Fast Retailing : First-half Results for September 2019 to February 2020, and Estimates for FY2020

April 9, 2020

Fast Retailing First-half

Results for September 2019

to February 2020, and Estimates for FY2020

Takeshi Okazaki

Fast Retailing Co., Ltd.

Group Executive Vice President & CFO

1

	Contents
Ｉ．FY2020 First-half Business Results	P3～P19
ＩＩ．Estimates for FY2020	P20～P29
ＩＩＩ．Reference materials	P30～P33

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:	UNIQLO Japan operations
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 1H Results

Revenue, profit down. Significantly below plan

Yr to Aug. 2019	Yr to Aug. 2020
(6 mths to Feb.2019)	(6 mths to Feb.2020)		y/y
Actual	Actual

Revenue	1,267.6	1,208.5	-4.7%
(to revenue)	100.0%	100.0%	-
Gross profit	606.7	576.7	-4.9%
(to revenue)	47.9%	47.7%	-0.2p
SG&A	433.4	438.7	+1.2%
(to revenue)	34.2%	36.3%	+2.1p
Business profit	173.3	137.9	-20.4%
(to revenue)	13.7%	11.4%	-2.3p
Other income, expenses	-0.3	-1.2	-
(to revenue)	-	-	-
Operating profit	172.9	136.7	-20.9%
(to revenue)	13.6%	11.3%	-2.3p
Finance income, costs	1.2	14.1	-
(to revenue)	0.1%	1.2%	+1.1p
Profit before income taxes	174.2	150.8	-13.4%
(to revenue)	13.7%	12.5%	-1.2p
Profit attributable to	114.0	100.4	-11.9%
owners of the parent
(to revenue)	9.0%	8.3%	-0.7p

Billions of

Yen

*Adoption of IFRS16 from FY2020 increased business profit by ¥3.2bln, decreased operating profit by ¥0.6bln. 3

Group: FY2020 1H Operating Profit

Revenue

¥1.2676trln→ ¥1.2085trln (-¥59.1bln)

UQ Japan	-¥27.7bln
UQ International	-¥38.7bln
GU	+¥15.0bln

Average forex impact approx. -4% y/y

USD-3%

EUR-7%

RMB-5%

KRW-8%

Gross profit margin

SG&A ratio

¥1.2085trln

47.9%→ 47.7% (-0.2p)

34.2%→36.3% (+2.1p)

1Q

2Q

1H

1Q

2Q

1H

-4.7%

Group -0.2p

-0.1p

-0.2p

Group +1.5p

+2.7p

+2.1p

UQ Japan +2.3p	+2.0p	+2.2p	UQ Japan +1.0p	+0.1p	+0.5p
UQ Intl.	-3.0p	-1.6p	-2.3p	UQ Intl.	+1.4p	+3.2p	+2.3p
GU	+3.2p	-3.1p	+0.4p	GU	-0.7p	+2.0p	+0.5p

¥576.7bln ¥438.7bln

-4.9% +1.2%

• Foreign exchange gain of ¥3.5bln, mainly related to temporary advances paid for purchases by overseas subsidiaries
  Sep. 1, 2019 1USD=106.4JPY Feb. 29, 2020 1USD=109.5JPY

• Impairment loss ¥5.4bln, mainly onright-of-use assets at UNIQLO International stores

¥137.9bln

-¥1.2bln

¥136.7bln

-20.4%

-20.9%

SG&A

Other

income/expenses

FY2020 1H

FY2020 1H

FY2020 1H

FY2020 1H

Revenue

Gross profit

Business

Operating

profit

profit

4

Group: FY2020 1H	Profit Attributable to
Owners of the Parent

Value of foreign-currency denominated assets increased by ¥12.1bln

Interest income & expenses: +¥1.9bln

		¥150.8bln
¥136.7bln	¥14.1bln	-13.4%	¥47.4bln
-20.9%
	Net finance			¥103.4bln
	income				¥100.4bln
				-17.2%	¥2.9bln
				-11.9%
			Income taxes		Non-controlling
					assets
FY2020 1H		FY2020 1H		FY2020 1H		FY2020 1H
Operating		Profit before		Profit for the		Profit
profit		income taxes		period		attributable to

owners of the

parent

5

1H Breakdown by Group Operation

		Yr to Aug. 2019	Yr to Aug. 2020	Billions
		(6 mths to Feb.2019)	(6 mths to Feb.2020)	y/y	of Yen
		Actual	Actual
	Revenue	491.3	463.5	-5.7%
	Business profit	67.6	71.0	+5.1%
UNIQLO Japan	(to revenue)	13.8%	15.3%	+1.5p
Other income, expenses	0.1	0.5	+391.9%
	Operating profit	67.7	71.6	+5.7%
	(to revenue)	13.8%	15.5%	+1.7p
	Revenue	580.0	541.2	-6.7%
	Business profit	88.6	58.0	-34.6%
UNIQLO International	(to revenue)	15.3%	10.7%	-4.6p
Other income, expenses	-0.1	-4.7	-
	Operating profit	88.4	53.2	-39.8%
	(to revenue)	15.3%	9.8%	-5.5p
	Revenue	117.1	132.2	+12.9%
	Business profit	14.1	15.6	+11.0%
GU	(to revenue)	12.0%	11.8%	-0.2p
Other income, expenses	0.0	0.1	-
	Operating profit	14.1	15.8	+12.0%
	(to revenue)	12.1%	12.0%	-0.1p
	Revenue	77.7	70.1	-9.8%
	Business profit	3.2	0.9	-70.4%
Global Brands	(to revenue)	4.2%	1.4%	-2.8p
Other income, expenses	-0.1	-0.2	-
	Operating profit	3.1	0.7	-76.3%
	(to revenue)	4.0%	1.1%	-2.9p

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

6

UNIQLO Japan: 1H Overview

Revenue down but profit up slightly on improved gross profit margin

・1H revenue down as warm winter stifled Winter clothing sales. Below plan.

・Operating profit up slightly as gross profit margin improved, and SG&A fell y/y. However, the operating profit result was slightly below plan.

	Yr to Aug. 2019	Yr to Aug. 2020	Billions
	(6 mths to Feb.2019)	(6 mths to Feb.2020)		of Yen
	y/y
	Actual	Actual
Revenue	491.3	463.5	-5.7%
(to revenue)	100.0%	100.0%	-
Gross profit	224.1	221.4	-1.2%
(to revenue)	45.6%	47.8%	+2.2p
SG&A	156.5	150.3	-4.0%
(to revenue)	31.9%	32.4%	+0.5p
Business profit	67.6	71.0	+5.1%
(to revenue)	13.8%	15.3%	+1.5p
Other income, expenses	0.1	0.5	+391.9%
(to revenue)	0.0%	0.1%	+0.1p
Operating profit	67.7	71.6	+5.7%
(to revenue)	13.8%	15.5%	+1.7p

*Adoption of IFRS16 from FY2020 boosted business profit by ¥1.6bln and operating profit by ¥1.3bln.

7

UNIQLO Japan: 1H Revenue

1H same-store sales -4.6% (1Q: -4.1%, 2Q: -5.1%)

・1H same-store sales declined as warm weather weakened demand for cold-weather clothing, stifled sales of core Winter ranges.

・February same-store sales up on favorable launch of Spring ranges and additional leap-year shopping day. Strong-selling Spring items included jackets, mountain parkas and other lightweight jackets, trendy long skirts, wide pants, our new Miracle Air 3D jeans and Slouch tapered ankle jeans. Our new UNIQLO U ranges launched February 21 sold well, and our AIRism cotton crew neck oversized T-shirts and crewneck T-shirts also contributed to sales.

・1H EC sales: ¥52.5bln (+8.3%). Upward trend subdued by warm winter.

・March same-store sales down 27.8% y/y as COVID-19 impacted operations.

					Yr to Aug. 2020
Same-store sales
3 mths to	Dec.	Jan.		Feb.	3 mths to	6 mths to	Mar.
		Nov. 2019		Feb. 2020	Feb. 2020
Net sales	-4.1%	-5.3%	-7.9%		+0.8%	-5.1%	-4.6%	-27.8%
	Customer visits	+0.4%	-2.2%	-5.1%		-0.1%	-2.8%	-1.2%	-32.4%
	Customer spend	-4.5%	-3.1%	-2.9%		+0.8%	-2.4%	-3.5%	+6.9%

8

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

Gross profit margin 47.8% (+2.2p y/y)

In line with plan

・Cost of sales improved markedly on appreciation in yen exchange rates for merchandise purchasing.

・Slightly higher y/y discounting on early rundown of sluggish-selling Fall Winter ranges. ・Stronger order progress management. End February inventory down ¥25.8bln.

SG&A ratio 32.4% (+0.5p y/y)

SG&A down y/y and v. plan in monetary terms

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

・Stripping out the IFRS16 effect, personnel, depreciation, store rents, and advertising and promotion declined y/y in monetary terms. Distribution flat y/y.

• Personnel costs down on RFID tags and other efforts to boost store efficiency.
• Depreciation costs declined as a ratio to net sales as the impact of accelerated depreciation (shorter depreciation period) of some materials handling for the Ariake Warehouse in FY2019 disappeared.
• Advertising costs down on review of novelty item creation and frequency.
• Distribution costs flat y/y in monetary terms.Store-related distribution costs down

sharply on lower inventory but delivery costs up on higher EC sales.

9

UNIQLO International: 1H Overview

Below plan. Large falls in revenue and profit

・South Korea and Greater China revenue and profit declined sharply on COVID-19 and other factors.

・South, Southeast Asia & Oceania (Southeast Asia, Australia, and India) achieved double-digit growth in revenue and profit.

・Europe generated double-digit growth in revenue and profit on strong performances from newly opened stores.

・Gross profit margin down 2.3 points on determined inventory rundown across all

markets. SG&A ratio up 2.3 points on lower-than-planned sales.

	Yr to Aug. 2019	Yr to Aug. 2020
	(6 mths to Feb.2019)	(6 mths to Feb.2020)	y/y
	Actual	Actual
Revenue	580.0	541.2	-6.7%
(to revenue)	100.0%	100.0%	-
Gross profit	295.1	263.2	-10.8%
(to revenue)	50.9%	48.6%	-2.3p
SG&A	206.4	205.2	-0.6%
(to revenue)	35.6%	37.9%	+2.3p
Business profit	88.6	58.0	-34.6%
(to revenue)	15.3%	10.7%	-4.6p
Other income, expenses	-0.1	-4.7	-
(to revenue)	-	-	-
Operating profit	88.4	53.2	-39.8%
(to revenue)	15.3%	9.8%	-5.5p

Billions of

Yen

*Adoption of IFRS16 from FY2020 increased business profit by ¥1.0bln, decreased operating profit by ¥2.3bln.10

UNIQLO International: 1H by Region (1)

Greater China: Revenue down, OP down sharply

・Revenue considerably below plan primarily due to temporary closure of some Mainland China stores linked to COVID-19 from end January.

・As a result, gross profit margin down 2.0 points y/y, SG&A ratio up 1.5 points y/y. MAINLAND CHINA: Revenue down slightly, operating profit down sharply

・Same-store sales continued strong through late January, but sales then declined rapidly at the end of January following the spread of COVID-19.

・Closed stores temporarily mainly in Wuhan from January 23. Temporarily closed up to 395 stores in February. February same-store sales slumped by approximately 80% y/y. Overall first-halfsame-store sales down slightly y/y.

・Gross profit margin down on stronger discounting, SG&A ratio up as increased inventory pushed distribution costs higher.

・EC sales down approx. 20% in February, but up approx. 20% y/y in 1H. ・Mainland China same-store sales and EC started to recover in March. HONG KONG: Falls short of plan. Revenue and profit down

・Same-store sales down sharply as ongoing protests, February COVID-19 impact knocked customer visits lower.

TAIWAN: Revenue down, profit up

・Strong November 2019 Singles Day, UNIQLO anniversary, Chinese New Year sales, but February COVID-19 impact caused 1H same-store sales to dip slightly.

・Operating profit increased on stronger cost controls.

11

UNIQLO International: 1H by Region (2)

S. Korea: Revenue tumbles, operating loss exceeds plan

・First-halfsame-store sales came in below plan and sharply lower on ongoing Japan-Korea tensions since July 2019 and COVID-19 impact from February 2020.

S., SE Asia, Oceania: To plan. Double-digit revenue, OP gain

・Double-digit 1H revenue, profit growth despite COVID-19 impact in Singapore, Malaysia, Thailand from February.

SE ASIA: Double-digit growth in revenue and profit

・Strong double-digit revenue, profit growth in Indonesia, the Philippines, and Thailand.

・Strong sellers: UT T-shirts, leggings, jeans and other Summer items, flannel shirts along with HEATTECH and other Fall Winter ranges.

・Sales of first Vietnam store (opened Dec. 2019) above plan. Customers appreciated UV-cut mesh parkas, DRY-EX polo shirts and other items suited to the local climate. Opened second store in Hanoi in March 2020.

INDIA: Strong results from first stores (opened Oct. 2019)

・Opened third store in New Delhi in February. Cold-weather Winter items, UT T-shirts, and traditional Indian kurta everyday wear sold well.

Kurta Collection: The first joint
collection with Indian designer
Rina Singh	12

UNIQLO International: 1H by Region (3)

N. America: Below plan. Revenue up, profit down

USA: Falls short of plan. Reports an operating loss

・Gross profit margin down on wider discounting as warm winter weather stifled sales of Winter ranges.

Canada: Revenue and profit up

・EC sales strong, added 3 stores y/y.

Europe: Double-digit revenue, profit growth

・Strong sales trend continued with same-store sales up and EC sales rising approx. 30% y/y.

・Strong cost controls, SG&A ratio down, resulting in a large rise in operating profit.

・Strong sales from Italy (first entered in September 2019) and Spain (added 2 new stores in first half).

・Despite double-digit revenue gain and strong sales, rising cost of sales on the forex effect resulted in a slight decline in profit in Russia.

UNIQLO Serrano Madrid store opened in Spain in October 2019

13

GU: 1H Overview

Reports large revenue, profit gains as planned

・Same-store sales rose 3.8% as on-the-markmass-trend knitwear and lightweight outerwear, which was better suited to the warm winter weather, proved a hit.

・Gross profit margin (+0.4p): Strong sales, lower cost of sales on concentrated materials purchasing and early submission of orders.

・SG&A ratio (+0.5p): In line with plan.

	Yr to Aug. 2019	Yr to Aug. 2020
	(6 mths to Feb.2019)	(6 mths to Feb.2020)	y/y
	Actual	Actual
Revenue	117.1	132.2	+12.9%
(to revenue)	100.0%	100.0%	-
Gross profit	56.3	64.1	+13.7%
(to revenue)	48.1%	48.5%	+0.4p
SG&A	42.2	48.4	+14.6%
(to revenue)	36.1%	36.6%	+0.5p
Business profit	14.1	15.6	+11.0%
(to revenue)	12.0%	11.8%	-0.2p
Other income, expenses	0.0	0.1	-
(to revenue)	0.0%	0.1%	+0.1p
Operating profit	14.1	15.8	+12.0%
(to revenue)	12.1%	12.0%	-0.1p

Billions of

Yen

*Very little impact from the adoption of IFRS16 from FY2020.	14

GU: 1H Overview

Knitwear that perfectly matched mass-trend needs and lightweight outerwear that was better suited to warm winter weather proved a hit

・GU's women's fashion perfectly gauged knitwear and woven haori jacket trends. Successful campaigns for knitwear cardigans and matching knitted top and bottom sets. Full range of lightweight outerwear suitable for warm winter weather.

• Hit products: Cocoon cardigans, knitted top and bottom sets, boa outerwear

Great mid-season planning of strong-selling items

・Planning development teams analyze trends and provide firm direction to develop great mid-season product planning.

・Establish systems to determine on-trend materials, procure them early, and make products quickly.

・Hit products: Sweatshirt-like knitwear (knitted sweaters with easy-to-wear, smooth sweatshirt feel)

Reflect customer opinion to improve staple items

・Create big hit products selling over 1 million units by incorporating user reviews and store-staff opinions to improve products.

・Hit products: Sweatwear, marshmallow pumps, K's comfy pants

Marshmallow pumps: Impact-reducing, cushioned lining offers ultimate foot comfort. A total of 1.7 million pairs have been sold at the low price of 2,490 yen (ex. tax)

15

Global Brands: 1H Overview

Below plan. Large decline in profit

Theory: Revenue and profit decline

・First-halfsame-store sales declined sharply after sales of Winter items such as outerwear and sweaters struggled during the warm winter weather in both Japan and the United States, and customer numbers declined in Japan in February following the spread of COVID-19.

・Gross profit margin declined on stronger discounting. PLST: Revenue flat, operating profit lower

・Revenue flat y/y after warm winter weather stifled sales of cold-weather items. ・Gross profit margin dropped on more determined rundown of inventory. Comptoir des Cotonniers: Operating loss steady y/y

			Billions of Yen
		Yr to Aug. 2019	Yr to Aug. 2020
		(6 mths to Feb.2019)	(6 mths to Feb.2020)	y/y
		Actual	Actual
	Revenue	77.7	70.1	-9.8%
	Business profit	3.2	0.9	-70.4%
Global Brands	(to revenue)	4.2%	1.4%	-2.8p
Other income, expenses	-0.1	-0.2	-
	Operating profit	3.1	0.7	-76.3%
	(to revenue)	4.0%	1.1%	-2.9p
*Adoption of IFRS16 from FY2020 boosted business profit by ¥0.5bln and operating profit by ¥0.3bln.	16

Group: Balance Sheet (end Feb. 2020)

Billions of Yen

	End Feb.	End Aug.	End Feb.	Change
	2019	2019	2020
Total Assets	2,015.2	2,010.5	2,454.2	+439.0

Current Assets	1,666.3	1,638.1	1,702.3	+36.0
Non-Current	348.8	372.3	751.9	+403.0
Assets
Total Liabilities	1,005.7	1,027.0	1,389.5	+383.7
Total Equity	1,009.4	983.5	1,064.7	+55.3

*In relation to the adoption of IFRS16 from FY2020, the total assets figure at the end of February 2020 included ¥390.2bln 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 Feb. 2019

Current assets: +¥36.0bln (¥１.6663trln⇒¥１.7023trln)

・Cash and cash equivalents: +¥73.2bln (¥1.1110trln⇒¥1.1843trln)

Increased operating cash flow from UNIQLO and other business segments.

・Inventory assets: -¥25.1bln (¥379.1bln⇒¥353.9bln)

Spring Summer and other inventory down on stronger order control primarily at UQ Japan. Winter inventory slightly bloated, but mainly regular core items so not a problem.

Within UQ Intl., Mainland China inventory up on COVID-19 impact.

UQ Japan: -¥25.8blnUQ Intl.: +¥7.4bln GU: -¥0.1blnGlobal Brands: -¥6.6bln

・Derivative financial assets: -¥17.3bln (¥38.4bln⇒¥21.1bln)

While the average yen rate on our forward contract holdings and the end-February yen spot rate both appreciated, the gap between the two shrank, resulting in a ¥10.5bln increase in derivative financial assets.

Non-current assets: +¥403.0bln (¥348.8bln⇒¥751.9bln)

・Right-of-use assets: +¥390.2bln (－⇒¥390.2bln) Adoption of IFRS16.

・Derivative financial assets: +¥27.9bln (－⇒¥27.9bln)

Liabilities: +¥383.7bln (¥１.0057trln⇒¥１.3895trln)

・Lease liabilities: +¥444.3bln (－⇒¥444.3bln)

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

18

Group: 1H Cash Flow

Dividend payments -¥24.4bln

+¥97.7bln YTD

+¥236.6bln

-¥58.8bln

-¥99.1bln

+¥19.1bln

¥1.1843trln

¥1.0865trln

Cash used in

investing

Cash used in

Effect of

activities

Cash flow from

financing

exchange rate

operating activities

activities

changes on

cash and cash

equivalents

Opening balance of

cash and cash

equivalents

• Acquisition of property, plant and equipment-¥23.8bln (new stores, Ariake office, etc.)
  ・Term deposits -¥20.2bln

Capital expenditure ¥41.9bln

・UQ Japan: ¥6.9bln (new stores, etc.)

・UQ Intl: ¥13.0bln (new stores, etc.)

・GU:¥4.5bln (new stores, new POS systems)

・Global Brands: ¥1.5bln (new stores)

・Systems, etc.: ¥15.7bln (IT, Ariake office, etc.)

Closing balance of

cash and cash

equivalents

September 1, 2019February 29, 2020

* Adoption of IFRS16 increased cash flow from operating activities by approx. ¥62.0bln and decreased

cash used in financing activities by approx. ¥62.0bln. This change in accounting standards had no
impact on final cash flow figure.	19

Group: FY2020 Estimates

Revised down

・Difficult to calculate accurate full-year business estimates as cannot rationally predict when COVID-19 will run its course in individual markets.

・Estimates based on March results and assumption that COVID-19 will run its course towards the end of the second half of FY2020 (March to August 2020).

・May revise business estimates again depending on global COVID-19 resolution.

Yr to Aug. 2019	Yr to Aug. 2020	Yr to Aug. 2020	Yr to Aug. 2020 Billions
	Estimates		Estimates		of Yen
Actual	(as of Jan.9)		(as of Apr.9)		1H Actual
y/y	y/y

Revenue	2,290.5	2,340.0	+2.2%	2,090.0	-8.8%	1,208.5
(to revenue)	100.0%	100.0%		100.0%			100.0%
Business profit	265.1	250.0	-5.7%	150.0	-43.4%	137.9
(to revenue)	11.6%	10.7%	-0.9p	7.2%	-4.4p		11.4%
Other income, expenses	-7.5	-5.0	-	-5.0	-		-1.2
Operating profit	257.6	245.0	-4.9%	145.0	-43.7%	136.7
(to revenue)	11.2%	10.5%	-0.7p	6.9%	-4.3p		11.3%
Finance income, costs	-5.1	0.0	-	0.0	-		14.1
Profit beforeincome taxes	252.4	245.0	-2.9%	145.0	-42.6%	150.8
(to revenue)	11.0%	10.5%	-0.5p	6.9%	-4.1p		12.5%
Profit attributable to owners	162.5	165.0	+1.5%	100.0	-38.5%	100.4
of the parent
(to revenue)	7.1%	7.1%	-	4.8%	-2.3p	8.3%

*Includes an approximate 3.5% boost to business profit and an approximate 1.5% boost to operating profit	20
resulting from the adoption of IFRS16 from FY2020.

FY2020 2H Revenue Estimates

・Predictions for year-on-year changes in second-half revenue based on latest circumstances.

・Assumption: Revenue will continue to fall sharply in April and May and then business will gradually return to normal from June onwards.

• Table ofYear-on-year Revenue Changes

		Actual	Assumption
		Mar.	Apr. ~ May	Jun. ~ Aug.
UNIQLO Japan	Japan	-28%	-30% ~ -10%	-10% ~ -5%
	Greater China	-40%	-40% ~ -10%	-10% ~ ±0%
UNIQLO International	South Korea,	-50%	-70% ~ -40%	-40% ~ ±0%
South, Southeast Asia & Oceania
	North America, Europe	-50%	-70% ~ -50%	-40% ~ ±0%
GU	Japan	-1%	-5% ~ ±0%	-5% ~ +5%
Global Brands	Theory	-55%	-90% ~ -50%	-30% ~ -5%

*March results for UNIQLO Japan and GU are confirmed. March results for UNIQLO International and Global Brands are approximate figures.

21

FY2020 Estimates by Group Operation(1)

UNIQLO Intl.: Large revenue, profit fall in 2H, FY2020

GREATER CHINA: Expect large 2H revenue, profit decline despite signs that COVID-19 is being brought under control in Mainland China

・Roughly half Mainland China stores were temporarily closed in February, revenue declined 80% y/y, and the operation posted a large loss in February.

・Sales recovering weekly in March after government announced COVID-19 was under control. Since March 22, same-store sales have recovered to 30% below previous year's levels. Spring ranges selling well.

・Successful efforts to convey product information on social media, expand delivery of online purchases directly from physical stores, and further meld EC and physical stores. March EC sales, including online-to-offline (O2O), held steady y/y.

・Currently, only 5 stores still temporarily closed in Mainland China.

・No stores temporarily closed in Hong Kong or Taiwan, but some stores are operating reduced hours. March sales fell sharply on low consumer confidence.

S. KOREA: Expect large falls in 2H and FY2020 revenue and profit

・No temporary store closures, but we expect full-year operating loss will expand beyond recent estimates as Japan-Korea tensions and COVID-19 dampen consumer sentiment.

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FY2020 Estimates by Group Operation(2)

SOUTH, SOUTHEAST ASIA & OCEANIA: Expect 2H revenue and profit to decline

・Southeast Asia sales trend strong through early March, especially in Indonesia and the Philippines.

・Situation changing rapidly from mid-March due to restrictions on outdoor activities and actions, and voluntarily social distancing.

・Currently 244 stores in the region have been temporarily closed, including:

all 28 stores in Singapore from April 7, all 49 stores in Malaysia from March 18, a maximum of all 50 stores in Thailand since March 22, all 60 stores in the Philippines from March 16, all 30 stores in Indonesia from March 27,

our 3 stores in India from March 20, our 2 stores in Vietnam from March 28, and all 22 stores in Australia from April 2, 2020.

NORTH AMERICA: Expect 2H, FY2020 operating loss to expand considerably

・March sales dropped sharply as all 62 stores in USA and Canada were temporarily closed on March 17. All stores remain closed at this point in time.

EUROPE: Expect operation to post a 2H and FY2020 operating loss

・We temporarily closed UNIQLO stores in all European countries from mid- March on governmental request, with the exception of Sweden.

・Sharp fall in March revenue with 97 out of 98 stores closed.

・The same number of stores remain closed at this point in time.

EC: Continues to operate as normal, except in Malaysia

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FY2020 Estimates by Group Operation(3)

UQ Japan: Expect revenue, profit fall in 2H, FY2020

・March customer visits fell sharply and same-store sales declined 27.8% after approx. 260 stores operated shorter hours in March and 63 stores (mainly in the Tokyo area) closed temporarily over the March 28/29 weekend.

・Following the declaration of a state of emergency, we decided to temporarily close stores in bustling shopping areas such as Ginza, Shibuya, Ikebukuro, Umeda, Shinsaibashi along with stores in large commercial complexes. All stores will operate shorter hours.

GU: Expect slight dip in sales, lower OP in 2H Expect revenue to rise, profit to fall in FY2020

・GU Japan same-store sales fell approx. 9% in March. Data was strong through third week of March, but customer visits fell sharply on COVID-19 in final week.

・Favorable launch of Spring ranges in March with our A-line dresses, launched as Muteki dresses in our TV ads, proving especially popular. Our low-priced sweatwear, airy shirts and men's broad shirts also sold well.

・Following the declaration of a state of emergency, we decided to temporarily close stores in bustling shopping areas such as Ginza, Shibuya, Ikebukuro, Umeda, Shinsaibashi along with stores in large commercial complexes. All stores will operate shorter hours.

・GU International (Mainland China, Hong Kong, Taiwan, South Korea) sales dropped

sharply in March mainly in Mainland China and South Korea after restriction	24
imposed on outdoor and other activities.

FY2020 Estimates by Group Operation(4)

Global Brands: Expect 2H, FY2020 profit to fall and

segment to post an operation loss

・We temporarily closed all US Theory stores from March 17.

・We have temporarily closed all Comptoir des Cotonniers stores in Europe.

■ Envisaged Future Operating Profit Trend by Business Segment

UNIQLO Japan

2017

2018

2019

2020 E

UNIQLO International

2017

2018

2019

2020 E

GU

2017

2018

2019

2020 E

Global Brands

2017 2018 2019 2020 E

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Future Initiatives: Strengthen LifeWear

Create clothes that offer unique new value, and further enrich our daily lives

SPORT

UTILITY

WEAR

Enrich our Sport Utility WearLaunch ultra stretch active jogger pants, AIRism seamless long- sleeve T-shirts, and other items.

AIRism Cotton T-shirts

A cotton outer layer lined with AIRism material for superior quick-drying functionality and a crisp, stylish look.

DRY-EX Polo Shirts

Made partly from polyester fiber recycled from plastic bottles.

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Future Initiatives: Strengthen LifeWear

Accelerate opportunities to experience LifeWear

・Plan to open large-format stores in Yokohama, Harajuku and Ginza in 2H. ・Yokohama: A joint UNIQLO & GU store where families can enjoy shopping.

・Harajuku: Boasts Japan's largest UT T-shirt display and offers a combined EC and instore shopping experience using UNIQLO and GU's StyleHint app for great dressing.

・Ginza: Plan to open a global flagship store in Marronnier Gate Ginza.

・The StyleHint app uses image search to check out global styles and find new style ideas.

・The app uses image analysis technology to select and suggest UNIQLO and GU items that match customers' desired looks on StyleHint.

・The number of customers purchasing products online and in stores based on information gained from StyleHint is increasing.

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Future Inventory, New Store Policy

Normalize inventory levels through FY2021

・We expect to experience bloated levels of Spring Summer inventory due to the rapid fall in sales from February onwards.

・We are working closely with partner factories to control the manufacture of Fall Winter ranges.

・We intend to gradually normalize excess inventory through FY2021.

Maintain medium, long-term store opening policy

・Owing to delays in shopping mall development following the outbreak of COVID-19, we now expect to open a total of approximately 78 new stores in Greater China in FY2020. We are currently scheduled to open 40 new stores in South, Southeast Asia

• Oceania in FY2020. Some store openings may be delayed depending when theCOVID-19 threat can be resolved.

・However, these two regions represent our pillar growth areas, so we do not intend to change our medium- to long-term new store opening strategy.

・We intend to build a network of prime-located, profitable stores by pursuing our scrap and build policy of replacing smaller, less profitable stores, with larger ones in superior locations.

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FY2020 Dividend Estimates

Scheduled interim dividend: ¥240

Expected year-end dividend: ¥240

Revised dividend to the previous year's level

	Dividend per share		Yen
	Interim	Yr-end	Annual
Year to Aug. 2019	240	240		480
Year to Aug. 2020 (Original estimate)	250	250		500
Year to Aug. 2020 (Revised estimate)*	240	240		480
Revision	-10	-10		-20
Y/Y change	±0	±0		±0

*The final decision on the FY2020 interim dividend was made at the board meeting on April 9, 2020. The year-end dividend may be adjusted in the event of large fluctuations in business performance or access to funds.

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Reference:Operating Status of Stores

[Units: Stores]	As of Mar. 31, 2020	As of Apr. 7, 2020
			Total	Temporarily closed
			store numbers	store numbers
UNIQLO Operations	2,246	412
	UNIQLO Japan：	813	4
	UNIQLO International：	1,433	408
		Mainland China	748	5
		Hong Kong	31	0
		Taiwan	68	0
		Korea	182	0
		Singapore	28	28
		Malaysia	49	49
		Thailand	50	50
		Philippines	60	60
		Indonesia	30	30
		Australia	22	22
		Vietnam	2	2
		India	3	3
		USA	50	50
		Canada	12	12
		UK	15	15
		France	22	22
		Russia	41	41
		Germany	9	9
		Belgium	3	3
		Spain	4	4
		Sweden	1	0
		The Netherlands	1	1
		Denmark	1	1	30
		Italy	1	1

Reference: GroupCompany Store Numbers

[Units: Stores]		FY2019	FY2020 1H Result (Sep. - Feb.)	FY2020 Estimates (Sep. - Aug.)
					Yr-end	Open	Close	Change	End Feb.	Open	Close	Change	End Aug.
UNIQLO Operations	2,196	101	55	+46	2,242	173	86	+87	2,283
	UNIQLO Japan ※	817	19	25	-6	811	30	30	0	817
		Own stores	774	16	25	-9	765	-	-	-	-
		Large-scale	230	10	7	+3	233	-	-	-	-
		Standard and others	544	6	18	-12	532	-	-	-	-
		Franchise stores	43	3	0	+3	46	-	-	-	-
	UNIQLO International	1,379	82	30	+52	1,431	143	56	+87	1,466
		Mainland China	711	44	7	+37	748	78	-	-	-
		Hong Kong	29	2	0	+2	31	-	-
		Taiwan	67	2	1	+1	68		-	-
		Korea	188	4	10	-6	182	6	-	-	-
		Singapore	28	0	0	0	28		-	-
		Malaysia	49	2	2	0	49		-	-
		Thailand	50	1	1	0	50		-	-
		Philippines	58	3	1	+2	60	40	-	-	-
		Indonesia	26	6	3	+3	29	-	-
		Australia	20	2	0	+2	22		-	-
		Vietnam	0	1	0	+1	1		-	-
		India	0	3	0	+3	3		-	-
		USA	51	2	3	-1	50	4	-	-	-
		Canada	11	1	0	+1	12	-	-
		UK		13	2	0	+2	15		-	-
		France	24	0	2	-2	22		-	-
		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	23	4	+19	440	34	18	+16	437
Global Brands		972	25	31	-6	966	35	55	-20	952
	Theory	※		451	18	5	+13	464	-	-	-	-
	PLST	※		101	5	4	+1	102	-	-	-	-
	Comptoir des Cotonniers ※		296	1	19	-18	278	-	-	-	-
	Princesse tam.tam ※		124	0	3	-3	121	-	-	-	-
	J Brand		0	1	0	+1	1	-	-	-	-
			Total	3,589	149	90	+59	3,648	242	159	+83	3,672

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

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Reference: Foreign Exchange Rates

Exchange Rates Used in Consolidated Accounts	Yen
		1USD	1EUR	1GBP	1RMB	100KRW
FY2019 2Q	6-month average to Feb. 2019	111.9	128.5	144.2	16.3	10.0
FY2020 2Q	6-month average to Feb. 2020	108.6	120.1	138.5	15.4	9.2
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	121.4	140.6	15.2	9.4

Exchange Rates Used on Balance Sheet

Yen

		1USD	1EUR	1GBP	1RMB	100KRW
FY2019 2Q	Exchange rate at end Feb.2019	110.9	126.1	147.7	16.6	9.9
FY2020 2Q	Exchange rate at end Feb.2020	109.5	120.3	141.1	15.6	9.0
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	109.5	120.3	141.1	15.6	9.0

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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	2Q 6 months	4.9	17.6	4.2		1.2	12.6	40.6	24.0
FY2020	2Q 6 months	6.9	13.0	4.5		1.5	15.7	41.9	87.8
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	31.7	6.8		2.4	36.1	84.8	166.8

*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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