(6)

Important Facilities
The following are the important facilities that were newly completed during the nine months ended 31 May 2015.
<Subsidiaries in Japan>
Company name

Type of facility

Name of business

Location

Completion date

UNIQLO CO., LTD

UNIQLO JapanStoresUNIQLO KichijojiStoreMusashino-city,
Tokyo

October 2014

UNIQLO CO., LTD

UNIQLO JapanStoresUNIQLO OSAKA

Osaka-city, Osaka

October 2014

<Overseas Subsidiaries>
Not applicable.

—7—

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

Total number of shares
Type

Total number of authorised shares (shares)

Common stock

300,000,000
Total

300,000,000(Note) There are no provisions for preemptive rights under the Companies Act of Japan, which would oblige the Company tooffer new shares on a pro rata basis to existing shareholders.
(ii)

Shares Issued

Type

As at 31 May 2015

Number of shares issued
as of submission date
(Shares)(As at 15 July 2015)

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

Details

First section of the Tokyo
Stock Exchange and theMain board of The Stock
Exchange of Hong 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)

Content of Rights Plan
Not applicable.

(5)

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

Date

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

1 March 2015 to
31 May 2015—

106,073,656—

10,273—

4,578(Note) There was no increase or decrease in the total number of shares issued, capital stock or capital reserve during the threemonths ended 31 May 2015.

(6)

Principal Shareholders
There are no items to state, as the accounting period under review is the third quarter accounting period.

—8—

(7)

Voting Rights
Concerning “Voting Rights” as at the end of the third quarterly accounting period ended 31 May 2015, it has not beenpossible to confirm and state the details entered in the register of shareholders. Therefore, the stated details are basedon the register of shareholders as of the immediately preceding record date (28 February 2015).

(i)

Shares issued
As at 31 May 2015

Class
Non-voting shares
Shares subject to restrictions on voting rights(treasury stock)
Shares subject to restrictions on voting rights(others)

Number of shares(Shares)Number of voting rights(Number)

Remarks

—

—

—

—

—

—

—

—

—

—

—

(Shares held astreasury stock)
Common stock

Shares with full voting rights(treasury stock, etc.)

4,139,400
Shares with full voting rights (others)

Common stock
101,887,200
Common stock

Shares less than one unit

47,056

Total number of shares issued

106,073,656

Total number of voting rights of allshareholders—(Notes)(ii)

1,018,872(Note) 1—(Notes) 1,2——
1,018,872—

1. The columns for the number of shares of “Shares with full voting rights (others)” and “Shares less than one unit”
respectively include 2,700 shares and 84 shares held in the name of Japan Securities Depository Center, Inc.
2. Common stock in the “Shares less than one unit” row includes 73 shares of treasury stock held by the Company.

Treasury StockAs at 31 May 2015

Name or trade name ofholderFAST RETAILING CO.,
LTD.
Total

2.

Holder’s address

717-1 Sayama,
Yamaguchi City,

Number of

Number ofshares held in
own nameshares held inother’s name(Shares)(Shares)

Total number

Percentage ofof shares held
(Shares)

total number ofshares issued (%)

4,139,400—

4,139,400

3.90

4,139,400—

4,139,400

3.90

Yamaguchi—

Board of Directors
Since the submission of the annual report for the preceding consolidated fiscal year, there has been no change ofdirectors during the nine months ended 31 May 2015.

—9—Financial Section
1. Preparation of Interim Condensed Consolidated Financial Statements
The interim condensed consolidated financial statements of the Group were prepared in compliance with International
Accounting Standard 34 “Interim Financial Reporting” (“IAS 34”), pursuant to Article 93 of the “Rules Governing Term, Form andPreparation of Consolidated Quarterly Financial Statements” (2007 Cabinet Office Ordinance No. 64, hereinafter referred to as“Consolidated Quarterly Financial Statements Rules”).
2. Review Certification
Pursuant to the first clause of Article 193-2 of the Financial Instruments and Exchange Act, the quarterly and interim condensed
consolidated financial statements of the Group for the three months and nine months ended 31 May 2015, respectively, arereviewed by Ernst & Young ShinNihon LLC.

— 10 —

(Amounts in millions of Japanese 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 2014ASSETS
Current assets
Cash and cash equivalents
Trade and other receivables
Other current financial assets
Inventories
Derivative financial assets
Income taxes receivable

314,049
47,4289,119
223,223
99,125
11,951
12,13913
6
13

OthersTotal current assets
Non-current assets
Property, plant and equipment
Goodwill
Other intangible assets
Non-current financial assets
Deferred tax assets

717,037
7

Others114,398
26,71546,96871,293
11,257
4,636

Total non-current assets

275,270

13

992,307

Total assets
Liabilities and equity
LIABILITIESCurrent liabilities
Trade and other payables
Derivative financial liabilities
Other current financial liabilities
Income taxes payable
Provisions

185,119
1,012
12,69632,75016,15425,46213
13

OthersTotal current liabilities
Non-current liabilities
Non-current financial liabilities
Provisions
Deferred tax liabilities

273,19613

27,604
7,694
37,387
10,383

Others

83,069Total non-current liabilities
Total liabilities
EQUITY
Capital stock
Capital surplus
Retained earnings
Treasury stock, at cost

356,265
10,273
9,803
525,722(15,790)
88,371Other components of equity
Equity attributable to owners of the parent
Non-controlling interests

618,381
17,660Total equity

636,041
992,307

Total liabilities and equity— 11 —

As at 31 May 2015

424,081
78,13730,242200,152
213,769
228
13,921
960,533
136,908
28,84051,352
76,681
11,444
4,839
310,066
1,270,600

188,747
75
13,51438,26812,65945,805
299,070
28,6899,805
73,297
12,820124,612423,683
10,273
11,459624,960(15,714)
189,434
820,41426,502846,916
1,270,600

(2)Interim Condensed Consolidated Statement of Profit or Loss and Interim Condensed Consolidated Statement ofComprehensive Income
Interim Condensed Consolidated Statement of Profit or Loss
Nine months ended 31 May 2015
(Millions of yen)
Notes

Nine months ended
31 May 2014

Revenue

1,088,032(539,343)

Cost of sales
Gross profit
Selling, general and administrative expenses
Other income

910

Other expenses

10

Operating profit
Finance income

11

Finance costs

11

548,688(411,606)
4,166(1,544)
139,704
3,949
(723)

Profit before income taxes
Income taxes

142,930(50,945)

Profit for the period

91,984Attributable to:
Owners of the parent

Nine months ended
31 May 2015
1,348,114(661,656)
686,458(502,805)
9,641(4,020)189,274
21,840(833)
210,282(70,272)
140,009

Non-controlling interests

87,344
4,640

Profit for the period

91,984132,3647,645
140,009857.12856.291,298.60
1,296.99

Earnings per share
Basic (Yen)
Diluted (Yen)1212— 12 —

Three months ended 31 May 2015
(Millions of yen)
Notes

Three months ended
31 May 2014

RevenueThree months ended
31 May 2015

323,654(152,455)

398,429(191,489)

171,199(139,096)
1,263
(692)

206,940(166,471)
1,566(2,838)32,674316(622)

39,197
7,717(298)

Income taxes

32,367(11,194)

46,615(17,577)

Profit for the period

21,17329,038Non-controlling interests

20,265908

27,611
1,427

Profit for the period

21,17329,038198.85
198.65270.86207.51

Cost of sales
Gross profit
Selling, general and administrative expenses
Other income
Other expenses
Operating profit
Finance income
Finance costs
Profit before income taxes

Attributable to:
Owners of the parent

Earnings per share
Basic (Yen)
Diluted (Yen)1212— 13 —

Interim Condensed Consolidated Statement of Comprehensive Income
Nine months ended 31 May 2015
(Millions of yen)
Nine months ended
31 May 2014
Profit for the period
Other comprehensive income
Other comprehensive income that will not bereclassified to profit or loss
Other comprehensive income to be reclassified to
profit or loss in subsequent periods
Net gain/(loss) on revaluation of available-for-saleinvestments
Exchange differences on translation offoreign operations

Nine months ended
31 May 2015

91,984140,009

―

―

42

(517)

5,553
(7,385)26,00277,820

Other comprehensive income, net of taxes(1,789)103,306

Total comprehensive income for the period

90,195

243,316

Non-controlling interests

84,8905,305

233,428
9,888

Total comprehensive income for the period

90,195

243,316

Cash flow hedges

Attributable to:
Owners of the parent— 14 —

Three months ended 31 May 2015
(Millions of yen)Three months ended
31 May 2014
Profit for the period
Other comprehensive income
Other comprehensive income that will not bereclassified to profit or loss
Other comprehensive income to be reclassified to
profit or loss in subsequent periods
Net gain/(loss) on revaluation of available-for-saleinvestments
Exchange differences on translation offoreign operations

Three months ended
31 May 2015

21,17329,038

―

—

(25)

171

182
(7,475)8,714
21,758Other comprehensive income, net of taxes(7,318)30,644

Total comprehensive income for the period

13,854

59,682

Non-controlling interests

12,3791,474

57,336
2,346

Total comprehensive income for the period

13,854

59,682

Cash flow hedges

Attributable to:
Owners of the parent— 15 —

(3)Interim Condensed Consolidated Statement of Changes in Equity
For nine months ended 31 May 2014
(Millions of yen)
Other components of equity

Note
As at 1 September 2013
Net changes during theperiodComprehensive income
Profit for the period
Other comprehensive
incomeTotal comprehensive
incomeTransactions with theownersAcquisition of treasury
stock
Disposal of treasury
stock
Dividends
Share-based payments
OthersTotal transactions with theownersTotal net changes during
the period
As at 31 May 20148

Equityattributableto owners
Nonof the controlling
Totalparent interests

Total
equityCapitalstock

CapitalsurplusRetainedearnings

Foreign
Treasury Available- currency Cash-flow
stock,
for-sale translation
hedge
at costreserve
reserve
reserve

10,273

6,859

481,746(15,851)

731

16,452

70,21587,399570,428

19,298589,726——

87,344

—

—

—

—

—

87,344

4,640

91,984

—

—

—

—

42

4,671

(7,167)(2,454)(2,454)665(1,789)——87,344

—

42

4,671

(7,167)(2,454)84,8905,305

90,195

—

—

—

(25)

—

—

—

—

(25)

—

(25)

—
—
—
—

401
—
782
—

—
(30,571)
—
—

79
—
—
—

—
—
—
—

—
—
—
—

—
—
—
—

—
—
—
—

481
(30,571)
782
—

—
(633)
—
134

481
(31,204)
782
134

—

1,184

(30,571)

54

—

—

—

—

(29,332)(498)(29,830)—

1,184

56,773

54

42

4,671

(7,167)(2,454)55,5584,806

60,365

10,273

8,043

538,520(15,797)774

21,12363,04884,945625,987

24,104650,091— 16 —

For nine months ended 31 May 2015
(Millions of yen)
Other components of equity

Note
As at 1 September 2014
Net changes during theperiodComprehensive income
Profit for the period
Other comprehensive
incomeTotal comprehensive
incomeTransactions with theownersAcquisition of treasury
stock
Disposal of treasury
stock
Dividends
Share-based payments
OthersTotal transactions with theownersTotal net changes during
the period
As at 31 May 20158

Equityattributableto owners
Nonof the controlling
Totalparent interests

Total
equityCapitalstock

CapitalsurplusRetainedearnings

Foreign
Treasury Available- currency Cash-flow
stock, atfor-sale translation
hedge
cost
reserve
reserve
reserve

10,273

9,803

525,722(15,790)798

23,03564,53688,371

618,381

17,660636,041——

132,364

—

—

—

—

—

132,3647,645

140,009

—

—

—

—

(517)

23,93577,645101,063

101,063

2,242

103,306——

132,364—(517)

23,93577,645101,063

233,428

9,888

243,316

—

—

—

(5)

—

—

—

—

(5)

—

(5)

—
—
—
—

557
—
1,098
—

—
(33,126)
—
—

80
—
—
—

—
—
—
—

—
—
—
—

—
—
—
—

—
—
—
—

638
(33,126)
1,098——(1,226)—180

638(34,352)
1,098
180

—

1,655

(33,126)

75

—

—

—

—

(31,394)(1,046)(32,441)—

1,655

99,23875(517)

23,93577,645101,063

202,033

8,841

210,874

10,273

11,459624,960(15,714)281

46,971

142,181

189,434

820,41426,502846,916— 17 —

(4)Interim Condensed Consolidated Statement of Cash Flows(Millions of yen)
Nine months ended
31 May 2014

Profit before income taxes
Depreciation and amortization
Increase/(decrease) in allowance for doubtful accounts
Increase/(decrease) in other provisions
Interest and dividend income
Interest expenses
Foreign exchange losses/(gains)
Losses on retirement 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

Nine months ended
31 May 2015

142,930
21,64511(4,001)(643)
723(3,305)
151(23,739)
2,634(3,272)(433)
24,555(1,588)210,282
27,549(3)(4,915)(1,013)829(20,035)
2,085(28,197)
36,524(8,313)(4,189)23,159(277)

Income taxes refund

155,668640(633)(53,223)
9,954

233,484
1,013(751)(66,522)
13,881

Net cash from operating activities

112,406

181,105

Others, net—(30,656)
1,399(4,673)(4,224)579(2,337)
1,459
178
(276)
553

(17,394)(32,469)
230(5,710)(7,927)
3,442(1,937)
1,352
49
(83)
(351)

Net cash used in investing activities(37,995)(60,800)

Others, net
SubtotalInterest and dividend income received
Interest paid
Income taxes paid

Decrease/(increase) in bank deposits
with maturity over 3 months
Purchases of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchases of intangible assets
Payments for lease and guarantee deposits
Proceeds from collection of lease and guarantee deposits
Increase in construction assistance fund receivables
Decrease in construction assistance fund receivables
Increase in guarantee deposits received
Decrease in guarantee deposits received— 18 —

Note
Net increase/(decrease) in short-termloans payable
Repayment of long-term loans payable
Cash dividends paid
Cash dividends paid to non-controlling interests
Repayments of lease obligations

Nine months ended
31 May 2014

Nine months ended
31 May 2015

Others, net

876(2,351)(30,544)(633)(2,550)(582)

Net cash used in financing activities(35,785)(878)(2,977)(33,105)(1,226)(3,355)425(41,118)

4,093

30,845

Cash and cash equivalents at beginning of period

42,718296,708

CASH AND CASH EQUIVALENTS AT END OF PERIOD

339,427

110,032
314,049
424,0818

Effect of exchange rate changes on cash andcash equivalents
Net increase/(decrease) in cash andcash equivalents— 19 —

Notes to the Interim Condensed Consolidated Financial Statements
1. Reporting Entity
FAST RETAILING CO., LTD. (the “Company”) 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 (the “Group”) are the UNIQLO business (casual
wear retail business operating under the “UNIQLO” brand in Japan and overseas) and GU business, Theory business (appareldesigning and retail business in Japan and overseas), etc.
2. Basis of Preparation
The interim condensed consolidated financial statements of the Group have been prepared in compliance with
International Accounting Standard 34 “Interim Financial Reporting” (“IAS 34”). The Group adopted Article 93 of Consolidated
Quarterly Financial Statements Rules, because the Group meets the criteria of a “specified company” defined under Article
1-2 of the said rules. Since the interim condensed consolidated financial statements do not include all the information anddisclosures 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 2014.
The interim condensed consolidated financial statements were approved on 15 July 2015 by Tadashi Yanai, Chairman,
President and CEO, and Takeshi Okazaki, Group Senior 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 2014 are applied consistently in the preparation of these interim
condensed consolidated financial statements.
The Group adopted the following new and revised standards and interpretations starting from the preparation of theinterim condensed consolidated financial statements for the three months ended 30 November 2014.
IFRS

Title

Summary of new standards and amendments

IAS 32 (Amendments)

Amendments to IAS 32 —Financial Instruments:
Presentation

Offsetting financial assets and financial liabilities.

IAS 36 (Amendments)

Amendments to IAS 36 —Impairment of Assets

Recoverable amount disclosures for non-financial assets.

IAS 39 (Amendments)

Amendments to IAS 39 —Financial Instruments:
Recognition and Measurement

Novation of derivatives and continuation of hedge
accounting.

IFRIC 21

LeviesClarifies the timing of recognition of liability for a levy when
the activity that triggers payment, as identified by therelevant legislation, occurs.

IFRS 10 (Amendments)

Amendments to IFRS 10 —Consolidated Financial
Statements

Defines investment entity and provide an exception to
the consolidation requirement for entities that meet thedefinition of investment entity.

IFRS 12 (Amendments)

Amendments to IFRS 12 —Disclosures of interests
in other entities

Sets out the disclosure requirements for investment
entities.

There is no significant impact on the interim condensed consolidated financial statements upon adoption.

— 20 —

4. Use of Estimates and Judgments
The preparation of the interim condensed consolidated financial statements in accordance with IAS 34 requires
management to make judgments, estimates and assumptions that affect the application of accounting policies and thereported amounts of assets and liabilities, income and expenses. 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 are recognized in the accounting period in which the estimates were reviewed and in future accounting periods.
In principle, important estimates and judgments that have significant effects on the amounts recognized in the interim
condensed consolidated financial statements are the same as the preceding consolidated fiscal year.
5. Segment information(i) Description of reportable segments
The Group’s reportable segments are components for which discrete financial information is available and is reviewed
regularly by the Board to make decisions about the allocation of resources and to assess performance.
The Group’s main retail clothing business is divided into three reportable operating segments: UNIQLO Japan, UNIQLOInternational 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
Global Brands: GU, Theory, COMPTOIR DES COTONNIERS, PRINCESSE TAM.TAM and J Brand clothing operations(ii) Method of calculating segment revenue and results
The methods of accounting for the reportable segments are the same as those stated in the “Significant Accounting
Policies” of the Group’s annual consolidated financial statements for the year ended 31 August 2014.
The Group does not allocate assets and liabilities to individual reportable segments.
(iii) Segment information
For the nine months ended 31 May 2014
(Millions of yen)
Reportable segments
UNIQLOJapan

UNIQLOInternational

GlobalBrandsTotal

Interim
Condensed
Adjustments Consolidated
Statement ofProfit or Loss

Others(Note)

Revenue

569,488327,756

188,889

1,086,134

1,897

—

1,088,032

Operating profit

93,58533,53014,358141,47454(1,824)

139,704

Segment income(profit before
income taxes)

93,80033,18014,834

141,81653

1,060

142,930(Note) “Others” include real estate leasing business, etc.

— 21 —

For the nine months ended 31 May 2015
(Millions of yen)
Reportable segments
UNIQLOUNIQLOInternational

Japan

GlobalBrandsTotal

Interim
Condensed
Adjustments Consolidated
Statement ofProfit or Loss

Others(Note)

Revenue

638,104

481,876

225,970

1,345,951

2,162

—

1,348,114

Operating profit

113,773

51,95919,787

185,51945

3,709

189,274

Segment income(profit before
income taxes)

116,964

51,977

19,762

188,70445

21,532

210,282(Note) “Others” include real estate leasing business, etc.
For the three months ended 31 May 2014
(Millions of yen)
Reportable segments
UNIQLOJapan

UNIQLOInternational

GlobalBrandsTotal

Interim
Condensed
Adjustments Consolidated
Statement ofProfit or Loss

Others(Note)

Revenue

163,896

95,69063,521

323,108546—

323,654

Operating profit

21,861

7,265

4,845

33,97236(1,335)32,674

Segment income(profit before
income taxes)

21,761

7,429

4,915

34,10636(1,775)32,367(Note) “Others” include real estate leasing business, etc.
For the three months ended 31 May 2015
(Millions of yen)
Reportable segments
UNIQLOJapan

UNIQLOInternational

GlobalBrandsTotal

Interim
Condensed
Adjustments Consolidated
Statement ofProfit or Loss

Others(Note)

Revenue

183,602136,372

77,716397,690739—

398,429

Operating profit

24,310

9,097

8,046

41,45530(2,288)39,197

Segment income(profit before
income taxes)

26,144

9,982

8,046

44,17330

2,412

46,615(Note) “Others” include real estate leasing business, etc.

— 22 —

6. Inventories
Write-down of inventories to net realizable value and recongized as expenses is as follows:(Millions of yen)
Nine months ended
31 May 2014
Write-down of inventories to net realizable value

Nine months ended
31 May 2015
1,690

2,377

7. Property, plant and equipment
The breakdown of property, plant and equipment at each reporting date is as follows:(Millions of yen)
As at
31 August 2014
Buildings and structures
Furniture, equipment and vehicles
Land
Construction in progress
Total

As at
31 May 2015
80,131
24,8693,374
6,021

100,149
29,4903,030
4,236

114,398

136,908

8. Dividends
The total amount of dividends paid was as follows:
Dividends paid during the nine months ended 31 May 2014
Total dividends(Millions of yen)

Resolution

Dividends per share(Yen)

Meeting of the Board of Directors on 4 November 201315,284150

Meeting of the Board of Directors on 10 April 201415,286150

Dividends for which the declared date is 31 August 2013 are paid on or after 22 November 2013 as the effective date.
Dividends for which the declared date is 28 February 2014 are paid on or after 12 May 2014 as the effective date.
Dividends paid during the nine months ended 31 May 2015
Total dividends(Millions of yen)

Resolution

Dividends per share(Yen)

Meeting of the Board of Directors on 3 November 201415,287150

Meeting of the Board of Directors on 9 April 2015

17,838175

Dividends for which the declared date is 31 August 2014 are paid on or after 21 November 2014 as the effective date.
Dividends for which the declared date is 28 February 2015 are paid on or after 11 May 2015 as the effective date.

— 23 —

9. Selling, general and administrative expenses
The breakdown of selling, general and administrative expenses for each reporting period is as follows:(Millions of yen)
Nine months ended
31 May 2014
Selling, general and administrative expenses
Advertising and promotion
Rental expenses
Depreciation and amortization
Outsourcing
Salaries
Others
Total

Nine months ended
31 May 2015

49,416105,172
21,645
16,499134,818
84,05353,713
127,674
27,54921,367
167,683
104,816

411,606

502,805

10. Other income and other expenses
The breakdown of other income and other expenses for each reporting period is as follows:(Millions of yen)
Nine months ended
31 May 2014
Other income
Foreign exchange gains*
Gains on sales of property, plant and equipment
Others
Total

Nine months ended
31 May 2015
2,423
881
862

8,118
38
1,485

4,166

9,641

* Currency adjustments incurred in the course of operating transactions are included in “other income”.
(Millions of yen)
Nine months ended
31 May 2014
Other expenses
Loss on retirement of property,
plant and equipment
OthersTotal— 24 —

Nine months ended
31 May 2015

151
1,392

2,085
1,934

1,544

4,020

11. Finance income and finance costs
The breakdown of finance income and finance costs for each reporting period is as follows:(Millions of yen)
Nine months ended
31 May 2014
Finance income
Foreign exchange gains*
Interest income
Dividend income
Others
Total

Nine months ended
31 May 2015
3,305
630
13
—

20,035
978
34
792

3,949

21,840* Currency adjustments incurred in the course of non-operating transactions are included in “finance income”.
(Millions of yen)
Nine months ended
31 May 2014
Finance costs
Interest expenses
Others
Total

Nine months ended
31 May 2015
723
—

829
3

723

833

12. Earnings per share
Nine months ended 31 May 2014
Equity per share attributable to ownersof the parent (Yen)
Basic earnings per share for the period (Yen)
Diluted earnings per share for the period (Yen)

Nine months ended 31 May 2015
6,125.72
857.12856.29Equity per share attributable to ownersof the parent (Yen)
Basic earnings per share for the period (Yen)
Diluted earnings per share for the period (Yen)

8,048.03
1,298.60
1,296.99(Note) The basis for calculation of basic earnings per share and diluted earnings per share for the period is as follows:
Nine months ended
31 May 2014
Basic earnings per share for the period
Profit for the period attributable to ownersof 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 during the period(Shares)
Diluted earnings per share for the period
Adjustment to profit (Millions of yen)
Increase in number of common stock (Shares)(share subscription rights)— 25 —

Nine months ended
31 May 2015

87,344132,364——

87,344132,364

101,905,654

101,928,795—
98,137(98,137)—
126,620(126,620)

Three months ended 31 May 2014
Basic earnings per share for the period (Yen)
Diluted earnings per share for the period (Yen)Three months ended 31 May 2015
198.85
198.65

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

270.86270.51(Note) The basis for calculation of basic earnings per share and diluted earnings per share for the period is as follows:
Three months ended
31 May 2014
Basic earnings per share for the period
Profit for the period attributable to ownersof 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 during the period(Shares)
Diluted earnings per share for the period
Adjustment to profit (Millions of yen)
Increase in number of common stock (Shares)(share subscription rights)

Three months ended
31 May 2015

20,26527,611——

20,26527,611

101,914,110

101,937,554—
101,683(101,683)—
132,190(132,190)

13. Fair value of financial instruments
The information about carrying amount and fair value of financial instruments is as follows:(Millions of yen)
As at 31 August 2014
Carrying amounts

As at 31 May 2015

Fair value

Carrying amounts

Fair value

Short-term borrowings
Long-term borrowings (Note)
Lease obligations (Note)

2,857
23,104
11,5992,857
22,065
11,3791,894
23,704
12,844

1,894
23,883
12,841

Total

37,56136,30238,44338,619(Note) The above includes the outstanding balance of borrowings due within 1 year.
The fair value of short-term financial assets, short-term financial liabilities, long-term financial assets and long-term
financial liabilities are measured by amortized cost and approximate their carrying amounts.
The fair value of long-term borrowings and lease obligations are classified by term, and are calculated on the basis of thecurrent value applying a discount rate that takes into account time remaining to maturity and credit risk.
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 financial statements are categorized within the fair value
hierarchy described as follows:
Level 1
Level 2——

Level 3—

based on quoted prices (unadjusted) in active markets for identical assets or liabilities
based on valuation techniques for which the lowest level input that is significant to the fair value
measurement is observable, either directly or indirectlybased on valuation techniques for which the lowest level input that is significant to the fair value
measurement is unobservable— 26 —

(Millions of yen)
As at 31 August 2014

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

243

―

207

450

―

(118)

―

(118)

―

98,231―

98,231

243

98,112

207

98,563(Millions of yen)

As at 31 May 2015
Available-for-sale financial assets
Financial instruments at FVTPL
Foreign currency forward contracts designatedas hedging instruments
Total

Level 1

Level 2

Level 3

Total

436
―

―
456

222
―

658
456

―

213,238―

213,238436

213,694

222

214,353

For the valuation of level 2 derivative financial instruments for which a market value is available, we use a valuation
model that uses observable data on the measurement date as indicators such as interest rates, yield curves, currency rates
and volatility in comparable instruments.
Unlisted securities are included in level 3. There is no significant increase or decrease in level 3 items through purchase,
disposal or settlement. Also, there is no transfer from level 3 to level 2.
14. Commitments
The Group had the following commitments at each reporting dates:(Millions of yen)
As at 31 August 2014
Commitment for acquisition of property,
plant and equipment
Commitment for acquisition of intangible assets
Total
15. Subsequent Events
Not applicable.

— 27 —

As at 31 May 2015

5,487
373

7,128
339

5,861

7,467

2. Others
Dividends
The Company resolved to pay a dividend from retained earnings at the meeting of the Board of Directors convened on 9
April 2015.
The total amount of dividend and amount per share are stated under “Financial section 1. Interim Condensed
Consolidated Financial Statements, Notes to the Interim Condensed Consolidated Financial Statements 8. Dividends”.

— 28 —

Report on review of interim condensed consolidated financial statements
Board of Directors
FAST RETAILING CO., LTD.
Ernst & Young ShinNihon LLC
Shigeyuki Amimoto
Certified Public Accountant
Designated and Engagement Partner
Shuji Kaneko
Certified Public Accountant
Designated and Engagement Partner
Yoshihisa Shibayama
Certified Public Accountant
Designated and Engagement Partner
Pursuant to first clause of Article 193-2 of the Financial Instruments and Exchange Act, we have reviewed the interim condensed
consolidated financial information included in the financial section, which comprises the interim condensed consolidated
statement of financial position of FAST RETAILING CO., LTD. (the “Company”) and its subsidiaries (collectively, the “Group”) as at
31 May 2015, and the related interim condensed consolidated statement of profit or loss and interim condensed consolidated
statement of comprehensive income for the three-month and the nine-month period then ended, interim condensed
consolidated statement of changes in equity and interim condensed consolidated statement of cash flows for the nine-month
period then ended, and other explanatory notes (the “Interim Financial Information”).
Management’s responsibility for the interim condensed consolidated financial statements
Management is responsible for the preparation and fair presentation of the Interim Financial Information in accordance with
International Accounting Standard 34 “Interim Financial Reporting” (“IAS 34”), pursuant to Article 93 of the “Rules GoverningTerm, Form and Preparation of Consolidated Quarterly Financial Statements”, and for such internal control as management
determines is necessary to enable the preparation of interim condensed consolidated financial statements that are free frommaterial misstatement, whether due to fraud or error.
Auditors’ responsibility
Our responsibility is to express a conclusion on the Interim Financial Information based on our review. Our report is made solely
to you, as a body, and for no other purpose. We do not assume responsibility towards or accept liability to any other person forthe contents of this report.
We conducted our review in accordance with quarterly review standards generally accepted in Japan. A review of Interim
Financial Information consists of making inquiries, primarily of persons responsible for financial and accounting matters, andapplying analytical and other quarterly review procedures. A review is substantially less in scope than an audit conducted inaccordance with auditing standards generally accepted in Japan and consequently does not enable us to obtain assurance that
we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit
opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe that the accompanying interim condensed
consolidated financial statements are not prepared, in all material respects, in accordance with IAS 34.
Conflicts of Interest
We have no interest in the Company which should be disclosed in compliance with the Certified Public Accountants Act.
Ernst & Young ShinNihon LLC
Tokyo, Japan
15 July 2015
(Note)
This is an English translation of the Japanese language Independent Auditors’ Report issued by Ernst & Young ShinNihon LLC
in connection with the review of the interim condensed consolidated financial statements of the Group prepared in Japanese
for the period ended 31 May 2015. Ernst & Young ShinNihon LLC has not reviewed the English language version of the interim
condensed consolidated financial statements for the above mentioned period.

— 29 —