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ANNUAL

REPORT
2017
Year ended
31 August 2017

Great Clothes Can Change Our World

is a global company operating multiple fashion brands including
UNIQLO, GU and Theory. The world’s third largest manufacturer and
retailer of private label apparel, Fast Retailing offers high - quality,
reasonably priced clothing by managing everything from design and
production to retail sales. UNIQLO is our pillar brand—it boasts 1,920
stores in 18 countries and regions (FY2017), and is loved the world
over for its high - quality, affordable basic casualwear. UNIQLO’s
heartfelt mission is to create ultimate - comfort LifeWear that
enriches people’s lives. The brand differentiates itself by offering
clothing made from superior materials at reasonable prices, and
developing products using original high -functioning fabrics such as
HEATTECH and Ultra Light Down. The Group’s main sources of
UNIQLO -driven growth are moving beyond Japan to Greater China
(Mainland China, Hong Kong, Taiwan) and Southeast Asia. GU, the
Group’s second pillar operation, continues to grow and solidify its
position as a fun, low -priced fashion brand. In terms of corporate
identity, Fast Retailing is working hard to reform its entire supply
chain and transform itself into a digital consumer retail company”
that can effectively turn information into products, and swiftly
respond to evolving customer needs. Fast Retailing is actively involved
in social activities related directly to clothing, and it works to ensure
responsible procurement by fostering manufacturing environments
that respect human rights and have minimal impact on the environment.
Fast Retailing is striving to become a corporate group that harnesses
the power of clothing to help create a more sustainable society.

Fast Retailing Group corporate philosophy:
Changing clothes. Changing conventional
wisdom. Change the world.
(Designed by calligrapher Hakuju Kuiseko)

.

Launched in 2003. annual technological improvements have fueled total sales of over 1 billion items. .BREAK NEW GROUND. With amazing warmth generation and retention properties. CREATE NEW VALUE HEATTECH is the epitome of advanced textile technology. HEATTECH items are a must have for anyone making it through a cold winter.

EVERYDAY COMFORT CONTENTS 06 MESSAGE FROM THE CEO 44 WHAT’S NEW AT UNIQLO 08 CEO INSIGHTS 46 GLOBAL BRANDS 18 FISCAL 2017 BUSINESS PERFORMANCE 50 SUSTAINABILITY 20 FISCAL 2017 FINANCIAL HIGHLIGHTS 60 FINANCIAL INFORMATION 22 CORPORATE GOVERNANCE 68 HISTORY 26 THE UNIQLO BUSINESS 70 INVESTOR INFORMATION 36 UNIQLO GLOBAL PRESENCE 71 CORPORATE INFORMATION .EVOLVING CLOTHES.

UNIQLO’s form-fitting yet elastic Ultra Stretch Jeans make your legs look better than ever. We are exploring new ideas with world-leading fabric and fiber manufacturers to create an even more advanced product. The evolution of jeans continues. . with total freedom of movement.

MESSAGE FROM THE CEO 06 .

We will draw on the latest technology to create a new type of industry. such as Google and Amazon.A NEW INDUSTRY. information can be sent instantly to customers via the internet. The rapid expansion of UNIQLO International has been fueled by customers worldwide recognizing and appreciating UNIQLO LifeWear as the ultimate life-enhancing everyday clothing. A NEW ERA Now is a time for bold action. one that is capable of delivering the world’s best clothing and the world’s best customer communication. South Korea and Southeast Asia & Oceania generated impressive profits. UNIQLO achieved record success. we are transforming ourselves into a new type of “digital consumer retail company” that puts its customers first by turning information into superior products. which is designed to reform our business processes and revolutionize our supply chain so that we can rapidly respond to the needs of our customers. Current business technology giants. are expanding and entering entirely new industries. and data can be instantly analyzed using artificial intelligence. We remain committed to the creation of clothes that are perfectly attuned to people’s daily needs and offer new value. we have launched the Ariake Project. We are fully invested in the challenge of making the world a better place through clothes. January 2018 Tadashi Yanai Chairman. the employment of people with disabilities. In the fiscal year ending August 31. In the clothes-manufacturing process. As the boundaries between industries and companies dissolve. we are working proactively on factory conditions. 2017. environmental protection. President and CEO 07 . workers’ rights. We are also committed to the creation of a sustainable world. proving that economic development in the Pacific Rim region harbors great opportunity. and the support of refugees and other displaced persons. Our operations in Greater China. our All-Product Recycling Initiative. the advancement of women in the workplace. In today's world. Fast Retailing is moving decisively to gain a competitive edge over the next generation of entrants and thrive in this rapidly changing era. As part of this effort.

Ariake Project Kickstarts Sweeping Change To accelerate Fast Retailing’s transformation into a digital consumer retail company. This enables us to continuously engage with customers online and reflect their feedback in our supply chain. things and bits of information are revolutionizing the concepts of borders. a more than 16. we constructed UNIQLO CITY TOKYO. and information can be transmitted at ultra-fast speeds. Intricate connections between people. Most of the world now has access to the internet and smartphones. CEO INSIGHTS Driving Digital Transformation A Supply Chain with Customers at the Center Globalization and digitalization are happening at lightning speed. The Ariake Project encompasses numerous 08 . I believe it is vitally important to create a new industry that can effectively turn information into commercial products. decision-making and the implementation of ideas. industries and companies. retail and textile industries are disappearing. we launched what we call the Ariake Project. flat teams that communicate closely across corporate departments and rapidly execute business analysis. We have created small. The most important part of this transformation is to completely change the way our employees work. We are already embracing these changes and proactively transforming ourselves into a “digital consumer retail company” that can quickly translate customer desires into better products and services. To ensure that Fast Retailing thrives in this era of radical change. In the clothes-making business. traditional demarcations between apparel.500m2 open-plan office on the sixth floor of our Ariake warehouse. To that end.

an increase in the online shopping services and resources. We will not be shackled to old ways of digital marketing to communicate directly with thinking. The Ariake Project is turn ourselves into a digital consumer retail company. 09 . the use of transformations. highly efficient distribution system. including the analysis of digital The cooperation of our business partners is information to accurately forecast demand. and the establishment of systems that will technologies of the future and do whatever we can to support all these initiatives. the creation of a working hard to achieve complementary speedy. We are determined to embrace the we offer. effort customers. The bustling “main street” at UNIQLO CITY TOKYO concurrent initiatives. and we will invest the necessary time. Our communication with partner factories to achieve a partner textile factories and distribution companies are flexible manufacturing structure. already generating huge benefits. closer essential to the success of the Ariake Project.

to Surpass UNIQLO Japan’s UNIQLO has achieved such strong growth in Greater China. fashionable clothing at prices that everyone can Asia & Oceania operations produced truly spectacular afford. We have that of UNIQLO Japan for the first time in FY2018. Paris. This gives us making people’s lives richer and more comfortable. and by earning the loyal support of customers opened the first UNIQLO store outside Japan in worldwide. The apparel industry is embracing globalization at 10 . serving as the key trend-chasing apparel. Japan-born UNIQLO label into a thriving global brand UNIQLO’s LifeWear concept stems from a passion that is loved by customers worldwide. one that is part of the talented managers with strong leadership skills that we fabric of everyday living and that is committed to have nurtured in these three regions. and I am so proud of how we have grown the global markets. It has been almost 17 years since we cities. Due established a strong presence alongside other brands to its high margins. This highlights our leading position in London. CEO INSIGHTS UNIQLO International Powers Ahead UNIQLO Passeig de Gràcia store. UNIQLO International is also such as ZARA and H&M by opening flagship and approaching UNIQLO Japan in terms of operating large-format stores on prominent high streets in New profit. South Korea and Southeast Asia precisely We expect UNIQLO International revenue to overtake because it is recognized as a global brand. confidence in future business expansion. Shanghai and other major world accomplishment. high- The Greater China. UNIQLO will continue to grow not as a maker of performances this business year. I am delighted with this remarkable York. I am especially proud of the a new category of clothing. South Korea and Southeast quality. London. Spain UNIQLO International Revenue such a rapid pace that we are entering an era in which only fully recognized global brands can survive. but as a brand that represents driver of Group growth. to create ultimate everyday wear: comfortable.

in focus is to ensure solid growth in Greater China and Southeast Asia. As their identity with regard to overall product ranges and economies develop. “Global Is Local. regions with strong potential for economic growth. climates and income levels. We call this seemingly contradictory initiative While Japan has a total population of 120 million. This focused strategy has turned many We have announced five-year targets of increasing people into UNIQLO fans.A Solid Position in Greater China Global is Local. My everyday wear come to our stores first. If we also continue to open stores in the United States and Europe. in-store services and store witness explosive growth in middle-income populations. you think. and from ¥110 billion to ¥300 billion cultures. operations. Local Is Global. in Greater China. For example. year-round. such while at the same time protecting UNIQLO’s unique as Greater China and Southeast Asia.7 UNIQLO Japan 708.1 (bln yen) (FY) ‘07 ‘08 ‘09 ‘10 ‘11 ‘12 ‘13 ‘14 ‘15 ‘16 ‘17 ‘18 ‘19 ‘20 ‘21 ‘22 Forecast 11 . in Southeast Asia & Oceania. and Southeast Asia Local is Global UNIQLO International’s key strength is its established We aim to earn loyal customer support by offering brand position and firm management foundation in everyday wear that suits local climates and cultures. Revenue Comparison FY2018 A Big Year for UNIQLO International UNIQLO International 810. They recognize UNIQLO as revenue from the current ¥346. Asian markets will undoubtedly mixes. which have the potential to grow into that suit the tropical climate is available to customers markets 10-20 times the size of Japan’s.4 billion to ¥1 trillion a Japan-based brand that caters to all nationalities. Striking this balance can be harder than This presents a huge business opportunity for UNIQLO. store layouts. I believe we can expand UNIQLO International sales to over ¥2 trillion within the next few years. a large range of warm-weather items Southeast Asia.” Greater China and Southeast Asia are estimated to Our aim is to ensure that people who want to buy have over one billion white-collar workers alone.

CEO INSIGHTS UNIQLO Revenue by Region (including e-commerce share) (FY2017) GREATER CHINA EC 5% SOUTH KOREA ¥ 120 billion SHANGHAI JAPAN GREATER CHINA ¥ 810 billion ¥ 340 billion EC 6% EC 10% SOUTHEAST ASIA & OCEANIA ¥ 110 billion EC 5% GINZA SHINSAIBASHI Expand Online Sales Worldwide Expanding online sales and services is a vital element of opportunities for online growth in these regions. Our our global business strategy. cooperating with firms with superior technology in each Progress there includes our recently launched online- region to expand operations. Digital communication via to-offline (O2O) service aimed at further fusing our social media is well developed in Greater China and physical and online stores—it gives customers the Southeast Asia. 12 . Our strategy focuses on online business in Mainland China is doing well. which provides us with strong option to pick up online purchases in-store.

I also want to expand AMERICA revenue from the current ¥70 billion to ¥100 billion over the next few years. SHINJUKU OSAKA two markets that have shown positive early growth. We will increase brand visibility by opening stores in major NORTH cities and competitive shopping malls. thanks to a concerted effort by the local CEO and staff to create a strong leadership framework. In order to secure profitable operations. We plan to open our first store in Sweden (Stockholm) in fall 2018 and will continue expanding into major cities across Europe. UNIQLO USA Moving Forward UNIQLO USA is now showing signs of a bright future. Our entry into Spain (Barcelona) in fall 2017 also proved a success. EUROPE EC 20% ¥ 60 billion NORTH AMERICA EC 10% ¥ 70 billion EUROPE NEW YORK JAPAN PARIS BARCELONA Expanding Our Presence in Europe UNIQLO Europe has strengthened its operational base. 13 . The operation successfully halved its operating loss in FY2017. We accelerated store openings in France and Russia.

Experienced employees with Making it convenient for customers to pick up intimate knowledge of local needs are vital to the purchases will enable them to order special success of community-centered stores. UNIQLO Japan has seen customer customers an even more convenient shopping numbers increase thanks to easily recognizable experience. capable staff. These initiatives will significantly Koten Keiei is the best way to train all personnel to increase online sales. our everyday prices. increasing efficiency. link them to our physical store network to offer Despite that. We must make it possible for customers Going forward. simplifies stocktaking and search tasks. We are also improving the think like store managers and maximize the efficiency of store operations. Our new inventory capabilities of each of our 10. store in Japan. we will seamlessly increasingly tough conditions in the apparel business. I want us to fully embrace “Koten to pick up their online purchases. 2017 and uses radio-frequency identification (RFID). we stores and online) and have them delivered to any can offer LifeWear that perfectly suits local lifestyles. By delivering collaboration items (only available in large-format tailored product mixes and marketing strategies. which were first introduced in spring stores need to offer ever better services and ever more 2016.000 locally-stationed management system. or check their Keiei” (local store management) principles in order to measurements in-store to facilitate purchasing semi- grow individual store sales while reducing costs and tailored clothing online. 14 .store and Management Online Shopping Japan’s shrinking and aging population translates into As our online operations expand. which was introduced in fall full-time employees. To maintain our competitive edge. CEO INSIGHTS Optimizing Efficiency at UNIQLO Japan UNIQLO Nagoya store Promoting Local Store Fusing In. as well as pacesetting price leadership.

To promote further expansion. I want to open more stores offering both brands under one roof to capture new synergies and better meet customer needs.GU: New and On-Trend Fashion from Japan Rising to Challenges After several years of strong growth. I believe that challenges inspire positive change. GU revenue currently stands at approximately ¥200 billion. GU’s strength lies in its ability to rapidly incorporate the latest fashions and offer them at amazingly low prices. our low-price GU casual fashion brand reported a sharp decline in profit in FY2017. Once we answer this question. We should use GU’s modest FY2017 performance as a springboard to overhaul the entire supply chain—from product development to materials procurement—and to develop new production bases. so the two brands do not compete. and GU stores in Mainland China and Taiwan are coming into their own. The operation faced multiple challenges in arenas such as management structure. we need to establish GU’s global brand position and expand its international presence. The most pressing issue is how to redefine GU as a brand that can establish a solid position in global markets. The GU store we opened in Hong Kong in March 2017 has enjoyed great success. I am determined to grow GU into a successful fast moving brand from Japan and a second pillar operation for the Fast Retailing Group. personnel training. Going forward. 15 . but our target is to create a ¥1 trillion brand over the next decade. The GU concept is different from UNIQLO. product development. organizational power. production lead times and low-cost store management. I would also like to open GU stores in South Korea and Southeast Asia. we can pursue further rapid expansion of the GU business.

happiness and satisfaction of wearing such great clothes To enrich people’s lives through our unique corporate activities. Changing conventional wisdom. Additionally. FAST RETAILING WAY (FR Group Corporate Philosophy) Changing clothes. taking Change the world. Change the world. and to seek to grow and develop our company in unity with society 16 . This improves on traditional retail set- global citizen. GROUP MISSION To create truly great clothing with new and unique value. Changing conventional wisdom. are “Changing clothes.” Our corporate statement forms the initiative to offer customers the best possible products basis for how Fast Retailing tries to be a truly good and services. Global One encourages providing customers with great clothing and all Group businesses to share their success stories and impeccable service. We want employees to channel their ups. Zenin Keiei means all Fast Retailing staff. and to enable people all over the world to experience the joy. global best practices with each other. where managers make decisions and in-store individual creativity into promoting innovation and staff follow orders. CEO INSIGHTS Managerial Thinking at Every Level Encouraging All Staff to It is important to inspire employees worldwide to work passionately under our “Zenin Keiei” and “Global Think Like Managers One” principles. from in-store part-timers to top managers. empowered to adopt a managerial mindset.

0 (FY) ‘00 ‘01 ‘02 ‘03 ‘04 ‘05 ‘06 ‘07 ‘08 ‘09 ‘10 ‘11 ‘12 ‘13 ‘14 ‘15 ‘16 ‘17 *Compiled from individual annual report data and calculated using exchange rates as of end August 2017.0 2.Sales at Leading Apparel Retailers (trillions of yen) FAST RETAILING (UNIQLO) H&M 3.0 0. In contrast to their focus on fast Rewarding shareholders remains one of Fast Retailing’s fashion. both of these companies are apparel retailers that successfully Our policy is to offer high dividends that closely reflect manage all processes from planning and design business performance. UNIQLO’s LifeWear concept of ultimate finances and provide good shareholder returns. position as the world’s number one apparel retailer. Retailing is the world’s third largest apparel retailer in terms of sales. Aiming to incorporate customer preferences and respond to their needs. not the clothing. By 2015. In everyday clothes differentiates us from brands such as FY2017. we are transforming our business model to better 17 . we maintained our annual dividend at ¥350. ZARA and H&M. growth. In 2000. clothes are meant to suit the values of the person wearing them—that individuality comes from the wearer. Fast Strong Performance. This will drive the evolution of LifeWear Be Number One and will put customers at the center of the creation of their clothing. As the Ariake Project bears fruit. Like us.5 2. LifeWear stems from the conviction that most important objectives. We use profits to fund future through production and retail.0 1. while retaining earnings to ensure healthy However. behind Inditex (the operator of the Strong Dividends ZARA brand) and H&M. We will uphold that commitment as entirely new business model to help establish our we strive to make the world a better place.5 0. I am passionate about transforming Fast Retailing into Fast Retailing exists to enrich society and our a digital consumer retail company and creating an customers’ lives.5 1. they were roughly the same. Fast Retailing sales were just 20% of GAP’s.5 Inditex (ZARA) GAP L Brands 3. Today.

258 2. Revenue: ¥1. GLOBAL BRANDS GU profit down considerably on sluggish sales of advertising ¥ 340.1 campaign items and unfavorable YoY comparison.2 billion (+148.958 ( ¥ 708. European operation profitable. Southeast Asia & Oceania and South Korea. operating profit: ¥176.978 UNIQLO 18. FISCAL 2017 BUSINESS PERFORMANCE SNAPSHOT Achieved a record performance.828 1.160 GLOBAL BRANDS 2.3% 2.2% YoY).203 INTERNATIONAL 2.0% 1. UNIQLO USA loss halved.2% YoY). billion Revenue by Business Segment 3.1 billion ) ¥ 708.7 billion Revenue and Store Numbers 585 622 519 433 336 368 276 229 176 118 62 90 7 8 11 13 15 22 25 29 FY ‘84 ‘85 ‘86 ‘87 ‘88 ‘89 ‘90 ‘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 .753 INTL ( ¥ 340.4 billion (+38. profit attributable to owners of the parent: ¥119.1 billion ) 1.8619 trillion (+4.7 billion ) 2.232 UNIQLO JAPAN 655 ¥ 810.6% YoY).632 1.088 38.5% 2.1 UNIQLO JAPAN billion 2.222 UNIQLO ( ¥ 810.294 STORES 3.449 43. UNIQLO International operating profit near doubled on strong results from Greater China.

UNIQLO International revenue expected to surpass South Greater Korea China UNIQLO Japan in FY2018.4 % operating profit margin to 15% over the medium term.1% of UNIQLO International growth. improving accuracy of ¥ 340.9 billion . Other goods distribution efficiency. and see strong potential for Theory’s Sales by Brand PLST label as a new reasonably priced brand.7 billion +1. Baby.tam J Brand Revenue Improve GU performance by strengthening YoY product development. operating profit ¥200 billion. Southeast Asia & Oceania and YoY South Korea to serve as medium-term drivers ¥ 708. YoY 14. Clothing Segment UNIQLO INTERNATIONAL FY2017 Results Future Outlook Southeast Asia & Oceania Revenue Greater China. Theory Expect Theory to exhibit continued steady growth. Operating profit YoY Pursue Ariake Project with the aim of increasing ¥ 95.6.1 billion + 3. in the medium term.1 billion + 8. expanding e-commerce services.5% ¥ billion ¥1 trillion sales. and tackle issues such as improving Kids.4 % and buoyant online sales.0 develop GU as a second pillar brand with + 47. 19 .5% initial production volumes and bolstering frameworks for swift additional production of strong-selling items. UNIQLO Southeast Asia & Oceania targeting Europe and 30% annual growth and revenue of ¥300 billion North America within five years. Operating profit YoY UNIQLO Greater China five-year targets: ¥ 73. Achieve stable future growth through cost cutting and determined Men’s control of discounting.UNIQLO JAPAN FY2017 Results Future Outlook Revenue Expect further same-store sales growth thanks Women’s YoY to easily recognizable everyday price strategy ¥ 810.1 billion + 95. improving accuracy of demand Sales by forecasts and reducing production lead times. Plan to accelerate GU’s GU Operating profit global development and. Sales by Region GLOBAL BRANDS FY2017 Results Future Outlook Comptoir des Cotonniers Princesse tam.4 % revenue ¥1 trillion.

7 billion 0 ¥708.86 Other 2.7 billion rise on aggressive store openings and strong China and UNIQLO Southeast Asia & Oceania were strong same-store sales growth. Operating Profit Earnings per Share ¥176.0 % +1.500 150 billion ¥1. contributing factors.8619 UNIQLO International’s 38. Buoyant revenue gains at UNIQLO Greater ¥52.70.4 Basic earnings per share increased almost 150% year on billion.6% year on year to ¥176.40 International ¥810.70 +148.86 trillion +4.8 billion ¥340. and UNIQLO International (+95. which increased the value of profit up 47.80 UNIQLO UNIQLO Japan 0.1 billion ( 43.0%) (FY) ‘07 ‘08 ‘09 ‘10 ‘11 ‘12 ‘13 ‘14 ‘15 ‘16 ‘17 JGAAP IFRS Consolidated revenue rose 4.4 billion 900 90 600 60 300 30 0 0 (FY) ‘07 ‘08 ‘09 ‘10 ‘11 ‘12 ‘13 ‘14 ‘15 ‘16 ‘17 (FY) ‘07 ‘08 ‘09 ‘10 ‘11 ‘12 ‘13 ‘14 ‘15 ‘16 ‘17 JGAAP IFRS JGAAP IFRS Grew by an impressive 38. long-term foreign-currency holdings in yen terms.20 0.1 billion ( 0.5%.2% year on year to ¥1.200 120 ¥176.0% contribution to total trillion. thanks to a near doubling in operating profit at year to ¥1.2 % 38. UNIQLO Japan a ¥16.4% YoY).6 % ¥1. Global Brands operating costs after yen depreciation. FISCAL 2017 FINANCIAL HIGHLIGHTS Revenue UNIQLO International’s Contribution to Revenue ¥1.2 % Business profit Operating profit (bln yen) (yen) 180 ¥184 1.4%. revenue is gradually approaching UNIQLO Japan’s 43. Revenue increased in all three business segments.5% but UNIQLO International reported an especially robust contribution. 20 . thanks to higher operating profits.5%) ( 38.9 billion gain recorded under finance income and operating profit down 6.4 billion +38.00 trillion Global Brands ¥2.2%) 1.169.169.70 1.60 (18.3 pt (trln yen) ¥1.169.3%) 1.

3 % +11.0 20.0 60.0 20.0 billion finance cost.0 30.7 15.0 (FY) ‘07 ‘08 ‘09 ‘10 ‘11 ‘12 ‘13 ‘14 ‘15 ‘16 ‘17 (FY) ‘07 ‘08 ‘09 ‘10 ‘11 ‘12 ‘13 ‘14 ‘15 ‘16 ‘17 JGAAP IFRS JGAAP IFRS ROE rose 11.0 80 200 80 20.0 0 0 29.8 600 billion 240 60. 21 . * The negative FCF in FY2016 included a ¥186.0 (FY) ‘07 ‘08 ‘09 ‘10 ‘11 ‘12 ‘13 ‘14 ‘15 ‘16 ‘17 (FY) ‘07 ‘08 ‘09 ‘10 ‘11 ‘12 ‘13 ‘14 ‘15 ‘16 ‘17 JGAAP IFRS JGAAP IFRS Totaled ¥683.1 billion in net cash sharply after yen appreciation reduced the value of foreign- from operating activities and ¥122.0 0.0 % % 40.8 billion +77.0 0.0 80.3 pt (%) (%) 30.0 70.0 25.8 billion with free cash flow (FCF) reaching Stood at ¥350.ROE Ratio of Equity Attributable to Owners of the Parent to Total Assets 18.7 billion from investing currency denominated assets in yen terms.7% +6.0 pt 52.0 5. generating a activities.0 160 400 160 40.0 billion 320 800 320 80.3 50.9 1.3 billion after yen depreciation triggered a rise in cash flow hedges.7%. ¥37.3 billion.0 10.000 400 ¥350 100. while capital increased year on year.3 points year on year to 52. FCF included ¥212.3% after profit attributable to This ratio rose 6. The FY2016 dividend payout ratio rose ¥334. by ¥164.0 52.0 10.9 billion.9 -150 0 % 0.4 % ¥350 + ¥0 - Free cash flow (left) Cash and cash equivalents (right) Dividend per share (left) Dividend payout ratio (right) (bln yen) (bln yen) (yen) (%) 400 ¥334. Cash and Cash Equivalents Dividend per Share ¥683. Total owners of the parent increased approximately 150% assets increased by ¥150.0 240 ¥683. The FY2017 ratio returned to the traditionally recognizable level of approximately 30%.0 points to 18.0 90.0 18.5 billion investment in deposits with over three-month maturities.

CORPORATE GOVERNANCE 22 .

TOGETHER 23 .DOING THINGS RIGHT.

Former president of Nichimen Corp. the Board of Directors’ role as a key collective that consistently highlights and considers risk-side factors is more important than ever. CORPORATE GOVERNANCE Messages from Our External Directors A Responsible.).” As an external director. Visiting professor at the Graduate School of Business Administration at Keio University. Appointed November 2005.. I am committed to actively nurturing management personnel. and suggest how to best increase that value. Appointed November 2005. Visiting professor at Waseda Graduate School of Finance. Accounting and Law. operational and functional borders to communicate effectively and resolve issues swiftly. Ltd. I am committed to providing further broad support going forward. Nobumichi Hattori External auditor at Frontier Management Inc. External director at Meiji Holdings External Director Co. Accountable Public Company Tadashi Yanai is a highly ethical businessman. to a more public “your company. I want to apply my experience at a major US investment bank to objectively judge how capital markets perceive Fast Retailing’s corporate value. chairman and president of Accenture Japan Ltd. (currently Sojitz Corp. and chairman and co-CEO of Sojitz Holdings Corp. but it is extremely important that the company transitions from a “my company” under Mr. Previously representative director. and DAIKYO INCORPORATED and an adviser at MAEDA CORPORATION. so it is important that management teams can transcend regional. Currently an M&A research specialist. External Director Independent Director Maximizing Corporate Value As Fast Retailing enters a new phase of growth. Formerly worked at Goldman Sachs. and encouraging employees all over the world to develop managerial mindsets. I intend to continue suggesting ideas and different perspectives. Yanai. specializing in management design. and offer advice to aid Fast Retailing’s quest to become the world’s number one brand. I closely monitor and evaluate Fast Retailing growth on behalf of company stakeholders to ensure all achievements are healthy and correct. Appointed November 2007. Currently a visiting professor in the Faculty of Science and Engineering Toru Murayama of Waseda University. Currently serving as an external director at Toru Hambayashi UNITIKA LTD. 24 . and external director at Hakuhodo DY Holdings External Director Independent Director Inc. Determined Development of Management Personnel Fast Retailing is working hard to become a true global retailer.

. I offer objective advice and expertise on environment. (Japan). and director of Control Store Operations Support at UNIQLO CO. Currently vice chairman of Special Olympics Nippon External Director Independent Director Foundation and an external director at Works Applications Co. Ltd. Previously a director of McKinsey & Company. Masaaki Shintaku Appointed November 2009. DENSO CORPORATION and Ajinomoto Co. the company is working to build a strong identity in terms of the value it brings to society. Previously executive vice president of Oracle Corp.. (US) and chairman of Oracle Corp. As an external director. 25 . Currently a president of the Yasumoto CPA Office. he serves Appointed November 2012. and external statutory LTD. Inc. MS & partner in the Anderson Mori & Tomotsune Serves as an statutory auditor for UNIQLO AD Insurance Group Holdings. Improving Social Value As a growing global company. Sports Co. A lawyer. as an external director for MAEDA CORP. Inc.. Takashi Nawa Appointed November 2012. ASKUL Corp. and LINK THEORY JAPAN CO. Currently a professor in the Graduate School of International Corporate Strategy at Hitotsubashi External Director Independent Director University. Now. and the company is steadily attracting personnel who eagerly tackle new challenges. and external statutory auditor at at ASIA PILE HOLDINGS CORPORATION and auditor at The Asahi Shimbun Company.). Served as Appointed November 2012. He is also a part-time director UNIQLO CO. and FRONTEO. Nurturing talented managers to act as dynamic drivers of growth is vital at this time. (currently McDonald’s Corporate Transformation and FR Corporate Holdings Company (Japan) Ltd. LTD. Inc. The Board must work as a unified team to help accelerate progress and future growth. LTD. Also serves as statutory auditor at CO. Accelerating into a New Era Fast Retailing has worked to form a cohesive corporate Group and promote globalization. LTD.U. LTD.. president at Genesys Partners and external director at NEC Capital Solutions Limited. Ltd. Accordingly.. FR Group 4 Co. and Dunlop law firm. it is transforming itself into a digital consumer retail company. Management. Served as 3 deputy president and advisor to McDonald’s director of FR Group Auditing. an external statutory auditor at KADOKAWA DWANGO CORPORATION.. 4 Akira Tanaka 5 Masaaki Shinjo Internal Full-time Corporate Auditor Internal Full-time Corporate Auditor 2 1 5 Appointed November 2006. and making solid investments in new fields including distribution transformation and IT systems. (Japan). social and governance (ESG) matters to help Fast Retailing progress in this area. Auditors 1 Takaharu Yasumoto 2 Akira Watanabe 3 Keiko Kaneko External Statutory Auditor Independent Director External Statutory Auditor Independent Director External Statutory Auditor Independent Director Appointed November 1993. it is important that Fast Retailing continues to improve its social value alongside its business growth and operational value. Currently Appointed November 2006. CO.. internal auditor of G.. LTD. seeking fresh growth opportunities by tackling social problems from a broad perspective.

THE UNIQLO BUSINESS UNIQLO. PROPELLING CLOTHING INNOVATION 26 .

The boa fleece material has an airy texture similar to sheep’s wool. This is the perfect winter sportswear.Our BLOCKTECH fleece with ultra-slim windproof coating is warm. easy to move around in and offers great protection against bitter winter winds. 27 .

UNIQLO LifeWear is high-quality. 28 . innovative clothing that is universal in design and comfort—it is made for everyone. UNIQLO’s market share is expanding worldwide as it develops radical new materials together with the world’s best fabric technology innovators and creates basic designs using superior natural materials. UNIQLO leverages today’s increasingly digital world to communicate directly with customers and quickly transform their desires into actual products. everywhere. production and retail. HOW TO BE The Secret to UNIQLO Success UNIQLO is able to produce such an amazing number of unique products because our business model unifies the entire clothes-making process—from planning all the way through design.

Our online shopping enables customers (Designers/ BECOMING WORLD NO. UNIQLO is TE C US companies. supima cotton. The team performs big data analysis of customer feedback. UNIQLO’S CORE STRENGTHS Procuring the World’s Reassuring. and procurement kids’ and baby wear means that shopping at of materials UNIQLO is a fun family event. want. Paris. A Business Model to Satisfy New Functional Materials Quality Clothing Every Customer Need Our unique heat-generating HEATTECH material is Unlike many other apparel manufacturers. exclusive online ranges and semi-tailored clothing designed to satisfy every need. CUSTOMERS GREAT Easy Shopping. This is helping us create a same essential inventiveness and ingenuity. UNIQLO is proud of its high-quality products. mass orders. These insights are then incorporated into an ultra-thin wind-proof film) are all products of the centers in Tokyo.com browsing summer innerwear. UNIQLO enjoys strong demand from a broad DESIGN into products. Creating Fresh Demand with Simple. which gather relevant swift. Our well-organized displays make it easy to find what you want and Materials customers appreciate our attentive in-store Merchandising R&D manufacturers START service. Its job is to now close to perfection thanks to a long UNIQLO focuses on creating simple.1 Pattern makers) to select from a full range of special collaboration items. merino wool and other quality Partner which are based on the unrivaled traditional fabrics at such reasonable prices. New York. Our vast range of men’s. control own “takumi” teams. We do this by factories Inventory expertise of Japan’s textile industry and UNIQLO’s procuring the very best materials at the source. London. sensitive business model that facilitates Developing these innovative high-function fashion information from all corners of the globe additional production of popular items and colors. elegance and quality. ER INSIGH business management. UNIQLO also Production OM T factories to build working environments that T achieves much higher cost savings than other departments comply with international standards. and ensure committed and thorough quality online stable.store and Online Production We consider everyone in the world a UNIQLO Development planning and customer. We also work together with partner By placing larger. and provides customers with exactly what they entirely new sources of demand.quality Products Only UNIQLO can offer world-class cashmere. uniqlo. build strong mutual fabric makers all over the world to secure a Stores and trust. when and how they want it. product development. Our cool-feel AIRism wear that can be worn by people of all ages. In. our Ultra Light Down jackets customer base. UNIQLO has a customer insight team. Elegant. Best Materials PRODUCTION Warehouses SALES High. Our clothing is the epitome of patterns and UNIQLO purchasing trends to rapidly (made of lightweight. We are constantly expanding our products and services g to make online shopping even more enjoyable tin r ke Ma and convenient. women’s. everyday ensure customer needs are incorporated directly partnership with leading synthetic materials manufacturer Toray Industries. high-quality and long-term supply. Our takumi are highly skilled Our materials development team negotiates textile artisans who visit partner factories directly directly with natural materials manufacturers and Takumi to impart technical expertise. Shanghai and Los Angeles. high-density simplicity. committed to supplying consistently high-quality AM products at reasonable prices. fluff-free. . UNIQLO has understand the type of products customers are material) and our BLOCKTECH fleece (coated with established a network of product development seeking. materials and products has helped generate and use it to fuel clothing research and design.

to create innovative high-function ‘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 materials and products such as HEATTECH. design. marketing and materials development teams to determine the right design concept. Merchandisers decide product lineups and production volumes for the fall. Ultra Light Down START PRODUCT CONCEPT SELECT AND PROCURE MATERIALS DESIGN SAMPLES Bra Top UNIQLO AIRism GROWTH THROUGH Skinny Jeans Development and Procurement of Materials MOST-LOVED 01 Wireless Bra UNIQLO can secure PRODUCTS stable. high-volume supplies of top-quality Supima Cotton materials at low cost by negotiating directly with Premium Linen materials manufacturers and placing large- volume orders. we work closely with the denim industry’s reputed Kaihara UT (UNIQLO Printed T-shirt) Corporation to source denim of specific spinning Christophe Lemaire standards and dyeing specifications. For example. the R&D department holds a concept meeting with representatives from the merchandising. feel. 29 32 . Many UNIQLO products are manufactured in mass lots of PLANNING approximately one million items. spring and summer seasons. Our in-depth research and experimentation generates multi-layered improvements in the functionality. Roughly one year before a product’s intended launch. Dry Stretch Kando Pants Steteco & Relaco Merchandising Ultra Stretch Jeans Merchandisers play a vital role in the product creation process. a world-leading synthetic fiber UNIQLO Paris R&D Center manufacturer. its color and silhouette can be refined multiple times before it is finalized. The Extra Fine Merino materials used for our core items are HEATTECH particularly important. Cashmere silhouette and texture of our clothes. Research & Development (Designers/Pattern Makers) UNIQLO’s R&D centers continually research the latest new materials and the latest global fashions. materials and marketing approaches required to satisfy pre- Leggings Pants determined seasonal concepts. Merchandisers also Danpan Warm Pants closely monitor sales levels and decide whether to increase or reduce production for particular items Body Shaper during a season. They communicate closely with many other departments BLOCKTECH before determining the planning. Designers then prepare designs Maternity and refine samples. We also partner Artistic Director. Even after a design is decided. UNIQLO UV Cut Cardigan winter. from design through production. Fleece with Toray Industries.

Customer concerns regarding expert Japanese techniques to the next States and elsewhere. quality are communicated immediately to generation of technicians.” the production department. I am proud to be passing on UNIQLO stores in Europe. we have production team staff and textile takumi technology at UNIQLO’s partner factories. and improvements are made. 02 PRODUCTION FINALIZE DESIGNS SET PRODUCTION VOLUMES START PRODUCTION Production Department UNIQLO Takumi Teams Production Network UNIQLO currently deploys about 450 “By offering instruction on dyeing As UNIQLO expands globally. UNIQLO Production Offices Istanbul Shanghai Dhaka Dyer Takumi Bangalore Ho Chi Minh City Kazuaki Iida Jakarta 33 . but our aim manufacturing base by developing each week to resolve outstanding is the same—to make truly good relationships with factories closer to production quality or management products. Istanbul and Bangalore. Dhaka. Vietnam. formed business relationships with (skilled artisans) to production offices in I can encourage workers to embrace a partner factories worldwide in countries Shanghai. Indonesia. We are looking to expand our Production teams visit partner factories Our cultures may be different. new production management philosophy such as China. the United issues. Ho Chi Minh City. Bangladesh and Jakarta. and improve the factories they work in.

03
SALES
SHIP TO INDIVIDUAL COUNTRIES START TV COMMERCIALS START ADDITIONAL PRODUCTION

Inventory Control Marketing Stores

The inventory control department Each season, UNIQLO conducts UNIQLO Japan had 831 stores (including
maintains the optimum level of store promotional campaigns for core products 41 franchise stores) at the end of
inventory. It does this by monitoring sales such as fleece, Ultra Light Down jackets, August 2017. UNIQLO International
and stock on a weekly basis, and then AIRism and HEATTECH. During the has expanded to 1,089 stores, including
dispatching necessary inventory and campaigns, UNIQLO advertises the 645 in Greater China (Mainland China,
new products to fulfill orders. At the end products’ unique qualities and noteworthy Hong Kong and Taiwan), 179 in South
of each season, merchandisers and the features on TV and in other media. In Korea, 163 in Southeast Asia & Oceania,
marketing department work together to Japan, for example, weekly flyers in the 56 in Europe and 46 in North America.
coordinate the timing of any price Friday edition of national newspapers, New store openings have been
changes to help ensure that inventory which are delivered to most households, especially rapid in Greater China and
sells out. announce week-long 20–30% off Southeast Asia.
campaigns to promote new items.

Promotional flyer TV commercial Roadside UNIQLO store
34

Online Sales

Online sales are increasingly important. In Mainland
China and the United States, these sales account for
over 10% and 20% of our total revenue, respectively.
In Japan, online sales accounted for ¥48.7 billion, or
6.0% of the total, in FY2017. There, we have improved
our online services by enabling customers to collect
online purchases from nearby convenience stores or
UNIQLO locations. We are looking to expand online
sales worldwide by offering a fuller range of exclusive
online products, special online sizes and semi-order-
made goods.

IN-STORE AND ONLINE SALES CUSTOMERS

Customer Insight Team

Our customer insight team is growing in importance
every year. It uses big data—including product
comments, purchase trends and requests submitted to
our Customer Center and made online—and analyzes
this information to predict demand and make product
improvements. UNIQLO production often continues into
the selling season, and demand predictions help us
make effective mid-season judgments and adjustments.
The information gained through data analysis also helps
us to create the products customers most desire.

35

UNIQLO GLOBAL PRESENCE

NEW YORK LONDON

LONDON ANTWERP MOSCOW
BERLIN
PARIS MYEONGDONG
BARCELONA
BEIJING TOKYO

UNIQLO Global Flagship and
Hotspot Stores SHANGHAI GINZA

HONG KONG TAIPEI SHINJUKU

SHARING
BANGKOK
MANILA
IKEBUKURO
KUALA LUMPUR OKACHIMACHI
SINGAPORE
KICHIJOJI

THE JOY OF JAKARTA
OSAKA

SHINSAIBASHI

GREAT CLOTHES SYDNEY
MELBOURNE

WORLDWIDE

BERLIN SHANGHAI

36

PARIS TOKYO Estimate for end of August 2018 TORONTO 1.089 PHILADELPHIA SAN FRANCISCO NY 5th NY SOHO 958 LOS ANGELES 798 633 446 292 UNIQLO International Store Network 181 136 92 39 54 15 26 9 14 30 ‘02 ‘03 ‘04 ‘05 ‘06 ‘07 ‘08 ‘09 ‘10 ‘11 ‘12 ‘13 ‘14 ‘15 ‘16 ‘17 ‘18 (Fiscal year-end) (Forecast) OSAKA SINGAPORE 37 .246 CHICAGO VANCOUVER BOSTON 1.

Shenzhen) 11 7 Guangxi 94 27 65 STORES digital marketing brand rankings for three consecutive years. reducing 38 .4 billion (+4. UNIQLO GLOBAL PRESENCE Greater China Five -Year Revenue Target: ¥1 Trillion UNIQLO SHANGHAI store (global flagship store) MAINLAND CHINA UNIQLO Greater China. Hong Kong and Taiwan— 9 generated record results in FY2017.1% YoY) and operating profit of 9 Beijing Liaoning ¥50. including blogs and other Jiangxi Guizhou 15 Greater China 6 8 Fujian Store Network social media.0%). reporting a Gansu China 2 Henan double-digit rise in sales in local currency terms. Shaanxi Jiangsu 1 592 14 48 Three main factors underpin our strong 15 Anhui Sichuan Chongqing Hubei 22 8 70 Shanghai performance. Second. UNIQLO continued to 2 13 Shandong Mainland Qinghai 8 30 expand favorably in Mainland China. First. However. customers fully appreciate the 22 15 Zhejiang UNIQLO brand and LifeWear concept. 2017) encourage individual stores to create product mixes that suit local climates and needs.1 billion (+37. Mainland China is huge. with revenue of Jilin ¥346. The revenue gain is deceptively Inner Mongolia 19 low due to exchange rate effects and below-target 6 61 Tianjin 15 growth in Hong Kong and Taiwan amid sluggish Ningxia Hebei Shanxi economic conditions. so we 3 +81 YoY Hainan (December 31. our local-store management policy has Taiwan Hong Kong been effective. which refers to three GREATER CHINA Heilongjiang markets—Mainland China. thanks to Hunan 44 effective digital marketing. UNIQLO has been ranked the number Yunnan Guangdong 15 one fashion retail brand in China Internet Weekly’s 684 (Guangzhou.

Greater China Growth Targets Five -year Targets: Revenue ¥1 Trillion. Developing the required human resources to Weekly meetings with stores help resolve issues and support this high-growth strategy in Greater China is an improve their business costs ratios.000 stores in Greater China by FY2021.1 (FY) ‘10 ‘11 ‘12 ‘13 ‘14 ‘15 ‘16 ‘17 ‘18 ‘19 ‘20 ‘21 ‘22 Forecast 39 .4 200 Revenue (bln yen) Operating profit (bln yen) 50.4 billion consumers in Greater China as Key to this growth strategy will be the continued an essential brand for everyday living. unnecessary inventory and improving profitability. Ever since we costs through a project to review new-store began expanding the store network in 2008. among over 1. and a focus on improving per-store sales and profitability. opening of approximately 100 high-quality new stores each year. It is our strong corporate have decided to set challenging five-year growth philosophy that earns customer support. Third. We expect to create a network of over ONE 1. among other topics. been personally committed to training individual The Greater China market has enormous potential employees in the FR management philosophy through and we have improved the operation’s profit structure monthly discussions based on FR: In Spirit and Action considerably over the past two years. UNIQLO Greater China Group Executive Vice President. I have negotiations and overhaul logistics. Yanai’s own Notes on Becoming a Business about a Chinese economic slowdown now fading. as we endeavor to increase the proportion of online sales trillion from 10% to 30%.. With concerns and Mr. Ltd. Operating Profit ¥200 Billion 346. we reduced important challenge for management. targets of ¥1 trillion annual revenue and ¥200 billion My job is to ensure UNIQLO maintains its position annual operating profit. NING PAN CEO. I also expect to see considerable growth in e-commerce. we Leader. Fast Retailing Co.

Indonesia Individual countries within the region exhibit vastly differing climates. We 14 secured a broader customer base by offering a wider Australia range of essential everyday items for year-round hot climates. The HANA TAJIMA FOR UNIQLO collection offers the perfect LifeWear for women in the modern era. Thailand: 35. UNIQLO GLOBAL PRESENCE New Horizons for Southeast Asia & Oceania Eight years after opening its first store in Singapore. polo shirts. religions and fashion tastes. 40 . UNIQLO Southeast Asia & Oceania Malaysia sales grew to approximately ¥110 billion and operating 25 profit doubled year on year to approximately ¥14. Customer support is 35 growing thanks to increased brand awareness and a Thailand 47 deepening appreciation of UNIQLO’s LifeWear concept. worked with STORES +25 YoY An exquisite mix of traditional values and modern design from (December 31. short pants and UT T-shirts. so we created specialist design teams to compile product mixes that serve each area’s needs. Indonesia: 14. the region’s first global flagship store.0 Singapore billion. SOUTHEAST ASIA Philippines: 47. we 178 transformed distribution structures. Malaysia: 43. helping to improve overall profit margins. Dramatic increases in per-store sales helped push the 14 business onto a strong growth track. We also developed the HANA TAJIMA FOR OCEANIA UNIQLO collection with UK-born designer Hana Tajima for markets with large Muslim populations such as Malaysia and Indonesia. UNIQLO Southeast Asia & Oceania now boasts 178 stores (Singapore: 25. 2017) fashion designer Hana Tajima. As part of that effort. The UNIQLO Orchard Central Store. Australia: 14). opened in fall 2016 in Singapore and has quickly become a beacon of UNIQLO’s fashion and philosophy in Southeast Asia. A concerted effort to improve the efficiency of Southeast Asia & business processes in Southeast Asia & Oceania has Oceania Store Network resulted in higher profitability. cultures. This collection and Baju Melayu for men are proving extremely popular. 43 Philippines In FY2017. such as T-shirts.

We intend to focus this rapid new-store development in promising markets with large populations. the Philippines and Indonesia. Singapore (global flagship store) distribution companies to achieve additional Southeast Asia & Oceania Growth Targets efficiencies. such as Thailand.SINGAPORE UNIQLO Orchard Central store. reviewed in-store inventory levels and improved personnel cost ratios. Our aim is to become the number one brand in Southeast Asia & Oceania. Malaysia. ¥300 Billion 300 billion We are working hard to train new management personnel as part of our plan to accelerate new store within Five Years openings. We are targeting annual growth of approximately 30%. with the overall goal of increasing our current sales of ¥110 billion to ¥300 billion over the next five years. We reviewed our new- store negotiating process in preparation for a future Revenue of mass expansion and successfully reduced purchasing costs by increasing local production ratios. 110 Revenue (bln yen) Operating profit (bln yen) (FY) ‘10 ‘11 ‘12 ‘13 ‘14 ‘15 ‘16 ‘17 ‘18 ‘19 ‘20 ‘21 ‘22 Forecast 41 .

42 opened September 20. UNIQLO GLOBAL PRESENCE SPAIN First Spanish store. 2017 in Barcelona . UNIQLO Passeig de Gràcia.

EUROPE COMING SOON 25 Russia Expand Urban Sweden Belgium 11 UK 3 5 Stores. including pride in one’s work. customer tastes differ between countries. Our first Spanish store. FRANCE UNIQLO Montpellier store. a Following stable performance. UNIQLO Europe is serious approach to manufacturing. such as Sweden in fall 2018. understand the culture and concepts that UK and Russia thanks to increasingly popular Ultra underpin the UNIQLO brand. It is important to cities and expand UNIQLO’s geographical reach by ensure that European customers. historical backgrounds are different than those in Performance proved especially strong in France. as well as Uniqlo U designs by our Artistic products and original movies about Japan. 2017) UNIQLO Europe turned a profit in FY2017. Joint collections with European designers represents the essence of the entire store. attentive selection looking to grow. the Japan. got off to a very strong start. That’s why it is so September 2017. its open atrium product mix. The stairway like Ines de la Fressange and Jonathan William walls are lined with large screens featuring UNIQLO Anderson. Enter Germany 22 France Europe Store Network New Markets 2 68 Spain STORES +23 YoY (December 31. whose cultural and entering new markets. UNIQLO is Director Christophe Lemaire. We will open more stores in major of materials and refined. In Europe. France 43 . opened in Barcelona in and within countries as well. cool design. are extremely popular and showcased as a brand founded on aspects of help draw many customers into UNIQLO stores. Japanese culture. UT T-shirt and HEATTECH ranges. Rising important to appoint staff to each store who understand three stories and adorned with stained glass windows local needs and can put together the most appropriate and a traditional Catalonian chandelier. Light Down.

44 .

WHAT’S NEW AT UNIQLO Ingenious London Brand Inspires UNIQLO The UNIQLO and JW ANDERSON collection. designed in collaboration with London’s most captivating fashion brand. JW Anderson is of UNIQLO’s LifeWear concept for ultimate comfort and considered to be one of London’s most high-quality everyday clothing with JW ANDERSON’s energy innovative young designers. The winner of numerous British Fashion Awards. and creativity. Designer JW Anderson himself explains: “UNIQLO and JW ANDERSON share the same passion for making exciting Jonathan William Anderson new clothes.” became interested in theatrical clothing as an JW Anderson has used vivid. 45 . bold colors and designs to aspiring actor and launched the JW ANDERSON create this glorious collection of traditional British trench fashion house in 2008. His inventive style coats. and the same aesthetic desire to create a strong Designer impact by shedding erroneous detail in order to accentuate Originally from Northern Ireland. JW Anderson fabric and silhouette. hunting jackets and Fair Isle sweaters. The collaboration earns high praise from fashion critics and has inspired a new side to UNIQLO—an exquisite combination buyers worldwide. has enjoyed huge success since its launch in fall 2017.

46 GLOBAL BRANDS .

GU is looking into Style-smart carts introduced at the Yokohama Northport Mall store 47 . and popular products ended up has performed especially well and performance is flying off the shelves. If an item is out of stock in-store but available online. it can be delivered to the customer’s home. the monitor on the cart will display shopping recommendations. In response to strong demand.000 GU outfit combinations. Additionally. GU More Freedom with Fashion In keeping with its brand concept of “more freedom additional digital services that make in-store shopping with fashion.U. digitalizing stores to 2017. We are we ordered additional production and created new determined to revolutionize operations and transform on-trend designs mid-season. Customers can also use self-service cash registers for speedy payment. performance by reforming its supply chain. When a customer approaches one.OSAMU YUNOKI Chief Executive Officer G. also picking up in Mainland China and Taiwan. The digital fashion store also features special beacons designed to enhance the shopping experience. LTD. We increased the GU into a unique fast moving brand from Japan with number of mannequins and dressed them in appealing targeted sales of ¥1 trillion.” GU is working hard to improve more fun. We will continue expanding the GU Japan make customer service better and growing its network and will increase the number of GU international brand presence. We drew on cutting-edge technology to pilot a “digital fashion store” at GU in Yokohama Northport Mall in September 2017. The store’s new smart cart shopping experience was an instant hit. Each style- smart cart is equipped with a monitor that can display images and information about 1. GU increased its product ranges to maximize The GU store opened in Hong Kong in spring 2017 customer enjoyment. International stores from 14 to 50 in the near future. increasing GU had 358 stores in Japan at the end of August the number of products it offers. the style-smart cart shows customer reviews and information on the colors and sizes in stock at the store. outfits to showcase the latest fashion themes. CO..

J Brand The Innovative Premium Denim Label from L. At the end of August 2017. beautiful silhouettes and perfect fit. UNIQLO is using J Brand technology to develop new denim fabrics in its Jeans Innovation Center. The brand’s acclaimed comfort stems from its perfectly fitting designs and superior materials. J Brand products are recognized for their high-quality fabrics. which originated in Japan. J Brand is a Los Angeles-based fashion brand that specializes in premium denim. Theory had 538 stores and sales of approximately ¥100 billion.A. with a large presence in the United States. GLOBAL BRANDS Theory Elegant Contemporary Fashion Launched in New York in 1997. Other brands under Theory include HELMUT LANG and PLST. J Brand is sold in well-known department stores and specialty boutiques in over 20 countries. Theory is a leader in contemporary fashion that offers elegant style to modern women and men. 48 .

loungewear. swimwear and sportswear featuring original prints and bright colors. Its brand concept of “lingerie made by women for women” has resonated with customers everywhere Benefiting from the skills of France’s corsetry industry. CDC had a total of 333 stores worldwide. A high-quality yet affordable luxury brand. Comptoir des Cotonniers Refined. At the end of August 2017. with a large presence in France. the Comptoir des Cotonniers (CDC) women’s fashion brand offers timeless collections full of French esprit that appeal to the modern city woman. and an increasing number of stores worldwide.tam A Graceful French Brand that Values Individuality Princesse tam. PTT items are sold in leading European department stores and boutiques. CDC’s naturally elegant clothing features quality fabrics and sharp silhouettes and is perfect for any occasion. 49 . Timeless Fashion with French Esprit Founded in 1995 with boutiques in Paris and Toulouse.tam (PTT) is a French brand that offers lingerie. Princesse tam. PTT garments are finely crafted to the smallest detail.

50 00 SUSTAINABILITY .

high in quality. we can make the world a better place. This is our promise: to always work toward a better. protection and pleasure. more sustainable society. and built to last. working with them to aspire to a better society where we all thrive. It’s clothing that enriches the lives of people who wear it by giving them comfort. under conditions where their health. without excessive burden on the environment. 00 51 . Good clothing is made by people of diverse backgrounds working with energy and enthusiasm. Unlocking the Power of Clothing We believe we can turn the power of clothing into a force for good. making and selling good clothing. It is produced in a way that is harmonious with nature. Good clothing means simple clothing. And we will extend this same spirit to our customers and all our stakeholders. By designing. safety and human rights are respected and upheld.

In 2016. E SUSTAINABILITY Strict Environmental Standards Across E NVIRONMENT the Supply Chain Minimize environmental impact through supply chain processes Reduce water and energy use at materials factories Reduce emissions of harmful chemical substances to zero Reduce CO2 emissions and energy use in stores Remove boundaries between companies for a united approach to sustainability Promote joint initiatives with industry organizations and NGOs Reducing Harmful Chemical Emissions to Zero by 2020 Fast Retailing aims to reduce its emissions of harmful chemical substances to zero by 2020. We ceased all PFC use from the 2017 Fall Winter season. It has already published a list of target chemicals on its website. As we work toward our goal. we added alkylphenol ethoxylates (APEOs). we immediately dispatch a takumi team of dyeing and materials manufacturing experts to offer support and carry out improvements. 52 . widely used as detergents in the textile industry. We use strongly worded contracts and visit factories directly to emphasize the importance of stopping the use of APEOs. to our restricted substance list. If we discover an issue. we ask partner factories to reduce their emissions and we conduct regular monitoring to evaluate progress. we reduced the use of perfluorinated compound (PFC) durable water repellents to approximately 2% of retailed products. In 2012.

In 2014. 53 . Fast Retailing joined the Sustainable Apparel Coalition (SAC). To achieve this. In 2015. waste water. FR introduced the SAC’s Higg Index for environmental appraisal standards at major UNIQLO partner factories. Cutting Environmental Impact of Major UNIQLO Materials Producers Fast Retailing makes approximately 1. We are switching all store signage to LEDs and aim to introduce LED lighting inside all our stores as well. The Higg Index evaluates environmental standards such as greenhouse gas emissions. we are providing training on how to reduce electricity usage in stores and working with manufacturers to develop smarter air conditioner controllers that better regulate in-store temperatures. so we are serious about reducing the environmental impact of clothing manufacturers. We introduced a similar initiative at GU Japan and UNIQLO Mainland China stores in FY2015. energy use and level of chemical substances.2 billion items of clothing each year. Reducing CO2 Emissions at UNIQLO Stores UNIQLO Japan has set a FY2020 target to reduce shop- floor area CO2 emissions by 10% compared to levels from FY2013. We use the results to become better at helping partner factories minimize their environmental impact.

We will continue using the All-Product Recycling Initiative to support refugees and displaced persons.58 million items worldwide of secondhand clothing collected in UNIQLO and GU stores. S SOCIAL Meaningful Initiatives with Business Partners. delivers clothing aid to refugees and displaced persons around the world through UNIQLO’s global partnership with the UNHCR (the Office of the United Nations High Commissioner for Refugees) and other organizations. respect all personnel and promote human resource training Promote work-life balance and high employee satisfaction Expand hiring of people with disabilities and support of refugees Donated 5. Employees and Local Communities Ensure partner factory environments are healthy. Conflict fueled by ethnic and religious differences in Myanmar has displaced many people. SUSTAINABILITY All-Product Recycling Initiative The All-Product Recycling Initiative. In November 2016. By the end of August 2017. staff visited Myanmar to donate approximately 60. safe and respectful of worker rights Protect fundamental employee rights.25 million items of clothing in FY2017 through our All-Product Recycling Initiative (25. we had donated 25.58 million items to date) 54 . and forced them into terrible hardship. launched in 2006.000 items.

55 . and create proper inspection systems to improve the monitoring of working environments. serious offense E 7 (3) 19 (10) 13 (6) 14 (6) (immediate review of contract) Number of factories monitored 332 (168) 472 (227) 511 (235) 576 (273) In FY2017. we either revised or ceased production orders following discussions by the business ethics committee. We extended the system in 2015 to include working conditions and environmental impacts at fabric suppliers. and. which constitute 70% of UNIQLO’s production volume. Monitoring Results (As of August 31. direct visits from Fast Retailing (FR) Sustainability Department experts and improved support increased the number of A-grade partner factories. Fast Retailing encourages partner factories to appoint specialized inspectors. UNIQLO began monitoring working conditions in primary partner garment factories in 2004. 2017) FR Group (UNIQLO) Grade Description FY2014 FY2015 FY2016 FY2017 A No violations 1 (1) 5 (1) 55 (25) 67 (31) B One or more minor violations 175 (115) 202 (115) 239 (125) 250 (139) C One or more major violations 72 (32) 171 (73) 160 (65) 196 (84) D One or more severe violations 77 (17) 75 (28) 44 (14) 49 (13) Highly unethical. at times. Monitoring Working Environments Across the Supply Chain Fast Retailing has an established Partner Factory Code of Conduct and it works with manufacturing partners to ensure that the places UNIQLO clothing is made are safe. appropriate working environments. FR plans to offer stronger guidance after finding many D-grade partner factories were having trouble responding to changes in laws related to employee compensation and benefits. We requested partner factories that received an E grade in FY2016 to improve the things stipulated during the monitoring process. We are asking factories receiving E grades for FY2017 to make similar improvements.

open debate and decision-making in the individual committees that support the Board Use a delegated authority system to ensure management decision-making and business execution are separate functions Outline of Corporate Governance (Year ended August 31 2017) Form of Organization Corporate auditor governance model Chairman of the Board Tadashi Yanai Number of Directors 6. including 3 statutory auditors Board of Number of Meetings 13 Directors Director Attendance*1 100% Meetings Auditor Attendance*2 98. Transparent G OVERNANCE Management Strengthen the Board’s independence and oversight ability by having a majority of directors from outside the company Promote swift.9% Meetings Sample Agenda Auditing policy. Individual compensation decided through Determination of Individual Auditor mutual consultation between auditors. responsibilities. Discussion with Executive Board. actual performance and contributions. Approval of executive appointments. IT Investment Committee. Human Resources Committee. Individual remuneration determined by the Determination of Individual Director Executive Board to reflect occupational duties. Ariake Project Board of Number of Meetings 13 Auditors Auditor Attendance*2 96. Accounting Auditor Ernst & Young ShinNihon LLC *1 Average attendance of each director *2 Average attendance of each auditor Corporate Governance at Fast Retailing (As of August 31. Approval of corporate results. Current distribution department in Fiscal challenges and issues. Business Ethics Committee Election of Independent Directors 4 external directors and 3 statutory auditors elected Overall limit approved at the general shareholders’ meeting.5% in Fiscal Sample Agenda Fiscal year budget. including 29 million yen to statutory auditors. 2017 UNIQLO USA business. Fiscal 2017 compensation to the five auditors totaled 65 million Remuneration yen. Key labor issues. Accounting compliance. Disclosure Attendance Committee. 2017) General Meeting of Shareholders Elect/dismiss Elect/dismiss Consult Board of Auditors Audit/report Board of Directors Human Resources Committee (Three out of (Five out of Report Sustainability Committee five are statutory) six are external) Elect/dismiss Disclosure Committee Report Report/cooperation Elect/dismiss/oversee IT Investment Committee Accounting Internal Audit Chief Executive Officer Code of Conduct Committee Auditors Division Audit/report Group Officers Business Ethics Committee 56 . Code of Conduct Committee. Auditing of UNIQLO Japan and 2017 UNIQLO International stores Main Meetings Requiring Auditor Board of Directors meetings. including 50 million yen to external directors. Overall limit determined at the general shareholders’ meeting. Auditing planning. Sustainability Committee. G SUSTAINABILITY Fostering Prompt. Fiscal Remuneration 2017 compensation to the six directors totaled 290 million yen. including 5 external directors Number of Auditors 5.

but he respects. Fast Retailing operates under a delegated authority Fast Retailing has separate governance committees which system. three out of auditors who have served on the Board for a long time and five auditors are external statutory auditors.Our Approach to Corporate Governance As we at Fast Retailing seek to become the world’s number management. and I am often extremely impressed by way by asking what other companies are doing and his business judgments. Mr. He is always apply the brakes and take time to review a situation. I make objective about management and receptive to the opinions sure to voice my candid opinion. However. but they money and hinder speedy management. necessary for the sake of the company. which assigns responsibility for the robust oversight powers of the Board. sustainability. These might seem like easy things to do. corporate officers. making and executive functions and encourage dynamic External Auditor Interview Diverse Opinions Ensure Appropriate Management Keiko Kaneko External Statutory Auditor Fast Retailing Encourages Forward-thinking Governance Fast Retailing’s governance is forward-thinking in several Mr. we all enjoy a strong relationship of trust. disclosure. However. Yanai listens carefully to directors and auditors and Fast Retailing is still a relatively young company pursuing considers all issues from multiple angles. It’s no exaggeration to say that Mr. These external have a deep understanding of company processes. range of opinions on proposals submitted to the Board. Improvements can cost of others. including the fact that five out of the six Board always asks directors and auditors for their honest opinions members are external directors—the lone exception is Fast when weighing different options. IT investment. The majority of directors on the Board are one digital consumer retail company. Yanai is a assesses his own management decisions in an unbiased management genius. backgrounds and expertise. but if they are are exceptionally difficult. so they are able to offer a wide Yanai’s. and Mr. proper management and a surveillance ability. we undertake corporate external. There are directors and Retailing President Tadashi Yanai. when I think we need to checking if our company’s actions are unusual. responsive and transparent corporate structure. Yanai also fast growth. This is done to separate the decision. and directors and auditors have diverse professional sometimes their views are diametrically opposed to Mr. Yanai may be the founder of the company. We have The Group has adopted the corporate auditor implemented measures to ensure the independence and governance model. improvements are made smoothly. oversight of corporate governance to a Board of Auditors. In addition. our Code of Conduct and business ethics. 57 . in which the CEO and the Board delegate discretion support the decision-making duties of the Board in the over the execution of business administration to specific following areas: human resources. to heighten the Board’s independence and its governance to foster growth. it is important that I intend to continue working hard as an external auditor directors and auditors speak frankly to ensure these to strengthen Fast Retailing’s governance.

Composition of Committees (As of January 11. chaired by the individual in charge of disclosing information to the Tokyo Stock Business Ethics Committee Exchange (TSE). Akira Watanabe and Keiko Kaneko. The required notification pertaining to independent directors has been submitted to the Tokyo Stock Exchange for Toru Hambayashi. and make improvements. etc. The committee is chaired by the head of the legal and compliance department and committee members include Disclosure Committee a lawyer acting in the capacity of an external auditor. Takashi Nawa. The disclosure committee. and and offers views and suggestions to the Board. chaired by an external This committee debates and advises on the IT investments director. Notes: The head of the sustainability department chairs both the sustainability committee and the business ethics committee. Masaaki Shintaku. boosts management transparency by This committee ensures the Group does not use an disclosing information that is timely. Conduct (CoC). The disclosure committee is chaired by the individual responsible for disclosing information to the Tokyo Stock Exchange. SUSTAINABILITY Roles and Activities of the Committees Human Resources Committee IT Investment Committee The human resources committee. resolve any violations of the Fast Retailing Group Code of social responsibility activities. adjustments to human resource systems across the Group. The timely disclosure to the TSE and the Stock Exchange of committee provides advice and counsel to departments Hong Kong as well as voluntary disclosure of information based on external field inspections and partner company that may materially impact investor and shareholder surveys. which is also attended by external directors on operating the internal reporting system (hotline). The committee is chaired by the head of the investment decisions. The head of the legal and compliance department chairs the Code of Conduct committee. It advises on The head of the sustainability department chairs the educating executives and employees about the CoC and committee. accurate. 2018) = Committee Member Human Resources Sustainability Disclosure IT Investment Code of Conduct Business Ethics Committee Committee Committee Committee Committee Committee Internal Director Yanai Chairperson Hambayashi Chairperson Hattori External Murayama Observer Directors Shintaku Observer Nawa Internal Full-time Tanaka Observer Auditors Shinjo External Yasumoto Statutory Watanabe Auditors Kaneko Number of Group Officers. Nobumichi Hattori. 4 7 4 6 6 5 External Experts. 58 . compliance and diversity. as well as others. sustainability department and committee members include a lawyer acting in the capacity of an external auditor. Takaharu Yasumoto. deliberating on the efficacy of individual investments. the compilation and publication of The Code of Conduct committee considers how best to the annual sustainability report. and auditors. environmental protection. fair and advantageous position to exert undue pressure on business easy to understand. Sustainability Committee Discusses and determines Fast Retailing’s overall Code of Conduct Committee sustainability strategy. The committee is responsible for counterparts such as partner factories and suppliers. checking whether IT investment budgets submitted by external specialist organizations are reasonable and appropriate. discusses important organizational changes and that will best achieve the Group’s digital innovation targets.

The business ethics committee sends surveys to and has annual sales of ¥1.300 stores worldwide from us. the Fast department deals with compliance issues. internal control system. information display guidelines. The courses offer regulations. The Fast Retailing Group is Power. etc. Fast Retailing is committed to developing Group-wide Fast Retailing Code of Conduct (CoC) for Officers and Employees We teach the Fast Retailing Group CoC principles to all with managers. Anyone can report a potential The Code of Conduct committee regularly monitors the violation of the CoC or discuss work concerns via our compliance system and hotline operation and may offer internal reporting system (hotline). sexual harassment. Fast Retailing Head Office. Stronger Compliance Training for Officers and Employees The legal and compliance department aims to cultivate are likely to emerge in daily business activities. insider trading courses and other training opportunities. Guidelines to Prevent the Abuse of Superior Bargaining Power Building equal and amicable relationships with our business Guidelines to Prevent the Abuse of Superior Bargaining partners is extremely important. Employees receive advice or recommendations to relevant departments if confidential advice pertaining to communication problems necessary. renewal of employment contracts. working hours and paid officers and employees through a mandatory online course vacations. officer for legal affairs is responsible for overall compliance. advice can be sought from external legal counsel. commitment to them. The legal and compliance including the Group’s management principles. In some and strongly encourage everyone to sign a written cases. compliance through a number of internal controls designed The internal audit division oversees the Fast Retailing Group to ensure strict adherence to Group policies and rules.8619 trillion. measure. the business ethics committee established the and advises the relevant departments if any issues arise. and the executive Retailing Way and the Fast Retailing Group Code of Conduct. 59 . Online stronger ethical values and crisis response capabilities courses in FY2017 focused on a variety of topics including among all Group officers and employees by offering online social media and information handling. which ensure that our partner factories and suppliers in a particularly strong position in terms of bargaining power do not consider themselves under inappropriate pressure given that it operates approximately 3. Yamaguchi Internal Control Fast Retailing seeks to improve its corporate ethics and compliance systems and problem resolution mechanisms. As a preemptive the Group’s principal business partners on an annual basis. and subcontracting detailed step-by-step advice on concrete considerations that law and preventing abuse of a dominant bargaining position.

3 59.993 At year-end Total assets ¥ 404.987 319.7 ¥ 1.681 54.915 24.104 Depreciation and amortization 8.639 132.00 160.523m2 938.93 Net assets/Equity attributable to owners of the parent 2.00 Other data (at fiscal year-end) Number of shares outstanding 106.349 Operating income/Operating profit 87.720 ¥ 463.0 owners of the parent to total assets (%) Debt-equity ratio (%) 7.043 ¥ 814.014 261.454] [1.180.0 33.228.881 Profit before income taxes Net income/Profit attributable to owners of the parent 43.489m2 847.158 Net cash from operating activities Net cash from/(used in) investing activities (15.258 2.1 22.656 106.3 19.623 57.073.911 Interest-bearing debt 20. 60 .6 18.804. dollar) Net income/Profit attributable to owners of the parent (EPS) ¥ 427.263 Reference indices Operating income margin/Operating profit margin (%) 14.574 200.550.716 Income before income taxes and minority interests/ 81.656 106.941 65. Cash and cash equivalents (IFRS) includes cash.018 33.00 230.054 11.0 Dividend payout ratio (%) 30.073.2% ROE/Ratio of profit to equity attributable to owners of the parent (%) 17.00 180.777 Total net assets/Total equity 264.037 11.7 38. LTD. and consolidated subsidiaries Fiscal years ended August 31 JGAAP 2008 2009 2010 2011 For the year Net sales/Revenue ¥ 586.09 2.7 Per share data (yen.054) (16.765 12.38 ¥ 488. $ million) *5 ¥ 1.942m2 740.958 2.400 28.6 10.834 28.99 ¥ 533.9% 15. time deposits with maturities of generally three months or less and marketable securities.572.310] [1.621 152.365 EBITDA *1 97.656 Market capitalization (¥ billion.141 141.9% 16.797 61.656 106.86 2.370] [1.896m2 Number of full-time employees 8. FINANCIAL INFORMATION FINANCIAL SUMMARY FAST RETAILING CO.96 ¥ 605.088 Directly-operated stores in Japan [1.1 Equity ratio/Ratio of equity attributable to 64..535.888 169.285 ¥ 507. bank deposits with maturity over three months and marketable securities.462 202.156) Cash and cash equivalents *3 169.493 108.643) Free cash flow *2 71.467 112.994 95.6 13.073.487 116.755 Capital expenditures *4 21.016 35.9 Number of subsidiaries 21 96 90 98 Total number of stores 1.2% 14.7 56.354 Net cash provided by operating activities/ 87.091.421) (34.203 2.1 9.3 ¥ 1.17 Cash dividends 130.214 88.213] Directly-operated stores overseas [294] [397] [474] [491] Franchise stores [354] [407] [359] [384] Commercial complexes 4 4 4 4 Total sales floor space (m2) *6 685.867 93.182.6 ¥ 1.529 49.612 *1 EBITDA (JGAAP) = Operating income + Depreciation and amortization + Amortization of goodwill EBITDA (IFRS) = Operating profit + Depreciation and amortization *2 Free cash flow = Net cash from operating activities + Net cash from/(used in) investing activities *3 Cash and cash equivalents (JGAAP) includes cash.413 287.017 22.601 28.229 18.234 30.0 56.897) (26.273) (23.596 14.451 ¥ 685.389) (26.523 9.336 59.34 3.073.515 Net cash from/(used in) financing activities (19.847) (28.4 32.287 ¥ 533.811 ¥ 820.378 116.

512 (0.405] [1.052 119. *5 Calculations are based on the closing share price of ¥31.168 +114.026.119 ¥1.982 30.7 ¥ 3.0) 38.3 64.802 +77.862.40 7.175.676 90.027 92.4% 9.5% 20.S.639 44.043 +27.971 ¥1.192.597.3 64.463] [1.6 ¥ 5.392.4 6.669 ¥1.465 281.294 [1.688m2 2.470 at the end of August 2017 and an exchange rate of ¥110.706 ¥1.474 110.726 636.$1.758 36.367] [589] [743] [1.1 7.573 23.00 350.188.957.643 99.1% 9.59 3.618m2 2 2 18.98 260.607] +[202] [1.4 74.607] [383] [375] [275] [294] [292] [320] +[28] [320] 4 4 4 4 4 4 — 4 1. *6 Total sales floor space includes only directly operated stores.353m2 1.073.3 62.4 pts.089 216.450 134.687 157.901. 9.7 6.804 597.0 63.2 41.8% 7.468 (35.561 38.463 127.142.667 150.781 ¥1.272 61.797.755 +14.222 2.041 774.835.814 62.389) 266.35 7.5 46.259 37.250] [1.00 350.210 202.595 134.62 ¥ 1.387 59.461 52.383.429 40.381 (13.854 23.240 127.486 +12.634.1 541.656 106.0 6.935 ¥1.854.367] ([96]) [1.4) 29.160 3.9 ¥ 703.607 30.7 12.035 283.808 37.753 2.402 164.1% $12.169.366.049 355.292 176.656 106.0 32.238.060) (41.958 — 3.294 +134 3.2% $ 10.755 212.2% $16.5 16. dollars *5 JGAAP IFRS 2012 2013 2014 2015 2016 2017 YoY 2017 ¥ 928.452.3 18.574.221 164.027 48.473 13.067.890 54.096 123.594 394.938.031m2 2.331] [1.1 49.073.033.5 6.145) (245.S.7 ¥ 3.656 — 106.9 359.449 2.751.51 ¥ 1.892 589.4)% $ 30.930m 2.7 1.231 91 102 112 119 120 121 +1 121 2.42 ¥ 471.786.931 98.101 130.07 5.080.280 +148.102 ¥ 901.2 1.3 65.4 52.079.42 to U.073.656 106.68 ¥ 731.939) 122.387.0 18.12 6.102 +31.598.797 39.31 ¥ 1.546 110.073.444] [1.00 300.414 +38.4 21.1 5.7% 9.073.688 +7.661 762.330 36.431 683.7) 2.226) (44.7 +6.741 18.708 161.072] [1.7 37.656 106.484 71.6 1.095m2 2.5 6.390 155.313 23.654 104.473 ¥1.194 37.9 (44.141 126.056) (24.790 — 1.917 +4.5% +2.163.584) (56.549.656 106.073.495 (29.3 1.307 ¥1.424 +785 44.3 52.448 41.470 180.237 193.392.165 ¥ 595.225.0 28.786 (147.7 38.428 (50.398 +114.656 ¥ 1.6% 11.04 5.7 (11.367m2 1.020 296. 61 .70 +148. Millions of yen Thousands of Millions of yen (except Per share data and Other data) U.323) (73.708 314.35 +27.073.978 3.8 1.732 135.424 *4 Finance leases is disclosed in the capital expenditure data from FY2017.0 ¥ 3.618m +203.388.030.681 58.836) — (460.313) (62.921.00 290.240] [1.646 43.112.784) 201.861.406] [1.17 106.00 350.208 ¥ 992.184 39.184) 334.3 29.382.595 74.170.7 ¥ 33.681.212 385.3 +11.00 — 3.

0 billion net cost).6 billion.8619 trillion (+4. While operating Belgium 2 2 0 0 profit at GU contracted by ¥8.7) (12. 1 Operating Environment and Number of Stores by Group Operation (Unit: Stores) Management Strategy (FY) 2016 2017 End Aug.7 +95. CDC.4 billion Group (+38.7 +8..7 billion).9 +1.6) 95.160 3. 2017) recording of a foreign exchange gain following yen depreciation. after a weakening in Note: This table does not include mina or Grameen UNIQLO. a large improvement in Russia 11 20 9 0 profitability from UNIQLO Southeast Asia & Oceania. 10 10 0 0 operating profit.8619 trillion and Australia 12 12 1 1 operating profit increased by 38. Ltd. personal consumption remains cautious.6 708.0 4.5 (4.5 +47.K.6 +2.374 81 72 Brand declined.8 ¥19.1 35. Performance by Group Operation (FY) 2016 2017 Billions of YoY change % YoY change % Billions of yen yen Billions of yen change Billions of yen change UNIQLO Japan Revenue ¥799. Theory.5 billion) Malaysia 35 41 6 0 and buoyant international conditions fueling a near doubling of Thailand 32 34 2 0 UNIQLO International operating profit (+¥35.tam* 137 131 2 8 retirement of fixed assets of ¥2.70 (+148. such as real estate leasing. and a Germany 3 5 2 0 halving of operating losses at UNIQLO USA. in Fiscal 2017 Basic earnings per share: ¥1.1 52. including continued significant profit gains France 10 19 9 0 from the Greater China region.4 Operating profit 102.4 51. Annual dividend per share steady at ¥350.2 +11. FINANCIAL INFORMATION MANAGEMENT’S DISCUSSION AND ANALYSIS Achieves record result..4 Global Brands* Revenue 328.5 ¥810.0) 14. End Aug.5 +3. impairment losses at J Global Brands 1. 62 Consolidated operating profit includes Fast Retailing operating profit.6% YoY).5 billion. Note: Consolidated revenue also includes items reported by the holding company.169.294 257 123 closures. resulting in an operating profit gain for Global GU 350 372 41 19 Theory* 530 538 30 22 Brands overall. As a result.3 340.2% YoY) on a strong rise in operating profit and the (Year to August 31. J Brand.9) (13.6% to ¥176.7) 73. Indonesia 9 12 3 0 consolidated revenue increased 4. and we UNIQLO International 958 1. Performance GU profit down from strong previous year on weak sales of featured campaign items. Hong Kong 25 25 0 0 Our FY2017 operation reflected this broad economic Taiwan 63 65 3 1 pattern. and Standard 593 581 11 23 customers are increasingly discerning with their purchases. and store losses and losses on Princesse tam. Franchise 39 41 2 0 The global economy is on a gradual recovery track. 45 44 4 5 Several factors contributed to the impressive increase in Canada 0 2 2 0 U. Open Close While improvements in the employment and wage UNIQLO Japan 837 831 23 29 environment are fueling a gradual recovery in the Japanese Directly operated 798 790 21 29 Large-scale 205 209 10 6 economy.7 ¥10.9 billion net finance income in * Including franchise stores FY2017 (FY2016: ¥37.9 (6.7 billion relating to store Total 3.5 * Global Brands includes GU. operating profit: ¥176. U. We reported a ¥16. with sluggish Japanese apparel consumption resulting South Korea 173 179 13 7 Singapore 24 24 1 1 in a decline in UNIQLO Japan operating profit (-¥6.5 33.4) UNIQLO International Revenue 655.089 153 22 note buoyancy in Greater China. We recorded impairment losses of ¥9.4 billion. Global The Philippines 32 40 8 0 Brands’ operating profit increased by ¥4. .5 Operating profit 9. UNIQLO International drives Group growth as operating profit nearly doubles.7 +8.5) (6. Southeast Asia and the Mainland China 472 555 90 7 United States.S.3 billion Comptoir des Cotonniers* 348 333 8 23 on J Brand and systems.2% to ¥1.2% YoY).1 11.4 (14.8) (34.4 (5.365 1. Revenue: ¥1. Fast Retailing Co. PTT.1 Operating profit 37.

5) 39.678 +1.259 +3. The Southeast Asia & procurement costs rose on the back of a weaker yen.077 +25.7 point reduction in its business cost That requires aggressive investment in various areas.1% year on year.891 +7.6% year on year to ¥176.4 point year on year to 38.790 7. full-year same-store sales grew 1. UNIQLO overseas subsidiaries after the yen weakened against the US International revenue rose strongly as an additional 131 stores dollar from approximately ¥103 to ¥110. design and materials Group-wide cost-cutting drive. 2 Revenue 5 Other Income/Expenses Consolidated revenue rose 4.533 +12.3 Others 139.215 ¥22. ¥11.0 (Greater China: +85. logistics and digital marketing. As a result.863 ¥122. easily recognizable presence.2 billion. UNIQLO Japan reported a mild 0. and ¥10.1 154.9 billion from UNIQLO Japan.1 billion forex gain billion from UNIQLO International.218 +4. we are focusing on International.136 +4. There was a ¥12.668 +22.324 6. from planning.the yen over the financial year increased the yen value of our 3 Gross Profit Margin foreign-currency denominated assets.4 billion increase.784 +20.8619 Other income and expenses totaled -¥7.6 Depreciation and amortization 37.555 8. The SG&A to net sales company.9 242.9 Outsourcing 29. distribution and retail.1% year on year to ¥909.7 billion).356 4.9%.6 billion J +19. (ii) ¥3. The impressive 148.2 63 . billion. profit attributable to owners of the parent increased by an Gross profit rose 5.2% to ¥119.688 2. We intend to open more GU Japan stores and develop Administrative Expenses (SG&A) GU’s international presence in Greater China. and more global flagship stores and large-format everyday prices reduced overall discounting rates.2 billion.0 171.7 billion) loss including: (i) ¥3. an especially successful 1.487 +4.797 (961) (2.4 points to 9.089.6 ¥725. Southeast Asia and all systems. including a ¥2.6 ¥ 70.277 +14. Southeast Asia & Oceania: billion (FY2016: ¥24.437 27.1) Salaries 230. This breaks down into ¥52.033 11. Operating profit margin improved 2.2 billion. costs as well as various cost-cutting efforts in each region.9) Rental expenses 166.8 33. following our our entire supply chain. South Korea: +6. 6 Operating Profit thanks to a successful November UNIQLO Anniversary Sale. General and Korea. To consolidate business model.956 ¥31. retirement and store closure other areas reported growth in same-store sales. and Greater China.937 ¥ (674) (0.602 4. Breakdown of SG&A Expenses (FY) 2015 2016 2017 Millions of YoY change % Millions of YoY change % Millions of YoY change % yen Millions of yen change yen Millions of yen change yen Millions of yen change Advertising and promotion ¥ 68. and (iii) impairment.6 33. we are opening improvement in its gross profit margin. gross profit margin expanded 0.0 point improvement in gross profit margin at UNIQLO becoming the world’s No. a ¥75.502 +6. North America: +1) expanded the Brand impairment loss.6 billion in FY2017 trillion. including ratio on the back of determined rationalization of distribution IT.474 ¥ 7.9 Total ¥671.2% year on year to ¥1.371 +27.5 billion impairment loss on network to 1.815 45.520 10. While smaller weekend more UNIQLO stores in each country where we already have a bargains and a continuation of affordable.918 +3.034 2.3 ¥702.5%.4 point to 48.0 billion loss) from temporary advances paid by Brands. At UNIQLO Japan.9 252. we are overhauling all our business practices and ratio declined 0.7 (FY2016: -¥34.235 +4. where all regions adopted a tighter discounting expanding UNIQLO International and GU.244 (358) (1.3 147.3 point UNIQLO’s position as a key global brand. GU and Theory reported higher revenue.053 28.611 ¥ 3.949 +22. and strong sales of talked-about items such as wireless bras Operating profit increased 38. Oceania region is developing into another pillar of UNIQLO International growth alongside Greater China and South 4 Selling. Europe: +20.950 +24.093 +4.5 billion from Global (FY2016: ¥11. Brands.0 174. stores in major cities worldwide.4 and Dry Stretch Kando Pants. As we transform the Fast Retailing Group into a digital consumer retail SG&A expenses totaled ¥725.8% thanks to a In order to achieve the Group’s medium-term vision of 2.6 36.1 apparel retailer.758 6. Within Global losses from UNIQLO USA stores and other locations. UNIQLO International generated procurement through manufacturing.4 ¥ 71.

1% year on year (1H: 0. We were able to improve the gross per share (dividend payout ratio 29. While we successfully cut stores. and the fact that tax effect tailored to suit Southeast Asian climates and cultures.1 billion opportunities and some items didn’t prove to be the hit (+8.70. and operating profit totaled ¥95.0% decline in operating profit to ¥13. FINANCIAL INFORMATION 7 Finance Income/Costs doubling of operating profit was due to: (i) a sharp improvement in the gross profit margin as all regional Net finance income and costs totaled ¥16.5% to ¥14. UNIQLO costs and reduced advertising spend.4%). standard personnel opened its first store in Spain in September 2017. 2.4%) operating profit rose sharply.089 stores in FY2017.9 billion in FY2017 operations shifted towards a tighter discounting business (FY2016: -¥37.2 billion margin grew to 14. costs rose in some regions.3 points.3%. 41 franchise stores) at the end of FY2017.1 billion (+37. North America same-store sales increased thanks to store sales rose 1.3 store opening costs but stayed in the black. Same-store sales declined in Hong Kong and Taiwan. resulting in a The UNIQLO International network expanded by 131 contraction of operating profit. The gross profit margin corporate tax rate after tax effect accounting was 33. point. and strong sales of products our loss-making US operation. 8 Income Taxes and Other Taxes Operating profit doubled at UNIQLO Southeast Asia & Oceania. Same-store sales continued to expand (+148.1%. systems and rent negotiations. operating profit rose to ¥50.1 billion. UNIQLO Japan had 790 directly operated stores (and rise in Theory profit and lower J Brand impairment losses. This near products we expected. and the operating profit Profit attributable to owners of the parent totaled ¥119.1%) and operating profit ¥73. two of which reopened as employee franchise profit increased 47.0% of total revenue. (ii) effective cost-cutting efforts.5% to ¥340. Dry Stretch Kando Pants. Operating 29 stores.5 billion.0 billion) after yen depreciation from ¥103 to model. the gross profit margin rose by 0. Lower-than-forecast sales resulted in a 64 . largely due to T-shirts and other core items.169. While efforts to tailor product mixes to different regional needs and a the November UNIQLO Anniversary Sale fueled robust sales. renewed focus on sales promotion.2% YoY). distribution and personnel costs also helped boost the business ratio. 9 Profit Attributable to Owners of the UNIQLO Greater China reported large revenue and profit Parent and Dividend gains.4%). UNIQLO operations in carrying amount of foreign-currency denominated assets. Revenue reached ¥346. DRY points higher than Japan’s statutory 30.4 billion (+4.9%).9 billion (-6. UNIQLO South Korea UNIQLO Japan UNIQLO Japan reported rising revenue but same-store sales recovered in the second half and full-year falling profit in FY2017. Operating profit dipped slightly on higher new- On the profit front. 2H: 2.8% rate. Revenue increased 3.1%). reaching 1. but the SG&A ratio also rose 1. Full-year same.0%). New management unusually warm weather dampened sales in the traditionally busy practices helped UNIQLO USA halve its operating loss by month of December. Basic earnings per share increased ¥698. The 2. but profits rose on improved gross 10 Results by Business Segment profit margins and lower business costs. easy ankle pants and 2016. The annual dividend was maintained at ¥350 more and more customers. mainly in Russia sales rose 15.7 billion (+1. Lower accounting cannot be applied to J Brand impairment losses. and also by rising customer visits. Additionally. The sharp rise in profit margin through strict discounting and improve the profit attributable to owners of the parent resulted in an 11.5 improved markedly thanks to fuller ranges of polo shirts. Revenue totaled ¥810.4 billion in FY2017. Same- UNIQLO International UNIQLO International reported store sales declined as product shortages resulted in lost sales rising revenue and profit. Revenue totaled ¥708. GU reported a 6.0 business ratio by actions such as reviewing distribution point increase in return on equity (ROE) to 18. Greater China.0 billion and Income taxes totaled ¥64.39 in Mainland China as timely advertising campaigns attracted to ¥1. Following a management overhaul.5%. South Korea and Southeast Asia & Oceania performed especially well.4%).6% to constitute 6. and France.4% rise in second-half same-store improving store operations and ensuring appropriate stock sales was driven by strong sales of talked-about items such as levels. UT T-shirts.3%.0 billion. Full-year online UNIQLO Europe opened 20 new stores. The effective operating profit rose to ¥14. UNIQLO opened its first store in Canada in September wireless bras.0% rise in revenue to ¥199.1 billion but a sharp 39.1 billion (+95. and (iii) a halving of ¥110 against the US dollar over the period increased the operating losses at UNIQLO USA. Revenue rose to approximately ¥110. achieving consistently favorable sales. Global Brands Global Brands reported rises in revenue and We opened 21 new directly operated stores and closed profit. and distribution costs rose temporarily as we transformed our logistics systems.0 billion on the back of a sharp stores.

net cash gained from investing activities totaled ¥122. UNIQLO CO.0% using retained earnings and free cash flow to make effective Main Consolidated Subsidiaries investments and loans that strengthen our operational base. Overall.7 billion increase in reserves and a ¥6. LTD.3 65 . plant and equipment to grow UNIQLO International Theory LLC 100.. net cash received from operating activities totaled ¥212.6 billion spent on acquiring FAST RETAILING FRANCE S. 100. The GU network increased by 22 Spring/Summer stock.0 billion.6 billion to ¥310. UNIQLO International: ¥24.decline in operating profit. 100.0% Includes a ¥168.S.3 points to 52. Global Brands: +¥0.0% ¥2. the balance of cash and cash ownership equivalents increased by ¥298.1 billion increase in other three months and other short-term assets: -¥153. but decrease in derivative financial liabilities occurred after the managed to reduce its operating loss through determined cost.0 billion to ¥1. billion. Princesse tam..8 opening stores in Shanghai and Taipei.1 billion increase in property.. Ltd. to total 372 (including 14 stores outside Japan).8 billion. Current Total equity increased by ¥164. in income taxes payable on the other. deposits with maturities over dividend payout). 100. inventories and trade payables) totaled UNIQLO (THAILAND) COMPANY LIMITED 75.3 billion Comptoir des Cotonniers reported a decline in sales. LTD. Non-current liabilities increased by ¥12. comprehensive income (including cash flow hedges). LTD.3 billion to ¥762. with the 12 Cash Flow Information addition of 131 stores by the end of August 2017. 121 Consolidated capital expenditure totaled ¥59. This figure includes a ¥19. Inc. and ¥12. and a ¥73. Japan financial liabilities on the one hand and a ¥16.1 billion yen increase in deferred tax liabilities. cash This increase includes ¥119. 100.0% billion in impairment losses.7 billion consolidated subsidiaries and 2 affiliated companies by the equity-method (UNIQLO Japan: ¥6. 100. Holding Companies The Group seeks to ensure consistent.4 profitability at Theory’s PLST label.3 billion to ¥1.0% Net Cash from Investing Activities: ¥122.8 billion). As a result. Inc.5 billion. stores.. average exchange rate on our forward currency contracts rose cutting.0% UNIQLO AUSTRALIA PTY LTD 100.3 billion to ¥683. LTD.0% taxes.1 Billion UNIQLO TRADING CO...8 billion. 51.2 billion spent on J Brand. the ratio of equity attributable to owners of the parent to (UNIQLO International: +¥22.6 billion.6 billion. UNIQLO Japan inventory declined following a successful digestion of In FY2017..0% from trade receivables.0% property. Working capital inflow (calculated FAST RETAILING (SINGAPORE) PTE. LTD. PT. performance from the US Theory operation and to improved Current liabilities decreased by ¥26. assets increased ¥153. which has been a big success.0775 trillion (cash.0% Net Cash from Operating Activities: ¥212. GU opened its first store billion. 100. LTD. and ¥9. UNIQLO International inventory increased as the store network expanded.9 billion. LTD. due largely to a ¥66. 2017) operating activities + net cash gained from investing activities) Company name Share totaled ¥334..A.3884 trillion.6 billion to ¥315. with above the actual period-end exchange rate. UNIQLO Japan: -¥4.6 billion to ¥311. Theory reported sales of billion.2 billion in greater retained equivalents and other current financial assets: +¥298. turning some an impairment loss of ¥3.8 billion. steady growth by FAST RETAILING CO.7 Billion UNIQLO EUROPE LIMITED 100. and net cash used in financing activities totaled ¥50.3 FRL Korea Co. * The Fast Retailing Group comprises FAST RETAILING CO.0% and Global Brands store networks. FAST RETAILING INDONESIA 75. ¥33. LTD.U.0% non-tangible assets such as systems investment.6 billion in depreciation and amortization.7 billion.6 billion to ¥289.2 billion increase and Asia.tam and J Brand reported losses..0% Net inflows included ¥193. tax assets and a ¥15.3 billion increase in bank deposits with G.0 billion).7 billion.3 billion decrease in derivative about ¥100 billion from operations in the United States. derivative financial liabilities into assets.0 11 Balance Sheet billion due primarily to a ¥4. After Non-current assets decreased by ¥2.0% maturities over three months. earnings on the back of higher profits (with a ¥38. 100.1 billion decrease in deferred in Hong Kong in March 2017.3 billion. free cash flow (net cash received from Consolidated Subsidiaries (At end of August 31.1 billion.0% Fast Retailing USA. Total assets rose ¥150. plant and Theory generated a large rise in profit thanks to a strong equipment.7%.6 billion inventory assets: +¥19. 100. 100. Net income taxes paid totaled ¥26. As a Inventory assets rose ¥19.6 billion at J Brand.0% FAST RETAILING (CHINA) TRADING CO. CO. ¥39.9 total assets rose 6.3 billion in profit before income FAST RETAILING (SHANGHAI) TRADING CO. 100. The ¥66.6 billion result.

0 billion (+0. 2018) (bln yen) 80 79.1 2.2 7.1 billion 60 15 15 60 40 10 10 ¥13. with revenues of ¥2.5 billion 20 5 5 billion 0 0 0 0 (FY) 2015 2016 2017 2018 (FY) 2015 2016 2017 2018 (FY) 2015 2016 2017 2018 (FY) 2015 2016 2017 2018 forecast forecast forecast forecast 66 .1 GU sales far outstripped expectations. Our policy is to pay a high dividend after considering want to own.5 HEATTECH.4%) and net profit attributable to owners of the parent of ¥120.6 billion in cash dividend payments.0 billion (+13.1 billion). We forecast net earnings per 18. The Group paid an accuracy of initial production volumes and strengthening annual dividend of ¥350 per share in FY2017.6 FR Systems UNIQLO Japan is forecast to report slight rises in full-year Investment.8 billion (+3. efficiencies. States + Canada). FINANCIAL INFORMATION Capital Expenditure (Including Finance Leases) 14 Outlook for FY2018 (As of January 11. 8. Fast cutting expenses and enhancing distribution and advertising Retailing systems investment: ¥18. This translates frameworks for swift additional production of strong-selling into an annual dividend payout ratio of 29. GU and Global Brands are both expected to report rising 13 Dividend Policy full-year revenue and profit.66 and a steady annual dividend per 40 3. In the first quarter of FY2018.9 share of ¥350 (¥175 interim and year-end dividends).1% YoY).0 billion in lease another halving of operating losses at North America (United repayments. etc. down.176.0 billion 60 35. same-store 24.4%).3 28. We forecast significant gains in UNIQLO International Net Cash used in Financing Activities: ¥50.1 share (EPS) of ¥1.8 Billion revenue and profit. merino (FY) 2015 2016 2017 2018 sweaters and other Fall Winter ranges. ¥2. 20 Global Brands revenue and profit.0500 trillion (+10.9%. Global Brands including GU: ¥10.5 billion. We are also working to eradicate lost sales the funds required to expand Group operations. We are actively reviewing GU ranges to continually achieve the right product mix and create Returning a portion of our profits to shareholders is a top quintessentially GU products that customers of all ages will priority.7 We forecast a record consolidated performance.9 billion 80 20 20 90 ¥ 73. sweatshirts and sweatpants. operating profit of ¥ 59.5 30 ¥ 0.6 4. increase opportunities resulting from product shortages by improving profits and maintain financial soundness.7 ¥200. We expect further sharp profit gains from Including ¥34. items.6%). profit before income taxes of ¥200.9 billion Greater China and Southeast Asia & Oceania along with in long-term borrowing repayments and ¥6. Rising cost of sales on forecast a weaker yen is forecast to dampen the gross profit margin slightly. notching up double-digit UNIQLO International growth after cold weather strengthened demand for UNIQLO Japan 0 6. Operating Profit by Business Segment UNIQLO Japan UNIQLO International GU Global Brands (bln yen) (bln yen) (bln yen) (bln yen) 120 100 25 25 ¥ 95. but we expect to improve business cost ratios by billion.

if there is impact on earnings. or customers. which negative effect on earnings. responsible. this may have a be necessary to take steps to recover the information. which and local staff. or if they should become unable to ii) Risk of leaks of business secrets. our negative impact on earnings. or play these vital roles. this may require global product recalls. and handles trade secrets and other ii) Competitive risks confidential information. We. or other factors that affect our countries where the Group carries out business may have the ability to hire and train well-qualified management personnel effect of reducing product sales or increasing inventories. this could have an impact on supply of products sold by the group. this could have a negative that these risks may occur. as well as causing damage play vital roles in the operational areas for which they are to customers’ trust. and if our business awareness. may have a negative impact on earnings. resolution of such v) Overseas business risks disputes may cost large sums of money. this could have a negative impact on earnings. and conduct activities to raise to do business with our competitors. but if gross quality defects are found in products. We have established an Information Our customers are ordinary consumers. which is the Group’s core business. services and prices. In the event of disputes or litigation between the Group and people with whom it transacts. or an earthquake. or if there are economic consumer trends fluctuations. iv) Risk due to natural disaster Natural disasters affecting factories that produce or stores that iv) Risks of corporate acquisitions sell the Group’s products. and information held by the Group. it may competitiveness wanes in relative terms. In the course of doing business. may have One element of the Group’s management strategy is to expand a negative impact on the Company’s ability to supply or to sell the business through M&A. the Group gathers information about customers. this could have a negative impact on the customer personal information Group’s earnings. which could have a As the Group steadily expands its presence overseas. as well as causing damage to customers’ trust. or a strike by factory be unable to procure materials such as cotton and cashmere in personnel or dock workers. such as contamination by hazardous i) Management personnel risk materials. we available at the time of the publication of the latest securities are cognizant of risks in several categories: report (30 November 2017). iii) Risk of dependency on production in specified geographic locations iii) Risk due to weather If there is a dramatic political. In the event confidential information is lost. The Group endeavors to establish Risks specific to the management strategy of the Group are as product management systems that fulfill the legal regulations of follows: various countries and regions. expected revenue gains and positive benefits from target company synergies and business portfolios. or legal Due to global warming and other weather conditions we may change in countries where we produce. If we are unable to achieve the its products. If the yen continues to weaken further Group are stated below. and may also reduce sales of major natural disaster. If any of our executives should become unable to perform his or her duties. changes in law. a sharp rise in prices for cotton and other raw materials. which may and the other members of the Group management team all have a negative impact on earnings. security. and thoroughgoing administrative procedures and strives to take appropriate measures when they occur. If our customers should choose personal customer information. which could have a negative most products sold through Group companies. The Company. economic. flood or other a timely and appropriate manner. who are keenly Security Office to ensure management of confidential selective when it comes to products. international business is expected to constitute a higher proportion of Group revenue. 67 . this could have a v) Risks of disputes and litigation negative impact on Group results. or Changes in the business climate or consumer trends in major currency market volatility. i) Manufactured product liability risk The Group’s business is subject to a variety of national and regional legal regulations such as product liability laws and (1) Risks specific to management strategy consumer protection laws. using forward currency agreements to stabilize significant impact on the businesses of the Company and the purchasing costs. social and political turmoil. We hedge our currency risks for about three years Risk factors that investors may regard as potentially having a ahead. or their immediate vicinity. this could have a negative impact on our earnings. Statements with regard to the future are based on management decisions and (2) General business risks projections made by the Company based on information In management of the Group and operation of businesses. Chairman and CEO Tadashi Yanai compensation for harm to the health of customers. has planned preventive actions impact on earnings at UNIQLO Japan. aware of the possibility against the dollar going forward. If the goods we sell do not match vi) Risk of change in the business climate and market needs in each country. or Our Representative Director.15 Risk vi) Currency risks Most product imports for UNIQLO Japan are denominated in US dollars. Also. could have a negative impact on earnings. create and strengthen we are engaged in intense competition with rivals both appropriate management systems for trade secrets and domestically and internationally.

opens in the Tsim Sha Tsui Paris Opera Store..2 Head office is constructed in Princesse tam.4 Toray Industries. UNIQLO 1998. 1999.tam is acquired. Global flagship store. 1998.4 First UNIQLO South Korea store First UNIQLO Singapore store opens in Seoul.12 2007. LTD. Yamaguchi Prefecture.11 opens in Moscow.11 Company stock is listed on the Holding company structure is Hiroshima Stock Exchange. Yamaguchi Prefecture.10 1991.4 shopping district. 2006. is established with capital of 6 million yen.9 First UNIQLO Hong Kong store Global flagship store.9 2006.. 2004. Footwear retail chain Onezone 2007. Japan. HISTORY 1949. 1985. to further enhance production 2005. 2005. adopted at Fast Retailing. International Co. 2005. Inc.6 First UNIQLO China store opens Strategic business partnership is in Shanghai.). Tokyo (closed in 2012). Inc.900-yen fleece campaign opens in Shanghai.4 New York. becomes a subsidiary (comes under UNIQLO CO. 2005. the fashionable Harajuku district of Declaration. 68 . Ltd. Company name is changed to 2002. 1. UNIQLO All-Product Recycling 2010. UNIQLO 311 Oxford Street Store. FAST RETAILING CO. LTD. and cashmere flagship store opens in Soho.6 E-commerce business launches.3 management. 2006. succeeds in attracting large Fast Retailing invests in Link public attention. Ltd.9 2009.9 2009.2 2006.. First UNIQLO Russia store 2002.3 2001. First UNIQLO overseas store acquired.6 The first UNIQLO store opens in 1999.12 Corp. opens in Paris.5 Initiative commences. developer of Theory brand apparel. Japan.5 Ogori Shoji Co. Company stock is listed on the First Section of the Tokyo Stock Exchange.2 Hiroshima (closed in August 1991). is established. 2005. established between UNIQLO and 2010.5 2009.10 in April 2010).3 1998. campaign generates high level of New York City. Japan. UNIQLO Design Studio (current 1994. opens. becomes a subsidiary. 1984.9 SKIP brand food business starts (FR exits the business in April 2004). opens in London.. Shanghai office is established opens in London. (now LINK THEORY JAPAN CO. First UNIQLO France store 2000... opens.11 UNIQLO Design Studio. Global flagship store. 1963.11 2004.9 2006.10 2004.1 West Nanjing Road Store.9 Comptoir des Cotonniers is LINK THEORY JAPAN CO.11 Men’s Shop Ogori Shoji is First urban UNIQLO store opens in UNIQLO makes Global Quality First UNIQLO global founded in Ube City. First UNIQLO roadside store opens.7 R&D Center) is established. consumer interest.10 First GU store opens in Chiba Prefecture. LTD. 2002. LTD.

12 opens in Kuala Lumpur.4 2016.11 Tauentzien global flagship. state-of-the-art distribution center 2010. Midwest. 2010. Global hotspot store.9 opens in Osaka. Global hotspot store. 2014. opens in Toronto.4 opens in Taipei.. UNIQLO Orchard Central Store Global flagship store. opens in Tokyo.10 New York 5th Avenue Store.2 LLC is acquired. UNIQLO Myeongdong Central Store.10 2012.9 opens in Bangkok. UNIQLO 2014. Stock Exchange of Hong Kong. 2015. opens in Hong Kong.2010. UNIQLO SHANGHAI. Global Partnership Agreement with 2013. reinforcing All-Product Recycling Initiative. 2012.9 Fast Retailing Hong Kong Depository First store in the U.3 GU flagship store opens The newly refurbished 311 in Ginza.9 2017. UNIQLO Okachimachi Store.10 opens in Taipei. Global flagship store.3 2016. opens in Chicago. 2015. Office opens. First UNIQLO Australia store Construction is completed on opens in Melbourne. 2014.3 2014. Store opens in Japan. 2011. Oxford Street global flagship store opens in London. opens in Berlin.10 2017. opens in Tokyo. Global flagship store. First UNIQLO Germany store. First UNIQLO Indonesia store First UNIQLO Canada store opens in Jakarta.10 2017. UNIQLO Lee opens as the first UNIQLO global Theatre Store.4 First UNIQLO Thailand store 2016. UNIQLO OSAKA. Global flagship store.10 commercial functions moved from 2013. 2013. 69 .10 in Ariake.9 Roppongi Office to Ariake Office.6 First UNIQLO Philippines store opens in Manila.3 opens in Seoul. U. Receipts (HDR) are listed on the First UNIQLO Spain store opens 2012.9 flagship store in Southeast Asia. opens in New York City.10 opens in Tokyo.6 2014. UNIQLO Kichijoji Store. Tokyo. 2011. is established to promote new distribution systems. Tokyo. First GU flagship store opens 2014. First UNIQLO Taiwan store 2014.9 UNHCR is established. UNIQLO 2013.4 ON HAND CO. 2012. First GU overseas store opens UNIQLO CITY TOKYO Ariake in Shanghai. UNIQLO Ginza. First UNIQLO Malaysia store 2012. Global flagship store. Global flagship store. Store. Store. Global hotspot store.S.3 2011.-based premium denim company J Brand Holdings.S. Osaka.2 Mingyao Department Store. UNIQLO product and 2011.4 2016. opens in China.11 First UNIQLO Belgium store opens Bigger and better UNIQLO Online in Antwerp.9 opens in Tokyo. opens in Osaka. opens in Tokyo.4 in Shinsaibashi. BICQLO Ikebukuro Sunshine 60 Street Shinjuku East Exit Store. LTD. UNIQLO Global hotspot store. 2011. 2015.3 the UNIQLO Michigan Avenue in Barcelona. UNIQLO Shinsaibashi Store. Global flagship store. 2010. Global flagship store.

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 2015 2016 2017 Information Available in the Investor Relations (IR) Section of Our Website You can access materials and videos of our latest business results.808 4.000 4... 4.750.51 (including holders of treasury stock) Koji Yanai 4. fastretailing.91 Number of shares authorized 300.600 16. You can access the schedule for monthly IR Calendar announcements.48 Individuals 39.700 40.000 50.86% FAST RETAILING CO.87 Number of issued and outstanding shares 106. Ltd. LTD.000 Japan Trustee Services Bank.V. Ltd.664 3. Fact Book and Securities Report.089.51 Distribution of Share Ownership Fight & Step Co.18% Financial institutions 31.987.610. 4.40 Stock Price and Trading Volume Stock price (yen) 60.940. IR News You can access the latest IR news and releases.000 20.000 10.02 Foreign shareholders 17.300 9.01 Number of shareholders 13. Ltd.000.780.073.781. 4.03% Corporations 8. Retail Data You can access the latest IR publications.305 Trading volume (thousands of shares) 20.474. INVESTOR INFORMATION (As of August 31.284 21.310.000 5. 2017) Stock Exchange Listing Principal Shareholders Tokyo Stock Exchange (First Section) Percentage of Securities Code: 9983 Number of total shares shares The Stock Exchange of Hong Kong (Main Board) in issue (%) Securities Code: 6288 Tadashi Yanai 22.000 50.000 3. 10.100 4. 17.749 Kazumi Yanai 4.67 Stock Information The Master Trust Bank of Japan.600 4.86 Securities companies 3.000 25. Ltd.. business results meetings and other events.656 (including treasury stock) TTY Management B. Monthly You can view monthly sales for UNIQLO Japan. 3.269. Ltd. 5. You can access the latest message from CEO Message the chairman of Fast Retailing.66% Trust & Custody Services Bank.27% MASTERMIND Co. meetings and press conferences.com/eng/ir/ 70 .000 30. IR Library including the Annual Report.

U. CO. forecasts and other statements that are not historical facts www. 16 UNIQLO EUROPE LIMITED 17 FAST RETAILING FRANCE S.. INC. FAST RETAILING CO. LTD..fastretailing..CORPORATE INFORMATION (As of December 31. Japan cause actual results to differ materially from our earnings forecasts include.com/eng/ are forward-looking statements that are based on management’s Midtown Tower. 9-7-1 Akasaka..S. Tadashi Yanai President & CEO 717-1 Sayama. 4 FAST RETAILING (CHINA) TRADING CO. Japan Telephone: 0120-232-711 (From Japan) Akira Watanabe Number of Shares per 100 shares (Tokyo Stock Exchange) Keiko Kaneko Trading Unit 300 HDR (The Stock Exchange of Hong Kong) Main Group Companies 1 UNIQLO CO. global economic conditions. 13 18 LLC UNIQLO (RUS) Contact Us Forward-looking Statements Statements in this annual report with respect to the Company’s plans. Chiyoda-ku. 10 11 12 PT.274 million Control and management of overall Group Takashi Nawa Line of Business activities as owner and holding company Internal Full-time Number of Full-time Akira Tanaka 44. Ariake Office Toru Murayama Tokyo 135-0063. LTD. LTD. 1-6-7 Ariake. without limitation. 7 14 10 UNIQLO (THAILAND) COMPANY LIMITED 6 5 11 FAST RETAILING PHILIPPINES. 9-7-1 Akasaka.. an international labeling scheme that provides a credible guarantee that the raw materials used in the product come from an environmentally managed forest.A. 2 G. LTD. our response Telephone: +81-3-6865-0050 to market demand for and competitive pricing pressure on products 9AM–4PM Monday–Friday (except national holidays) and services and currency exchange rate fluctuations. Factors that could Tokyo 107-6231. LTD. 16 7 FRL Korea Co. Inc. 17 8 UNIQLO (SINGAPORE) PTE. 4 1 2 3 15 9 UNIQLO (MALAYSIA) SDN. strategies. Chairman. Minato-ku judgment in light of currently available information.. Japan Established May 1. Minato-ku Roppongi Office Tokyo 107-6231. BHD. LTD. Tokyo 100-8212.. LIMITED 18 6 UNIQLO TAIWAN LTD. Ltd. 1963 Masaaki Shintaku Paid-in Capital ¥10. 3 LINK THEORY JAPAN CO. 71 . Yamaguchi City Head Office Yamaguchi 754-0894. 2017) Corporate Data Board of Directors Trade Name FAST RETAILING CO. This report is printed with non-VOC ink for paper certified by the Forest Stewardship Council® (FSC®). LTD. Inc. 15 J Brand. FAST RETAILING INDONESIA 9 8 13 UNIQLO AUSTRALIA PTY LTD 12 14 Fast Retailing USA.424 (As of August 31. 5 UNIQLO HONG KONG. 2017) Auditors Employees (Consolidated) Fiscal Year Ends August 31 Masaaki Shinjo Annual Shareholders’ Meeting Late November External Statutory Mitsubishi UFJ Trust and Banking Corporation 1-4-5 Takaharu Yasumoto Auditors Transfer Agent Marunouchi. Japan External Directors Toru Hambayashi Midtown Tower. Japan Nobumichi Hattori 6F UNIQLO CITY TOKYO. Koto-ku.

FAST RETAILING WAY (FR Group Corporate Philosophy) CHANGING CLOTHES. UNIQLO Global Brand Ambassador Adam Scott . CHANGE THE WORLD. CHANGING CONVENTIONAL WISDOM.

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LTD. f a s t r e t a i l i n g . c o m . w w w..FAST RETAILING CO.