スライド 1

(1)

FAST

RETAILING

WASEDA University

Ryo Takahata Yasushi Kobayashi

Eriko Kawamoto Ayaka Moriwake

(2)

(3)

The Investment Recommendation

Basic clothing

High-quality and Low-price

The system of SPA

Target stock prices ：21556 Yen

Current stock prices :13720 Yen

(4)

Fast Retailing is the Japanese apparel retailing company

which has “UNIQLO” brand and

which offers high-quality basic clothing at reasonable prices.

(5)

Corporate Statement

“Changing clothes.

Changing conventional wisdom.

Change the world.”

(6)

Net Sales Component Ratio

UNIQLO Japan

74%

UNIQLO

International

9%

Global Brands

17%

Net Sales

Net Sales：

814 billion Yen

= 12.5 billion S Dollars

(1 S$=65Yen)

Number of Shops：

Japan :878

World :136

(7)

SPA Model

（Specialty store retailer of Private label Apparel ）

final sale

production

(8)

Strong Points of the Business

3 Strong

Points

②High Quality Clothing

③Low Price Clothing

(9)

①Basic Clothing

・Anybody can wear

・Not affected by trend

(10)

High Quality

Low Quality

Basic

Specialty

_Shops

_Fashion

GMS

(11)

②High-Quality Clothing

Can focus on the same products for a long time

(12)

③ Low Price Clothing

・Excluding the middleman

・ Most of the products of them are made in China

・Placing large amount of orders on factories

(13)

The Current and Future Situation of FR

UNIQLO Japan

(14)

Nation’s largest apparel retailer

UNIQLO Japan

Ranking

Company

Type of Business

Apparel Retail

Sales (¥billion)

Y/Y (%)

1 UNIQLO

Specialty Store

571.9

12.5

2 _Shimamura

Specialty Store

440.1

2.4

3 _{Sogo and Seibu}

Department Store

384.4 ▲4.3

4 _Takashimaya

Department Store

325.2 ▲1.6

5 Daimaru

Matsuzakaya

Department Store

258.7 ▲22.0

6 Isetan

Department Store

255.8 ▲8.2

(15)

UNIQLO Japan’s Growth

Business recession

Trend of Japanese Apparel Retailing Market

Aging society

with a falling birthrate

0 2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

1989

1992

1995

1998

2001

2004

2007

2010

Scale of

Apparel Retailing Market

(16)

Focus on China

UNIQLO International

0

20

40

60

80

100

120

140

160 Stores

Store Number Trends

UNIQLO

international

Stores in

China

(17)

Estimate

Advantage in China 1

220,000

555,112

856,589

990,415

0 200,000

400,000

600,000

800,000

1,000,000

1,200,000

2001

2009

2015

2020

Population of Middle-Income Group

(18)

High

Low

Basic

_Fashion

The number of branch shop in

China

中国での優位性②

Advantage in China 2

(19)

Net sales

＝Numbers of store×Net sales per store

Net sales per square meter

×

Floor area per store

Future Net Sales

(20)

• =

Net sales

Future Net Sales

Number

of store

Net sales per square meter

Floor area per store

×

(21)

Number

of stores

Net sales per square meter

Floor area per store

Future Net Sales of UNIQLO International

Increase in 50 stores every year

Reach the same level as Japanese stores by 2020.

Large scale stores：1566ｍ²

(22)

0 500,000

1,000,000

1,500,000

2,000,000

0

500 1000

1500

2000

2500

Millions of yen

Stores

Trends of Net Sales and

Number of Stores

Others

Other Asia

China

UNIQLO

Japan

(1S$=65 Yen)

(23)

Prediction term: 10 years

WACC : 5.06％

Permanent growing rate : 2％

Valuation : DCF Method

Target stock prices ：21556 Yen

Current stock price: 13720Yen

(24)

Conclusion

Basic clothing

High-quality and Low-price

The system of SPA

The target stock prices ：21556 Yen

Growth in overseas market

The Investment

Recommendation

(25)

Thank you for

listening

(26)

■Key Person Risk

■Risk of reliance on certain regions for production

■Risk of operations outside Japan

(27)

Net sales ＝Number of store×Net sales per store

Net sales per square meter of retail floor space

×

Shopfloor area per store

Future Net Sales of

UNIQLO Japan

Number of store

Net sales per square meter of retail floor space

Shopfloor area per store

・The pace of opening large scale stores will decrease.

・ Square stays the same (about 0.9 million)

Normal stores … 766ｍ²

Large scale stores …1566ｍ²

(28)

Company Name

(Flags hip Brand)

Country

Sales(Billio

ns of dollar)

Change

(%)(local base)

INDITEX（ZARA）

Spain

_17.8

13 H&M

Sweden

_17.2

0.7 GAP

USA

_14.7

3.3 F AST

RET AILING ( UNIQ LO )

J apan

9.8

18.9 Limited Brands

USA

9.6

11.4 _UK

_5.6

1.4 Polo Ralph Lauren

USA

5 ▲0.8

Esprit

Hong Kong

4.3 ▲2.2

Abercrombie & Fitch

_USA

_3.5

18.4 Liz Claiborne

_USA

_2.5

▲14.3

Notes: Compiled from the annual reports of the companies listed above.

(29)

Furure Net Sales

2002.8

2003.8

2004.8

2005.8

2006.8

2007.8

2008.8

2009.8

2010.8

Net sales

344170

309789

339999

383973

448819

525203

586451

685043

814811

UNIQLO Japan

365305

393608

424701

462343

538187

605561

UNIQLO International

3078

8737

16998

29344

37789

72792

Others

15588

46471

83503

94761

109064

136455

2011.8

2012.8

2013.8

2014.8

2015.8

2016.8

2017.8

2018.8

2019.8

2020.8

Net sales

818279

997283

1067542

1142990

1223629

1348274

1486910

1639534

1809759

1997584

UNIQLO Japan

577100

712696

730747

745188

756018

763238

766849

UNIQLO International

104724

148132

200340

261348

331156

448581

583606

736231

906456

1094280

Others

136455

Total store

2002.8

2003.8

2004.8

2005.8

2006.8

2007.8

2008.8

2009.8

2010.8

The number of total store

585

621

655 1232

1632

1828

1958

2258

2203

Total UNIQLO

585

621

646

693

750

787

813

862

944 UNIQLO Japan

570

595

637

679

720

748

759

770

808 Standard store

570

595

637

676

713

720

709

699

706 Large-scale store

3

7

28

50

71

102 UNIQLO international

15

26

9

14

30

39

54

92

136 China

5

6

8

7

9

13

33

54 Other Asia

0

11

18

26

43

64 Others

15

21

3

6

12

15

16

18 Other project

9

539

882 1041

1145

1396

1259

Furure total store

2011.8

2012.8

2013.8

2014.8

2015.8

2016.8

2017.8

2018.8

2019.8

2020.8

The number of total store

2178

2230

2282

2334

2386

2488

2590

2692

2794

2896

Total UNIQLO

1037

1089

1141

1193

1245

1347

1449

1551

1653

1755

UNIQLO Japan

854

854 Standard store

717

687

662

642

627

617

612

612 Large-scale store

137

167

192

212

227

237

242

242 UNIQLO international

183

235

287

339

391

493

595

697

799

901 China

77

127

177

227

277

327

377

427

477

527 Other Asia

87

137

187

237

287

337 Others

19

21

23

25

27

29

31

33

35

37 Other project

1141

Future net sales

(30)

0 2 4 6 8 10 12 14 16 18 2006 2007 2008 2009 2010 (%)

Operating Margin

FAST RETAILING

Averageof

ZARA,H&M,GAP

Industry average

in Japan

0 10 20 30 40 50 60 2006 2007 2008 2009 2010 (%)

Gross Margin

FAST RETAILING

Averageof

ZARA,H&M,GAP

Industry average

in Japan

(31)

0 5 10 15 20 25 2006 2007 2008 2009 2010 (%)

ROA

FAST RETAILING

Averageof

ZARA,H&M,GAP

Industry average in

Japan

0

5

10

15

20

25

30

35 2006

2007

2008

2009

2010

(%)

ROE

FAST RETAILING

Averageof

ZARA,H&M,GAP

Industry average

in Japan

(32)

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

2006

2007

2008

2009

2010

ROIC

FAST RETAILING

H＆M

GAP

ZARA

(33)

(milions of yen)

Condenced Consolidated Balance Sheet

2002.8

2003.8

2004.8

2005.8

2006.8

2007.8

2008.8

2009.8

2010.8

Assets

Cush and time deposit

67771

76447

83862

74759

121950

64091

67248

43876

62466

Funds surplus

Acounts receivable trade

3143

4277

3223

4472

8396

9849

13411

15213

15371

Inventries

30995

20867

28803

33594

42862

55173

53778

74580

74079

Defferd tax assets

293 4365

3755

2894

928 1752

2545

22187

29715

others

64394

64581

60511

64332

76190

87113

126714

142315

163994

Total current assets

166596

170537

180154

180051

250326

217978

263696

298171

345625

Total tangible assets

15910

14720

15819

18676

29892

37339

40317

45946

50144

Goodwill

0

0 10787

32996

32536

28122

39399

28798

others

783 3351

4852

6366

8225

10465

12715

15913

19042

Total intangible fixed assets

783 3351

4852

17153

41221

43001

40837

55312

47840

Total investments and other assets

27630

31245

40071

56965

58213

61450

59868

63854

63678

(Investment in securities)

63

584 6093

7431

1146

907

669

686

844 (Long-term loans reciable)

0

0 Total fixed assets

44323

49316

60742

92794

129326

141790

141022

165112

161662

Total assets

210919

219853

240896

272845

379652

359768

404718

463283

507287

Liabilities

Accounts payable trade

48146

43236

44706

33718

42794

40568

57035

56930

54098

Short-term loans payable

1809

0

668

512

527 11775

7414

New borrowing

Current portion of lomg-term debt

0

0 2521

4484

3201

3098

9944

Income tax repayable

0 7750

14840

12213

30340

14393

24570

27022

31512

others

32631

27544

18717

28282

36169

30601

33258

76777

99650

Total current liabilities

82586

78530

78263

74213

112492

90558

118591

175602

202618

Long-term loans payable

4000

0

52 4945

19584

19432

16288

17980

5865

Reserve for retirement benefits

0

200

437

393

253

307

0 others

703

820 1148

5992

6662

6104

5573

7982

10816

Total fixed liabikities

4703

820 1200

11137

26683

25929

22114

26269

16681

Total liabilities

87289

79350

79463

85350

139175

116487

140705

201871

219299

Net assets

Common stock

3274

10273

Capital surplus

11579

4578

4579

4999

5000

Legal reserve of retained earnings

124686

141406

163982

184293

211135

228958

259756

295442

336739

Treasury stocks

-16021

-16027

-16034

-16040

-15539

-15546

-15556

-16254

-16260

Owner's equity

123518

140232

162799

183105

210868

228684

259472

294461

335752

Accumulated other comprehensive profit

114

273 -1365

-755

17359

11460

2496

-34822

-50313

Minority stockholder's equity

0

0 5146

12252

3139

2046

1774

2548

Total net assets

123632

140505

161434

187496

240479

243283

264014

261413

287987

Total liabilities and net assets

210919

219853

240896

272845

379652

359768

404718

463283

507287

(34)

(milions of yen)

Condenced Consolidated Balance Sheet

2002.8

2003.8

2004.8

2005.8

2006.8

2007.8

2008.8

2009.8

2010.8

Assets

Cush and time deposit

67771

76447

83862

74759

121950

64091

67248

43876

62466

Funds surplus

Acounts receivable trade

3143

4277

3223

4472

8396

9849

13411

15213

15371

Inventries

30995

20867

28803

33594

42862

55173

53778

74580

74079

Defferd tax assets

293 4365

3755

2894

928 1752

2545

22187

29715

others

64394

64581

60511

64332

76190

87113

126714

142315

163994

Total current assets

166596

170537

180154

180051

250326

217978

263696

298171

345625

Total tangible assets

15910

14720

15819

18676

29892

37339

40317

45946

50144

Goodwill

0

0 10787

32996

32536

28122

39399

28798

others

783 3351

4852

6366

8225

10465

12715

15913

19042

Total intangible fixed assets

783 3351

4852

17153

41221

43001

40837

55312

47840

Total investments and other assets

27630

31245

40071

56965

58213

61450

59868

63854

63678

(Investment in securities)

63

584 6093

7431

1146

907

669

686

844 (Long-term loans reciable)

0

0 Total fixed assets

44323

49316

60742

92794

129326

141790

141022

165112

161662

Total assets

210919

219853

240896

272845

379652

359768

404718

463283

507287

Liabilities

Accounts payable trade

48146

43236

44706

33718

42794

40568

57035

56930

54098

Short-term loans payable

1809

0

668

512

527 11775

7414

New borrowing

Current portion of lomg-term debt

0

0 2521

4484

3201

3098

9944

Income tax repayable

0 7750

14840

12213

30340

14393

24570

27022

31512

others

32631

27544

18717

28282

36169

30601

33258

76777

99650

Total current liabilities

82586

78530

78263

74213

112492

90558

118591

175602

202618

Long-term loans payable

4000

0

52 4945

19584

19432

16288

17980

5865

Reserve for retirement benefits

0

200

437

393

253

307

0 others

703

820 1148

5992

6662

6104

5573

7982

10816

Total fixed liabikities

4703

820 1200

11137

26683

25929

22114

26269

16681

Total liabilities

87289

79350

79463

85350

139175

116487

140705

201871

219299

Net assets

Common stock

3274

10273

Capital surplus

11579

4578

4579

4999

5000

Legal reserve of retained earnings

124686

141406

163982

184293

211135

228958

259756

295442

336739

Treasury stocks

-16021

-16027

-16034

-16040

-15539

-15546

-15556

-16254

-16260

Owner's equity

123518

140232

162799

183105

210868

228684

259472

294461

335752

Accumulated other comprehensive profit

114

273 -1365

-755

17359

11460

2496

-34822

-50313

Minority stockholder's equity

0

0 5146

12252

3139

2046

1774

2548

Total net assets

123632

140505

161434

187496

240479

243283

264014

261413

287987

Total liabilities and net assets

210919

219853

240896

272845

379652

359768

404718

463283

507287

(35)

(milions of yen)

Consolidated profit and loss statement

2002.8

2003.8

2004.8

2005.8

2006.8

2007.8

2008.8

2009.8

2010.8

Net sales

344170

309789

339999

383973

448819

525203

586451

685043

814811

Cost of sales

193765

172724

176804

213682

236401

276808

292769

343515

393930

Gross profit

150405

137065

163194

170290

212418

248395

293682

341528

420881

Depliciation

1930

2272

1840

2433

5409

6567

8523

9765

12229

Others

98057

93485

97400

111165

136653

176864

197666

223123

276274

Selling, general and administrative expenses

99987

95757

99240

113598

142062

183431

206189

232888

288503

Operaring incom

50418

41308

63954

56692

70355

64963

87493

108639

132378

Interest incom

676

374

506

790 1045

1314

2240

847

344 others

749

447

407 1939

3215

2953

513

881

657 Non-operating income

1425

821

913 2729

4260

4267

2753

1728

1001

Interest payed

406

332

169

344

853 1775

1635

917

500 others

328

228

515

470

624 2851

2912

8142

9124

Non-operating expenses

734

560

684

814 1477

4626

4547

9059

9624

Ordinary income

51110

41569

64183

58607

73138

64604

85698

101308

123755

Extraordinary profit

109

0

0 6040

1300

1903

1027

464

917 Extraordinary loss

773 6818

7735

6631

1685

3794

4731

6285

7804

Net income before income tax

50445

34751

56448

58016

72752

62713

81994

95487

116867

Total income, inhabitant and business tax

22595

13817

25083

24058

30933

30775

38128

45433

54215

Net income before minority stockholder's profit 27850

20934

31365

33958

41819

31938

43866

50054

62652

Minority stockholder's profit

0

1

73 1381

163

336

257

971 Net income

27850

20933

31365

33884

40437

31775

43529

49797

61681

Balance Sheet

(36)

(milions of yen)

Cash flow　statement 2002.8 2003.8 2004.8 2005.8 2006.8 2007.8 2008.8 2009.8 2010.8

Oper ating cash flow 30780 39563 13702 49965 -5342 36135 4062 46704 Net income 20933 31365 33884 40437 31775 43529 49797 61681 Depliciation 2272 1840 2433 5409 6567 8523 9765 12229 Acounts receivable trade -1134 1054 -1249 -3924 -1453 -3562 -1802 -158 Inventries 10128 -7936 -4791 -9268 -12311 1395 -20802 501 Defferd tax assets -4072 610 861 1966 -824 -793 -19642 -7528 Dffered tax liabilities 0 0 0 0 0 0 0 0 Others(current assets) -187 4070 -3821 -11858 -10923 -39601 -15601 -21679 Accounts payable trade -4910 1470 -10988 9076 -2226 16467 -105 -2832 Income tax repayable 7750 7090 -2627 18127 -15947 10177 2452 4490 Investment cash flow -7265 -13266 -34485 -41941 -19031 -7755 -33855 -8779 Total current assets 1190 -1099 -2857 -11216 -7447 -2978 -5629 -4198 Goodwill 0 0 -10787 -22209 460 4414 -11277 10601 Others(intangible fixed assets) -2568 -1501 -1514 -1859 -2240 -2250 -3198 -3129 Total investments and other assets -3615 -8826 -16894 -1248 -3237 1582 -3986 176 0 0 0 0 0 0 0 0 Depliciation -2272 -1840 -2433 -5409 -6567 -8523 -9765 -12229 Fr ee cash flow 23515 26297 -20783 8024 -24373 28380 -29793 37925 Financial cash flow -14839 -18883 11680 39168 -33486 -25224 6421 -19337 Short-term loans payable -1809 0 0 668 -156 15 11248 -4361 Current portion of lomg-term debt 0 0 0 2521 1963 -1283 -103 6846 Others(current liabolities) -5087 -8827 9565 7887 -5568 2657 43519 22873

Bonds 0 0 0 0 0 0 0 0

Convertible bonds 0 0 0 0 0 0 0 0 Long-term loans payable -4000 52 4893 14639 -152 -3144 1692 -12115 Reserve for retirement benefits 0 0 200 237 -44 -140 54 -307 Reserve for retirement benefits for officers 0 0 0 0 0 0 0 0 Others(fixed liabolities) 117 328 4844 670 -558 -531 2409 2834 Common stock 0 6999 0 0 0 0 0 0 Capital surplus 0 -7001 1 420 0 0 1 0 Legal reserve of retained earnings 1381 2907 -351 -361 -711 510 2179 3026 Treasury stocks -6 -7 -6 501 -7 -10 -698 -6 Others(owner's equity) 0 0 0 0 0 0 0 0 Accumulated other comprehensive profit 159 -1638 610 18114 -5899 -8964 -37318 -15491 Minority stockholder's equity 0 0 5146 7106 -9113 -1093 -272 774 Divident paid -5594 -11696 -13222 -13234 -13241 -13241 -16290 -23410 Decrease and increase in cash and time deposit 8676 7414 -9103 47192 -57859 3156 -23372 18588 Cash and time deposit at beginning of year 67771 76447 83862 74759 121950 64091 67248 43876 Cash and time deposit at end of year 76447 83862 74759 121950 64091 67248 43876 62466

(37)

Condenced Consolidated Balance Sheet(milions of yen)

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

Assets

Cush and time deposit

62466 163656

199457

213508

228598

244726

269655

297382

327907

361952

399517

Funds surplus

0

0 Acounts receivable trade

15371

16595

20225

21650

23180

24815

27343

30154

33250

36702

40511

Inventries

74079

80524

98140

105054

112478

120414

132680

146323

161342

178093

196577

Defferd tax assets

29715

others

163994 157225

191619

205118

219615

235109

259058

285696

315021

347728

383817

Total current assets

345625 417999

509440

545330

583871

625064

688736

759555

837520

924475 1020421

Total tangible assets

50144

50357

61373

65697

70340

75303

82974

91505

100898

111374

122933

Goodwill

28798

others

19042

17435

21248

22745

24353

26071

28727

31681

34933

38559

42561

Total intangible fixed assets

47840

17435

21248

22745

24353

26071

28727

31681

34933

38559

42561

Total investments and other assets

63678

85126

103748

111057

118906

127295

140262

154684

170562

188270

207810

(Investment in securities)

844 1221

1488

1592

1705

1825

2011

2218

2446

2700

2980

(Long-term loans reciable)

0

0 Total fixed assets

161662 152918

186370

199500

213599

228669

251962

277870

306392

338203

373303

Total assets

507287 570917

695810

744830

797470

853732

940698 1037425 1143912 1262679 1393725

Liabilities

Accounts payable trade

54098

57038

69516

74414

79673

85294

93982

103646

114285

126150

139243

Short-term loans payable

7414

New borrowing

82912

146612

141100

136194

131679

148673

168076

189270

213652

240439

Current portion of lomg-term debt

9944

Income tax repayable

31512

others

99650

55291

Total current liabilities

202618 212599

288777

288163

288516

289621

315304

344370

376203

412451

452331

Long-term loans payable

5865

Reserve for retirement benefits

0

0 others

10816

Total fixed liabikities

16681

Total liabilities

219299 229280

305458

304844

305197

306302

331985

361051

392884

429132

469012

(38)

Condenced Consolidated Balance Sheet(milions of yen)

Net assets 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Common stock 10273 10273 10273 10273 10273 10273 10273 10273 10273 10273 10273 Capital surplus 5000 5000 5000 5000 5000 5000 5000 5000 5000 5000 5000 Legal reserve of retained earnings 336739 373362 421122 469750 520955 574947 634936 701164 774235 855000 944227 Treasury stocks -16260

Owner's equity 335752 388635 436395 485023 536228 590220 650209 716437 789508 870273 959500 Accumulated other comprehensive profit -50313 -50313 -50313 -50313 -50313 -50313 -50313 -50313 -50313 -50313 -50313 Minority stockholder's equity 2548 3314 4269 5275 6358 7522 8816 10248 11832 13585 15525 Total net assets 287987 341636 390351 439985 492273 547429 608712 676372 751026 833545 924712 Total liabilities and net assets 507287 570917 695810 744830 797470 853732 940698 1037425 1143912 1262679 1393725

(39)

Consolidated profit and loss statement(milions of yen)

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

Net sales 814811 818279 997283 1067542 1142990 1223629 1348274 1486910 1639534 1809759 1997584 Cost of sales 393930 415342 506201 541863 580159 621090 684357 754726 832195 918598 1013934 Gross profit 420881 402937 491082 525679 562831 602539 663917 732184 807339 891161 983650 Depliciation 12229 12495 12548 15294 16371 17528 18765 20676 22802 25143 27753 Others 276274 277450 338144 361966 387548 414890 457153 504159 555909 613626 677311 Selling, general and administrative expenses 288503 289945 350692 377260 403919 432418 475917 524835 578711 638769 705064 Operaring incom 132378 112992 140390 148419 158912 170121 188000 207348 228628 252392 278586 Interest incom 344 1795 2187 2341 2507 2684 2957 3261 3596 3969 4381 others 657 1644 1644 1644 1644 1644 1644 1644 1644 1644 1644 Non-operating income 1001 3438 3831 3985 4150 4327 4601 4905 5239 5613 6025 Interest payed 500 353 1615 2585 2501 2426 2357 2616 2911 3234 3605 others 9124 4731 4731 4731 4731 4731 4731 4731 4731 4731 4731 Non-operating expenses 9624 5084 6346 7315 7231 7157 7088 7347 7642 7965 8336 Ordinary income 123755 111346 137875 145089 155831 167292 185512 204906 226226 250041 276275 Extraordinary profit 917 1122 1122 1122 1122 1122 1122 1122 1122 1122 1122 Extraordinary loss 7804 4860 4860 4860 4860 4860 4860 4860 4860 4860 4860 Net income before income tax 116867 107608 134137 141351 152093 163554 181775 201169 222488 246303 272537 Total income, inhabitant and business tax 54215 49944 62256 65605 70590 75910 84366 93368 103262 114316 126491 Net income before minority stockholder's profit 62652 57665 71881 75746 81503 87644 97408 107801 119226 131987 146046 Minority stockholder's profit 971 766 955 1006 1083 1164 1294 1432 1584 1753 1940 Net income 61681 56899 70926 74740 80420 86480 96114 106369 117642 130234 144106

(40)

Cash flow　statement(milions of yen) 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Operating cash flow 46704 69638 40312 73093 78599 84564 84824 93617 103643 114332 126570 Net income 61681 56899 70926 74740 80420 86480 96114 106369 117642 130234 144106 Depliciation 12229 12495 12548 15294 16371 17528 18765 20676 22802 25143 27753 Acounts receivable trade -158 -1224 -3630 -1425 -1530 -1635 -2528 -2812 -3095 -3452 -3809 Inventries 501 -6445 -17615 -6914 -7425 -7935 -12266 -13643 -15019 -16751 -18483 Defferd tax assets -7528 29715 0 0 0 0 0 0 0 0 0 Dffered tax liabilities 0 0 0 0 0 0 0 0 0 0 0 Others(current assets) -21679 6769 -34394 -13500 -14497 -15494 -23950 -26637 -29325 -32707 -36089 Accounts payable trade -2832 2940 12478 4897 5259 5621 8688 9664 10639 11866 13092 Income tax repayable 4490 -31512 0 0 0 0 0 0 0 0 0 Investment cash flow -8779 -3751 -46000 -28423 -30471 -32597 -42058 -46584 -51324 -56954 -62853 Total current assets -4198 -213 -11016 -4324 -4643 -4963 -7671 -8532 -9393 -10476 -11559 Goodwill 10601 28798 0 0 0 0 0 0 0 0 0 Others(intangible fixed assets) -3129 1607 -3814 -1497 -1608 -1718 -2656 -2954 -3252 -3627 -4002 Total investments and other assets 176 -21448 -18622 -7309 -7849 -8389 -12967 -14422 -15878 -17709 -19539 0 0 0 0 0 0 0 0 0 0 0 Depliciation -12229 -12495 -12548 -15294 -16371 -17528 -18765 -20676 -22802 -25143 -27753 Free cash flow 37925 65886 -5688 44669 48128 51967 42766 47033 52318 57378 63717 Financial cash flow -19337 -47608 -22211 -25106 -28132 -31324 -34831 -38709 -42988 -47715 -52939 Short-term loans payable -4361 0 0 0 0 0 0 0 0 0 0 Current portion of lomg-term debt 6846 0 0 0 0 0 0 0 0 0 0 Others(current liabolities) 22873 -44359 0 0 0 0 0 0 0 0 0 Bonds 0 0 0 0 0 0 0 0 0 0 0 Convertible bonds 0 0 0 0 0 0 0 0 0 0 0 Long-term loans payable -12115 0 0 0 0 0 0 0 0 0 0 Reserve for retirement benefits -307 0 0 0 0 0 0 0 0 0 0 Reserve for retirement benefits for officers 0 0 0 0 0 0 0 0 0 0 0 Others(fixed liabolities) 2834 0 0 0 0 0 0 0 0 0 0 Common stock 0 0 0 0 0 0 0 0 0 0 0 Capital surplus 0 0 0 0 0 0 0 0 0 0 0 Legal reserve of retained earnings 3026 0 0 0 0 0 0 0 0 0 0 Treasury stocks -6 16260 0 0 0 0 0 0 0 0 0 Others(owner's equity) 0 0 0 0 0 0 0 0 0 0 0 Accumulated other comprehensive profit -15491 0 0 0 0 0 0 0 0 0 0 Minority stockholder's equity 774 766 955 1006 1083 1164 1294 1432 1584 1753 1940 Divident paid -23410 -20275 -23166 -26112 -29215 -32488 -36125 -40141 -44571 -49469 -54879 Decrease and increase in cash and time deposit 18588 18278 -27900 19564 19996 20643 7935 8324 9331 9663 10778 Cash and time deposit at beginning of year 43876 62466 163656 199457 213508 228598 244726 269655 297382 327907 361952 Cash and time deposit at end of year 62464 163656 199457 213508 228598 244726 269655 297382 327907 361952 372730

(41)

(mi l i ons of yen) 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 UNIQLO Japan 577100 712696 730747 745188 756018 763238 766849 766849 766849 766849 UNIQLO International 104724 148132 200340 261348 331156 448581 583606 736231 906456 1094280 Others 136455 136455 136455 136455 136455 136455 136455 136455 136455 136455 Total s al es 818279 997283 1067542 1142990 1223629 1348274 1486910 1639534 1809759 1997584 Cost of sales 415342 506201 541863 580159 621090 684357 754726 832195 918598 1013934 Selling, general and administrative expenses 289945 350692 377260 403919 432418 475917 524835 578711 638769 705064 EBITA 112992 140390 148419 158912 170121 188000 207348 228628 252392 278586 Tax 46% 46% 46% 46% 46% 46% 46% 46% 46% 46% NOPLAT 60549 75231 79534 85157 91164 100744 111113 122516 135251 149287 Depliciation 12495 12548 15294 16371 17528 18765 20676 22802 25143 27753 Gros s cas h fl ow 73045 87780 94827 101528 108692 119509 131789 145318 160393 177040 A change in working capital 4729 8768 3441 3696 3950 6105 6791 7476 8338 9200 Capital investment 30932 37698 40354 43206 46254 50966 56206 61976 68410 75510 Aggregate investment 35660 46466 43795 46901 50204 57071 62997 69451 76748 84710 Operati ng free cas h fl ow 37384 41314 51032 54626 58488 62438 68792 75867 83645 92330 Discount rate 1.05 1.10 1.16 1.22 1.28 1.34 1.41 1.48 1.56 1.64 Pres ent val ue 35584 37430 44008 44838 45695 46432 48693 51114 53640 56358 Total pres ent val ue 463792

Risk free rate 1.17% Tarminal growth rate 2% Risk puremium 5.26% Discount rate 1.72 Levered beta 0.797 Conti nuous val ue 1754650 Cost of equity 5.36% Cost of debt 2.15% Enterpri s e val ue 2218442 Tax rate 40% Debt 23,223 Non-enterprize assets 63678 Total net assets 287,987 Corporate val ue 2282120 After-tax WACC 5.06% Debt 23223

Shares of minor shareholders 2548 Sharehol der's equi ty 2256349 Shares issueed 106073656 Targ et s tock pri ce 21272 （Yen）

(42)

The number of store _prediction

2009.8

2010.8

2011.8

2012.8

2013.8

2014.8

2015.8

2016.8

2017.8

2018.8

2019.8

2020.8

base UNIQLO international

76

118

164

214

264

314

364

464

564

664

764

864

China

33

54

77

127

177

227

277

327

377

427

477

527

Other Asia

43

64

87

137

187

237

287

337

Total net sales (milions of yen)

685043

814811

818279

997283 1067542 1142990 1223629 1348274 1486910 1639534 1809759 1997584

good UNIQLO international

92

136

183

285

387

489

591

793

995 1197

1399

1601

China

33

54

77

177

277

377

477

577

677

777

877

977

Other Asia

43

64

87

187

287

387

487

587 685043

814811

818279 1032845 1147465 1276075 1418675 1645243 1903401 2193149 2518096 2878243

bad UNIQLO international

92

136

183

205

227

249

271

313

355

397

439

481

China

33

54

77

97

117

137

157

177

197

217

237

257

Other Asia

43

64

87

107

127

147

167

187 685043

814811

818279

974876 1018517 1062069 1105531 1169022 1235944 1306295 1383687 1468118

【scenario】 probability stock price base 0.8

21272

good 0.1

28426

bad 0.1

16966

21556

target stock price

(43)

2005.8 2006.8 2007.8 2008.8 2009.8 2010.8 2011.8 2012.8 2013.8 2014.8 2015.8 2016.8 2017.8 2018.8 2019.8 2020.8 UNIQLO Japan 913 895 913 885 970 995 756 904 904 904 904 904 904 904 904 904 UNIQLO International 140 186 278 347 262 342 365 403 446 492 541 581 626 675 724 776 China 398 454 510 567 623 679 735 791 848 904 Other Asia 342 342 342 342 342 398 454 510 567 623 Others 342 342 342 342 342 342 342 342 342 342

Area per store

Standard store

766ｍ²

Large-scale store

1566ｍ²

Future Net Sales Per Square Meter（Hundred of Yen)

(44)

(45)

リスク要因

•人件費の高騰

―コストを圧迫する恐れ

•キーパーソンリスク

―柳井氏に依存した経営

―後継者問題（柳井氏は６５歳で引退？）

(46)

SPA

（Specialty store retailer of Private label Apparel ）

final sale

production

design

Production

factory

Productiv

e sector

material

manufacturer

material

procurance

designer

merchand

ising

marketing

merchandise

plan

storage

Online

Store

Internati

onal

store

Japanese

store

customer

Stock

control

(47)

0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 18,000

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

衣服小売業販売額

国内ユニクロ事業の大きな成長は期待できない

市場規模

約

10 _兆

景気後退の影響

低価格カジュアルチェーン店

が消費者に支持される

→商品単価が下落

少子高齢化の進展

→経済規模の縮小

（billion yen）

国内アパレル市場動向

(48)

0 20 40 60 80 100 120 140 160 180 海外ユニクロ店舗総数中国店舗数

特に中国に注力

ファーストリテイリング海外動向

(49)

220000

555,112

856,589

990,415

0 200000 400000 600000 800000 1000000 1200000 2001 2009 2015 2020

中間所得者層人口

（千人）

高品質

低価格

予測

中国での優位性①

(50)

High

Low

Basic

_Fashion

今後の中国の出店数が成長のカギ！！

(51)

売上高予測〈国内〉

売上高＝店舗数×１店舗当たり売上高



国内店舗数・・・年間１０店舗ずつ大型店が増加すると予測

しかし、自社競合を避けるために

大型店１店舗出店につき標準店１店舗をスクラップすると仮定

＝店舗数×1㎡当たり売上×１店舗当たり売場面積



1㎡当たり売上・・・90万円で一定と予測



１店舗当たり売場面積・・・大型店一店舗当たり１５６６㎡

標準店一店舗当たり７６６㎡と予測

(52)

売上高予測〈海外〉

売上高＝店舗数×１店舗当たり売上高

＝店舗数×1㎡当たり売上×１店舗当たり売場面積

•日本平均出店増加数パターン・・・毎年４１店舗ずつ増加

•（2009年以降）平均出店増加数パターン・・・毎年１９店舗ずつ増加すると仮定