Financial Performance - Total revenue for the fiscal year 2020/21 reached ¥2,132,992 million, a 6.2% increase from the previous year[4] - Operating profit for the same period was ¥249,011 million, reflecting a significant recovery from ¥149,347 million in the previous year[4] - Profit attributable to owners of the parent company was ¥169,847 million, up from ¥90,357 million, marking an increase of 88%[4] - Earnings per share for the fiscal year was ¥1,663.12, compared to ¥885.15 in the previous year[4] - Net income for the same period was ¥175,286 million, up from ¥62,422 million in 2020, marking an increase of 181%[5] - The total comprehensive income for the year was ¥222,891 million, which includes other comprehensive income of ¥45,461 million, compared to ¥19,776 million in the previous year[150] - The company reported a significant increase in other income, which rose to ¥18,238 million from ¥7,954 million, reflecting a growth of approximately 129.5%[147] - The pre-tax profit for the year was ¥265.8 billion, reflecting a year-on-year increase of 73.9%, while net profit attributable to the parent company was ¥169.8 billion, an increase of 88.0%[39] Assets and Liabilities - The total assets of the company increased to ¥2,509,976 million, compared to ¥2,411,990 million in the previous year[4] - Total assets reached ¥1,100,398 million in 2021, compared to ¥1,063,356 million in 2020, reflecting a growth of 3.5%[5] - Total liabilities decreased to ¥1,347,678 million from ¥1,415,910 million, indicating a reduction of approximately 4.8%[146] - The company's equity increased to ¥1,162,298 million from ¥996,079 million, representing a growth of about 16.7%[146] - Cash and cash equivalents rose to ¥1,177,736 million from ¥1,093,531 million, an increase of approximately 7.7%[146] Employee and Workforce - The number of employees averaged 55,589, a decrease from 57,727 in the previous year[4] - The number of employees increased to 1,617 in 2021 from 1,589 in 2020, showing a growth in workforce[5] - The average age of employees in the company is 37 years and 8 months, with an average annual salary of ¥9,637,000[20] - The total number of employees across all divisions is 55,589, with 30,792 in overseas UNIQLO and 13,472 in Japan UNIQLO[19] Market Expansion and Operations - The company has expanded its market presence with the establishment of UNIQLO stores in various international locations since its inception in 1984[7] - UNIQLO opened its first global flagship store in New York's Soho, covering over 3,300 square meters[9] - The company opened its largest global flagship store in Ginza, Japan, in June 2020[10] - The overseas UNIQLO business is a key growth driver, with plans to accelerate store openings in Greater China, Southeast Asia, and Oceania, while North America aims to achieve profitability through cost structure reforms[28] - The company aims to expand its e-commerce and overseas UNIQLO business to achieve further growth, integrating e-commerce with physical stores for better customer insights and inventory management[22] Sustainability and Social Responsibility - The company has set a carbon reduction target for 2030 as part of its sustainability initiatives, focusing on addressing climate change and human rights issues within its supply chain[24] - The company is committed to creating a better society and future through its business activities, addressing pressing global issues such as climate change and inequality[22] - The company is actively promoting the "Ariake Project" to become a true digital retail enterprise, focusing on understanding customer needs and improving inventory management[25] - The company has initiated measures to support communities affected by COVID-19, including donations of protective gear and clothing[23] Corporate Governance - The board consists of nine members, including five external directors, enhancing the board's independence[91] - The company has established a liability limitation agreement with external directors and auditors, capping liability at 5 million yen or the higher amount prescribed by law[102] - The company has a directors' liability insurance policy that covers damages arising from claims against insured individuals, with certain exclusions for illegal profits and fraudulent actions[103] - The company has established a strict internal control system to ensure compliance with group policies and regulations, promoting ethical business practices across all subsidiaries[104] Financial Strategy and Investments - The company maintained a financial strategy focused on maximizing free cash flow while ensuring necessary growth investment and liquidity[53] - The total capital investment for the fiscal year was ¥100.6 billion, an increase of ¥17.9 billion compared to the previous year, with significant investments in automation warehouses related to the Ariake project[39] - The company plans to invest 34.3 billion yen in new store openings and 61.7 billion yen in logistics and IT investments for the fiscal year ending August 2022[55] Stock Options and Shareholder Information - The company operates a total of 300,000,000 shares, with 106,073,656 shares issued as of August 31, 2021[65][66] - The company has a policy of distributing high dividends based on performance, with mid-term and year-end dividends each being 240 yen[88] - The company has repurchased 3,928,900 shares, accounting for 3.70% of the total issued shares[85] - The total amount of dividends declared for the fiscal year is 24,511 million yen, with a dividend of 240 yen per share[89]

Financial Performance - Total revenue for the first three quarters of the fiscal year 2021 reached ¥1,698.1 billion, representing a 9.9% increase year-over-year[4] - Operating profit for the same period was ¥227.9 billion, a significant increase of 72.1% compared to the previous year[4] - Profit before tax for the first three quarters was ¥245.7 billion, reflecting a year-over-year growth of 72.5%[8] - Net profit attributable to the parent company for the quarter was ¥151.4 billion, up 67.0% year-over-year[8] - In Japan, UNIQLO's revenue for the first three quarters reached ¥675.1 billion, a year-on-year increase of 12.7%, with operating profit at ¥119.5 billion, up 51.0%[9] - Overseas, UNIQLO's revenue for the first three quarters was ¥739.6 billion, reflecting a year-on-year growth of 9.8%, and operating profit increased by 88.7% to ¥97.7 billion[10] - GU's revenue for the first three quarters amounted to ¥200.8 billion, a year-on-year increase of 7.1%, with operating profit rising 18.9% to ¥24.3 billion[11] - The global brand segment reported revenue of ¥80.5 billion, a decline of 3.3%, with operating loss widening to ¥8.9 billion from a loss of ¥6.0 billion in the previous year[12] - For the nine months ended May 31, 2021, the net cash used in investment activities was ¥657 billion, a decrease of ¥43 billion (6.2%) compared to the same period in 2020[16] - The company reported a significant increase in pre-tax profit for the overseas UNIQLO segment, reaching ¥121,920 million for the three months ended May 31, 2021, compared to a loss in the same period of the previous year[46] Cash Flow and Assets - Cash and cash equivalents at the end of the period amounted to ¥1,177.2 billion[4] - As of May 31, total assets were ¥2,492.2 billion, an increase of ¥80.2 billion from the previous fiscal year-end, driven by an increase in cash and cash equivalents by ¥83.6 billion[14] - Total liabilities decreased to ¥1,332.6 billion, down ¥83.2 billion from the previous fiscal year-end, primarily due to a reduction in trade and other payables by ¥31.7 billion[14] - Net assets increased to ¥1,159.6 billion, up ¥163.5 billion from the previous fiscal year-end, mainly due to retained earnings rising by ¥102.7 billion[14] - Operating cash flow for the nine months ended May 31 was ¥367.2 billion, an increase of 112.1% year-on-year, driven by pre-tax profit of ¥245.6 billion, up ¥103.2 billion[15] - The company’s cash flow projections are based on a discount rate of 8.7%, with cash flows estimated over a five-year period[52] Challenges and Impairments - The company recorded a net loss of ¥15.2 billion after accounting for impairment losses of ¥17.5 billion primarily in the overseas UNIQLO segment[8] - The company has implemented cost improvement measures to mitigate the impact of tax-inclusive pricing on gross margin, resulting in a slight decline of 0.5 percentage points in gross margin for the third quarter[9] - Despite strong sales of summer products, the company faced challenges in effectively communicating new product highlights, leading to performance below expectations[10] - The company recorded an impairment loss of ¥17,577 million primarily due to the decline in profitability of several stores, including flagship stores, as a result of the COVID-19 pandemic[52] - The company anticipates that the impact of COVID-19 will continue until at least the end of August 2021, affecting performance and leading to impairment losses[50] Future Outlook and Strategy - The company aims to expand its overseas UNIQLO and GU businesses, focusing on the Greater China and Southeast Asia markets[8] - The company continues to pursue its vision of becoming the world's leading apparel retail manufacturer as a "digital consumer retail enterprise"[8] - The company plans to continue focusing on market expansion and new product development to drive future growth[36] Shareholder Information - The company paid cash dividends of ¥18 billion to non-controlling interests, a decrease of ¥4 billion year-on-year[16] - The company paid a total dividend of ¥24,511 million for the nine months ended May 31, 2021, with a per-share dividend of ¥240[56] - As of May 31, 2021, the total number of issued shares was 106,073,656[20] - The company held 3,943,900 shares, representing 3.72% of the total issued shares[25] Financial Reporting and Compliance - The interim consolidated financial statements as of May 31, 2021, were prepared in accordance with International Accounting Standard 34, reflecting the financial position and performance of the group[74] - No significant issues were noted that would lead to a belief that the interim consolidated financial statements do not fairly present the group's financial situation[75] - The management is responsible for ensuring that the interim consolidated financial statements are prepared in accordance with International Accounting Standard 34 and reflect the group's financial position accurately[75] - The auditors conducted the review based on Japanese Certified Public Accountant standards, ensuring independence and adherence to ethical responsibilities[75] - The report was issued by Deloitte Touche Tohmatsu LLC on July 15, 2021, confirming the integrity of the financial statements reviewed[77]

Financial Performance - First Half FY2021 - Group revenue decreased slightly by 0.5% to ¥1.2028 trillion[8], compared to ¥1.2085 trillion in the previous year[8] - Gross profit increased by 4.1% to ¥600.4 billion[9], with the gross profit margin improving to 49.9%[9] from 47.7%[9] - Business profit increased significantly by 30.2% to ¥179.7 billion[9], with the business profit margin rising to 14.9%[9] from 11.4%[9] - Operating profit increased by 22.9% to ¥167.9 billion[9], with the operating profit margin improving to 14.0%[9] from 11.3%[8] - Profit attributable to owners of the parent increased by 5.4% to ¥105.8 billion[8], with a margin of 8.8%[8] compared to 8.3%[8] Segment Performance - First Half FY2021 - UNIQLO Japan's revenue increased by 6.2% to ¥492.5 billion[13], and operating profit increased by 36.6% to ¥97.8 billion[13] - UNIQLO International's revenue decreased by 3.6% to ¥521.8 billion[13], but operating profit increased significantly by 25.9% to ¥67.0 billion[13] - GU's revenue increased slightly by 0.3% to ¥132.6 billion[13], and operating profit increased by 0.4% to ¥15.8 billion[13] - Global Brands' revenue decreased significantly by 22.2% to ¥54.5 billion[13], resulting in an operating loss of ¥8.1 billion[13] Full Year FY2021 Estimates - The company revised its full-year revenue estimate upward to ¥2.2100 trillion[77], a 10.0% increase year-over-year[77] - The business profit estimate was also revised upward to ¥275.0 billion[77], a 61.7% increase year-over-year[77] - The operating profit estimate was revised upward to ¥255.0 billion[77], a 70.7% increase year-over-year[77] - Profit attributable to owners of the parent is estimated at ¥165.0 billion[77], an 82.6% increase year-over-year[77]

1 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 | | Contents | --- | --- | --- | --- | --- | |----------|-----------------------------|-------|-------|-------| | | | | | | | Ｉ． | Results Sep.–Nov. 2020 (1Q) | P ３ | ～ | P19 | | ＩＩ． | Estimates for Fiscal 2021 | P20 | ～ | P2 ...

Financial Performance - Total revenue for the first quarter of FY2021 was ¥619.7 billion, a decrease of 0.6% compared to the same period last year[5]. - Operating profit for the first quarter increased by 23.3% to ¥113.0 billion, despite a decline in revenue[7]. - Gross profit margin improved by 2.2 percentage points to 52.4% in the first quarter[7]. - Net profit attributable to the parent company was ¥70.4 billion, a decrease of 0.7% year-on-year[7]. - UNIQLO Japan's Q1 revenue reached ¥253.8 billion, an increase of 8.9% year-on-year, with operating profit rising by 55.8% to ¥60 billion[8]. - Same-store sales in Japan increased by 7.3%, driven by strong sales of homewear and seasonal items[8]. - Online store sales in Japan grew significantly by 48.3% to ¥36.7 billion[8]. - UNIQLO Overseas reported Q1 revenue of ¥260.6 billion, a decrease of 7.2%, while operating profit increased by 9.5% to ¥41.4 billion[9]. - The global brand segment reported Q1 revenue of ¥28 billion, down 22.3%, with an operating loss of ¥2 billion[11]. - For the three months ended November 30, 2020, the company reported revenues of ¥619,797 million, a slight decrease of 0.1% compared to ¥623,484 million for the same period in 2019[42]. - Operating profit decreased to ¥113,094 million, down 10.5% from ¥91,690 million year-over-year[42]. - The company reported a comprehensive income of ¥67,641 million for the three months ended November 30, 2020, compared to ¥110,125 million in the same period last year[43]. Assets and Liabilities - The total assets increased to ¥2,539.5 billion from ¥2,528.3 billion year-on-year[5]. - Cash and cash equivalents at the end of the period were ¥1,154.6 billion, up from ¥1,115.0 billion year-on-year[5]. - Total assets as of November 30, 2020, were ¥2,539,457 million, an increase from ¥2,411,990 million as of August 31, 2020[40]. - Total liabilities increased to ¥1,500,432 million from ¥1,415,910 million, indicating a rise in financial obligations[40]. - The company's equity totaled ¥1,039,025 million, up from ¥996,079 million, reflecting a growth in shareholder value[40]. Cash Flow - Operating cash flow for the three months ended November 30, 2020, was ¥1,403 billion, a 43.7% increase year-over-year[14]. - The net cash generated from operating activities was ¥140,334 million for the three months ended November 30, 2020, up from ¥97,650 million in the same period of 2019, indicating a 43.6% increase[49]. - Cash and cash equivalents as of November 30, 2020, were ¥11,546 billion, an increase of ¥610 billion from the previous fiscal year-end[13]. Business Strategy and Expansion - The company aims to expand its overseas UNIQLO and GU businesses, as well as global e-commerce operations[7]. - The company continues to open UNIQLO stores in various markets and flagship stores in major cities worldwide[7]. - The company plans to continue expanding its UNIQLO and GU brands both domestically and internationally, focusing on enhancing online sales channels[50]. - The company is investing in new technologies and product development to improve operational efficiency and customer experience[50]. Stock Options and Shareholder Information - The company granted stock options to 694 employees and 1,435 employees of its subsidiaries, totaling 22,306 stock options[26]. - The exercise price for the stock options is set at 1 yen per share, with a fair value of 78,237 yen and a paid-in capital of 39,119 yen on the grant date[26]. - The total number of issued shares as of November 30, 2020, is 106,073,656 shares[34]. - The company declared a dividend payment of ¥24,504 million during the period[47]. - Basic earnings per share for the period was ¥689.29, slightly down from ¥694.73 in the previous year[42]. Market Conditions and Challenges - The first quarter saw a net loss of ¥5.9 billion due to foreign exchange losses, impacting pre-tax profit which grew by 5.0% to ¥107.1 billion[7]. - The impact of COVID-19 is expected to continue affecting business operations, with a recovery anticipated by August 2021[52]. - The company experienced a decrease in retained earnings, which stood at ¥942,343 million as of November 30, 2019, down from ¥933,303 million at the beginning of the period[45]. Audit and Compliance - The financial statements have been prepared in accordance with International Accounting Standard 34[37]. - Deloitte Touche Tohmatsu LLC reviewed the quarterly financial statements for the three-month period ending November 30, 2020[38]. - Management is responsible for preparing the interim condensed consolidated financial statements in accordance with International Accounting Standard 34[85].

Financial Performance - Total revenue for the fiscal year ending August 31, 2020, was ¥2,008,846 million, a decrease of 12.3% compared to the previous year[7]. - Operating profit for the same period was ¥149,347 million, down 42.1% year-over-year[7]. - Profit attributable to owners of the parent company was ¥90,357 million, a decline of 44.4% from the previous year[7]. - Operating income for the fiscal year ending August 31, 2020, was ¥156,356 million, a decrease of 15.4% from the previous year[9]. - Net income for the same period was ¥62,422 million, down 41.1% compared to the previous year[9]. - The overall pre-tax profit for the fiscal year was ¥152.8 billion, a decrease of 39.4% year-on-year[49]. - The company recorded impairment losses of ¥23.0 billion for the fiscal year due to deteriorating performance caused by the pandemic[49]. - The company reported a total comprehensive income of ¥109,085 million for the year ended August 31, 2020, compared to ¥155,049 million in the previous year, a decrease of 29.6%[199]. Assets and Liabilities - Total assets increased to ¥2,411,990 million, up 19.9% from the previous year[7]. - Total liabilities rose to ¥1,415,910 million, an increase of 37.8% from ¥1,027,024 million in the previous year[195]. - Non-current assets significantly increased to ¥756,799 million, up from ¥372,384 million, marking a growth of 103.5%[195]. - Cash and cash equivalents at the end of the fiscal year were ¥1,093,531 million, reflecting a slight increase from ¥1,086,519 million in the previous year[7]. Employee and Workforce - The number of employees increased to 57,727, up from 56,523 in the previous year[7]. - The total number of employees across all divisions was 57,727 as of August 31, 2020, a decrease from 70,765 the previous year[27]. - The average annual salary for employees was 9,013 thousand JPY as of August 31, 2020[29]. - The increase in employee numbers was primarily due to new store openings, indicating ongoing market expansion efforts[27]. Market Expansion and Strategy - The company has been expanding its market presence, with significant historical milestones including the establishment of UNIQLO stores in various international locations[11]. - UNIQLO opened its first global flagship store in New York's Soho, covering over 3,300 square meters[13]. - The overseas UNIQLO business is a key growth driver, with plans to open numerous stores in Greater China, Southeast Asia, and Oceania, while also targeting profitability in the U.S. market[37]. - The company aims to become the world's leading digital consumer retail company in the apparel sector, focusing on expanding overseas UNIQLO and GU businesses, as well as e-commerce operations[33]. COVID-19 Impact - The company faced significant challenges during the fiscal year ending August 2020 due to the COVID-19 pandemic, which had a more severe impact on the global economy than the 2008 financial crisis[32]. - The COVID-19 pandemic has negatively impacted all business operations, leading to factory shutdowns, logistics delays, and reduced store operating hours[44]. - The group is actively expanding overseas business, increasing the proportion of overseas sales in total net sales[44]. - The group has implemented emergency measures based on expert advice to prevent the spread of COVID-19 among employees and customers[44]. Sustainability and Governance - The company is focused on sustainable development, addressing ESG issues such as labor conditions, human rights, and environmental protection in its production processes[40]. - The company aims to reduce plastic usage in shopping bags and product packaging by 85% (approximately 7,800 tons) by 2020[54]. - The company has established a sustainable development committee focusing on climate change, energy efficiency, and waste management[44]. - The company has established various committees, including the Sustainability Committee and the Disclosure Committee, to enhance governance and transparency[129]. Shareholder Information - The total dividend for the fiscal year remained at 480 yen per share, consisting of an interim dividend of 240 yen and a year-end dividend of 240 yen[122]. - The company aims to improve performance and distribute profits reasonably based on performance, maintaining a high dividend payout policy[122]. - The major shareholders include Masaru Yanai with 22,037 thousand shares (21.58%) and The Master Trust Bank of Japan, Ltd. with 20,785 thousand shares (20.36%) as of August 31, 2020[109]. Risk Management - The group has established a risk management committee directly overseen by the board, responsible for identifying significant risks and enhancing management systems[41]. - The company conducts regular risk analyses to identify potential financial losses, business interruptions, or damage to brand reputation, implementing measures to manage these risks[144]. - The company has established a liability limitation agreement with external directors and auditors, capping liability at 5 million yen or a higher statutory amount[140]. Corporate Governance - The board consists of nine members, including five external directors, enhancing the board's independence and supervisory functions[126]. - The company has established a strict internal control system to ensure compliance with group policies and regulations, enhancing operational legality and efficiency[141]. - The company emphasizes the importance of diverse opinions from external auditors and directors in its decision-making process[166].

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].