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

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)	P3～P19
ＩＩ．Estimates for Fiscal 2020	P20～P22
ＩＩＩ．Reference	P23～P26

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. Australia・Revenue 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

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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.

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