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Last Updated: 2015.01.11

In Response to Working Condition Claims at UNIQLO Garment and Textile Suppliers in China

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On January 11, Students & Scholars Against Misbehaviour (SACOM), a Hong Kong-based nongovernmental organization, published a report claiming issues with working conditions at factories of Donguang Luenthai Garment Co., Ltd. and Pacific Textile Ltd., which supply products for UNIQLO, a member company of the Fast Retailing Group. It is Fast Retailing's understanding that the issues relate to factories of Dongguan Tomwell Garment Co., Ltd., which manufacture garments for UNIQLO in the Guangdong Province, and Pacific (Pan Yu) Textiles Limited, which supplies textiles to garment factories.

The Fast Retailing Group is committed to building long-term trust with its production partners, while at the same time respecting human rights and ensuring appropriate working conditions for the employees of its production partners. We monitor working conditions at garment suppliers periodically based on our Code of Conduct for Production Partners, which we established in fiscal year 2004. We also draw on our Environmental Standards for Textiles Factories in monitoring environmental impact of factories that supply textiles to our production partners, to minimize any impact and ensure the health and safety of workers at those facilities. We disclose results through our CSR reports and via other methods.

Fast Retailing first learned of the SACOM report at the end of last year, and we moved quickly in view of the serious nature of its claims, by conducting an independent inspection of both facilities. We confirm that, regrettably, the inspection found several problems including long working hours. On the other hand, while the inspection did not reveal some of the problems stated in the SACOM report, Fast Retailing and SACOM have different views on some of the issues described in the report. In view of this situation, Fast Retailing is continuing with the inspection, and we are requesting SACOM to open a dialogue with us as soon as possible.

Regarding the problems that were found by the inspection, Fast Retailing has urged the two factories to resolve them immediately, and we will check up on progress within one month, as part of ongoing efforts to seek improvements. We will take strict action if progress has not been made, including a review of whether to engage them in any future business. In addition, we will validate our processes for monitoring working conditions and will consider introducing the same process within the next few months at textile facilities that we do not currently monitor.