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Last Updated: 2023.01.11

Fast Retailing to Revise Employee Remuneration - Greatly strengthening investment in personnel in line with global standards

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Fast Retailing today announces that in order to remunerate each and every employee appropriately for their ambition and talents, as well as increase the company's growth potential and competitiveness in line with global standards, from March 2023 the company will revise its remuneration system, greatly strengthening its investment in personnel.

Fast Retailing has already been advancing this revision in a number of markets where it operates around the world. In Japan especially, where remuneration levels have remained low, the company is significantly increasing the remuneration table, as well as reexamining its HR system, to better enable it to compensate individual employees based on their growth, ambition and ability to contribute to the business. This will include employees from headquarters and corporate departments responsible for the functions of the company's global headquarters, as well as employees working in stores. Fast Retailing aims to establish a management that can better remunerate employees so that the resulting growth of individuals and the company will lead to even greater global competitiveness.

Specifically, the company will define the desired abilities and requirements for each occupational category and level and increase the remuneration level of grades assigned to each employee by up to 40%. Fast Retailing plans to take this opportunity to match the reality of the company's flat, highly maneuverable management structure. With this in mind, remuneration will comprise such elements as base pay and a bonus determined by performance results for each period, while position-based allowances currently existing in Japan will be eliminated.

As an example of increased remuneration in Japan, the monthly salary of a newly joining university graduate employee will increase from the current ¥255,000 to ¥300,000 (an annual salary increase of approximately 18%), and the salary of someone taking on a new role as store manager in their first or second year will increase from ¥290,000 to ¥390,000 (an annual salary increase of approximately 36%). For other employees, the company plans to increase annual salaries by as much as 40%.

Going forward, the new remuneration of each employee will be decided by globally aligned grade criteria. Factors such as work performance and results, ability to contribute to the business, ambition and growth will be defined once again, and a fair grade evaluation will be realized through meticulous performance evaluation from one's supervisor, and a thorough evaluation from upper management and the HR Department.

Prior to this forthcoming revision, the hourly wages of store staff in Japan were already amended in September last year, with the objective of paying appropriate compensation in line with the expectations, responsibilities and abilities of staff who provide the utmost service to customers. While maintaining the existing career path from store staff to store manager or manager in a corporate role, Fast Retailing will similarly evaluate and nurture interested staff to become sales professionals able to provide dedicated support to stores in the all-important area of customer service.

Additionally, Fast Retailing will reform the way its organization works, so that the headquarters of each market can cooperate on both a global and local level to develop an organizational structure and workstyle that promotes problem solving. The company intends to achieve a flat structure with high maneuverability, where anyone can bring to light problems from the viewpoints of customers and the entire company, and raise issues candidly, regardless of what department they are part of, becoming one team that includes everyone from staff to executives and promoting the creation of a corporate culture that works to implement solutions.

Fast Retailing will reform workstyles and the entire organization, so that every employee can work to the best of their ability towards generating results.

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