RYOHIN KEIKAKU CO., LTD.

Information Resources

Financial InformationNon-Financial Information

MUJI REPORT

Information on medium-to-long-term value creation

Securities Report (Japanese only)

Sustainability (website)

Consolidated Financial Results

https://ryohin-keikaku.jp/eng/sustainability/

Investor Relations (website)

https://ryohin-keikaku.jp/eng/ir/

Contents

Introduction

Medium-term Business Plan

Business Strategy

Sustainability

Basic Information

Our Philosophy

3

Our History

5

The Ryohin Keikaku Group in Numbers

7

Message from the President

9

Roadmap - 2030 Vision and Way Forward

15

Message from an Executive Officer

17

Global Strategy

21

Core Product Lineup and Procurement and Production Processes

25

A Community-Based Business Model

31

Corporate Culture Reform

33

MUJI's Goals

41

A Leader in ESG Management

43

Management Team

57

Messages from Outside Directors and Message from an Outside

Corporate Auditor

61

Corporate Governance

65

Financial and Non-Financial Highlights

71

11-Year Summary

73

Consolidated Financial Statements

75

Stockholder Information

79

Corporate Information

80

Global Network

81

Editorial Policy

This report is intended to lead to dialogue with stakeholders by presenting goals for medium-to-long- term value creation, management policies, business conditions, and other information based on the philosophy and mission of Ryohin Keikaku, which is aiming to help create "a truthful and sustainable life for all."

Note: In this report, amounts and number of shares that are less than one unit are rounded down, and all ratios and percentages are rounded to the nearest whole number.

Scope of This Report

Consolidated subsidiaries and consolidated companies of Ryohin

Keikaku Co., Ltd.

Period Covered

Fiscal year ended August 2021 (September 1, 2020 to August 31, 2021)

Note: Information outside this period is reported when it is appropriate to show past

events and data or recent examples.

Forward-Looking Statements

This report contains forward-looking statements and projections. These statements and projections are based on the Company's judgments at the time the report was produced, and include risks and uncertainties. Changes in various factors could cause actual results to differ materially from forward-looking statements and projections contained herein.

MUJI REPORT 2021 2

Introduction

Our Philosophy

Our Corporate Purpose

Our corporate purpose is to contribute to the realization of a truthful and sustainable life for all through our products, services, stores and business activities that consider the ideal relationship among people, nature and products, as well as a generous human society.

Our Two Missions

Mission 1: To provide products and services that are essential to daily life, with genuine quality and ethical value, at fair and affordable prices.

Mission 2: To serve each local region by making our stores community centers that work with stakeholders to tackle local issues and make a positive impact in the region.

Our Core Value

We make efforts to reduce our environmental burden and to respect individual human rights through our manufacturing, services and actions. Through our core value of "contributing to society and people" our employees and associates will proactively respond to issues facing society and the Earth.

Our Management Policy

We will practice "public-interest and people-centered management," where each of our employees and associates contribute to the public interest through our business activities and locally rooted stores, have a sense of ownership and take leading roles in the community.

Enhancing Our Corporate Value

Through our activities, we will create a highly profitable business structure, pay taxes properly and return profits to shareholders appropriately. Furthermore, we will strive to create long-term value for the Company by making a positive impact on society together with stakeholders.

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MUJI REPORT 2021 4

Introduction

Our History

History of Ryohin Keikaku

1980

Seiyu Co., Ltd., a Japanese retail company, established Mujirushi Ryohin (MUJI) as its private brand

1983

First directly managed store, MUJI Aoyama, opened in Japan

1985

Mujirushi Ryohin Division established within Seiyu

1986

Production and procurement started outside Japan

1989

Ryohin Keikaku Co., Ltd. established

1991

Began business outside Japan (First store in U.K. and first store in Hong Kong opened)

1995

MUJI Tsunan Campsite opened

2000

Listed on the first section of the Tokyo Stock Exchange MUJI.net Co., Ltd. established (currently MUJI HOUSE Co., Ltd.)

2001

MUJI Yurakucho opened

2005

MUJI (Shanghai) Company Limited established

2006

Business transfer from IDEE Co., Ltd.

2007

First store in U.S. opened

2011

Found MUJI Aoyama opened

2012

Muji Retail (Thailand) Co., Ltd. established

2013

Joined UN Global Compact

Launched MUJI passport smartphone app

2014

MUJI Sino-Ocean Taikoo Li Chengdu, the global flagship store in China, opened

2015

Began ReMUJI recycling initiative

2016

Entered the market in India as the first Japanese retailer there

2017

Number of MUJI stores surpassed 400 both in Japan and overseas

2018

Began sales of frozen food

2019

MUJI Ginza, MUJI Diner and MUJI HOTEL GINZA opened

2020

Established production management base in Vietnam

Launched MUJI passport Pay service

2021

Made a new start with our "Second Founding"

Operating revenue

JPY 453.6 billion

Operating profit

JPY 42.4 billion

1980 -2000

2000-2015

Social Issues

Mass production, mass consumption and

Social disparity, quality scandals and

mass disposal

population decline

2016-2020

2021-

Aging society, rural depopulation and

Climate change, natural disasters and changes in daily life and

labor shortage

values due to COVID-19

Our Perspective

Activities

How things should be

The relationship between daily life and things

(objects)

MUJI was created in 1980 in Japan as the antithesis of the consumption

Following the period of high economic growth, economic disparity widened as

society. In a booming economy, expensive brand-name products were gaining

Japan entered the 21st century. MUJI sought to give customers a sense of rational

popularity, but on the other hand, poor-quality,low-priced products were also

satisfaction, expressed not with "This is what I really want," but with "This will do."

appearing on the market, causing a polarization in consumption patterns. In that

We pursued an extremely rational manufacturing process to refine quality and strip

context, MUJI was conceived as a critique of this prevailing condition, giving no-

away frills. As a company that proposes a way of living, we also began offering

brand (mujirushi) items the value of "good products" (ryohin) with the purpose of

houses, which are a symbol of daily life.

restoring a vision of products that are actually useful to customers and

maintaining an ideal of the proper balance between modern living and the

objects that make it possible. MUJI's approach to manufacturing focused on

eliminating excess, and started from selection of materials, streamlining of

processes and simplification of packaging.

Eliminate excess

Flexibility of use/

Proven environmental

How things should be

friendliness and reliability

1980-1988

1989-2000

2001- 2015

Household goods

and food

Apparel

Furniture

Bicycles

Home

appliances

Cosmetics

Campsites

Houses

products

"A truthful and sustainable life for all"

"A truthful and sustainable life for all," and beyond

With Japan's population declining, the number of workers continued

The increasing severity of natural disasters and the COVID-19 pandemic have dramatically altered people's

to decrease until the mid-2010s. Since then, however, more women

values. We believe that we should rethink the way we live. MUJI will offer products that are useful and truly

have joined the workforce. As a result, the number of households

essential, and are good for the environment, to producers as well as local communities at affordable prices.

where both spouses work has increased, magnifying the need to

We will also evolve our efforts to help solve local issues, and contribute to the harmonious coexistence and

simplify and streamline housework. MUJI responded by providing

development of daily life, culture and the environment together with local communities. For the future, we are

functional, streamlined products that help simplify and beautify

picturing "a truthful and sustainable life for all" that promotes unique economic activities, no matter how

people's lives with "conscience and creativity," and has contributed to

small, and a society with rich culture under the concept, "We're in this together."

solving social issues by proposing ideas for peaceful, relaxed living.

Emotions,

Sophistication

Connection,

tranquility and relaxation

and rationality

agreement and empathy

2021-

2016- 2020

From

products to

lifestyle

optionsInnovation of store

opening strategy

and store functions

Healthcare

(preventive care

and well-being)

Hotel

Food and

agriculture

Social capital

Mobile

sales

Culture and arts

Community

revitalization

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Introduction

The Ryohin Keikaku Group in Numbers

In the 41 years since the creation of MUJI, we have continued to design and manufacture no-frills, quality products by focusing on selection of materials, streamlining of processes and simplification of packaging. The foundation of our ideology has not changed since MUJI's inception, and like a compass pointing north, it continues to orient us toward the essential and universal aspects of daily life.

Operating Revenue

Operating Profit

JPY 453.6 billion

Operating

JPY 42.4 billion

Operating

Revenue

Profit

Price revisions, food sales and opening of new stores in residential areas

Operating profit was JPY 42,447 million as a result of ongoing efforts to

drove growth in operating revenue.

control SG&A expenses. Profit attributable to owners of parent was a

record JPY 33,903 million.

Number of MUJI Products

Approx.7,500

This number includes apparel, household goods and food items.

Cumulative Total of Registered Members of MUJI Passport and Other Apps

59.2 million

The MUJI passport app is now available in eight countries and regions, including Japan (as of August 31, 2021). Registered members of various communication apps have been included from the fiscal year ended February 2019 in Japan, and from the fiscal year ended February 2020 in mainland China.

ROE (Return on Equity)

17.3% ROE

ROE for the fiscal year ended August 31, 2021 was 17.3%. We are working to improve capital efficiency with the goal of maintaining ROE at 15% or higher.

Operating Revenue by Product Category

Other 4.0%

Apparel

Food12.0%

37.3%

Household

goods

46.7%

ROA (Return on Total Assets)

12.3%ROA

ROA for the fiscal year ended August 31, 2021 was 12.3%. We are working to improve capital efficiency with the goal of maintaining ROA at 15% or higher.

Dividend Payout Ratio

31.8%

We are committed to returning profits to our shareholders with a target annual payout ratio of 30% of consolidated earnings. The dividend for the fiscal year ended August 31, 2021 was JPY 40.0 per share.

Percentage of Women in

Management Positions

35%*

There are 221 women in management positions, including store managers at directly managed stores in Japan, accounting for 35% of all management positions.

Recycling of Textiles

66.9 tons/year*

With the aim of building a recycling-based society, we have been collecting textiles since 2010. We recovered 66.9 tons of textiles in the fiscal year ended August 31, 2021.

Number of Local Cooperation

Agreements Signed

20*

In our efforts to realize "a truthful and sustainable life for all," we are engaged in various local revitalization initiatives together with local governments and residents. As of October 31, 2021, we had 20 cooperation agreements with 17 local governments in Japan.

Number of Stores with Water Refill Stations

315*

To reduce plastic waste, we have set up water refill stations in MUJI stores. This is a free water dispensing service that uses tap water and is available to anyone who brings their own bottle. (As of August 31, 2021)

Number of Stores

1,068 stores

We operate 497 stores in Japan and 571 stores overseas. This includes licensed stores, Café&Meal MUJI and IDÉE. (As of August 31, 2021)

Countries/Regions Where We Operate

32

We operate in 32 countries and regions, including Japan. (As of August 31, 2021)

Volume of Plastic Bottles Collected

729 kilograms*

MUJI collects and recycles plastic bottles as part of its efforts to reduce plastic waste. Used bottles of Toning Water and other products sold by MUJI are collected for recycling in order to reduce plastic waste and make effective use of petroleum-derived raw materials.

FTSE Russell ESG Ratings

4.2

In June 2021, Ryohin Keikaku Co., Ltd. was selected for the first time as a constituent of the FTSE4Good Index Series and FTSE Blossom Japan Index.

* Ryohin Keikaku Co., Ltd. only

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Ryohin Keikaku Co. Ltd. published this content on 30 June 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 30 June 2022 06:21:03 UTC.