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MarketScreener Homepage  >  Equities  >  Tokyo Stock Exchange  >  Fast Retailing Co., Ltd.    9983   JP3802300008

FAST RETAILING CO., LTD.

(9983)
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Fast Retailing : Results for September to November 2019 and Estimates for FY2020 (516KB)

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01/09/2020 | 03:43am EST

January 9, 2020

Fast Retailing Results for September to November 2019 and Estimates for FY2020

Takeshi Okazaki

Fast Retailing Co., Ltd.

Group Executive Vice President & CFO

1

Contents

I.Results Sep.-Nov. 2019 (1Q)

P3P19

II.Estimates for Fiscal 2020

P20P22

III.Reference

P23P26

Disclosure of Corporate Performance

  • All data in this document are calculated using IFRS standards.
  • Business profit = Revenue - (Cost of sales + SG&A expenses)
  • All UNIQLO Japan data (except revenue) includeinter-group transactions.
  • 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: FY2020 1Q Results

Revenue and profit decline (significantly below plan) S. Korea, Hong Kong down, warm weather worldwide

Yr to Aug. 2019

Yr to Aug. 2020

(3 mths to Nov. 2018)

(3 mths to Nov. 2019)

y/y

Actual

Actual

Revenue

644.4

623.4

-3.3%

(to revenue)

100.0%

100.0%

Gross profit

324.8

312.9

-3.7%

(to revenue)

50.4%

50.2%

-0.2p

SG&A

221.5

224.0

+1.2%

(to revenue)

34.4%

35.9%

+1.5p

Business profit

103.2

88.8

-14.0%

(to revenue)

16.0%

14.2%

-1.8p

Other income, expenses

1.3

2.8

+108.8%

(to revenue)

0.2%

0.5%

+0.3p

Operating profit

104.6

91.6

-12.4%

(to revenue)

16.2%

14.7%

-1.5p

Finance income, costs

6.4

10.3

+60.8%

(to revenue)

1.0%

1.7%

+0.7p

Profit before income taxes

111.0

102.0

-8.2%

(to revenue)

17.2%

16.4%

-0.8p

Profit attributable to

73.4

70.9

-3.5%

owners of the parent

(to revenue)

11.4%

11.4%

-

Billions of

Yen

Adoption of IFRS16 from FY2020 boosted business profit by ¥0.9bln and operating profit by ¥1.2bln.

3

Group: FY2020 1Q Operating Profit

Revenue

¥644.4bln→ ¥623.4bln -¥20.9bln

UQ Japan

-¥13.1bln

UQ International

-¥10.6bln

GU

+¥7.4bln

Average forex impact approx. -6% (y/y)

USD-4%

EUR-9%

RMB-7%

KRW-10%

¥623.4bln

Gross profit margin

SG&A ratio

50.4→ 50.2(-0.2p)

34.4→35.9(+1.5p)

-3.3%

UQ Japan

+2.3p

UQ Japan

+1.0p

UQ International

-3.0p

UQ International

+1.4p

GU

+3.2p

GU

-0.7p

¥312.9bln

¥224.0bln

-3.7%

+1.2%

Foreign exchange gain of ¥3.3bln, mainly related to temporary advances paid for purchases by overseas subsidiaries

Sep. 1, 2019 1USD=106.4JPY Nov. 30, 2019 1USD=109.6JPY

¥88.8bln

¥91.6bln

-14.0%

¥2.8bln

-12.4%

SG&A

Other

income/expenses

FY2020 1Q

FY2020 1Q

FY2020 1Q

FY2020 1Q

Revenue

Gross profit

Business

Operating

profit

profit

4

Group: FY2020 1Q

Profit Attributable to

Owners of the Parent

Value of foreign-currency denominated assets increased by ¥9.2bln

Interest income & expenses: +¥1.0bln

¥102.0bln

¥91.6bln

¥10.3bln

-8.2%

¥30.1bln

-12.4%

Net finance

¥71.8bln

¥70.9bln

income

¥0.9bln

-10.5%

-3.5

Income taxes

Non-controlling

assets

FY2020 1Q

FY2020 1Q

FY2020 1Q

FY2020 1Q

Operating

Profit before

Profit for the

Profit

profit

income taxes

period

attributable to

owners of the

parent

5

1Q Breakdown by Group Operation

Yr to Aug. 2019

Yr to Aug. 2020

(3 mths to Nov. 2018)

(3 mths to Nov. 2019)

y/y

Actual

Actual

Revenue

246.1

233.0

-5.3%

Business profit

37.9

38.8

+2.6%

UNIQLO Japan

(to revenue)

15.4%

16.7%

+1.3p

Other income, expenses

0.0

-0.3

-

Operating profit

37.9

38.5

+1.6%

(to revenue)

15.4%

16.5%

+1.1p

Revenue

291.3

280.7

-3.6%

Business profit

52.8

38.2

-27.6%

UNIQLO International

(to revenue)

18.1%

13.6%

-4.5p

Other income, expenses

-0.2

-0.4

-

Operating profit

52.5

37.8

-28.0%

(to revenue)

18.0%

13.5%

-4.5p

Revenue

65.4

72.9

+11.4%

Business profit

8.6

12.4

+44.3%

GU

(to revenue)

13.1%

17.0%

+3.9p

Other income, expenses

-0.0

-0.0

-

Operating profit

8.5

12.3

+44.4%

(to revenue)

13.1%

17.0%

+3.9p

Revenue

40.7

36.1

-11.4%

Business profit

2.8

1.9

-32.5%

Global Brands

(to revenue)

6.9%

5.3%

-1.6p

Other income, expenses

-0.0

-0.0

-

Operating profit

2.7

1.8

-31.5%

(to revenue)

6.7%

5.2%

-1.5p

Billions of

Yen

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

6

UNIQLO Japan: 1Q Overview

Revenue down but profit up slightly on improved gross profit margin

Sluggish sales of thermal items during warm weather period knocked revenue lower and below plan.

Operating profit up slightly on improved gross profit margin and lower year-on-year business costs. However, operating profit did come in below plan.

Yr to Aug. 2019

Yr to Aug. 2020

(3 mths to Nov. 2018) (3 mths to Nov. 2019)

y/y

Actual

Actual

Revenue

246.1

233.0

-5.3%

(to revenue)

100.0%

100.0%

Gross profit

117.4

116.5

-0.8%

(to revenue)

47.7%

50.0%

+2.3p

SG&A

79.5

77.6

-2.4%

(to revenue)

32.3%

33.3%

+1.0p

Business profit

37.9

38.8

+2.6%

(to revenue)

15.4%

16.7%

+1.3p

Other income, expenses

0.0

-0.3

-

(to revenue)

0.0%

-

-

Operating profit

37.9

38.5

+1.6%

(to revenue)

15.4%

16.5%

+1.1p

Billions of

Yen

Adoption of IFRS16 from FY2020 boosted business profit by ¥0.2bln and operating profit by ¥0.3bln. 7

UNIQLO Japan: 1Q Revenue

Same-store sales down 4.1% y/y

Persistently warm weather resulted in a delay in launch of Fall Winter items and weakened demand for cold-weather clothing. A larger number of product items also made it difficult to fully convey the core appeal of certain products to our customers.

  • While many products such as ournew-range curved pants, souffle yarn sweaters and hybrid down items as well as our trendy sweatshirts, and leggings sold well, sales of Winter-season thermal clothing such as Ultra Light Down, HEATTECH, cashmere and merino sweaters proved sluggish.

EC sales rose 4.1% y/y to ¥24.7bln. Pace of growth dampened by same reasons as physical stores.

December same-store sales declined 5.3% on continued warm-weather days.

Yr to Aug. 2020

Same-store sales

3 mths to

Sep.

Oct.

Nov.

Dec.

Nov. 2019

Net sales

-4.2%

-1.9%

-5.5%

-4.1%

-5.3%

Customer visits

+0.4%

+5.6%

-3.3%

+0.4%

-2.2%

Customer spend

-4.6%

-7.1%

-2.3%

-4.5%

-3.1%

8

UNIQLO Japan: 1Q Gross Profit Margin, SG&A

Gross profit margin 50.0(+2.3p y/y)

Slightly higher than expected

Gross profit margin improved on appreciation in yen exchange rates for merchandise purchasing.

Discounting rate up slightly y/y but lower than planned thanks to stronger inventory control and early sell-off of sluggish Fall Winter items.

SG&A ratio 33.3(+1.0p y/y)

Reduced y/y as planned in monetary terms

Depreciation expenses sharply higher but store rents considerably lower following adoption of IFRS16.

Stripping out the IFRS16 effect, depreciation, personnel and store rents declined y/y in monetary terms.

Depreciation expenses also declined as a ratio to net sales as the effect of accelerated depreciation (shorter depreciation period) of some materials handling for the Ariake Warehouse in FY2019 disappeared.

Personnel costs down mostly from RFID tags which made store operations efficient. Distribution costs steady y/y in monetary terms. Store-related distribution costs

down on lower inventories. EC distribution costs rose on higher sales,

but greater

efficiencies achieved through automation of Ariake Warehouse.

9

UNIQLO International: 1Q Overview

Falls short of plan. Revenue and profit down

Revenue, profit up if exclude S. Korea, HK profit dip

Profit down on South Korea, Hong Kong losses. Local currency weakening knocked operating profit down by approx. 5%.

Greater China, North America, Europe below plan, sales struggled on warm weather.

South, Southeast Asia & Oceania expanded favorably as planned to report large revenue and profit gains.

Gross profit margin down 3.0p on early inventory rundown. SG&A ratio up 1.4p on lower-than-expected sales but business cost ratio improved excluding South Korea and Hong Kong results.

Yr to Aug. 2019

Yr to Aug. 2020

Billions of

(3 mths to Nov. 2018)

(3 mths to Nov. 2019)

y/y

Yen

Actual

Actual

Revenue

291.3

280.7

-3.6%

(to revenue)

100.0%

100.0%

Gross profit

158.3

143.9

-9.1%

(to revenue)

54.3%

51.3%

-3.0p

SG&A

105.5

105.6

+0.1%

(to revenue)

36.2%

37.6%

+1.4p

Business profit

52.8

38.2

-27.6%

(to revenue)

18.1%

13.6%

-4.5p

Other income, expenses

-0.2

-0.4

-

(to revenue)

-

-

-

Operating profit

52.5

37.8

-28.0%

(to revenue)

18.0%

13.5%

-4.5p

Adoption of IFRS16 from FY2020 boosted business profit by ¥0.4bln and operating profit by ¥0.5bln. 10

UNIQLO International: 1Q by Region (1)

Greater China: Revenue up, profit down Revenue, profit up if remove forex factor

Profit declined due to an approx. 7% downward pressure from a weaker yuan v. yen, impact of Hong Kong demonstrations, and sluggish sales of thermal clothing during warm weather. Result was slightly below plan.

GPM −2.3p: HK margin down. Mainland China, Taiwan early stock rundown.

SG&A ratio −0.2p: Better store rent ratio, improved store efficiency on RFID.

Mainland China: Revenue and profit rise

Sweatshirts, fleece, flannel Fall Winter items sold well, same-store sales rose.

EC sales rose approx. 30% y/y as UNIQLO maintained strong No.1 apparel ranking in the annual Singles Day sale for fourth consecutive year.

1Q temperatures warm, sluggish sales of thermal items, early stock rundown. Operating profit slightly lower than forecast.

Hong Kong: Operating profit fell below plan to report a slight operating loss Same-store sales adversely affected by public demonstrations.

Gross profit margin down on more vigorous discounting. Taiwan: Revenue up, operating profit flat

Same-store sales rose on strong Singles Day and UNIQLO anniversary sales.

Warm weather in September, October prompted early rundown of excess stock.

Operating profit result slightly lower than planned.

11

UNIQLO International: 1Q by Region (2)

S. Korea: Reported an operating loss, far below plan

Same-stores sales dipped sharply on local boycott of Japanese products since July.

South, Southeast Asia & Oceania:

Double-digit growth in revenue, profit as planned

Southeast Asia & Oceania

Indonesia, the Philippines especially strong. Double-digitsame-store sales growth, large OP rise.

Strong sales of UT, T-shirts, EZY ankle pants, jeans and other Summer items, as well as flannel shirts, HEATETCH and other Fall Winter items.

Opened first Vietnam store in December in Ho Chi Minh. AustraliaRevenue and profit rose to plan.

India

First store opened in New Delhi in October 2019. Second store opened in Delhi suburb in November 2019. Both stores performing strongly.

Core Winter items ranges (Ultra Light Down, fleece, HEATTECH, sweatshirts, flannel) sparked strong local customer support and higher-than-expected sales.

UNIQLO Dong Khoi Store (Vietnam) Attracted unprecedent crowds, prompting entry restrictions on first

3 days.

12

UNIQLO International: 1Q by Region (3)

North America: Revenue, profit up on strong Canada

USA: Revenue and profit down, slightly below plan

Same-store sales dipped slightly on warm winter, sluggish sales of Winter items.

Black Friday was November 23 in 2018 and November 29 in 2019, meaning a portion of EC sales extended into the month of December.

Gross profit margin down, operating profit slightly lower on stronger discounting. Canada: Continued strong store openings, large revenue, profit gains as expected.

Europe: Double-digit revenue growth. OP slightly lower, but flat if remove forex effect

Despite double-digit revenue growth, OP dipped slightly to just below plan.

Same-store sales rose. EC sales continued strong, expanding approx. 30% y/y.

Cost of sales rose on forex effect, resulting in a lower GPM and slight dip in profits.

Spain, the Netherlands, Italy results strong.

Italian operation, launched in September 2019,

UNIQLO Piazza Cordusio Store (Italy)

generating much higher-than-expected sales.

13

GU: 1Q Overview

Significant revenue and profit gains as expected

Despite persistent warm weather, same-store sales rose on strong sales of lightweight outerwear, and knitwear featured in successful TV ad campaigns.

Gross profit margin improved by an impressive 3.2 points, the SG&A ratio declined 0.7 point, resulting in a considerable expansion in operating profit.

Yr to Aug. 2019

Yr to Aug. 2020

(3 mths to Nov. 2018)

(3 mths to Nov. 2019)

y/y

Actual

Actual

Revenue

65.4

72.9

+11.4%

(to revenue)

100.0%

100.0%

Gross profit

31.1

37.0

+18.9%

(to revenue)

47.6%

50.8%

+3.2p

SG&A

22.5

24.6

+9.2%

(to revenue)

34.5%

33.8%

-0.7p

Business profit

8.6

12.4

+44.3%

(to revenue)

13.1%

17.0%

+3.9p

Other income, expenses

-0.0

-0.0

-

(to revenue)

-

-

-

Operating profit

8.5

12.3

+44.4%

(to revenue)

13.1%

17.0%

+3.9p

Billions of

Yen

Very little impact from the adoption of IFRS16 from FY2020.

14

GU: 1Q Overview

TV ads for cardigans and knitwear helped generate strong sales of trendy cable-design cardigans, knitted tunics and other design knitwear.

GU sharply increased sales by ordering additional production of strong-selling items mid-season.

Strong sales of sweatshirts, oversized shirts, shirt jackets, boa jackets and other

lightweight outwear helped drive GU's strong sales performance.

Discounting rate reduced on aggregate materials purchasing and early order submission, resulting in a significant improvement in the GU gross profit margin.

SG&A ratio also improved on a lower personnel cost ratio generated by more efficient store operations, and a lower advertising and promotion expense ratio.

Cardigan campaign

Knitwear campaign

15

Global Brands: 1Q Overview

Revenue, profit down. OP slightly below plan

Theory: Revenue and profit down

Due to warm global weather, sales of Winter outerwear and sweaters struggled in the Japanese and U.S. markets.

Early rundown of sluggish products knocked the gross profit margin lower but helped maintain appropriate inventory levels.

Temporary rise in Japan-based expenses linked to relocation of press room. PLST: Revenue and profit down

  • "Cut-and-sew"items, cardigans, shirts, blouses and other Fall items sold well but sales of thermal outwear and bottoms stifled by the warm weather.

Comptoir des Cotonniers: Loss flat

Billions of Yen

Yr to Aug. 2019

Yr to Aug. 2020

(3 mths to Nov. 2018)

(3 mths to Nov. 2019)

y/y

Actual

Actual

Revenue

Business profit

40.7

36.1

-11.4%

2.8

1.9

-32.5%

Global Brands

(to revenue)

6.9%

5.3%

-1.6p

Other income, expenses

-0.0

-0.0

-

Operating profit

2.7

1.8

-31.5%

(to revenue)

6.7%

5.2%

-1.5p

Adoption of IFRS16 from FY2020 boosted business profit by ¥0.2bln and operating profit by ¥0.2bln.

16

Group: Balance Sheet (end Nov. 2019)

Billions of Yen

End Nov.

End Aug.

End Nov.

Change

2018

2019

2019

Total Assets

2,031.7

2,010.5

2,528.2

+496.5

Current Assets

1,692.0

1,638.1

1,776.0

+83.9

Non-Current

339.6

372.3

752.2

+412.5

Assets

Total Liabilities

1,050.4

1,027.0

1,494.0

+443.5

Total Equity

981.2

983.5

1,034.2

+52.9

In relation to the adoption of IFRS16 from FY2020, the total assets figure at the end of November 2019 included ¥389.8bln in right-of-use assets (A new category resulting from the introduction of IFRS16 that estimates the value of rights involving leases).

17

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

Current assets: +¥83.9bln (¥1.6920trln¥1.7760trn)

  • Cash and cash equivalents: +¥135.9bln(¥979.0bln¥1.1150trln)

Increased operating cash flow from UNIQLO and other business segments.

  • Inventory assets:-¥28.2bln (¥452.8bln¥424.6bln)

Early rundown of Group-wide inventory, stronger order progress management UQ Japan: -¥25.9blnUQ Intl.: ±¥0.0bln GU: +¥:2.2bln Global Brands: -¥4.7bln

  • Derivative financial assets:-¥39.3bln (¥56.3bln¥16.9bln)

While the average yen rate on our forward contract holdings and the end-November yen spot rate both appreciated, the gap between the two shrank, resulting in a ¥13.1bln decline in derivative financial assets.

Non-current assets: +¥412.5bln ¥339.6bln¥752.2bln)

  • Right-of-useassets: +¥389.8bln(¥389.8bln)

Resulting from adoption of IFRS16.

  • Derivative financial assets: +¥26.1bln (¥26.1bln)

Liabilities +¥443.5bln (¥1.0504trln¥1.4940trln)

Lease liabilities: +¥443.5bln (¥443.5bln)

Recorded lease liabilities (short and long-term) following the adoption of IFRS16.

18

Group: 1Q Cash Flow

Dividend payments -¥24.4bln

+¥28.5bln YTD

+¥97.6bln

−¥33.2bln

−¥56.6bln

¥1.0865trln

+¥20.7bln

¥1.1150trln

Cash used in

Cash flow from

Cash used in

Effect of

investing

operating

activities

financing

exchange rate

activities

activities

changes on

cash and cash

equivalents

Opening balance of

Acquisition of property, plant and equipment -¥14.1bln

Closing balance of

(new stores, Ariake office, etc.)

cash and cash

Bank deposits with original maturity over 3 months -¥9.1bln

cash and cash

equivalents

equivalents

Capital expenditure ¥23.6bln

UQ Japan: ¥3.7bln (new stores)

UQ Intl: ¥7.9bln (new stores), GU:¥2.0bln (new stores)

Global Brands: ¥0.5bln (new stores)

Systems, etc.: ¥9.4bln (IT, Ariake office, etc.)

September 1, 2019

November 30, 2019

Adoption of IFRS16 increased cash flow from operating activities by approx. ¥30.0bln and decreased

cash used in financing activities by approx. ¥30.0bln. This change in accounting standards had no

impact on final cash flow figure.

19

Group: FY2020 Estimates

Revised down

Downward revisions: Revenue: ¥60.0bln, operating profit: ¥30.0bln, profit attributable to owners of the parent: ¥10.0bln

Reflects underperformance in 1Q and December but also uncertain immediate environments in South Korea and Hong Kong, resulting in a downward revision in initial 2H estimate for UNIQLO International.

UNIQLO Japan, GU, Global Brands 2H forecasts remain unchanged.

Yr to Aug. 2019

Yr to Aug. 2020

Yr to Aug. 2020

Yr to Aug. 2020

Actual

Estimates

Estimates

1Q Actual

(as of Oct.10)

(as of Jan.9)

y/y

y/y

Revenue

2,290.5

2,400.0

+4.8%

2,340.0

+2.2%

623.4

(to revenue)

100.0%

100.0%

100.0%

100.0%

Business profit

265.1

280.0

+5.6%

250.0

-5.7%

88.8

(to revenue)

11.6%

11.7%

+0.1p

10.7%

-0.9p

14.2%

Other income, expenses

-7.5

-5.0

-

-5.0

-

2.8

Operating profit

257.6

275.0

+6.7%

245.0

-4.9%

91.6

(to revenue)

11.2%

11.5%

+0.3p

10.5%

-0.7p

14.7%

Finance income, costs

-5.1

0.0

-

0.0

-

10.3

Profit before income taxes

252.4

275.0

+8.9%

245.0

-2.9%

102.0

(to revenue)

11.0%

11.5%

+0.5p

10.5%

-0.5p

16.4%

Profit attributable to owners

162.5

175.0

+7.6%

165.0

+1.5%

70.9

of the parent

(to revenue)

7.1%

7.3%

+0.2p

7.1%

-

11.4%

Includes an approximate 1.5% boost to business profit and an approximate 2% boost to operating profit resulting from the adoption of IFRS16 from FY2020.

Billions

of Yen

20

FY2020 Estimates by Group Operation(1)

UNIQLO Intl: Expect full-year revenue rise, profit fall

UNIQLO Intl: Expect 1H revenue rise, sharp profit fall, 2H revenue rise, profit fall.

Greater China: Forecast slight full-year profit decline on sharp profit fall in Hong Kong and an approximate 8% downward impact from weaker yuan.

  • Strip out forex impact and we expect both revenue and profit to rise.
  • Mainland China and Taiwan to generate further favorable results, andfull-year revenue and profit gains.

South, Southeast Asia & Oceania: Expect further strong results and double-digit growth in 2H and full-year revenue and profit.

South Korea: Expect sharp revenue and profit falls, and to report a full-year loss.

Europe: Expect full-year revenue and profit gains. North America: Looks set to turn a profit this year.

Envisaged Future Operating Profit Trend by Business Segment

UNIQLO International

UNIQLO Japan

GU

Global Brands

2017

2018

2019

2020 E

2017

2018

2019

2020 E

2017

2018

2019

2020 E

2017

2018

2019

2020 E

21

FY2020 Estimates by Group Operation(2)

UNIQLO Japan: Expect full-year revenue, profit gains

1H: Even if revenue falls, expect operating profit to rise on improved gross margin.

2H: Expect revenue and profit to rise, and gross profit margin to improve slightly on lower cost of sales and controlled discounting. Expect lower distribution cost ratio on more appropriate inventories, and lower personnel ratio as the introduction of RFID tags and self-checkouts boost store efficiency.

GU: Expect higher revenue and profit

1H: Expect revenue and profit to rise.

2H: Expect further strong sales but only a slight rise in profit compared to the

previous year's strong 8 point improvement in the gross profit margin.

Full-year: Expect revenue and profit to rise.

Continue to focus on mass-trend fashion but also further strengthen image as fun fashion brand at amazingly low prices by expanding GU's range of low-priced items (790 yen or 990 yen) for young consumers from Spring Summer season.

Global Brands: Expect revenue and profit to rise

1H: Expect profit to decline. 2H: Predicted revenue, profit gains seen generating higher full-year revenue and profit.

Theory, PLST revenue, profit seen rising, Comptoir des Cotonniers loss shrinking. 22

Reference: Main Impact of IFRS16 Adoption

Consolidated Statement of Profit and Loss

1Q business profit approximately ¥0.9bln higher and operating profit approximately ¥1.2bln higher due to the recording of depreciation and interest expenses respectively instead of rental expenses.

FY2020 1Q

(Calculated using

Billions

previous standard)

of Yen

SG&A

225.0

Rental expenses

51.9

Depreciation

12.1

Business profit

87.8

Other income, expenses

2.5

Operating profit

90.3

Interest expenses

1.0

Profit before income taxes

101.5

FY2020 1Q

(Calculated using

Billions

IFRS16)

of Yen

SG&A

224.0

Rental expenses

20.3

Depreciation

43.0

Business profit

88.8

Other income, expenses

2.8

Operating profit

91.6

Interest expenses

1.8

Profit before income taxes

102.0

23

Reference:GroupCompanyStoreNumbers

[Units: Stores]

FY2019

FY2020 1Q Result (Sep. - Nov.)

FY2020 Estimates (Sep. - Aug.)

Yr-end

Open

Close

Change

End Nov.

Open

Close

Change

End Aug.

UNIQLO Operations

2,196

81

28

+53

2,249

195

61

+134

2,330

UNIQLO Japan

817

19

19

0

817

30

30

0

817

Own stores

774

16

19

-3

771

-

-

-

-

Large-scale

230

10

5

+5

235

-

-

-

-

Standard and others

544

6

14

-8

536

-

-

-

-

Franchise stores

43

3

0

+3

46

-

-

-

-

UNIQLO International

1,379

62

9

+53

1,432

165

31

+134

1,513

Mainland China

711

28

1

+27

738

100

-

-

-

Hong Kong

29

1

0

+1

30

-

-

Taiwan

67

2

1

+1

68

-

-

Korea

188

4

6

-2

186

6

-

-

-

Singapore

28

0

0

0

28

-

-

Malaysia

49

2

0

+2

51

-

-

Thailand

50

1

0

+1

51

-

-

Philippines

58

3

0

+3

61

40

-

-

-

Indonesia

26

6

0

+6

32

-

-

Australia

20

1

0

+1

21

-

-

Vietnam

0

0

0

0

0

-

-

India

0

2

0

+2

2

-

-

USA

51

2

1

+1

52

4

-

-

-

Canada

11

1

0

+1

12

-

-

UK

13

2

0

+2

15

-

-

France

24

0

0

0

24

-

-

Russia

37

4

0

+4

41

-

-

Germany

9

0

0

0

9

-

-

Belgium

3

0

0

0

3

15

-

-

-

Spain

2

2

0

+2

4

-

-

Sweden

1

0

0

0

1

-

-

The Netherlands

1

0

0

0

1

-

-

Denmark

1

0

0

0

1

-

-

Italy

0

1

0

+1

1

-

-

GU

421

19

2

+17

438

37

15

+22

443

Global Brands

972

13

6

+7

979

39

48

-9

963

Theory

451

7

0

+7

458

-

-

-

-

PLST

101

5

0

+5

106

-

-

-

-

Comptoir des Cotonniers

296

1

5

-4

292

-

-

-

-

Princesse tam.tam

124

0

1

-1

123

-

-

-

-

Total

3,589

113

36

+77

3,666

271

124

+147

3,736

24

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

Includes franchise stores

Reference: Foreign Exchange Rates

Exchange rates used in consolidated accounts

Yen

1USD

1EUR

1GBP

1RMB

100KRW

FY2019 1Q

3-month average to Nov. 2018

112.6

130.0

145.7

16.3

10.0

FY2020 1Q

3-month average to Nov. 2019

107.8

119.0

134.3

15.2

9.1

FY2019

12-month average to Aug. 2019

110.9

125.9

142.3

16.2

9.7

FY2020 (E)

12-month average to Aug. 2020

109.0

123.0

143.0

14.8

9.6

Exchange rates used on balance sheet

Yen

1USD

1EUR

1GBP

1RMB

100KRW

FY2019 1Q

Exchange rate at end Nov. 2018

113.5

129.2

145.0

16.4

10.1

FY2020 1Q

Exchange rate at end Nov. 2019

109.6

120.6

141.5

15.6

9.3

FY2019

Exchange rate at end Aug. 2019

106.4

117.6

129.6

14.8

8.8

FY2020 (E)

Exchange rate at end Aug. 2020

106.4

117.6

129.6

14.8

8.8

25

Reference: Capex, Depreciation

Capex (Incl. Finance Leases) and Depreciation

Billions of Yen

Capex

Depreciation

UNIQLO

UNIQLO

GU

Global

Systems,

Total

Japan

Intl.

Brands

etc

FY2019

1Q 3 months

5.0

9.4

2.4

0.9

6.3

24.3

11.9

FY2020

1Q 3 months

3.7

7.9

2.0

0.5

9.4

23.6

43.0

FY2019

Full-year 12 months

13.6

31.6

9.0

2.7

28.0

85.2

48.4

FY2020 (E) Full-year 12 months

7.8

35.1

7.4

3.5

46.3

100.1

163.7

We have incorporated depreciation costs of approximately ¥110.0bln following the adoption of IFRS16 from FY2020. This approximate ¥110.0bln is recorded as depreciation costs relating to right-of-use assets.

26

Disclaimer

Fast Retailing Co. Ltd. published this content on 09 January 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 09 January 2020 08:42:02 UTC

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NameTitle
Tadashi Yanai Chairman, President & Group CEO
Takeshi Okazaki CFO, Director & Group Senior Executive Officer
Masaaki Shintaku Independent Outside Director
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