October 15, 2020 1 Fast Retailing Results for FY2020 and Estimates for FY2021 Takeshi Okazaki Fast Retailing Co., Ltd. Group Senior Executive Officer & CFO Contents Ｉ． Results for FY2020 P3 ～ P21 ＩＩ． Estimates for FY2021 P22 ～ P27 ＩＩＩ．Reference P28 ～ P30 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 o ...

Financial Performance - Total revenue for the first three quarters of FY2020 was ¥1,544.924 billion, a decrease of 15.2% compared to the same period last year[9]. - Operating profit for the same period was ¥132.383 billion, down 46.6% year-on-year[9]. - Profit attributable to owners of the parent for the quarter was ¥90.640 billion, a decline of 42.9% compared to the previous year[9]. - Japan UNIQLO's revenue for the first three quarters of the fiscal year was ¥598.8 billion, a decrease of 14.6% year-on-year, with operating profit down 18.1% to ¥79.1 billion[10]. - Overseas UNIQLO's revenue for the first three quarters was ¥673.5 billion, down 17.9%, with operating profit declining 58.5% to ¥51.8 billion[11]. - GU's revenue for the first three quarters was ¥187.4 billion, a slight increase of 1.1%, while operating profit fell 22.2% to ¥20.4 billion[12]. - Global Brands' revenue for the first three quarters was ¥83.3 billion, a decrease of 26.7%, resulting in an operating loss of ¥6.0 billion[13]. - The company reported a decrease in pre-tax profit to ¥142.4 billion, down by ¥104.7 billion year-over-year[16]. - The company reported a net profit of ¥91,475 million for the nine months ended May 31, 2020, compared to ¥173,993 million for the same period in 2019, indicating a decline of about 47%[40]. - For the nine months ended May 31, 2020, the company reported a net profit of ¥90,640 million, compared to ¥247,211 million for the same period in 2019, indicating a significant decline[47]. Impairment and Losses - The company recorded an impairment loss of ¥15.2 billion on property, plant, and equipment due to poor performance of loss-making stores[9]. - Impairment losses for the nine months ended May 31, 2020, totaled ¥15,296 million, significantly higher than the ¥2,050 million recorded for the same period in 2019[72][75]. - The company reported a significant increase in impairment losses related to right-of-use assets, amounting to ¥11,732 million for the nine months ended May 31, 2020[74]. - The impairment losses primarily stemmed from declining profitability of several stores, including flagship locations, due to the pandemic[75][76]. Cash Flow and Assets - The net cash generated from operating activities was ¥173.122 billion for the nine-month period[6]. - As of May 31, 2020, total assets amounted to ¥2,337,738 million, an increase from ¥2,010,558 million as of August 31, 2019, representing a growth of about 16.1%[35]. - Cash used in investing activities was ¥70 billion, a decrease of ¥3.4 billion or 4.7% year-over-year[17]. - Cash used in financing activities increased to ¥149.4 billion, up by ¥54.7 billion or 57.8% year-over-year[18]. - The company’s cash and cash equivalents at the end of the period were ¥1,045,734 million, a decrease from ¥1,105,085 million at the beginning of the period, representing a net decrease of ¥40,785 million[47]. Market Expansion and Strategy - The company aims to expand its overseas UNIQLO and GU businesses, focusing on major cities and flagship stores[9]. - The overseas UNIQLO business is currently in a growth phase, particularly in Greater China and Southeast Asia[9]. - The company plans to establish itself as the world's leading apparel retail manufacturer through digital consumer retail initiatives[9]. - The company plans to continue expanding its market presence and investing in new product development to drive future growth[40]. - The company plans to continue expanding its UNIQLO and GU brands both domestically and internationally, focusing on enhancing its online retail presence[48]. COVID-19 Impact - In the third quarter, revenue dropped by 35.5% year-on-year, and operating profit fell by 74.0% due to COVID-19 impacts, with 311 out of 813 stores temporarily closed[10]. - In the third quarter, all regions experienced significant declines in revenue and profit due to COVID-19, but online sales showed growth due to promotional measures[11]. - The company has been actively supporting communities during the pandemic, donating millions of masks and protective gear to healthcare institutions[14]. - The company anticipates that the impact of COVID-19 will continue until at least August 2021, affecting store operations and profitability[75]. - The impact of COVID-19 on the group's performance is expected to persist until August 2021, with gradual recovery anticipated from June 2020[64]. Financial Reporting and Standards - The group has adopted IFRS 16 "Leases" starting from the first quarter of the fiscal year, with no restatement of prior period information[52]. - The accounting treatment for leases includes recognizing right-of-use assets and lease liabilities for leases other than short-term and low-value asset leases[54]. - The group’s financial statements are prepared in accordance with International Accounting Standards, ensuring compliance with all relevant standards[50]. - The interim financial statements for the nine months ended May 31, 2020, were approved by the Chairman and CFO on July 10, 2020[49]. - The group has clarified the accounting treatment for uncertainties in income tax under IFRIC 23[51].

Financial Performance - Total revenue for the six-month period ending February 29, 2020, was ¥1,208,512 million, a decrease of 4.7% compared to the previous year[6]. - Operating profit for the same period was ¥136,736 million, down 20.9% year-on-year[6]. - Profit attributable to owners of the parent for the six-month period was ¥100,459 million, a decrease of 11.9% compared to the previous year[6]. - Japan UNIQLO's revenue for the first half of the fiscal year was 463.5 billion JPY, a decrease of 5.7% year-on-year, while profit increased by 5.7% to 71.6 billion JPY[10]. - Overseas UNIQLO's revenue decreased by 6.7% year-on-year to 541.2 billion JPY, with profit dropping significantly by 39.8% to 53.2 billion JPY, primarily due to COVID-19 impacts[11]. - The company reported a pre-tax profit of ¥150.8 billion, a decrease of ¥23.3 billion compared to the previous year[17]. - The company reported a gross profit of ¥576,790 million for the six months ended February 29, 2020, down from ¥606,773 million in the previous year, a decrease of approximately 4.9%[41]. - The company reported a net profit attributable to owners of the parent of ¥100,459 million for the six months ended February 29, 2020, compared to ¥114,029 million in the previous period[94]. Assets and Liabilities - The total assets as of February 29, 2020, amounted to ¥2,454,296 million, an increase from ¥2,015,201 million the previous year[6]. - Total liabilities increased to 1,389.5 billion JPY, up by 362.4 billion JPY, primarily due to an increase in lease liabilities[15]. - The total equity attributable to the parent company as of February 28, 2019, was ¥862,936 million, up from ¥902,777 million, showing a decrease of about 4.4%[47]. - The company’s total liabilities decreased from ¥473,442 million as of August 31, 2019, to ¥469,262 million as of February 29, 2020[96]. Cash Flow - The net cash generated from operating activities was ¥236,680 million, compared to ¥230,899 million in the previous year[6]. - The net cash generated from operating activities for the six months ended February 29, 2020, was ¥236.6 billion, an increase of ¥5.7 billion or 2.5% compared to the same period last year[17]. - The net cash used in investing activities for the six months ended February 29, 2020, was ¥58.8 billion, a decrease of ¥0.8 billion or 1.4% compared to the same period last year[18]. - The net cash used in financing activities for the six months ended February 29, 2020, was ¥99.1 billion, an increase of ¥35.9 billion or 56.9% compared to the same period last year[19]. - Cash and cash equivalents as of February 29, 2020, were 1,184.3 billion JPY, reflecting an increase of 97.7 billion JPY from the previous fiscal year-end[16]. Market Expansion and Strategy - The company aims to expand its overseas UNIQLO and GU businesses, focusing on major cities and flagship stores[9]. - The company plans to continue expanding its UNIQLO and GU brands both domestically and internationally, focusing on enhancing product offerings and market presence[53]. - The company plans to invest a total of ¥2,085 million in the UNIQLO TOKYO store, with a planned completion date in May 2020[23]. Impact of COVID-19 - The company is experiencing significant revenue and profit declines in South Korea and Greater China due to COVID-19[9]. - Due to the COVID-19 pandemic, the company temporarily closed all 28 stores in Singapore starting April 7, 2020, and other stores across various countries, impacting overall business operations[101]. - The company has not been able to reasonably estimate the financial impact of the COVID-19 pandemic on its operations for the fiscal year due to the uncertainty surrounding the situation[101]. Shareholder Information - As of February 29, 2020, the total number of issued shares was 106,073,656[27]. - Major shareholders include Tadashi Yanai with 21.59% ownership and The Master Trust Bank of Japan, Ltd. with 19.69% ownership[29]. - The company holds 3,991,435 treasury shares, accounting for 3.76% of the total issued shares[36]. Financial Reporting and Standards - The company’s financial statements are prepared in accordance with international accounting standards[36]. - Deloitte Touche Tohmatsu LLC reviewed the quarterly and interim financial statements for the three and six months ended February 29, 2020[37]. - Management is responsible for preparing and presenting the interim condensed consolidated financial statements in accordance with IFRS 34[105].

Financial Performance - Total revenue for the first quarter of FY2020 was ¥623.48 billion, a decrease of 3.3% year-on-year[5]. - Operating profit for the same period was ¥91.69 billion, down 12.4% compared to the previous year[5]. - Gross profit margin was 50.2%, a decline of 0.2 percentage points year-on-year[7]. - Net profit attributable to the parent company was ¥70.91 billion, a decrease of 3.5% year-on-year[5]. - Revenue from the Japan UNIQLO segment was ¥233 billion, a decline of 5.3% year-on-year[8]. - Online store sales in Japan reached ¥24.7 billion, an increase of 4.1% year-on-year[8]. - The net profit before tax for the quarter was ¥102 billion, down 8.2% year-on-year[7]. - Overseas UNIQLO revenue for Q1 was ¥280.7 billion, a decrease of 3.6% year-on-year, with operating profit down 28.0% to ¥37.8 billion[9]. - The Greater China region saw revenue and profit growth before currency effects, but operating profit declined due to RMB depreciation and lower profits in Hong Kong[9]. - Online sales in mainland China achieved approximately 30% revenue growth, continuing a strong trend[9]. - GU division reported Q1 revenue of ¥72.9 billion, an increase of 11.4%, and operating profit of ¥12.3 billion, up 44.4%[10]. - Global Brands division revenue for Q1 was ¥36.1 billion, down 11.4%, with operating profit declining 31.5% to ¥1.8 billion[11]. Cash Flow and Assets - The cash and cash equivalents at the end of the period were ¥1,115.03 billion[5]. - The company reported a net cash inflow from operating activities of ¥97.65 billion[5]. - Operating cash flow for the three months ending November 30 was ¥97.6 billion, an increase of 224.0% year-on-year[15]. - Total assets as of November 30 were ¥2,528.2 billion, an increase of ¥517.7 billion from the previous fiscal year-end[12]. - Total liabilities increased to ¥1,494.0 billion, up ¥467.0 billion from the previous fiscal year-end[13]. - Cash and cash equivalents increased to ¥1,115.0 billion, up ¥28.5 billion from the previous fiscal year-end[14]. Sustainability Initiatives - The company is focusing on sustainability initiatives, including recycling down jackets and using recycled polyester for new products[12]. Stock Options and Shares - As of November 30, 2019, the total number of issued shares was 106,073,656[24]. - The company issued stock options for 3,548 shares to employees, with an exercise period from November 8, 2022, to November 7, 2029[26]. - The company granted stock options to 528 employees and 1,389 employees of its subsidiaries, totaling 37,424 stock options[29]. - The exercise price for the stock options is set at 1 Japanese Yen per share, with a fair value of 66,733 Yen at the grant date[29]. - The company emphasizes that unexercised stock options will become invalid in the event of a reorganization[30]. Financial Statements and Accounting Standards - The company's financial statements have been prepared in accordance with international accounting standards[37]. - Deloitte Touche Tohmatsu LLC has reviewed the quarterly financial statements for the three-month period ending November 30, 2019[38]. - The company has adopted IFRS 16 "Leases" starting from the first quarter of the fiscal year, affecting the accounting treatment of leases[55]. - The adoption of IFRS 16 resulted in the recognition of right-of-use assets amounting to ¥368,714 million and an increase in lease liabilities of approximately ¥420,488 million[63]. Dividends - The company paid dividends amounting to ¥24,484 million in the three months ended November 30, 2018, and the same amount was recorded in 2019[46]. - For the three-month period ending November 30, 2019, total dividends paid increased slightly to ¥24,494 million, maintaining the per share dividend at ¥240[76]. Market Expansion and Future Growth - The company aims to expand its overseas UNIQLO and GU businesses, focusing on major cities and flagship stores[7]. - The company plans to focus on market expansion and new product development to drive future growth[40].

Financial Performance - Total revenue for the fiscal year 2018/19 reached ¥2,290,548 million, an increase of 7.5% compared to the previous year[7]. - Operating profit for the same period was ¥257,636 million, reflecting a growth of 9.1% year-over-year[7]. - Profit attributable to owners of the parent company was ¥162,578 million, up 5.4% from the prior year[7]. - The total comprehensive income for the fiscal year ending August 31, 2019, was ¥2,290.5 billion, representing a 7.5% increase year-over-year[51]. - The operating profit for the same period was ¥257.6 billion, a year-over-year increase of 9.1%, marking the best performance in history[51]. - The total revenue for the overseas UNIQLO segment reached ¥1,026.0 billion, a 14.5% year-over-year increase, with operating profit rising by 16.8% to ¥138.9 billion[53]. - The revenue from the Greater China region amounted to ¥502.5 billion, reflecting a 14.3% year-over-year growth, while operating profit increased by 20.8% to ¥89.0 billion[54]. - The total revenue for the global brand segment was ¥149.9 billion, a year-on-year decrease of 2.9%, while operating profit was ¥3.6 billion, compared to a loss of ¥4.1 billion in the previous year[56]. Assets and Liabilities - The total assets increased to ¥2,010,558 million, marking a rise of 2.9% compared to the previous fiscal year[7]. - Total assets increased to ¥1,054,758 million, up 6.2% from ¥993,413 million in the previous year[9]. - Total liabilities decreased by ¥23.6 billion to ¥1,027.0 billion, primarily due to a reduction in trade and other payables[70]. - Total net assets increased by ¥80.7 billion to ¥983.5 billion, driven by an increase in retained earnings[71]. Employee and Operational Metrics - The number of employees rose to 56,523, an increase of 7.3% year-over-year[7]. - The total number of employees across all divisions was 56,523 as of August 31, 2019, reflecting an increase due to new store openings[28]. - The average number of employees was 105,588, with sales per employee reaching 16,899 thousand yen, a 1.6% increase from the previous year[65]. - The total number of UNIQLO sales units in Japan was 841,600, which is a slight increase from 834,941 units in the previous year[63]. Cash Flow and Investments - Cash and cash equivalents at the end of the fiscal year stood at ¥1,086,519 million, up from ¥999,697 million in the previous year[7]. - Operating cash flow for the year ended August 31, 2019, was ¥300.5 billion, an increase of 70.4% compared to the previous year, driven by a decrease in inventory by ¥38.1 billion[59]. - Investment cash flow for the year ended August 31, 2019, was a net outflow of ¥78.7 billion, an increase of 37.7% from the previous year, primarily due to purchases of property, plant, and equipment totaling ¥41.5 billion[60]. - The total comprehensive capital investment for the fiscal year was ¥85.2 billion, an increase of ¥15.8 billion compared to the previous year[51]. Market Expansion and Strategy - The company plans to continue expanding its market presence and investing in new product development[7]. - The overseas UNIQLO business is a key growth driver, with plans to significantly expand new store openings in Greater China, Southeast Asia, and Oceania, while aiming for profitability in the U.S. market[36]. - The company aims to expand its e-commerce business and open flagship stores in major cities globally as part of its mid-term vision to become the world's leading apparel retail manufacturer[51]. - Fast Retailing aims to enhance its operational efficiency and explore potential mergers and acquisitions to drive growth[7]. Sustainability and Corporate Governance - The company is committed to addressing sustainability challenges in the apparel industry, focusing on labor conditions, environmental protection, and corporate governance[39]. - The company established a Human Rights Committee in July 2018 to address human rights issues throughout the supply chain[58]. - The company aims to implement a new technology in denim production that significantly reduces water usage by 2020 across all brands[57]. - The company has partnered with the UN Women to improve the status of women in the apparel industry as part of its sustainability efforts[57]. Risks and Challenges - The company faces risks related to management personnel, competition, reliance on specific geographic production locations, and potential adverse effects from acquisitions[40][41][42][43][44]. - Currency risk is a concern, as most products imported through UNIQLO are priced in USD, which could impact long-term operational performance if exchange rates fluctuate significantly[46]. - The company is subject to various regulatory risks, including product liability and consumer protection laws, which could negatively affect its operations and customer trust[48]. Stock Options and Shareholder Information - The company has a total of 106,073,656 issued ordinary shares as of August 31, 2019[89]. - Major shareholders include Masahiro Yanai with 22,037 thousand shares (21.59%) and The Master Trust Bank of Japan, Ltd. with 21,012 thousand shares (20.59%) as of August 31, 2019[117]. - The total number of shares held by the top ten shareholders amounts to 83,841 thousand shares, representing 82.15% of the total issued shares[117]. - The total dividend for the fiscal year is 480 JPY, an increase of 40 JPY from the previous year, consisting of an interim dividend of 240 JPY and a final dividend of 240 JPY[131]. Governance and Management - The board consists of nine members, including five external directors, ensuring a majority of independent oversight[135]. - The company has established various committees, including the Human Resources Committee and the Sustainability Committee, to enhance governance and address key organizational changes and sustainable development policies[136][137]. - The company emphasizes transparency in management through the Disclosure Committee, which held 15 meetings in the fiscal year to ensure timely and accurate information disclosure[138]. - The company has a robust internal control system, with external auditors actively participating in board discussions to enhance oversight[135].

Financial Performance - Total revenue for the first three quarters of the fiscal year 2019 reached ¥1,822.877 billion, a 7.0% increase compared to the same period last year[7] - Operating profit for the same period was ¥247.688 billion, reflecting a 3.7% year-on-year growth[7] - Profit before tax recorded ¥247.211 billion, up 4.1% from the previous year[7] - Net profit attributable to the parent company was ¥158.668 billion, marking a 7.0% increase year-on-year[7] - Basic earnings per share for the nine-month period were ¥1,554.94, compared to ¥1,454.29 in the previous year[7] - The company reported a gross profit of ¥892,677 million for the nine months ended May 31, 2019, compared to ¥850,393 million for the same period in 2018, indicating a growth of approximately 5%[39] - The company reported a net income of ¥158,668 million for the nine months ended May 31, 2019, compared to ¥148,335 million for the same period in 2018, representing a growth of 6.5%[48] - For the three months ended May 31, 2019, the profit was ¥49,062 million, an increase of 3.1% compared to ¥47,608 million for the same period in 2018[44] Revenue Breakdown - UNIQLO Japan's revenue for the first three quarters was 701 billion JPY, a slight decrease of 0.5% year-on-year, with operating profit at 96.7 billion JPY, down 19.5%[12] - UNIQLO Overseas reported revenue of 820.5 billion JPY for the first three quarters, an increase of 14.6%, with operating profit at 124.8 billion JPY, up 11.1%[13] - GU's revenue for the first three quarters was 185.3 billion JPY, an increase of 11.2%, with operating profit at 26.3 billion JPY, up 74.5%[14] - The Greater China region generated ¥402,594 million in revenue, accounting for 22.1% of total revenue[78] Assets and Liabilities - The total assets increased to ¥1,974.493 billion from ¥1,648.823 billion year-on-year[7] - Total liabilities were 964.3 billion JPY, a decrease of 86.3 billion JPY, with net assets totaling 1,010.1 billion JPY, an increase of 107.4 billion JPY[17] - Cash and cash equivalents at the end of the period were ¥1,105.085 billion, an increase from ¥858.359 billion at the end of the previous fiscal year[7] - Total assets as of May 31, 2019, amounted to ¥1,974,493 million, a slight increase from ¥1,953,466 million as of August 31, 2018[37] - Total liabilities decreased to ¥964,303 million as of May 31, 2019, from ¥1,050,688 million as of August 31, 2018[37] Cash Flow - Operating cash flow for the nine months ended May 31, 2019, was ¥286.2 billion, an increase of ¥28 billion or 10.9% year-over-year[19] - Investment cash flow for the same period was a net outflow of ¥73.5 billion, up ¥37.6 billion or 105.0% year-over-year[20] - Financing cash flow for the nine months ended May 31, 2019, was a net outflow of ¥94.7 billion, an increase of ¥51.6 billion or 119.7% year-over-year[21] - The net cash generated from operating activities was ¥286,216 million, compared to ¥258,122 million for the previous year, indicating an 11% growth[50] Strategic Initiatives - The company aims to expand its overseas UNIQLO and GU brands, focusing on the Greater China region and Southeast Asia for growth[11] - The company plans to open flagship and large stores in major cities worldwide to enhance UNIQLO's brand position[11] - The company continues to focus on becoming the world's leading apparel retail manufacturer as part of its mid-term vision[11] - The company plans to continue expanding its market presence and investing in new product development to drive future growth[78] Dividends and Shareholder Returns - The company paid cash dividends totaling ¥48.9 billion, an increase of ¥10.7 billion year-over-year[21] - Total dividends paid for the nine-month period ending May 31, 2019, amounted to ¥24,492 million, with a dividend per share of ¥240[76] Inventory and Impairment - Inventory decreased by ¥144.6 billion compared to an increase of ¥129.8 billion in the previous year[19] - The company reported a loss from impairment of ¥2,050 million, a significant decrease from ¥10,353 million in the previous year, indicating improved asset management[50] - As of May 31, 2019, inventory write-downs to net realizable value were ¥5,046 million, up from ¥4,082 million as of May 31, 2018[68] Other Financial Metrics - The company experienced a foreign exchange loss of ¥5,755 million for the nine-month period ending May 31, 2019, compared to a loss of ¥4,764 million in the previous year[83] - The company’s total financing costs increased to ¥9,268 million for the nine-month period ending May 31, 2019, from ¥6,836 million in the previous year[83] - The company recognized an impairment loss of ¥10,353 million for the nine months ended May 31, 2018, primarily related to the COMPTOIR DES COTONNIERS business[71]

Financial Performance - Total revenue for Q1 2019 was ¥644.66 billion, an increase of 4.4% year-over-year[7] - Operating profit for Q1 2019 was ¥104.67 billion, a decrease of 8.1% year-over-year[7] - Profit attributable to owners of the parent for Q1 2019 was ¥73.48 billion, a decrease of 6.4% year-over-year[7] - Revenue from the Japan UNIQLO segment was ¥246.1 billion, a decrease of 4.3% year-over-year[8] - Overseas UNIQLO revenue for Q1 reached ¥291.3 billion, a year-on-year increase of 12.8%, with operating profit at ¥52.5 billion, up 12.6%[9] - GU's Q1 revenue was ¥65.4 billion, a year-on-year increase of 7.7%, but operating profit decreased by 4.9% due to increased advertising expenses[10] - Global Brands segment revenue for Q1 was ¥40.7 billion, up 1.8%, while operating profit fell by 9.9%[11] - Total revenue for the three months ended November 30, 2018, was ¥644,466 million, with a year-over-year increase of 4.5%[62] - Operating profit for the same period was ¥104,665 million, reflecting a 3.4% increase compared to the previous year[62] - Revenue from UNIQLO Japan was ¥246,140 million, accounting for 38.2% of total revenue[70] - The Greater China region generated ¥134,848 million in revenue, representing 20.9% of total revenue[70] Cash Flow and Financial Position - Cash and cash equivalents at the end of the period were ¥979.09 billion[4] - Operating cash flow for the three months ended November 30, 2018, was ¥30.1 billion, a decrease of 74.9% year-over-year[15] - Investment cash flow for the same period was a net outflow of ¥31.1 billion, an increase of 478.8% year-over-year[16] - Net cash used in financing activities for the three months ended November 30, 2018, was ¥27.1 billion, an increase of ¥10.5 billion (63.5% year-over-year) compared to the same period in 2017[17] - Cash dividends paid amounted to ¥24.4 billion, an increase of ¥6.6 billion year-over-year[17] - The cash and cash equivalents at the end of the period were ¥979,087 million, down from ¥788,898 million at the end of the previous year[49] - The net cash used in financing activities increased to ¥27,144 million from ¥16,600 million in the previous year, indicating a higher outflow[49] - The company reported a net increase in cash and cash equivalents of ¥105,096 million, contrasting with a decrease of ¥20,609 million in the same period last year[49] Assets and Liabilities - As of November 30, 2018, total assets were ¥2,031.7 billion, an increase of ¥78.2 billion from the previous fiscal year-end[14] - Total liabilities as of November 30, 2018, were ¥1,050.4 billion, a slight decrease of ¥0.1 billion from the previous fiscal year-end[14] - Total assets decreased from ¥2,031,729 million on November 30, 2018, to ¥1,953,466 million on August 31, 2018, representing a decline of approximately 3.85%[37] - Total liabilities remained relatively stable, with a slight increase from ¥1,050,494 million on November 30, 2018, to ¥1,050,688 million on August 31, 2018[37] - Total equity decreased from ¥981,234 million on November 30, 2018, to ¥902,777 million on August 31, 2018, a decline of approximately 8%[37] Shareholder Information - The total number of issued shares was 106,073,656[23] - The major shareholder, Fast Retailing Co., Ltd., holds 4,053,800 shares, representing 3.82% of the total issued shares[34] - The total amount of dividends paid for the three months ended November 30, 2018, was ¥24,484 million, with a dividend per share of ¥240[67] Strategic Initiatives - The company aims to expand its UNIQLO and GU businesses internationally, focusing on major cities and flagship stores[7] - The US UNIQLO business is progressing towards profitability within the fiscal year[7] - The company plans to continue expanding its market presence and investing in new product development to drive future growth[39] - The company opened several new overseas UNIQLO stores, including the UNIQLO Manila Global Flagship Store in the Philippines and UNIQLO Köln in Germany, both opened in October 2018[19] - The company plans to expand its market presence through new store openings in key international locations[19] Environmental and Social Responsibility - The company aims to reduce water usage in denim processing by over 90% for certain products, with plans to implement this technology across all brands by 2020[12] - The company donated 17,700 items to earthquake victims in Hokkaido and approximately 90,000 items to Venezuelan refugees in Colombia[13] Accounting and Compliance - The financial statements have been prepared in accordance with the International Accounting Standards No. 34 for interim financial reporting[35] - The quarterly financial statements for the three-month period ending November 30, 2018, were reviewed by Deloitte Touche Tohmatsu LLC[36] - The company has adopted IFRS 9 and IFRS 15, which did not have a significant impact on the first quarter consolidated performance[57] Stock Options and Capital Management - The company granted stock options to 419 employees and 1,267 employees from subsidiaries, totaling 36,275 shares[27] - The exercise price for the stock options is set at 1 yen per share, with a fair value of 58,892 yen per share on the grant date[27] - The company will issue new stock options in the event of a reorganization, ensuring that holders of unexercised options receive equivalent rights in the new entity[29] - The total capital paid in relation to the stock options is 29,446 yen for the first plan and 29,882 yen for the second plan[27][29]