FAST RETAILING CO., LTD.
迅銷有限公司Third Quarterly Report 2019/20
2020.3.1–2020.5.31
Stock Code: 6288

Contents
1. Corporate Profile

1

2. Financial Highlights

2

3. Management Discussion and Analysis

3

4. Information about the Reporting Entity

8

5. Financial Section

10

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

11(2) Interim Condensed Consolidated Statement ofProfit or Loss and Interim Condensed Consolidated
Statement of Comprehensive Income

13Interim Condensed Consolidated Statement of Profit or Loss

13

Interim Condensed Consolidated Statement ofComprehensive Income15(3) Interim Condensed Consolidated Statement of
Changes in Equity

17(4) Interim Condensed Consolidated Statement of Cash Flows19

2. Others

37

Independent Accountant’s Review Report38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
Takaharu Yasumoto (External)
Keiko Kaneko (External)
Takao Kashitani (External)

Stock CodeHong Kong: 6288
Japan: 9983

Company Secretary
Shea Yee Man

Website Address
https://www.fastretailing.com

Independent Accountants
Deloitte Touche Tohmatsu LLC
Principal Banks
Sumitomo Mitsui Banking Corporation
MUFG Bank, Ltd.
Mizuho Bank, Ltd.
The Hong Kong and Shanghai Banking Corporation Limited
Registered Office and Headquarters
717-1 Sayama, Yamaguchi City
Yamaguchi 754-0894
Japan

- 1 -

2. Financial Highlights
Consolidated Financial Summary
Term

58th Fiscal
Year

59th Fiscal
Year

58th Fiscal
Year

Accounting period

Nine months
ended
31 May2019

Nine months
ended
31 May2020

Year ended
31 August2019

1,822,877

1,544,924

2,290,548

Operating profit (Millions of yen)

247,688

132,383

257,636

Profit before income taxes (Millions of yen)

247,211

142,420

252,447

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

158,668

90,640

162,578

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

147,420

119,501

140,900

Equity attributable to owners of the Parent (Millions of yen)963,770968,616

938,621

Total assets (Millions of yen)

1,974,493

2,337,738

2,010,558

Basic earnings per share (Yen)

1,554.94

887.96

1,593.20

Diluted earnings per share (Yen)

1,552.35

886.42

1,590.55

48.8

41.4

46.7

Net cash generated by operating activities (Millions of yen)

286,216

173,122300,505

Net cash used in investing activities (Millions of yen)

(73,575)(70,097)(78,756)

Net cash used in financing activities (Millions of yen)

(94,753)(149,492)(102,429)

1,105,085

1,045,734

1,086,519

Three months
ended
31 May2019

Three months
ended
31 May2020

Revenue (Millions of yen)

555,180

336,411

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

44,639(9,818)

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

437.41(96.18)

Revenue (Millions of yen)

Ratio of equity attributable to owners of the Parent to total assets (%)

Cash and cash equivalents at end of the period (Millions of yen)Accounting period(Notes) 1. FAST RETAILING CO., LTD. (the “Company”, “Parent”, or “reporting entity”) prepared interim condensed consolidated
financial statements and therefore has not included the 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”).
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 nine months ended 31 May 2020.
In addition, there were no significant changes in the organizational structure of the Group, including the major subsidiaries, during thenine months ended 31 May 2020.

- 2 -3. Management Discussion and Analysis
Business Review
1. Business and Operational Risks
For the nine-month period ended 31 May 2020 and as of the date of submission of this quarterly report (10 July 2020), thefollowing item should be added to business risks described in the Securities Report for the fiscal year ended 31 August 2019.
・Due to the global spread of COVID-19, the temporary closure of stores may cause a deterioration in performance and adversely
affect the product supply system.

2. Financial Analysis(1) Financial Position and Results of Operations(ⅰ) Results of Operations
The Fast Retailing Group’s revenue and profit declined significantly in the first nine months of fiscal 2020 from 1 September
2019 to 31 May 2020. Consolidated revenue totaled 1.5449 trillion yen (-15.2% year-on-year) and operating profit totaled 132.3
billion yen (-46.6% year-on-year). This weak performance was caused primarily by the impact of COVID-19, which spurred ourdecision to either temporarily close or introduce shorter opening hours for many stores and resulted in large reductions in bothrevenue and profit across all four business segments. The worsening in business performance also prompted us to record
impairment losses of 15.2 billion yen on property, plant, and equipment for loss-making stores and right-of-use assets. Underfinance income net of costs, we recorded 10.0 billion yen after reporting a net 7.6 billion yen foreign-exchange gain on our longterm holdings of foreign-currency denominated assets. As a result, profit before income taxes declined to 142.4 billion yen (42.4% year-on-year) and profit attributable to owners of the Parent declined to 90.6 billion yen (-42.9% year-on-year) in the ninemonths to 31 May 2020.
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 each 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. Within
the UNIQLO International segment, Greater China (Mainland China, Hong Kong and Taiwan) and Southeast Asia are serving as
the key pillars of our Group's business and growth. In terms of our GU segment, in addition to expanding the GU store network
primarily in Japan, we are working to establish GU’s position as a brand that offers fun fashion at amazingly low prices.
UNIQLO Japan
UNIQLO Japan reported large declines in both revenue and profit in the first nine months of fiscal 2020, with revenue declining
to 598.8 billion yen (-14.6% year-on-year) and operating profit contracting to 79.1 billion yen (-18.1% year-on-year). Thisdecline in performance was due to a considerable worsening in UNIQLO Japan results caused by the COVID-19 impact for thethree months from March to May 2020, when revenue declined by 35.5% year-on-year and operating profit plummeted by 74.0%
year-on-year.
In March to May 2020, UNIQLO Japan same-store sales (including e-commerce sales) declined by 34.0% year-on-year following
the temporary closure of a maximum 311 out of a total 813 stores during the period from late March through to early May.
However, sales subsequently started to recover from the middle of May onwards once our stores reopened for business, resulting
in a significant recovery in sales for the month of June. Meanwhile, e-commerce sales continued strong, recording a very healthy
47.7% year-on-year rise in the third quarter as digital advertising and TV commercials drew more customers to our online store.
The gross profit margin improved 3.3 points year-on-year in the third quarter on the back of tighter discounting margins
following our decision to restrict highly aggressive discounts to attract customers, and on improved cost of sales generated by theconsistent appreciation in the yen exchange rate for merchandise purchasing. In light of the large decline in revenue, UNIQLO
Japan’s selling, general and administrative expense ratio increased by 9.5 points year-on-year in the third quarter, but those
expenses declined year-on-year in monetary terms.
As part of our plan to open new stores where customers can truly experience our LifeWear clothing concept and LifeWear
products, UNIQLO Japan opened the UNIQLO PARK Yokohama Bayside Store in April 2020, followed by UNIQLO Harajuku
in early June, and UNIQLO TOKYO in Marronnier Gate Ginza, UNIQLO’s biggest global flagship store in Japan, later in June.
All three stores got off to a strong start.
UNIQLO International
UNIQLO International reported a sharp decline in both revenue and profit in the first nine months of fiscal 2020, with revenue
falling to 673.5 billion yen (-17.9% year-on-year) and operating profit contracting to 51.8 billion yen (-58.5% year-on-year).
- 3 -In the three months from March to May 2020, all markets reported large declines in revenue and profit as a result of COVID-19,
but e-commerce sales expanded strongly thanks to concerted efforts to strengthen digital marketing and expand free delivery
services in all UNIQLO International operations. Breaking down the third-quarter performance into individual regions, while
Greater China reported a large decline in revenue and profit for the quarter, both revenue and profit actually increased year-onyear in May and the region is now exhibiting a favorable pace of recovery. In South Korea, same-store sales declined sharply asJapan-Korean tensions and COVID-19 knocked customer visits lower, resulting in an overall operating loss for the quarter.
UNIQLO South, Southeast Asia & Oceania, which includes Southeast Asian nations, Australia, and India, reported a sharp
decline in revenue and an operating loss for the quarter after stores had to temporarily close their doors due to COVID-19 fromthe middle of March and tourist numbers also declined as a result of the virus. However, performance recovered favorably andexceeded expectations in Vietnam after that nation lifted its lockdown relatively quickly compared to other markets. Nearly all
our stores in North America remained closed from the middle of March through end of May, resulting in a large decline inrevenue and a wider operating loss for the quarter. UNIQLO Europe also reported a sharp fall in revenue and an expanding
operating loss as stores in the region’s larger markets of the UK, France, and Russia remained closed for business from the
middle of March through to the end of May.
GU
Our GU operation reported a rise in revenue but a significant decline in operating profit in the nine months to May 2020, withrevenue climbing to 187.4 billion yen (+1.1% year-on-year) but operating profit declining to 20.4 billion yen (-22.2% year-onyear). While GU managed to maintain a strong performance and generate double-digit growth in both revenue and profit in thefirst half from September 2019 to February 2020, revenue subsequently declined by 19.0% year-on-year and operating profit
declined by 61.8% year-on-year in the third quarter from March to May 2020, owing to the COVID-19 impact.
In the March-to-May quarter, same-store sales declined by a considerable 27.0% year-on-year after a maximum of 192 stores
were temporarily closed for business from the end of March through to the beginning of May. While performance did slump in
April when many stores were closed, same-store sales recovered to previous year levels in May as stores reopened for business.
Meanwhile, e-commerce sales near doubled year-on-year in the third quarter. GU’s gross profit margin declined 3.3 points yearon-year in the third quarter partly because the measure was being compared to an especially high level achieved in the previous
year and partly owing to stronger discounting of Spring Summer ranges. GU’s selling, general and administrative expense ratio
increased by 5.8 points year-on-year on the back of the heavy decline in sales, but, in monetary terms, business expenses declined
year-on-year.
Global Brands
Global Brands revenue and profit declined sharply in the first nine months of fiscal 2020. Revenue declined to 83.3 billion yen (26.7% year-on-year) and the segment posted an operating loss of 6.0 billion yen (compared to an operating profit of 4.6 billion in
the first nine months of fiscal 2019).
In the March-to-May quarter, Global Brands revenue declined 63.2% year-on-year and the segment posted an operating loss of
6.7 billion yen (compared to an operating profit of 1.4 billion yen in the third quarter of fiscal 2019). With nearly all stores inJapan closed temporarily from the latter part of April through to the middle of May and all stores in the United States closed fromthe middle of March through to the end of May, our Theory fashion label reported falling revenue and an operating loss for thethird quarter. Our PLST operation also reported a fall in revenue and an operating loss for the third quarter as a maximum 102
stores out of a total 104 stores were temporarily closed for business in the month of April. Finally, our France-based Comptoir
des Cotonniers brand recorded a wider year-on-year loss in the third quarter as nearly all stores in Europe were temporarily closed
from the middle of March through to the middle of May.

- 4 -

Sustainability
At Fast Retailing, we are promoting sustainability under the motto "From the power of clothing to the power of society." In Q3,
we are continuing in our sustainability efforts to respond to the COVID-19 outbreak and to protect the health and well-being of
our customers, our employees, our manufacturing partners and our communities. Our main activities are outlined below.
■ Community Support: Since March 2020, we have donated around 10 million masks to medical facilities around the world thatare battling the virus. And since April, we have delivered protective equipment for use in medical settings to facilities acrossJapan, including 1.2 million isolation gowns, 4 million masks, and UNIQLO's functional AIRism clothing. We have also donatedaround 230,000 items of UNIQLO clothing, including AIRism and HEATTECH products and down jackets (as of the end ofMay), via overseas affiliates to medical institutions and charity groups supporting vulnerable individuals such as the homeless in
26 countries and regions. We plan to continue these efforts going forward.
■ Store and employee measures: We have been temporarily closing stores or shortening business hours in accordance with thestate of COVID-19 in each country and region, but for those stores that have reopened, we are prioritizing the health of ourcustomers and employees by instituting policies such as temperature checks for staff members before starting work, maskwearing, hand-washing, mouth-rinsing and hand-sanitizing. We are also asking customers to wear masks, as well as to maintainsocial distancing during their visit. In order to make our locations a safe and secure place for our employees to work, we areproviding masks and disinfectant, in addition to promoting working from home for relevant locations and roles.
■ Supporting manufacturing partners and factory staff: We are implementing measures to help keep our manufacturing partners
and factory employees safe and secure. In order to reduce the risk of infection for our factory staff, we are asking employees toensure that they wash their hands regularly, undergo temperature checks and wear masks while inside the factory. For somefactories we are providing infrared thermometers free of charge, in order to help further control the risk of infection. We havealso established a help desk for wage compensation and other employment-related issues arising from the closure of our factories.
This is being done to help support and compensate our employees fairly. Additionally, we have taken measures to reduce
financial risks for factories owing to a reduction in orders received by flexibly adjusting the production schedule in manufacturingof our year-round products.

(ⅱ) Financial Position
Total assets as at 31 May 2020 were 2,337.7 billion yen, which was an increase of 327.1 billion yen relative to the end of thepreceding fiscal year. The principal factors were an increase of 373.1 billion yen in right-of-use assets, a decrease of 40.7 billion
yen in cash and cash equivalents and a decrease of 29.8 billion yen in inventories.
Total liabilities as at 31 May 2020 were 1,328.1 billion yen, which was an increase of 301.1 billion yen relative to the end of thepreceding fiscal year. The principal factors were an increase of 436.2 billion yen in lease liabilities, an increase of 85.6 billion yen
in other current financial liabilities, a decrease of 129.1 billion yen in non-current financial liabilities, a decrease of 40.3 billion
yen in trade and other payables and a decrease of 24.9 billion yen in other liabilities.
Furthermore, the increases of right-of-use assets and lease liabilities are due to the application of IFRS 16 Leases as mentioned in“Notes to the Interim Condensed Consolidated Financial Statements 3. Significant Accounting Policies”.
Total net assets as at 31 May 2020 were 1,009.5 billion yen, which was an increase of 26.0 billion yen relative to the end of thepreceding fiscal year. The principal factors were an increase of 7.3 billion yen in retained earnings and an increase of 19.8 billion
yen in other components of equity.

- 5 -(2) Cash Flow Information
Cash and cash equivalents as at 31 May 2020 had decreased by 40.7 billion yen from the end of the preceding fiscal year, to
1,045.7 billion yen.
(Operating Cash Flows)
Net cash generated by operating activities for the nine months ended 31 May 2020 was 173.1 billion yen, which was a decreaseof 113.0 billion yen (-39.5% year-on-year) from the nine months ended 31 May 2019. The principal factors were 142.4 billion
yen in profit before income taxes (a decrease of 104.7 billion yen from the nine months ended 31 May 2019), a decrease of 31.3
billion yen in inventories (a decrease of 113.3 billion yen from the nine months ended 31 May 2019), 131.1 billion yen in
depreciation and amortization (an increase of 94.5 billion yen from the nine months ended 31 May 2019), a decrease of 39.4
billion yen in trade and other payables (an increase of 33.1 billion yen from the nine months ended 31 May 2019), a decrease of
36.2 billion yen in other liabilities (a decrease of 29.5 billion yen from the nine months ended 31 May 2019), an increase of 14.9
billion yen in trade and other receivables (an increase of 15.1 billion yen from the nine months ended 31 May 2019) and 7.6
billion yen in foreign exchange gains (a decrease of 13.4 billion yen from the nine months ended 31 May 2019).
(Investing Cash Flows)
Net cash used in investing activities for the nine months ended 31 May 2020 was 70.0 billion yen, which was a decrease of 3.4
billion yen (-4.7% year-on-year) from the nine months ended 31 May 2019. The principal factors were a net increase of 14.6
billion yen in bank deposits with original maturity over three months (a decrease of 7.4 billion yen from the nine months ended
31 May 2019), 35.9 billion yen in payments for property, plant and equipment (an increase of 4.1 billion yen from the ninemonths ended 31 May 2019) and 4.8 billion yen in proceeds from collection of lease and guarantee deposits (a decrease of 1.8
billion yen from the nine months ended 31 May 2019).
(Financing Cash Flows)
Net cash used in financing activities for the nine months ended 31 May 2020 was 149.4 billion yen, which was an increase of
54.7 billion yen (+57.8% year-on-year) from the nine months ended 31 May 2019. The principal factors were 103.3 billion yen
in repayments of lease liabilities (an increase of 103.3 billion yen from the nine months ended 31 May 2019), 30.0 billion yen in
repayment of redemption of bonds for the nine months ended 31 May 2019 (a decrease of 30.0 billion yen from the nine months
ended 31 May 2019) and 0.9 billion yen in repayment of short-term loans payable (a decrease of 10.6 billion yen from the ninemonths ended 31 May 2019).
(3) Operational and Financial Challenges
There have been no significant challenges during the nine months ended 31 May 2020 that resulted in issues that must be
addressed by the Group.
(4) Research and Development
Not applicable.

- 6 -(5) Significant Facilities
The following are the significant facilities that were newly completed during the nine months ended 31 May 2020.
<Subsidiaries in Japan>
Not applicable.
<Overseas Subsidiaries>
Company name

Type of facility

UNIQLO EUROPE LIMITEDUNIQLOInternational StoreUNIQLO INDIA PRIVATEUNIQLO

LIMITEDInternational Store

Name of business

Location

UNIQLO Piazza
Cordusio

Milan,
Italy

UNIQLO Ambience
Mall Vasant Kunj
store

Completion date
September 2019

New Delhi,
India

October 2019

The following are the significant facilities that were newly planned during the nine months ended 31 May 2020.
<Subsidiaries in Japan>
Amount of planned
investment
Company name

Type offacility

Name ofbusiness

UNIQLO CO., LTD.

UNIQLOJapan StoreUNIQLO

Shibuya-ku,

Harajuku

Tokyo

UNIQLO CO., LTD.

UNIQLOJapan StoreUNIQLO

Chuo-ku,

TOKYO

Tokyo

Location

Construction Construction Planned sales
Amountfloor area
commencement completion
Total
already
date
date
(m2)
(Millions of disbursed
yen)(Millions of
yen)
1,028

988

2,577

1,358

November
2018
October2019

Reference

June 2020

2,039

Leasehold

June 2020

4,415

Leasehold(Notes) 1. It is expected that the Group will be able to meet its funding needs from equity capital.
2. The above figures do not include consumption taxes, etc.
<Overseas Subsidiaries>
Amount of planned
investment
Company nameUNIQLO EUROPE
LIMITED

Type offacility

UNIQLOInternational
Store

Name ofbusiness

UNIQLO
Westfield
Mallof Scandinavia

Location

Construction Construction Planned sales
Amountfloor area
commencement completion
Total
already
date
date
(m2)
(Millions of disbursed
yen)(Millions ofyen)

Stockholm,
Kingdom of

695

263

March 2020

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

3. Significant Contracts in Business Operation
None.

- 7 -

August2020

1,841

Reference

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

Total number of authorized shares

Common stock

300,000,000

Total

300,000,000(ii) Shares Issued
Number of shares issued
as at 31 May 2020

Type

Number of shares issued
as at submission date
(As at 10 July 2020)

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

Remarks

First section of the Tokyo
Stock Exchange andCommon stock

106,073,656

106,073,656

100 shares

the Main Board of
the Stock Exchange ofas one unit

Hong 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.
(2) Share Subscription Rights
1. Details of the Stock Option Program
Not applicable.
2. Other Share Subscription Rights
Not applicable.
(3) Exercise of Convertible Bonds with Conditional Permission for Adjustment of Exercise Price
Not applicable.
(4) Change in Total Number of Shares Issued, Capital Stock, Etc.
Date

Increase/(decrease) of
total number ofshares issued

Balance of total
number ofshares issued-

106,073,656

1 March 2020 to
31 May 2020

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 31
May 2020.
(5) Major Shareholders
There are no items to disclose, as the accounting period under review is the third quarter accounting period.

- 8 -(6) Voting Rights
Concerning “Voting Rights” as at the end of the third quarterly accounting period ended 31 May 2020, it has not been possible toconfirm and state the details entered in the register of shareholders. Therefore, the stated details are based on the register ofshareholders as at the immediately preceding record date (29 February 2020).
(i) Shares issued
As at 31 May 2020
Class

Number of shares

Number of voting rights

Remarks

Non-voting shares

-

-

-

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

-

-

-

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

-

-

-

-

-

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

Shares with full voting rights

Common stock

3,991,400(e.g., other than treasury stock)

1,020,165

102,016,500
Common stock

Shares less than one unit－

65,756

Total number of shares issued

106,073,656

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

1,020,165-(Note) 1.The columns for the number of shares of “Shares with full voting rights (e.g., other than treasury stock)” and “Shares lessthan one unit” include 2,700 shares and 84 shares, respectively, held in the name of Japan Securities Depository Center, Inc.
2. Common stock in the “Shares less than one unit” row includes 35 shares of treasury stock held by the Company.

(ii) Treasury StockAs at 31 May 2020
Name or trade name ofholderFAST RETAILING
CO., LTD.
Total

Holder’s address

Number ofshares held in
own name

Number ofshares held inother’s name

Total number ofshares held

Percentage of
total number ofshares issued (%)

717-1 Sayama,
Yamaguchi-shi,
Yamaguchi-

3,991,400－

3,991,400

3.76

3,991,400－

3,991,400

3.76

2. Directors
Since the submission of the year-end report for the preceding consolidated fiscal year, there has been no change of directors during
the nine months ended 31 May 2020.

- 9 -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 31 May 2020, the related interim condensed consolidated statements of profit or loss andinterim condensed consolidated statement of comprehensive income for the three-month and nine-month periods then ended, andthe interim condensed consolidated statements of changes in equity and cash flows for the nine-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 andPreparation of Consolidated Quarterly Financial Statements” (Cabinet Office Ordinance No. 64 of 2007, hereinafter referred to as“Consolidated Quarterly Financial Statements Rules”).
2. Review Report
Pursuant to the first clause of Article 193-2 of the Financial Instruments and Exchange Act, the interim condensed consolidated
financial statements have been reviewed by Deloitte Touche Tohmatsu LLC.

- 10 -

(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 2019

As at 31 May 2020

ASSETS
Current assets
Cash and cash equivalents

1,086,519

1,045,734

Trade and other receivables
Other financial assets

16

60,39844,47378,24063,366Inventories
Derivative financial assets

6
16

410,526
14,787

380,673
21,4691,492
19,975

5,361
12,773

1,638,174

1,607,620

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

7, 8
8

162,092－

132,750
373,184

Goodwill
Intangible assets

8

8,092
60,117

8,092
68,85816

77,02667,807

14,587

14,38333,16332,242

9,442
7,861

24,990
7,809

Financial assets
Investments in associates accounted
for using the equity method
Deferred tax assets
Derivative financial assets

16

Other assets
Total non-current assets
Total assets

372,384

730,118

2,010,558

2,337,738

191,769

151,420

159,006
2,985－

244,653
1,262

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

9, 16
16

Lease liabilities
Current tax liabilities

27,451

104,875
22,517

Other liabilities

13,34082,103822
57,110Total current liabilities

476,658

582,661499,948－

370,804
331,335

20,474
8,822

32,998
7,217

Other liabilities

3,838
17,281733
2,389

Total non-current liabilities

550,365

745,479

1,027,024

1,328,141

Provisions

Non-current liabilities
Financial liabilities
Lease liabilities

9, 16

Provisions
Deferred tax liabilities
Derivative financial liabilities

16

Total liabilities- 11 -

Notes

As at 31 August 2019

As at 31 May 2020

EQUITY
Capital stock
Capital surplus

10,273
20,603

10,27323,288Retained earnings
Treasury stock, at cost

928,748(15,271)936,141(15,155)

Other components of equity(5,732)

14,068Equity attributable to owners of the Parent

938,621968,616

Non-controlling interests

44,91340,979983,534

1,009,596

2,010,558

2,337,738

Total equity
Total liabilities and equity- 12 -

(2) Interim Condensed Consolidated Statement of Profit or Loss and Interim Condensed Consolidated Statement of Comprehensive
IncomeInterim Condensed Consolidated Statement of Profit or Loss
Nine months ended 31 May 2020
(Millions of yen)
Notes
Revenue

11

Cost of sales
Gross profit

Nine months ended
31 May 2019

Nine months ended
31 May 2020

1,822,877(930,200)

1,544,924(793,637)

Selling, general and administrative expenses

12

892,677(642,096)

751,286(608,029)

Other income
Other expenses

13
8, 13

3,469
(6,842)

7,098(18,425)480453

247,688

132,383

8,792(9,268)15,938(5,901)

Income tax expense

247,211(73,218)

142,420(50,944)

Profit for the period

173,993

91,475

Non-controlling interests

158,668
15,32590,640835

Total

173,993

91,475

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

14

Finance costs

14

Profit before income taxes

Profit for the period attributable to:
Owners of the Parent

Earnings per share
Basic (yen)15

1,554.94

887.96

Diluted (yen)15

1,552.35

886.42- 13 -

Three months ended 31 May 2020
(Millions of yen)Three months ended
31 May 2019

Three months ended
31 May 2020

Revenue

555,180

336,411

Cost of sales(269,276)(161,915)

Gross profit

285,904

174,495

Selling, general and administrative expenses
Other income(208,632)
1,363(169,231)
2,805

Other expenses
Share of profit and loss of associates accounted
for using the equity method(4,104)(12,825)

216

402

Operating profit/(loss)
Finance income

74,747
3,378(4,352)
2,408

Finance costs(5,127)(6,494)

Profit/(loss) before income taxes

72,997(8,438)

Income tax expense(23,934)(3,530)

Profit/(loss) for the period

49,062(11,969)

Non-controlling interests

44,6394,423(9,818)(2,150)Total

49,062(11,969)15

437.41(96.18)15436.69(96.18)

Notes

Profit/(loss) for the period attributable to:
Owners of the Parent

Earnings/(loss) per share
Basic (yen)Diluted (yen)- 14 -

Interim Condensed Consolidated Statement of Comprehensive Income
Nine months ended 31 May 2020
(Millions of yen)
Nine months ended
31 May 2019
Profit for the period
Other comprehensive income, net of income tax

Nine months ended
31 May 2020

173,993

91,475

Financial assets measured at fair value throughother comprehensive income

(393)

(244)

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

(393)

(244)

(15,266)

1,084

3,717
(0)

27,165(10)

Total items that may be reclassified subsequently to
profit or loss

(11,549)

28,239Other comprehensive (loss)/income, net of income tax(11,942)

27,994

162,051

119,470

Owners of the Parent

147,420

119,501

Non-controlling interests

14,630(31)

Total comprehensive income for the period

162,051

119,470

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:- 15 -

Three months ended 31 May 2020
(Millions of yen)Three months ended
31 May 2019

Three months ended
31 May 2020

49,062(11,969)

Financial assets measured at fair value throughother comprehensive income

(169)

(13)

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

(169)

(13)

(18,760)(13,631)

Cash flow hedges

(13)

1,608

Share of other comprehensive income of associates

(17)

(29)

Total items that may be reclassified subsequently to
profit or loss

(18,792)(12,052)

Other comprehensive loss, net of income tax(18,961)(12,066)

Total comprehensive income/(loss) for the period

30,101(24,035)

Owners of the Parent

26,499(20,651)

Non-controlling interests

3,601(3,383)

Total comprehensive income/(loss) for the period

30,101(24,035)

Profit/(loss) for the period
Other comprehensive income, 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

Attributable to:- 16 -

(3) Interim Condensed Consolidated Statement of Changes in Equity
For the nine months ended 31 May 2019
(Millions of yen)
Other components of equity

Note

As at 1 September 2018

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

34,669862,936

39,841

902,777

Equityattributable
Nonto owners controllingof theinterest
ParentCapitalstock

CapitalsurplusRetainedearnings

10,273

18,275815,146(15,429)--

158,668

-

-

-

-

-

-

158,668

15,325

173,993

-

-

-

-

(393)

(12,535)

1,681

(0)

(11,247)(11,247)(694)(11,942)--

158,668-(393)(12,535)

1,681

(0)

(11,247)

147,420

14,630162,051

37

15,42919,202-Total
equityNet changes during the period
Comprehensive income
Profit for the period
Other comprehensive income(loss)
Total comprehensive income (loss)
Transactions with the owners of
the Parent
Acquisition of treasury stock

-

-

-

(2)

-

-

-

-

-

(2)

-

(2)

Disposal of treasury stock

-

1,322

-

137

-

-

-

-

-

1,459

-

1,459

-

-

(48,976)

-

-

-

-

-

-

(48,976)(8,461)(57,438)

-

933

-

-

-

-

-

-

-

933

-

933

-

-

-

-

-

-

-

-

-

-

239

239

-

-

-

-

-

-

-

-

-

-

169

169

-

2,255

(48,976)

134

-

-

-

-

-

(46,586)(8,052)(54,638)-

2,255

109,691

134

(393)

(12,535)

1,681

(0)

(11,247)

100,834

6,578

107,413

10,273

20,531

924,837(15,294)

(355)

2,894

20,883(0)23,421

963,770

46,4191,010,190

Dividends
Share-based payments
Incorporation of a new
subsidiary

10

Changes in ownershipinterests in subsidiaries
without losing control
Total transactions with theowners of the Parent
Total net changes during the period
As at 31 May 2019- 17 -

For the nine months ended 31 May 2020
(Millions of yen)
Other components of equity
FinancialassetsTreasury
Foreign
Share of othermeasured
Cash flow
stock, atcurrency
comprehensive
at fair value
hedge
cost
translation
income ofthrough otherreserve
reserveassociatescomprehensive
incomeTotal

Equityattributable
Nonto owners controllingof theinterest
ParentCapitalstock

CapitalsurplusRetainedearnings

10,273

20,603928,748(15,271)(697)(13,929)

8,906

(11)

(5,732)

938,62144,913

983,534--(34,252)

-

-

-

-

-

-

(34,252)(1,361)(35,614)

10,273

20,603

894,495(15,271)(697)(13,929)

8,906

(11)

(5,732)

904,368

43,551

947,920--

90,640

-

-

-

-

-

-

90,640835

91,475

-

-

-

-

(244)

1,911

27,204(10)

28,86028,860(866)

27,994--90,640

-

(244)

1,911

27,204(10)

28,860

119,501(31)

119,470

Acquisition of treasury stock

-

-

-

(5)

-

-

-

-

-

(5)

-

(5)

Disposal of treasury stock

-

1,261

-

121

-

-

-

-

-

1,382

-

1,382

-

-

(48,994)

-

-

-

-

-

-

(48,994)(1,565)(50,560)

-

1,424

-

-

-

-

-

-

-

1,424

-

1,424

-

-

-

-

-

-

(9,060)-(9,060)(9,060)(974)(10,035)-

2,685(48,994)

116

-

-

(9,060)-(9,060)(55,253)(2,540)(57,793)

Notes

As at 1 September 2019
Effect of change in accounting
policy3

Net changes during the period

Total
equityComprehensive income
Profit for the period
Other comprehensive
income / (loss)
Total comprehensive income /(loss)
Transactions with the owners of
the Parent

Dividends
Share-based payments
Transfer to non-financial
assetsTotal transactions with theowners of the Parent
Total net changes during the period
As at 31 May 2020

10

-

2,685

41,645

116

(244)

1,911

18,143(10)

19,80064,248(2,572)

61,676

10,27323,288936,141(15,155)(942)(12,018)

27,050(21)

14,068968,616

40,9791,009,596- 18 -

(4) Interim Condensed Consolidated Statement of Cash Flows(Millions of yen)
Notes

Nine months ended
31 May 2019

Nine months ended
31 May 2020

Cash flows from operating activities
Profit before income taxes
Depreciation and amortization

247,21136,629142,420
131,157

2,050(8,792)

15,296(8,286)

Interest expenses
Foreign exchange losses/(gains)

3,512
5,755

5,901
(7,651)

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

(480)

(453)

Losses on disposal of property, plant and equipment
Increase in trade and other receivables

253(30,122)712(14,999)

Decrease in inventories
Decrease in trade and other payables

144,649(72,600)

31,327(39,409)

Decrease in other assets
Decrease in other liabilities

5,731(6,727)

4,090(36,243)

Others, net

6,569

5,629

Cash generated from operations

333,641

229,492

Interest and dividends income received
Interest paid

7,266
(2,687)

7,866(4,776)

Income taxes paid
Income taxes refunded(52,004)-(60,287)827

Net cash generated by operating activities

286,216

173,122Amounts deposited into bank deposits with original maturitiesof three months or longer(95,593)(67,776)

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

73,42753,079Payments for property, plant and equipment
Payments for intangible assets(31,846)(18,124)(35,974)(16,504)

Payments for acquisition of right-of-use assets
Payments for lease and guarantee deposits(5,835)(1,366)(4,723)

Proceeds from collection of lease and guarantee deposits

3,081
1,315

4,882
(1,715)(73,575)(70,097)

Impairment losses
Interest and dividend income

8

Cash flows from investing activities

Others, net
Net cash used in investing activities- 19 -

(Millions of yen)
Notes

Nine months ended
31 May 2019

Nine months ended
31 May 2020

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

13,299(11,575)

10,319(931)

Repayment of long-term loans payable
Repayment of redemption of bonds(2,237)(30,000)(4,343)-(48,949)420(48,965)-(8,461)(7,464)(2,328)-214(103,358)
116(94,753)(149,492)(12,499)

5,681

105,387(40,785)

999,697

1,086,519

1,105,085

1,045,734

9

Dividends paid to owners of the Parent
Capital contributions from non-controlling interests

10

Dividends paid to non-controlling interests
Repayments of finance lease obligations
Repayments of lease liabilities
Others, net
Net cash used in financing activities
Effect of exchange rate changes on the balance of cash held in
foreign currencies
Net increase/(decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning of period
Cash and cash equivalents at the end of period- 20 -

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).
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 2019.
The interim condensed consolidated financial statements were approved on 10 July 2020 by Tadashi Yanai, Chairman, President
and CEO and Takeshi Okazaki, Group Executive Vice President and CFO.

- 21 -

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 2019 are applied consistently in the preparation of these interim condensed consolidated
financial statements.
The Group adopted the following new and revised standards and interpretations beginning with the preparation of theinterim condensed consolidated financial statements. (1) Application of IFRS 16: Leases 5) Covid-19-Related Rent Concessions has
been applied from the third quarter of the current fiscal year.
IFRS

Title

Summary of new standards and amendments

IFRS 16

LeasesAmendments to accounting treatment for lease arrangement

IFRIC 23

Uncertainty over Income Tax
Treatments

Clarifies the accounting for uncertainties in income tax(1) Application of IFRS 16: Leases
The Group began applying IFRS 16 Leases (announced in January 2016; hereinafter “IFRS 16”), from the first quarter of thecurrent fiscal year. In applying IFRS 16, the Group has adopted the cumulative catch-up approach that recognizes the cumulative
effect of initial application of the standard as at the date of initial application (1 September 2019) as a transition method, without
restating comparative information.
1) Definition of lease
The application of IFRS 16 requires that a judgment be made at the inception of a contract as to whether a contract is, or contains,
a lease. If a contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration,
the contract is, or contains, a lease.
To determine whether or not a contract conveys the right to control the use of an identified asset, the Group examines whether thecontract includes the use of the specified asset, whether the Group has the right to obtain substantially all of the economic
benefits from use of identified asset throughout the period of use, and whether the Group has the right to direct the use of theidentified asset.
2) Accounting treatment of leases
2.1) Leases in which Fast Retailing Group is the lessee
Separate from short-term leases or leases for which the underlying asset is of low value, the Group accounts for each lease
component within the contract as a lease and recognizes a right-of-use asset and a lease liability. On the date of commencementof a lease, the right-of-use asset is measured at cost, and the lease liability is calculated as the present value of lease payments
outstanding.
The cost of the right-of-use asset is mainly composed of the initial measurement of the lease liability, initial direct costs and theamount of any prepaid lease payments. Furthermore, the discount rate used to calculate the present value of lease payments is theinterest rate implicit in the lease. If that rate cannot be readily determined, the lessee’s incremental borrowing rate is used.
The lease term is determined as the non-cancelable period which includes an option to extend the lease (if it is reasonably certainthat the Group will exercise that option), or an option to cancel the lease (if it is reasonably certain that the Group will not
exercise that option).
After the commencement date, the right-of-use asset is measured at cost less any accumulated depreciation and any accumulated
impairment losses. When depreciating right-of-use assets, the Group applies the depreciation requirements in IAS 16 Property,
Plant and Equipment. In addition, the Group applies IAS 36, Impairment of Assets, to determine whether the right-of-use asset isimpaired and to account for any impairment loss identified.
Depreciation of right-of-use asset is measured from the commencement date to the end of the useful life of the underlying asset if
ownership of the underlying asset is to be transferred to the Group by the end of the lease term, or if it is reasonably certain thatthe lessee purchase options will be exercised; otherwise the straight-line method will be used to calculate depreciation from thecommencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term.
After the commencement date, the carrying amount of the lease liability is increased to reflect the interest rates on the leaseliability and reduced to reflect any lease payments made. Furthermore, any reassessment or lease modifications, or to reflectrevised in-substance fixed lease payments is remeasured.
The Group uses the straight-line basis to recognize any lease payments associated with short-term leases or leases for which anunderlying asset is of low value.
2.2) Leases in which the Group is the lessor- 22 -

The Group classifies a lease as either a finance lease or an operating lease at the inception of the lease contract.
To classify each lease, the Group comprehensively assesses whether all the risks and rewards incidental to ownership of theunderlying asset will be substantially transferred or not. If the risks and rewards value are to be transferred, the lease is classified
as a finance lease; if not, it is classified as an operating lease.
If the Group is acting as an intermediate lessor, the Group accounts for head leases and subleases separately. A subleaseclassification is determined by reference to the right-of-use asset arising from the head lease, rather than by reference to theunderlying asset.
The Group recognizes lease payments from operating leases as lease income on a straight-line basis over the lease term.
Lease payments from finance leases are recognized at the commencement date as assets held under finance leases and presented
as receivables at an amount equal to the net investment in the lease.
3) Treatment on transition
In applying IFRS 16, the Group applies the practical expedient in place of the judgments previously used to determine whether or
not a contract is a lease. Consequently, the requirements in IFRS 16 is applied only to contracts entered into or changed on orafter 1 September 2019.
3.1) Leases in which the Group is the lessee(Leases previously classified as operating leases applying IAS 17)
Lease liabilities on transition are measured at the present value of the remaining lease payments discounted using the lessee’s
incremental borrowing rate as at 1 September 2019. In addition, right-of-use assets on transition are measured using one of thefollowing methods.
• Its carrying amount calculated on the assumption that IFRS 16 was applied from the commencement of the lease. Note thatthe discount rate used is the lessee’s incremental borrowing rate on the date of initial application of IFRS 16.
• The amount measured for the lease liability, is adjusted by the amount of any prepaid or accrued lease payments.
Note that the followings apply when IFRS 16 is applied to leases that were previously classified as operating leases IAS 17.
• A single discount rate is applied to a portfolio of leases with reasonably similar characteristics.
• Leases for which the lease term ends within 12 months of the date of initial application of IFRS 16 are accounted for in thesame way as short-term leases.
• Initial direct costs are excluded from the measurement of right-of-use assets at the date of initial application of IFRS 16.
• The Group uses hindsight, such as in determining the lease term if the contract contains options to extend or terminate thelease.
(Leases previously classified as finance leases applying IAS 17)
The Group accounts for the carrying amount of the right-of-use asset and the lease liability at the date of initial application at theamount of the lease asset and lease liability applying IAS 17 immediately prior to the date of initial application of IFRS 16.
3.2) Leases in which the Group is the lessor
Leases in which the Group acts as lessor require no adjustment on transition to IFRS 16, except for subleases. Subleases will be
accounted for in accordance with the transition provisions under IFRS 16 as stated below.
• In applying IFRS 16, the Group classifies sublease transactions as at the date of initial application as either operating leases orfinance leases. This classification is determined based on the remaining contractual terms and conditions of the head lease andsublease at that date.
• Any subleases classified as operating leases applying IAS 17 but finance leases applying IFRS 16 are accounted for as
new finance leases entered into at the date of initial application.
4) Impact on interim condensed consolidated financial statements
With the application of IFRS 16, the Group recognized an additional 369,995 million yen in right-of-use assets, 421,943 million
yen in lease liabilities and a decrease of 34,252 million yen in retained earnings in its interim condensed consolidated statementof financial position at the start of the fiscal year.
The weighted average of the lessee’s incremental borrowing rate applied to lease liabilities recognized in interim condensed
consolidated statement of financial position as at the date of initial application of IFRS 16 is 0.9%.
The major factors for the difference in the commitment amount related to operating leases applying IAS 17 disclosed in interim
condensed consolidated statement of financial position as at 31 August 2019 and the lease liabilities recognized in interim
condensed consolidated statement of financial position as at the date of initial application of IFRS 16 are as follows.

- 23 -

(Millions of yen)
Minimum future lease payments for non-cancelable operating lease contracts (31 August 2019)344,888

Present value of non-cancelable operating lease contracts (31 August 2019)

337,009

Finance lease obligations (31 August 2019)

38,726

Extension or termination options that are reasonably certain to be exercised

46,207

Lease liabilities recognized in interim condensed consolidated statement of financial position as at
the date of initial application of IFRS 16

421,943

5) Covid-19-Related Rent Concessions
In accordance with the amendment to IFRS 16 published in May 2020, a rent concession arising as a direct result of the Covid-19
pandemic and which also meets all of the following conditions will not be considered as a change to the terms of the lease andaccounted for variable lease payments.
• The revised lease consideration resulting from a change in the lease fee is approximately equal to or less than the leaseconsideration immediately prior to the change.
• The lease-fee reduction only affects payments that are due prior to June 30, 2021.
• There are no material changes to the other terms and conditions of the lease.
Any amount of gain or loss recognized as being due to the concession not being treated as a change to the terms of the lease will
not have a significant impact on the Group's interim condensed consolidated financial statements.
(2) Application of IFRIC 23: Uncertainty over income tax treatments
IFRIC 23 interpretations are additional to the requirement of IAS 12 Income Taxes and establish accounting procedures for
uncertain tax positions, such as items with no clear tax treatment or items related to matters that are not yet resolved with the tax
authorities. If it is determined that the tax treatment used by the Group is not likely to be approved by the tax authorities, theGroup’s calculation of taxable income will recognize additional taxable income in an amount equivalent to the impact of that
uncertainty, using either the most likely amount or expected value.
The application of IFRIC 23 does not have a significant impact on the Group’s interim condensed consolidated financial
statements.

- 24 -

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 to due to temporarily closing stores, etc.
Regarding impairment to our non-financial assets, although we assume that business activities will gradually return to normal from
June 2020 onward, 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 the level of impact that differ region to region and case-by-case basis into consideration.
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 except the impact of the above and applying
IFRS16.

- 25 -

5. Segment Information(i) Description of reportable segments
The Group’s reportable segments are components for which discrete financial information is available and which are reviewed
regularly by the Board of Directors (the “Board”) to make decisions about the allocation of resources and to assess performance.
The Group’s main retail clothing business is divided into four reportable operating segments: UNIQLO Japan, UNIQLOInternational, GU and Global Brands, each of which is used to frame and form the Group’s strategy.
The main businesses covered by each reportable segment are as follows:
UNIQLO Japan: UNIQLO clothing business within Japan
UNIQLO International: UNIQLO clothing business outside of Japan
GU: GU clothing business in Japan and overseas
Global Brands: Theory, PLST, COMPTOIR DES COTONNIERS, PRINCESSE TAM.TAM and J Brand clothing operations(ii) Segment revenue and results
For the nine months ended 31 May 2019
(Millions of yen)

Others(Note 1)

Adjustments(Note 2)

Interim
Condensed
Consolidated
Statement ofProfit or Loss

Reportable segments
Total

UNIQLOJapan

UNIQLOInternational

GU

GlobalBrands

Revenue

701,072

820,506

185,358

113,686

1,820,623

2,253

-

1,822,877

Operating profit/(loss)

96,705

124,842

26,3184,619

252,485249(5,046)247,688

95,923

125,119

26,192

4,529

251,765

250(4,803)

247,211

423

1,043

206

134

1,807

-

243

2,050

Segment income/(loss)(i.e., Profit/(loss) before
income taxes)
Other disclosure:
Impairment loss (Note 3)(Note 1) “Others” includes the real estate leasing business, etc.
(Note 2) “Adjustments” mainly includes revenue and corporate expenses which are not allocated to individual reportable segments.
(Note 3) For details on impairment losses, please refer to Note “8. Impairment Losses. ”
For the nine months ended 31 May 2020
(Millions of yen)

Others(Note 1)

Adjustments(Note 2)

Interim
Condensed
Consolidated
Statement ofProfit or Loss

1,543,208

1,715

-

1,544,924(6,002)

145,458401(13,476)

132,383

20,340(6,361)

147,833

402(5,814)142,420436

755

15,296--

15,296

Reportable segments
UNIQLOJapan

UNIQLOInternational

GlobalBrandsGU

Revenue

598,843

673,532

187,488

83,344

Operating profit/(loss)

79,16051,815

20,48680,732

53,121

2,776

11,328

Total

Segment income/(loss)(i.e., Profit/(loss) before
income taxes)
Other disclosure:
Impairment loss (Note 3)(Note 1) “Others” includes the real estate leasing business, etc.
(Note 2) “Adjustments” mainly includes revenue and corporate expenses which are not allocated to individual reportable segments.
(Note 3) For details on impairment losses, please refer to Note “8. Impairment Losses. ”- 26 -

For the three months ended 31 May 2019
(Millions of yen)

Others(Note 1)

Adjustments(Note 2)

Interim
Condensed
Consolidated
Statement ofProfit or Loss

Reportable segments
UNIQLOJapan

UNIQLOInternational

GlobalBrands

Revenue

209,728

240,500

68,16335,941

554,333

847-

555,180

Operating profit/(loss)

28,96336,356

12,195

1,494

79,010139(4,402)74,74728,03937,734

12,154

1,458

79,387139(6,528)72,997

179

(65)

95

85

295

-

243

538

GU

Total

Segment income/(loss)(i.e., Profit/(loss) before
income taxes)
Other disclosure:
Impairment loss (Note 3)(Note 1) “Others” includes the real estate leasing business, etc.
(Note 2) “Adjustments” mainly includes revenue and corporate expenses which are not allocated to individual reportable segments.
(Note 3) For details on impairment losses, please refer to Note “8. Impairment Losses. ”
For the three months ended 31 May 2020
(Millions of yen)

Others(Note 1)

Adjustments(Note 2)

Interim
Condensed
Consolidated
Statement ofProfit or Loss

335,997413-

336,411(6,744)

4,000

122

(8,475)(4,352)

4,629(6,878)

3,975

122

(12,536)(8,438)

335

386

9,852

-

-

9,852

Reportable segments

Revenue
Operating profit/(loss)

UNIQLOJapan

UNIQLOInternational

GlobalBrands135,274

132,284

55,195

13,243

7,533(1,452)

4,663

7,262

(1,037)

2,179

6,950

GU

Total

Segment income/(loss)(i.e., Profit/(loss) before
income taxes)
Other disclosure:
Impairment loss (Note 3)(Note 1) “Others” includes the real estate leasing business, etc.
(Note 2) “Adjustments” mainly includes revenue and corporate expenses which are not allocated to individual reportable segments.
(Note 3) For details on impairment losses, please refer to Note “8. Impairment Losses. ”
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- 27 -

Nine months ended
31 May 2019

Nine months ended
31 May 2020

5,046

5,883

7. Property, Plant and Equipment
The breakdown of carrying amount of property, plant and equipment at each reporting date is as follows:(Millions of yen)
As at
31 August 2019As at
31 May 2020

Buildings and structures

94,659100,693

Furniture, equipment and vehicles

17,076

16,069

Land

1,927

1,927

Construction in progress

10,404

14,059Lease assets (Note)

38,024-

162,092

132,750

Total(Note) With the application of IFRS 16 as at the first quarter of the current fiscal year, leased assets have been reclassified and arepresented under “right-of-use assets”.

8. Impairment Losses
The Group’s impairment losses during the nine months ended 31 May 2020 amounted to 15,296 million yen, compared with
2,050 million yen during the nine months ended 31 May 2019, and are included in “other expenses” on the Interim condensed
consolidated statement of profit or loss.
The breakdown of impairment losses is as follows:
For the nine months ended 31 May 2019
Impairment losses are mainly due to a reduction in profitability of store assets, and no material impairment losses are recognized.
For the nine months ended 31 May 2020
The breakdown of impairment losses by asset type is as follows:(Millions of yen)
Nine months ended
31 May 2020
Buildings and structures

3,053

Furniture and equipment

507

Subtotal on property, plant and equipment

3,561

Software0
Subtotal on intangible assets

0

Right-of -use assets

11,732Other non-current assets (long-term prepayments)

2

Total impairment losses

15,296(1) Property, plant and equipment and right-of-use assets
Impairment losses amounting to 15,296 million yen represented write downs of the carrying amounts of store assets to therecoverable amounts, primarily due to a reduction in profitability of certain stores, including flagship stores. With the global
spread of Covid-19, the Group's performance has been adversely affected to due to temporarily closing stores, etc. We measured
impairment losses on the assumption that the impact of the Covid-19 pandemic will continue to be felt through to the end of
August 2021.
The grouping of assets is based on the smallest cash-generating unit ("CGU") that independently generates cash inflow. In
principle, each store, including flagship stores, is considered as an individual CGU and recoverable amounts thereon are calculated
based on value in use.
- 28 -

The value in use is calculated based on the cash flow projections with estimates and growth rates compiled by management at a
discount rate of 6.3%. Theoretically, the projected cash flows cover a five-year period, and do not use a growth rate that exceeds
the long-term average market growth rate. The pre-tax discount rate calculation is based on the weighted-average cost of capital.
The main CGUs for which impairment losses were recorded are as follows:
Operating segment

CGU

Type

UNIQLO Japan

UNIQLO CO., LTD. stores

Buildings, structures and right-of-use
assetsUNIQLO USA、FRL Korea Co., Ltd.

Buildings, structures and right-of-use

UNIQLO International
GU
Global Brands

etc., stores
FRL Korea Co., Ltd. etc., stores
Theory LLC., etc stores

assetsBuildings, structures and right-of-use
assetsBuildings, structures and right-of-use
assets

9. Corporate Bonds
The 1st non-collateralized corporate bonds of 30 billion yen (interest rate: 0.110%, date of maturity: 18 December 2018) was
repaid during the 9 months ended 31 May 2019.

- 29 -

10. Dividends
The total amount of dividends paid was as follows:
For the nine months ended 31 May 2019
Total dividends(Millions of yen)

Resolution

Dividends per share(Yen)

Meeting of the Board on 2 November 2018

24,484240

Meeting of the Board on 11 April 201924,492

240

Dividends were declared on 2 November 2018 and paid on 9 November 2018. The effective date of the dividend was forshareholders as at 31 August 2018.
Dividends were declared on 11 April 2019 and paid on 13 May 2019. The effective date of the dividend was for shareholders as at
28 February 2019.
For the nine months ended 31 May 2020
Total dividends(Millions of yen)

Resolution

Dividends per share(Yen)

Meeting of the Board on 5 November 201924,494240

Meeting of the Board on 9 April 2020

24,499240

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.
Dividends were declared on 9 April 2020 and paid on 11 May 2020. The effective date of the dividend was for shareholders as at
29 February 2020.

- 30 -

11. 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.
Nine months ended 31 May 2019
Revenue(Millions of yen)

Percent of Total
(%)

Japan

701,072

38.5

Greater China

402,594

22.1

Other parts of Asia & Oceania

248,258

13.6

North America & Europe

169,653

9.3

UNIQLO segment (Note 1)

1,521,578

83.5

GU segment (Note 2)

185,358

10.2

Global Brands segment (Note 3)

113,686

6.2

2,253

0.1

1,822,877

100.0

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

Mainland China, Hong Kong, Taiwan
South Korea, Singapore, Malaysia, Thailand, the Philippines,

North America & Europe:

Indonesia, Australia
United States of America, Canada, United Kingdom, France, Russia,(Note 2) Main national and regional market:

Germany, Belgium, Spain, Sweden, the Netherlands, Denmark
Japan(Note 3) Main national and regional markets:
North America, Europe, Japan(Note 4) The “Others” category includes real estate leasing operations.

- 31 -

Nine months ended 31 May 2020
Revenue(Millions of yen)

Percent of Total
(%)

Japan

598,843

38.8

Greater China

362,657

23.5

Other parts of Asia & Oceania

160,128

10.4

North America & Europe

150,746

9.8

UNIQLO segment (Note 1)

1,272,375

82.4

GU segment (Note 2)

187,488

12.1

Global Brands segment (Note 3)

83,344

5.4

Others (Note 4)

1,715

0.1

1,544,924

100.0

Total
(Note 1) Revenue is classified by nation or region based on customer location.
The designated countries and regions are classified as follows:
Greater China:
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.
12. 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 2019

Nine months ended
31 May 2020

Advertising and promotion

58,21853,069Rental expenses (Note)

153,31243,009Depreciation and amortization (Note)

36,629131,157

Outsourcing

32,86736,785

Salaries

221,237

207,768

Others139,831

136,238

642,096

608,029

Selling, general and administrative expenses

Total(Note) The decrease of rental expenses and the increase of depreciation and amortization are due to the application of IFRS 16 as
mentioned in “Notes to the Interim Condensed Consolidated Financial Statements 3. Significant Accounting Policies”.

- 32 -

13. 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 2019

Nine months ended
31 May 2020

-

1,841

3,469

5,256

3,469

7,098

Other income
Foreign exchange gains (Note)
Others
Total(Millions of yen)
Nine months ended
31 May 2019

Nine months ended
31 May 2020

Other expenses
Foreign exchange losses (Note)

2,869

-

253

712

Impairment losses

2,050

15,296

Others

1,669

2,416

6,842

18,425

Loss on retirement of property, plant and equipment

Total(Note) Currency adjustments incurred in the course of operating transactions are included in “other income” and "other expenses".
14. 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 2019

Nine months ended
31 May 2020

-

7,651

8,740

8,271

51

14

8,792

15,938Finance income
Foreign exchange gains (Note)
Interest income
Others
Total(Millions of yen)
Nine months ended
31 May 2019

Nine months ended
31 May 2020

Finance costs
Foreign exchange losses (Note)

5,755

-

Interest expenses

3,512

5,901

9,268

5,901

Total

(Note) Currency adjustments incurred in the course of non-operating transactions are included in “finance income" and "financecosts".

- 33 -

15. Earnings Per Share
Nine months ended 31 May 2019

Nine months ended 31 May 2020

Equity per share attributable to ownersof the Parent (Yen)

9,443.57

Equity per share attributable to ownersof the Parent (Yen)

Basic earnings per share (Yen)

1,554.94

Basic earnings per share (Yen)887.96

Diluted earnings per share (Yen)

1,552.35

Diluted earnings per share (Yen)886.42

9,487.54(Note) The basis for calculation of basic earnings per share and diluted earnings per share is as follows:
Nine months ended
31 May 2019

Nine months ended
31 May 2020

158,668

90,640--158,668

90,640102,041,403

102,076,743---

Increase in number of common stock (Shares)

170,248

178,269

Number of share subscription rights included in increase(170,248)(178,269)

Basic earnings per share for the period
Profit for the period attributable to owners of the Parent (Millions of yen)
Profit not attributable to common shareholders (Millions of yen)
Profit attributable to common shareholders (Millions of yen)
Average number of common stock outstanding during the period (Shares)
Diluted earnings per share for the period
Adjustment to profit (Millions of yen)Three months ended 31 May 2019

Three months ended 31 May 2020

Basic earnings per share (Yen)

437.41

Basic loss per share (Yen)(96.18)

Diluted earnings per share (Yen)

436.69Diluted loss per share (Yen)(96.18)(Note) The basis for calculation of basic earnings (loss) per share and diluted earnings per share is as follows:
Three months ended
31 May 2019

Three months ended
31 May 2020

44,639(9,818)--44,639(9,818)102,053,519

102,088,765--

Increase in number of common stock (Shares)

167,118-

Number of share subscription rights included in increase(167,118)(-)

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

(Note) In the third quarter of the current fiscal year, no adjustment has been made to the basic earnings per share for the period in
respect of a dilution as the impact of the outstanding stock options had an anti-dilutive effect on the basic loss per shareamounts presented.

- 34 -

16. Fair Value of Financial Instruments
Information about the carrying amount and fair value of financial instruments is as follows:(Millions of yen)
As at 31 August 2019
Carrying amounts

As at 31 May 2020

Fair value

Carrying amounts

Fair value

Financial assets:
Security deposits and guarantees

62,39863,98262,38063,341

Total

62,39863,98262,38063,341Long-term borrowings (Note)

4,258

4,258

-

-

469,183

478,638

469,302472,244473,442482,896469,302472,244

Financial liabilities:

Corporate bonds (Note)
Total(Note) The amount above include the outstanding balance of borrowings and corporate bonds due within one year.
The fair values of current financial assets, current financial liabilities and non-current financial assets, which are measured byamortized cost, approximate their carrying amounts.
The fair value of security deposits and guarantees is calculated on the basis of the current value, applying the current market
interest rate.
The fair value of corporate bonds is calculated with reference to publicly available market prices.
The fair value of long-term borrowings is classified by term, and are calculated on the basis of the present-value, applying a
discount rate that takes into account the time remaining to maturity, and credit risk.
The fair value measurements of security deposits and guarantees, corporate bonds and long-term borrowings are classified as
Level 2.

- 35 -

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 2019

Level 1

Financial assets measured at fair value
through other comprehensive income
Financial assets measured at fair value

Level 3

Total

1,471

－

173

1,645

－

－

－

－

－

17,406－

17,406

1,471

17,406173

19,051through profit or loss
Financial assets and financial liabilities designatedas hedging instruments — Fair value
Total

Level 2

(Millions of yen)
As at 31 May 2020

Level 1

Financial assets measured at fair value
through other comprehensive income
Financial assets measured at fair value

Level 3

Total

1,189

－

171

1,360

－

4,771

－

4,771

－

39,691－

39,691

1,189

44,463

171

45,823through profit or loss
Financial assets and financial liabilities designatedas hedging instruments — Fair value
Total

Level 2For the valuation of Level 2 derivative financial instruments for which a market value is available, we use a valuation model thatuses observable data on the measurement date using inputs such as interest rates, yield curves, currency rates and volatility incomparable instruments.
Financial instruments classified as Level 3 consist mainly of unlisted shares. The fair values of unlisted shares are measured by thedivision responsible in the Group according to the Group’s accounting policy, etc., using the immediately preceding figuresavailable for each quarter.
There were no significant changes due to the purchase, sale, issuance and settlement of Level 3 financial instruments, and notransfers between Levels 1, 2 and 3.

17. Commitments for Expenditures
The Group had the following commitments at each reporting date:(Millions of yen)
As at
31 August 2019As at
31 May 2020

Commitment for the acquisition of property, plant and equipment

7,382

24,786

Commitment for the acquisition of intangible assets

4,340

2,163

11,723

26,949Total- 36 -

18. Subsequent Events
Not applicable.

2. Others
Dividends
The Company resolved to pay dividends from retained earnings at the meeting of the Board convened on 9 April 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 10. Dividends.”- 37 -

(TRANSLATION)
INDEPENDENT ACCOUNTANT’S REVIEW REPORT
10 July 2020
To the Board of Directors of FAST RETAILING CO., LTD.
Deloitte Touche Tohmatsu LLC
Designated Unlimited Liability Partner,
Engagement Partner,
Certified Public Accountant
Koichi Okubo
Designated Unlimited Liability Partner,
Engagement Partner,
Certified Public Accountant
Hirofumi Otani
Designated Unlimited Liability Partner,
Engagement Partner,
Certified Public Accountant
Yohei Masuda
Pursuant to the first paragraph of Article 193-2 of the Financial Instruments and Exchange Act, we have reviewed the interim
condensed consolidated financial statements included in the Financial Section, namely, the interim condensed consolidated statementof financial position of FAST RETAILING CO. , LTD. (the “Company”) and its consolidated subsidiaries (collectively, the “Group”)
as of 31 May 2020 and the related interim condensed consolidated statements of profit or loss and statement of comprehensive income
for the three-month and nine-month periods then ended, statement of changes in equity and cash flows for the nine-month period thenended, and the related notes.
Management’s Responsibility for the Interim Condensed Consolidated Financial Statements
Management is responsible for the preparation and fair presentation of these interim condensed consolidated financial statements inconformity with International Accounting Standard 34 “Interim Financial Reporting” (“IAS 34”), pursuant to Article 93 of the “Rules
Governing Term, Form and Preparation of Consolidated Quarterly Financial Statements”, and for 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.
Accountant’s Responsibility
Our responsibility is to express a conclusion on these interim condensed consolidated financial statements based on our review. We
conducted our review in accordance with quarterly review standards generally accepted in Japan. A review consists principally of
making inquiries, primarily of management and persons responsible for financial and accounting matters, and applying analyticalprocedures and other quarterly review procedures. A review is substantially less in scope than an audit conducted in accordance withauditing standards generally accepted in Japan. We believe that we have obtained the evidence to provide a basis for our conclusion.
Accountant’s Conclusion
Based on our review, nothing has come to our attention that causes us to believe that the interim condensed consolidated financial
statements referred to above do not present fairly, in all material respects, the condensed consolidated financial position of theCompany and its consolidated subsidiaries as of 31 May 2020, and the condensed consolidated results of their operations for the threemonth and nine-month periods then ended, and their cash flows for the nine-month period then ended in conformity with IAS 34.
Interest
Our firm and the engagement partners do not have any interest in the Company for which disclosure is required under the provisionsof the Certified Public Accountants Act.
The above represents a translation, for convenience only, of the original report issued in the Japanese language.

- 38 -