Fast Retailing : Results for FY2019 and Estimates for FY2020 (620KB)

October 10, 2019

Fast Retailing Results for

FY2019 and Estimates for

FY2020

Takeshi Okazaki

Fast Retailing Co., Ltd.

Group Executive Vice President & CFO

1

Contents

Ｉ．Results for FY2019	P3	～P19
ＩＩ．Estimates for FY2020	P20	～	P23
ＩＩＩ．Reference	P24	～	P26

Disclosure of Corporate Performance

• Following the Group's adoption of International Financial Reporting Standards (IFRS) from the year ending August 31, 2014, all data in this document are calculated using IFRS standards.
• Business profit = Revenue - (Cost of sales + SG&A expenses)
• Group Operations:

UNIQLO Japan:	All UNIQLO operations within Japan
UNIQLO International:	All UNIQLO operations outside of Japan
GU:	All GU operations inside and outside Japan
Global Brands:	Theory, PLST, Comptoir des Cotonniers, Princesse tam.tam, J Brand

• Consolidated results also include Fast Retailing Co., Ltd. performance and consolidated adjustments.

A Note on Business Forecasts
When compiling business estimates, plans and target figures in this document, the figures that
are not historical facts are forward looking statements based on management's judgment in
light of currently available information. These business forecasts, plans and target figures may
vary materially from the actual business results depending on the economic environment, our
response to market demand and price competition, and changes in exchange rates.	2

Group: FY2019 (Sep. 2018 - Aug. 2019)

Achieves a record performance

Operating profit rises 9.1% y/y

Billions of Yen

		Yr to Aug. 2018						Yr to Aug. 2019
		Actual		1H Actual			2H Actual			Full Year Actual			Latest est.
			y/y		y/y		y/y		（Jul.11）
	2,130.0	1,267.6		1,022.8		2,290.5		2,300.0
Revenue	+6.8%	+8.4%	+7.5%
(to revenue)		100.0%		100.0%			100.0%			100.0%			100.0%
Gross profit	1,049.9	606.7	+3.6%	512.7	+10.4%	1,119.5	+6.6%	-
(to revenue)		49.3%		47.9%	-1.4p		50.1%	＋0.9p		48.9%	-0.4p		-
SG&A	797.4	433.4	+7.4%	420.9	+6.9%	854.3	+7.1%	-
(to revenue)		37.4%		34.2%	＋0.2p		41.2%	-0.6p		37.3%	-0.1p		-
Business profit	252.4	173.3	-4.8%	91.8	+30.4%	265.1	+5.0%	265.0
(to revenue)		11.9%		13.7%	-1.6p		9.0%	＋1.5p		11.6%	-0.3p		11.5%
Other income, expenses	-16.2	-0.3	-	-7.1	-	-7.5	-	-5.0
(to revenue)		-		-	-		-	-		-	-		-
Operating profit	236.2	172.9	+1.4%	84.6	+28.9%	257.6	+9.1%	260.0
(to revenue)		11.1%		13.6%	-0.8p		8.3%	＋1.3p		11.2%	＋0.1p		11.3%
Finance income, costs	6.4	1.2	-	-6.4	-	-5.1	-	0.0
(to revenue)		0.3%		0.1%	-		-	-		-	-		-
Profit before income taxes	242.6	174.2	+5.5%	78.2	+1.0%	252.4	+4.0%	260.0
(to revenue)		11.4%		13.7%	-0.2p		7.6%	-0.6p		11.0%	-0.4p		11.3%
Profit attributable to	154.8	114.0		48.5		162.5		165.0
owners of the parent	+9.5%	-4.2%	+5.0%
(to revenue)	7.3%	9.0%	＋0.2p	4.7%	-0.7p	7.1%	-0.2p	7.2%

3

Group: FY2019 Operating Profit

	Revenue				Average forex impact approx. -2% (y/y)
	¥2.1300trln→ ¥2.2905trln		1H		2H	FY
			(+¥160.4bln)	USD	+0.2％	+1％	+0.6％
	UQ Japan	+¥8.1bln	RMB	-5％	-4％	-4％
	UQ Intl.	+¥129.7bln	EUR	-3％	-5％	-4％
	GU	+¥26.9bln	KRW	-1％	-5％	-3％
					Total	-4％	-2％	-2％
	Gross profit margin		SG&A ratio
	49.3％→48.9％（-0.4p）	37.4％→37.3％（-0.1p）	FY2019:-¥7.5bln
		1H	2H	FY	＝	1H	2H	FY	① Foreign exchange loss: ¥6.0bln
¥2.2905trln	Group	-1.4p	+0.9p	-0.4p	Group	+0.2p	-0.6p	-0.1p	(incl temporary advances paid
+7.5％	UQ Japan	-3.3p	+0.3p	-1.7p	UQ Japan	+1.0p	-0.6p	+0.4p	for purchases by UQ Japan
	overseas subsidiaries: ¥5.3bln)
	UQ Intl.	-0.5p	-0.9p	-0.6p	UQ Intl.	+0.2p	-2.3p	-0.9p	②Impairment loss: ¥3.4bln
	GU	+3.0p	+8.3p	+5.7p	GU	-0.5p	-0.5p	-0.5p	(on stores UQ, GU etc. ¥3.1bln)
									FY2018: - ¥16.2 billion
			¥1.1195trln	¥854.3bln			① Impairment loss: ¥12.3bln
			+6.6％	+7.1％			②Foreign exchange loss: ¥1.4bln
							¥265.1bln		¥257.6bln
							+5.0％	-¥7.5bln	+9.1％
					SG&A			Other
							income/expenses

FY2019		FY2019		FY2019	FY2019
Revenue		Gross profit		Business profit	Operating profit	4

Group: FY2019	Profit Attributable to
Owners of the Parent

・Decrease in value of foreign-currency denominated assets: ¥13.1bln September. 1, 2018 : 1USD=111JPY

August 31, 2019 : 1USD=106JPY ・Interest income & expenses: +¥7.8bln

¥257.6bln		¥252.4bln
+9.1％	-¥5.1bln		¥74.4bln
+4.0％
	Finance
	income,				¥178.0bln
	costs						¥162.5bln
				+5.1％	¥15.4bln
								+5.0％
			Income taxes
			Non-
						controlling
						interests

FY2019	FY2019	FY2019	FY2019
Operating	Profit before	Profit for the	Profit
profit	income tax	period	attributable
			to owners of
			the parent

5

FY2019 Breakdown by Group Operation

							Billions of Yen
Yr to Aug. 2018				Yr to Aug. 2019
Actual	1H Actual			2H Actual			Full Year Actual
y/y		y/y	y/y

Revenue

Business profit

864.7	491.3	-0.5%
120.1	67.6	-23.9%

381.6	+2.8%	872.9	+0.9%
35.5	+13.9%	103.2	-14.1%

UNIQLO Japan	(to revenue)	13.9%	13.8%	-4.2p	9.3%	+0.9p	11.8%	-2.1p
Other income, expenses	-1.0	0.1	-	-0.8	-	-0.7	-
	Operating profit	119.0	67.7	-23.7%	34.7	+14.6%	102.4	-13.9%
	(to revenue)	13.8%	13.8%	-4.2p	9.1%	+0.9p	11.7%	-2.1p
	Revenue	896.3	580.0	+14.3%	446.0	+14.7%	1,026.0	+14.5%
	Business profit	120.6	88.6	+9.6%	51.6	+29.8%	140.3	+16.3%
UNIQLO	(to revenue)	13.5%	15.3%	-0.6p	11.6%	+1.4p	13.7%	+0.2p
International	Other income, expenses	-1.7	-0.1	-	-1.2	-	-1.4	-
	Operating profit	118.8	88.4	+9.6%	50.4	+32.2%	138.9	+16.8%
	(to revenue)	13.3%	15.3%	-0.6p	11.3%	+1.5p	13.5%	+0.2p

Revenue

Business profit

211.8 117.1+10.7%

11.914.1+56.1%

121.5	+14.7%		238.7	+12.7%
14.0	+381.1%	28.1	+135.4%

GU	(to revenue)	5.6%	12.0%	+3.5p	11.6%	+8.8p	11.8%	+6.2p
Other income, expenses	-0.1	0.0	-95.5%	0.0	-	0.0	-
	Operating profit	11.7	14.1	+54.3%	14.0	+436.4%	28.1	+139.2%
	(to revenue)	5.6%	12.1%	+3.5p	11.6%	+9.1p	11.8%	+6.2p

Revenue

Business profit

154.4		77.7	-0.9%
6.2	3.2	-2.3%

72.1 -5.0%

0.7-75.7%

1. -2.9%

1. -36.6%

Global Brands	(to revenue)	4.1%	4.2%	-	1.0%	-2.9p	2.6%	-1.5p
Other income, expenses	-10.3	-0.1	-	-0.1	-	-0.2	-
	Operating profit	-4.1	3.1	-	0.5	-63.6%	3.6	-
	(to revenue)	-	4.0%	-	0.8%	-1.2p	2.5%	-

Note: All UNIQLO Japan data (except revenue) include inter-Group transactions.

6

UNIQLO Japan FY2019

FY2019 profit down, but 2H OP recovers

・FY operating profit result slightly lower than expected.

・Same-store sales +1.0% y/y. E-commerce sales continued strong.

・FY gross profit margin down 1.7p but improved in 2H on lower cost of sales. ・FY SG&A ratio up 0.4p but improved in 2H on efficient cost-cutting.

Billions of Yen

		Yr to Aug. 2018				Yr to Aug. 2019
		Actual	1H Actual			2H Actual			Full Year Actual
	y/y		y/y	y/y
Revenue	864.7		491.3	-0.5%	381.6	+2.8%	872.9	+0.9%
(to revenue)		100.0%		100.0%			100.0%			100.0%
Gross profit	418.5		224.1	-7.2%	183.2	+3.5%	407.4	-2.7%
(to revenue)		48.4%		45.6%	-3.3p		48.0%	+0.3p		46.7%	-1.7p
SG&A	298.4		156.5	+2.5%	147.7	+1.3%	304.2	+1.9%
(to revenue)		34.5%		31.9%	+1.0p		38.7%	-0.6p		34.9%	+0.4p
Business profit	120.1		67.6	-23.9%	35.5	+13.9%	103.2	-14.1%
(to revenue)		13.9%		13.8%	-4.2p		9.3%	+0.9p		11.8%	-2.1p
Other income, expenses	-1.0		0.1	-	-0.8	-	-0.7	-
(to revenue)		-		0.0%	-		-	-		-	-
Operating profit	119.0		67.7	-23.7%	34.7	+14.6%	102.4	-13.9%
(to revenue)	13.8%		13.8%	-4.2p	9.1%	+0.9p	11.7%	-2.1p

Note: All UNIQLO Japan data (except revenue) include inter-Group transactions.

7

UNIQLO Japan: FY2019 Revenue

Same-store sales: +1.0% y/y (1H: -0.9%, 2H: +3.5％) 2H revenue result slightly above plan

・Same-store sales down 0.9% y/y in 1H on warm winter. Picked up 3.5% in 2H.

・Strong 2H sales of Summer ranges (UT T-shirts,T-shirts,UV-cut mesh parkas, Kando pants, wide pants, etc.) resulted in slightly above-plan 2H revenue.

・E-commerce sales expanding favorably. FY2019 revenue ¥83.2bln (+32.0% y/y). Proportion of total sales rose from 7.3% to 9.5%.

Same-store sales

Yr to Aug. 2019

1H

Mar.

Apr.

May

Jun.

Jul.

Aug.

2H

Full year

Net sales

-0.9%

+4.5%

-1.7%

-1.8%

+27.3%

-10.0%

+9.9%

+3.5%

+1.0%

Customer visits

+0.4%

+10.1%

+0.7%

+1.3%

+25.6%

-5.8%

+13.5%

+6.6%

+3.3%

Customer spend

-1.3%

-5.1%

-2.4%

-3.1%

+1.4%

-4.5%

-3.2%

-2.9%

-2.2%

8

UNIQLO Japan: FY2019 Gross Profit Margin

FY2019 gross profit margin: 46.7% (-1.7p y/y)

2H +0.3p on improved cost of sales

・1H gross profit margin down 3.3p on stronger discounting due to warm winter. ・Internal yen rate started appreciating in 2H, resulting in lower cost of sales.

・However, further efforts to achieve appropriate inventory levels from the spring, and early inventory rundown of slow-selling items resulted in above-plan

2H discounting rates. 2H +0.3p rise in gross profit margin slightly below plan. ・End-August inventory healthy. Sharp y/y reduction in monetary terms as well.

	Yr to Aug. 2018	Yr to Aug. 2019
			y/y
Full year	48.4%	46.7%	-1.7p
1H	48.9%	45.6%	-3.3p
2H	47.7%	48.0%	+0.3p

9

UNIQLO Japan: FY2019 SG&A

FY2019 SG&A: 34.9% (+0.4p y/y)

2H improves 0.6p

・Personnel: Use of RFID, etc. improved store administration and productivity.

・Store rents: E-commerce proportion of total sales up, stores proportion down.

・Distribution: 1H: Warehousing, delivery costs up on higher Winter inventory.

2H: Further e-commerce distribution reform tempered the ratio's rise.

・Advertising and promotion: More flyers, TV ads in 2H, strategic marketing push.

・Other expenses: 1H: ratio up on Ariake Project IT investment.

2H: decline in outsourcing costs for store stocktaking.

・Depreciation: Ratio up on Ariake warehouse automation, shorter depreciation period for some former materials handling.

		Full Year	1H	2H
		To revenue (y/y)	To revenue (y/y)	To revenue (y/y)
	SG&A Total	+0.4p	+1.0p	-0.6p
	Distribution	+0.4p	+0.5p	+0.1p
	Advertising & Promotion	+0.2p	+0.0p	+0.3p
	Depreciation	+0.1p	+0.2p	+0.0p
	Other expenses	+0.1p	+0.4p	-0.3p
	Personnel	-0.2p	-0.1p	-0.5p
	Store rents	-0.2p	+0.0p	-0.3p	10

UNIQLO International: FY2019 Overview

Revenue tops 1 trillion yen for the first time

Double-digit rise in operating profit slightly above plan

・Consistent strong growth in Greater China (Mainland China, Hong Kong, Taiwan), and y/y rises of over 20% for both revenue and profit in SE Asia & Oceania underpinned strong overall segment performance.

・Gross profit margin down 0.6p on stronger inventory control in all markets, and wider discounting.

・SG&A ratio improved 0.9p on stronger cost controls at Greater China and SE Asia & Oceania, and measures to improve instore productivity.

・Europe profit up on strong performance from Russia. ・USA reduced losses significantly but fell short of plan. ・South Korea profit declined.

Billions of Yen

		Yr to Aug. 2018				Yr to Aug. 2019
		Actual	1H Actual			2H Actual			Full Year Actual
		y/y		y/y	y/y
	Revenue	896.3	580.0	+14.3%	446.0	+14.7%	1,026.0	+14.5%
	Business profit	120.6	88.6	+9.6%	51.6	+29.8%	140.3	+16.3%
UNIQLO	(to revenue)	13.5%	15.3%	-0.6p	11.6%	+1.4p	13.7%	+0.2p
International	Other income, expenses	-1.7	-0.1	-	-1.2	-	-1.4	-
	Operating profit	118.8	88.4	+9.6%	50.4	+32.2%	138.9	+16.8%		11
	(to revenue)	13.3%	15.3%	-0.6p	11.3%	+1.5p	13.5%	+0.2p

UNIQLO Intl.: FY2019 by Region (1)

Greater China: Double-digit revenue, profit gains

FY2019 revenue ¥502.5bln (+14.3％), OP ¥89.0bln (+20.8％)

Mainland China: Full-year OP rises over 30% y/y, strong growth continues ・UNIQLO LifeWear concept embraced, established as No.1 apparel brand.

・1H: Despite warm winter impact, sales of Winter item sales rose strongly once temperature cooled from December onwards.

2H: Strong overall sales thanks to early launch of Spring Summer ranges. ・E-commerce continued strong, rising approx. 30% y/y (20% of total sales). ・Gross profit margin improved slightly on more accurate sales planning.

・SG&A ratio improved sharply on lower advertising, store rents, personnel cost ratios.

Hong Kong, Taiwan: Operating profit declines

・HK: Same-store sales and OP down on unseasonal weather and local protests.

・Taiwan: Full-year OP down, but 2H OP up on higher same-store sales, and improved manhour productivity following introduction of RFID.

South Korea: Revenue and profit both dip

・1H revenue, profit up. 2H revenue, profit down. 2H sales fell sharply on sluggish

sales of Spring ranges during cool season, and boycotts in July, August.

12

UNIQLO Intl.: FY2019 by Region (2)

SE Asia & Oceania: Revenue, profit rise over 20% y/y

FY2019 sales reach ¥170bln mark, OP margin approx. 16%

Southeast Asia: Large revenue, profit gains

・UNIQLO presence further strengthened by Manila global flagship (opened October 2018) and multiple store openings.

・Indonesia, the Philippines, and Thailand especially strong.

・Gross profit margin down on stronger inventory control, greater discounting.

・Business cost efficiency improved on higher sales per store.

・First store in India opened October 4, 2019.

・First store is scheduled to open in Vietnam this year.

Australia: Consistent revenue, profit gains

First store in India opens in the popular Ambience Mall shopping center in the Delhi metropolitan area on October 4, 2019.

13

UNIQLO Intl.: FY2019 by Region (3)

North America: Sharp reduction in operating losses

USA: Sharp reduction in operating loss

・1H: Turned a profit. Favorably improved business performance by reviewing product mixes for each region and improving sales planning accuracy.

・2H: Sales of Spring Summer ranges struggled due to unseasonal weather. ・The improved full-year profit picture was not as strong as predicted.

・E-commerce sales continued strong, rising approx. 30% y/y (25% of total sales).

Europe: Revenue, profit riseon

・European sales rose 20% y/y to top the ¥100bln mark.

・Russia continued strong, large profit gain.

・E-commerce sales strong (20% of total sales).

・Performance from new Sweden, Netherlands, Denmark stores growing favorably.

・First store in Italy (Milan), opened September 2019, got off to a strong start.

1,200 people queued for the opening of the first UNIQLO Piazza Cordusio store, in

Milan, Italy on September 13.

14

GU: FY2019

Achieves a record performance

Operating profit exceeds plan, doubles y/y

• Strong 4.0% rise infull-yearsame-store sales after concentrating the number of product items, focusing on mass fashion trends, and strengthening TV ads and other marketing.

・Fall Winter oversized sweat and knitwear and Spring Summer oversized T-shirts and smooth T-shirts proved large-ticket items with sales of several million units, driving overall GU growth. Trendy cut & sew dresses and marshmallow court shoes also sold well.

・Gross profit margin +5.7p. (Cost of sales down on early orders and aggregate materials purchasing; early launch of seasonal ranges; nimble additional production; less discounting). 2H gross profit margin +8.3p.

・End-August inventory down y/y on early stock rundown of slow-selling items. ・SG&A ratio improved 0.5p. Personnel cost ratio down on more efficient store

operations. Other expenses down on cost-cutting projects.

		Yr to Aug. 2018			Yr to Aug. 2019				Billions
										of Yen
		Actual	1H Actual	y/y	2H Actual	y/y	Full Year Actual	y/y
	Revenue	211.8	117.1	+10.7%	121.5	+14.7%	238.7	+12.7%
	Business profit	11.9	14.1	+56.1%	14.0	+381.1%	28.1	+135.4%
GU	(to revenue)	5.6%	12.0%	+3.5p	11.6%	+8.8p	11.8%	+6.2p
Other income, expenses	-0.1	0.0	-95.5%	0.0	-	0.0	-
	Operating profit	11.7	14.1	+54.3%	14.0	+436.4%	28.1	+139.2%		15
	(to revenue)	5.6%	12.1%	+3.5p	11.6%	+9.1p	11.8%	+6.2p

Global Brands: FY2019

Business profit comes in below plan

・Above-plan losses primarily from Comptoir des Cotonniers.

・Returned an operating profit of ¥3.6bln (owing to the reporting of a ¥9.9bln impairment loss in FY2018)

Theory: Revenue and profit both higher ・Stable growth for the Theory brand. PLST: Revenue up, operating profit steady

・Increased SG&A expenses due to opening of 21 new stores over the year. Comptoir des Cotonniers: The loss recorded under business profit expands

・Starting to significantly strengthen management systems from 2H and are proceeding with structural reform, but, at this point, sales continue sluggish, and discounting is growing as we seek to achieve healthy inventory levels.

Billions of Yen

		Yr to Aug. 2018				Yr to Aug. 2019
		Actual	1H Actual			2H Actual			Full Year Actual
		y/y		y/y	y/y
	Revenue	154.4	77.7	-0.9%	72.1	-5.0%	149.9	-2.9%
	Business profit	6.2	3.2	-2.3%	0.7	-75.7%	3.9	-36.6%
Global Brands	(to revenue)	4.1%	4.2%	-	1.0%	-2.9p	2.6%	-1.5p
Other income, expenses	-10.3	-0.1	-	-0.1	-	-0.2	-
	Operating profit	-4.1	3.1	-	0.5	-63.6%	3.6	-		16
	(to revenue)	-	4.0%	-	0.8%	-1.2p	2.5%	-

Group: Balance Sheet (end August 2019)

			Billions of Yen
	End Aug. 2018	End Aug. 2019	Change
Total Assets	1,953.4	2,010.5	+57.0
Current Assets	1,618.0	1,638.1	+20.0
Non-Current Assets	335.3	372.3	+37.0
Total Liabilities	1,050.6	1,027.0	-23.6
Total Equity	902.7	983.5	+80.7

17

Group: B/S Main Points v. end Aug. 2018

Current assets: +¥20.0bln (¥１.6180trln⇒¥１.6381trln)

・Cash and cash equivalents: +¥86.8bln (¥999.6bln⇒¥1.0865trln)

・Inventory assets: -¥54.2bln (¥464.7bln⇒¥410.5bln)

Early rundown of stock of slow-selling Spring Summer products

Sought to strengthen order progress management, and achieve appropriate inventory UNIQLO Japan: -¥30.2blnUNIQLO Intl.: -¥18.0blnGU: -¥2.7blnGlobal Brands: -¥3.3bln

・Derivative financial assets: -¥20.7bln (¥35.5bln⇒¥14.7bln)

The average yen rate on our forward contract holdings was higher than the end-August spot rate, but the gap between the two shrank, resulting in a ¥11.2bln decline in derivative financial assets. Hedge accounting so no impact on P/L.

Non-current assets: +¥37.0bln (¥335.3bln⇒¥372.3bln)

・Derivative financial assets: +¥9.4bln (¥0.0bln⇒¥9.4bln)

・Intangible assets: +¥14.1bln (¥46.0bln⇒¥60.1bln)

Ariake Project IT Investment

Liabilities: -¥23.6bln (¥１.0506trln⇒¥１.0270trln)

・Trade and other payables: -¥22.7bln (¥214.5bln⇒¥191.7bln)

Trade payables declined on back of lower inventory levels

18

Group: FY2019 Cash Flow

・Profit contribution from UNIQLO

・Dividend payments: -¥48.9bln

・Repayment of corporate bonds: -¥30.0bln

and other operations: +¥252.4bln

・Reduced inventories: +¥38.1bln

+¥86.8bln y/y

+¥300.5bln

-¥78.7bln

-¥102.4bln

-¥32.4bln

¥1.0865trln

Cash used in

¥999.6bln

investing activities

Cash used in

Effect of

Cash flow from

financing

exchange rate

changes on

activities

operating activities

cash and cash

equivalents

								・Acquisition of property, plant and equipment -¥41.5bln
Opening balance of
(New stores, Ariake warehouse & office, etc.)
		cash and cash	・Acquisition of intangible assets -¥24.1bln
			equivalents	(systems investment, etc.)
								Capital expenditure: ¥85.2bln
								・UQ Intl: ¥31.6bln (new stores)
								・UQ Japan: ¥13.6bln (new stores, Ariake warehouse
								materials handling, etc.)
		September 1, 2018		・GU: ¥9.0bln (new stores)
								・Global Brands: ¥2.7bln (new stores)
								・Systems, etc.: ¥28.0bln (IT, etc.)

Closing balance of

cash and cash

equivalents

August 31, 2019

19

Group: FY2020 Estimates

Forecast a record full-year performance

Revenue	：¥2.4000trln	+ 4.8% y/y
Business profit : ¥280.0bln	+ 5.6% y/y
Operating profit : ¥275.0bln	+ 6.7% y/y

	Yr to Aug. 2019
	Actual
Revenue	2,290.5
(to revenue)	100.0%
Business profit	265.1
(to revenue)	11.6%
Other income, expenses	-7.5
Operating profit	257.6
(to revenue)	11.2%
Finance income, costs	-5.1
Profit before income taxes	252.4
(to revenue)	11.0%
Profit attributable to owners	162.5
of the parent
(to revenue)	7.1%

Yr to Aug. 2020	Billions of Yen
Estimates
(as of Oct.10)
y/y

2,400.0 +4.8%

100.0%

280.0 +5.6%

11.7%+0.1p

-5.0-

275.0 +6.7%

11.5%+0.3p

0.0 -

275.0 +8.9%

11.5%+0.5p

175.0 +7.6%

7.3%+0.2p

Note: We have incorporated an approximate 3% upward push factor in our FY2020
operating profit estimate relating to the application of the new IFRS 16 leases standard.	20

FY2020 Estimates by Group Operation (1)

UNIQLO Intl: Expect continued favorable expansion

・Yen appreciation seen exerting a 5% downward impact on results. After stripping out that impact, we expect the same pace of revenue gains as the previous year.

・Gross profit margin to dip slightly, SG&A ratio to improve slightly.

・Greater Chinaexpected to continue to report strong results. In light of recent forex movements, we assume an approximate 8% yuan depreciation over the full-year. Strip out that factor, and we expect double-digit gains in FY2020 revenue and profit.

・SE Asia & Oceaniaexpected to generate further significant revenue, profit gains.

・S. Koreaforecast to report large falls in revenue and profit. Europeto report revenue and profit gains. USAseen turning a full-year profit.

・UNIQLO International expected to open 168 new stores (incl. approx. 100 stores in Greater China, and approx. 40 stores in SE Asia & Oceania per year).

•Envisaged Future Operating Profit Trend by Business Segment

UNIQLO International

2017

2018

2019

2020 E

UNIQLO Japan

2017

2018

2019

2020 E

GU

2017

2018

2019

2020 E

Global Brands

2017 2018 2019 2020 E 21

FY2020 Estimates by Group Operation (2)

UNIQLO Japan: Expect double-digit profit rise

・Forecast 1H and 2H rises in revenue and profit, and double-digit FY profit rise. ・Expect same-store sales to rise 2.5% y/y, incl. approx. 30% rise in e-commerce

sales (proportion of total sales expected to exceed 11%).

・Expect gross profit margin to improve slightly on lower cost of sales and controlled discounting.

・Expect a slight improvement in the SG&A ratio as more appropriate inventory levels improve distribution ratio, and the introduction of RFID and self- checkouts boost efficiency of store operations and reduce personnel cost ratio.

GU: Revenue, profit forecast to rise

・Aim to expand sales by continuing focus on mass fashion trends.

・Planning to further strengthen GU's reputation for fashion at amazingly low

prices by expanding fashion items and low-priced product lineups. ・Predict steady gross profit margin and SG&A ratio.

Global Brands: Revenue, profit forecast to rise

・Expect stable growth for the Theory brand.
・Expect favorable expansion of PLST operational scale.
・Forecast smaller loss from Comptoir des Cotonniers as structural reform
continues.	22

FY2020 Dividend Estimates

Scheduled FY2019 dividend: ¥480 Expected FY2020 dividend: ¥500

	Dividend per share
	Interim	Yr-end	Annual
Year to Aug. 2018	200yen	240yen	440yen
Year to Aug. 2019 *1	240yen	240yen	480yen
Year to Aug. 2020 (E) (as of Oct.10) *2	250yen	250yen	500yen
Increase in dividend	+10yen	+10yen	+20yen

*1 The final decision on the FY2019 year-end dividend will be taken at the Board meeting to be held on November 5, 2019.

*2 The year-end dividend total may be adjusted in the event of large fluctuations in business performance or access to funds

23

Reference: Group Company Store Numbers

[Units: Stores]	FY2018		FY2019 Result (Sep. - Aug.)			FY2020 Estimates (Sep. - Aug.)
					Yr-end		Open			Close		Change End Aug.	Open		Close		Change		End Aug.
UNIQLO Operations	2,068	200	72	+128			2,196		198	57	+141	2,337
	UNIQLO Japan ※	827	34	44	-10			817		30	30	0	817
		Own stores	784	30	40	-10			774		-	-	-	-
		Large-scale	215		19	4	+15			230		-	-	-	-
		Standard and others		569		11		36		-25			544		-		-		-		-
		Franchise stores	43	4	4	0			43		-	-	-	-
	UNIQLO International	1,241	166	28	+138			1,379		168	27	+141	1,520
		Mainland China		633		86		8		+78			711				-		-
		Hong Kong		28		1		0		+1			29		100		-		-	-
		Taiwan		65		4		2		+2			67				-		-
		Korea		186		10		8		+2			188		7		-		-		-
		Singapore		26		4		2		+2			28				-		-
		Malaysia		48		2		1		+1			49				-		-
		Thailand		40		10		0		+10			50				-		-
		Philippines		51		8		1		+7			58		40		-		-	-
		Indonesia		18		8		0		+8			26			-		-
		Australia		15		5		0		+5			20				-		-
		Vietnam		0		0		0		0			0
		India		0		0		0		0			0
		USA		48		5		2		+3			51		6		-		-	-
		Canada		5		6		0		+6			11			-		-
		UK			11		2		0		+2			13				-		-
		France		25		2		3		-1			24				-		-
		Russia		31		7		1		+6			37				-		-
		Germany		5		4		0		+4			9				-		-
		Belgium		3		0		0		0			3		15		-		-	-
		Spain		2		0		0		0			2			-		-
		Sweden		1		0		0		0			1				-		-
		The Netherlands		0		1		0		+1			1				-		-
		Denmark		0		1		0		+1			1				-		-
		Italy	0		0		0	0			0				-		-
GU			393	44	16	+28			421		36	12	+24	445
Global Brands	984	58	70	-12			972		39	48	-9	963
	Theory	※		450		30		29		+1			451		-		-		-		-
	PLST	※		87		21		7		+14			101		-		-		-		-
	Comptoir des Cotonniers ※		320		7		31		-24			296		-		-		-		-
	Princesse tam.tam ※	127	0	3	-3			124		-	-	-	-
			Total	3,445	302	158	+144			3,589		273	117	+156	3,745

Note: Excludes Mina (Commercial Facility Business) and Grameen UNIQLO stores ※Includes franchise stores

24

Reference: Foreign Exchange Rates

Exchange rates used in consolidated accounts
(12-month moving average)					Yen
		1USD	1EUR	1GBP	1RMB	100KRW
FY 2018	Full-year12-month average	110.3	131.5	148.8	16.9	10.1
FY 2019	Full-year12-month average	110.9	125.9	142.3	16.2	9.7
FY 2020 (E)	Full-year12-month average	109.0	123.0	143.0	14.8	9.6

Exchange rates used on balance sheet

Yen

			1USD	1EUR	1GBP	1RMB	100KRW
FY 2018	Term-end exchange rate	111.1	129.5	144.6	16.2	9.9
FY 2019	Term-end exchange rate	106.4	117.6	129.6	14.8	8.8
FY 2020 (E) Term-end exchange rate	106.4	117.6	129.6	14.8	8.8

25

Reference: Capex, Depreciation

Capital Spending (incl. finance leases) and Depreciation

							Billions of Yen
				Capitalspending
		UNIQLO	UNIQLO	GU	Global	Systems,	Total	Depreciation
		Japan	International	Brand	etc
FY 2017	Full-year 12 months	6.6	24.3	7.6	2.9	18.1	59.7	39.6
FY 2018	Full-year 12 months	9.9	26.3	4.5	2.7	25.8	69.3	45.0
FY 2019	Full-year 12 months	13.6	31.6	9.0	2.7	28.0	85.2	48.4
FY 2020 (E) Full-year 12 months	7.8	35.1	7.4	3.5	46.3	100.1	54.3

・Finance leases have been disclosed in the capital expenditure data from FY2017 onwards. ・While we are planning to apply IFRS 16 Leases from FY2020 onwards, the financial effect of

that change is not included in the FY2020 full-year forecast for depreciation.

26

October 10, 2019

Fast Retailing Results for

FY2019 and Estimates for

FY2020

Takeshi Okazaki

Fast Retailing Co., Ltd.

Group Executive Vice President & CFO

1

Contents

Ｉ．Results for FY2019	P3	～P19
ＩＩ．Estimates for FY2020	P20	～	P23
ＩＩＩ．Reference	P24	～	P26

Disclosure of Corporate Performance

• Following the Group's adoption of International Financial Reporting Standards (IFRS) from the year ending August 31, 2014, all data in this document are calculated using IFRS standards.
• Business profit = Revenue - (Cost of sales + SG&A expenses)
• Group Operations:

UNIQLO Japan:	All UNIQLO operations within Japan
UNIQLO International:	All UNIQLO operations outside of Japan
GU:	All GU operations inside and outside Japan
Global Brands:	Theory, PLST, Comptoir des Cotonniers, Princesse tam.tam, J Brand

• Consolidated results also include Fast Retailing Co., Ltd. performance and consolidated adjustments.

A Note on Business Forecasts
When compiling business estimates, plans and target figures in this document, the figures that
are not historical facts are forward looking statements based on management's judgment in
light of currently available information. These business forecasts, plans and target figures may
vary materially from the actual business results depending on the economic environment, our
response to market demand and price competition, and changes in exchange rates.	2

Group: FY2019 (Sep. 2018 - Aug. 2019)

Achieves a record performance

Operating profit rises 9.1% y/y

Billions of Yen

		Yr to Aug. 2018						Yr to Aug. 2019
		Actual		1H Actual			2H Actual			Full Year Actual			Latest est.
			y/y		y/y		y/y		（Jul.11）
	2,130.0	1,267.6		1,022.8		2,290.5		2,300.0
Revenue	+6.8%	+8.4%	+7.5%
(to revenue)		100.0%		100.0%			100.0%			100.0%			100.0%
Gross profit	1,049.9	606.7	+3.6%	512.7	+10.4%	1,119.5	+6.6%	-
(to revenue)		49.3%		47.9%	-1.4p		50.1%	＋0.9p		48.9%	-0.4p		-
SG&A	797.4	433.4	+7.4%	420.9	+6.9%	854.3	+7.1%	-
(to revenue)		37.4%		34.2%	＋0.2p		41.2%	-0.6p		37.3%	-0.1p		-
Business profit	252.4	173.3	-4.8%	91.8	+30.4%	265.1	+5.0%	265.0
(to revenue)		11.9%		13.7%	-1.6p		9.0%	＋1.5p		11.6%	-0.3p		11.5%
Other income, expenses	-16.2	-0.3	-	-7.1	-	-7.5	-	-5.0
(to revenue)		-		-	-		-	-		-	-		-
Operating profit	236.2	172.9	+1.4%	84.6	+28.9%	257.6	+9.1%	260.0
(to revenue)		11.1%		13.6%	-0.8p		8.3%	＋1.3p		11.2%	＋0.1p		11.3%
Finance income, costs	6.4	1.2	-	-6.4	-	-5.1	-	0.0
(to revenue)		0.3%		0.1%	-		-	-		-	-		-
Profit before income taxes	242.6	174.2	+5.5%	78.2	+1.0%	252.4	+4.0%	260.0
(to revenue)		11.4%		13.7%	-0.2p		7.6%	-0.6p		11.0%	-0.4p		11.3%
Profit attributable to	154.8	114.0		48.5		162.5		165.0
owners of the parent	+9.5%	-4.2%	+5.0%
(to revenue)	7.3%	9.0%	＋0.2p	4.7%	-0.7p	7.1%	-0.2p	7.2%

3

Group: FY2019 Operating Profit

	Revenue				Average forex impact approx. -2% (y/y)
	¥2.1300trln→ ¥2.2905trln		1H		2H	FY
			(+¥160.4bln)	USD	+0.2％	+1％	+0.6％
	UQ Japan	+¥8.1bln	RMB	-5％	-4％	-4％
	UQ Intl.	+¥129.7bln	EUR	-3％	-5％	-4％
	GU	+¥26.9bln	KRW	-1％	-5％	-3％
					Total	-4％	-2％	-2％
	Gross profit margin		SG&A ratio
	49.3％→48.9％（-0.4p）	37.4％→37.3％（-0.1p）	FY2019:-¥7.5bln
		1H	2H	FY	＝	1H	2H	FY	① Foreign exchange loss: ¥6.0bln
¥2.2905trln	Group	-1.4p	+0.9p	-0.4p	Group	+0.2p	-0.6p	-0.1p	(incl temporary advances paid
+7.5％	UQ Japan	-3.3p	+0.3p	-1.7p	UQ Japan	+1.0p	-0.6p	+0.4p	for purchases by UQ Japan
	overseas subsidiaries: ¥5.3bln)
	UQ Intl.	-0.5p	-0.9p	-0.6p	UQ Intl.	+0.2p	-2.3p	-0.9p	②Impairment loss: ¥3.4bln
	GU	+3.0p	+8.3p	+5.7p	GU	-0.5p	-0.5p	-0.5p	(on stores UQ, GU etc. ¥3.1bln)
									FY2018: - ¥16.2 billion
			¥1.1195trln	¥854.3bln			① Impairment loss: ¥12.3bln
			+6.6％	+7.1％			②Foreign exchange loss: ¥1.4bln
							¥265.1bln		¥257.6bln
							+5.0％	-¥7.5bln	+9.1％
					SG&A			Other
							income/expenses

FY2019		FY2019		FY2019	FY2019
Revenue		Gross profit		Business profit	Operating profit	4

Group: FY2019	Profit Attributable to
Owners of the Parent

・Decrease in value of foreign-currency denominated assets: ¥13.1bln September. 1, 2018 : 1USD=111JPY

August 31, 2019 : 1USD=106JPY ・Interest income & expenses: +¥7.8bln

¥257.6bln		¥252.4bln
+9.1％	-¥5.1bln		¥74.4bln
+4.0％
	Finance
	income,				¥178.0bln
	costs						¥162.5bln
				+5.1％	¥15.4bln
								+5.0％
			Income taxes
			Non-
						controlling
						interests

FY2019	FY2019	FY2019	FY2019
Operating	Profit before	Profit for the	Profit
profit	income tax	period	attributable
			to owners of
			the parent

5

FY2019 Breakdown by Group Operation

							Billions of Yen
Yr to Aug. 2018				Yr to Aug. 2019
Actual	1H Actual			2H Actual			Full Year Actual
y/y		y/y	y/y

Revenue

Business profit

864.7	491.3	-0.5%
120.1	67.6	-23.9%

381.6	+2.8%	872.9	+0.9%
35.5	+13.9%	103.2	-14.1%

UNIQLO Japan	(to revenue)	13.9%	13.8%	-4.2p	9.3%	+0.9p	11.8%	-2.1p
Other income, expenses	-1.0	0.1	-	-0.8	-	-0.7	-
	Operating profit	119.0	67.7	-23.7%	34.7	+14.6%	102.4	-13.9%
	(to revenue)	13.8%	13.8%	-4.2p	9.1%	+0.9p	11.7%	-2.1p
	Revenue	896.3	580.0	+14.3%	446.0	+14.7%	1,026.0	+14.5%
	Business profit	120.6	88.6	+9.6%	51.6	+29.8%	140.3	+16.3%
UNIQLO	(to revenue)	13.5%	15.3%	-0.6p	11.6%	+1.4p	13.7%	+0.2p
International	Other income, expenses	-1.7	-0.1	-	-1.2	-	-1.4	-
	Operating profit	118.8	88.4	+9.6%	50.4	+32.2%	138.9	+16.8%
	(to revenue)	13.3%	15.3%	-0.6p	11.3%	+1.5p	13.5%	+0.2p

Revenue

Business profit

211.8 117.1+10.7%

11.914.1+56.1%

121.5	+14.7%		238.7	+12.7%
14.0	+381.1%	28.1	+135.4%

GU	(to revenue)	5.6%	12.0%	+3.5p	11.6%	+8.8p	11.8%	+6.2p
Other income, expenses	-0.1	0.0	-95.5%	0.0	-	0.0	-
	Operating profit	11.7	14.1	+54.3%	14.0	+436.4%	28.1	+139.2%
	(to revenue)	5.6%	12.1%	+3.5p	11.6%	+9.1p	11.8%	+6.2p

Revenue

Business profit

154.4		77.7	-0.9%
6.2	3.2	-2.3%

72.1 -5.0%

0.7-75.7%

1. -2.9%

1. -36.6%

Global Brands	(to revenue)	4.1%	4.2%	-	1.0%	-2.9p	2.6%	-1.5p
Other income, expenses	-10.3	-0.1	-	-0.1	-	-0.2	-
	Operating profit	-4.1	3.1	-	0.5	-63.6%	3.6	-
	(to revenue)	-	4.0%	-	0.8%	-1.2p	2.5%	-

Note: All UNIQLO Japan data (except revenue) include inter-Group transactions.

6

UNIQLO Japan FY2019

FY2019 profit down, but 2H OP recovers

・FY operating profit result slightly lower than expected.

・Same-store sales +1.0% y/y. E-commerce sales continued strong.

・FY gross profit margin down 1.7p but improved in 2H on lower cost of sales. ・FY SG&A ratio up 0.4p but improved in 2H on efficient cost-cutting.

Billions of Yen

		Yr to Aug. 2018				Yr to Aug. 2019
		Actual	1H Actual			2H Actual			Full Year Actual
	y/y		y/y	y/y
Revenue	864.7		491.3	-0.5%	381.6	+2.8%	872.9	+0.9%
(to revenue)		100.0%		100.0%			100.0%			100.0%
Gross profit	418.5		224.1	-7.2%	183.2	+3.5%	407.4	-2.7%
(to revenue)		48.4%		45.6%	-3.3p		48.0%	+0.3p		46.7%	-1.7p
SG&A	298.4		156.5	+2.5%	147.7	+1.3%	304.2	+1.9%
(to revenue)		34.5%		31.9%	+1.0p		38.7%	-0.6p		34.9%	+0.4p
Business profit	120.1		67.6	-23.9%	35.5	+13.9%	103.2	-14.1%
(to revenue)		13.9%		13.8%	-4.2p		9.3%	+0.9p		11.8%	-2.1p
Other income, expenses	-1.0		0.1	-	-0.8	-	-0.7	-
(to revenue)		-		0.0%	-		-	-		-	-
Operating profit	119.0		67.7	-23.7%	34.7	+14.6%	102.4	-13.9%
(to revenue)	13.8%		13.8%	-4.2p	9.1%	+0.9p	11.7%	-2.1p

Note: All UNIQLO Japan data (except revenue) include inter-Group transactions.

7

UNIQLO Japan: FY2019 Revenue

Same-store sales: +1.0% y/y (1H: -0.9%, 2H: +3.5％) 2H revenue result slightly above plan

・Same-store sales down 0.9% y/y in 1H on warm winter. Picked up 3.5% in 2H.

・Strong 2H sales of Summer ranges (UT T-shirts,T-shirts,UV-cut mesh parkas, Kando pants, wide pants, etc.) resulted in slightly above-plan 2H revenue.

・E-commerce sales expanding favorably. FY2019 revenue ¥83.2bln (+32.0% y/y). Proportion of total sales rose from 7.3% to 9.5%.

Same-store sales

Yr to Aug. 2019

1H

Mar.

Apr.

May

Jun.

Jul.

Aug.

2H

Full year

Net sales

-0.9%

+4.5%

-1.7%

-1.8%

+27.3%

-10.0%

+9.9%

+3.5%

+1.0%

Customer visits

+0.4%

+10.1%

+0.7%

+1.3%

+25.6%

-5.8%

+13.5%

+6.6%

+3.3%

Customer spend

-1.3%

-5.1%

-2.4%

-3.1%

+1.4%

-4.5%

-3.2%

-2.9%

-2.2%

8

UNIQLO Japan: FY2019 Gross Profit Margin

FY2019 gross profit margin: 46.7% (-1.7p y/y)

2H +0.3p on improved cost of sales

・1H gross profit margin down 3.3p on stronger discounting due to warm winter. ・Internal yen rate started appreciating in 2H, resulting in lower cost of sales.

・However, further efforts to achieve appropriate inventory levels from the spring, and early inventory rundown of slow-selling items resulted in above-plan

2H discounting rates. 2H +0.3p rise in gross profit margin slightly below plan. ・End-August inventory healthy. Sharp y/y reduction in monetary terms as well.

	Yr to Aug. 2018	Yr to Aug. 2019
			y/y
Full year	48.4%	46.7%	-1.7p
1H	48.9%	45.6%	-3.3p
2H	47.7%	48.0%	+0.3p

9

UNIQLO Japan: FY2019 SG&A

FY2019 SG&A: 34.9% (+0.4p y/y)

2H improves 0.6p

・Personnel: Use of RFID, etc. improved store administration and productivity.

・Store rents: E-commerce proportion of total sales up, stores proportion down.

・Distribution: 1H: Warehousing, delivery costs up on higher Winter inventory.

2H: Further e-commerce distribution reform tempered the ratio's rise.

・Advertising and promotion: More flyers, TV ads in 2H, strategic marketing push.

・Other expenses: 1H: ratio up on Ariake Project IT investment.

2H: decline in outsourcing costs for store stocktaking.

・Depreciation: Ratio up on Ariake warehouse automation, shorter depreciation period for some former materials handling.

		Full Year	1H	2H
		To revenue (y/y)	To revenue (y/y)	To revenue (y/y)
	SG&A Total	+0.4p	+1.0p	-0.6p
	Distribution	+0.4p	+0.5p	+0.1p
	Advertising & Promotion	+0.2p	+0.0p	+0.3p
	Depreciation	+0.1p	+0.2p	+0.0p
	Other expenses	+0.1p	+0.4p	-0.3p
	Personnel	-0.2p	-0.1p	-0.5p
	Store rents	-0.2p	+0.0p	-0.3p	10

UNIQLO International: FY2019 Overview

Revenue tops 1 trillion yen for the first time

Double-digit rise in operating profit slightly above plan

・Consistent strong growth in Greater China (Mainland China, Hong Kong, Taiwan), and y/y rises of over 20% for both revenue and profit in SE Asia & Oceania underpinned strong overall segment performance.

・Gross profit margin down 0.6p on stronger inventory control in all markets, and wider discounting.

・SG&A ratio improved 0.9p on stronger cost controls at Greater China and SE Asia & Oceania, and measures to improve instore productivity.

・Europe profit up on strong performance from Russia. ・USA reduced losses significantly but fell short of plan. ・South Korea profit declined.

Billions of Yen

		Yr to Aug. 2018				Yr to Aug. 2019
		Actual	1H Actual			2H Actual			Full Year Actual
		y/y		y/y	y/y
	Revenue	896.3	580.0	+14.3%	446.0	+14.7%	1,026.0	+14.5%
	Business profit	120.6	88.6	+9.6%	51.6	+29.8%	140.3	+16.3%
UNIQLO	(to revenue)	13.5%	15.3%	-0.6p	11.6%	+1.4p	13.7%	+0.2p
International	Other income, expenses	-1.7	-0.1	-	-1.2	-	-1.4	-
	Operating profit	118.8	88.4	+9.6%	50.4	+32.2%	138.9	+16.8%		11
	(to revenue)	13.3%	15.3%	-0.6p	11.3%	+1.5p	13.5%	+0.2p

UNIQLO Intl.: FY2019 by Region (1)

Greater China: Double-digit revenue, profit gains

FY2019 revenue ¥502.5bln (+14.3％), OP ¥89.0bln (+20.8％)

Mainland China: Full-year OP rises over 30% y/y, strong growth continues ・UNIQLO LifeWear concept embraced, established as No.1 apparel brand.

・1H: Despite warm winter impact, sales of Winter item sales rose strongly once temperature cooled from December onwards.

2H: Strong overall sales thanks to early launch of Spring Summer ranges. ・E-commerce continued strong, rising approx. 30% y/y (20% of total sales). ・Gross profit margin improved slightly on more accurate sales planning.

・SG&A ratio improved sharply on lower advertising, store rents, personnel cost ratios.

Hong Kong, Taiwan: Operating profit declines

・HK: Same-store sales and OP down on unseasonal weather and local protests.

・Taiwan: Full-year OP down, but 2H OP up on higher same-store sales, and improved manhour productivity following introduction of RFID.

South Korea: Revenue and profit both dip

・1H revenue, profit up. 2H revenue, profit down. 2H sales fell sharply on sluggish

sales of Spring ranges during cool season, and boycotts in July, August.

12

UNIQLO Intl.: FY2019 by Region (2)

SE Asia & Oceania: Revenue, profit rise over 20% y/y

FY2019 sales reach ¥170bln mark, OP margin approx. 16%

Southeast Asia: Large revenue, profit gains

・UNIQLO presence further strengthened by Manila global flagship (opened October 2018) and multiple store openings.

・Indonesia, the Philippines, and Thailand especially strong.

・Gross profit margin down on stronger inventory control, greater discounting.

・Business cost efficiency improved on higher sales per store.

・First store in India opened October 4, 2019.

・First store is scheduled to open in Vietnam this year.

Australia: Consistent revenue, profit gains

First store in India opens in the popular Ambience Mall shopping center in the Delhi metropolitan area on October 4, 2019.

13

UNIQLO Intl.: FY2019 by Region (3)

North America: Sharp reduction in operating losses

USA: Sharp reduction in operating loss

・1H: Turned a profit. Favorably improved business performance by reviewing product mixes for each region and improving sales planning accuracy.

・2H: Sales of Spring Summer ranges struggled due to unseasonal weather. ・The improved full-year profit picture was not as strong as predicted.

・E-commerce sales continued strong, rising approx. 30% y/y (25% of total sales).

Europe: Revenue, profit riseon

・European sales rose 20% y/y to top the ¥100bln mark.

・Russia continued strong, large profit gain.

・E-commerce sales strong (20% of total sales).

・Performance from new Sweden, Netherlands, Denmark stores growing favorably.

・First store in Italy (Milan), opened September 2019, got off to a strong start.

1,200 people queued for the opening of the first UNIQLO Piazza Cordusio store, in

Milan, Italy on September 13.

14

GU: FY2019

Achieves a record performance

Operating profit exceeds plan, doubles y/y

• Strong 4.0% rise infull-yearsame-store sales after concentrating the number of product items, focusing on mass fashion trends, and strengthening TV ads and other marketing.

・Fall Winter oversized sweat and knitwear and Spring Summer oversized T-shirts and smooth T-shirts proved large-ticket items with sales of several million units, driving overall GU growth. Trendy cut & sew dresses and marshmallow court shoes also sold well.

・Gross profit margin +5.7p. (Cost of sales down on early orders and aggregate materials purchasing; early launch of seasonal ranges; nimble additional production; less discounting). 2H gross profit margin +8.3p.

・End-August inventory down y/y on early stock rundown of slow-selling items. ・SG&A ratio improved 0.5p. Personnel cost ratio down on more efficient store

operations. Other expenses down on cost-cutting projects.

		Yr to Aug. 2018			Yr to Aug. 2019				Billions
										of Yen
		Actual	1H Actual	y/y	2H Actual	y/y	Full Year Actual	y/y
	Revenue	211.8	117.1	+10.7%	121.5	+14.7%	238.7	+12.7%
	Business profit	11.9	14.1	+56.1%	14.0	+381.1%	28.1	+135.4%
GU	(to revenue)	5.6%	12.0%	+3.5p	11.6%	+8.8p	11.8%	+6.2p
Other income, expenses	-0.1	0.0	-95.5%	0.0	-	0.0	-
	Operating profit	11.7	14.1	+54.3%	14.0	+436.4%	28.1	+139.2%		15
	(to revenue)	5.6%	12.1%	+3.5p	11.6%	+9.1p	11.8%	+6.2p

Global Brands: FY2019

Business profit comes in below plan

・Above-plan losses primarily from Comptoir des Cotonniers.

・Returned an operating profit of ¥3.6bln (owing to the reporting of a ¥9.9bln impairment loss in FY2018)

Theory: Revenue and profit both higher ・Stable growth for the Theory brand. PLST: Revenue up, operating profit steady

・Increased SG&A expenses due to opening of 21 new stores over the year. Comptoir des Cotonniers: The loss recorded under business profit expands

・Starting to significantly strengthen management systems from 2H and are proceeding with structural reform, but, at this point, sales continue sluggish, and discounting is growing as we seek to achieve healthy inventory levels.

Billions of Yen

		Yr to Aug. 2018				Yr to Aug. 2019
		Actual	1H Actual			2H Actual			Full Year Actual
		y/y		y/y	y/y
	Revenue	154.4	77.7	-0.9%	72.1	-5.0%	149.9	-2.9%
	Business profit	6.2	3.2	-2.3%	0.7	-75.7%	3.9	-36.6%
Global Brands	(to revenue)	4.1%	4.2%	-	1.0%	-2.9p	2.6%	-1.5p
Other income, expenses	-10.3	-0.1	-	-0.1	-	-0.2	-
	Operating profit	-4.1	3.1	-	0.5	-63.6%	3.6	-		16
	(to revenue)	-	4.0%	-	0.8%	-1.2p	2.5%	-

Group: Balance Sheet (end August 2019)

			Billions of Yen
	End Aug. 2018	End Aug. 2019	Change
Total Assets	1,953.4	2,010.5	+57.0
Current Assets	1,618.0	1,638.1	+20.0
Non-Current Assets	335.3	372.3	+37.0
Total Liabilities	1,050.6	1,027.0	-23.6
Total Equity	902.7	983.5	+80.7

17

Group: B/S Main Points v. end Aug. 2018

Current assets: +¥20.0bln (¥１.6180trln⇒¥１.6381trln)

・Cash and cash equivalents: +¥86.8bln (¥999.6bln⇒¥1.0865trln)

・Inventory assets: -¥54.2bln (¥464.7bln⇒¥410.5bln)

Early rundown of stock of slow-selling Spring Summer products

Sought to strengthen order progress management, and achieve appropriate inventory UNIQLO Japan: -¥30.2blnUNIQLO Intl.: -¥18.0blnGU: -¥2.7blnGlobal Brands: -¥3.3bln

・Derivative financial assets: -¥20.7bln (¥35.5bln⇒¥14.7bln)

The average yen rate on our forward contract holdings was higher than the end-August spot rate, but the gap between the two shrank, resulting in a ¥11.2bln decline in derivative financial assets. Hedge accounting so no impact on P/L.

Non-current assets: +¥37.0bln (¥335.3bln⇒¥372.3bln)

・Derivative financial assets: +¥9.4bln (¥0.0bln⇒¥9.4bln)

・Intangible assets: +¥14.1bln (¥46.0bln⇒¥60.1bln)

Ariake Project IT Investment

Liabilities: -¥23.6bln (¥１.0506trln⇒¥１.0270trln)

・Trade and other payables: -¥22.7bln (¥214.5bln⇒¥191.7bln)

Trade payables declined on back of lower inventory levels

18

Group: FY2019 Cash Flow

・Profit contribution from UNIQLO

・Dividend payments: -¥48.9bln

・Repayment of corporate bonds: -¥30.0bln

and other operations: +¥252.4bln

・Reduced inventories: +¥38.1bln

+¥86.8bln y/y

+¥300.5bln

-¥78.7bln

-¥102.4bln

-¥32.4bln

¥1.0865trln

Cash used in

¥999.6bln

investing activities

Cash used in

Effect of

Cash flow from

financing

exchange rate

changes on

activities

operating activities

cash and cash

equivalents

								・Acquisition of property, plant and equipment -¥41.5bln
Opening balance of
(New stores, Ariake warehouse & office, etc.)
		cash and cash	・Acquisition of intangible assets -¥24.1bln
			equivalents	(systems investment, etc.)
								Capital expenditure: ¥85.2bln
								・UQ Intl: ¥31.6bln (new stores)
								・UQ Japan: ¥13.6bln (new stores, Ariake warehouse
								materials handling, etc.)
		September 1, 2018		・GU: ¥9.0bln (new stores)
								・Global Brands: ¥2.7bln (new stores)
								・Systems, etc.: ¥28.0bln (IT, etc.)

Closing balance of

cash and cash

equivalents

August 31, 2019

19

Group: FY2020 Estimates

Forecast a record full-year performance

Revenue	：¥2.4000trln	+ 4.8% y/y
Business profit : ¥280.0bln	+ 5.6% y/y
Operating profit : ¥275.0bln	+ 6.7% y/y

	Yr to Aug. 2019
	Actual
Revenue	2,290.5
(to revenue)	100.0%
Business profit	265.1
(to revenue)	11.6%
Other income, expenses	-7.5
Operating profit	257.6
(to revenue)	11.2%
Finance income, costs	-5.1
Profit before income taxes	252.4
(to revenue)	11.0%
Profit attributable to owners	162.5
of the parent
(to revenue)	7.1%

Yr to Aug. 2020	Billions of Yen
Estimates
(as of Oct.10)
y/y

2,400.0 +4.8%

100.0%

280.0 +5.6%

11.7%+0.1p

-5.0-

275.0 +6.7%

11.5%+0.3p

0.0 -

275.0 +8.9%

11.5%+0.5p

175.0 +7.6%

7.3%+0.2p

Note: We have incorporated an approximate 3% upward push factor in our FY2020
operating profit estimate relating to the application of the new IFRS 16 leases standard.	20

FY2020 Estimates by Group Operation (1)

UNIQLO Intl: Expect continued favorable expansion

・Yen appreciation seen exerting a 5% downward impact on results. After stripping out that impact, we expect the same pace of revenue gains as the previous year.

・Gross profit margin to dip slightly, SG&A ratio to improve slightly.

・Greater Chinaexpected to continue to report strong results. In light of recent forex movements, we assume an approximate 8% yuan depreciation over the full-year. Strip out that factor, and we expect double-digit gains in FY2020 revenue and profit.

・SE Asia & Oceaniaexpected to generate further significant revenue, profit gains.

・S. Koreaforecast to report large falls in revenue and profit. Europeto report revenue and profit gains. USAseen turning a full-year profit.

・UNIQLO International expected to open 168 new stores (incl. approx. 100 stores in Greater China, and approx. 40 stores in SE Asia & Oceania per year).

•Envisaged Future Operating Profit Trend by Business Segment

UNIQLO International

2017

2018

2019

2020 E

UNIQLO Japan

2017

2018

2019

2020 E

GU

2017

2018

2019

2020 E

Global Brands

2017 2018 2019 2020 E 21

FY2020 Estimates by Group Operation (2)

UNIQLO Japan: Expect double-digit profit rise

・Forecast 1H and 2H rises in revenue and profit, and double-digit FY profit rise. ・Expect same-store sales to rise 2.5% y/y, incl. approx. 30% rise in e-commerce

sales (proportion of total sales expected to exceed 11%).

・Expect gross profit margin to improve slightly on lower cost of sales and controlled discounting.

・Expect a slight improvement in the SG&A ratio as more appropriate inventory levels improve distribution ratio, and the introduction of RFID and self- checkouts boost efficiency of store operations and reduce personnel cost ratio.

GU: Revenue, profit forecast to rise

・Aim to expand sales by continuing focus on mass fashion trends.

・Planning to further strengthen GU's reputation for fashion at amazingly low

prices by expanding fashion items and low-priced product lineups. ・Predict steady gross profit margin and SG&A ratio.

Global Brands: Revenue, profit forecast to rise

・Expect stable growth for the Theory brand.
・Expect favorable expansion of PLST operational scale.
・Forecast smaller loss from Comptoir des Cotonniers as structural reform
continues.	22

FY2020 Dividend Estimates

Scheduled FY2019 dividend: ¥480 Expected FY2020 dividend: ¥500

	Dividend per share
	Interim	Yr-end	Annual
Year to Aug. 2018	200yen	240yen	440yen
Year to Aug. 2019 *1	240yen	240yen	480yen
Year to Aug. 2020 (E) (as of Oct.10) *2	250yen	250yen	500yen
Increase in dividend	+10yen	+10yen	+20yen

*1 The final decision on the FY2019 year-end dividend will be taken at the Board meeting to be held on November 5, 2019.

*2 The year-end dividend total may be adjusted in the event of large fluctuations in business performance or access to funds

23

Reference: Group Company Store Numbers

[Units: Stores]	FY2018		FY2019 Result (Sep. - Aug.)			FY2020 Estimates (Sep. - Aug.)
					Yr-end		Open			Close		Change End Aug.	Open		Close		Change		End Aug.
UNIQLO Operations	2,068	200	72	+128			2,196		198	57	+141	2,337
	UNIQLO Japan ※	827	34	44	-10			817		30	30	0	817
		Own stores	784	30	40	-10			774		-	-	-	-
		Large-scale	215		19	4	+15			230		-	-	-	-
		Standard and others		569		11		36		-25			544		-		-		-		-
		Franchise stores	43	4	4	0			43		-	-	-	-
	UNIQLO International	1,241	166	28	+138			1,379		168	27	+141	1,520
		Mainland China		633		86		8		+78			711				-		-
		Hong Kong		28		1		0		+1			29		100		-		-	-
		Taiwan		65		4		2		+2			67				-		-
		Korea		186		10		8		+2			188		7		-		-		-
		Singapore		26		4		2		+2			28				-		-
		Malaysia		48		2		1		+1			49				-		-
		Thailand		40		10		0		+10			50				-		-
		Philippines		51		8		1		+7			58		40		-		-	-
		Indonesia		18		8		0		+8			26			-		-
		Australia		15		5		0		+5			20				-		-
		Vietnam		0		0		0		0			0
		India		0		0		0		0			0
		USA		48		5		2		+3			51		6		-		-	-
		Canada		5		6		0		+6			11			-		-
		UK			11		2		0		+2			13				-		-
		France		25		2		3		-1			24				-		-
		Russia		31		7		1		+6			37				-		-
		Germany		5		4		0		+4			9				-		-
		Belgium		3		0		0		0			3		15		-		-	-
		Spain		2		0		0		0			2			-		-
		Sweden		1		0		0		0			1				-		-
		The Netherlands		0		1		0		+1			1				-		-
		Denmark		0		1		0		+1			1				-		-
		Italy	0		0		0	0			0				-		-
GU			393	44	16	+28			421		36	12	+24	445
Global Brands	984	58	70	-12			972		39	48	-9	963
	Theory	※		450		30		29		+1			451		-		-		-		-
	PLST	※		87		21		7		+14			101		-		-		-		-
	Comptoir des Cotonniers ※		320		7		31		-24			296		-		-		-		-
	Princesse tam.tam ※	127	0	3	-3			124		-	-	-	-
			Total	3,445	302	158	+144			3,589		273	117	+156	3,745

Note: Excludes Mina (Commercial Facility Business) and Grameen UNIQLO stores ※Includes franchise stores

24

Reference: Foreign Exchange Rates

Exchange rates used in consolidated accounts
(12-month moving average)					Yen
		1USD	1EUR	1GBP	1RMB	100KRW
FY 2018	Full-year12-month average	110.3	131.5	148.8	16.9	10.1
FY 2019	Full-year12-month average	110.9	125.9	142.3	16.2	9.7
FY 2020 (E)	Full-year12-month average	109.0	123.0	143.0	14.8	9.6

Exchange rates used on balance sheet

Yen

			1USD	1EUR	1GBP	1RMB	100KRW
FY 2018	Term-end exchange rate	111.1	129.5	144.6	16.2	9.9
FY 2019	Term-end exchange rate	106.4	117.6	129.6	14.8	8.8
FY 2020 (E) Term-end exchange rate	106.4	117.6	129.6	14.8	8.8

25

Reference: Capex, Depreciation

Capital Spending (incl. finance leases) and Depreciation

							Billions of Yen
				Capitalspending
		UNIQLO	UNIQLO	GU	Global	Systems,	Total	Depreciation
		Japan	International	Brand	etc
FY 2017	Full-year 12 months	6.6	24.3	7.6	2.9	18.1	59.7	39.6
FY 2018	Full-year 12 months	9.9	26.3	4.5	2.7	25.8	69.3	45.0
FY 2019	Full-year 12 months	13.6	31.6	9.0	2.7	28.0	85.2	48.4
FY 2020 (E) Full-year 12 months	7.8	35.1	7.4	3.5	46.3	100.1	54.3

・Finance leases have been disclosed in the capital expenditure data from FY2017 onwards. ・While we are planning to apply IFRS 16 Leases from FY2020 onwards, the financial effect of

that change is not included in the FY2020 full-year forecast for depreciation.

26