Fast Retailing Co., Ltd.

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited (the “Stock Exchange”) take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

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`迅銷有限公司`

(Incorporated in Japan with limited liability)

(Stock Code:6288)

ANNUAL RESULTS ANNOUNCEMENT

FOR THE YEAR ENDED 31 AUGUST 2021

The board of directors (the “Board”) of FAST RETAILING CO., LTD. (the “Company” or “Parent”) is pleased to announce the consolidated results of the Company and its subsidiaries (collectively the “Group”) for the year ended 31 August 2021 together with the comparative figures for the year ended 31 August 2020.

(Amounts are rounded down to the nearest million Japanese yen unless otherwise stated.)

1. CONSOLIDATED FINANCIAL RESULTS

The consolidated financial results were prepared in accordance with International Financial Reporting Standards (“IFRS”).

(1) Consolidated Operating Results (1 September 2020 to 31 August 2021)

					(Percentages representyear-on-year changes)	(Percentages representyear-on-year changes)	(Percentages representyear-on-year changes)	(Percentages representyear-on-year changes)

					Profit before		Profit for
	Revenue		Operating profit
					income taxes		the year


	Millions of yen 2,132,992 2,008,846	% 6.2 (12.3)	Millions of yen	% 66.7 (42.0)	Millions of yen 265,872 152,868	% 73.9 (39.4)	Millions of yen 175,684 90,398	% 94.3 (49.2)
Year ended 31 August 2021			249,011
Yearended 31 August2020			149,347


			Total comprehensive
	Profit attributable to				Basic earnings	Diluted earnings
			income for the
	owners of the Parent				per share	per share
			year


	Millions of yen 169,847 90,357	% 88.0 (44.4)	Millions of yen	% 104.3 (29.6)	Yen 1,663.12 885.15	Yen 1,660.44 883.62
Year ended 31 August 2021			222,891
Yearended 31 August2020			109,085

－ 1 －

	Ratio of profit to equity attributable to owners of the Parent	Ratio of profit before income taxes to total assets	Ratio of operating profit to revenue
Year ended 31 August 2021 Year ended 31 August 2020	% 16.4 9.5	% 10.8 6.9	% 11.7 7.4

(References) Share of profits and losses of associates Year ended 31 August 2021: 561 million yen Year ended 31 August 2020: 321 million yen

(2) Consolidated Financial Position

(2) Consolidated Financial Position
	Total assets	Total equity	Equity attributable to owners of the Parent	Ratio of equity attributable to owners of the Parent to total assets	Equity per share attributable to owners of the Parent
As at 31 August 2021 As at 31 August2020	Millions of yen 2,509,976 2,411,990	Millions of yen 1,162,298 996,079	Millions of yen 1,116,484 956,562	% 44.5 39.7	Yen 10,930.42 9,368.83

(3) Consolidated Cash Flows

	Net cash generated by operating activities	Net cash used in investing activities	Net cash used in financing activities	Cash and cash equivalents at the end of year
Year ended 31 August 2021 Yearended 31 August2020	Millions of yen 428,968 264,868	Millions of yen (82,597) (75,981)	Millions of yen (302,985) (183,268)	Millions of yen 1,177,736 1,093,531

2. DIVIDENDS

		Dividends per share	Dividends per share	Dividends per share		Total dividends (annual)	Payout ratio (consolidated)	Ratio of dividends to equity attributable to owners of the Parent (consolidated)
	First quarter period end	Second quarter period end	Third quarter period end	Year- end	Full year
Year ended 31 August 2020 Year ended 31 August 2021	Yen -	Yen 240.0	Yen	Yen	Yen	Millions of Yen	%	%
			-	240.0	480.0	49,003	54.2	5.2
	-	240.0	-	240.0	480.0	49,025	28.9	4.7
Year ending31 August 2022(forecast)	-	260.0	-	240.0	520.0		30.4

－ 2 －

3. CONSOLIDATED BUSINESS RESULTS PROJECTION FOR YEAR ENDING 31 AUGUST 2022 (1 SEPTEMBER 2021 TO 31 AUGUST 2022)

			(% shows	(% shows	rate of increase/decreasefrompreviousyear)	rate of increase/decreasefrompreviousyear)	rate of increase/decreasefrompreviousyear)	rate of increase/decreasefrompreviousyear)
	Revenue		Operating profit		Profit before income taxes		Profit attributable to owners of the Parent
Yearending 31 August2022	Millions of yen 2,200,000	% 3.1	Millions of yen 270,000	% 8.4	Millions of yen 270,000	% 1.6	Millions of yen 175,000	% 3.0

	Basic earnings per share attributable to owners oftheParent
Year ending31 August 2022	Yen 1,713.26

Notes

(1) Changes in principal subsidiaries (i.e., changes in specified subsidiaries): Newly consolidated: - Excluded from consolidation: one company: J Brand, Inc. (2) Changes in accounting policies and accounting estimates: (i) Changes in accounting policies to conform with IFRS: (ii) Other changes in accounting policies: (iii) Change in accounting estimates: (3)Total numberof issued shares (commonstock)	(1) Changes in principal subsidiaries (i.e., changes in specified subsidiaries): Newly consolidated: - Excluded from consolidation: one company: J Brand, Inc. (2) Changes in accounting policies and accounting estimates: (i) Changes in accounting policies to conform with IFRS: (ii) Other changes in accounting policies: (iii) Change in accounting estimates: (3)Total numberof issued shares (commonstock)	(1) Changes in principal subsidiaries (i.e., changes in specified subsidiaries): Newly consolidated: - Excluded from consolidation: one company: J Brand, Inc. (2) Changes in accounting policies and accounting estimates: (i) Changes in accounting policies to conform with IFRS: (ii) Other changes in accounting policies: (iii) Change in accounting estimates: (3)Total numberof issued shares (commonstock)	(1) Changes in principal subsidiaries (i.e., changes in specified subsidiaries): Newly consolidated: - Excluded from consolidation: one company: J Brand, Inc. (2) Changes in accounting policies and accounting estimates: (i) Changes in accounting policies to conform with IFRS: (ii) Other changes in accounting policies: (iii) Change in accounting estimates: (3)Total numberof issued shares (commonstock)		Yes

					Yes None None





(i)	Number of issued shares (including treasury stock)	As at 31 August 2021	106,073,656 shares	As at 31 August 2020	106,073,656 shares
(ii)	Number of treasury stock	As at 31 August 2021	3,928,985 shares	As at 31 August 2020	3,973,113 shares
(iii)	Average number of shares outstanding	For the year ended 31 August2021	102,125,851 shares	For the year ended 31 August2020	102,081,609 shares

(REFERENCE INFORMATION)

NON-CONSOLIDATED FINANCIAL RESULTS

The non-consolidated financial results were prepared in accordance with generally accepted accounting principles in Japan.

(1) Non-consolidated Operating Results (1 September 2020 to 31 August 2021)

			(Percentages representyear-on-year changes)	(Percentages representyear-on-year changes)	(Percentages representyear-on-year changes)	(Percentages representyear-on-year changes)	(Percentages representyear-on-year changes)	(Percentages representyear-on-year changes)
	Net sales		Operating profit		Ordinary profit		Profit

Year ended 31 August 2021 Yearended 31 August2020	Millions of yen 278,605 156,356	% 78.2 (15.4)	Millions of yen 191,442 75,316	% 154.2 (36.8)	Millions of yen 208,221 78,211	% 166.2 (26.2)	Millions of yen 175,286 62,422	% 180.8 (41.2)

	Net income per share		Diluted net income per share
Year ended 31 August 2021 Yearended 31 August2020	Yen 1,716.37 611.50		Yen 1,713.61 610.44

－ 3 －

(2) Non-consolidated Financial Position

	Total assets	Net assets	Ratio of shareholders’ equity to totalassets	Net assets per share
As at 31 August 2021 As at 31 August2020	Millions of yen 1,100,398 1,063,356	Millions of yen 667,569 538,954	% 60.0 50.0	Yen 6,463.08 5,207.74

(References) Shareholders’ equity As at 31 August 2021: 660,168 million yen As at 31 August 2020: 531,713 million yen

This annual results announcement is not subject to auditing procedures pursuant to the Financial Instruments and Exchange Act of Japan.
Explanation and other notes concerning proper use of consolidated business results projection:

Statements made in these materials pertaining to future matters including business projections are based on information currently available to the Company and certain assumptions determined to be reasonable. Actual business results may vary substantially depending on a variety of factors.

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1. Business Results

(1) Analysis of Business Results for the year ended 31 August 2021

The Fast Retailing Group’s revenue increased and profit expanded significantly in fiscal 2021, or the twelve months from 1 September 2020 to 31 August 2021. Consolidated revenue totaled 2.1329 trillion yen (+6.2% year-on-year) and operating profit totaled 249.0 billion yen (+66.7% year-on-year). Business performance recovered primarily at UNIQLO operations in fiscal 2021 compared to the previous year when performance declined dramatically under the heavy impact of the COVID-19 pandemic. We reported an impairment loss of 16.9 billion yen mainly on UNIQLO International operations and a gain of 8.7 billion yen from the liquidation of J Brand, Inc., resulting in a net cost of 6.5 billion yen under other income/expenses. When we liquidated J Brand, Inc. in August 2021, we recorded a liquidation gain on foreign exchange movements following a subsequent weakening in the Japanese yen compared to the exchange rate at the time of acquisition. We also recorded 16.8 billion yen in finance income net of costs, mainly comprising a 19.2 billion yen foreign exchange gain on foreign-currency denominated assets and other items. As a result, profit before income taxes increased to 265.8 billion yen (+73.9% year-on-year) and profit attributable to owners of the Parent expanded to 169.8 billion yen (+88.0% year-on-year) in the twelve months to 31 August 2021.

Capital expenditure increased by 17.9 billion yen year-on-year in fiscal 2021 to 100.6 billion yen. That figure can be broken down into 15.7 billion yen for UNIQLO Japan, 38.5 billion for UNIQLO International, 3.8 billion yen for GU, 1.8 billion yen for Global Brands, and 40.7 billion yen for systems, etc. While investment in new store openings declined compared to the previous year in which we opened many global flagship stores and large-format stores, we did increase our investment in global automated warehousing as part of our transformative Ariake Project.

As a united Group, we are determined to strengthen initiatives designed to expand our business operations and promote sustainability as part our quest to become a global No.1 brand. We work hard to ensure our LifeWear ultimate everyday wear is produced and sold in working environments that are healthy, safe, and environment- conscious, and strive to help solve a variety of social issues. We are currently channeling our efforts into expanding our e-commerce, UNIQLO International, and GU businesses as key pillars of operational growth. With regards to e-commerce, we are accelerating the building of a framework that will promote our main business by melding online and physical stores so we can offer as many of the products and information that customers want, when they want them. We are already pressing ahead with reforms that will enable us to offer more services that combine the strengths of our physical store and e-commerce network and unify inventory management. Regarding UNIQLO International, we are accelerating the opening of new stores in all markets and areas in which we operate, and seeking to instill deeper and more widespread empathy for UNIQLO’s LifeWear concept by opening global flagship stores and large-format stores in the world’s major cities. In terms of our GU segment, we are working to strengthen GU’s position as a brand that offers fun fashion at amazingly low prices and seeking to expand the GU store network primarily in Japan.

UNIQLO Japan

UNIQLO Japan reported revenue of 842.6 billion yen (+4.4% year-on-year) and a large increase in operating profit to 123.2 billion yen (+17.7% year-on-year) in fiscal 2021. Full-year same-store sales (including e-commerce) increased 3.6% year-on-year. In the first half from 1 September 2020 through 28 February 2021, same-store sales rose 5.6% year-on-year on the back of strong sales of products that fulfilled customer demand for stay-at-home items as well as core Fall Winter ranges. However, same-store sales increased by a much lesser 0.9% year-on-year in the second half from 1 March through 31 August 2021 as sales were adversely impacted by the declaration of a state of emergency and unfavorable weather. Meanwhile, full-year e-commerce sales are expanding favorably, rising 17.9% year-on-year to 126.9 billion yen in fiscal 2021 to constitute a 15.1% proportion of total revenue.

The UNIQLO Japan gross profit margin improved 1.4 points year-on-year in fiscal 2021 thanks to efforts to improve cost of sales and our decision to curb discounting of products. From 12 March 2021, we made our products easier for customers to purchase by changing our product price displays in Japan to show just one tax-inclusive price and keeping prices the same by absorbing the consumption-tax component ourselves. We have been able to maintain cost percentages close to regular levels by working successfully with partner factories to improve cost of sales by encouraging the use of common materials, controlling the number of product items, and minimizing fabric wastage. The selling, general and administrative expense ratio also improved by 0.4 point year-on-year thanks to more efficient distribution and advertising and promotion spending.

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UNIQLO International

UNIQLO International recorded significant increases in both revenue and profit in fiscal 2021, with revenue rising to 930.1 billion yen (+10.2% year-on-year) and operating profit expanding to 111.2 billion yen (+121.4% year-on-year). While segment performance is still being heavily impacted by COVID-19, performance has recovered strongly in regions and during periods when infections were contained.

Breaking down the UNIQLO International performance into individual regions and markets, the Greater China region (Mainland China market, Hong Kong market, and Taiwan market), which was not impacted as heavily by COVID-19, performed strongly by achieving a large increase in profit. In fact, the Greater China region reported record results, with revenue rising 16.7% year-onyear to 532.2 billion yen and operating profit expanding by 52.7% year-on-year to 100.2 billion yen. The region’s operating profit margin also improved significantly to 18.8% thanks to improvements in the gross profit margin and selling, general and administrative expense ratio. While UNIQLO South Korea reported a slight decrease in full-year revenue, the operation did manage to move back into the black. In contrast, UNIQLO South Asia, Southeast Asia & Oceania (Southeast Asia, Australia, and India) reported an approximate 15% year-on-year decline in operating profit in fiscal 2021 after suffering the heavy impact of the COVID-19 pandemic throughout the period. Within that region, the nations that were hit hardest by COVID-19, Malaysia, Thailand, and the Philippines, reported declines in both revenue and profit, while revenue and profit increased in Singapore, Indonesia, India, and Australia, and Vietnam reported a large rise in revenue and turned a profit for the year. Despite the particularly heavy COVID-19 impact in S/SE Asia and Oceania region, sales did prove strong during the periods when stores were able to reopen for business. Sales recovered sharply in North America once COVID-19 restrictions were eased from May onward, helping the North American operation report a profit in the second half of the year and halve its full-year loss. UNIQLO Europe reported a large rise in revenue and a positive operating profit thanks to strong e-commerce sales and a strong performance from our Russia operation. Despite the pandemic, we have been able to greatly improve profitability in line with the recoveries in sales in North America and Europe thanks to some determined reforms of earnings structures that focused on improving gross profit margins, closing unprofitable stores, reducing fixed costs, and normalizing inventory levels.

GU

Our GU segment recorded an increase in revenue but a decline in profit in fiscal 2021, with revenue reaching 249.4 billion yen (+1.4% year-on-year) and operating profit totaling 20.1 billion yen (−7.6% year-on-year). In the first half, items such as chef’s pants and sweat-style knitwear sold well. However, in the second half, sales fell short of expectations after GU was impacted by the declared state of emergency, suffered lost sales opportunities caused by shortages of strong-selling items, and produced some products that did not fully grasp the prevailing fashion trend. As a result, full-year GU same-store sales declined slightly compared to the previous year. GU’s gross profit margin declined 0.9 point year-on-year on the back of stronger season-end inventory rundowns. GU e-commerce sales rose on the back of stronger conveyance of pertinent information, expanding approximately 50% compared to fiscal 2019 levels and constituting approximately 11% of total sales.

Global Brands

In fiscal 2021, the Global Brands segment reported a decline in revenue to 108.2 billion yen (−1.3% year-on-year) and an operating loss of 1.6 billion yen compared to a 12.7 billion yen operating loss in the previous year. This considerable reduction in operating loss was facilitated by the recording of a gain from the liquidation of J Brand, Inc. and an improved performance from our Theory operation. Indeed, the Theory operation reported an increase in revenue and a return to the black thanks to smaller losses from Theory in the US and a strong performance from Theory in Asia (Mainland China market and Hong Kong market), which reported significant rises in both revenue and profit. Our PLST label reported a decline in revenue and an operating loss of similar magnitude to the previous year. Comptoir des Cotonniers reported a decline in revenue and a wider operating loss due primarily to the adverse impact of prolonged temporary store closures mainly in France through May. Finally, while we have liquidated J Brand, Inc. the J Brand label will continue to be owned by the Fast Retailing Group and offer products as a Group brand.

－ 6 －

Sustainability

In keeping with our key sustainability message, “Unlocking the power of clothing,” the Group pursues sustainability activities through our core clothing business focused on six clear material areas: Creating new value through products and services; Respecting human rights in our supply chain; Respecting the environment; Strengthening communities; Supporting employee fulfillment and Implementing good corporate governance. Our main activities for the current period involved:

■ New value creation through products and sales: As the effects of COVID-19 continue to be felt, UNIQLO is continuing to sell AIRism masks and GU is selling masks with high-performance filters. UNIQLO also developed and launched a line of frontopening innerwear including T-shirt and bras, which went on sale in September 2020. This was in response to the requests from hospitalized individuals and people with disabilities who find pull-on innerwear difficult to get on and off.

■ Respect for human rights and working conditions in the supply chain: To help keep our manufacturing partners and factory employees safe and secure from COVID-19 infection, we are working to prevent the spread of infection in factories, along with reviewing wage compensation and other employment-related issues arising from the closure of our factories, and offering guidance for improvements. In addition, we are making preparations so the company can ensure there are no human rights issues throughout our supply chain, by continuously strengthening our efforts to address human rights and labor issues in the supply chain, establishing traceability down to the raw materials for all countries and regions, and expanding the scope of our workingenvironment audits.

■ Consideration for the environment: We expanded our existing All-Product Recycling Initiative, and in September 2020, we launched our "RE.UNIQLO" activities. In November 2020, we began selling a new recycled down jacket, in which 100% of the down and feathers come from products collected from customers. In recognition of our efforts to prevent water pollution, reduce water use and combat risks from water such as flood damage, the CDP (an international non-profit organization that provides a platform for disclosure of environmental information) gave us the highest rating for water resource measures and included us in its water security A List in December 2020. In September 2021, we announced that our new goal for reducing greenhouse gas emissions was to reduce emissions by 90% across all of our stores and major offices, etc. by FY2030, to reduce, by 20% (compared to FY2019; absolute amount), the emissions associated with raw material production, fabric production, and sewing of UNIQLO and GU products , and to increase our company's renewable energy use to 100%. The international Science Based Targets initiative approved these goals as science-based targets (SBTs) — greenhouse-gas emissions reduction targets based on the targets set in the Paris Agreement.

■ Community support: To combat COVID-19, we are donating masks and isolation gowns to medical and care facilities, etc. around the world, as we did last year. In particular, we provided emergency assistance totaling 220 million rupees (approximately 330 million yen) to India, where there had been severely impacted by COVID-19. This assistance included over 600,000 UNIQLO AIRism masks. In addition, we are working with the United Nations High Commissioner for Refugees (UNHCR) to donate approximately 3 million UNIQLO AIRism masks to refugees and displaced persons in a total of 10 countries, including Argentina, Iraq, Afghanistan and Myanmar.

■ Employee satisfaction: In our stores, we are helping to prevent the spread of COVID-19 and prioritizing the health of customers and employees by continuing with the policies we have instituted, such as health checks for staff members, mask wearing and hand sanitizing. In order to make our locations safe and secure places for our employees to work, we are providing masks and disinfectants, and increasing ventilation. We are also promoting working from home, depending on the nature of the work. In addition, we are actively implementing administration of COVID-19 vaccines in workplaces in Japan and in certain other countries. In order to create a work environment in which diverse human resources can demonstrate their abilities, the Diversity Promotion Team has been working on career development for female employees and improving the ratio of female managers to male managers. We have also conducted training programs for female management candidates and career-development sessions with female managers.

■ Good management (governance): To enable rapid and transparent management, a number of committees are engaged in open and active discussions. The Nomination and Remuneration Advisory Committee discussed the structure of compensation systems for officers and the criteria for appointing candidates for directors. The Risk Management Committee has been strengthening risk management in business activities, and is continually discussing our response to issues such as the COVID-19 pandemic, vaccinations, the risk of major natural disasters such as an earthquake directly below Tokyo, information security risks, and risks related to the international situations. In addition, the Human Rights Committee is actively supervising and advising on efforts to

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protect human rights, including the implementation and improvement of employee human-rights surveys on harassment and discrimination, and responding to the human rights risks of migrant workers at partner factories. Upon receiving advice, the Sustainability Department, which is the responsible department, strengthened audit checks on the working conditions of migrant workers, and provided the guidance on a hotline.

(2) Financial Positions

Total assets as at 31 August 2021 were 2.5099 trillion yen, which was an increase of 97.9 billion yen relative to the end of the preceding fiscal year. The principal factors were an increase of 84.2 billion yen in cash and cash equivalents, a decrease of 16.5 billion yen in trade and other receivables, a decrease of 22.6 billion yen in inventories, an increase of 24.2 billion yen in derivative financial assets, an increase of 32.0 billion yen in property, plant and equipment, a decrease of 9.4 billion yen in rightof-use assets, a decrease of 8.3 billion yen in deferred tax assets, and an increase of 6.2 billion yen in other current financial assets.

Total liabilities as at 31 August 2021 were 1.3476 trillion yen, which was a decrease of 68.2 billion yen relative to the end of the preceding fiscal year. The principal factors were an increase of 9.3 billion yen in trade and other payables, a decrease of 108.3 billion yen in other current financial liabilities, an increase of 16.0 billion yen in current tax liabilities, an increase of 13.0 billion yen in other current liabilities, a decrease of 5.5 billion yen in lease liabilities, an increase of 7.7 billion yen in provisions, and a decrease of 2.4 billion yen in derivative financial liabilities.

Total net assets as at 31 August 2021 were 1.1622 trillion yen, which was an increase of 166.2 billion yen relative to the end of the preceding fiscal year. The principal factors were an increase of 121.4 billion yen in retained earnings, and an increase of 36.2 billion yen in other components of equity

(3) Cash Flows Information

Cash and cash equivalents as at 31 August 2021 had increased by 84.2 billion yen from the end of the preceding fiscal year, to 1.1777 trillion yen.

(Operating Cash Flows)

Net cash generated by operating activities for the year ended 31 August 2021 was 428.9 billion yen, which was an increase of 164.1 billion yen (+62.0% year-on-year) from the year ended 31 August 2020. The principal factors were 26584 billion yen in profit before income taxes (an increase of 113.0 billion yen from the year ended 31 August 2020), 16.9 billion yen in impairment losses (a decrease of 6.1 billion yen from the year ended 31 August 2020), 19.2 billion yen in foreign exchange gains (a decrease of 17.7 billion yen from the year ended 31 August 2020), a decrease of 15.3 billion yen in trade and other receivables (an increase of 19.4 billion yen from the year ended 31 August 2020), a decrease of 36.7 billion yen in inventories (an increase of 39.4 billion yen from the year ended 31 August 2020), an increase of 0.3 billion yen in trade and other payables (a decrease of 18.2 billion yen from the year ended 31 August 2020), a decrease of 3.4 billion yen in other assets (a decrease of 7.1 billion yen from the year ended 31 August 2020), a decrease of 9.3 billion yen in other liabilities (an increase of 53.8 billion yen from the year ended 31 August 2020), and 80.5 billion yen in income taxes paid (a decrease of 5.0 billion yen from the year ended 31 August 2020).

(Investing Cash Flows)

Net cash used in investing activities for the year ended 31 August 2021 was 82.5 billion yen, which was an increase of 6.6 billion yen (+8.7% year-on-year) from the year ended 31 August 2020. The principal factors were a net increase of 2.3 billion yen in bank deposits with original maturities of three months or longer (a decrease of 2.8 billion yen from the year ended 31 August 2020), 56.5 billion yen in payments for property, plant and equipment (an increase of 10.0 billion yen from the year ended 31 August 2020), 19.6 billion yen in payments for intangible assets (a decrease of 1.3 billion yen from the year ended 31 August 2020), 0.8 billion yen in payments for acquisition of right-of-use asset (a decrease of 0.9 billion yen from the year ended 31 August 2020), 3.9 billion yen in payments for lease and guarantee deposits (a decrease of 3.1 billion yen from the year ended 31 August 2020), 4.5 billion yen in proceeds from collection of lease and guarantee deposits (an increase of 1.8 billion yen from the year ended 31 August 2020), and 4.2 billion yen in payments for acquisition of investments in associates (an increase of 4.2 billion yen from the year ended 31 August 2020).

(Financing Cash Flows)

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Net cash used in financing activities for the year ended 31 August 2021 was 302.9 billion yen, which was an increase of 119.7 billion yen (+65.3% year-on-year) from the year ended 31 August 2020. The principal factors were a net decrease of 3.5 billion yen in short-term loans payable (an increase of 17.0 billion yen from the year ended 31 August 2020), and 100.0 billion yen in repayment of redemption of bonds (an increase of 100.0 billion yen from the year ended 31 August 2020).

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(4) Future Business Outlook

In fiscal 2022, the Fast Retailing Group expects to achieve consolidated revenue of 2.2 trillion yen (+3.1% year-on-year), operating profit of ¥ 270.0 billion (+8.4% year-on-year), profit before income taxes of ¥270.0 billion (+1.6% year-on-year) and profit attributable to owners of the Parent of ¥175.0 billion (+3.0% year-on-year).

We predict revenue and profit will decline in the first half from 1 September 2021 to 28 February 2022 based primarily on assumptions that COVID-19 restrictions and temporary store closures will continue to a certain extent and our decision to incorporate some negative impact from production or transportation delays. However, we expect revenue to rise and profits to expand significantly in the second half from 1 March to 31 August 2022, assuming COVID-19 restrictions have been eased and business is able to continue broadly uninterrupted.

We intend to focus on the following four areas in fiscal 2022 as the year in which we accelerate our transformation into a digital consumer retailing company:

(1) Transforming our earnings structure through high-quality sales. This will involve breaking free from our former reliance on discounting and instead promoting our product and brand value while reducing the number of product items, and pursuing a lean business with no unnecessary use of resources.
(2) Accelerating the expansion of e-commerce business as the foundation of our digital consumer retailing company. E- commerce enables us to connect directly with customers, so expanding e-commerce should help increase overall sales.
(3) Diversifying earnings pillars on a global scale. We intend to increase profits not only in the Greater China and South East Asia regions, but also in North America and Europe.
(4) Pursuing a medium to long-term growth strategy that accelerates the integral linking of our business and sustainability initiatives.

Looking at our individual business segments, we expect UNIQLO Japan will report lower revenue and profit in fiscal 2022 on the back of a temporary decline in business performance while structural reforms of the business, such as normalizing inventory and restricting discounting, are being carried out. We expect GU revenue will contract slightly and operating profit will hold steady year-on-year. In the first half of the fiscal year, GU performance will be compared to a strong period in the previous year and we have also incorporated an adverse impact from possible production delays. In the second half, GU performance is expected to recover sharply. UNIQLO International is expected to generate considerable increases in full-year revenue and profit, while Global Brands is expected to report a large increase in revenue and a move into the black.

We forecast the Fast Retailing Group network will boast a total 3,674 stores by the end of August 2022: 810 stores (including franchise stores) at UNIQLO Japan, 1,632 stores at UNIQLO International, 459 stores at GU and 773 stores at Global Brands. There is a possibility that these business estimates for the year to 31 August 2022 may need to be revised if stores are unable to operate regular business for a longer period than we have anticipated due to COVID-19 infections, or if other circumstances change.

2. Basic Concept Regarding Selection of Accounting Standards

The Group has adopted IFRS to the Group’s consolidated financial statements since the year ended 31 August 2014.

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3. Consolidated Financial Statements

(1) Consolidated Statement of Financial Position

3. Consolidated Financial Statements (1) Consolidated Statement of Financial Position
	(Millions of yen)
Notes	As at 31 August 2020 As at 31 August 2021
ASSETS Current assets Cash and cash equivalents Trade and other receivables Other financial assets Inventories Derivative financial assets Income taxes receivable Other assets Total current assets Non-current assets Property, plant and equipment 7 Right-of-use assets 7 Goodwill Intangible assets 7 Financial assets Investments in associates accounted for using the equity method Deferred tax assets Derivative financial assets Other assets 7 Total non-current assets Total assets LIABILITIES AND EQUITY LIABILITIES Current liabilities Trade and other payables Other financial liabilities Derivative financial liabilities Lease liabilities Current tax liabilities Provisions Other liabilities Total current liabilities Non-current liabilities Financial liabilities Lease liabilities Provisions Deferred tax liabilities Derivative financial liabilities Other liabilities Total non-current liabilities Total liabilities EQUITY Capital stock Capital surplus Retained earnings Treasury stock, at cost Other components of equity Equity attributable to owners of the Parent Non-controlling interests Total equity Total liabilities and equity	1,093,531 1,177,736 67,069 50,546 49,890 56,157 417,529 394,868 14,413 27,103 2,126 2,992 10,629 15,270
	1,655,191 1,724,674 136,123 168,177 399,944 390,537 8,092 8,092 66,833 66,939 67,770 67,122 14,221 18,236 45,447 37,125 10,983 22,552 7,383 6,520
	756,799 785,302
	2,411,990 2,509,976
	210,747 220,057 213,301 104,969 2,763 2,493 114,652 117,083 22,602 38,606 752 2,149 82,636 95,652
	647,455 581,012 370,780 370,799 351,526 343,574 32,658 39,046 7,760 9,860 3,205 1,042 2,524 2,342
	768,455 766,665
	1,415,910 1,347,678 10,273 10,273 23,365 25,360 933,303 1,054,791 (15,129) (14,973) 4,749 41,031
	956,562 1,116,484 39,516 45,813
	996,079 1,162,298
	2,411,990 2,509,976

－ 11 －

(2) Consolidated Statement of Profit or Loss and Consolidated Statement of Comprehensive Income

Consolidated Statement of Profit or Loss

Consolidated Statement of Profit or Loss
	(Millions of yen)
Notes	Year ended 31 August 2020 Year ended 31 August 2021
Revenue 3 Cost of sales Gross profit Selling, general and administrative expenses 4 Other income 5 Other expenses 5,7 Share of profit and loss of associates accounted for using the equity method Operating profit Finance income 6 Finance costs 6 Profit before income taxes Income taxes Profit for the year Profit for the year attributable to: Owners of the Parent Non-controlling interests Earnings per share Basic (yen per share) 8 Diluted (yen per share) 8 Consolidated Statement of Comprehensive Income	2,008,846 2,132,992 (1,033,000) (1,059,036)
	975,845 1,073,955 (805,821) (818,427) 7,954 18,238 (28,952) (25,315) 321 561
	149,347 249,011 11,228 23,859 (7,707) (6,998)
	152,868 265,872 (62,470) (90,188)
	90,398 175,684
	90,357 169,847 40 5,836
	90,398 175,684
	885.15 1,663.12 883.62 1,660.44

	(Millions of yen)
	Year ended 31 August 2020 Year ended 31 August 2021
Profit for the year Other comprehensive income/(loss), net of income taxes Items that will not be reclassified subsequently to profit or loss Financial assets measured at fair value through other comprehensive income/(loss) Total items that will not be reclassified subsequently to profit or loss Items that may be reclassified subsequently to profit or loss Exchange differences on translation of foreign operations Cash flow hedges Share of other comprehensive income of associates Total items that may be reclassified subsequently to profit or loss Total other comprehensive income/(loss), net of income taxes Total comprehensive income for the year Attributable to: Owners of the Parent Non-controlling interests Total comprehensive income for the year	90,398 175,684 (630) 541
	(630) 541 5,227 20,266 14,130 25,680 (39) 65
	19,318 46,665
	18,687 47,207
	109,085 222,891
	110,134 215,309 (1,049) 7,582
	109,085 222,891

－ 12 －

(3) Consolidated Statement of Changes in Equity

For the year ended 31 August 2020

(Millions of yen)

Note	Capital stock Capital surplus Retained earnings Treasury stock, at cost	Other components of equity Equity attributable to owners of the Parent Non- controlling interests Total equity Financial assets measured at fair value through other comprehensive income/(loss) Foreign currency translation reserve Cash-flow hedge reserve Share of other comprehensive income of associates Total
As at 1 September 2019 Effect of change in accounting policy Balance after adjustment Net changes during the year Comprehensive income Profit for the year Other comprehensive income/(loss) Total comprehensive income/(loss) Transactions with the owners of the Parent Acquisition of treasury stock Disposal of treasury stock Dividends Share-based payments Transfer to non-financial assets Transfer to retained earnings Total transactions with the owners of the Parent Total net changes during the year As at 31 August 2020	10,273 20,603 928,748 (15,271)	(697) (13,929) 8,906 (11) (5,732) 938,621 44,913 983,534
	- - (35,094) -	- - - - - (35,094) (1,331) (36,426)
	10,273 20,603 893,653 (15,271) - - 90,357 - - - - -	(697) (13,929) 8,906 (11) (5,732) 903,526 43,581 947,108
		- - - - - 90,357 40 90,398
		(630) 5,440 15,007 (39) 19,776 19,776 (1,089) 18,687
	- - 90,357 - - - - (5) - 1,496 - 148 - - (48,994) - - 1,265 - - - - - - - - (1,713) -
		(630) 5,440 15,007 (39) 19,776 110,134 (1,049) 109,085

		- - - - - (5) - (5)
		- - - - - 1,644 - 1,644
		- - - - - (48,994) (2,038) (51,032)
		- - - - - 1,265 - 1,265
		- - (11,008) - (11,008) (11,008) (976) (11,985)
		1,713 - - - 1,713 - - -
	- 2,761 (50,708) 142
		1,713 - (11,008) - (9,294) (57,098) (3,015) (60,113)

	- 2,761 39,649 142	1,082 5,440 3,998 (39) 10,482 53,036 (4,064) 48,971
	10,273 23,365 933,303 (15,129)	385 (8,489) 12,905 (51) 4,749 956,562 39,516 996,079

For the year ended 31 August 2021

(Millions of yen)

Note	Capital stock Capital surplus Retained earnings Treasury stock, at cost	Other components of equity Equity attributable to owners of the Parent Non- controlling interests Total equity Financial assets measured at fair value through other comprehensive income/(loss) Foreign currency translation reserve Cash-flow hedge reserve Share of other comprehensive income of associates Total
As at 1 September 2020 Net changes during the year Comprehensive income Profit for the year Other comprehensive income/(loss) Total comprehensive income/(loss) Transactions with the owners of the Parent Acquisition of treasury stock Disposal of treasury stock Dividends Share-based payments Transfer to non-financial assets Transfer to retained earnings Others Total transactions with the owners of the Parent Total net changes during the year As at 31 August 2021	10,273 23,365 933,303 (15,129) - - 169,847 - - - - -	385 (8,489) 12,905 (51) 4,749 956,562 39,516 996,079 - - - - - 169,847 5,836 175,684 541 18,345 26,509 65 45,461 45,461 1,745 47,207
	- - 169,847 - - - - (12) - 1,836 - 168 - - (49,015) - - 159 - - - - - - - - 655 - - - - -	541 18,345 26,509 65 45,461 215,309 7,582 222,891



		- - - - - (12) - (12)
		- - - - - 2,005 - 2,005
		- - - - - (49,015) (1,867) (50,882)
		- - - - - 159 - 159
		- - (8,523) - (8,523) (8,523) 67 (8,456)
		(655) - - - (655) - - -
		- - - - - - 514 514
	- 1,995 (48,359) 155
		(655) - (8,523) - (9,179) (55,387) (1,285) (56,673)

	- 1,995 121,487 155	(113) 18,345 17,985 65 36,282 159,921 6,296 166,218
	10,273 25,360 1,054,791 (14,973)	271 9,855 30,890 13 41,031 1,116,484 45,813 1,162,298

－ 13 －

(4) Consolidated Statement of Cash Flows

(Millions of yen)

(4) Consolidated Statement of Cash Flows	(Millions of yen)
Note	Year ended 31 August 2020 Year ended 31 August 2021
Cash flows from operating activities Profit before income taxes Depreciation and amortization Impairment losses 7 Interest and dividends income Interest expenses Foreign exchange losses / (gains) Share of profit and loss of associates accounted for using the equity method Losses on disposal of property, plant and equipment (Increase) / Decrease in trade and other receivables (Increase) / Decrease in inventories Increase / (Decrease) in trade and other payables (Increase) / Decrease in other assets Increase / (Decrease) in other liabilities Others, net Cash generated from operations Interest and dividends income received Interest paid Income taxes paid Income taxes refunded Net cash generated by operating activities Cash flows from investing activities Amounts deposited into bank deposits with original maturities of three months or longer Amounts withdrawn from bank deposits with original maturities of three months or longer Payments for property, plant and equipment Payments for intangible assets Payments for acquisition of right-of-use assets Payments for lease and guarantee deposits Proceeds from collection of lease and guarantee deposits Payments for acquisition of investments in associates Others, net Net cash used in investing activities	152,868 265,872 177,848 177,910 23,074 16,908 (9,724) (4,628) 7,706 6,990 (1,503) (19,222) (321) (561) 1,125 985 (4,164) 15,334 (2,665) 36,749 18,600 384 10,686 3,494 (44,567) 9,300 8,776 153
	337,738 509,672 8,546 4,134 (6,783) (6,101) (75,460) (80,555) 827 1,818
	264,868 428,968
	(88,714) (102,307) 83,502 99,943 (46,500) (56,500) (21,008) (19,624) (1,808) (846) (7,171) (3,979) 6,394 4,542 - (4,232) (673) 407
	(75,981) (82,597)
	*(continued)*

－ 14 －

	(Millions of yen)
	Year ended 31 August 2020 Year ended 31 August 2021
Cash flows from financing activities Proceeds from short-term loans payable Repayment of short-term loans payable Repayment of long-term loans payable Repayment of redemption of bonds Dividends paid to owners of the Parent Dividends paid to non-controlling interests Repayments of lease liabilities Others, net Net cash used in financing activities Effect of exchange rate changes on the balance of cash held in foreign currencies Net increase in cash and cash equivalents Cash and cash equivalents at the beginning of year Cash and cash equivalents at the end of year	35,019 64,247 (21,546) (67,804) (4,343) - - (100,000) (48,995) (48,993) (2,328) (2,342) (141,216) (148,248) 142 155
	(183,268) (302,985) 1,393 40,818
	7,011 84,204 1,086,519 1,093,531
	1,093,531 1,177,736

－ 15 －

(5) Notes regarding Going Concern Assumptions

Not applicable.

－ 16 －

(6) Notes to the Consolidated Financial Statements

Changes in Accounting Policies

Application of amended IFRS 16: Leases

In accordance with the amendment to IFRS 16 Leases (“IFRS 16”) issued in May 2020, rent concessions arising as a direct result of the COVID-19 pandemic were not being considered as lease modifications, and were accounted for as variable lease payments. In conjunction with the amendment to paragraph 46B(b) of IFRS 16 issued in March 2021, similar rent concessions are continued to be accounted in a same way if all of the following conditions are met.

・The change in lease payments results in revised consideration for the lease that is substantially the same as, or less than, the

consideration for the lease immediately preceding the change.

・ Any reduction in lease payments affects only payments originally due on or before 30 June 2022.
・There is no substantive change to other terms and conditions of the lease.

Any recognized gains or losses from rent concessions, that are not related to a lease modification, did not have a significant impact on the Group's consolidated financial statements.

Segment Information
(1) Description of reportable segments

The Group’s reportable segments are components for which discrete financial information is available and is reviewed regularly by the Board to make decisions about the allocation of resources and to assess performance.

The Group’s main retail clothing business is divided into four reportable operating segments: UNIQLO Japan, UNIQLO International, GU and Global Brands, each of which is used to frame and form the Group’s strategy.

The main businesses covered by each reportable segment are as follows:

UNIQLO Japan: UNIQLO clothing business within Japan UNIQLO International: UNIQLO clothing business outside of Japan

GU: GU brand clothing business in Japan and overseas

Global Brands: Theory, PLST, COMPTOIR DES COTONNIERS, PRINCESSE TAM. TAM and J Brand clothing business

J Brand, Inc. was excluded from the scope of consolidation due to the completion of liquidation as at 5 August 2021.

(2) Segment revenue and results

Year ended 31 August 2020

							(Millions of yen)	(Millions of yen)
		Reportable segments			Total	Others (Note 1)	Adjustments (Note 2)	Consolidated Statement of Profit or Loss
	UNIQLO Japan	UNIQLO International	GU	Global Brands
Revenue	806,887	843,937	246,091	109,633	2,006,550	2,295	-	2,008,846
Operating profit/(loss)	104,686	50,234	21,835	(12,743)	164,013	(81)	(14,585)	149,347
Segment income/(loss) (i.e., profit/(loss) before income taxes)	104,648	50,417	21,581	(13,226)	163,421	(79)	(10,473)	152,868
Other disclosure: Depreciation and amortization Impairment losses (Note 3)	52,997 2,413	70,524 15,847	21,574 1,305	10,473 3,523	155,569 23,090	11 13	22,267 (28)	177,848 23,074

(Note 1) “Others” includes the real estate leasing business, etc.

(Note 2) “Adjustments” mainly includes revenue and corporate expenses which are not allocated to individual reportable segments. (Note 3) For details on impairment losses, please refer to Note “7. Impairment Losses. ”

－ 17 －

Year ended 31 August 2021

							(Millions of yen)	(Millions of yen)
		Reportable segments			Total	Others (Note 1)	Adjustments (Note 2)	Consolidated Statement of Profit or Loss
	UNIQLO Japan	UNIQLO International	GU	Global Brands
Revenue	842,628	930,151	249,438	108,204	2,130,423	2,569	-	2,132,992
Operating profit/(loss)	123,243	111,203	20,175	(1,637)	252,985	91	(4,065)	249,011
Segment income/(loss) (i.e., profit/(loss) before income taxes)	125,888	109,475	20,075	(2,093)	253,345	93	12,432	265,872
Other disclosure: Depreciation and amortization Impairment losses (Note 3)	52,717 4,697	69,326 7,755	19,915 1,500	9,107 3,139	151,067 17,092	9 -	26,833 (183)	177,910 16,908

(Note 1) “Others” includes the real estate leasing business, etc.

3. Revenue

The Group performs global retail clothing operations through both physical stores and e-commerce channels. The following is a breakdown of total revenue by major regional market operation.

Yearended 31 August2020	Yearended 31 August2020
		Revenue (Millions of yen)	Percent of Total (%)
Japan Greater China Other parts of Asia & Oceania North America & Europe UNIQLO (Note 1)	Japan Greater China Other parts of Asia & Oceania North America & Europe	806,887 455,986 204,537 183,412	40.2 22.7 10.2 9.1
		1,650,825	82.2
GU (Note 2)		246,091	12.3
Global Brands (Note 3)		109,633	5.5
Others (Note 4)		2,295	0.1
Total		2,008,846	100.0

(Note 1) Revenue is classified by nation or region based on customer location.

The designated countries and regions are classified as follows:

Greater China: Mainland China, Hong Kong, Taiwan

Other parts of Asia & Oceania: South Korea, Singapore, Malaysia, Thailand, the Philippines, Indonesia, Australia, Vietnam, India

North America & Europe: United States of America, Canada, United Kingdom, France, Russia, Germany, Belgium, Spain, Sweden, the Netherlands, Denmark, Italy

(Note 2) Main national and regional market: Japan

(Note 3) Main national and regional markets: North America, Europe, Japan

(Note 4) The “Others” category includes real estate leasing operations.

－ 18 －

Year ended 31 August 2021

Year	ended 31 August2021
		Revenue (Millions of yen)	Percent of Total (%)
Japan Greater China Other parts of Asia & Oceania North America & Europe UNIQLO (Note 1)	Japan Greater China Other parts of Asia & Oceania North America & Europe	842,628 532,249 202,472 195,429	39.5 25.0 9.5 9.2
		1,772,780	83.1
GU (Note 2)		249,438	11.7
Global Brands (Note 3)		108,204	5.1
Others (Note 4)		2,569	0.1
Total		2,132,992	100.0

(Note 1) Revenue is classified by nation or region based on customer location.

The designated countries and regions are classified as follows:

Greater China: Mainland China, Hong Kong, Taiwan

Other parts of Asia & Oceania: South Korea, Singapore, Malaysia, Thailand, the Philippines, Indonesia, Australia, Vietnam, India

North America & Europe: United States of America, Canada, United Kingdom, France, Russia, Germany, Belgium, Spain, Sweden, the Netherlands, Denmark, Italy

(Note 2) Main national and regional market: Japan

(Note 3) Main national and regional markets: North America, Europe, Japan

(Note 4) The “Others” category includes real estate leasing operations.

－ 19 －

4. Selling, general and administrative expenses

The breakdown of selling, general and administrative expenses for each year is as follows:

		(Millions of yen)
	Year ended 31 August 2020	Year ended 31 August 2021
Selling, general and administrative expenses Advertising and promotions Lease expenses Depreciation and amortization Outsourcing Salaries Distribution Others	68,307 53,617 177,848 49,686 277,556 94,018 84,787	66,576 62,494 177,910 50,320 285,361 91,375 84,389
Total	805,821	818,427

5. Other income and other expenses

The breakdowns of other income and other expenses for each year are as follows:

		(Millions of yen)
	Year ended 31 August 2020	Year ended 31 August 2021
Other income Foreign exchange gains (Note 1) Gain on reclassification of foreign exchange differences on translation of foreign operations (Note 2) Others	1,576 - 6,378	2,912 8,708 6,617
Total	7,954	18,238

		(Millions of yen)
	Year ended 31 August 2020	Year ended 31 August 2021
Other expenses Losses on retirement of property, plant and equipment Impairment losses Others	1,125 23,074 4,752	985 16,908 7,421
Total	28,952	25,315

(Note 1) Foreign exchange gains incurred in the course of operating transactions are included in “Other income”. (Note 2) The amount represents gains reclassified to profit or loss due to the liquidation of J Brand, Inc. during the year ended 31 August 2021.

－ 20 －

6. Finance Income and Finance Costs

The breakdowns of finance income and finance costs for each year are as follows:

		(Millions of yen)
	Year ended 31 August 2020	Year ended 31 August 2021
Finance income Foreign exchange gains (Note) Interest income Others	1,503 9,673 50	19,222 4,589 47
Total	11,228	23,859

		(Millions of yen)
	Year ended 31 August 2020	Year ended 31 August 2021
Finance costs Interest expenses Others	7,706 1	6,990 7
Total	7,707	6,998

(Note) Foreign exchange gains incurred in the course of non-operating transactions are included in “Finance income”.

－ 21 －

7. Impairment Losses

During the year ended 31 August 2021, the Group recognized impairment losses on certain store assets, etc., due to reductions in profitability of the respective cash-generating units ("CGU").

The breakdown of impairment losses by asset type is as follows:

The breakdown of impairment losses by asset type is as follows:
		(Millions of yen)
	Year ended 31 August 2020	Year ended 31 August 2021
Buildings and structures Furniture, equipment and vehicles	3,715 655	1,895 417
Subtotal on property, plant and equipment	4,370	2,313
Software Trademark (Note) Other intangible assets	0 1,312 333	108 383 686
Subtotal on intangible assets	1,646	1,178
Right-of-use assets Other non-current assets (long-term prepayments)	17,041 15	13,410 6
Total impairment losses	23,074	16,908

(Note) For the year ended 31 August 2020, 612 million yen represented impairment losses on trademark of the Helmut Lang brand included in Theory business and 700 million yen represented impairment losses on trademark of the J Brand. For the year ended 31 August 2021, 383 million yen represented impairment losses on trademark of the J Brand.

The Group’s impairment losses during the year ended 31 August 2021 amounted to 16,908 million yen, compared with 23,074 million yen during the year ended 31 August 2020, and are included in “Other expenses” on the consolidated statement of profit or loss.

－ 22 －

Year ended 31 August 2020

Property, plant and equipment and Right-of-use assets

Out of total impairment losses amounting to 23,074 million yen, 21,411 million yen represented write downs of the carrying amounts of store assets to the recoverable amounts, primarily due to a reduction in profitability of certain stores, including flagship stores. With the global spread of COVID-19, the Group's performance has been adversely affected due to temporarily closing of the stores, etc. We measured impairment losses on the assumption that the impact of the COVID-19 pandemic will continue to be felt through to the end of August 2021.

The grouping of assets is based on the smallest CGU that independently generates cash inflow. In principle, each store, including flagship stores, is considered as an individual CGU and recoverable amounts thereon are calculated based on value in use. The value in use is calculated based on the cash flow projections with estimates and growth rates approved by management, at a discount rate of mainly 7.1%. Theoretically, the projected cash flows cover a five-year period, and do not use a growth rate that exceeds the long-term average market growth rate. The pre-tax discount rate calculation is based on the weighted-average cost of capital.

The main CGUs for which impairment losses were recorded are as follows:

Operating segment	CGU	Type
UNIQLO Japan	UNIQLO CO., LTD. stores	Buildings, structures and Right-of-use assets
UNIQLO International	UNIQLO USA LLC, FRL Korea Co., Ltd. etc., stores	Buildings, structures and Right-of-use assets
GU	G.U. CO., LTD., FRL Korea Co., Ltd. etc., stores	Buildings, structures and Right-of-use assets
Global Brands	Theory LLC., COMPTOIR DES COTONNIERS S.A.S., etc., stores	Buildings, structures and Right-of-use assets

Year ended 31 August 2021

Property, plant and equipment and Right-of-use assets

Impairment losses amounting to 16,908 million yen represented write downs of the carrying amounts of store assets to the recoverable amounts, primarily due to a reduction in profitability of certain stores, including flagship stores. With the global spread of COVID-19, the Group's performance has been adversely affected due to temporarily closing of the stores, etc. Although the timing for the situation subsiding differs from region to region and on a case-by-case basis, we made accounting estimates involving the assumption that the impact will last until the end of August 2022 for most countries and regions including Japan. For stores in other certain countries and regions, it may take longer for the situation to get under control.

The grouping of assets is based on the smallest CGU that independently generates cash inflow. In principle, each store, including flagship stores, is considered as an individual CGU and recoverable amounts thereon are calculated based on value in use. The value in use is calculated based on the cash flow projections with estimates and growth rates approved by management, applying a discount rate of mainly 8.9 %. Theoretically, the projected cash flows cover a five-year period, and do not use a growth rate that exceeds the long-term average market growth rate. The pre-tax discount rate calculation is based on the weighted-average cost of capital.

The main CGUs for which impairment losses were recorded are as follows:

Operating segment	CGU	Type
UNIQLO Japan	UNIQLO CO., LTD. stores	Buildings, and structures and Right-of- use assets etc.
UNIQLO International	UNIQLO USA LLC, UNIQLO EUROPE LIMITEDetc., stores	Buildings, and structures and Right-of- use assets etc.
GU	G.U. CO., LTD., etc., stores	Buildings, and structures and Right-of- use assets etc.
Global Brands	COMPTOIR DES COTONNIERS S.A.S., etc.,stores	Buildings, and structures and Right-of- use assets etc.

－ 23 －

8.Earnings pershare	8.Earnings pershare
Year ended 31 August 2020		Year ended 31 August 2021
Equity per share attributable to owners of the Parent (Yen) Basic earnings per share for the year (Yen) Diluted earnings per share for the year (Yen)	9,368.83 885.15 883.62	Equity per share attributable to owners of the Parent (Yen) Basic earnings per share for the year (Yen) Diluted earnings per share for the year (Yen)			10,930.42 1,663.12 1,660.44
(Note) The basis for calculation of basic earnings per share and diluted earnings per share for the year				is as follows:

			Year ended 31 August 2020	Year ended 31 August 2021
Basic earnings per share for the year Profit attributable to owners of the Parent for the year (Millions of yen) Profit not attributable to common shareholders (Millions of yen) Profit attributable to common shareholders (Millions of yen) Average number of common stock outstanding during the year (Shares) Diluted earnings per share for the year Adjustment to profit (Millions of yen) Increase in number of common stock (Shares) (Number of share subscription rights included in the increase)			90,357 - 90,357 102,081,609 - 177,082 (177,082)	169,847 - 169,847 102,125,851 - 164,744 (164,744)

Subsequent Events Not applicable.

－ 24 －

4. Others

Changes in officers

(1) Change in representative

Not applicable.

(2) Other changes in executives scheduled for 25 November 2021

Changes in directors assume approval by the General Meeting of Shareholders for the 60[th] fiscal term, scheduled to be held on 25 November 2021.

(i) Candidate for new appointment as a director

Director Kathy Matsui

Note: Kathy Matsui is an External Director as stipulated in Article 2-15 of the Companies Act.

(ii) Candidates for re-appointment as directors

Director	Tadashi Yanai	(current Chairman, President, and Chief Executive Officer)
Director	Nobumichi Hattori	(current Director)
Director	Masaaki Shintaku	(current Director)
Director	Takashi Nawa	(current Director)
Director	Naotake Ohno	(current Director)
Director	Takeshi Okazaki	(current Director)
Director	Kazumi Yanai	(current Director)
Director	Koji Yanai	(current Director)

Note: Tadashi Yanai is expected to be re-appointed Chairman, President, and Chief Executive Officer after re-election by the General Meeting of Shareholders scheduled for 25 November 2021.

Nobumichi Hattori, Masaaki Shintaku, Takashi Nawa and Naotake Ohno are External Directors as stipulated in Article 2-15 of the Companies Act.

(iii) Director scheduled to retire

Director Toru Hambayashi (current Director)

Note: Toru Hambayashi is an External Director as stipulated in Article 2-15 of the Companies Act.

(iv) Statutory Auditor scheduled to retire

Statutory Akira Tanaka (current Statutory Auditor) Auditor

On behalf of the Board

FAST RETAILING CO., LTD.

Tadashi Yanai

Chairman, President and Chief Executive Officer

Japan, 14 October 2021

As at the date of this announcement, the Executive Director is Tadashi Yanai, the Non-executive Directors are Takeshi Okazaki, Kazumi Yanai and Koji Yanai, the Independent Non-executive Directors are Toru Hambayashi, Nobumichi Hattori, Masaaki Shintaku, Takashi Nawa and Naotake Ohno.

－ 25 －

AI assistant

Fast Retailing Co., Ltd. — Annual Report 2021

51001_rns_2021-10-15_3b8acd87-211f-4b21-bf64-31e2b7f796d1.pdf