Fast Retailing : Results for FY2020 and Estimates for FY2021 (781KB)

October 15, 2020

Fast Retailing Results for

FY2020 and Estimates for

FY2021

Takeshi Okazaki

Fast Retailing Co., Ltd.

Group Senior Executive Officer & CFO

1

Contents

Ｉ． Results for FY2020	P3	～ P21
ＩＩ． Estimates for FY2021	P22	～	P27
ＩＩＩ．Reference	P28	～	P30

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 (Sep. 2019 - Aug. 2020)

Full-year revenue, profit down on COVID-19 but far exceeded most recent estimates

								Billions of Yen
	Yr to Aug.2019				Yr to Aug.2020
							Full Year
	Actual	1H Actual		2H Actual				Latest est.
	y/y		y/y	Actual	y/y
					（Jul.9）
Revenue	2,290.5	1,208.5	-4.7%	800.3	-21.8%	2,008.8	-12.3%	1,990.0
(to revenue)	100.0%	100.0%	-	100.0%	-	100.0%	-	100.0%
Gross profit	1,119.5	576.7	-4.9%	399.0	-22.2%	975.8	-12.8%	-
(to revenue)	48.9%	47.7%	-0.2p	49.9%		-0.2p	48.6%	-0.3p	-
SG&A	854.3	438.7	+1.2%	367.0	-12.8%	805.8	-5.7%	-
(to revenue)	37.3%	36.3%	+2.1p	45.9%		+4.7p	40.1%	+2.8p	-
Business profit	265.1	137.9	-20.4%	32.0	-65.1%	170.0	-35.9%	150.0
(to revenue)	11.6%	11.4%	-2.3p	4.0%		-5.0p	8.5%	-3.1p	7.5%
Other income, expenses	-7.5	-1.2	-	-19.4	-	-20.6	-	-20.0
(to revenue)	-	-	-	-	-	-	-	-
Operating profit	257.6	136.7	-20.9%	12.6	-85.1%	149.3	-42.0%	130.0
(to revenue)	11.2%	11.3%	-2.3p	1.6%		-6.7p	7.4%	-3.8p	6.5%
Finance income, costs	-5.1	14.1	-	-10.6	-	3.5	-	0.0
(to revenue)	-	1.2%	+1.1p	-	-	0.2%	-	-
Profit before income taxes	252.4	150.8	-13.4%	2.0	-97.4%	152.8	-39.4%	130.0
(to revenue)	11.0%	12.5%	-1.2p	0.3%		-7.3p	7.6%	-3.4p	6.5%
Profit attributable to	162.5	100.4	-11.9%	-10.1	-	90.3	-44.4%	85.0
owners of the parent
(to revenue)	7.1%	8.3%	-0.7p	-	-	4.5%	-2.6p	4.3%
*Adoption of IFRS 16 from FY2020: business profit up ¥8.1bln, operating profit down ¥9.0bln in FY2020.	3

Group: FY2020 Operating Profit

Revenue

¥2.2905trln→¥2.0088trln (-¥281.7bln)

UQ Japan	-¥66.0bln
UQ International	-¥182.0bln
GU	+¥7.3bln
Global Brands	-¥40.3bln

Average forex impact -4% y/y

	1H	2H	FY
USD	-3%	-2%	-3%
RMB	-5%	-6%	-6%
EUR	-7%	-3%	-5%
KRW	-8%	-7%	-7%
Average	-4%	-5%	-4%

¥2.0088trln	Gross profit margin		SG&A ratio
48.9%→ 48.6%(-0.3p)		37.3%→ 40.1% (+2.8p)
-12.3%		1H	2H	FY		1H	2H	FY
	Group	-0.2p	-0.2p	-0.3p	Group	+2.1p	+4.7p	+2.8p
	UQ JPN	+2.2p	+2.9p	+2.4p	UQ JPN	+0.5p	+1.8p	+1.0p
	UQ Intl.	-2.3p	-1.6p	-2.2p	UQ Intl.	+2.3p	+8.1p	+4.0p
	GU	+0.4p	-1.8p	-0.7p	GU	+0.5p	+3.4p	+1.8p
			¥975.8bln	¥805.8bln
			-12.8%	-5.7%

¥170.0bln

-35.9%

1. Impairment loss on property, plant & equipment and right-of- use assets: ¥23.0bln
   UQ Intl: ¥15.8bln
   Global Brands: ¥3.5bln
   UQ Japan: ¥2.4bln
2. Losses on retirement of fixed assets, store closures ¥1.6bln
3. Foreign exchange gain:

¥1.5bln mainly related to temporary advances paid for purchases by overseas subsidiaries

¥149.3bln

-¥20.6bln-42.0%

SG&A

Other income/

expenses

FY2020

FY2020

FY2020

FY2020

Revenue

Gross profit

Business profit

Operating profit

4

Group: FY2020	Profit Attributable to
Owners of the Parent

・ Value of foreign-currency denominated assets increased by ¥1.5bln
	September 1, 2019:	1USD = Approx. 106JPY
	August 31, 2020:	1USD = Approx. 105JPY
・ Interest income & expenses: +¥1.9bln
¥149.3bln	¥3.5bln	¥152.8bln	¥62.4bln
-42.0%	-39.4%
	Net finance
	income
			¥90.3bln		¥90.3bln
			-49.2%	¥0.4bln	-44.4%
				Non-controlling
			Income taxes	assets
FY2020		FY2020	FY2020		FY2020
Operating		Profit before	Profit for the		Profit attributable
profit		income tax	period		to owners of the	5
					parent

Group: FY2020 Impairment Losses

Right-of-use asset recording inflates impairment loss

・Recorded a ¥23.0bln impairment loss in FY2020, up sharply from ¥3.4bln in FY2019.

・Primarily due to recording of right-of-use assets on balance sheet in FY2020 under IFRS 16, which generated impairment losses. ¥17.0bln of the total ¥23.0bln impairment loss was against right-of-use assets.

・Applying IFRS 16 includes right-of-use assets along with property, plant and equipment and intangible assets, bringing total FY2020 assets subject to impairment to approx. ¥610.0bln, an estimated 2.5 times the total without applying IFRS 16. If future impairment losses are recognized, impairment recording is likely to be higher than pre-IFRS 16 levels.

Impairment Loss by Business Segment (End Aug. 2020)

	Impairment	Including
	Impairment Loss on
	Loss	Right-of-use Assets
UNIQLO Japan	¥2.4bln	¥2.1bln
UNIQLO International	¥15.8bln	¥12.6bln
GU	¥1.3bln	¥0.8bln
Global Brands	¥3.5bln	¥1.4bln
Total	¥23.0bln	¥17.0bln

*Right-of-use assets is a new account item created along with the introduction of IFRS 16 for recording future rents under lease contracts for stores, warehouses, offices, etc. as assets.

Total Assets for Impairment (end Aug. 2020)

						Approx.
			Property, plant and equipment		¥610.0bln
			Intangible assets
			Right-of-use assets		¥400.0bln
			Approx.
			¥240.0bln
			¥75.0bln
					¥75.0bln
			¥165.0bln
					¥135.0bln
Not applying IFRS 16	Applying IFRS 16

6

FY2020 Breakdown by Group Operation

Billions of Yen

		Yr to Aug. 2019			Yr to Aug. 2020
		Actual	1H Actual		2H Actual		Full Year
		y/y	y/y	Actual	y/y
	Revenue	872.9	463.5	-5.7%	343.3	-10.0%	806.8	-7.6%
UNIQLO	Business profit	103.2	71.0	+5.1%	35.7	+0.4%	106.8	+3.5%
(to revenue)	11.8%	15.3%	+1.5p	10.4%	+1.1p	13.2%	+1.4p
Japan	Other income, expenses	-0.7	0.5	+391.9%	-2.6	-	-2.1	-
	Operating profit	102.4	71.6	+5.7%	33.0	-4.8%	104.6	+2.2%
	(to revenue)	11.7%	15.5%	+1.7p	9.6%	+0.5p	13.0%	+1.3p
	Revenue	1,026.0	541.2	-6.7%	302.6	-32.1%	843.9	-17.7%
UNIQLO	Business profit	140.3	58.0	-34.6%	5.5	-89.3%	63.5	-54.7%
(to revenue)	13.7%	10.7%	-4.6p	1.8%	-9.8p	7.5%	-6.2p
International	Other income, expenses	-1.4	-4.7	-	-8.5	-	-13.3	-
	Operating profit	138.9	53.2	-39.8%	-3.0	-	50.2	-63.8%
	(to revenue)	13.5%	9.8%	-5.5p	-	-	6.0%	-7.5p
	Revenue	238.7	132.2	+12.9%	113.7	-6.4%	246.0	+3.1%
	Business profit	28.1	15.6	+11.0%	7.1	-49.0%	22.8	-18.9%
GU	(to revenue)	11.8%	11.8%	-0.2p	6.3%	-5.3p	9.3%	-2.5p
Other income, expenses	0.0	0.1	-	-1.1	-	-0.9	-
	Operating profit	28.1	15.8	+12.0%	6.0	-57.2%	21.8	-22.5%
	(to revenue)	11.8%	12.0%	-0.1p	5.3%	-6.3p	8.9%	-2.9p
	Revenue	149.9	70.1	-9.8%	39.5	-45.2%	109.6	-26.9%
Global	Business profit	3.9	0.9	-70.4%	-10.3	-	-9.3	-
(to revenue)	2.6%	1.4%	-2.8p	-	-	-	-
Brands	Other income, expenses	-0.2	-0.2	-	-3.1	-	-3.3	-
	Operating profit	3.6	0.7	-76.3%	-13.4	-	-12.7	-
	(to revenue)	2.5%	1.1%	-2.9p	-	-	-	-

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

7

UNIQLO Japan: FY2020 Performance

Full-year profit up, exceeds July estimate

・Having predicted a full-year profit decline in July, revenue and profit rose sharply on a much higher-than-expected recovery in Q4, resulting in a full-year profit gain.

・While full-yearsame-store sales fell 6.8% y/y on warm winter and COVID-19, 4Q same-store sales rose 20.2% on large recovery in sales.

・E-commerce rose sharply in 2H and recorded a firm 29.3% y/y full-year gain on stronger digital advertising and aggressive conveying of pertinent information.

・Operating profit up on improved gross profit margin, lower SG&A monetary totals.

Yr to Aug. 2019			Yr to Aug. 2020			Billions
Actual	1H Actual		2H Actual		Full Year		of Yen
Prev. yr	Prev. yr	Actual	Prev. yr

Revenue	872.9	463.5	-5.7%	343.3	-10.0%	806.8	-7.6%
(to revenue)	100.0%	100.0%	-	100.0%	-	100.0%	-
Gross profit	407.4	221.4	-1.2%	174.8	-4.6%	396.2	-2.8%
(to revenue)	46.7%	47.8%	+2.2p	50.9%	+2.9p	49.1%	+2.4p
SG&A	304.2	150.3	-4.0%	139.0	-5.8%	289.4	-4.9%
(to revenue)	34.9%	32.4%	+0.5p	40.5%	+1.8p	35.9%	+1.0p
Business profit	103.2	71.0	+5.1%	35.7	+0.4%	106.8	+3.5%
(to revenue)	11.8%	15.3%	+1.5p	10.4%	+1.1p	13.2%	+1.4p
Other income, expenses	-0.7	0.5	+391.9%	-2.6	-	-2.1	-
(to revenue)	-	0.1%	+0.1p	-	-	-	-
Operating profit	102.4	71.6	+5.7%	33.0	-4.8%	104.6	+2.2%
(to revenue)	11.7%	15.5%	+1.7p	9.6%	+0.5p	13.0%	+1.3p

*Adoption of IFRS 16 from FY2020 boosted business profit by ¥3.0bln and operating profit by ¥1.2bln in FY2020. 8

UNIQLO Japan: FY2020 Revenue

Same-store sales: -6.8% (large 20.2% rise in Q4)

・1H down 4.6% y/y as warm winter weather stifled sales of warm clothing.

・2H down 9.6% as temporary store closures or shorter hours and stay-at-home practices in 3Q knocked customer visits lower. However, same-store sales rebounded sharply in 4Q to rise 20.2% y/y after stores reopened for business.

・In 4Q AIRism innerwear, wireless bras, T-shirts and other core Summer ranges sold well and products that satisfied stay-at-home demand such as ultra stretch active jogger pants and skirt pants also sold well. AIRism masks also contributed to higher sales after their launch in June.

・FY2020 e-commerce sales rose 29.3% to ¥107.6bln. 2H 54.7% rise especially strong. Strengthened conveying of information using a new improved platform, digital advertising, and TV ads. New customers up sharply on new limited-period prices for registered app users. FY2020 e-commerce sales as proportion of total sales rose from 9.5% to 13.3%.

Same-store sales

Yr to Aug. 2020

y/y

1H

Mar.

Apr.

May

3Q

Jun.

Jul.

Aug.

4Q

2H

Full Year

Net sales

-4.6%

-27.8%

-56.5%

-18.1%

-34.0%

+26.2%

+4.4%

+29.8%

+20.2%

-9.6%

-6.8%

Customer visits

-1.2%

-32.4%

-60.6%

-31.3%

-41.4%

+13.9%

+2.5%

+26.0%

+13.7%

-14.4%

-7.6%

Customer spend

-3.5%

+6.9%

+10.4%

+19.1%

+12.5%

+10.8%

+1.9%

+3.0%

+5.8%

+5.6%

+0.8%

9

UNIQLO Japan: FY2020 Gross Profit Margin

FY2020 gross profit margin: 49.1% (+2.4p y/y)

on improved cost of sales in 1H, discounting in 2H

・1H gross profit margin rose 2.2p as cost of sales improved sharply on trending appreciation in yen exchange rates for merchandise purchasing.

・2H margin rose 2.9p on greatly improved discounting rates after we discounted items that needed to be sold but resisted excessive discounts to draw customers.

・End-August inventories up ¥2.3bln y/y. Spring Summer inventory rose, but overall rise was tempered by stronger order progress management of Fall Winter items. Spring inventory slightly excessive but mainly core items so expect to normalize over Fall Winter season. Summer inventory not a problem following strong 4Q sales.

			Yr to Aug. 2019	Yr to Aug. 2020
						y/y
	Full year	46.7%	49.1%		+2.4p
	1H		45.6%	47.8%		+2.2p
	2H	48.0%	50.9%		+2.9p

10

UNIQLO Japan: FY2020 SG&A

Full-year SG&A ratio: 35.9%(+1.0p y/y) Down in monetary terms and versus plan

・SG&A ratio rose 0.5p in 1H and 1.8p in 2H.

・IFRS 16 application sharply increased depreciation costs, reduced store rents.

・Excluding the IFRS 16 effect, advertising, store rents, store distribution, depreciation, and personnel expenses declined y/y in monetary terms.

• Advertising costs down: Increased digital marketing in 2H but reduced flyers.
• Store rents down as sales-linked rent decreased in line with lower sales.
• Distribution costs: Store-related distribution costs fell sharply. Temporary store closures in 2H reduced distribution costs and distribution efficiencies improved following a review of delivery routes, frequencies, and loading efficacy. E-commerce delivery costs rose sharply in line with rising sales, but per-item delivery cost fell on improved efficiencies.
• Depreciation costs declined as the impact of accelerated depreciation (shorter depreciation period) of some materials handling for the Ariake Warehouse in FY2019 disappeared.
• Personnel costs fell on RFID usage and other improved store efficiencies over the business year. 2H costs down on decline in employees' regular

working hours and overtime due primarily to temporary store closures.

11

UNIQLO International: FY2020 Overview

Large declines in revenue, profit due to COVID-19

・Exceeded latest estimates as Greater China recovered faster than expected.

・Greater China 4Q revenue recovering favorably in Mainland China and Taiwan.

・In S., SE Asia & Oceania, while the Philippines, Indonesia, and India were hard hit by COVID-19, Singapore, Malaysia, Thailand 4Q sales were on a recovery track.

・USA, Europe hit hard by COVID-19 and taking time to recover. 4Q sales sluggish.

・E-commerce sales strong in all markets. Rose approx. 20% on stronger conveying of information on stay-at-home products, and more e-commerce operations.

・Recorded ¥15.8bln impairment loss on stores mainly in USA and South Korea.

	Yr to Aug. 2019			Yr to Aug. 2020			Billions of
								Yen
	Actual	1H Actual		2H Actual		Full Year
	Prev. yr	Prev. yr	Actual	Prev. yr

Revenue	1,026.0	541.2	-6.7%	302.6	-32.1%	843.9	-17.7%
(to revenue)	100.0%	100.0%	-	100.0%	-	100.0%	-
Gross profit	530.2	263.2	-10.8%	154.5	-34.3%	417.8	-21.2%
(to revenue)	51.7%	48.6%	-2.3p	51.1%	-1.6p	49.5%	-2.2p
SG&A	389.9	205.2	-0.6%	149.0	-18.8%	354.2	-9.2%
(to revenue)	38.0%	37.9%	+2.3p	49.2%	+8.1p	42.0%	+4.0p
Business profit	140.3	58.0	-34.6%	5.5	-89.3%	63.5	-54.7%
(to revenue)	13.7%	10.7%	-4.6p	1.8%	-9.8p	7.5%	-6.2p
Other income, expenses	-1.4	-4.7	-	-8.5	-	-13.3	-
(to revenue)	-	-	-	-	-	-	-
Operating profit	138.9	53.2	-39.8%	-3.0	-	50.2	-63.8%
(to revenue)	13.5%	9.8%	-5.5p	-	-	6.0%	-7.5p

			12
*Adoption of IFRS 16 from FY2020: business profit up ¥3.5bln, operating profit down ¥9.7bln in FY2020.

UNIQLO Intl.: FY2020 by Region (1)

Greater China: Revenue down, profit plummets

Revenue: ¥455.9bln (-9.3%), OP ¥65.6bln (-26.3%)

・Gross profit margin down 2.0p y/y on stronger discounting of products that needed to be sold off and higher cost of sales on stronger Chinese yuan rates. SG&A ratio up 1.3p y/y but down in monetary terms.

・Revenue, profit outperformed on faster recovery in Mainland China, Taiwan. Mainland China: Recovers faster than plan despite revenue dip and profit slump

・Recovered at a faster pace than expected from March once COVID-19 had been brought under control thanks to a growing empathy for our LifeWear concept and support for UNIQLO as an essential everyday brand.

・In 4Q, same-store sales fell sharply in June on torrential rains and a resurgence in COVID-19 infections, but same-store sales began rising y/y mid-July on warmer weather and strong sales of Summer ranges and products designed to satisfy stay-at-home demand.

・Recovery continuing favorably with the 19 new stores opened in August all displaying stronger-than- expected performances.

・E-commerce sales rose approx. 20% y/y to constitute roughly 25% of total sales thanks to strong online- to-offline (O2O) benefits such as dispatching online orders from nearby physical stores.

Hong Kong: Large declines in revenue, profit. Same-store sales down sharply on demos and COVID-19

・4Q same-store sales were also well below previous year's levels as border restrictions reduced tourist

numbers.

Taiwan: Full-year revenue down slightly, operating profit higher

・Early control of COVID-19. Gross profit margin up on conservative discounting. Profit up on cost-cutting.

・Achieved especially impressive revenue gains and large profit rise in 4Q thanks to LifeWear branding,
strengthening of methods for conveying information about products designed to satisfy stay-at-home
demand, and government stimulus policies that helped reinvigorate demand.	13

UNIQLO Intl.: FY2020 by Region (2)

S. Korea: Large revenue fall and an operating loss

・Same-store sales down sharply on Japan-South Korea tensions and COVID-19.

・Operating loss due to impairment losses on stores on back of poor performance.

S., SE Asia & Oceania: Large revenue, profit falls

Revenue down approx. ¥150.0bln, operating profit 40%

・Despite double-digit y/y growth in 1H, temporary store closures, stay-at-home practices, and stagnant travel demand in 2H resulted in a sharp full-year decline in revenue and a slight full- year operating loss.

・In the markets that offer e-commerce operations, Singapore, Malaysia, Thailand, and Australia, e-commerce sales rose by approx. 70% to constitute approx. 10% of total sales. E-commerce operation launched in the Philippines in June also generating higher-than-expected sales.

・While stores gradually reopened in the Philippines and Indonesia from June, continued heavy COVID-19 impact resulted in large revenue decline and an operating loss in 2H. India also reported a slight operating loss on COVID-19.

・While Singapore and Malaysia reported a large 3Q and full-year profit decline, revenue has been recovering gradually since June.

・After bringing COVID-19 under control comparatively quickly, Thailand and Vietnam generated stronger- than-expected performances. While Thailand reported falling full-year revenue and profit, 4Q same-store sales recovered to near previous year's levels. Vietnam posted a 2H profit on strong sales of Summer ranges.

・Australia reported a slight decline in revenue and a large decline in profit. Meanwhile,
e-commerce sales doubled on higher stay-at-home demand and stronger digital marketing.	14

UNIQLO Intl.: FY2020 by Region (3)

N. America: Large revenue fall, much wider loss

USA: Performance worsens considerably on COVID-19

・1H: Winter ranges struggled during warm winter. Recorded operating loss on more expansive discounting.

・2H: Same-store sales fell sharply with nearly all stores temporarily closed from March to June. Customer numbers and same-store sales continued to decline from June onwards due to the changing social climate and a resurgence in COVID-19 infections.

・Operating loss widened significantly after gross profit margin and SG&A ratio both worsened and operation recorded an impairment loss on stores.

・E-commerce on recovery track. 4Q online sales rose approx. 70% on stronger digital markets, and stronger stay-at-home demand for loungewear, sweat wear, T-shirts and other garments. Full-yeare-commerce sales rose approx. 20% y/y to constitute roughly 40% of total sales.

Canada: Large decline in revenue, reports an operating loss

Europe: Revenue down, slight operating loss

・Strong double-digit growth in 2H revenue and profit, but revenue and profit then slumped in 2H as COVID-19 hit hard with stores closed temporarily in all markets except Sweden, and tourist numbers declining.

・Despite that, Russia 4Q same-stores sales rose and online sales increased sharply on strong styling and conveyance of LifeWear-related information.

・Having opened its first store only in September 2019, UNIQLO Italy was hit hard by COVID-19 in 2H but recorded a profit in its very first year on strong 1H sales.

・FY2020 e-commerce sales for UNIQLO Europe as a whole rose approx. 50% to constitute 20% of

total sales.

15

GU: FY2020 Performance (1)

Full-year revenue gain, profit fall as expected

・Despite higher same-store sales in 1H on strong sales of knitwear that captured the latest mass fashion trend and lightweight outerwear, GU Japan's full-year revenue fell 5.2% on heavy 2H COVID-19 impact. However, same-store sales rose 2.2% in 4Q on a favorable sales recovery and especially strong sales of on-trend items and ranges designed to satisfy stay-at-home demand.

・Gross profit margin (-0.7p): Compared to strong previous year. Heavier discounting of Spring Summer ranges to actively rundown inventory.

・SG&A ratio (+1.8p): Up sharply mainly due to lower 2H sales on COVID-19.

	Yr to Aug. 2019			Yr to Aug. 2020			Billions of
	Actual	1H Actual		2H Actual		Full Year		Yen
	Prev. yr	Prev. yr	Actual	Prev. yr

Revenue	238.7	132.2	+12.9%	113.7	-6.4%	246.0	+3.1%
(to revenue)	100.0%	100.0%	-	100.0%	-	100.0%	-
Gross profit	116.9	64.1	+13.7%	54.6	-9.7%	118.8	+1.6%
(to revenue)	49.0%	48.5%	+0.4p	48.0%	-1.8p	48.3%	-0.7p
SG&A	88.8	48.4	+14.6%	47.5	+2.1%	95.9	+8.1%
(to revenue)	37.2%	36.6%	+0.5p	41.7%	+3.4p	39.0%	+1.8p
Business profit	28.1	15.6	+11.0%	7.1	-49.0%	22.8	-18.9%
(to revenue)	11.8%	11.8%	-0.2p	6.3%	-5.3p	9.3%	-2.5p
Other income, expenses	0.0	0.1	-	-1.1	-	-0.9	-
(to revenue)	0.0%	0.1%	+0.1p	-	-	-	-
Operating profit	28.1	15.8	+12.0%	6.0	-57.2%	21.8	-22.5%	16
(to revenue)	11.8%	12.0%	-0.1p	5.3%	-6.3p	8.9%	-2.9p

*Adoption of IFRS 16 from FY2020: almost no impact on business profit, operating profit down ¥0.5bln in FY2020.

GU: FY2020 Performance (2)

・Sales recovery based on launch of successful on-trend mass fashion items and products to satisfy stay-at-home demand, and stronger conveying of trendy and new product news.

・This Summer's trend was for comfortable clothing that gave a crisp impression so sheer-material shirts, elasticated waist colored slacks, and chef's pants for men all sold

well. These products helped boost sales because they were marketed as offering versatile different looks for summer through fall and winter which appealed to more budget-conscious shoppers in the wake of COVID-19.

・Pajamas, loungewear designed to satisfy stay-at-home demand also sold well.

・E-commerce sales expanded roughly 60% y/y to constitute approx. 9% of total sales. In 2H, we successfully reduced online shortages of popular items, encouraged use of StyleHint app to discover new looks, displayed employee looks online, and strengthened information channeling.

Sheer oversized shirt ¥1,490

Belt tuck straight pants ¥1,990

Chef's pants ¥1,490

Pile pajamas ¥1,990 17

Global Brands: FY2020 Performance

Large revenue fall, operating loss below plan

USA and Europe hit hard by COVID-19, so Comptoir des Cotonniers, Princesse tam.tam, and J Brand all reported continued losses and Theory moved into the red.

Theory: Below plan, reports an operating loss

・Large sales decline on temporary store closures and stay-at-home practices. Stronger discounting of Spring Summer ranges.

・Reported a loss for USA and Europe, and a lower profit in Japan. Operating profit flat y/y in Asia thanks to the recovery in sales in Mainland China.

PLST: Revenue, profit down. Reports a slight operating loss

・Large revenue decline on temporary store closures and stay-at-home practices. ・Stronger discounting of Spring Summer ranges.

Comptoir des Cotonniers: Large revenue decline, continued operating loss

・Europe stores temporarily closed for approximately 2 months.		Billions of Yen
			Yr to Aug. 2019					Yr to Aug. 2020
			Actual		1H Actual			2H Actual			Full Year
				y/y		y/y		Actual	y/y
		Revenue	149.9	70.1	-9.8%	39.5	-45.2%	109.6	-26.9%
		Business profit	3.9	0.9	-70.4%	-10.3	-	-9.3	-
	Global Brands	(to revenue)	2.6%	1.4%	-2.8p	-	-	-	-
	Other income, expenses	-0.2	-0.2	-	-3.1	-	-3.3	-
		Operating profit	3.6	0.7	-76.3%	-13.4	-	-12.7	-
		(to revenue)	2.5%	1.1%	-2.9p	-	-	-	-

*Adoption of IFRS 16 from FY2020: business profit up ¥1.4bln, almost no impact on operating profit in FY2020. 18

Group: Balance Sheet (end August 2020)

Billions of Yen

	End Aug. 2019	End Aug. 2020	Change
Total Assets	2,010.5	2,411.9	+401.4
Current Assets	1,638.1	1,655.1	+17.0
Non-Current	372.3	756.7	+384.4
Assets
Total Liabilities	1,027.0	1,415.9	+388.8
Total Equity	983.5	996.0	+12.5

*In relation to the adoption of IFRS 16 from FY2020, the total assets figure at the end of August 2020 included ¥399.9bln in right-of-use assets (a new category resulting from the introduction of IFRS 16 that estimates the value of rights involving leases).

19

Group: B/S Main Points v. end Aug. 2020

Current assets: +¥17.0bln (¥1.6381trln⇒¥1.6551trln)

・Cash and cash equivalents: +¥7.0bln (¥1.0865trn⇒¥1.0935trn)

UQ Japan centered recovery in Q4. Improved operating cash flow exceeded expenditure on investment and financing activities

・Inventory assets: +¥7.0bln (¥410.5bln⇒ ¥417.5bln)

UQ Japan: +¥2.3bln: Spring Summer inventory up but stronger management of Fall Winter order flow. Slight excess of Spring inventory but mainly core items so expect to normalize over Fall Winter season.

UQ Intl: +¥4.1bln: Greater China, South Korea Spring inventory slightly excessive but expect to normalize over Fall Winter season. Summer inventory already at acceptable level. S., SE Asia & Oceania, Europe, North America have excessive Spring Summer inventory, but mainly core items so expect to normalize in 2H FY2021.

GU:+¥0.3bln: Spring Summer inventory at appropriate levels following strong 4Q sales

and stronger discounting. Global Brands: +¥0.3bln

Non-current assets: +¥384.4bln (¥372.3bln⇒¥756.7bln)

・Right-of-use assets: +¥399.9bln (N/A⇒¥399.9bln) On adoption of IFRS 16

Liabilities: +¥388.8bln (¥1.0270trln⇒¥1.4159trln)

・Lease liabilities: +¥466.1bln (N/A⇒ ¥466.1bln)

Recorded lease liabilities (short and long-term) following the adoption of IFRS 16.

20

Group: FY2020 Cash Flow

Dividend payments -¥48.9bln

+¥264.8bln

-¥75.9bln

+¥7.0bln y/y

-¥183.2bln

¥1.0865trln

Cash used in

+¥1.3bln

¥1.0935trln

investing activities

Cash used in

Effect of

Cash flow from

operating activities

financing

exchange rate

activities

changes on

cash and cash

Opening balance of

equivalents

Closing balance

of

・ Acquisition of property, plant and equipment -¥46.5bln

cash and cash

cash and cash

(new stores, Ariake office, warehousing, etc.)

equivalents

equivalents

・Systems, etc. -¥21.0bln

Capital expenditure ¥82.7bln

・UQ Japan: ¥17.8bln (new stores, warehouses, etc.)

・UQ Intl: ¥23.5bln (new stores, warehouses, etc.)

・GU: ¥8.5bln (new stores, new POS systems)

・Global Brands: ¥2.4bln (new stores)

・Systems, etc.: ¥30.4bln (IT, Ariake office, etc.)

September 1, 2019

August 31, 2020

* Adoption of IFRS 16 increased cash flow from operating activities by approx. ¥126.0bln and decreased
cash used in financing activities by approx. ¥126.0bln. This change in accounting standards had no
impact on final cash flow figure.	21

Group: FY2021 Estimates

Expect to achieve a record level of profit

Revenue	： ¥2.2000trln	+ 9.5% y/y
Business profit	: ¥265.0bln	+ 55.9% y/y
Operating profit	: ¥245.0bln	+ 64.0% y/y

	Yr to Aug. 2019	Yr to Aug. 2020	Yr to Aug. 2021
	Actual	Actual	Estimates
	(as of Oct.15)
	y/y
Revenue	2,290.5	2,008.8	2,200.0	+9.5%
(to revenue)	100.0%	100.0%	100.0%	-
Business profit	265.1	170.0	265.0	+55.9%
(to revenue)	11.6%	8.5%	12.0%	+3.5p
Other income, expenses	-7.5	-20.6	-20.0	-
Operating profit	257.6	149.3	245.0	+64.0%
(to revenue)	11.2%	7.4%	11.1%	+3.7p
Finance income, costs	-5.1	3.5	0.0	-
Profit before income taxes	252.4	152.8	245.0	+60.3%
(to revenue)	11.0%	7.6%	11.1%	+3.5p
Profit attributable to owners	162.5	90.3	165.0	+82.6%
of the parent
(to revenue)	7.1%	4.5%	7.5%	+3.0p

Billions of

Yen

22

FY2021 Estimates by Group Operation (1)

UQ Intl: Large revenue rise, OP to more than double

・1H: Expect slight drop in revenue with COVID-19 continuing to impact SE Asia, Europe and North America. Expect operating profit to surge on improved gross profit margin and lower SG&A ratio.

・2H: Expect large revenue and profit gains assuming COVID-19 under control.

Greater China: Expect large 1H, 2H, full-year revenue and profit gains

・In addition to extending product ranges to suit customer lifestyles, we aim to expand revenue through stronger conveying of LifeWear concept, product value.

・Expect gross profit margin to improve on controlled discounting and SG&A ratio to improve on more efficient advertising, distribution, personnel costs.

・Expect double-digit growth in E-commerce sales in Mainland China, Hong Kong, and China.

・Forecast Mainland China will strengthen further thanks to strong O2O links between physical store and e-commerce services. Rate of e-commerce sales growth may slow a little compared to previous year. Expect to greatly improve profit margins by controlling discounting during major online bargain sales and appealing product value appeal and strengthening our branding.

South Korea: Expect revenue to decline in continued tough operating environment, but operating profit to break even on greatly improved gross profit margin and SG&A ratio

・Gross profit margin to improve greatly on more appropriate inventory levels.
・Expect SG&A expenses to decline y/y after closing 31 unprofitable stores and recording	23
impairment losses in FY2020.

FY2021 Estimates by Group Operation (2)

S., SE Asia & Oceania: Expect large full-year revenue and profit gains

・1H: Predict large falls in revenue and profit compared to strong previous year, and due to stagnant travel demand and the extremely harsh impact of COVID-19 in the Philippines and Indonesia.

・2H: Expect a doubling in sales and a large improvement in operating profit compared to previous year's slight loss.

・Aim to expand sales by pressing ahead with multiple store openings (40 new stores set to open in FY2021) and expanding products to suit the local climate.

・Expect double-digit growth in e-commerce as more countries start to offer online retail operations, introduce new platforms, and expand our range of online products and services.

・Expect both the gross profit margin and SG&A ratio to improve.

North America: Expect full-year revenue gains and much smaller operating loss

・1H: Expect revenue to fall and operating loss to expand slightly on continued COVID-19 impact, a changing social landscape, and other factors.

・2H: Expect large revenue gain and much smaller losses assuming above factors have been brought under control.

Europe: Expect large full-year revenue gain and a move back into the black

・1H: Predict large revenue and profit declines on continued COVID-19 impact.
・2H: Forecast large revenue and profit gains.
・In addition to extending product ranges to suit local customer needs, we also aim to expand
revenue by strengthening our branding and fostering greater empathy for our LifeWear
clothing concept.
・See a great opportunity for e-commerce, which we expect to achieve double-digit growth in
FY2021. We intend to strengthen the tailored information delivered to individual consumers	24
and make delivery and payment options more convenient.

FY2021 Estimates by Group Operation (3)

UQ Japan: Expect revenue rise and large profit gain

・Expect revenue and profit to rise in both 1H and 2H.

・Forecast approx. 4% same-store sales growth, incl. 15% e-commerce growth.

・Aim to further expand sales by strengthening our sports utility wear and stay-at-home products to keep abreast of customers' new lifestyles and making well-melded physical store and e-commerce services more convenient.

・Expect the gross profit margin to improve on lower cost of sales generated by improved productivity, and controlled discounting. SG&A ratio also forecast to improve slightly as we strengthen digital marketing and make flyer advertising more efficient, and also seek further efficiencies in distribution to stores, and in instore personnel costs through the use of RFID and self checkouts.

GU: Expect revenue rise and large profit gain

・1H: Expect flat performance compared to strong previous year.

・2H: Expect large revenues gains and operating profit to more than double y/y.

・COVID-19 has accelerated the shift towards stylish but comfortable fashion that is easy to look after. We intend to continue developing products focused on mass-trend fashion, while also incorporating customer opinions into product development and creating fashion that is perfectly attuned to daily living.

・We aim to reduce lead times through stronger materials development, order concentration,

and stockpiling, and to expand our range of low-priced products.

25

FY2021 Estimates by Group Operation (4)

Global Brands: Revenue to rise, turn a profit

・Expect large 1H revenue and profit declines on hefty COVID-19 impact but forecast large 2H rise in revenue and a forceful 2H move into the black.

Theory: Expect large rise in revenue and an operating profit in FY2021

・Aim to expand sales of blouses, cut-and-sewn items, and pants that enjoy deep-rooted demand and strengthen product ranges to suit customer lifestyles by developing light haori-style jackets and loungewear.

PLST: Expect revenue gains and an operating profit in FY2021

・Plan to expand easy-fit, comfortable clothing that also looks crisp and smart. Comptoir des Cotonniers: Expect large revenue gain and smaller loss in FY2021

・Strengthen conveying of product information and branding, review store network, and expand e-commerce.

■ Envisaged Future Business Profit Trend by Business Segment

UNIQLO Japan

2018

2019

2020

2021

UNIQLO International

2018

2019

2020

2021

GU

2018

2019

2020

2021

Global Brands

2018

2019

2020

2021

26

FY2021 Dividend Estimates

Scheduled FY2020 dividend: ¥480

Expected FY2021 dividend: ¥480

		Dividend per share
		Interim	Yr-end	Annual
Year to Aug. 2019		240yen	240yen	480yen
Year to Aug. 2020	*1	240yen	240yen	480yen
Year to Aug. 2021	(E) (as of Oct.15) *2	240yen	240yen	480yen
y/y		±0yen	±0yen	±0yen

*1 The final decision on the FY2020 year-end dividend will be taken at the Board meeting to be held on November 4, 2020.

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

27

Reference: Group Company Store Numbers

[Units: Stores]			FY2019	FY2020 Result (Sep. - Aug.)	FY2021 Estimates (Sep. - Aug.)
						Yr-end	Open		Close				Change		End Aug.	Open			Close		Change		End Aug.
UNIQLO Operations	2,196		161	105	+56	2,252		184	65	+119	2,371
	UNIQLO Japan ※	817		36	40	-4	813		30	30	0	813
		Own stores	774		32	39	-7	767		-	-	-	-
		Large-scale	230		18	9	+9	239		-	-	-	-
		Standard and others	544		14	30	-16	528		-	-	-	-
		Franchise stores		43		4		1			+3		46		-		-		-		-
	UNIQLO International	1,379		125	65	+60	1,439		154	35	+119	1,558
		Mainland China	711		71	15	+56	767		100	-	-	-
		Hong Kong		29		2		0			+2		31			-		-
		Taiwan		67		3		2			+1		68				-		-
		Korea		188		6		31			-25		163		1		-		-		-
		Singapore		28		0		3			-3		25				-		-
		Malaysia		49		3		2			+1		50				-		-
		Thailand		50		2		1			+1		51				-		-
		Philippines		58		3		1			+2		60		40		-		-	-
		Indonesia	26		9	3	+6	32		-	-
		Australia		20		3		0			+3		23				-		-
		Vietnam		0		4		0			+4		4				-		-
		India		0		3		0			+3		3				-		-
		USA		51		2		3			-1		50		3		-		-	-
		Canada	11		1	0	+1	12		-	-
		UK			13		2		0			+2		15				-		-
		France		24		1		3			-2		22				-		-
		Russia		37		6		1			+5		42				-		-
		Germany		9		0		0			0		9				-		-
		Belgium		3		0		0			0		3		10		-		-	-
		Spain	2		2	0	+2	4		-	-
		Sweden		1		1		0			+1		2				-		-
		The Netherlands		1		0		0			0		1				-		-				Note: Excludes Mina (Commercial
		Denmark	1		0	0	0	1			-	-
								Facility Business) and Grameen
		Italy		0		1		0			+1		1				-		-
GU		421		35	20	+15	436		18	9	+9	445		UNIQLO stores
Global Brands	972		34	64	-30	942		29	62	-33	909		*Includes franchise stores
	Theory	※	451		23	14	+9	460		-	-	-	-
	PLST	※		101		8		7			+1		102		-		-		-		-
	Comptoir des Cotonniers ※		296		2		38			-36		260		-		-		-		-
	Princesse tam.tam ※		124		0		5			-5		119		-		-		-		-
	J Brand		0		1		0	+1	1		-		-	-	-
			Total	3,589		230	189	+41	3,630		231	136	+95	3,725		28

Reference: Foreign Exchange Rates

Exchange Rates Used in Consolidated Accounts	Yen
			1USD	1EUR	1GBP	1RMB	100KRW
	FY 2019	Full-year12-month average	110.9	125.9	142.3	16.2	9.7
	FY 2020	Full-year12-month average	108.0	120.1	136.7	15.3	9.0
	FY 2021 (E)	Full-year12-month average	107.0	116.0	133.0	15.1	8.8

Exchange rates used on balance sheet

Yen

		1USD	1EUR	1GBP	1RMB	100KRW
FY 2019	Term end exchange rate	106.4	117.6	129.6	14.8	8.8
FY 2020	Term end exchange rate	105.4	125.5	140.7	15.4	8.9
FY 2021 (E)	Term end exchange rate	105.4	125.5	140.7	15.4	8.9

29

Reference: Capex, Depreciation

Capital Spending and Depreciation	Billions of Yen
	Capex

FY2018 Full-year 12 months

FY2019 Full-year 12 months

FY2020 Full-year 12 months

FY2021 (E) Full-year 12 months

						Depreciation
UNIQLO	UNIQLO	GU	Global	Systems,	Total
Japan	Intl.	Brands	etc
9.9	26.3	4.5	2.7	25.8	69.3	45.0
13.6	31.6	9.0	2.7	28.0	85.2	48.4
17.8	23.5	8.5	2.4	30.4	82.7	177.8
13.4	38.9	3.3	2.0	32.5	90.2	187.8

*We have incorporated depreciation costs of approximately ¥120.0bln following the adoption of IFRS 16 from FY2020. This approximate ¥120.0bln is recorded as depreciation costs relating to right-of-use assets.

30