Fast Retailing : Results for September to November 2020 and Estimates for FY2021 (567KB)

January 14, 2021

Fast Retailing Results for September to November 2020 and Estimates for FY2021

Takeshi Okazaki

Fast Retailing Co., Ltd.

Group Senior Executive Officer & CFO

1

Contents

	Ｉ． Results Sep.-Nov. 2020 (1Q)	P３	～	P19
	ＩＩ． Estimates for Fiscal 2021	P20	～	P22
	ＩＩＩ．Reference	P23	～	P25
	Disclosure of Corporate Performance
	Following the Group's adoption of International Financial Reporting Standards (IFRS) from the
	year ending August 31, 2014, all data in this document are calculated using IFRS standards.
	Business profit = Revenue - (Cost of sales + SG&A expenses)
	Group Operations:
	UNIQLO Japan:	UNIQLO Japan operations
	UNIQLO International:	All UNIQLO operations outside of Japan
	GU:	All GU operations inside and outside Japan
	Global Brands:	Theory, PLST, Comptoir des Cotonniers, Princesse tam.tam, J Brand
	Consolidated results also include Fast Retailing Co., Ltd. performance and consolidated
	adjustments.
	A Note on Business Forecasts
	When compiling business estimates, plans and target figures in this document, the figures that
	are not historical facts are forward looking statements based on management's judgment in
	light of currently available information. These business forecasts, plans and target figures may
	vary materially from the actual business results depending on the economic environment, our
	response to market demand and price competition, and changes in exchange rates.			2

Group: FY2021 1Q Results

Sharp rise in operating profit higher than expected

Strong UNIQLO Japan, Greater China, GU

	Yr to Aug. 2020	Yr to Aug. 2021
	(3 mths to Nov. 2019)	(3 mths to Nov. 2020)
	y/y
	Actual	Actual
Revenue	623.4	619.7	-0.6%
(to revenue)	100.0%	100.0%	-
Gross profit	312.9	324.8	+3.8%
(to revenue)	50.2%	52.4%	+2.2p
SG&A	224.0	213.2	-4.8%
(to revenue)	35.9%	34.4%	-1.5p
Business profit	88.8	111.5	+25.6%
(to revenue)	14.2%	18.0%	+3.8p
Other income, expenses	2.8	1.5	-47.0%
(to revenue)	0.5%	0.2%	-0.3p
Operating profit	91.6	113.0	+23.3%
(to revenue)	14.7%	18.2%	+3.5p
Finance income, costs	10.3	-5.9	-
(to revenue)	1.7%	-	-
Profit before income taxes	102.0	107.1	+5.0%
(to revenue)	16.4%	17.3%	+0.9p
Profit attributable to	70.9	70.3	-0.7%
owners of the parent
(to revenue)	11.4%	11.4%	-

Billions of

Yen

3

Group: FY2021 1Q Operating Profit

¥619.7bln -0.6%

Revenue		Average forex impact -2.7% y/y
¥623.4bln→ ¥619.7bln
	USD	-6.5%
(-¥3.6bln)
	RMB	-4.9%
UQ Japan	+¥20.8bln
	EUR	-4.7%
UQ International	-¥20.1bln
			KRW	-9.7%
GU	+¥3.5bln
Global Brands	-¥8.0bln		Average	-2.7%

Gross profit margin 50.2%→ 52.4% (+2.2p)

UQ Japan	+3.8p
UQ International	+2.2p
GU	-0.6p

¥324.8bln +3.8%

SG&A ratio

35.9%→ 34.4% (-1.5p)

UQ Japan	-2.8p
UQ International	±0.0p
GU	-1.2p

¥213.2bln -4.8%

¥111.5bln +25.6%

SG&A

Foreign exchange gain: ¥1.3bln on temporary advances for purchases by overseas Subsidiaries, etc.

¥113.0bln

¥1.5bln +23.3%

Other

income/expenses

FY2021

FY2021

FY2021

FY2021

1Q

1Q

1Q

1Q

Revenue

Gross profit

Business profit

Operating profit 4

Group: FY2021 1Q	Profit Attributable to
	Owners of the Parent

Value of foreign−currency denominated assets decreased by ¥5.1bln

		September 1, 2020:	1USD = 105.4JPY
		November 30, 2020:	1USD = 103.9JPY
¥113.0bln
+23.3%	-¥5.9bln	¥107.1bln	¥34.6bln
		+5.0%
	Net finance
	income
			¥72.4bln		¥70.3bln
			+0.9%	¥2.1bln
			-0.7%
			Income
			Non−controlling
			taxes
			assets
FY2021		FY2021	FY2021		FY2021
1Q		1Q	1Q		1Q
Operating profit		Profit before	Profit for the		Profit attributable to
		Income tax	period		owners of the
					parent	5

1Q Breakdown by Group Operation

Billions of Yen

UNIQLO

Japan

UNIQLO International

GU

Global

Brands

	Yr to Aug. 2020	Yr to Aug. 2021
	(3 mths to Nov.2019)	(3 mths to Nov.2020)		y/y
	Actual	Actual
Revenue
233.0	253.8		+8.9%
Business profit	38.8	58.9		+51.6%
(to revenue)	16.7%	23.2%		+6.5p
Other income, expenses	-0.3	1.1		-
Operating profit	38.5	60.0		+55.8%
(to revenue)	16.5%	23.7%		+7.2p
Revenue	280.7	260.6		-7.2%
Business profit	38.2	41.3		+8.2%
(to revenue)	13.6%	15.9%		+2.3p
Other income, expenses	-0.4	0.0		-
Operating profit	37.8	41.4		+9.5%
(to revenue)	13.5%	15.9%		+2.4p
Revenue	72.9	76.5		+4.9%
Business profit	12.4	13.4		+8.5%
(to revenue)	17.0%	17.6%		+0.6p
Other income, expenses	-0.0	0.1		-
Operating profit	12.3	13.6		+9.9%
(to revenue)	17.0%	17.8%		+0.8p
Revenue	36.1	28.0		-22.3%
Business profit	1.9	-0.3		-
(to revenue)	5.3%	-		-
Other income, expenses	-0.0	0.1		-
Operating profit	1.8	-0.2		-
(to revenue)	5.2%	-		-

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

6

UNIQLO Japan: 1Q Overview

Revenue up, sharp OP gain greatly exceeds plan

・Store and e−commerce revenue exceeded plan thanks to strong sales of items designed to satisfy stay−at−home demand and core Fall Winter ranges and our successful e-commerce 20−year anniversary campaign.

・Large operating profit gain on considerable improvements in gross profit margin and SG&A ratio.

	Yr to Aug. 2020	Yr to Aug. 2021
	(3 mths to	(3 mths to
	y/y
	Nov.2019)	Nov.2020)
Revenue	233.0	253.8	+8.9%
(to revenue)	100.0%	100.0%	-
Gross profit	116.5	136.5	+17.1%
(to revenue)	50.0%	53.8%	+3.8p
SG&A	77.6	77.5	-0.2%
(to revenue)	33.3%	30.5%	-2.8p
Business profit	38.8	58.9	+51.6%
(to revenue)	16.7%	23.2%	+6.5p
Other income, expenses	-0.3	1.1	-
(to revenue)	-	0.4%	-
Operating profit	38.5	60.0	+55.8%
(to revenue)	16.5%	23.7%	+7.2p

Billions of

Yen

7

UNIQLO Japan: 1Q Revenue

Same−store sales rise 7.3% y/y

・Strong selling items: loungewear, HEATTECH blankets and other products that satisfied stay-at-home demand as people refrained from going out and spent more time at home; ultra stretch active jogger pants and other sports utility wear; haori-style jackets, smart ankle pants and other core Fall Winter items.

・New +J collection with designer Ms. Jil Sander and collaborative Peanuts Products, both launched in November, and AIRism masks contributed to sales.

・Average purchase price rose 6.8% y/y thanks to e-commerce20-year anniversary campaign in October and strong sales of comparatively higher-priced +J items.

・E-commerce sales rose to ¥36.7bln (+48.3%) or 14.5% of total sales.

・December same-store sales rose 6.2%. Colder weather from mid-month boosted sales of fleece, HEATTECH bottoms and other warm clothing that can be worn around the house, as well as HEATTECH blankets, loungewear and other products that satisfy customers' stay-at-home needs.

Same-store sales			Yr to Aug. 2021
	y/y	Sep.	Oct.	Nov.	3 mths to	Dec.
	Nov. 2020
Net sales	+10.0%	+16.2%	+0.5%	+7.3%	+6.2%
	Customer visits	+8.5%	+0.9%	-4.2%	+0.5%	+0.3%
	Customer spend	+1.4%	+15.1%	+4.9%	+6.8%	+5.9%	8

UNIQLO Japan: 1Q Gross Profit Margin, SG&A

Gross profit margin: 53.8% (+3.8p y/y)

Exceeds plan

・Up primarily on higher sales and lower discounting rates as we resisted excessive discounts to draw customers, and lower cost of sales on the back of concentrated purchasing of materials, tighter product ranges, greater accuracy of production planning and other production efficiencies.

・End-November inventories +¥0.6bln y/y. Fall inventory slightly bloated. Plan to achieve appropriate Fall inventory by boosting discounting through spring 2021.

SG&A ratio: 30.5％ (−2.8p y/y)

Ratio improved more than expected

・Roughly in line with plan in monetary terms. SG&A ratio exceeded plan thanks to higher-than-expected sales.

・Distribution and advertising and promotion costs down y/y in monetary terms.

・Distribution costs down on review of store delivery frequency and more efficient warehouse operations. Distribution-to-revenue ratio also improved sharply. E- commerce distribution costs rose slightly in monetary terms in line with higher sales, but per-item distribution costs continued to decline on further efficiencies.

・Advertising and promotion fell after we scrutinized cost-effectiveness and	9
reviewed flyer size and number of TV ads.

UNIQLO International: 1Q Overview

Revenue down. Operating profit gain as expected

・Greater China revenue rose and operating profit increased sharply on strong performance from Mainland China and Taiwan.

・S/SE Asia & Oceania, North America, Europe revenue and profit down sharply as

regions hit hard by growing COVID−19 pandemic.

・UNIQLO International revenue slightly below plan, but operating profit roughly in line with plan on improved gross profit margin and strong cost controls.

	Yr to Aug. 2020	Yr to Aug. 2021
	(3 mths to	(3 mths to
	y/y
	Nov.2019)	Nov.2020)
Revenue	280.7	260.6	-7.2%
(to revenue)	100.0%	100.0%	-
Gross profit	143.9	139.4	-3.1%
(to revenue)	51.3%	53.5%	+2.2p
SG&A	105.6	98.0	-7.2%
(to revenue)	37.6%	37.6%	-
Business profit	38.2	41.3	+8.2%
(to revenue)	13.6%	15.9%	+2.3p
Other income, expenses	-0.4	0.0	-
(to revenue)	-	0.0%	-
Operating profit	37.8	41.4	+9.5%
(to revenue)	13.5%	15.9%	+2.4p

Billions of

Yen

10

UNIQLO International: 1Q by Region (1)

Greater China: Revenue up. Large profit gain

Exceeds plan

・Strong sales of warm clothing in Mainland China and Taiwan. Buoyant October holiday sale. ・Gross profit margin improved 3.0 points and SG&A ratio improved 1.7 points y/y.

Mainland China: Revenue up. Large profit gain. Far exceeds plan

・Same-store sales up on strong sales of wool coats, fleece and other warm clothing, loungewear, T-shirts and other items that fulfilled stay-at-home demand.

・Gross profit margin and SG&A ratio both improved.

✓Gross profit margin: Pressed ahead with strategy to control discounting, appeal on product value, and strengthen branding.

✓SG&A ratio: More efficient store operations, lower personnel costs, effective use of digital marketing, more cost-effective advertising and promotion costs.

・E-commerce sales rose as planned. Achieved No.1 apparel sales on Singles' Day for 5th consecutive year. Profitability up sharply on restricted discount sales.

・Selected as a Top Brand for 9th consecutive year in YiMagazine's Top Brands list.

Hong Kong: Revenue down. Turns an operating profit. Falls short of plan

・Revenue down on COVID-19. Moved back into the black on improved GPM and SG&A ratio.

Taiwan: Reports higher revenue and large profit gain. Roughly in line with plan
・1Q same-store sales rose on strong sales during long October holiday.
・OP rose sharply as stricter discounting boosted the GPM and the operation cut costs.	11

UNIQLO International: 1Q by Region (2)

S. Korea: Large revenue fall. Slight operating profit to plan

・Gross profit margin and SG&A ratio both improved.

✓GPM: Declined sharply in FY2020 1Q as dramatically falling sales prompted stronger discounting of Fall Winter items. Improved in FY2021 1Q after achieving appropriate inventory levels.

✓SG&A ratio: Improved on stronger cost controls with the closure of unprofitable stores resulted primarily in a reduction in store rents.

S/SE Asia & Oceania: Large revenue, profit fall below plan

・E-commerce sales expand by approx. 50% y/y thanks to strong sales of loungewear that satisfied stay-at-home demand, sports utility wear, T-shirts and other Summer items.

・Customer visits plummeted, and revenue and profit declined sharply in the Philippines and Malaysia, which were hit hardest by COVID-19.

・While Singapore, Thailand, and Indonesia showed signs of recovering between September and November, revenue and profit declined sharply as consumer decisions to stay at home and the loss of overseas travel demand affected operations more than expected.

・Vietnam reported above-plan, strong sales. Smart ankle pants, parkas, flannel shirts and other Fall Winter items sold well because COVID-19 was brought under control and the weather stayed consistently cold.

・Australia reported lower revenue and an operating loss. Revenue plummeted as 8 stores were forced to close temporarily from September through early November. However, e-commerce sales continued strong with revenue roughly doubling y/y.

・India reported higher revenue and an operating loss. End-November store numbers: 5 (+3 y/y) resulted in higher revenue, but sales and OP were hit hard by COVID-19 and came in below plan. 12

UNIQLO International: 1Q by Region (3)

N. America: Large revenue drop, operating loss

USA: Below plan. Reports a large decline in revenue and an operating loss

・Same-store sales fell sharply with customer visits slumping as our 5 stores on the West Coast were forced to close temporarily through early October and stores that were able to operate were adversely affected by restricted store entry and restricted movement outside the home.

・On the profit front, stronger discounting knocked the GPM lower and resulted in an operating loss.

・E-commerce sales rose approx. 20% y/y on stronger digital marketing and strong sales of items that satisfied stay-at-home demand, such as loungewear, sweat wear, T-shirts, bottoms made from cut & sew materials, and other items.

Canada: Large revenue decline. Operating profit down. Slightly below plan

・Same-store sales plummeted on lower customer visits due to COVID-19, but EC sales rose sharply.

Europe: Large revenue, profit declines. Below plan

・On a recovery trend and achieving near previous year sales through October, but a resurgence of COVID-19 forced all stores in the UK, France, Belgium, and Italy to close for roughly one month during the bumper sales month of November and resulted in a sharp worsening in performance.

・Russia performed strongly. Generated large rises in revenue and profit in local currency terms. Reported double-digit growth in same-store sales on strong sales of down, knitwear and other Winter items, as well as sweat wear, loungewear and other items that fulfilled customers' stay-at- home needs.

・E-commerce sales in Europe rose by approx. 80% on stronger digital marketing.

13

GU: 1Q Overview (1)

Revenue and profit rise. Slightly above plan

・Same−store sales rose on strong sales of products that either featured in TV ads, successfully captured mass fashion trends, or satisfied stay−at−home demand.

・Gross profit margin declined 0.6 point y/y, but this was roughly in line with plan because it was being compared to a strong improvement in previous year.

・SG&A ratio improved by the planned 1.2 points with personnel declining on more efficient store operations, and advertising declining on stronger cost controls.

	Yr to Aug. 2020	Yr to Aug. 2021
	(3 mths to	(3 mths to
	y/y
	Nov.2019)	Nov.2020)
Revenue	72.9	76.5	+4.9%
(to revenue)	100.0%	100.0%	-
Gross profit	37.0	38.4	+3.5%
(to revenue)	50.8%	50.2%	-0.6p
SG&A	24.6	24.9	+1.1%
(to revenue)	33.8%	32.6%	-1.2p
Business profit	12.4	13.4	+8.5%
(to revenue)	17.0%	17.6%	+0.6p
Other income, expenses	-0.0	0.1	-
(to revenue)	-	0.2%	-
Operating profit	12.3	13.6	+9.9%
(to revenue)	17.0%	17.8%	+0.8p

Billions of

Yen

14

GU: 1Q Overview (2)

・Launched TV ads for sweat-style knitwear and generated strong sales of new-feel knitwear items that combine the relaxing comfort of stretchable sweat wear with the high-quality feel of knitwear.

・Double-faced sweatshirts and chef's pants that successfully captured mass

fashion trends, and loungewear that fulfilled stay-at-home needs also sold well.

・E-commerce sales up approx. 40% y/y on buoyant O2O (online-to-offline) services that fuse physical stores and e-commerce, such as instore pickup of online purchases, and stronger conveyance of appealing GU information via apps.

Sweat-styleHigh-neck	Double-faced Pullover	Chef's Pants	Marshmallow Feel
Sweater ¥1,990	Parka ¥1,990	¥1,690	Lounge Set ¥2,490
(excluding tax)	(excluding tax)	(excluding tax)	(excluding tax)	15

Global Brands: 1Q Overview

Large revenue drop. Slight operating loss. Below plan

Primarily due to the large decline in Theory revenue and profit and wider Comptoir des Cotonniers loss caused by the continued heavy impact of COVID-19 in the US and Europe.

Theory: Falls short of plan to report large declines in revenue and profit

・Customer visits, mainly to department stores, declined due to COVID-19 and sales fell sharply in the US, Europe, and Japan. Gross profit margin declined on stronger discounting of Fall Winter items, resulting in losses from the US, Europe, and a lower profit level from Japan.

・Strong sales, primarily in Mainland China, resulted in higher revenue and profit from Asia.

PLST: Revenue and profit down. Slightly below plan

・Sales regained near previous year levels in September and October but slowed from mid- November following a resurgence of COVID-19.

・Operating profit declined on a stronger rundown of Fall Winter inventory. Comptoir des Cotonniers: Below plan. Large revenue fall, wider operating loss

・All stores were closed temporarily for approximately 1 month from end-October in France, where approx. 70% of the brand's stores are located.

		Yr to Aug. 2020	Yr to Aug. 2021		Billions of
		(3 mths to Nov.2019)	(3 mths to Nov.2020)			Yen
		y/y
		Actual	Actual
	Revenue	36.1	28.0	-22.3%
	Business profit	1.9	-0.3	-
Global Brands	(to revenue)	5.3%	-	-
Other income, expenses	-0.0	0.1	-
	Operating profit	1.8	-0.2	-		16
	(to revenue)	5.2%	-	-

Group: Balance Sheet (end Nov. 2020)

Billions of Yen

	End Nov.	End Aug.	End Nov.	Change
	2019	2020	2020
Total Assets	2,528.2	2,411.9	2,539.4	+11.1
Current Assets	1,776.0	1,655.1	1,763.3	-12.6
Non-Current	752.2	756.7	776.0	+23.8
Assets
Total Liabilities	1,494.0	1,415.9	1,500.4	+6.3
Total Equity	1,034.2	996.0	1,039.0	+4.8

17

Group: B/S Main Points v.end Nov. 2019

Current assets: −¥12.6bln (¥１.7760trln⇒¥１.7633trln)

・Inventory assets: −¥20.5bln (¥424.6bln⇒¥404.1bln)

UQ Japan: +¥0.6bln: Inventory of Fall items increased.

UQ Intl: −¥20.4bln：

✓Greater China: Large drop as strong sales helped run down inventory.

✓S. Korea: Large drop on restricted stock orders.

✓N. America: Lower but feel excessive given current sales trends. Normalize through 2021

Fall Winter.

✓S/SE Asia & Oceania, Europe: Up. Expect to achieve appropriate level by 2021 Fall Winter.

GU: +¥0.5bln: Winter inventory fell but Fall and other inventories rose slightly.

Global Brands: −¥1.3bln

・Derivative financial assets: −¥8.4bln (¥16.9bln⇒¥8.5bln)

While the average yen rate on our forward contract holdings and the end-November yen spot rate both appreciated, the gap between the two shrank, resulting in a ¥30.7bln decline in derivative financial assets. Hedge accounting so no impact on P&L.

・Cash and cash equivalents: +¥39.5bln (¥1.1150trln⇒¥1.1546trln)

Increased operating cash flow from UNIQLO and other business segments.

Non-current assets: +¥23.8bln (¥752.2bln⇒¥776.0bln)

・Right-of-use assets: +¥19.5bln (¥389.8bln⇒¥409.3bln)

Higher right-of-use assets on global flagship stores and distribution warehouses.

・Derivative financial assets: −¥22.3bln (¥26.1bln⇒¥3.8bln)

18

Group: 1Q Cash Flow

+¥61.0bln

+¥140.3bln

-¥19.2bln

-¥58.6bln

-¥1.3bln

¥1.1546trln

¥1.0935trln

Cash used in

Cash used in

investing

Effect of

Cash flow from

activities

financing

exchange rate

operating

activities

changes on

activities

cash and cash

equivalents

Opening balance of

cash and cash

equivalents

• Acquisition of property, plant and equipment -¥14.2bln (new stores, warehouses, Ariake office, etc.)
• Systems−related investment, etc. -¥3.2bln

Capital expenditure ¥30.9bln

・UQ Japan: ¥3.6bln (new stores, warehouses, etc.)

・UQ Intl: ¥9.9bln (new stores, warehouses, etc.)

・GU: ¥0.7bln (new stores)

・Global Brands: ¥0.6bln (new stores)

・Systems, etc.: ¥15.9bln (warehouses, IT, Ariake office, etc.)

Closing balance of

cash and cash

equivalents

September 1, 2020

November 30, 2020

19

Group: FY2021 Estimates

Unchanged from initial estimates

Higher-than-expected 1Q results means 1H performance currently

tracking higher than planned

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

	Yr to Aug. 2019	Yr to Aug. 2020	Yr to Aug. 2021
	Actual	Actual	Estimates
	(as of Jan.14)
	y/y
Revenue	2,290.5	2,008.8	2,200.0	+9.5%
(to revenue)	100.0%	100.0%	100.0%	-
Business profit	265.1	170.0	265.0	+55.9%
(to revenue)	11.6%	8.5%	12.0%	+3.5p
Other income, expenses	-7.5	-20.6	-20.0	-
Operating profit	257.6	149.3	245.0	+64.0%
(to revenue)	11.2%	7.4%	11.1%	+3.7p
Finance income, costs	-5.1	3.5	0.0	-
Profit before income taxes	252.4	152.8	245.0	+60.3%
(to revenue)	11.0%	7.6%	11.1%	+3.5p
Profit attributable to owners	162.5	90.3	165.0	+82.6%
of the parent
(to revenue)	7.1%	4.5%	7.5%	+3.0p

Yr to Aug. 2021

1Q Actual

619.7

100.0%

111.5

18.0%

1.5

113.0

18.2%

-5.9

107.1

17.3%

70.3

11.4%

Billions of

Yen

20

FY2021 1H Estimates by Group Operation(1)

UNIQLO Intl.: Expect 1H revenue fall. Below plan despite

expected large rise in operating profit

1Q: Slight downturn in revenue, operating profit largely in line with plan.

2Q: Revenue and operating profit are trending below plan on COVID-19 spread.

Greater China

・December revenue up and largely to plan. Predict higher-than-expected 1H revenue gain and large profit rise.

South Korea

・1H revenue forecast to fall, but operating profit still expected to move back into the black on improved gross profit margin and SG&A ratio.

South Asia, Southeast Asia & Oceania

・Just under 20% of stores, primarily in Malaysia, have been temporarily closed since December, so revenue and profit are both trending below plan. Expect large 1H declines in revenue and profit and the operation to fall far short of plan.

・Still, Vietnam remains strong. December sales continue to outstrip estimates.

North America

・Further below-plan performance on severe COVID-19 situation in the US and temporary closure of roughly half our stores from end-November to early February. Expect larger-than-planned 1H loss.

Europe

・Strong year-on-year sales gains in France and Russia from December.

・Below-plan performance in UK, Germany, Spain, the Netherlands, Denmark, and Italy, with nearly all stores temporarily closed from late December through January or even February.

・Expect region to fall short of plan by reporting large 1H revenue and profit falls.	21

FY2021 1H Estimates by Group Operation(2)

UNIQLO Japan: Expect 1H to exceed plan

on revenue rise and sharp profit gain

・1Q far exceeded expectations. Operation continuing roughly to plan from December. 1H expected to outperform and report rising revenue, large profit gain.

・2Q gross profit margin expected to fall short of plan on stronger discounting of excess inventory, but 1H gross profit margin expected to improve y/y as planned.

・Expect 1H SG&A to improve more than planned as sales continue to outperform.

GU: Expect a steady 1H performance y/y as planned

・1Q performance was slightly higher than expected.

・While performance from December has been roughly in line with plan, 1H performance expected to be steady y/y as planned on a stronger rundown of inventory at the end of the season.

Global Brands: Expect to fall below plan by reporting large revenue and profit declines

・1Q fell short of plan. 2Q performance at Theory, Comptoir des Cotonniers and
other brands trending below plan on spreading COVID-19 pandemic.	22

Reference:GroupCompanyStoreNumbers

[Units: Stores]		FY2020	FY2021 1Q Result (Sep. - Nov.)		FY2021 Estimates (Sep. - Aug.)
					Yr-end	Open		Close		Change		End Nov.		Open		Close			Change		End Aug.
UNIQLO Operations	2,252		59	13	+46	2,298	185	90	+95	2,347
	UNIQLO Japan ※	813		7	5	+2	815	30	30	0	813
		Own stores	767		5	5	0	767	-	-	-	-
		Franchise stores		46		2		0		+2		48		-		-			-		-
	UNIQLO International	1,439		52	8	+44	1,483	155	60	+95	1,534
		Mainland China	767		28	4	+24	791	100	-	-	-
		Hong Kong		31		1		1		0		31		-			-
		Taiwan		68		2		0		+2		70				-			-
		Korea		163		2		1		+1		164		2		-			-		-
		Singapore		25		2		1		+1		26				-			-
		Malaysia		50		1		0		+1		51				-			-
		Thailand		51		2		1		+1		52				-			-
		Philippines		60		1		0		+1		61	40		-			-	-
		Indonesia	32		3	0	+3	35	-	-
		Australia		23		2		0		+2		25				-			-
		Vietnam		4		2		0		+2		6				-			-
		India		3		2		0		+2		5				-			-
		USA		50		1		0		+1		51	3		-			-	-
		Canada	12		1	0	+1	13	-	-
		UK			15		0		0		0		15				-			-
		France		22		0		0		0		22				-			-
		Russia		42		0		0		0		42				-			-
		Germany		9		1		0		+1		10				-			-
		Belgium		3		0		0		0		3	10		-			-	-
		Spain	4		0	0	0	4	-	-
		Sweden		2		0		0		0		2				-			-
		The Netherlands		1		1		0		+1		2				-			-
		Denmark		1		0		0		0		1				-			-
		Italy		1		0		0		0		1				-			-
GU		436		6	6	0	436	22	11	+11	447
Global Brands	942		11	6	+5	947	28	74	-46	896
	Theory	※	460		5	1	+4	464	-	-	-	-
	PLST	※		102		3		2		+1		103		-		-			-		-
	Comptoir des Cotonniers ※		260		1		1		0		260		-		-			-		-
	Princesse tam.tam ※		119		2		2		0		119		-		-			-		-
	J Brand		1		0		0	0	1		-		-	-	-
			Total	3,630		76	25	+51	3,681	235	175	+60	3,690

Note: Excludes Mina (Commercial Facility Business) and Grameen UNIQLO stores.

※Includes franchise stores

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Reference: Foreign Exchange Rates

Exchange rates used in consolidated accounts

Yen

FY2020 1Q 3-month average to Nov. 2019

FY2021 1Q 3-month average to Nov. 2020

FY2020 12-month average to Aug. 2020

FY2021 (E) 12-month average to Aug. 2021

1USD	1EUR	1GBP	1RMB	100KRW
107.8	119.0	134.3	15.2	9.1
105.3	123.9	137.3	15.5	9.1
108.0	120.1	136.7	15.3	9.0
107.0	116.0	133.0	15.1	8.8

Exchange rates used on balance sheet			Yen
			1USD	1EUR	1GBP	1RMB	100KRW
FY2020 1Q	Exchange rate at end Nov.2019	109.6	120.6	141.5	15.6	9.3
FY2021 1Q	Exchange rate at end Nov.2020	103.9	124.4	138.5	15.8	9.4
FY2020 Exchange rate at end Aug. 2020	105.4	125.5	140.7	15.4	8.9
FY2021 (E) Exchange rate at end Aug. 2021	105.4	125.5	140.7	15.4	8.9

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Reference: Capex, Depreciation

Capex and Depreciation

Billions of Yen

					Capex
		UNIQLO	UNIQLO		Global	Systems,		Depreciation
		GU	Total
		Japan	Intl.	Brands	etc
FY2020	1Q 3 months	3.7	7.9	2.0	0.5	9.4	23.6	43.0
FY2021	1Q 3 months	3.6	9.9	0.7	0.6	15.9	30.9	44.5
FY2020	Full-year 12 months	17.8	23.5	8.5	2.4	30.4	82.7	177.8
FY2021 (E)	Full-year 12 months	13.4	38.9	3.3	2.0	32.5	90.2	187.8

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