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)

INTERIM RESULTS ANNOUNCEMENT

FOR THE SIX MONTHS ENDED 28 FEBRUARY 2021

AND

RESUMPTION OF TRADING

The board of directors (the “Board”) of FAST RETAILING CO., LTD. (the “Parent” or “Company”) is pleased to announce the consolidated results of the Company and its subsidiaries (collectively the “Group”) for the six months ended 28 February 2021.

At the request of the Company, trading in its Hong Kong depositary receipts on the Stock Exchange was halted with effect from 1:00 p.m. on Thursday, 8 April 2021, pending the release of this announcement. An application will be made by the Company to the Stock Exchange for resumption of trading in the Hong Kong depositary receipts with effect from 9:00 a.m. on Friday, 9 April 2021.

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

1. CONSOLIDATED RESULTS

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

(1) Consolidated Operating Results (1 September 2020 to 28 February 2021)

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(Percentages represent year-on-year changes)
Profit before Profit for
Revenue Operating profit
income taxes the period
Millions Millions Millions Millions
% % % %
of yen of yen of yen of yen
Six months ended 28 February 2021 1,202,864 (0.5) 167,982 22.9 171,482 13.7 109,255 5.6
Six months ended 29 February 2020 1,208,512 (4.7) 136,736 (20.9) 150,859 (13.4) 103,444 (17.2)
Total comprehensive Basic earnings Diluted earnings
Profit attributable to
income for the per share for the per share for the
owners of the Parent
period period period
Millions Millions
% % Yen Yen
of yen of yen
Six months ended 28 February 2021 105,868 5.4 132,534 (7.6) 1,036.76 1,035.04
Six months ended 29 February 2020 100,459 (11.9) 143,505 8.8 984.21 982.49
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(2) Consolidated Financial Position

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Ratio of equity Equity per
Equity
attributable to share
attributable
Total assets Total equity owners attributable
to owners
of the Parent to owners
of the Parent
to total assets of the Parent
Millions of yen Millions of yen Millions of yen % Yen
As at 28 February 2021 2,501,920 1,098,819 1,056,228 42.2 10,342.04
As at 31 August 2020 2,411,990 996,079 956,562 39.7 9,368.83
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2. DIVIDENDS

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Dividend per share
(Declaration date)
First quarter Second quarter Third quarter
Year end Total
period end period end period end
Yen Yen Yen Yen Yen
Year ended 31 August 2020 - 240.00 - 240.00 480.00
Year ending 31 August 2021 - 240.00
Year ending 31 August 2021
- 240.00 480.00
(forecast)
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(Note) Revisions during this quarter of dividends forecast for fiscal year: None

3. CONSOLIDATED BUSINESS RESULTS PROJECTION FOR YEAR ENDING 31 AUGUST 2021 (1 SEPTEMBER 2020 TO 31 AUGUST 2021)

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(% shows rate of increase/decrease from previous period)
Profit before Profit attributable to
Revenue Operating profit
income taxes owners of the Parent
Millions Millions Millions Millions
% % % %
of yen of yen of yen of yen
Year ending 31 August 2021 2,210,000 10.0 255,000 70.7 255,000 66.8 165,000 82.6
Basic earnings
per share attributable
to owners
of the Parent
Yen
Year ending 31 August 2021 1,616.05
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(Note) Revisions during this quarter of previously disclosed consolidated business results projection for the year ending 31 August 2021: Yes

2 -
Notes

* Notes
(1) Changes of principal subsidiaries in the period:	None
(2) Changes in accounting policies and changes in accounting estimates:
(i) Changes in accounting policies to conform with IFRS:	None
(ii) Other changes in accounting policies:	None
(iii) Changes in accounting estimates:	None
(3) Total number of issued shares (Common stock) (i) Number of issued shares (including treasury stock) As at 28 February 2021 106,073,656 shares (ii) Number of treasury stock As at 28 February 2021 3,943,966 shares (iii) Average number of issued shares For the six months ended 28 February 2021 102,114,907 shares	As at 31 August 2020 106,073,656 shares As at 31 August 2020 3,973,113 shares For the six months ended 29 February 2020 102,070,655 shares

This interim results announcement is not subject to quarterly review procedures pursuant to the Financial Instruments and Exchange Act of Japan.
Explanation and other notes concerning proper use of the consolidated business results projection: Statements made in these materials, such as those pertaining to future matters, including business projections, are based on information presently available to the Company and certain assumptions determined to be reasonable. Actual business results may vary materially depending on a variety of factors. For the background, assumptions and other matters regarding the business results projection, please refer to P.7 “(3) Qualitative Information Concerning Consolidated Business Results Projection”.
3 -

1. Business Results

(1) Results of Operations

The Fast Retailing Group reported a decline in revenue but a large jump in profits in the first half of fiscal 2021, or the six months from 1 September 2020 to 28 February 2021 with consolidated revenue totaling 1.2028 trillion yen (−0.5% year-on-year), and operating profit rising strongly to 167.9 billion yen (+22.9% year-on-year). The rise in profit can be attributed primarily to large increases in profit from UNIQLO operations in Japan and Greater China (Mainland China market, Hong Kong market, and Taiwan market). On the other hand, due to the especially severe impact of COVID-19, The UNIQLO South Asia, Southeast Asia & Oceania (Southeast Asia, Australia, and India), UNIQLO North America, UNIQLO Europe regions and our Global Brands segment reported considerable declines in both revenue and profit. The first-half consolidated gross profit margin improved by 2.2 points year-on-year to 49.9% and the first-half selling, general and administrative expense ratio improved by 1.3 points yearon-year to 35.0%. We reported an impairment loss primarily on UNIQLO International operations and other losses of 11.7 billion yen under other income/expenses. In addition, we recorded a 4.7 billion yen foreign-exchange gain on foreign-currency denominated assets and other items, resulting in a finance income of 3.4 billion yen on a net basis. As a result, first-half profit before income taxes rose to 171.4 billion yen (+13.7% year-on-year) and profit attributable to owners of the parent rose to 105.8 billion yen (+5.4% year-on-year).

The Group’s medium-term vision is to become the world’s number one apparel retailer. In pursuit of this aim, we focus our efforts on expanding the UNIQLO International, as well as our GU brand and our global e-commerce operation. We continue to open multiple new UNIQLO stores in all markets and areas in which we operate and strive to instill deeper and more widespread empathy for UNIQLO’s LifeWear concept of ultimate everyday wear. Within the UNIQLO International segment, the Greater China and Southeast Asia regions are continuing to serve as the key pillars of our Group's business and growth. In terms of our GU segment, in addition to expanding the GU store network primarily in Japan, we are working to establish GU’s position as a brand that offers fun fashion at amazingly low prices. E-commerce sales continue to expand thanks to stronger initiatives to fuse online and physical stores and the offering of a wider range of services.

UNIQLO Japan

UNIQLO Japan reported a rise in revenue and a significant increase in profit in the first half of fiscal 2021, with revenue expanding to 492.5 billion yen (+6.2% year-on-year) and operating profit rising to 97.8 billion yen (+36.6% year-on-year). Firsthalf same-store sales increased by 5.6% year-on-year thanks to strong sales of products such as loungewear and HEATTECH blankets that fulfilled customer demand for stay-at-home items, as well as buoyant sales of core Fall Winter items along with ultra stretch active jogger pants and other items in our sport utility wear range. Our e-commerce operation expanded significantly, with online sales rising to 73.8 billion yen (+40.5% year-on-year) in the first half. UNIQLO Japan’s first-half gross profit margin improved by 2.9 points to 50.7% on the back of strong sales, improved discounting rates resulting from more restricted discount sales, and a lower cost of sales generated by improved production efficiency. The selling, general and administrative expense ratio improved by 1.4 points to 31.0% thanks to greater efficiencies primarily in distribution costs and advertising and promotion expenses.

UNIQLO International

UNIQLO International reported a decline in revenue but a significant increase in operating profit in the first half of fiscal 2021, with revenue falling to 521.8 billion yen (−3.6% year-on-year) and operating profit rising to 67.0 billion yen (+25.9% year-onyear). UNIQLO Europe and North America saw sales struggle in the face of especially severe COVID-19 conditions, but performance in East Asia was broadly strong. Meanwhile, e-commerce sales remained strong with online sales rising in each market.

The Greater China region reported large rises in both revenue and profit in the first half as the Mainland China market along with the Taiwan market and the Hong Kong market witnessed further improvements in profits. UNIQLO Greater China’s gross profit margin improved by 4.7 points year-on-year thanks to controlled discount sales, and the selling, general and administrative expense ratio improved by 2.5 points as the operation maintained appropriate inventory levels and enjoyed greater efficiencies primarily in store personnel and distribution costs following concerted efforts to boost the efficiency of store operations. The operational environment for UNIQLO South Korea continued to be tough resulting in a large decline in first-half revenue. However, improvements in the gross profit margin and selling, general and administrative expense ratio enabled the South Korean operation to post a slight operating profit compared to an operating loss in the previous year. UNIQLO S/SE Asia & Oceania reported sharp declines in both revenue and profit as the operation was adversely impacted by temporary store closures and restrictions on movement caused by COVID-19. However, Vietnam reported ongoing strong sales and a large rise in profits in the first half as the impact of COVID-19 remained low and the popularity of the UNIQLO brand increased. UNIQLO USA reported a large decline in revenue and a larger operating loss after some stores were temporarily closed or forced to limit customer numbers and people’s movement outside the home was restricted. UNIQLO Europe also reported large declines in both

revenue and profit in the first half as temporary store closures hit the operation hard. However, Russia achieved double-digit growth in first-half same-store sales and a large rise in operating profit as stores were not required to close temporarily in that market and sales of Winter items proved strong.

GU

The GU business segment achieved a steady year-on-year performance in the first half of fiscal 2021, with revenue totaling 132.6 billion yen (+0.3% year-on-year) and operating profit standing at 15.8 billion yen (+0.4% year-on-year).

While customer visits declined primarily in urban areas due to COVID-19, first-half same-store sales held steady year-on-year thanks to strong sales of the sweat-style knitwear that featured in our TV commercials, double-faced sweatshirts that successfully captured mass fashion trends, and loungewear and other items that satisfied customer demand for stay-at-home clothing. GU’s gross profit margin held steady at the previous year’s level, while the segment’s selling, general and administrative expense ratio improved by 0.4 point thanks to stronger cost controls.

Global Brands

Global Brands reported a large decline in revenue and an operating loss in the first half of fiscal 2021. Revenue declined to 54.5 billion yen (−22.2% year-on-year) and the segment generated an operating loss of 8.1 billion yen (compared to a 0.7 billion yen profit recorded in the first half of fiscal 2020). Our Theory fashion label reported large declines in both revenue and profit as performance worsened in the United States and Japan in the face of COVID-19. Our Japan-based PLST brand reported a large decline in revenue and a slight operating loss following a reduction in customer visits primarily in urban areas. Finally, our France-based Comptoir des Cotonniers brand reported a large decline in revenue and a wider operating loss on the back of temporary store closures.

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; Implementing good corporate governance. Our main activities in the second quarter of fiscal 2021 from December 2020 to February 2021 involved:

■ Consideration for the environment: We respect the goal of the Paris Agreement to reduce greenhouse gas emissions by 2050, and are committed to establishing long-term reduction targets in our stores, offices and supply chain. We have started to gradually introduce renewable energy in our stores and offices. In addition, water is valuable resources for the production of clothing. Therefore, in the procurement of raw materials as well as the production, sale and use of our products, we are striving to prevent water pollution and reduce water usage, and are taking measures to address floods and other water risks. In view of these efforts, the CDP (an international non-profit organization that provides a platform for the disclosure of environmental information), included the Group in its Water Security A-List in December 2020, the highest rating for water resource measures. We have thus been recognized as a leading company in terms of active efforts and transparency in water resource management. ■ Community support: In support of efforts against the COVID-19 pandemic, we have been donating masks and isolation gowns to medical institutions and nursing care facilities around the world since last year. Also, in order to provide support for refugees, among whom the impact of COVID-19 has been spreading, we have intensified our collaboration with the United Nations High Commissioner for Refugees (UNHCR). We plan to donate about a million UNIQLO AIRism masks to refugees and displaced persons in the five countries of Argentina, Iraq, Egypt, Chile and Bolivia, among others.

■ Good management (governance): As our business expands globally, we are focusing on ensuring compliance, strengthening risk management systems, managing sensitive information and ensuring the thoroughness of internal audits to firmly establishing internal control systems in each country and region. The efforts of each committee are also being intensified. Our Human Rights Committee conducts human rights investigations for employees focused on harassment and discrimination, discusses improvement measures and supports their promotion. In addition, in the event that significant compliance violation is suspected based on report to the employee hotline, the Code of Conduct Committee discusses whether a violation has been committed and how to prevent its recurrence. The Risk Management Committee has been strengthening risk management in business activities, and is continually discussing and planning our response to issues such as COVID-19, the risk of major disasters such as an earthquake in Tokyo and information security risks.

(2) Financial Positions and Cash Flows Information

(i) Financial Positions

Total assets as at 28 February 2021 were 2.5019 trillion yen, which was an increase of 89.9 billion yen relative to the end of the preceding fiscal year. The principal factors were an increase of 127.3 billion yen in cash and cash equivalents, a decrease of 1.6 billion yen in trade and other receivables, an increase of 5.2 billion yen in other current financial assets, a decrease of 62.8 billion yen in inventories, an increase of 6.7 billion yen in other current assets, an increase of 15.7 billion yen in property, plant and equipment, a decrease of 3.6 billion yen in right-of-use assets, and an increase of 4.1 billion yen in investments in associates accounted for using the equity method.

Total liabilities as at 28 February 2021 were 1.4031 trillion yen, which was a decrease of 12.8 billion yen relative to the end of the preceding fiscal year. The principal factors were a decrease of 7.3 billion yen in trade and other payables, a decrease of 44.6 billion yen in other current financial liabilities, an increase of 1.7 billion yen in derivative financial liabilities, an increase of 3.3 billion yen in lease liabilities, an increase of 24.5 billion yen in current tax liabilities, an increase of 4.3 billion yen in other current liabilities, an increase of 3.9 billion yen in provisions, and an increase of 1.3 billion yen in deferred tax liabilities.

Total net assets as at 28 February 2021 were 1.0988 trillion yen, which was an increase of 102.7 billion yen relative to the end of the preceding fiscal year. The principal factors were an increase of 81.9 billion yen in retained earnings, and an increase of 15.7 billion yen in other components of equity.

(ii) Cash Flows Information

Cash and cash equivalents as at 28 February 2021 had increased by 127.3 billion yen from the end of the preceding fiscal year, to 1.2208 trillion yen.

(Operating Cash Flows)

Net cash generated by operating activities for the six months ended 28 February 2021 was 352.1 billion yen, which was an increase of 115.4 billion yen (+48.8% year-on-year) from the six months ended 29 February 2020. The principal factors were 171.4 billion yen in profit before income taxes (an increase of 20.6 billion yen from the six months ended 29 February 2020), 11.6 billion yen in impairment losses (an increase of 6.2 billion yen from the six months ended 29 February 2020), 4.7 billion yen in foreign exchange gains (an increase of 7.4 billion yen from the six months ended 29 February 2020), a decrease of 70.1 billion yen in inventories (an increase of 6.0 billion yen from the six months ended 29 February 2020), a decrease of 12.4 billion yen in trade and other payables (an increase of 20.5 billion yen from the six months ended 29 February 2020), an increase of 0.7 billion yen in other assets (a decrease of 11.4 billion yen from the six months ended 29 February 2020), and an increase of 60.1 billion yen in other liabilities (an increase of 61.3 billion yen from the six months ended 29 February 2020).

(Investing Cash Flows)

Net cash used in investing activities for the six months ended 28 February 2021 was 41.0 billion yen, which was a decrease of 17.7 billion yen (-30.2% year-on-year) from the six months ended 29 February 2020. The principal factors were a net increase of 0.5 billion yen in bank deposits with original maturities of three months or longer (a decrease of 19.7 billion yen from the six months ended 29 February 2020), 28.3 billion yen in payments for property, plant and equipment (an increase of 4.5 billion yen from the six months ended 29 February 2020), 8.0 billion yen in payments for intangible assets (a decrease of 2.8 billion yen from the six months ended 29 February 2020), 4.2 billion yen in payments for acquisition of investments in associates (an increase of 4.2 billion yen from the six months ended 29 February 2020), and 0.6 billion yen in proceeds from other investing activities (a decrease of 3.1 billion yen from the six months ended 29 February 2020).

(Financing Cash Flows)

Net cash used in financing activities for the six months ended 28 February 2021 was 201.3 billion yen, which was an increase of 102.1 billion yen (+103.0% year-on-year) from the six months ended 29 February 2020. The principal factors were a net decrease of 4.8 billion yen in loans payable (an increase of 0.6 billion yen from the six months ended 29 February 2020), 100.0 billion yen in repayment of redemption of bonds (an increase of 100.0 billion yen from the six months ended 29 February 2020), 1.3 billion yen in dividends paid to non-controlling interests (a decrease of 0.9 billion yen from the six months ended 29 February 2020), and 70.7 billion yen in repayments of lease liabilities (an increase of 2.5 billion yen from the six months ended 29 February 2020).

(3) Qualitative Information Concerning Consolidated Business Results Projection

The following adjustments were made concerning the consolidated business results projection for the year ending 31 August 2021 in consideration of the business results for the six months ended 28 February 2021.

In addition, below are the differences of the consolidated business results projections for the year ending 31 August 2021 as reported in the “First Quarterly Results Announcement for the Three Months Ended 30 November 2020 and Resumption of Trading” released on 14 January 2021.

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(Full financial year)
Basic earnings per
Profit attributable
Profit before share attributable
Revenue Operating profit to owners of the
income taxes to owners of the
Parent
Parent
Millions of yen Millions of yen Millions of yen Millions of yen Yen
Previous forecast (A) 2,200,000 245,000 245,000 165,000 1,616.05
New forecast (B) 2,210,000 255,000 255,000 165,000 1,616.05
- -
Difference (B–A) 10,000 10,000 10,000
Change (%) 0.5% 4.1% 4.1% - -
Previous results 2,008,846 149,347 152,868 90,357 885.15
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2. Interim Condensed Consolidated Financial Statements and Accompanying Material Notes (1) Interim Condensed Consolidated Statement of Financial Position

*(1) Interim Condensed Consolidated Statement of Financial Position*
	(Millions of yen)
Notes	As at 31 August 2020 As at 28 February 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 6 Right-of-use assets 6 Goodwill Intangible assets 6 Financial assets Investments in associates accounted for using the equity method Deferred tax assets Derivative financial assets Other assets 6 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 1,220,854 67,069 65,464 49,890 55,162 417,529 354,641 14,413 14,244 2,126 1,496 10,629 17,402
	1,655,191 1,729,266 136,123 151,875 399,944 396,335 8,092 8,092 66,833 67,162 67,770 68,688 14,221 18,411 45,447 44,630 10,983 10,332 7,383 7,124
	756,799 772,653
	2,411,990 2,501,920
	210,747 203,430 213,301 168,668 2,763 5,621 114,652 118,956 22,602 47,124 752 882 82,636 86,939
	647,455 631,623 370,780 370,872 351,526 350,553 32,658 36,437 7,760 9,105 3,205 2,094 2,524 2,414
	768,455 771,478
	1,415,910 1,403,101 10,273 10,273 23,365 25,220 933,303 1,015,248 (15,129) (15,022) 4,749 20,507
	956,562 1,056,228 39,516 42,590
	996,079 1,098,819
	2,411,990 2,501,920

(2) Interim Condensed Consolidated Statement of Profit or Loss and Interim Condensed Consolidated Statement of

Comprehensive Income

Interim Condensed Consolidated Statement of Profit or Loss

(Millions of yen)

Notes	Six months ended 29 February 2020 Six months ended 28 February 2021
Revenue 2 Cost of sales Gross profit Selling, general and administrative expenses 3 Other income 4 Other expenses 4,6 Share of profit and loss of associates accounted for using the equity method Operating profit Finance income 5 Finance costs 5 Profit before income taxes Income tax expense Profit for the period Profit for the period attributable to: Owners of the Parent Non-controlling interests Total Earnings per share Basic (yen) 7 Diluted (yen) 7	1,208,512 1,202,864 (631,722) (602,413)
	576,790 600,451 (438,798) (420,750) 6,002 4,446 (7,309) (16,512) 51 347
	136,736 167,982 18,069 7,059 (3,946) (3,559)
	150,859 171,482 (47,414) (62,227)
	103,444 109,255
	100,459 105,868 2,985 3,387
	103,444 109,255
	984.21 1,036.76 982.49 1,035.04

Interim Condensed Consolidated Statement of Comprehensive Income

(Millions of yen)

	Six months ended 29 February 2020 Six months ended 28 February 2021
Profit for the period Other comprehensive income / (loss), net of income tax 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 translating foreign operations Cash flow hedges Share of other comprehensive income of associates Total items that may be reclassified subsequently to profit or loss Other comprehensive income / (loss), net of income tax Total comprehensive income for the period Attributable to: Owners of the Parent Non-controlling interests Total comprehensive income for the period	103,444 109,255 (231) 369
	(231) 369 14,715 18,269 25,556 4,584 18 55
	40,291 22,909
	40,060 23,279
	143,505 132,534
	140,153 127,401 3,352 5,133
	143,505 132,534

(3) Interim Condensed Consolidated Statement of Changes in Equity For the six months ended 29 February 2020

(Millions of yen)

	Capital stock Capital surplus Retained earnings Treasury stock, at cost	Other components of equity Equity attributable to owners of the Parent Non- controlling interest Total equity Financial assets measured at fair value through other comprehensive income 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 period Comprehensive income Profit for the period 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 Total transactions with the owners of the Parent Total net changes during the period As at 29 February 2020	10,273 20,603 928,748 (15,271)	(697) (13,929) 8,906 (11) (5,732) 938,621 44,913 983,534
	- - (30,370) -	- - - - - (30,370) (1,429) (31,800)
	10,273 20,603 898,377 (15,271)	(697) (13,929) 8,906 (11) (5,732) 908,250 43,483 951,734
	- - 100,459 - - - - -	- - - - - 100,459 2,985 103,444 (231) 13,727 26,178 18 39,693 39,693 366 40,060
	- - 100,459 - - - - (5) - 934 - 78 - - (24,494) - - 1,690 - - - - - -	(231) 13,727 26,178 18 39,693 140,153 3,352 143,505 - - - - - (5) - (5) - - - - - 1,013 - 1,013 - - - - - (24,494) (1,569) (26,064) - - - - 1,690 - 1,690 - - (6,299) - (6,299) (6,299) (794) (7,093)
	- 2,625 (24,494) 73	- - (6,299) - (6,299) (28,095) (2,363) (30,459)
	- 2,625 75,964 73	(231) 13,727 19,878 18 33,394 112,057 988 113,046
	10,273 23,229 974,342 (15,198)	(928) (202) 28,785 7 27,661 1,020,308 44,471 1,064,780

For the six months ended 28 February 2021

(Millions of yen)

	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 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 period Comprehensive income Profit for the period 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 period As at 28 February 2021	10,273 23,365 933,303 (15,129) 385 (8,489) 12,905 (51) 4,749 956,562 39,516 996,079 - - 105,868 - - - - - - 105,868 3,387 109,255 - - - - 369 16,389 4,717 55 21,533 21,533 1,746 23,279
	- - 105,868 - 369 16,389 4,717 55 21,533 127,401 5,133 132,534 - - - (4) - - - - - (4) - (4) - 1,215 - 111 - - - - - 1,327 - 1,327 - - (24,504) - - - - - - (24,504) (1,367) (25,871) - 639 - - - - - - - 639 - 639 - - - - - - (5,193) - (5,193) (5,193) (691) (5,884) - - 581 - (581) - - - (581) - - -
	- 1,855 (23,923) 106 (581) - (5,193) - (5,774) (27,735) (2,058) (29,794)
	- 1,855 81,945 106 (211) 16,389 (475) 55 15,758 99,665 3,074 102,740
	10,273 25,220 1,015,248 (15,022) 173 7,900 12,429 4 20,507 1,056,228 42,590 1,098,819

10 -

(4) Interim Condensed Consolidated Statement of Cash Flows

(Millions of yen)

Notes	Six months ended 29 February 2020 Six months ended 28 February 2021
Cash flows from operating activities Profit before income taxes Depreciation and amortization Impairment losses 6 Interest and dividend 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 generated by / (used in) investing activities	150,859 171,482 87,871 89,004 5,443 11,696 (5,878) (2,310) 3,946 3,551 (12,190) (4,740) (51) (347) 355 609 207 (420) 64,120 70,197 (32,925) (12,402) 10,648 (764) (1,227) 60,132 2,061 2,278
	273,241 387,964 5,633 2,099 (3,483) (3,114) (39,535) (36,036) 825 1,212
	236,680 352,125
	(53,772) (47,286) 33,503 46,738 (23,833) (28,359) (10,895) (8,083) (1,759) (666) (2,952) (1,825) 3,437 2,057 - (4,232) (2,556) 620
	(58,828) (41,037)

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		(Millions of yen) Six months ended 29 February 2020 Six months ended 28 February 2021 976 32,618 (847) (37,453) (4,343) - - (100,000) (24,494) (24,504) (2,328) (1,367) (68,231) (70,733) 73 106 (99,195) (201,334) 19,127 17,570 97,783 127,323 1,086,519 1,093,531 1,184,303 1,220,854

	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 generated by / (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 period Cash and cash equivalents at the end of period

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(5) Notes to assumption of going concern

Not applicable.

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(6) Notes to the Interim Condensed Consolidated Financial Statements

1. Segment Information

(i) Description of reportable segments

The Group’s reportable segments are components for which discrete financial information is available and which are reviewed regularly by the Board of Directors (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 clothing business in Japan and overseas

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

(ii) Segment revenue and results

For the six months ended 29 February 2020

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(Millions of yen)
Interim
Reportable segments
Condensed
Total Others Adjustments Consolidated
UNIQLO UNIQLO GU Global (Note 1) (Note 2) Statement of
Japan International Brands Profit or Loss
Revenue 463,568 541,248 132,293 70,100 1,207,211 1,301 - 1,208,512
Operating profit / (loss) 71,626 53,267 15,823 741 141,458 278 (5,000) 136,736
Segment income /(loss)
(i.e., profit / loss before 73,470 54,159 15,711 517 143,858 279 6,721 150,859
income taxes)
Other disclosure:
Impairment losses 596 4,377 100 368 5,443 - - 5,443
(Note 3)
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(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) Details on the Impairment losses are stated in note “6. Impairment losses”.

For the six months ended 28 February 2021

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(Millions of yen)
Interim
Reportable segments
Condensed
Others Adjustments
Total Consolidated
UNIQLO UNIQLO GU Global (Note 1) (Note 2) Statement of
Japan International Brands Profit or Loss
Revenue 492,519 521,826 132,671 54,561 1,201,579 1,284 - 1,202,864
Operating profit / (loss) 97,870 67,070 15,888 (8,188) 172,641 44 (4,703) 167,982
Segment income /(loss)
(i.e., profit / loss before 98,499 65,995 15,811 (8,436) 171,870 45 (432) 171,482
income taxes)
Other disclosure:
Impairment losses 839 9,035 434 1,386 11,696 - - 11,696
(Note 3)
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(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) Details on the Impairment losses are stated in note “6. Impairment losses”.

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2. Revenue

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

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Six months ended 29 February 2020
Revenue Percent of Total
(Millions of yen) (%)
Japan 463,568 38.4
Greater China 270,334 22.4
Other parts of Asia & Oceania 135,428 11.2
North America & Europe 135,485 11.2
UNIQLO (Note 1) 1,004,816 83.1
GU (Note 2) 132,293 10.9
Global Brands (Note 3) 70,100 5.8
Others (Note 4) 1,301 0.1
Total 1,208,512 100.0
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(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.

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Six months ended 28 February 2021
Revenue Percent of Total
(Millions of yen) (%)
Japan 492,519 40.9
Greater China 310,807 25.8
Other parts of Asia & Oceania 110,032 9.1
North America & Europe 100,986 8.4
UNIQLO (Note 1) 1,014,346 84.3
GU (Note 2) 132,671 11.0
Global Brands (Note 3) 54,561 4.5
Others (Note 4) 1,284 0.1
Total 1,202,864 100.0
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(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.

3. Selling, general and administrative expenses

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

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(Millions of yen)
Six months ended Six months ended
29 February 2020 28 February 2021
Selling, general and administrative expenses
Advertising and promotion 39,712 36,170
Lease expenses 38,742 35,456
Depreciation and amortization 87,871 89,004
Outsourcing 25,370 25,177
Salaries 145,931 141,353
Distribution 54,124 50,295
Others 47,044 43,292
Total 438,798 420,750
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4. Other income and other expenses

The breakdown of other income and other expenses for each reporting period is as follows:

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(Millions of yen)
Six months ended Six months ended
29 February 2020 28 February 2021
Other income
Foreign exchange gains (Note) 3,551 2,366
Others 2,450 2,079
Total 6,002 4,446
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(Millions of yen)

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Six months ended Six months ended
29 February 2020 28 February 2021
Other expenses
Loss on retirement of property, plant and equipment 355 609
Impairment losses 5,443 11,696
Others 1,510 4,207
Total 7,309 16,512
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(Note) Currency adjustments incurred in the course of operating transactions are included in “Other income”.

5. Finance income and finance costs

The breakdown of finance income and finance costs for each reporting period is as follows:

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(Millions of yen)
Six months ended Six months ended
29 February 2020 28 February 2021
Finance income
Foreign exchange gains (Note) 12,190 4,740
Interest income 5,867 2,301
Others 11 16
Total 18,069 7,059
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(Millions of yen)
Six months ended Six months ended
29 February 2020 28 February 2021
Finance costs
Interest expenses 3,946 3,551
Others - 7
Total 3,946 3,559
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(Note) Currency adjustments incurred in the course of non-operating transactions are included in “Finance income”.

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6. Impairment losses

The Group’s impairment losses during the six months ended 28 February 2021 amounted to 11,696 million yen, compared with 5,443 million yen during the six months ended 29 February 2020, and are included in “other expenses” on the Interim condensed consolidated statement of profit or loss.

The breakdown of impairment losses is as follows:

For the six months ended 29 February 2020

Impairment losses are mainly due to a reduction in profitability of store assets at UNIQLO Japan and UNIQLO International, and no material impairment losses are recognized.

For the six months ended 28 February 2021

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

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(Millions of yen)
Six months ended
28 February 2021
Buildings and structures 1,439
Furniture, equipment and vehicles 374
Subtotal on property, plant and equipment 1,814
Software 106
Other intangible assets 7
Subtotal on intangible assets 113
Right-of-use assets 9,765
Other non-current assets (long-term prepayments) 2
Total impairment losses 11,696
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Property, plant and equipment and right-of-use assets

Impairment losses amounting to 11,696 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 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 February 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 cash-generating unit ("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 by discounting the cash flow projections based on estimates and growth rates approved by management at a discount rate of mainly 8.1%. Theoretically, the projected cash flows cover a maximum period of five years, and do not use a growth rate that exceeds the long-term average market growth rate. The pre-tax discount rate calculation is primarily based on the weighted-average cost of capital.

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

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Operating segment CGU Type
Buildings, structures and right-of-use
UNIQLO Japan UNIQLO CO., LTD. stores
assets etc.
UNIQLO USA LLC, UNIQLO EUROPE Buildings, structures and right-of-use
UNIQLO International
LIMITED etc., stores assets etc.
Buildings, structures and right-of-use
GU GU (Shanghai) Trading Co., Ltd. stores
assets etc.
COMPTOIR DES COTONNIERS S.A.S., Buildings, structures and right-of-use
Global Brands
etc., stores assets etc.
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7. Earnings per share

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Six months ended 29 February 2020 Six months ended 28 February 2021
Equity per share attributable to owners Equity per share attributable to owners
9,994.97 10,342.04
of the Parent (Yen) of the Parent (Yen)
Basic earnings per share (Yen) 984.21 Basic earnings per share (Yen) 1,036.76
Diluted earnings per share (Yen) 982.49 Diluted earnings per share (Yen) 1,035.04
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(Note) The basis for calculation of basic earnings per share and diluted earnings per share is as follows:

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Six months ended Six months ended
29 February 2020 28 February 2021
Basic earnings per share for the period
Profit for the period attributable to owners of the Parent
100,459 105,868
(Millions of yen)
- -
Profit not attributable to common shareholders (Millions of yen)
Profit attributable to common shareholders (Millions of yen) 100,459 105,868
Average number of common stock outstanding during the period
102,070,655 102,114,907
(Shares)
Diluted earnings per share for the period
- -
Adjustment to profit (Millions of yen)
Increase in number of common stock (Shares) 179,046 169,788
(Number of share subscription rights included in increase) (179,046) (169,788)
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8. Subsequent events

Not applicable.

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3. Resumption of Trading

On behalf of the Board FAST RETAILING CO., LTD. Tadashi Yanai

Chairman, President and Chief Executive Officer

Japan, 8 April 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.

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AI assistant

Fast Retailing Co., Ltd. — Interim / Quarterly Report 2021

51001_rns_2021-04-08_e7cecf2e-0a70-44db-b3d2-3a21baa47b5d.pdf