Fast Retailing : Year-end Report 2021/22 (2021.9.1-2022.8.31)

FAST RETAILING CO., LTD.

迅 銷 有 限 公 司

Year-end Report 2021/22

2021.9.1-2022.8.31 Stock Code: 6288

Contents

1.	Corporate Information	1
2.	Financial Highlights	2
3.	Corporate Profile	4
4.	Management Discussion and Analysis	12
5.	Capital Expenditures	31
6.	Stock Information and Dividend Policy	34
7.	Corporate Governance Report	52
8.	Board of Directors	61
9.	Financial Information	81
Consolidated Financial Statements	82
(1)	Consolidated statement of financial position	82
(2)	Consolidated statement of profit or loss	84
(3)	Consolidated statement of comprehensive income	85
(4)	Consolidated statement of changes in equity	86
(5)	Consolidated statement of cash flows	88
(6)	Notes to the consolidated financial statements	90
Non-Consolidated Financial Statements	161
(1)	Balance sheet	161
(2)	Statement of income	163
(3)	Statement of changes in net assets	164
(4)	Notes	166
(5)	Supplementary schedule	171
(6)	Main details of assets and liabilities	172
(7)	Others	172
Independent Auditor's Report (Group)	173
Independent Auditor's Report (Company)	178
Internal Control Report	181
Confirmation Note	182

1. Corporate Information

Board of Directors

Representative Executive Director

Tadashi Yanai (Chairman, President and CEO)

Executive Directors

Takeshi Okazaki

Kazumi Yanai

Koji Yanai

Independent Non-executive Directors Nobumichi Hattori

Masaaki Shintaku

Takashi Nawa (retired on 24 November 2022) Naotake Ono

Kathy Mitsuko Koll (aka Kathy Matsui)

Joji Kurumado (appointed on 24 November 2022) Yutaka Kyoya (appointed on 24 November 2022)

Board of Statutory Auditors

Masaaki Shinjo

Masumi Mizusawa

Keiko Kaneko (External)

Takao Kashitani (External)

Masakatsu Mori (External)

Company Secretary

Shea Yee Man

Independent Auditor

Deloitte Touche Tohmatsu LLC

Principal Banks

Sumitomo Mitsui Banking Corporation

MUFG Bank, Ltd.

Mizuho Bank, Ltd.

The Hong Kong and Shanghai Banking Corporation Limited

Registered Office and Headquarters

10717-1 Sayama

Yamaguchi City

Yamaguchi 754-0894

Japan

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Principal Place of Business in Japan

Midtown Tower 9-7-1

Akasaka, Minato-ku

Tokyo 107-6231

Japan

Principal Place of Business in Hong Kong 702-706, 7th Floor, Mira Place Tower A No. 132 Nathan Road

Tsim Sha Tsui Kowloon Hong Kong

HDR Registrar and HDR Transfer Office

Computershare Hong Kong Investor Services Limited

Shops 1712-1716, 17th Floor

Hopewell Centre

183 Queen's Road East

Wanchai

Hong Kong

Stock Code

Hong Kong: 6288

Japan: 9983

Website Address

http://www.fastretailing.com

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2. Financial Highlights

A. Consolidated Financial Summary

Term		International Financial Reporting Standards ("IFRS")
57th Year	58th Year	59th Year	60th Year	61st Year
	Year ended	Year ended	Year ended	Year ended	Year ended
Accounting Period	31 August	31 August	31 August	31 August	31 August
	2018	2019	2020	2021	2022
Revenue (Millions of yen)	2,130,060	2,290,548	2,008,846	2,132,992	2,301,122
Operating profit (Millions of yen)	236,212	257,636	149,347	249,011	297,325
Profit before income taxes (Millions of	242,678	252,447	152,868	265,872	413,584
yen)
Profit attributable to owners of the	154,811	162,578	90,357	169,847	273,335
Parent (Millions of yen)
Comprehensive income attributable to	165,378	140,900	110,134	215,309	554,833
owners of the Parent (Millions of yen)
Equity attributable to owners of the	862,936	938,621	956,562	1,116,484	1,561,652
Parent (Millions of yen)
Total assets (Millions of yen)	1,953,466	2,010,558	2,411,990	2,509,976	3,183,762
Equity per share attributable to owners	8,458.52	9,196.61	9,368.83	10,930.42	15,281.90
of the Parent (Yen)
Basic earnings per share for the year	1,517.71	1,593.20	885.15	1,663.12	2,675.30
(Yen)
Diluted earnings per share for the year	1,515.23	1,590.55	883.62	1,660.44	2,671.29
(Yen)
Ratio of equity attributable to owners	44.2	46.7	39.7	44.5	49.1
of the Parent to total assets (%)
Ratio of profit to equity attributable to	19.4	18.0	9.5	16.4	20.4
owners of the Parent (%)
Price earnings ratio (times)	34.1	39.1	71.5	43.6	30.6
Net cash generated by operating	176,403	300,505	264,868	428,968	430,817
activities (Millions of yen)
Net cash (used in) / generated by	(57,180)	(78,756)	(75,981)	(82,597)	(212,226)
investing activities (Millions of yen)
Net cash (used in) / generated by	198,217	(102,429)	(183,268)	(302,985)	(213,050)
financing activities (Millions of yen)
Cash and cash equivalents at end of	999,697	1,086,519	1,093,531	1,177,736	1,358,292
year (Millions of yen)
Number of employees:	52,839	56,523	57,727	55,589	57,576
(Separate, average number of	(71,840)	(80,758)	(70,765)	(63,136)	(56,113)
temporary employees)

(Notes) FAST RETAILING CO., LTD and its consolidated subsidiaries (the "Group") prepare the consolidated financial statements in accordance with IFRS.

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B. Non-Consolidated Financial Summary

Term	57th Year	58th Year	59th Year	60th Year	61st Year
	Year ended	Year ended	Year ended	Year ended	Year ended
Accounting period	31 August	31 August	31 August	31 August	31 August
	2018	2019	2020	2021	2022
Operating revenue (Millions of yen)	193,044	184,910	156,356	278,605	283,165
Ordinary profit (Millions of yen)	139,660	106,000	78,211	208,221	295,957
Net profit (Millions of yen)	122,158	106,113	62,422	175,286	258,203
Capital stock (Millions of yen)	10,273	10,273	10,273	10,273	10,273
Total number of shares issued (shares)	106,073,656	106,073,656	106,073,656	106,073,656	106,073,656
Total net assets (Millions of yen)	463,229	521,706	538,954	667,569	877,273
Total assets (Millions of yen)	993,413	1,054,758	1,063,356	1,100,398	1,362,278
Equity per share (Yen)	4,489.50	5,053.07	5,207.74	6,463.08	8,508.57
Dividends per share	440.00	480.00	480.00	480.00	620.00
(Figures in parentheses indicate	(200.00)	(240.00)	(240.00)	(240.00)	(280.00)
interim dividends) (Yen)
Basic net profit per share (Yen)	1,197.59	1,039.87	611.50	1,716.37	2,527.19
Diluted net profit per share (Yen)	1,195.63	1,038.14	610.44	1,713.61	2,523.41
Equity ratio (%)	46.1	48.9	50.0	60.0	63.8
Earnings on equity (%)	29.4	21.8	11.9	29.4	33.8
Price earnings ratio (Times)	43.3	59.5	103.5	42.3	32.4
Dividend ratio (%)	36.7	46.2	78.5	28.0	24.5
Number of employees:	1,345	1,389	1,589	1,617	1,698
(Separate, average number of	(267)	(11)	(8)	(10)	(12)
temporary employees) (Persons)
Total shareholder return (%)	166.0	200.7	205.5	236.4	268.4
(Compared with TOPIX Total	(109.6)	(97.8)	(107.3)	(132.8)	(136.2)
Return Index) (%)
Highest share price (Yen)	54,510	70,230	70,180	110,500	88,230
Lowest share price (Yen)	30,000	47,040	39,910	62,860	54,310

(Notes) 1. Up until the 57th year, contract employees and fixed-term employees were included in the average number of temporary employees, but from the 58th year, they are included in the number of employees.

1. The highest and lowest share prices were recorded on the Tokyo Stock Exchange (Prime Market) on and after April 4, 2022, and prior to that, on the Tokyo Stock Exchange (1st Section).
2. The Company has applied standards such as the Accounting Standard for Revenue Recognition (ASBJ Statement No. 29, March 31, 2020) from the beginning of the current fiscal year, and has applied relevant major management indices and other indicators for the current fiscal year after the aforementioned standards have been applied.

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