ANNUAL

REPORT
2020
Year ended
August 31, 2020

LifeWear,
Changing the World
CONTENTS
MESSAGE FROM OUR CEO .. ......................... 08 FY2020 BUSINESS PERFORMANCE . . .......... 58
SUSTAINABILITY .......................................... 20 FY2020 FINANCIAL OVERVIEW . . ................ 60
ENVIRONMENT .......................................... 22 FINANCIAL INFORMATION .. ......................... 62
SOCIAL ...................................................... 24 FINANCIAL SUMMARY ............................. 62
GOVERNANCE ........................................... 28 CFO MESSAGE .......................................... 64
UNIQLO BUSINESS . . ...................................... 34 RISK FACTORS........................................... 68
UNIQLO BUSINESS MODEL ...................... 36 HISTORY .. ....................................................... 70
UNIQLO GLOBAL PRESENCE .................. 42 INVESTOR INFORMATION . . ........................... 72
UNIQLO TOPICS ........................................ 50 CORPORATE INFORMATION . . ....................... 73
GU BUSINESS . . .............................................. 54
OUR GLOBAL BRANDS ................................ 56
UNIQLO’s highly functional outerwear is perfect
for everyday life, or an outdoor excursion. On the
left is a hybrid down parka that combines premium
down with moisture-absorbing thermal padding
developed jointly with Toray Industries, for both
warmth and style. On the right is our windproof
fleece long-sleeve full-zip hoodie made from boa
fleece coated with a soft windproof film.
Our seamless down range is warm
because wind cannot easily
penetrate the garments. The secret
to seamless down’s popularity also
lies in its durable, water-repellant
finish and stylish silhouette.
Fast Retailing,
the LifeWear Company
Fast Retailing seeks to deliver the joy, happiness, and satisfaction of wearing
great clothes to all people worldwide. Our corporate philosophy is: Changing
clothes. Changing conventional wisdom. Change the world. As the world’s
third-largest manufacturer and retailer of private-label apparel in terms of sales,
Fast Retailing operates multiple fashion brands including UNIQLO, GU, and
Theory. UNIQLO, the Group’s pillar brand, generated approximately ¥1.65
trillion in annual sales from 2,252 stores in 25 countries and regions in FY2020.
Driven by our LifeWear concept for ultimate everyday clothing, UNIQLO offers
unique products made from high-quality, highly functional materials at
reasonable prices by managing everything from procurement and design to
production and retail sales. The main drivers of UNIQLO growth have expanded
beyond Japan to Greater China (Mainland China, Hong Kong, and Taiwan) and
Southeast Asia. Meanwhile, our fun, low-priced GU fashion brand is generating
annual global sales of approximately ¥250 billion, primarily in Japan.
In terms of our broader strategy, the entire Fast Retailing Group is currently
pressing ahead with the Ariake Project, which seeks to transform the apparel
industry into a new digital retail industry that focuses on the commercialization
of information. We are leveraging various advanced technologies to build a
seamless supply chain connecting Fast Retailing and our partner factories,
warehouses, and stores worldwide. This Ariake Project transformation also
seeks to achieve greater sustainability, through initiatives that minimize the
environmental impact of our business and create a manufacturing environment
that upholds human rights. Fast Retailing is driven by a passionate desire to
harness the power of clothing to enrich the lives of people around the world
and create a more sustainable society.
In this report, ¥ denotes Japanese yen.
LifeWear,
Making Life Better

Our knitwear, made from advanced

materials, offers both outstanding comfort
and design. This fluffy soft mock neck
sweater and straight pants outfit is great
at home or outside on a quick errand.
LifeWear,
for Sustainability

In our stores, we collect clothing that

customers no longer wear, and deliver it
to people in need through our All-Product
Recycling Campaign. Together with the
UNHCR, we delivered clothing to
refugees in Malawi in 2020.
 MESSAGE FROM OUR CEO

08
LifeWear, Changing Cr
 COVID-19 has radically changed our society and our lives. It has also threatened
the survival of apparel retailers like us. However, I believe we must turn this crisis
into an opportunity to further transform ourselves.
Our LifeWear (ultimate everyday wear) seeks to create simple, quality clothing
that fully satisfies daily needs and enriches all people’s lives everywhere. COVID-19
has changed customers’ lifestyles and what they want from everyday clothing.
Now, customers want simple, long-lasting, high-quality, comfortable clothing that
doesn’t waste precious resources. That is exactly what LifeWear strives to offer.
Fast Retailing has many strengths, including the fact that we manage the entire
clothes-making process ourselves from planning and manufacturing, distribution,
in-store and online retail, right through to recycling. We are one of the world’s
biggest apparel companies in terms of production volume. We have many talented
employees around the world and we have built a framework that actively utilizes
information technology to enhance our commercial business. We have steadfastly
forged a solid operational platform that we are further strengthening through our
ongoing Ariake Project corporate transformation.
In spring 2020, while COVID-19 was dampening people’s spirits, UNIQLO forged
ahead and opened a string of new global flagship and large-format stores in prime
urban locations in Japan such as Ginza, Harajuku, and Yokohama. These stores
have safely welcomed many customers. The way I see it, cheering people up is
part of our social duty and reason for being.
We will continue transforming ourselves into an even stronger company
centered around LifeWear by being vital to society. We are contributing to a
sustainable society by providing products and services that customers need, and
helping to solve environmental, human rights, and various social issues.

January 2021

Tadashi Yanai
Chairman, President and CEO

isis Into Opportunity 09

MESSAGE FROM OUR CEO

Clothing Infrastructure
to Support Society
Appreciation of LifeWear Grows across the globe.
UNIQLO’s branding and products have advanced
Even During COVID-19 dramatically over the past decade as our global store
network has expanded. Today, UNIQLO is recognized
Our ultimate everyday LifeWear clothing is made for as a global brand. The key to UNIQLO’s success all
all people regardless of nationality, ethnicity, gender, over the world is the fact that so many people relate
or age. People worldwide can easily select and to our LifeWear concept. I think that global
purchase LifeWear to suit their individual lifestyles. I appreciation and support for LifeWear will continue to
don’t think I’m exaggerating when I say that now is strengthen, even in the face of COVID-19, because
exactly the time for our ideal LifeWear to blossom, in LifeWear enables you to shed the unnecessary and
the wake of these great coronavirus-induced changes create your own unique lifestyle.

LifeWear enriches time at home–clothes,

blankets, and other goods benefit from
our experience in making soft,
comfortable apparel. 3D-knit lambswool-
blend turtleneck sweater (left). Girls
flannel long-sleeve checked dress (right).
 This is LifeWear
LifeWear is
clothing designed to improve everyone’s life.
It is simple, high-quality, everyday clothing
with a practical sense of beauty, ingenious
in detail, designed with life’s needs in mind,
and always evolving.

Our Driving Ambition: requests. We received many requests for front-opening

innerwear, to be used by those who find it difficult to
Become the Infrastructure pull clothes on and off over their heads, such as
people with limited mobility and people in nursing care.
That Supports Society UNIQLO took those comments into account and
brought front-opening innerwear to retail. In response
This might sound obvious, but we make clothes for our to the mask-related requests we were receiving, we
customers, not for ourselves. As part of our Ariake also developed AIRism face masks made with material
Project, we are analyzing customer opinions and ordinarily used to make UNIQLO innerwear. UNIQLO
developing the products that customers want now. We used its unique technology to create a highly functional
are also steadily increasing the accuracy of estimated mask that is gentle on the skin, which earned many
product sales. messages of gratitude from happy customers.
For instance, demand for relaxing loungewear has The information collected directly from customers
expanded with more people staying home due to worldwide is useful for product development. To
COVID-19. People want good-quality, comfortable enhance this strength, we need to apply Ariake Project
clothing that will last even after repeated washing. In tools to the ever more accurate analysis of changing
response to that demand, we have developed various customer needs. In the realm of apparel, I want Fast
casualwear items, which are selling well. Retailing to become a key piece of the infrastructure
Our front-opening innerwear is one example of how supporting society. That is our mission and our reason
we created a commercial product based on customer for being.

11
MESSAGE FROM OUR CEO

LifeWear Sustainability
Sustainable Growth
for Our Society
Making Society Better duty of any company operating a global business to
provide such support. Ensuring the safety of our
The spread of COVID-19 is severely impacting customers, business partners, and employees is
communities and economies across the globe. In a equally important. Each of us only has one life on this
situation like this, individuals and corporations Earth. Offering peace of mind and a safe working
worldwide need to proactively join forces to turn this environment are key to a functioning company. These
crisis into an opportunity, and create a better world are necessary in order to help customers and to
through concrete action. contribute to society.
Right after the virus had emerged, we donated However difficult the circumstances, we will not
money, masks, and infrared thermometers to partner run away from a crisis, but face it head on. In today’s
factories and business partners in China so they world, it is definitely not enough for only you or your
could respond to the challenges at hand. We also company to thrive. Instead, we want to join forces
donated HEATTECH and Ultra Light Down clothing to with other determined individuals and businesses to
frontline medical workers. As the virus spread think about what we must do to make the world a
globally, we provided support to countries and better place, and then take action. We will stand at
regions that needed it. I believe it is the clear social the forefront and keep pressing forward.

Staff at the Osaka Saiseikai Nakatsu

Hospital said their large stock of
masks and isolation gowns gave
them peace of mind.
Supporting a Sustainable Society clothing materials more effectively. UNIQLO has now
joined this effort.
With Circular LifeWear For instance, in the 2020 Spring Summer season,
we started selling DRY-EX polo shirts that use
In all our business activities, we strive to fulfill our polyester recycled from used plastic bottles. Our
corporate philosophy of creating a better world unique recycled polyester method was developed by
through clothes. Today, customers scrutinize UNIQLO’s strategic partner Toray Industries. UNIQLO
companies and buy from those that benefit society. global brand ambassador Roger Federer wears these
Being involved in a business like ours that DRY-EX shirts during his tennis matches. Then, for
manages the entire clothes-making process—from the 2020 Fall Winter season, we recycled feathers
materials development through production and from used down products and successfully used
retail—means that customers and society as a whole them to make new down jackets. An automated
will judge whether we are encouraging wasteful, machine developed by Toray made it possible to
excess production, and whether there are any recover the feathers from used down products, and in
environmental, labor, or human rights issues at our turn, we were able to produce large volumes of new
partner factories. We work earnestly to react and find down jackets. By February 2020, we were able to
a solution to any issues that arise. Recently, there has collect approximately 620,000 used down products
been a greater focus on making products that to be recycled. This shows just how much value
embrace the concept of a “circular economy.” For customers place in sustainable products.
apparel, this means using the resources that serve as There are many issues to consider with this sort of
circular production. These include high manufacturing
costs, difficulties with mass production, and
maintaining a high level of quality. We will continue the
proactive development of recycled products that
compare favorably with our existing products in terms
of price and product quality.

DRY-EX Polo Shirt

Recycled
Down Jacket

Left: UNIQLO global brand ambassadors Roger Federer

(left, professional tennis player) and Shingo Kunieda
(right, professional wheelchair tennis player) wear DRY-EX
items made with recycled polyester during matches.
Right: Uniqlo U 100% recycled down jacket is a versatile piece
suitable on its own or as a layer.

13
MESSAGE FROM OUR CEO

New Strategic Stores

in the Tokyo Area
New Store Formats, store allows us to share the latest information about
UNIQLO, right from the famous Harajuku fashion
New Styling Inspiration district. Jointly designed by UNIQLO and GU, the
StyleHint app enables customers to check global
In spring 2020, we opened strategic global flagship styles and explore style ideas using picture search.
and large-format stores in the prime Tokyo locations We invite customers, employees, and influencers to
of Ginza, Harajuku, and Yokohama. These stores model their own creative styling combinations of new
were inspired by a desire to give shoppers the full UNIQLO and GU items. App users get much more
experience of LifeWear clothing. Safely opening enjoyment out of their clothes as they discover new
these stores despite COVID-19 brightened our ways to wear them.
customers’ spirits. Our new UNIQLO TOKYO store in Ginza is a
The UNIQLO PARK Yokohama Bayside store, global flagship store that boasts the largest floor
which incorporates a sloping rooftop park, embodies space of any UNIQLO location in Japan. The interior
the LifeWear goal of being an integral part of people’s exudes a spaciousness that accentuates the original
daily lives. In this combined UNIQLO and GU store, I building’s attractive features. The LifeWear Square
want customers to enjoy both brands, and have a area in the center of the ground floor showcases
shopping trip that feels like a fun day in the park. items that illustrate what makes UNIQLO products
From the rooftop park, customers can view great. The bustling store also houses boutique shops
Yokohama’s yacht-filled marina and enjoy a little for Group brands Theory and Comptoir des
downtime. Cotonniers. Inspired by the concept of enjoying life to
UNIQLO Harajuku features displays linked to our the fullest, we have even started selling fresh flowers
digital StyleHint app and our largest full-floor display on the ground floor.
of UT printed T-shirts anywhere in the world. The

A 240-picture full-wall display inside

UNIQLO Harajuku enables shoppers
to refer to photos of popular
influencers and app users to help
discover their own perfect style.
LifeWear Square displays UNIQLO’s
highly functional ranges and
collaborative products, and gives
a clear overview of UNIQLO’s
LifeWear concept.
 MESSAGE FROM OUR CEO

Fusing Physical and Virtual

Stores Fuels Online Sales
Accelerating Global Investment up-to-the-minute information on their phones, see
clothing combinations firsthand, and buy the products
to Make E- commerce they want immediately, whether in-store or online.
In FY2020, online sales for the whole Fast
Our Main Business Retailing Group topped ¥300 billion, representing
approximately 15% of total sales. We have declared
People shop in various ways. They might buy goods our goal of expanding this to 30% in the future. Fast
online while in a store, or might check a product on Retailing boasts a global network of over 3,000
their phone, then come to a store to purchase it. stores, and we want to rebuild business platforms in
Whether it is through physical or online stores, what is individual markets to increase synergies between
important to the customer is that they can stores and e-commerce. We will also proactively
immediately buy what they want, when they want it. invest and secure the human resources required to
E-commerce sales were boosted by lifestyle expand our e-commerce business.
changes brought about by COVID-19, but ultimately We are pressing ahead with our Ariake Project
the rise of online shopping is due to customers because we are determined to develop e-commerce
choosing the most convenient shopping method. Our as a main business. Transforming our distribution
aim is to unify our sales channels. By using our systems is one key component. To deliver online
StyleHint app, customers can access purchases to customers straight away, we have begun

Fast Retailing Group E-commerce Sales and Sales Ratio

E-commerce sales
(billion yen) ¥ 313.7 billion
400 E-commerce
E-commerce sales sales ratio
350

300
¥ 258.3 billion 30%
250

200 E-commerce sales

E-commerce sales ratio
150

100

50

0
(FY) ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 ’19 ’20 (forecast)

16
 This world-class automated apparel
warehouse in Ariake, Tokyo operates
with minimal staff 24 hours a day,
7 days a week, 365 days a year,
meaning products are delivered to
customers in a timely manner.

setting up our own distribution centers and automated optimal route. We plan to gradually develop similar
warehouses, starting with our Ariake Warehouse in systems in Japan and worldwide, and we intend to
Tokyo and our West Japan EC Warehouse. We intend further enhance shopping convenience by providing
to develop similar infrastructure in Mainland China, the more “click and collect” services for customers to pick
United States, and Australia. Operating our own up their online purchases from a nearby store.
distribution warehouses will allow us to prevent We are also creating frameworks to quickly order
product shortages by unifying e-commerce and additional production of strong-selling items based on
in-store inventory. Centralizing stock in this way will online sales information and to swiftly develop new
enable us to deliver goods to customers from in-store products that successfully anticipate changing
stock if we don’t have e-commerce inventory. A customer needs. I believe the building of new business
system like this has already been established in models that fuse physical store and e-commerce
Mainland China, allowing us to deliver products via the operations will continue to drive future growth.

17
 MESSAGE FROM OUR CEO

Spurring a FY2021
Recovery
Expect Further Recovery Kong, and Taiwan) and Southeast Asia will generate
the greatest growth going forward. Middle-income
in FY2021 populations are predicted to increase dramatically as
economies develop, and I believe younger
UNIQLO FY2020 revenue and profit declined sharply generations will fuel consumption. We plan to open
in all overseas markets in the wake of COVID-19. multiple new stores in the region spanning Mainland
However, we expect to see a healthy recovery in China, Southeast Asia, and India, which we view as
FY2021. UNIQLO Japan sales began recovering the growth center of the global economy.
from mid-May 2020 with clothing demand in the UNIQLO operations in North America and Europe
pandemic shifting toward casualwear, loungewear, were hit hardest by COVID-19, resulting in poor
and sport utility wear. Mainland China constitutes a overall performance in FY2020, but online sales
large portion of UNIQLO International sales, and expanded rapidly. We will promote our LifeWear
sales there started recovering at a faster-than- concept by compiling product lineups that suit local
expected pace from March 2020 after COVID-19 customers’ needs. We will press ahead with our
infections were brought under control. It is hard to scrap and build policy to forge a network of prime-
predict corporate performance in parts of Southeast location, high-profit stores. We aim to generate a
Asia, North America, and Europe that are still UNIQLO recovery in North America and Europe in
experiencing lockdowns, but we will strive to FY2021 despite COVID-19 lockdowns and other
generate a recovery there while prioritizing customer lingering uncertainties. We will strengthen product
and employee safety. development and improve profit margins and cost
We expect Greater China (Mainland China, Hong ratios to spur a recovery for GU as well.

Sales at Leading Apparel Retailers

FAST RETAILING (UNIQLO) H&M

(trillions of yen) Inditex (ZARA) GAP L Brands
3.5

3.0

2.5

2.0

1.5

1.0

0.5

0.0
(FY) ‘00 ‘01 ‘02 ‘03 ‘04 ‘05 ‘06 ‘07 ‘08 ‘09 ‘10 ‘11 ‘12 ‘13 ‘14 ‘15 ‘16 ‘17 ‘18 ‘19 ‘20

*Compiled from individual annual report data and caluculated using exchange rates as of end of November 2020.

18
Building a Truly
Global Platform
Linking Individuals and East Asia, Southeast Asia, and Australia. We are also
opening stores in emerging markets such as India
Companies Worldwide to and Russia. These global platforms truly represent the
source of our strength. As the world continues to face
Create a Better Society many challenges and issues, we will join forces with
individuals and companies around the globe to help
My dream is to build a truly global platform that realize a better society for all.
transcends national and cultural boundaries. I am I believe that there are no national borders in
determined to deliver on our corporate philosophy to business. I will continue doing everything I can to
make the world a better place through clothes by make the world a better place by forging close links
working with talented global designers, innovators, with individuals and companies that possess superior
and companies to create products that offer real talent and advanced technologies, creating new
meaning and value to customers. clothing value through LifeWear, and providing people
Fast Retailing has operational bases in the major all over the world with the joy, happiness, and
cities of the United States and Europe, as well as satisfaction that clothes can bring.

THE FAST RETAILING WAY -

FR Group Corporate Philosophy

Changing clothes.
Changing conventional wisdom.
Change the world.
GROUP MISSION

To create truly great clothing with new and unique

value, and to enable people all over the world to
experience the joy, happiness and satisfaction of
wearing great clothes
To enrich people’s lives through our unique corporate
activities, and to grow and develop our company
in unity with society

19
 SUSTAINABILITY

Building a
Sustainable
Society
Fast Retailing’s overriding aim is to make the world a
better place through clothes. The Fast Retailing
sustainability statement concentrates on “unlocking

ay
the power of clothing.” We pursue core sustainability
efforts in six material areas, and are now working
htW
g
Ri
tirelessly to achieve our goals in each of them.
e
Th

Our Six Key Areas of Focus (Material Areas)

1 Create New Value Through Products and Services

2 Respect Human Rights in Our Supply Chain
3 Respect the Environment
4 Strengthen Communities
5 Support Employee Fulfillment
6 Corporate Governance

20
SUSTAINABIL
ITY
ENVIRONMENT S OCIAL GOVERNANCE

21
 ENVIRONMENT

Reducing Environmental Impacts

Across the Supply Chain
Material Area 1 Material Area 3

 e commission environmental evaluations of major garment factory and fabric mill partners based on the
W
Sustainable Apparel Coalition’s Higg Index and help improve wastewater management and the handling of
waste materials on-site.
 e have committed to the targets in the Paris Agreement for reducing greenhouse gas emissions by 2050
W
and are currently working to reduce greenhouse gas emissions at our stores and in the broader supply chain.
 e strive to prevent water contamination and reduce water and energy consumption in raw material
W
procurement and manufacturing processes. We have set targets for major fabric mill partners to reduce
water consumption by 15% and energy consumption by 10%.
We aim to eliminate hazardous chemical emissions in all our products and production processes.
 e are reducing environmental impacts by cutting down on product packaging and shopping bags, and
W
switching to environmentally conscious materials.

RECYCLE
REUSE
REDUCE

LAUNCHING RE.UNIQLO
Clothes that can improve the future. In our new RE.UNIQLO initiative, our customers donate clothes they no
longer need, and we create value by giving them a new lease on life. Since 2006, we have been donating
used garments (REUSE) to refugees and displaced persons through our All-Product Recycling Initiative.
Now we are promoting a cyclical program that transforms collected clothing into new garments (RECYCLE).
Our recycled down jacket is our first product that transforms worn UNIQLO garments into new UNIQLO
clothing, a move that will help reduce unnecessary waste and cut CO2 emissions and resource use
(REDUCE). Through this initiative, UNIQLO is determined to help create a sustainable society.

22
 1 Down Recycling Helps Circulate
Valuable Resources
We collect down garments that customers no longer wear, and recycle
them into completely new down products. Since September 2019,
we have collected approximately 620,000 down garments
Recycled through our recycling campaign in Japan, which was
Down Jacket expanded to 22 other markets in September 2020.
In the past, the separation of down feathers and fabric
for recycling was usually done by hand, but UNIQLO
started using a fully automated down separation
system newly developed by Toray Industries.
Not only is the system capable of handling 50 times
the amount of down compared to conventional
methods, but it also reduces the burden on
workers, as airborne feathers and down particles
can be hard on the lungs. Down feathers extracted
using the separation system are cleaned and then
reused as materials for new down products. Our
recycled down jacket made with 100% recycled
Automating the separation of down
feathers went on sale in the 2020 Fall Winter season.
feathers and fabric for recycled
down jackets serves to improve
working environments.

All-Product Recycling
Initiative: Donating Clothes to
Refugees and Displaced Persons
2
Since 2006, UNIQLO’s All-Product Recycling Initiative has
accepted clothes that customers no longer wear for delivery
to refugees and displaced persons worldwide through the
Office of the United Nations High Commissioner for Refugees
(UNHCR). In 2010, GU joined the initiative which now spans 23
markets. By the end of August 2020, we had donated 41.11
million items of clothing to people in 75 countries and regions.
Approximately 20% of the donated clothing is no longer wearable,
and is transformed into recycled paper and plastic fuel (RPF), an alternative to
Refugee camp in Malawi
coal and other fossil fuels used in special boilers operated by major paper manufacturers.
Some is also turned into automobile soundproofing material that helps reduce the noise of
gasoline engines and the high-frequency waves emitted by electric cars.

23
 SOCIAL

Forging Deep - rooted Community

Links to Solve Social Issues
Material Area 1 Material Area 2 Material Area 4 Material Area 5

We are providing global support to prevent the spread of COVID-19.

 W
 e collect clothing that customers no longer wear and deliver it to refugees, displaced persons,
and other people in need.
We respect human rights across our supply chain and create safe, fair working environments.
 W
 e seek to create working environments that empower employees by protecting their health, safety,
and human rights and respecting diversity.
 W
 e seek to expand employment opportunities for people
with disabilities, and for refugees.

Monitoring Improves Working

Environments Across the Supply Chain
Based on our Code of Conduct for Production Partners, Fast
Retailing asks independent organizations to conduct regular
inspections of human rights violations, working environments,
and environmental safety at our partner sewing factories and main
fabric suppliers. Each factory is informed of the inspection result.
If required, Fast Retailing members visit factories and work with
factory staff to implement appropriate improvement measures.

An employee at a UNIQLO partner factory in China

Partner Factory Monitoring Results
FR Group (UNIQLO)
Grade Description
FY2017 FY2018 FY2019 FY2020
A No specific violations 67 (31) 61 (33) 40 (21) 52 (27)
B Relatively minor violations 250 (139) 233 (135) 234 (143) 257 (162)
Risk of human rights or worker safety and health violations
C 196 (84) 229 (97) 239 (103) 237 (84)
(e.g. inadequate provision of masks, gloves, and other protective gear)
Significant violation concerning human rights, safety and health,
D remuneration, or welfare benefits 49 (13) 84 (34) 71 (18) 66 (12)
(e.g. inadequate emergency exit locking, wage calculations, etc.)
Serious human rights violations (child or forced labor) or
E 14 (6) 5 (1) 1 (1) 1 (1)
extremely serious safety and health violations
Number of factories monitored 576 (273) 612 (300) 585 (286) 613 (286)
In FY2020, we requested D-grade factories to make improvements within three months, conducted follow-up monitoring, and reduced volumes
at factories that had not made sufficient improvements. In our Business Ethics Committee, we discussed factory management and employment
conditions at E-grade partner factories, and reduced production orders.

24
 Approaching Target of at Least
One Employee With a Disability
in Each Store
There are approximately 1.3 billion people with
disabilities globally (17% of total population), including
9.5 million in Japan (7% of Japan’s population). Fast
Retailing has actively recruited people with disabilities
since setting a target in 2001 to have at least one
employee with a disability in every store. As of June
2020, 4.7% of Fast Retailing staff had a registered
disability, which far exceeds the 2.2% legal requirement
for companies in Japan. In recent years, we have
extended our initiative to hire people with disabilities in
operations outside Japan. Deepening understanding among
co-workers and customers of the needs of people with
disabilities, and nurturing mutual respect, are key parts of Fast
Employee with a visual
Retailing’s corporate philosophy and social commitment. impairment who works on
UNIQLO’s front-opening innerwear was created after receiving UNIQLO Ginza store
requests from many customers, including those undergoing clothing alterations

extended stays in hospitals. Our product development also

incorporates guidance received at public venues including a
symposium for customers with disabilities. It is important to
address the needs of people with disabilities in order to create
clothes that everyone can enjoy. We will continue to listen to all Front-opening
innerwear
our customers and attentively respond to their needs.

Different Work Styles for Different Life

Stages Supporting Everyone’s Career Path
We are reforming our human resource systems and implementing
training programs so employees can find a work style that suits their
particular phase in life, balancing childcare, nursing care, and career
progression as needed. For example,we have already facilitated
opportunities for female store managers, senior management, and
external experts to directly exchange opinions, and for female store
managers with young children to meet and exchange ideas. We have
also conducted training programs for female management candidates,
as well as implicit gender bias training sessions for senior management.
A return-to-work At the end of August 2020, 38.4%* of managers across the FR Group
seminar for female
were women. We intend to continue expanding various systems to
employees currently
on family leave support the career development of all our employees.
*Management grades in the sales department include all block leaders, all area
managers, and some store managers. People in leadership positions at headquarters
are also included in the figure shown.

25
 SOCIAL

Supporting the Global Fight Against COVID-19

Donated Masks, Isolation Gowns,
UNIQLO Clothing to
26 Countries and Regions
Since March 2020, Fast Retailing has donated masks and
isolation gowns to medical institutions and care facilities
facing shortages of medical equipment in 26 countries
and regions. We have also provided essential wear—such
as UNIQLO’s highly functional AIRism garments,
innerwear, and outerwear—and offered financial support.
Our efforts are ongoing, with 1.2 million isolation gowns
and 5.76 million masks donated to Japanese medical USA
AIRism products to Montefiore Health System,
institutions, 110,000 AIRism, HEATTECH, and down
which runs 15 hospitals
garments donated for use in China’s Hubei Province, and
2.0 million masks and approximately 20,000 AIRism
garments donated for use in the United States. We are
also extending support to other countries with the help of
UNIQLO global brand ambassadors, sports groups, and North America
non-profit organizations. We will continue to offer as much
vital support as we can to medical institutions, PCR test 2.2 million 39,850
centers, care facilities, and other groups who provide the
24,410
infrastructure that underpins our daily lives.

Key: COVID-19 Support (As of November 27, 2020)

Mask

AIRism Mask

Isolation Gowns

AIRism

Essentials

Japan
AIRism items and isolation gowns to
Saisei Central Hospital

26
 China

Germany
UNIQLO outer and innerwear to NGO
Berliner Stadtmission

Europe

3.61 million 62,725

HEATECH and AIRism products to public and
25,400 18,950 medical organizations in Hubei Province

Asia

10.41 million 500,000

1.43 million 420,873

503,563

Hong Oceania
Kong
500,000 2,000

AIRism items and DRY T-shirts to

Fu Hong Society, a facility for people
with disabilities

Japan

Malaysia

Masks to Nishiyama Dental Clinic AIRism products to Hospital Haji Ahmad Shah

27
 GOVERNANCE

Managing Swiftly
and Transparently
Material Area 6

 ppoint mainly external directors to heighten the Board of Directors’ independence

A
and strengthen its surveillance ability.
Promote swift, open debate and decision-making in individual committees that support the Board.
 ebate important governance-related issues in the Nomination and Remuneration
D
Advisory Committee.

External Statutory Auditor Interview

Strengthen Governance
Through Rigorous,
Multifaceted Discussion
Takao Kashitani
External Statutory Auditor

I serve on the Nomination and Remuneration Advisory this “new birth” rather than regeneration because it
Committee, which was launched in August 2019. To represents an entirely fresh start. Fast Retailing is
ensure substantive discussion in committee meetings, it always embracing new things and transforming itself.
is important to have a clear idea of the path Fast People are a vital element of that journey. I believe we
Retailing should be taking five or 10 years from now. can deliberately grow the company in the right way by
When that path is clear, it is possible to judge whether a selecting powerful, talented people based on global
person is the most appropriate choice for that chosen standards and Fast Retailing’s own exacting criteria.
task, based on individual business acumen and The committee should also be constantly looking
supervisory capabilities. ahead and discussing Fast Retailing’s succession
After more than 30 years in consulting on corporate planning. Here, it is important to take our time and
regeneration, I am deeply conscious of the importance voice our true opinions. Mr. Yanai is straightforward in
of people. Corporate regeneration involves looking his comments, and we statutory auditors and directors
carefully at your business model and pursuing freely express what needs to be said. I hope to
appropriate structural reforms. It is important to develop participate in continued serious discussion to help
win-win relationships not only for your business itself, further strengthen Fast Retailing corporate governance.
but also for employees and the industry as well. I call

28
Board of Directors, Board of Auditors Internal Control
Having a majority of external directors on the Board We aim to establish internal control systems wherever
strengthens supervision of decision-making by our CEO we operate by promoting full compliance, building risk
and other executive officers. Our external directors boast management frameworks, protecting confidential
diverse superior expertise as former senior managers of information, and pursuing thorough internal auditing.
global companies or as leading specialists in fields such We seek to nurture a deep understanding of, and
as M&A and financial management. They offer objective respect for, our Fast Retailing Group Code of Conduct
opinions that are reflected in important management by requiring all employees to take an annual online
decisions. In FY2020, the Board discussed various topics refresher course. We have also set up internal hotlines
including the fiscal year budget, approval of corporate so that anyone can report or discuss potential
results and director appointments, and strategy for Global compliance violations or concerns.
Brands. The Board met 13 times in FY2020. The At the same time, our Risk Management Committee
attendance rate was 99.1% for directors and 100% for works to strengthen business-related risk management
auditors. External statutory auditors with certified systems. The committee debate our preparedness and
accounting or legal backgrounds constitute half the Board responses with regard to various issues, including the
of Auditors. The auditors ensure transparent auditing and COVID-19 pandemic, the risk of a major natural disaster
participate in specialist and objective debates. The Board such as an earthquake impacting Tokyo, and
of Auditors met 12 times in FY2020 (100% attendance). information security risks.

Corporate Governance at Fast Retailing (As of November 27, 2020)

General Meeting of Shareholders
Elect/dismiss Elect/dismiss

Human Resources Committee

Report
Board of Statutory Auditors Board of Directors Sustainability Committee
(Three out of six are external) Audit/report (Five out of nine are external) Disclosure Committee
Consult
IT Investment Committee
Code of Conduct Committee
Elect/dismiss
Business Ethics Committee
Elect/dismiss/nominate/ Risk Management Committee
Report Report/cooperate
remove/supervise Nomination and Remuneration
Independent Internal Audit Audit/report Chief Executive Officer Advisory Committee
Counsel/supervise
Auditors Division Group Officers Human Rights Committee

Composition of Committees (As of November 27, 2020) =Committee Member

Nomination and
Human IT Code of Business Risk Human
Sustainability Disclosure Remuneration
Resources Investment Conduct Ethics Management Rights
Committee Committee Advisory
Committee Committee Committee Committee Committee Committee
Committee
Tadashi Yanai Chairperson Chairperson
Internal Takeshi Okazaki Observer Chairperson Chairperson
Directors Kazumi Yanai
Koji Yanai
Toru Hambayashi Chairperson
Nobumichi Hattori
External
Masaaki Shintaku Observer
Directors
Takashi Nawa
Naotake Ono

Standing Akira Tanaka Observer

Statutory Masaaki Shinjo Observer Observer
Auditors Masumi Mizusawa Observer Observer

External Keiko Kaneko

Statutory Takao Kashitani
Auditors Masakatsu Mori Observer
Group Officers and
2 6 3 5 5 9 9 0 6
Other External Professionals

Note: T
 he head of the Sustainability Department chairs the Sustainability and the Business Ethics committees, the head of the Legal
Department chairs the Code of Conduct Committee, and an external expert chairs the Human Rights Committee. External directors
and statutory auditors of each company offer opinions based on their individual areas of expertise.

29
 GOVERNANCE

Messages From Our Directors

Contribute to a Sustainable Society With

True LifeWear
I strive to achieve transparent management and contribute to a sustainable
society based on our corporate statement: Changing clothes. Changing
conventional wisdom. Change the world. The way to continue providing ultimate
everyday LifeWear is to press ahead with our sweeping Ariake Project corporate
transformation. I will continue to pursue growth for us as a company that delivers
the joy and happiness of clothing to people worldwide through LifeWear.

Appointed President and CEO in September 1984, and his current position of Chairman,
Tadashi Yanai President & CEO in September 2005. Main concurrent positions: Chairman, President & CEO
of UNIQLO CO., LTD.; Director & Chairman of G.U. CO., LTD.; Director of LINK THEORY
JAPAN CO., LTD.; External Director at Nippon Venture Capital Co., Ltd.

Support Growth Based on Strict Evaluations

and Sound Frameworks
Tadashi Yanai has a strong sense of morality and is an extremely talented
business leader. However, the further Fast Retailing expands its global reach, the
more important management transparency becomes. I strictly evaluate this
process to ensure we realize corporate growth within a healthy business
framework. I will continue to scrutinize internal processes to aid FR in its quest to
become the world leader in apparel.

Appointed November 2005. Former President of Nichimen Corp.; Chairman and

Toru Hambayashi Representative Director of Sojitz Holdings Corp. (currently Sojitz Corp.); External Director at
External Director Independent Director UNITIKA LTD. and at DAIKYO INCORPORATED, and MAEDA CORP. Currently serving as
Advisor to The Association for the Promotion of International Trade, Japan.

A Broad Perspective to Improve Corporate Value

From a management strategy perspective, it is extremely important to objectively
judge how capital markets perceive Fast Retailing’s corporate value. The role of
the Board of Directors as a key collective that evaluates corporate risk and offers
advice when necessary is growing in significance every year. It is my job to offer
multifaceted suggestions on how best to increase corporate value. I am
committed to providing appropriate advice from a broad perspective to
contribute to FR growth.

Appointed November 2005. Formerly worked at Goldman Sachs. Currently a research

Nobumichi Hattori specialist in M&A and corporate value evaluation. Also serves as Visiting Professor at Waseda
Graduate School of Business and Finance, and at Keio University Graduate School of
External Director Independent Director
Business Administration; External Statutory Auditor at Frontier Management Inc.; External
Director at Hakuhodo DY Holdings Inc.

30
 Accelerate Corporate Evolution,
Contribute to Growth
Fast Retailing is steadily creating a new digital consumer retailing industry by
efficiently investing in revolutionary new distribution and IT systems. We are
seeing the benefits of FR’s determined nurturing of talented managers who can
dynamically drive growth in periods of huge operational change, and it reassures
me to see more diverse personnel ready to take on new challenges. The Board
of Directors works to accelerate FR’s progress and future growth.

Appointed November 2009. Previously Executive Vice President of Oracle Corp. (US) and
Masaaki Shintaku Chairman of Oracle Corp. (Japan). Currently Counselor of Special Olympics Nippon
External Director Independent Director Foundation and External Director of NTT DOCOMO, INC.

Champion Sustainability and Diversity

My role is to help FR address ESG issues and challenges more actively. The aim
is for FR to be known as a global industry leader in this arena. I believe
consistently contributing to a sustainable society improves corporate value. In
my comments to the Board, I focus on emphasizing diversity. I want to help FR
use its ever-expanding global operations as an opportunity to grow as an even
better business.

Appointed November 2012. Previously a director of McKinsey & Company and External Director
at DENSO CORPORATION. Currently a professor at the Hitotsubashi University Business
School of International Corporate Strategy, President of Genesys Partners, and External
Takashi Nawa Director at NEC Capital Solutions Limited, Ajinomoto Co., Inc., and Sompo Holdings, Inc.
External Director Independent Director

Develop a Broad Management Perspective

When I was in senior management, I expected external directors to voice direct
opinions from a broad range of perspectives. Seeing the big picture
by following other industries as well as your own is vital to good management.
Mr. Yanai is open to new ideas, and I voice frank opinions to ensure
management transparency and appropriate risk management. This is how I fulfill
my role as external director.

Appointed November 2018. Formerly Director, Senior Managing Executive Officer, Executive
Vice President, President & COO of Daiwa House Industry Co., Ltd. Became Special Advisor
to Daiwa House in November 2017.
Naotake Ono
External Director Independent Director

31
 GOVERNANCE

On - the - ground Conditions Drive Deep,

Practical Debate
My role as Group Senior Executive Officer and CFO is to execute and supervise
corporate management. I believe I can guide increasingly deep and practical
debate among the Board members by directly conveying the reality on the
ground. My job is to steer FR managers, including myself, toward correct
management by following the policies determined by the Board and
incorporating the perspectives of our customers and other stakeholders.

Appointed November 2018. Worked at the Long-Term Credit Bank of Japan and as a partner
Takeshi Okazaki at McKinsey & Company. Joined Fast Retailing in August 2011. Main current positions:
Director, UNIQLO CO., LTD and G.U. CO. LTD.; Group Senior Executive Officer & CFO, Fast
Retailing Co., Ltd.

Create a Platform to Support Sustainable

Corporate Growth
As a member of the founding family, it is my responsibility to take a long-term
perspective and work to bolster Fast Retailing’s global growth. I want to help
create a strong fundamental basis for continued FR growth by upholding our
corporate culture, strengthening our governance, and prioritizing our social
contributions. As a senior executive officer, my job is to advance our business
transformation, and to work together with employees and management teams to
create our ideal company.
Kazumi Yanai Appointed November 2018. Joined Fast Retailing in September 2009 after working at
Goldman Sachs Group, Inc. and Link Theory Holdings (US) Inc. (currently Theory LLC). Main
current positions: Chairman, Theory LLC and UNIQLO USA LLC; Chairman J BRAND
HOLDINGS, LLC; Group Senior Executive Officer, Fast Retailing Co., Ltd.

Compassionate Management,
Stronger Governance
I have acquired a good deal of experience working on FR’s global marketing, the
Ariake Project, human resources, and other areas. As a senior executive officer, I
feel the most important lesson in management is to value your people. As a
director and member of the founding family, I want to contribute to FR’s
continued corporate growth and further strengthen our governance systems.

Appointed in November 2018. Joined Fast Retailing in September 2012 after working at
Mitsubishi Corporation’s food subsidiary Princes Limited, UK. Currently Assistant General
Koji Yanai Manager, Global Product Development and Merchandising, UNIQLO CO., LTD., and Group
Senior Executive Officer, Fast Retailing Co., Ltd.

32
 Auditors

Keiko Kaneko Takao Kashitani

External Statutory Auditor External Statutory Auditor

Independent Director Independent Director

Appointed November 2012. Partner at Anderson Mori & Appointed November 2018. Director of Brain Group (Kashitani
Tomotsune law firm; Statutory Auditor at UNIQLO CO., LTD.; Accounting Office); President of Brain Core Co., Ltd. and of
External Statutory Auditor at The Asahi Shimbun Company and FP Brain Co., Ltd.; External Director at Japan Freight Railway
at Daifuku Co., Ltd. Company.

Masakatsu Mori Akira Tanaka

External Statutory Auditor
Standing Statutory
Independent Director Auditor

Appointed November 2020. Currently serves as Special Advisor Appointed November 2006. Served as Deputy President of
to the International University of Japan and External Director at McDonald’s Co. (Japan), Ltd. (currently McDonald’s Holdings
Stanley Electric Company, Ltd., YAMATO HOLDINGS CO., LTD., Company (Japan) Ltd.). Formerly Managing Director of Fast
and Kirin Holdings Company, Limited. Retailing Co., Ltd. Currently Councilor at Special Olympics
Nippon Foundation.

Masaaki Shinjo Masumi Mizusawa

Standing Statutory Standing Statutory
Auditor Auditor

Appointed November 2012. Joined Fast Retailing in February Appointed November 2019. Formerly of Yamaichi Securities
1994; served as General Manager of Group Auditing. Also served Co., Ltd. and Kleinwort Benson Securities Research. Joined
as Statutory Auditor at G.U. CO., LTD., and as General Manager Fast Retailing in October 2001. Served as General Manager of
of Sales Support Management Division at UNIQLO CO., LTD. Investor Relations, Global Corporate Management and Control.

33
UNIQLO BUSINESS

UNIQLO,
Driving LifeWear
Innovation

Waterproof, windproof, breathable, and

with a durable, water-repellent finish, our
BLOCKTECH parka is part of UNIQLO’s
highly functional outerwear series. Tape
applied over the seams and water-blocking
fasteners stop rain from getting through.
Be comfortable every day.
 UNIQLO BUSINESS MODEL

The Secret to
UNIQLO’s Success

PRODUCTION Warehouses
SALES
and
logistics

Partner
factories Inventory
control

Stores and
stomer Cente online
Takumi
Cu r business

Production
department

CUSTOMERS
Develop-
ment and
procurement
Production of materials
planning
Materials
manufacturers

R&D
Merchandising (Designers/
Pattern makers)
g
e tin
rk
Ma

PLANNING
36
 Create New Demand
LifeWear Resonates With New Functional
Worldwide Materials
UNIQLO’s LifeWear is simple, high-quality, UNIQLO has worked with synthetic fiber
everyday clothing with a practical sense of manufacturer Toray Industries to refine various
beauty. LifeWear enjoys a wide customer base highly functional materials such as our popular
and broad demand because it appeals to thermal HEATTECH garments and our Ultra
people of all ages. LifeWear creation starts with Light Down jackets made with highly dense
the customer. By reflecting customer opinions in material that safely seals the down inside. We
our products, we are able to perfect the details have spent years refining and perfecting these
of our core ranges, achieve a more comfortable functional materials—they have proved very
fit, and swiftly develop clothes to satisfy new hard for our competitors to copy. Products such
needs and trends. LifeWear is always winning as our versatile, cool-feeling AIRism garments
new hearts because it fulfills ever-changing and our BLOCKTECH parkas, with their unique
customer needs. windproof film coating, are the result of
ingenuity and imagination. Developing clothes
with new functionality changes lifestyles and
ignites fresh demand.

World - class Materials

and High Quality at
Reasonable Prices O2O: Linking
UNIQLO’s strength lies in offering reasonably E- commerce and
priced clothing made with outstanding Physical Stores
materials. We negotiate directly with global
producers on long-term, mass orders of UNIQLO offers a full range of exclusive online
superior materials such as cashmere, Supima sizes and products to meet diverse customer
cotton, and merino wool. That enables us to needs. We seek to meld our physical and
secure a more favorable supply than our e-commerce operations. We encourage
competitors and greatly reduce costs. The high customers to collect online orders from nearby
quality of UNIQLO clothing is also underpinned stores, or, if an item is out of stock at their local
by the strong trust built over many years with store, to order it online and have it delivered to
our partner factories. Our production that store, their home, or another preferred
department and factories communicate closely location. Opening new stores in better locations
so that we can immediately address any quality- through our scrap and build policy will help us
related demands from customers and efficiently manage this online-to-offline (O2O)
implement improvements. business. For a brand like UNIQLO with a strong
store network, expanding O2O is a great way to
fuel additional growth.

37
 UNIQLO BUSINESS MODEL

PLANNING

A product planning meeting at our Ariake headquarters

START PRODUCT CONCEPT SELECT AND PROCURE MATERIALS DESIGN SAMPLES

Research & Development Merchandising Development and

(Designers/Pattern Makers) Procurement of Materials

UNIQLO’s R&D centers constantly Merchandisers play a vital role in the UNIQLO can secure stable, high-volume
research the latest in new materials and product creation process, from design supplies of top-quality materials at low
global fashions in addition to developing through production. They communicate cost by negotiating directly with
products to satisfy customer needs. closely with all departments before materials manufacturers worldwide and
Identifying entirely new needs is also an determining the designs and materials placing large-volume orders to achieve
important part of the R&D job. required for each season’s products. the most favorable terms.
One year before a product’s intended Merchandisers also decide how to The materials used for our core items
launch, the R&D department holds a market our strategic product launches in are particularly important. Our in-depth
concept meeting with representatives close cooperation with the appropriate research and experimentation generates
from the merchandising, marketing, and departments. Deciding product lineups improvements in the functionality, feel,
materials development teams to and volumes throughout the year is silhouette, and texture of our clothes.
determine the right design concept for another important part of their role. For example, we work closely with
each season. Designers then prepare Many UNIQLO products are Kaihara Corporation to source denim to
designs and refine samples. Even after a manufactured in huge batches of specific spinning standards and dyeing
design is decided, its color and approximately one million units. Closely specifications. We also partner with
silhouette can be refined multiple times monitoring sales levels and adjusting Toray Industries, a world-leading
before the final design is approved. production volumes during a single synthetic fiber manufacturer, to create
season is another key role of the innovative new fiber and materials, such
merchandising department. as HEATTECH.

38
Production Network Production Department UNIQLO Takumi Teams
UNIQLO does not own any factories. UNIQLO currently has production team “By offering instruction on dyeing
We outsource all production to partner staff and textile takumi (skilled artisans) technology at UNIQLO’s partner
factories, many of which are in China. in Shanghai, Ho Chi Minh City, Dhaka, factories, I can encourage workers to
We have built strong relationships of Jakarta, Istanbul, and Bengaluru. embrace a new production management
trust with our partner factories over Production teams tasked with monitoring philosophy and improve the factories
many years, and hold annual production processes and resolving they work in. Our cultures may be
conventions to promote dialogue with quality and management challenges visit different, but our aim is the same—to
factory managers. We monitor working partner factories each week. The make truly good products.
and environmental conditions at textile production department also swiftly I am proud to be passing on expert
manufacturers and major fabric addresses any quality-related concerns Japanese techniques to the next
suppliers to ensure products are being voiced by customers and implements generation of technicians.”
manufactured correctly. We help improvements if required.
factories implement improvements when
needed. Maintaining a win-win
relationship with partner factories UNIQLO Production Offices
ensures the production of high-quality
products. Istanbul
As UNIQLO expands globally, we
Shanghai
have also formed business relationships Dhaka
with partner factories in other countries, Bengaluru Ho Chi Minh City
Dyer Takumi
including Vietnam, Bangladesh, Kazuaki Iida
Indonesia, and India. Jakarta

FINALIZE DESIGNS SET PRODUCTION VOLUMES START PRODUCTION

PRODUCTION

Knitwear production line at a UNIQLO partner factory

 UNIQLO BUSINESS MODEL

SALES

UNIQLO Ambience Mall, Vasant Kunj store (India)

SHIP TO INDIVIDUAL COUNTRIES AIR TV COMMERCIALS START ADDITIONAL PRODUCTION

Inventory Control Marketing Stores

The inventory control department Each season, UNIQLO conducts UNIQLO Japan had 813 stores (including
maintains the optimum level of store promotional campaigns for core 46 franchise stores) at the end of August
inventory. It does this by monitoring products such as HEATTECH, Ultra Light 2020. UNIQLO International expanded to
sales and stock on a weekly basis, and Down, AIRism, and Bratops. During the 1,439 stores, including 866 in Greater
then dispatching necessary inventory campaigns, UNIQLO advertises the China (Mainland China, Hong Kong, and
and new products to fulfill orders. products’ unique qualities and Taiwan), 163 in South Korea, 248 in
At the end of each season, noteworthy features on TV and in other Southeast Asia & Oceania, 100 in
merchandisers and the marketing media. In Japan, we use email, social Europe, and 62 in North America. We
department work together to coordinate media, and flyers delivered with national have been accelerating new store
the timing of any price changes to help newspapers to notify customers about openings primarily in Greater China and
ensure that inventory sells out. limited-period discounts, typically of Southeast Asia.
20% to 30%, on new seasonal ranges.

Winter 2020
UNIQLO Fleece

Promotional flyer TV commercial UNIQLO roadside store

40
 E- commerce
The importance of our e-commerce operation is growing as more
customers enjoy shopping both online and in stores. In FY2020,
online sales accounted for approximately 15% of total sales.
Geographically, online sales accounted for roughly 13% of total
sales in Japan, 20% in Greater China, 10% in Southeast Asia &
Oceania, 20% in Europe, and 40% in North America. Going forward,
we will further expand complementary online and offline services,
and target 30% annual growth in online sales.

Customer Center
Our customer center analyzes huge volumes of requests and
comments from customers, a vital part of improving our clothing
ranges and developing new products. For instance, in FY2020, we
received many requests from customers in the wake of COVID-19 to
create a face mask made from highly functional AIRism material.
Going forward, the customer center will further improve its collection
and analysis of customer opinions, and strengthen communication
links with the production and planning departments.

IN-STORE SALES AND E-COMMERCE CUSTOMERS

UNIQLO TOKYO (Japan)

Photos left and right:

UNIQLO Kungsträdgården store (Sweden)
 UNIQLO GLOBAL PRESENCE

Global Total

2,306 STORES
(As of December 31, 2020)

STOCKHOLM

Expand LifeWear Globally

for Everyone to Enjoy
PARIS

NEW DELHI

42
 SHANGHAI

CHICAGO

TOKYO

43
UNIQLO GLOBAL PRESENCE

Rapid Rebound:
Further Growth
for Greater China
MAINLAND CHINA

UNIQLO Taikoo Li Sanlitun store

 10
Heilongjiang

Inner 9
Mongolia Beijing Jilin Greater China
23
8
67 Tianjin
Store Network

903
Liaoning
Mainland
20
Ningxia
Hebei China
Shanxi STORES
2 17 Shandong
15
802
Qinghai
37 +55 YoY
3 Gansu
Henan
(December 31, 2020)
Shaanxi Jiangsu
2 27
24 72 Shanghai
Anhui
Sichuan Chongqing
Hubei

26 17 82
35 20 Zhejiang
Hunan 61
Jiangxi
Guizhou 24
14
6 Fujian
Yunnan 25
70
Guangdong
(Guangzhou, Shenzhen)
16 12
Guangxi
124 31 Taiwan

4
Hong Kong
Hainan

Greater China (Mainland China, Hong Kong, and

Taiwan) revenue and profit declined in FY2020 due to
COVID-19, but the market recovered strongly after the
virus was brought under control. The FR Group’s
CEO, Mr. Yanai, always says we should turn adversity
into opportunity, so after sharing those words with our Ning Pan
store staff, we strengthened our customer service and CEO, UNIQLO Greater China
sent a strong message of support through donations Group Senior Executive Officer, Fast Retailing Co., Ltd.
of warm clothing and other social initiatives.
The global economy will face multiple uncertainties
going forward, but I believe demand will continue to
expand in Greater China. Growth potential is rising to ensure shopping with us is enjoyable for our
thanks to an expanding middle-income population customers. I also want to further expand e-commerce
with a strong desire to purchase new apparel. As from the current 20% of total sales. We will continue
UNIQLO already enjoys strong support as a provider opening new stores in what China unofficially calls its
of essential daily goods, this presents a great “Tier 1” cities (Beijing, Shanghai, Guangzhou, and
opportunity to expand our business. The popularity of Shenzhen) while also aggressively opening stores in
UNIQLO’s LifeWear will increase because it enhances “Tier 2” cities such as Hangzhou, Nanjing, Wuhan,
the comfort of days spent at home, even in the age of Zhengzhou, Xi’an, Chengdu, and Chongqing where
the coronavirus. purchasing power is expected to rise.
We continue to expand our online-to-offline (O2O) Greater China generated sales of ¥455.9 billion in
services to meld our physical store and e-commerce FY2020. I want to double this performance to achieve
network. For instance, customers can choose to pick sales of ¥1 trillion in the near future. Our aim is to
up their online purchases at a nearby UNIQLO store. consolidate UNIQLO’s position as the number one
Alternatively, if a store does not have the product a apparel brand in Greater China and help it become a
visiting customer wants, in-store staff will help number one brand globally as well. All Greater China
purchase the desired item online and decide the best stores will join forces to continue offering LifeWear
delivery method. This two-way service helps boost that delights our customers.
sales. Going forward, I will address various challenges

45
UNIQLO GLOBAL PRESENCE

VIETNAM

UNIQLO Dong Khoi store (first store in Vietnam)

A Strong Start
in Promising
Vietnam India

6 Thailand 53
Vietnam

6
Philippines

62
Malaysia 52
26 Singapore

Having opened its first store in Ho Chi Minh City in

December 2019, UNIQLO Vietnam currently boasts three
35
South and
Southeast Asia & Indonesia
stores in Ho Chi Minh City and three in Hanoi. UNIQLO’s
Oceania Stores
extremely high brand visibility in Vietnam is attracting far
more customers than originally predicted.
UNIQLO South, Southeast Asia & Oceania (Southeast
Asia, India, and Australia) reported large revenue and profit
265
+19 YoY
STORES
25
Australia

declines in FY2020 due to COVID-19, but Vietnam turned (December 31, 2020)
a profit in the second half (March to August) after seeing a
high level of customer support for the UNIQLO brand.
We have many young customers in Vietnam who are
extremely interested in fashion and health, and
consequently focus on clothes that offer functionality and
fashionability. Local consumers trust the superior
materials, high quality, and high functionality of UNIQLO’s
LifeWear, with AIRism, UV-cut parkas, HEATTECH, and
Ultra Light Down ranges proving especially popular. Our
strong start in Vietnam was underpinned by strategic
planning based on early research into local market
characteristics. We also focused on employee training,
teaching new store managers about UNIQLO’s corporate
DNA during sessions in Japan and Singapore, which
contributed greatly to the successful launch.
Vietnam harbors great potential as one of the key
developing markets in Asia. To harness that potential, we
must enhance our product ranges to suit the local climate
and focus on human resource training to facilitate the
steady opening of new stores. At the same time, we must
strengthen Vietnam’s role as a production base for
UNIQLO. Our aim is to create opportunities for talented,
hard-working people by building a robust supply chain and
developing local operations, something we hope will also
contribute to the country’s overall economic development.

47
 UNIQLO GLOBAL PRESENCE

JAPAN UNIQLO TOKYO global flagship store

Strong Localized Stores

Recharge UNIQLO Japan
To date, UNIQLO has expanded high-profitability Yokohama Bay area in April, boasts a sloping roof park
operations through chain-store management, but that with access to each floor. Families can enjoy leisurely
has limitations when it comes to understanding local shopping mixed with time in the park: a space for active
customer needs and furnishing product lineups and fun that can nurture an appreciation for good clothing.
services that meet those needs. Since becoming the Our UNIQLO Harajuku store, which opened in June
UNIQLO Japan CEO, I have focused on strengthening opposite the new-look JR Harajuku Station, serves as a
our local store management strategy, which affords base for conveying a unique style of pop culture that
each individual store greater significance and autonomy. fuses the best elements of our physical stores and
We opened three unique stores in 2020 to help online operations. The store houses one of the world’s
refine our UNIQLO branding. The UNIQLO PARK largest dedicated UT printed T-shirt sales spaces and
Yokohama Bayside store, which opened in the attracts customers of all ages.

48
 Also opened in June 2020, UNIQLO TOKYO is Japan’s
largest global flagship store spanning approximately 5,000
square meters over four floors (1F-4F) in the Marronnier
Gate Ginza 2 building in Yurakucho. The store features a
stunning atrium space, designed by Swiss architectural
firm Herzog & de Meuron, that soars up through all four
floors. The basic concept is “beautifying the world from
Tokyo.” The focus is on letting customers experience
LifeWear, and telling stories about how great UNIQLO
products are, from craft skills and lifestyle concepts to the
careful selection and development of materials.
These three new stores will have a positive impact on
existing regular and large-format stores, because we can
pass on successful strategies for attracting customers,
product presentation, and in-store displays. By adding
fresh appeal to UNIQLO’s existing strengths, all our stores
can develop into truly essential local community hubs. I
believe strengthening local store management will prove
to be a key driver of further growth.
Maki Akaida
CEO, UNIQLO Co., Ltd.
Group Executive Officer, Fast Retailing Co., Ltd.

UNIQLO PARK Yokohama Bayside store UNIQLO Harajuku store

49
 UNIQLO TOPICS

TOPIC
01 For Sports and Everyday Life

Sport Utility Wear is a new concept from UNIQLO. A

combination of functionality and design provides seamless
versatility. Sport Utility Wear offers the right functionality for
running before or after work, working out at the gym, doing
yoga, and many other activities. Its attractive designs are
also great for everyday wear.
Top athletes trust our DRY-EX material, which quickly
dries perspiration, making it easier to stay active. Our ultra
stretch active shorts are elastic in all directions and have a
soft, light feel.
Sport Utility Wear includes items that can be used in
various day-to-day situations. Our compact and portable
pocketable UV protection parka guards against UV rays
and keeps light rain at bay with its durable water-repellent
properties. Meanwhile, our stylish ultra stretch dry sweat
long-sleeve hoodie can be worn as activewear or
streetwear. UNIQLO Sport Utility Wear helps people
everywhere live healthy, radiant everyday lives.

50
 UNIQLO TOPICS

TOPIC
02 +J Returns, Defining a Global Modern Uniform

Eleven years after our first joint collection, legendary

fashion designer Jil Sander has brought her modern style
back to UNIQLO in 2020. The long-awaited 2020 Fall
Winter +J collection features high-quality tailoring with
sculpted designs that offer both beautiful balance and
comfortable fit. Inspired by her belief that clothes should
be long lasting and have an enduring appeal, Jil Sander
has created a collection that could serve as a global
modern uniform.
“I believe the role people expect clothes to play in
today’s era is to boost the energy and confidence of all Jil Sander @Peter Lindbergh
who wear them,” explains Ms. Sander.
Jil Sander
The 2020 +J collection consists of versatile items that
Ms. Jil Sander founded the Jil Sander brand in 1968. She
reflect UNIQLO and Jil Sander’s joint respect for timeless
has participated in the Milan Fashion Week since the
design. +J’s distinctive lines are perfect for the current 1980s, and achieved international success with her
times, creating flowing motion and rich, three-dimensional forward-thinking designs. In 2009, she released the
silhouettes. By focusing on material weave and surface acclaimed +J collection with UNIQLO based on an “Open
the Future” clothing concept. After wrapping up in 2011,
processing, and by pursuing ultimate comfort, the joint
the sorely missed collection has returned in 2020.
collection has been successful in its quest to create
*+J is a joint collection between UNIQLO and designer Ms. Jil Sander,
sophisticated, essential clothing for all. and has no affiliation to the Jil Sander brand.

52
GU BUSINESS
Refining Our Approach
to Low- priced Fashion
GU reported higher revenue but lower profit in FY2020
as COVID-19 forced temporary store closures.
Revenue rose 3.1% to ¥246.0 billion and operating
profit declined 22.5% to ¥21.8 billion. Some people
considered fashion to be nonessential during these
times, but I got the opposite impression. E-commerce
sales doubled year on year during Japan’s COVID-
induced state of emergency period from March to
May 2020, and same-store sales recovered by a
larger-than-expected 16.4% in June once stores
reopened for business. Sales of on-trend fashion
items were uniformly strong, with trendy comfortable
clothing such as our loose-fitting chef’s pants and
loose-waisted dresses selling well.
In addition, with people spending more time at
home, popular items included pajamas, loungewear,
and other apparel strategically priced as low as ¥990.
We offered more seasonal products in 2020 Fall
Osamu Yunoki
Winter that could be worn for longer by adapting the
CEO, G.U. CO., LTD.
way they were styled, hoping to satisfy the needs of Group Senior Executive Officer, Fast Retailing Co., Ltd.
customers who wanted to enjoy fashion without
spending much money. Being able to keep an outfit
for longer and wear it in many different situations is
easy not only on the wallet but also on the promote recycling for a more sustainable business.
environment. I want to ensure GU responds properly The importance of online sales continues to grow,
to today’s demands for a more sustainable society. but, after witnessing the smiling customers entering
We unveiled our Three Connections Declaration to our stores once they reopened, I feel sure people will
help us create great clothes and a great future in which never stop enjoying shopping in physical stores. It is
we connect with consumers, producers, and the Earth. important to boost the respective benefits of in-store
First, we will listen to consumers’ opinions, exploring and online shopping and to gradually fuse those
what they want in order to develop clothes that operations. We are expanding “click and collect” and
combine GU fashion and practicality. Second, by other services, and opening new stores that can
finding solutions with partner factories that result in generate potential e-commerce synergies.
fresh technological innovation, we will produce new My belief that fashion is indestructible, whatever
high-quality products at pleasing prices. And third, by the circumstances, has not wavered. Harnessing our
accurately understanding demand and thinking Your Freedom concept, which emphasizes freedom of
creatively about production, distribution, and retail, we expression through clothing, and our distinct
will create a leaner supply chain. We will also introduce Japanese identity, GU will keep delivering the clothes
more environmentally conscious materials and that customers truly need.

55
OUR GLOBAL BRANDS
Theory

Consistently Elegant
Contemporary Fashion
Launched in New York in 1997, Theory is a contemporary
fashion brand for the modern consumer. The brand’s
acclaimed comfort and unfailingly elegant style stem from
its perfectly fitting designs and superior materials. The
Theory luxe brand, meanwhile, offers true, relaxed comfort.
At the end of August 2020, Theory boasted 460 stores.

PLST

Top-quality Clothing for

Comfortable Everyday Life
The PLST brand offers everyday clothes of superlative
quality made with careful attention to fabric, texture, and
style to suit any occasion. PLST is popular with fashion-
sensitive consumers of all ages who like the brand’s
reasonable prices and versatile designs.

Comptoir des Cotonniers

Princesse tam.tam

The Ideal Wardrobe Full

A Graceful French Brand
of French Esprit
That Celebrates You
Founded in 1995 in France, Comptoir des Cotonniers
Princesse tam.tam (PTT) is a French brand renowned for (CDC) is an affordable luxury brand loved by countless
its original prints and bright colors. The PTT brand women. Nathalie Marchal joined CDC as creative
concept of “lingerie that lets your own personality shine director from the 2020 Spring Summer season after a
through” resonates with many women. PTT boasts a long career as editor and stylist at fashion magazines
wide range of lines spanning lingerie, loungewear, such as Vogue. She is now transforming CDC into an
swimwear, and sportswear. even more appealing brand.

57
 FY2020 BUSINESS PERFORMANCE

SNAPSHOT
Consolidated revenue totaled ¥2.0088 trillion (-12.3% year on year), operating profit totaled
¥149.3 billion (-42.0%). Business greatly impacted by temporary store closures and
voluntary worldwide stay-at-home practices in the face of COVID-19.
E-commerce sales rose considerably (UNIQLO Japan rose approx. 30%,
UNIQLO International rose approx. 20%, and GU rose approx. 60%).
GLOBAL
Sharp decline in UNIQLO International full-year revenue and profit but BRANDS
UNIQLO Greater China performance started to recover from June onwards. ¥ 109.6
While UNIQLO Japan full-year revenue declined, sales recovered sharply billion

from June, helping the segment record a full-year profit gain.

GU revenue rose but profit fell. Strong profit rise in the first half
3,630
STORES
was followed by sharp profit decline in the second half. 3,589
3,445 GU*
3,294 ¥ 246.0
Sales by Business Segment 3,160
billion

2,978
GLOBAL BRANDS

5.5% UNIQLO JAPAN 2,753 UNIQLO

( ¥ 109.6 billion ) INTL
40.2% 2,449 ¥ 843.9
GU ( ¥ 806.8 billion ) billion
2,222
12.3% 2,258 2,203
2,088
( ¥ 246.0 billion )
1,958

UNIQLO 1,828
INTERNATIONAL
1,632
42.0%
( ¥ 843.9 billion )
1,232

UNIQLO
JAPAN
655 ¥ 806.8
Revenue and Store Numbers billion
622
585
519
433
368
336
276
229
176
118
90
7 29 62

FY ‘84 ‘91 ‘92 ‘93 ‘94 ‘95 ‘96 ‘97 ‘98 ‘99 ‘00 ‘01 ‘02 ‘03 ‘04 ‘05 ‘06 ‘07 ‘08 ‘09 ‘10 ‘11 ‘12 ‘13 ‘14 ‘15 ‘16 ‘17 ‘18 ‘19 ‘20
*GU was reported under the Global Brands business segment through FY2016. In FY2017, we began disclosing GU performance as a separate independent business segment.

58
UNIQLO JAPAN UNIQLO INTERNATIONAL
FY2020 Results FY2020 Results

Revenue
¥ 806.8 billion
YoY
- 7.6%
Revenue
¥ 843.9 billion
YoY
- 17.7%

Operating
profit ¥ 104.6 billion
YoY
+ 2.2%
Operating
profit ¥ 50.2 billion
YoY
- 63.8%

Future Outlook Future Outlook

Develop products to suit changing customer Greater China and Southeast Asia & Oceania
lifestyles, build more attractive shopping (Southeast Asia, India, and Australia) to continue
environments for customers, and further increase driving segment growth thanks to extremely
sales by expanding services that unify physical strong brand positioning in those markets. Plan to
store and e-commerce operations. open 100 stores in Greater China and 40 stores
in Southeast Asia & Oceania each year.
Pursue Ariake Project and 15% operating profit
margin. Raise profitability: increase accuracy of Foster deeper empathy for our LifeWear concept
demand forecasts and sales plans, minimize shortages by compiling product mixes that satisfy local
of strong-selling items, and prevent excess inventory. customer needs in different parts of the world,
Reform entire chain: timely production increases, and build a network of better-located, more
efficient distribution and store management. profitable stores.

GU GLOBAL BRANDS
FY2020 Results FY2020 Results

Revenue
¥ 246.0 billion
YoY
+ 3.1%
Revenue
¥ 109.6 billion
YoY
- 26.9%

Operating
profit ¥ 21.8 billion
YoY
- 22.5%
Operating
profit ¥ - 12.7 billion
YoY
-%

Future Outlook Future Outlook

Strengthen GU’s unique ability to offer fun fashion at Aim to achieve stable growth for our Theory
amazingly low prices. Focus on developing mass- operation by expanding product ranges that stay
trend fashion products and reduce lead times by abreast of changing customer lifestyles.
strengthening our development, concentrated
buying and stockpiling of raw materials so we can Seek to expand PLST operation in Japan as a
expand our range of low-priced items. reasonably-priced brand.

As part of the Ariake Project, we will strengthen Aim to improve profitability by implementing
supply-chain functions to help grasp and analyze structural reforms at Comptoir des Cotonniers and
fashion trends early and reflect them in product Princesse tam.tam operations.
design and volume planning.

59
 FY2020 FINANCIAL OVERVIEW

UNIQLO International’s
Revenue Contribution to Revenue

¥2.008 trillion -12.3% 42.0% -2.9pt

(trln yen)
Global Brands
2.40 ¥2.008
trillion ¥109.6 billion
2.00 GU ( 5.5%)

1.60 ¥246.0 billion

(12.3%)
1.20

0.80 UNIQLO Japan

UNIQLO ¥806.8 billion
0.40 International ( 40.2%)
0 ¥843.9 billion
( 42.0%)
(FY) ‘10 ‘11 ‘12 ‘13 ‘14 ‘15 ‘16 ‘17 ‘18 ‘19 ‘20
JGAAP IFRS

Consolidated revenue fell 12.3% year on year to ¥2.008 trillion. This UNIQLO International’s contribution to total revenue declined by 2.9
large decline was due to the temporary closure of stores worldwide points to 42.0%, primarily due to heavy falls in sales in the segment’s
and many consumers staying at home in the face of COVID-19. large-scale markets of Greater China and South Korea.
However, sales started to recover from June primarily in Japan and
Greater China.

Operating Profit Earnings per Share

¥149.3 billion -42.0% ¥885.15 -44.4%

Business profit Operating profit
(bln yen) (yen)
300 1,800

250 1,500

200 1,200

¥170.0 ¥885.15
150 900
billion
100 600
¥149.3
50 billion 300

0 0
(FY) ‘10 ‘11 ‘12 ‘13 ‘14 ‘15 ‘16 ‘17 ‘18 ‘19 ‘20 (FY) ‘10 ‘11 ‘12 ‘13 ‘14 ‘15 ‘16 ‘17 ‘18 ‘19 ‘20
JGAAP IFRS JGAAP IFRS

Declined by a sharp 42.0% year on year to ¥149.3 billion due partly to Our basic earnings per share (EPS) declined by 44.4% year on year to
COVID-19 but also to the recording of a ¥23.0 billion impairment loss ¥885.15 in FY2020 on the back of the large decline in operating profit.
on stores, mainly at UNIQLO International.

60
 Ratio of Equity Attributable to
ROE Owners of the Parent to Total Assets

9.5% -8.5pt 39.7% -7.0pt

(%) (%)
30.0 90.0

25.0 75.0

20.0 60.0

15.0 45.0
39.7
10.0
9.5 30.0 %

%
5.0 15.0

0.0 0.0
(FY) ‘10 ‘11 ‘12 ‘13 ‘14 ‘15 ‘16 ‘17 ‘18 ‘19 ‘20 (FY) ‘10 ‘11 ‘12 ‘13 ‘14 ‘15 ‘16 ‘17 ‘18 ‘19 ‘20
JGAAP IFRS JGAAP IFRS

ROE declined 8.5 points to 9.5% following a large decline in profit with Decreased by 7.0 points to 39.7%. Having adopted IFRS 16
profit attributable to owners of the Parent falling 44.4% year on year. accounting standards, we recorded right-of-use assets on the
balance sheet, resulting in a ¥399.9 billion increase in total assets
and a decline in the ratio.

Cash and Cash Equivalents Dividend per Share

¥1.093 trillion +0.6% ¥480 0

Free cash flow (left) Cash and cash equivalents (right) Dividend per share (left) Dividend payout ratio (right)
(bln yen)
500
¥1.093 (trln yen)
1.25
(yen)
600
(%)
90.0
trillion

400 1.00 500

¥480 75.0

300 ¥188.8 0.75 400 60.0

billion 54.2
200 0.50 300 % 45.0

100 0.25 200 30.0

0 0 100 15.0

-100 0 0.0
(FY) ‘10 ‘11 ‘12 ‘13 ‘14 ‘15 ‘16 ‘17 ‘18 ‘19 ‘20 (FY) ‘10 ‘11 ‘12 ‘13 ‘14 ‘15 ‘16 ‘17 ‘18 ‘19 ‘20
JGAAP IFRS JGAAP IFRS

Cash and cash equivalents totaled ¥1.093 trillion. Free cash flow (FCF) The dividend per share stood at ¥480. While profit attributable to
totaled ¥188.8 billion (¥264.8 billion generated by operating activities owners of the Parent declined sharply, we offered the same dividend
minus ¥75.9 billion used in investing activities). Cash spent on financial as FY2019 after considering our medium-to-long term business
activities totaled ¥183.2 billion. growth potential and current cash flow situation. The dividend payout
ratio was 54.2%.

*The negative FCF in FY2016 included a ¥186.5 billion investment in deposits with over *The high FY2016 dividend payout ratio was caused by yen appreciation, which resulted
three-month maturities. in the recording of minus ¥37.0 billion under finance income net of costs and a sharp
decline in EPS.
61
 FINANCIAL INFORMATION

FINANCIAL SUMMARY
FAST RETAILING CO., LTD. and consolidated subsidiaries
Millions of yen
Fiscal years ended August 31

JGAAP
2011 2012 2013 2014

For the year

Net sales/Revenue ¥ 820,349 ¥ 928,669 ¥1,142,971 ¥1,382,935
Operating income/Operating profit 116,365 126,450 134,101 130,402
EBITDA*1 141,716 150,687 157,708 161,210
Income before income taxes and minority interests/
93,881 123,390 155,732 135,470
Profit before income taxes
Net income/Profit attributable to owners of the Parent 54,354 71,654 104,595 74,546

Net cash generated by operating activities 57,158 127,643 99,474 110,595

Net cash (used in)/generated by investing activities (26,643) (35,313) (62,584) (56,323)
Free cash flow*2 30,515 92,330 36,890 54,272
Net cash (used in)/generated by financing activities (26,156) (29,056) (24,226) (44,060)
Cash and cash equivalents*3 202,104 266,020 296,708 314,049

Depreciation and amortization 18,755 18,573 23,607 30,808

Capital expenditures 33,993 40,184 39,681 58,814

At year-end
Total assets ¥ 533,777 ¥ 595,102 ¥ 901,208 ¥ 992,307
Total net assets/Total equity 319,911 394,892 589,726 636,041
Interest-bearing debt 28,263 23,194 37,259 37,561

Reference indices
Operating income margin/Operating profit margin (%) 14.2% 13.6% 11.7% 9.4%
ROE/Ratio of profit to equity attributable to owners of the Parent (%) 18.1 20.4 21.7 12.5
Equity ratio/Ratio of equity attributable to
59.0 65.0 63.3 62.3
owners of the Parent to total assets (%)
Debt-equity ratio (%) 9.0 6.0 6.5 6.1
Dividend payout ratio (%) 33.7 37.0 28.2 41.0

Per share data (actual yen, dollar amount)

Net income/Profit attributable to owners of the Parent (EPS) ¥ 533.93 ¥ 703.62 ¥ 1,026.68 ¥ 731.51
Net assets/Equity attributable to owners of the Parent 3,091.17 3,797.04 5,598.12 6,067.40
Cash dividends 180.00 260.00 290.00 300.00

Other data (at fiscal year-end)

Number of shares outstanding 106,073,656 106,073,656 106,073,656 106,073,656
Market capitalization (¥ billion, $ million)*4 ¥ 1,535.9 ¥ 1,938.0 ¥ 3,383.7 ¥ 3,452.6
Number of subsidiaries 98 91 102 112
Total number of stores 2,088 2,222 2,449 2,753
Total sales floor space (m2)*5 938,896 1,170,353 1,387,367 1,835,095
Number of full-time employees*6 14,612 18,854 23,982 30,448
*1 EBITDA (JGAAP) = Operating income + Depreciation and amortization + Amortization of goodwill
EBITDA (IFRS) = Operating profit + Depreciation and amortization. Depreciation and amortization of right-of-use assets has been included
in the depreciation and amortization total from the year ending August 31, 2020 following the appliciation of IFRS 16.
*2 Free cash flow = Net cash generated by operating activities + Net cash (used in)/generated by investing activities

62
 Thousands of
Millions of yen U.S. dollars*4

IFRS
2015 2016 2017 2018 2019 2020 YoY 2020

¥1,681,781 ¥1,786,473 ¥1,861,917 ¥2,130,060 ¥2,290,548 ¥2,008,846 (12.3)% $19,061,069

164,463 127,292 176,414 236,212 257,636 149,347 (42.0) 1,417,091
202,221 164,089 216,102 281,267 306,112 327,195 +6.9 3,104,618

180,676 90,237 193,398 242,678 252,447 152,868 (39.4) 1,450,501

110,027 48,052 119,280 154,811 162,578 90,357 (44.4) 857,366

134,931 98,755 212,168 176,403 300,505 264,868 (11.9) 2,513,220

(73,145) (245,939) 122,790 (57,180) (78,756) (75,981) (3.5) (720,952)
61,786 (147,184) 334,958 119,223 221,748 188,887 (14.8) 1,792,268
(41,784) 201,428 (50,836) 198,217 (102,429) (183,268) +78.9 (1,738,959)
355,212 385,431 683,802 999,697 1,086,519 1,093,531 +0.6 10,376,046

37,758 36,797 39,688 45,055 48,476 177,848 +266.9 1,687,527

62,461 52,387 59,755 69,380 85,201 82,736 (2.9) 785,050

¥1,163,706 ¥1,238,119 ¥1,388,486 ¥1,953,466 ¥2,010,558 ¥2,411,990 +20.0% $22,886,335

774,804 597,661 762,043 902,777 983,534 996,079 +1.3 9,451,370
38,035 283,465 281,512 544,502 513,405 484,496 (5.6) 4,597,175

9.8% 7.1% 9.5% 11.1% 11.2% 7.4% (3.8) pts. 7.4%

16.1 7.3 18.3 19.4 18.0 9.5 (8.5) 9.5

64.5 46.4 52.7 44.2 46.7 39.7 (7.0) 39.7

5.1 49.3 38.5 63.1 54.7 51.0 (3.7) 51.0

32.4 74.3 29.9 29.0 30.1 54.2 +24.1 54.2

¥ 1,079.42 ¥ 471.31 ¥ 1,169.70 ¥ 1,517.71 ¥ 1,593.20 ¥ 885.15 (44.4)% $ 8.40

7,366.07 5,634.35 7,175.35 8,458.52 9,196.61 9,368.83 +1.9 88.90
350.00 350.00 350.00 440.00 480.00 480.00 — 4.55

106,073,656 106,073,656 106,073,656 106,073,656 106,073,656 106,073,656 — 106,073,656

¥ 5,225.7 ¥ 3,854.7 ¥ 3,338.1 ¥ 5,495.6 ¥ 6,602.0 ¥ 6,712.3 +1.7% $ 63,690
119 120 121 130 133 134 +1 134
2,978 3,160 3,294 3,445 3,589 3,630 +41 3,630
2,030,031 2,188,688 2,392,618 2,671,629 2,881,485 3,047,360 +165,875 3,047,360
41,646 43,639 44,424 52,839 56,523 57,727 +1,204 57,727
*3 Cash and cash equivalents = cash and bank deposits + term deposits of less than 3 months + securities
*4 Calculations are based on the closing share price of ¥63,280 at the end of August 2020 and an exchange rate of ¥105.39 to US $1.
*5 Total sales floor space includes only directly operated stores.
*6 The total number of employees does not include operating officers, junior employees, part-time workers, or temporary staff seconded from other companies.

63
 CFO MESSAGE

Accelerate Ariake Project,

Expand Operations,
Maintain Financial Soundness

Takeshi Okazaki
Director
Group Senior Executive Officer and CFO
Fast Retailing Co., Ltd.

Business Performance Review and Outlook UNIQLO International, which reported revenue of ¥843.9 billion
(-17.7%) and operating profit of ¥50.2 billion (-63.8%). Within
The new COVID-19 pandemic that ravaged the globe in FY2020 that segment, the United States and Europe both reported
also greatly impacted Fast Retailing Group performance. Many losses after being especially hard hit by COVID-19. The United
stores in different parts of the world had no choice but to States loss was further bloated by the recording of impairment
temporarily close their doors or shorten opening hours between losses. In contrast, while Greater China and Southeast Asia
February and June in the face of stay-at-home practices and saw profits plummet, performance recovered at a faster pace
restricted activities. Performance during that period worsened than expected from June onwards. UNIQLO Japan and GU
rapidly, resulting a 12.3% year-on-year decline in FY2020 were also hit hard by COVID-19, with UNIQLO Japan revenue
consolidated revenue to ¥2.0088 trillion and a 42.0% drop in totaling ¥806.8 billion (-7.6%) and operating profit ¥104.6 billion
operating profit to ¥149.3 billion. That overall worsening was (+2.2%) and GU revenue totaling ¥246.0 billion (+3.1%) and
caused primarily by large declines in revenue and profit at operating profit ¥21.8 billion (-22.5%). However, sales

Performance by Group Operation

(FY) 2019 2020

YoY change % YoY change %
Billions of yen Billions of yen
Billions of yen change Billions of yen change

Revenue ¥ 872.9 ¥ 8.1 +0.9 ¥806.8 ¥ (66.0) (7.6)

UNIQLO Japan
Operating profit 102.4 (16.5) (13.9) 104.6 +2.2 +2.2
Revenue 1,026.0 +129.7 +14.5 843.9 (182.0) (17.7)
UNIQLO International
Operating profit 138.9 +20.0 +16.8 50.2 (88.6) (63.8)
Revenue 238.7 +26.9 +12.7 246.0 +7.3 +3.1
GU
Operating profit 28.1 +16.3 +139.2 21.8 (6.3) (22.5)
Revenue 149.9 (4.5) (2.9) 109.6 (40.3) (26.9)
Global Brands*
Operating profit 3.6 +7.8 — (12.7) (16.4) —

*Global Brands includes Theory, PLST, Comptoir des Cotonniers, Princesse tam.tam, and J Brand.
Note: Consolidated revenue also includes items reported by Fast Retailing Co., Ltd., the Parent company, such as real estate leasing.
Consolidated operating profit includes Fast Retailing operating profit.

64
recovered strongly from June onwards, enabling us to Retailing operations, forcing us to suddenly close store doors
minimize the impact of the pandemic on performance. on a large scale and adversely impacting near-term
Regarding FY2021, we forecast a higher-than-expected performance. However, lifestyle changes sparked by COVID-19
increase in first-half profit even on a consolidated basis thanks are also rapidly accelerating the environmental changes Fast
to continued strong performances from operations less Retailing had assumed in its medium-term growth strategy, in a
affected by COVID-19, such as UNIQLO Japan and UNIQLO positive sense. Now is the time to aggressively pursue our
Greater China. We also forecast large second-half revenue and medium-term growth strategy to help ensure dramatic post-
profit gains on the premise that COVID-19 will be steadily COVID growth. We are currently working hard to further
brought under control. Our business estimates could change improve the quality of LifeWear, boost global branding
considerably due to difficulties with envisaging the future investment, unify our e-commerce and physical store networks,
COVID-19 situation. At this point, we expect full-year and channel investment into IT and automation to create a
consolidated revenue of ¥2.2000 trillion (+9.5%), operating more advanced supply chain. We are also focusing on
profit of ¥245.0 billion (+64.0%), profit before income taxes of expanding store networks primarily in Greater China and
¥245.0 billion (+60.3%), profit attributable to owners of the Southeast Asia, implementing upgraded store networks in all
Parent of ¥165.0 billion (+82.6%), net earnings per share (EPS) markets, and hiring and training human resources to build new
of ¥1,616.05, and a steady dividend of ¥480 per share (¥240 organizational capabilities.
interim and year-end dividends). We must also focus tirelessly on low-cost management to
maintain our strong competitiveness. Fast Retailing pursues
Ariake Project corporate transformation in tandem with
Forge Ahead With Operational Reform structural reform of business expenses. So far, we have
Through Aggressive Management, successfully lowered distribution costs thanks to significantly
Pave the Way for Future Growth higher inventory efficiency, increased store productivity,
improved business productivity and efficiency, standardized
To achieve our Group’s medium-term vision as a digital and digitized business processes, and improved the cost-
consumer retailing company to become the world’s No.1 effectiveness of individual expenditures by strengthening the
apparel retailer, we have identified four core medium-term organizational power of our purchasing department. We will
growth strategies that we are currently striving to achieve: further accelerate these efforts, reviewing unprofitable
1) Create and expand new clothing demand based on our businesses and stores and pursuing sound investments that
LifeWear concept, 2) Advance as a passionately customer- consistently improve SG&A ratios.
centric company that maximizes the power of digital tools Our operating profit margin had been improving
(Ariake Project), 3) Expand branding and individual operations consistently, but it dropped back temporarily to 7.4% in FY2020
worldwide, and establish overwhelmingly competitive due to COVID-19. We expect the margin will rise to 11.1% in
operational bases, especially in Asia, and 4) Reform operations FY2021 on the back of a significant recovery in performance.
to help realize a sustainable society. Going forward, we aim to continue growing sales and to bring
The COVID-19 pandemic has proved an ordeal for Fast the operating profit margin swiftly up to 15%.

Operating Profit by Group Operation

UNIQLO
（億円） Japan UNIQLO
（億円） International GU
（億円） Global
（億円） Brands
1,200 1,200 1,200 1,200

900 900 900 900

¥104.6
billion

600 600 600 600

¥50.2
billion
¥21.8
300 300 300 300
billion
¥ -12.7
billion

0 0 0 0
(FY) 2017 2018 2019 2020 (FY) 2017 2018 2019 2020 (FY) 2017 2018 2019 2020 (FY) 2017 2018 2019 2020

65
 CFO MESSAGE

Increase Value-generation Power of Cash to at the end of August 2020, an appropriate level that equates to
Effectively Secure Shareholder Returns, roughly four months of our ¥3 trillion medium-term annual sales
Growth Investment, and Ready Liquidity target.
Returning a portion of our profits to shareholders is a top
Fast Retailing’s financial strategy focuses on maintaining priority. Our policy is to pay consistent and appropriate
financial stability, maximizing free cash flow, and effectively dividends that reflect corporate performance and consider
utilizing that cash to secure shareholder returns, growth operational funding requirements and financial soundness. We
investment funds, and liquidity. We strive to hold three to five paid a dividend of ¥480 per share in FY2020 (54.2% annual
months’ worth of monthly sales as working capital and risk dividend payout ratio). While COVID-19 resulted in a temporary
capital funds to deal with any unforeseen circumstances. The shortfall in profits, the dividend level was in line with our policy
balance of cash and cash equivalents stood at ¥1.0935 trillion given expectations for a recovery in performance.

Cash Flow Information (billions of yen)

Operating
Effect of exchange
cash flows
Cash and cash rate changes on Cash and cash
equivalents at +264.8 cash and cash equivalents at
beginning of year equivalents end of year
1,086.5 +1.3 1,093.5
Investing
cash flows
Financing
( 75.9 ) cash flows
(183.2 )

September 1, 2019 August 31, 2020

A Solid Balance Sheet to Parent to total assets (shareholders’ equity ratio) decreased 7.0
Support Sustainable Growth points to 39.7%. We aim to boost the medium to long-term
ratio to roughly 50% by steadily accumulating profits through
Total assets increased ¥401.4 billion to ¥2.4119 trillion at the business activities.
end of August 2020 due primarily to the adoption of IFRS 16 ROE has traditionally tracked between 15% and 20% but
from FY2020, which resulted in the recording of ¥399.9 billion declined 8.5 points to 9.5% in FY2020 as profit attributable to
in right-of-use assets (recording future lease obligations on owners of the Parent fell sharply in the face of COVID-19. We
lease contracts for stores, warehouse, offices, etc. as assets). expect ROE to recover to between 15% and 20% in FY2021 on
As a result, the ratio of equity attributable to owners of the the back of markedly improved performance.

Balance Sheet (billions of yen)

Total assets Total assets

2,010.5 2,411.9

Current Liabilities
Liabilities assets
Current
1,415.9
assets 1,027.0 1,655.1
1,638.1
Non-current Net assets Non-current Net assets
assets assets
983.5 996.0
372.3 756.7

August 31, 2019 August 31, 2020

66
Continue Proactive Investment to FY2020 Capital Expenditures
Expand Operations

While seeking to expand our global store network, Fast System etc. UNIQLO Japan
Retailing also invests aggressively in systems to help progress ¥30.4 billion ¥17.8 billion ( 21.5%)
( 36.8%)
Ariake Project objectives and in other areas to help expand
operations. UNIQLO International
Capital expenditure declined by ¥2.4 billion to ¥82.7 billion Global
Brands
¥23.5 billion ( 28.5%)
in FY2020. That figure breaks down into ¥17.8 billion for
UNIQLO Japan, ¥23.5 billion for UNIQLO International, ¥8.5 ¥2.4 billion ( 2.9%)
GU
billion for GU, ¥2.4 billion for Global Brands, and ¥30.4 billion
¥8.5 billion ( 10.3%)
for systems, etc. While investment in Ariake Project-related IT
systems, warehouse automation, and global flagship and
large-format stores for UNIQLO Japan increased, UNIQLO FY2021 Capital Expenditures (forecast)
International new store openings declined, resulting in a slight
year-on-year fall in overall capital expenditure.
UNIQLO Japan
In FY2021, we expect capital expenditure will increase by
¥7.5 billion to ¥90.2 billion. For planned new store investment,
System etc. ¥13.4 billion ( 14.9%)
¥30.0 billion of that is earmarked (UNIQLO International: 155 ¥32.5 billion
( 36.0%)
stores, UNIQLO Japan: 30 stores, Global Brands: 28 stores, UNIQLO International
GU: 22 stores) and ¥60.2 billion for Ariake Project-related items Global ¥38.9 billion ( 43.2%)
as we plan to invest in new e-commerce platforms and new Brands
automated warehouses in Japan and several other countries. ¥2.0 billion ( 2.2%)
GU

¥3.3 billion ( 3.7%)

Firm Risk Management System to Risk Management Framework

Clarify Risks and Strengthen Our Response Board of Directors

Approves and provides

Fast Retailing’s Risk Management Committee reports directly
instructions regarding
to the Board and works to regularly identify latent risks in priority business risks
business activities and establish and strengthen frameworks to
detect and manage material risks. The committee, chaired by
myself as Group CFO, unifies the management of risk across Risk Management Various
Committee Committees
Fast Retailing, analyzing and assessing the frequency and
impact of risks on business. We identify high-risk areas Chairperson: Group CFO Human Rights Committee
Business Ethics Committee
requiring preventive countermeasures, and how to mount a Members: E xternal
Code of Conduct Committee
directors
speedy response when risk does occur. The committee also Sustainability Committee,
 xecutive
E etc.
submits reports on significant risks to the Board and offers
officers
concrete support to departments required to deal with
 ommittees report on risks
C
identified risks.  eports on priority
R
in their relevant field
business risks
The committee met nine times in FY2020 to discuss the Provides concrete support Provides specific direction
to each department
COVID-19 pandemic, the risk of an earthquake near Tokyo, to each department
regarding risk
regarding risk
other natural disasters, information security, and other topics. countermeasures countermeasures

Various Businesses
and Brands

Reports on individual risks

Creates and implements
preventive measures

67
 RISK FACTORS

The following is a list of the main potential risks which would have future by risks it had not foreseen or did not recognize as
an especially large impact on the Group’s operating results and significant at the time of compiling the report. If there are no
financial situation. Future-related items in the descriptions below details of risks already having materialized under the Risk
are assessed by the Group on the date of submission of the Description and Effects on the Group column, then that risk has
Year-end Report (November 27, 2020). This list of risks is not not yet surfaced and the timing or likelihood of whether it will
exhaustive, which means that the Group may be affected in the indeed materialize at some point in the future is uncertain.

Risk Item Risk Description and Effects on the Group Main Group Initiatives

Risk of the • The large-scale, global spread of infectious diseases such as •L  ed by the Company-wide Emergency Response Headquarters established by the
large-scale, COVID-19 may cause difficulties in the production and supply of Risk Management Committee, the Group develops medical evidence-based
global spread of products to stores due to infection among employees of the Group infection prevention measures aided by advice received from experts, and
infectious and its partners, as well as due to measures enacted to prevent the implements such measures at all Group offices and stores while ensuring all Group
diseases spread of the disease. employees fully understand them.
(including • The global spread of COVID-19 has already materialized risks that • In addition to providing supplier factories with guidelines for improving their hygiene
COVID-19) have had negative effects on the entire Group, including the management to prevent infection at factories and for employee remuneration if
shutdown of production plants, logistical delays, restricted store factories are forced to shut down. We also have measures in place to support the
hours, and more. financial stability of our production partners.
• In order to ensure that all customers can shop with peace of mind, in our stores we
take all possible measures to prevent infection, and further request that all
customers entering stores comply with the Group’s infection countermeasures.

Management • Members of the Group’s management team, led by Chairman, • In each of the Group’s businesses, we have established a team-based executive
personnel risk President and CEO Tadashi Yanai, play a major role in their respective management structure to ensure that decision-making and execution of duties are
areas of responsibility. If any officer becomes unable to fulfill his or not dependent on specific management personnel.
her duties and the Group is unable to find any personnel who can • In each business, the managers themselves personally train the management
take on those important responsibilities, this could have an adverse personnel who will be their successors in those positions.
impact on business performance. •W  e actively recruit globally active management talent on an ongoing basis, and we
have established dedicated educational institutions to educate and train our hired
talent into managers.

Country risks and • The Group’s product production, supply, and sale infrastructure may •T
 he Group is moving forward with establishing a supply chain that can respond
risks pertaining to be adversely impacted by events in countries and regions in which flexibly to changes in international conditions. This includes dispersing production
international we manufacture products and conduct business, due to factors sites across multiple countries and regions, as well establishing production
affairs including changes in political or economic conditions, social disorder management offices at our main production hubs to enable the timely monitoring of
or deterioration of public safety due to terrorism or conflicts, changes and quick response to local circumstances.
in legal or tax systems, or the occurrence of large-scale natural •W
 e have accounting, tax, and legal specialists stationed at Group companies’
disasters such as earthquakes, strong winds, or water disasters. offices to ensure that we can respond quickly and appropriately in the event that a
risk materializes.
•W
 ith respect to cross-border tensions and deteriorating racial relations in specific
countries and regions, the Group as a global company aims to contribute to the
resolution of social issues in countries and regions in which we operate, and to
achieve a lasting peaceful co-existence and co-prosperity in the communities within
each region and country.

Environmental • We risk weakening public trust in Group brands if our climate change •L
 ed by the Sustainability Committee, we persist in continually implementing
risks response is slow, such as delays in reducing greenhouse gas concrete and highly effective initiatives under our Environmental Policy, with which
emissions or transitioning to renewable energy sources, or if we do we must ensure medium to long-term compliance as a Group, in five priority areas:
not appropriately implement initiatives to reduce waste emissions, addressing climate change, improving energy efficiency, managing water resources,
circulate resources, manage chemical substances, etc. improving waste management and resource efficiency, and managing chemical
• Increasingly prevalent extreme weather conditions caused by climate substances.
change could adversely affect our product supply systems and our
business as a whole.

Large-scale • Large-scale disasters such as earthquakes, typhoons, volcanic •L

 ed by the Risk Management Committee, we are committed to establishing an
disaster risks eruptions, fires, storms and floods, explosions, and collapsed infrastructure by which, in the event of an actual or potential major earthquake or
buildings can adversely affect our product production, product other major disaster, we have an emergency command system prepared, run by the
supply systems, product sales systems, and also our management Emergency Response Headquarters to: ensure the safety of customers, employees,
infrastructure in areas where there are head offices, retail stores, and and related personnel; mitigate damage to business resources; prevent secondary
production plants for products sold by the Group. disasters; develop infrastructure for quickly restoring business; prepare crisis
management manuals and promote the global implementation of those manuals.

Risks related to • Disasters, climate change, and other factors may cause escalating •W
 e have entered into procurement agreements with multiple suppliers so that we
resource prices or difficulty in procuring the raw materials (such as cotton, are able to source reasonably priced raw materials, without having to rely on a
management and cashmere, down, etc.) used in the products sold by the Group’s specific supplier for a specific raw material.
the procurement businesses. If these risks materialize, the Group’s product supply
of raw materials systems and performance may be adversely affected.

Information • If customer information (including personal information), trade • In order to ensure that confidential information held by the Group is properly
security risks secrets, and other confidential information were to be leaked or lost, managed, we have established an Information Security Office under the direction of
we would need to respond by recovering the information and a Chief Security Officer (CSO) who oversees the entire Group.
possibly paying damages to customers, which could adversely affect •W  orking in cooperation with the IT and legal departments of each country and
our business performance and reduce customer trust. region in which we operate, the Information Security Office builds and improves the
• If a government were to determine that we are in violation of legal infrastructure needed to properly manage sensitive information (especially
regulations that restrict the transfer of personal information between customers’ personal information) in anticipation of external attacks, internal fraud
countries and regions, such as the EU’s General Data Protection and various other incidents. This is done by putting in place infrastructure,
Regulation (GDPR), we may lose customers’ trust and be subject to evaluating our administrative processes and ours contractors, establishing and
significant fines that would negatively impact our business standardizing internal rules, and conducting regular educational and awareness
performance. activities in each business division.

68
Intellectual • Intellectual property rights apply in relation to the Group’s • In order to address these intellectual property risks, the Group has a dedicated
property risks products and the latest technologies used in all kinds of areas, department in place dealing with intellectual property. This department
including product management, store operations, and investigates infringements during product development and during the
e-commerce websites. These rights not being licensed to us by implementation of technologies, and in an effort to prevent infringements of
their owners would present difficulties in our use of these intellectual property rights also runs educational and awareness activities for
technologies or in supplying products. Group employees.
• If these technologies or products were to infringe on the • We actively take steps to acquire the rights to new technologies that we
intellectual property rights of others, we may be liable to pay develop. Furthermore, we monitor markets in the countries and regions in which
substantial damages or license fees that may adversely affect our we operate or plan to expand, and cooperate with local legal departments, local
business performance. law firms, and government agencies to gather information about counterfeit
• If the Group’s products were to be copied by third parties and products and other intellectual property infringements.
sold at low prices, this may negatively impact our business • In the event that infringement can be confirmed or if we fear such an
performance. infringement may have occurred, we work with local legal departments and
local law firms to quickly consider our course of action, including a legal
response.

Human rights • All of the Group’s businesses operate an SPA business model • Our supply chain policy is based on our view that our most important
risks which integrates all stages of the business process, from responsibility is to respect the basic human rights of all people working in the
products being designed by each business, to them being directly supply chain of Group businesses, whether they are employees of the Group or
procured from factories and then delivered to customers. The of our business partners, and to ensure those employees’ physical and mental
supply chain involved in this SPA business model includes many health, safety, and peace of mind.
of our business partners’ employees, as well as those of the • We have developed human rights guidelines, provide code of conduct (COC)
Group. Within the business system, deterioration in working training, operate an employee hotline, and conduct regular reviews in order
environment or in health and safety, human rights violations such prevent human rights violations from occurring.
as harassment or discriminatory behavior, or other such acts that • Led by our Sustainability Department, we are committed to maintaining and
significantly infringe on the human rights of those affected may improving suitable working environments through monitoring work environments
result in the Group losing the trust of our customers and at supplier factories, and operating hotlines for the employees of those
suppliers, and consequently may negatively impact the supply factories.
and sale of our products. • In the event that a human rights violation does occur, in addition to the Human
Rights Committee investigating and deliberating on the matter, we also have in
place a framework for providing mental healthcare for the victim.

Risks originating • The Group conducts business with many suppliers and business • In order to avoid entering into business relationships with inappropriate
from business partners, which presents a variety of risks associated with partners, all Group companies carry out credit checks as necessary when
partners business partners involved in product planning, production, entering into a transaction with a new business partner.
transportation, and sales. • In order to build appropriate business relationships with all of our partners, the
• These risks include the possibility that our partners may not share Group has established Business Partner Conduct Guidelines and conducts
the values and principles of the Group, which may lead to a drop business only with those partners who agree to and comply with those
in business efficiency, or the possibility that a partners financial guidelines.
status may make it difficult for us to adequately collect on • In response to the risks associated with dealing with delivery operators and
receivables. These possibilities can have an adverse effect on our warehouse operators, each of our businesses has logistics personnel in place
business performance, and furthermore may result in our who are in constant communication with our delivery and warehouse-operating
unintentionally engaging in business with anti-social organizations business partners. These personnel are on-hand to promptly report any
(e.g. criminal groups and individuals) or violations of laws on the problems that arise in product shipping or storage to local management and the
part of our partners. If these risks were to materialize, they may Global Logistics Headquarters, a system which enables them to promptly
lead to a loss of trust in the Group among our customers and consider and action a response.
society.
• In addition, for example during the transportation of products by
delivery operators or while products are being stored at a
warehouse, products may be destroyed, damaged, or stolen as a
result of a natural disaster or human behavior, or it may not be
possible to complete a transaction due to a problem arising with
our partner or with local laws and regulations.

Impairment risks • As a general rule, the Group considers each store as a small unit • We apply impairment accounting to quickly identify signs of impairment, quickly
that generates an independent cash flow. We apply impairment identify unprofitable stores, and to ensure proper accounting.
accounting on that basis to determine the likelihood of a return • We strive to understand the underlying cause of a store’s drop in profitability,
on investment in a timely manner. If profitability decreases due to and develop fundamental profitability improvement plans for them.
changes in the business environment, impairment losses may be
recorded under property, plant, and equipment and right-of-use
assets, among others.
• Due to the application of IFRS 16 from August 2020 onward,
impairment losses when profitability decreases are now larger
than before, due to increases in right-of-use assets on the
balance sheet.

Foreign currency • Many of the products handled by each of the Group’s businesses • In order to mitigate foreign exchange volatility in our international businesses,
risks are imported from overseas production plants. Fluctuations in the we have forward exchange contracts that extend several years into the future
currencies of settlement may have an adverse effect on our based on our procurement forecasts. In this process, the Group Board of
performance of each business. Directors discusses and approves specific hedging policies such as hedge
• The Group as a whole has financial assets in a variety of ratios, time periods, and other aspects, taking into account their contribution to
currencies in line with where we operate our businesses. our financial security.
Fluctuations in exchange rates against yen, which is the Group’s • The Board of Directors discusses the viability of the currencies in which our
functional currency, can have a major impact on financial gains financial assets are held.
and losses.

Risks arising • In each country and region in which the Group’s businesses • We collect timely information on the products required by customers in the
from changes operates, changes in the business environment, such as countries and regions in which the Group’s businesses operate. We have the
in the business inclement weather and changes in consumption trends, may infrastructure in place to immediately commercialize those products as well as
environment result in drops in product sales and the accumulation of excess to produce and sell the quantity required, responding to changes in the
inventory, negatively impacting our business performance. business environment as flexibly as possible.

69
 HISTORY

1949.3 1999.2 2005.11 2010.4

Holding company structure is
Men’s Shop Ogori Shoji is Company stock is listed on adopted at Fast Retailing. First UNIQLO Russia store
founded in Ube City, the First Section of opens in Moscow.
Yamaguchi Prefecture, Japan. the Tokyo Stock Exchange.
2006.6 2010.5
1963.5 2000.10 Strategic business partnership is
established between UNIQLO and
Global flagship store, UNIQLO West
Nanjing Road Store,
Ogori Shoji Co., Ltd. is established E-commerce business launches. Toray Industries, Inc. opens in Shanghai.
with capital of 6 million yen.

2001.9 2006.9
1984.6 First UNIQLO outside Japan store UNIQLO All-Product Recycling
The first UNIQLO store opens in opens in London. Initiative commences.
Hiroshima (closed in August 1991).

2002.4 2006.10
1985.6 UNIQLO Design Studio (current R&D First GU store opens in 2010.10
Center) is established. Chiba Prefecture, Japan. Global flagship store,
First UNIQLO roadside store opens.
UNIQLO Shinsaibashi Store,
2002.9 2006.11 opens in Osaka.
First UNIQLO China store opens First UNIQLO global
in Shanghai. flagship store opens in Soho,
New York City.
2004.1
Fast Retailing invests in Link
International Co., Ltd. (now LINK
THEORY JAPAN CO., LTD.),
developer of Theory brand apparel.
1991.9
Company name is changed to
FAST RETAILING CO., LTD.

1994.7 2007.11
Company stock is listed on the Global flagship store,
Hiroshima Stock Exchange. UNIQLO 311 Oxford Street Store,
opens in London.

1998.10 2004.9 2007.12 2010.10

1,900-yen fleece campaign UNIQLO makes Global Quality
First UNIQLO France store First GU flagship store opens
succeeds in attracting large Declaration, and cashmere
opens in Paris. in Shinsaibashi, Osaka.
public attention. campaign generates high level of
consumer interest.
2009.3 2010.10
First UNIQLO Taiwan store
LINK THEORY JAPAN CO., LTD.
opens in Taipei.
becomes a subsidiary.

2009.4 2010.11
First UNIQLO Malaysia store
First UNIQLO Singapore store
opens in Kuala Lumpur.
opens.

1998.11 2004.12 2009.10 2011.2

Global flagship store, Global Partnership Agreement with
First urban UNIQLO store opens in UNIQLO Design Studio,
Paris Opera Store, opens. UNHCR is established, reinforcing
the fashionable Harajuku district of New York, Inc. is established.
Tokyo (closed in 2012). All-Product Recycling Initiative.

2005.9 2011.9
First UNIQLO South Korea store First UNIQLO Thailand store
opens in Seoul. opens in Bangkok.

2005.9 2011.9
First UNIQLO Hong Kong store Global flagship store, UNIQLO
opens in the Tsim Sha Tsui Mingyao Department Store,
shopping district. opens in Taipei.

70
2011.10 2014.3 2016.9 2019.9
Global flagship store, UNIQLO New UNIQLO Orchard Central Store First UNIQLO Italy store opens
Fast Retailing Hong Kong
York 5th Avenue Store, opens in opens as the first UNIQLO global in Milan.
Depository Receipts (HDR) are
New York City. flagship store in Southeast Asia.
listed on the Stock Exchange of
Hong Kong.
2016.9
First UNIQLO Canada store
opens in Toronto.

2017.9
First UNIQLO Spain store opens
in Barcelona.

2012.3 2014.3
Global flagship store,
Global hotspot store, UNIQLO
Ikebukuro Sunshine 60 Street Store,
2019.10
UNIQLO Ginza, opens in Tokyo. First UNIQLO India store opens
opens in Tokyo.
in New Delhi.
2014.4
First UNIQLO Australia store
opens in Melbourne. 2018.6
Included in FTSE 4Good Index
2014.4 Series and FTSE Blossom Japan
First UNIQLO Germany store, Index for responsible social
Tauentzien global flagship, investment.
opens in Berlin.
2018.8
2014.4 First UNIQLO Sweden store opens
2012.3 Global hotspot store,
UNIQLO Okachimachi Store,
in Stockholm.
GU flagship store opens
in Ginza, Tokyo.
opens in Tokyo. 2018.9
2014.10 First UNIQLO Netherlands store 2019.11
2012.6 Global hotspot store, UNIQLO
opens in Amsterdam. Forms a global partnership agree-
ment for supply chain transformation
First UNIQLO Philippines store
opens in Manila.
Kichijoji Store, opens in Tokyo. 2018.10 with Daifuku Co., Ltd., MUJIN, Inc,
Global flagship store, UNIQLO Manila and Exotec Solutions SAS.
2012.9 2014.10 store, opens in the Philippines.
Global hotspot store, BICQLO
Global flagship store, 2019.12
UNIQLO OSAKA, opens in Osaka. First UNIQLO Vietnam store opens
Shinjuku East Exit Store,
in Ho Chi Minh City.
opens in Tokyo.
2015.10
2013.4 First UNIQLO Belgium store opens in 2020.4
Antwerp. Opens UNIQLO PARK Yokohama
Global flagship store, UNIQLO Lee
Bayside store, our new-style large-
Theatre Store, opens in Hong Kong.
2015.10 format stores offering fun for all the
family.
2013.6 First store in the U.S. Midwest,
First UNIQLO Indonesia store opens
the UNIQLO Michigan Avenue Store,
opens in Chicago.
2018.10 2020.6
in Jakarta. Fast Retailing forms a
logistics-related strategic global Opens UNIQLO Harajuku, our latest
store embodying the perfect mix of
2013.9 partnership with materials handling
equipment firm Daifuku Co., Ltd. real and virtual shopping.
First GU outside Japan store opens
in Shanghai.
2018.10 2020.6
Opens UNIQLO TOKYO in Ginza, our
2013.9 The Ariake distribution center starts
operating as a fully automated LifeWear showcase global flagship
Global flagship store, UNIQLO dedicated online sales warehouse. store.
SHANGHAI, opens in China.

2016.4 2019.4
Construction is completed on First UNIQLO Denmark store opens
state-of-the-art distribution center in Copenhagen.
in Ariake, Tokyo.

71
 INVESTOR INFORMATION (As of August 31, 2020)

Stock Exchange Listing Principal Shareholders

Tokyo Stock Exchange (First Section) Percentage*
Securities Code: 9983 Number of
of total shares
shares
The Stock Exchange of Hong Kong (Main Board) in issue (%)
Securities Code: 6288 Tadashi Yanai 22,037,284 21.58

Stock Information The Master Trust Bank of Japan, Ltd.

20,785,900 20.36
(Trust account)
Number of shares authorized 300,000,000
Custody Bank of Japan, Ltd.
Number of issued and outstanding shares 14,202,700 13.91
106,073,656 (Trust account)
(including treasury stock)
TTY Management B.V. 5,310,000 5.20
Number of shareholders
9,340
(including holders of treasury stock) Kazumi Yanai 4,781,808 4.68

Distribution of Share Ownership Koji Yanai 4,780,926 4.68

Fight & Step Co., Ltd. 4,750,000 4.65
Individuals37.06% MASTERMIND Co., Ltd. 3,610,000 3.54
Financial institutions33.91%
Teruyo Yanai 2,327,848 2.28
Foreign shareholders18.14%
Securities companies8.00% JP MORGAN CHASE BANK 2,142,399 2.10
Corporations2.90% *In addition to the above, the Company holds 3,973,113 shares of treasury stock.

Stock Price and Trading Volume

Stock price (yen)
90,000 85,940

75,000

60,000

45,000

30,000 44,190

Trading volume (thousands of shares)

30,000

15,000

0
9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11
2018 2019 2020

Information Available in the Investor Relations (IR) Section of Our Website

You can access materials and videos of our latest business results,
meetings, and press conferences.

Monthly
You can view monthly sales for UNIQLO Japan.
Retail Data

You can access the latest IR publications,

IR Library including the Annual Report, Fact Book, and
Securities Report.

You can access the schedule for monthly

IR Calendar announcements, business results meetings,
and other events.

IR News You can access the latest IR news and releases.

You can access the latest message from

CEO Message
the chairman of Fast Retailing. www.fastretailing.com/eng/ir/

72
CORPORATE INFORMATION (As of December 31, 2020)

Corporate Data Board of Directors

Trade Name FAST RETAILING CO., LTD. Chairman,
Tadashi Yanai
President & CEO
10717-1 Sayama, Yamaguchi City
Head Office
Yamaguchi 754-0894, Japan External Directors Toru Hambayashi
Midtown Tower, 9-7-1 Akasaka, Minato-ku Nobumichi Hattori
Roppongi Office
Tokyo 107-6231, Japan
Masaaki Shintaku
6F UNIQLO CITY TOKYO, 1-6-7 Ariake, Koto-ku,
Ariake Office Takashi Nawa
Tokyo 135-0063, Japan
Established May 1, 1963 Naotake Ono
Paid-in Capital ¥10,274 million Internal Directors Takeshi Okazaki
Control and management of overall Group
Line of Business Kazumi Yanai
activities as owner and holding company
Number of Full-time Koji Yanai
57,727 (As of August 31, 2020)
Employees (Consolidated)
Standing Statutory Akira Tanaka
Fiscal Year Ends August 31 Auditors
Masaaki Shinjo
Annual Shareholders’ Meeting Late November
Mitsubishi UFJ Trust and Banking Corporation Shin- Masumi Mizusawa
Transfer Agent TOKYO Post Office post office box No. 29 137-8081, External Statutory Keiko Kaneko
Japan Telephone: 0120-232-711 (From Japan) Auditors
Takao Kashitani
Number of Shares per 100 shares (Tokyo Stock Exchange)
Trading Unit 300 HDR (The Stock Exchange of Hong Kong) Masakatsu Mori

Main Group Companies

1 UNIQLO CO., LTD.
2 FAST RETAILING (CHINA) TRADING CO., LTD.
3 UNIQLO TRADING CO., LTD.
4 FAST RETAILING (SHANGHAI) TRADING CO., LTD.
5 FRL Korea Co., Ltd.
6 FAST RETAILING (SINGAPORE) PTE. LTD.
11
7 UNIQLO (THAILAND) COMPANY LIMITED
16
8 PT. FAST RETAILING INDONESIA
5 1 14 10 17 9 UNIQLO AUSTRALIA PTY LTD
2 3
13
4 15 10 Fast Retailing USA, Inc.
7 11 UNIQLO EUROPE LIMITED
12
12 UNIQLO VIETNAM Co., Ltd
6
13 UNIQLO INDIA PRIVATE LIMITED
8
14 G.U. CO., LTD.
15 GU (Shanghai) Trading Co., Ltd.
16 FAST RETAILING FRANCE S.A.S.
9
17 Theory LLC

Contact Us Forward-looking Statements

Statements in this annual report with respect to the Company’s plans,
FAST RETAILING CO., LTD. strategies, forecasts, and other statements that are not historical facts
www.fastretailing.com/eng/ are forward-looking statements that are based on management’s
Midtown Tower, 9-7-1 Akasaka, Minato-ku judgment in light of currently available information. Factors that could
Tokyo 107-6231, Japan cause actual results to differ materially from our earnings forecasts
Telephone: +81-3-6865-0050 include, without limitation, global economic conditions, our response to
market demand for and competitive pricing pressure on products and
9AM–4PM (JST) Monday–Friday (except national holidays)
services, and currency exchange rate fluctuations.

This report is printed with non-VOC ink for paper certified by the Forest Stewardship Council® (FSC®),
an international labeling scheme that provides a credible guarantee that the raw materials used in the
product come from an environmentally managed forest.

73
THE FAST RETAILING WAY -
FR Group Corporate Philosophy

Changing clothes.
Changing conventional wisdom.
Change the world.
ユニクロのグローバルブラン ドアンバサダーを
UNIQLO Global Brand Ambassador
務めるロジャー ・フェデラー選手
Roger Federer （プロテニス
sports UNIQLO’s
fast-drying
プレーヤー） DRY-EX wear made from
。公式試合で着用している再生
recycled polyester
ポリエステル使用の 「ドライ for EX
his」
official
ウエアは、 tennis
日々
matches and practice sessions, too.
の練習でも活用されています。
 FAST RETAILING CO., LTD.
w w w. f a s t r e t a i l i n g . c o m

The model on the front cover is wearing Uniqlo U, a premium collection

from artistic director Christophe Lemaire. Our ultimate everyday wear
grows more sophisticated with every passing season.