Business by Group

UNIQLO Japan is the nation's largest apparel retailer, commanding a 5.5% share of the 10.7 trillion yen Japanese apparel market. As of the end of August 2011, we were operating 843 stores nationwide. Through the enhanced development of products that utilize functional materials--including HEATTECH, Ultra Light Down jackets and Silky Dry innerwear--we continue to expand our market share. We are progressing with our plan to increase the size of individual stores by closing our smaller operations and accelerating the launch of large-scale locations with 1600 square meters of floor space. And in October 2010, we successfully opened our first domestic global flagship location, the UNIQLO Shinsaibashi Store. Moving forward, we plan to open other large-scale and flagship stores in major urban centers across Japan--including Tokyo, Osaka, Nagoya and Fukuoka--as we focus on developing and expanding our customer base.

For the year ending August 2011, UNIQLO International forecasts net sales of 93.7 billion yen, for a year-on-year increase of 28.7%, and operating profits of 8.9 billion yen, for an increase of 40.6% from the previous year. Though net sales at our international operations are still relatively small compared to our domestic market sales of approximately 600 billion yen, the increase in sales from year to year at UNIQLO International is already exceeding that of UNIQLO Japan. We are particularly excited about our regional growth prospects in Asia. For this fiscal year, we expect net sales of over 70 billion yen and operating profits of approximately 10 billion yen from Asia, as our regional operations develop into a highly profitable business. We opened our first store in Taiwan in October 2010, and the reception was very enthusiastic, allowing us to generate high sales. Moving forward, we expect to accelerate our store openings, with a particular focus on China, South Korea and Taiwan. In addition, we plan to open global flagship stores in Taipei and Seoul in the fall of 2011. At that time, we also expect to attract global attention as we open two new stores in New York: a global flagship store on Fifth Avenue and a megastore on 34th Street.

Theory

Due to the popularity of its simple designs and quality materials, our mainstay Theory brand has maintained stable growth in both the U.S. and Japanese markets. The brand has been actively opening stores in China and Hong Kong as part of its efforts to achieve growth in new markets. At the end of August 2011, Theory was operating 371 stores throughout the world. These overseas locations were generating annual net sales of approximately 50 billion yen.

COMPTOIR DES COTONNIERS

This casual, chic French fashion label for women, which is spreading its reach across Europe, Japan and the U.S., was operating 386 stores at the end of August 2011. The brand is known for promoting its core mother-daughter image by featuring real mothers and daughters selected by audition.

PRINCESSE TAM.TAM

This unique brand, known for its creative original prints and bright colors, specializes in lingerie, home wear and swimwear. Operating out of well-known department stores and boutiques, Princesse Tam.Tam boasted 159 outlets in the year to August 2011, and led by France, was available in 40 countries throughout Europe.

g.u.

Brand recognition for g.u. grew dramatically when it started selling its hit 990-yen jeans back in the spring of 2009, leading to significant improvements in profitability and per store sales. With annual net sales on the scale of 30 billion yen, the brand operates 148 stores in total as of August 2011. As it embarks on a new growth path in fiscal 2011, g.u. has opened two flagship stores: one in Osaka's Shinsaibashi district and the other in Ikebukuro, Tokyo. In addition to offering low prices, which is currently one of the brand's major strengths, g.u. is improving its ability to develop more fashionable products as it continues along its current growth trajectory.