Message from the President
Hiroshi Aoi
President and Representative Director
Representative Executive Officer, CEO

VISION ENCAPSULATED IN
IMPACT TARGETS
In May 2021, MARUI GROUP put forth three impact targets. These impact targets represent a new declaration
by MARUI GROUP that clearly delineates the course it will take as a company going forward with eyes to the
future in 2050. Contemplating the happiness MARUI GROUP seeks to create and the expectations of its
stakeholders, President Hiroshi Aoi defines the impact we desire to have as being a combination of what welove, what we are good at, what we can be paid for, and what stakeholders need. In the following message,
President Aoi describes the previously unexplained vision encapsulated in our impact targets.

The question of “what exactly is Hiroshi Aoi made of?” led to the picture on the right, with President Aoi surrounded by books. President Aoi is a bibliophile ofan extraordinary degree, and nothing bothers him more than having his reading time interrupted. He turns to books when he is lost, whether at life or at work,or when he just wants a source of excitement. We have compiled a list of President Aoi’s favorite works, books and otherwise, as well as those that have left
a significant impression on him. If you see any overlap with your favorites, he would love to talk to you about them.
Mushi Toru Ko Dake ga Ikinokoru (Only Children Who Catch Bugs Will Survive), written by Takeshi Yoro, Kiyohiko Ikeda, and Daizaburo Okumoto, published by SHOGAKUKAN Inc.; Tamashi ni Mesu ha
Iranai—Jung Shinrigaku Kogi (The Spirit Needs No Scalpel—Jungian Psychology Course), written by Hayao Kawai and Shuntaro Tanikawa, published by Kodansha Ltd.; Gandhi: A Life, written by Krishna
Kripalani, translated by Tatsuo Morimoto, published by Daisanbunmei-sha INC.; Homo Delphinus: The Dolphin Within Man, written by Jacques Mayol, translated and edited by Kunihiro Seki, published by
Kodansha Ltd.; Kamome no Hi no Dokusho (Reading for Seagull Day), written by Yakei Ozu, published by Tokyo Shiki Shuppan Inc.; Rene Magritte, written by René Passeron, translated by Kunio Iwaya,
Japanese version overseen by Shuzo Takiguchi, published by KAWADE SHOBO SHINSHA, PUBLISHERS; Ryushi Kawabata Cho-Do-Kyo no Nihonga Tokubetsu Ten Botsugo 50-Nen Kinen (Extensive Collectionof Ryushi Kawabata: Japanese Painting—Exhibition Commemorating 50th Anniversary of Passing), compiled by Yamatane Museum of Art, published by the Yamatane Museum of Art; Fukuo Jiden(Autobiography of Yukichi Fukuzawa), written by Yukichi Fukuzawa, revised by Masafumi Tomita, published by Iwanami Shoten, Publishers; The Passion Economy: The New Rules for Thriving in the
Twenty-First Century, written by Adam Davidson, John Murray Publishers Ltd.; Renzoku Shashin de Kiwameru Shorinji Kempo (Shorinji Kempo Investigated through Sequence Photographs), compiled by
SHORINJI KEMPO, published by BASEBALL MAGAZINE SHA Co., Ltd.; The Blue Bird, Maurice Maeterlinck, translated by Daigaku Horiguchi, published by SHINCHOSHA; Zoku-Hyakkien Zuihitsu (More Jottingsfrom the Goblins’ Garden), written by Hyakken Uchida, published by Obunsha Co., Ltd.; The Sign of the Four, written by Arthur Conan Doyle, translated by Ken Nobuhara, published by SHINCHOSHA; You Are,
Therefore, I Am: A Declaration of Dependence, written by Satish Kumar, translated by Osamu Ozeki and Sawato Ozeki, published by Kodansha Ltd.; The Blue Book, written by Ludwig Wittgenstein, translatedby Shozo Omori, commentary by Shigeki Noya, published by Chikumashobo Ltd.; Kigyo Kachi Keiei (Corporate Value Management), written by Kunio Ito, published by Nikkei Business Publications, Inc.;
Leading Quietly: An Unorthodox Guide to Doing the Right Thing, written by Joseph L. Badaracco, translated by Naoko Natsusato, commentary by Yuki Watanabe, overseen by Haruo Takagi, published by
SHOEISHA; Doughnut Economics: Seven Ways to Think Like a 21st-Century Economist, written by Kate Raworth, translated by Atsushi Kurowa, published by KAWADE SHOBO SHINSHA, PUBLISHERS; Peter
Gabriel 1: Car, by Peter Gabriel (Real World Records); Biseibutsu Hanta, Shinkai wo Iku (Microbe Hunter, Journey to the Deep Seas), written by Ken Takai, published by Eastpress; Kazuhiko Fukuoji-Midoriko
Fukuoji no Sekai (The World of Kazuhiko Fukuoji and Midoriko Fukuoji), written by Kazuhiko Fukuoji and Midoriko Fukuoji, published Kazuhiko Fukuoji-Midoriko Fukuoji Ten Jikkou Iinkai; Froth on the
Daydream, written by Boris Paul Vian, translated by Morio Ito, published by Hayakawa Publishing Corporation; Futsubu Kaishi Dai 66 Go (Keio Futsubu School Newsletter No. 66), written by Keio Futsubu
School, published by Keio University; Zhuang Zi, written by Koji Fukunaga, published by CHUOKORON-SHINSHA, INC.; Shinpen Kaze no Matasaburo (New Matasaburo of the Wind), written by Kenji Miyazawa,
published by SHINCHOSHA; Complete Works of Gérard de Nerval V, written by Gérard de Nerval, translated by Shinichi Nakamura, edited by Takeshi Tamura and Yoshihiro Maruyama, overseen by Yasuo
Irisawa, published by Chikumashobo Ltd.; Boku no Daisuki na Aohige (Blue Beard Whom I Love), written by Kaoru Shoji, published by SHINCHOSHA; Kami no Shima—Oki no Shima (Okinoshima—Island of
God), written by Shinya Fujiwara and Abe Ryutaro, published by SHOGAKUKAN Inc.; Shinpen Ginga Tetsudo no Yoru (New Night on the Galactic Railroad), written by Kenji Miyazawa, published by
SHINCHOSHA; Pavarotti, directed by Ron Howard, Polygram Entertainment, LLC; BLUE GIANT 1, written by Shinichi Ishizuka, published by SHOGAKUKAN Inc.; Words Without Music, written by Philip Glass,published by Liveright Publishing Corporation; Twenty Thousand Leagues Under the Sea, written by Jules Verne, translated by Kiyoshi Muramatsu, published by SHINCHOSHA; Kumagusu no Hoshi no Jikan(Time of Kumagusu’s Planet), written by Shinichi Nakazawa, published by Kodansha Ltd.; Rikano Kyoshitsu—SENYA-SENSATSU Edition (Science Classroom, SENYA-SENSATSU Edition), written by Seigo
Matsuoka, published by KADOKAWA GROUP HOLDINGS, INC.; The Moon and the Bonfires, written by Cesare Pavese, translated by Hideaki Kawashima, published by Iwanami Shoten, Publishers; Sculpting intime, written by Andrei Tarkovsky, translated by Hidenaga Otori, published by Kinema Junposha Co., Ltd.; The Dogon, written by Marcel Griaule and Germaine Dieterlen, translated by Shinzo Sakai, publishedby Serica Syobo, Inc.; Operating Manual for Spaceship Earth, written by Richard Buckminster Fuller, translated by Takashi Serizawa, published by Chikumashobo Ltd.; Myoe Shonin Aizoban (Saint Myoe:
Collector’s Edition), written by Masako Shirasu, published by SHINCHOSHA; Togake Ehon Sumikkogurashi Sora Iro no Mainichi (Lizard Picture Book Sumikkogurashi Sky-Colored Days), written and illustrated
by Yuri Yokomizo, published by SHUFU TO SEIKATSU SHA CO., LTD.; Cup tte Nandakke? (What Was a Cup?), written by Ooki Sato, published by DIAMOND, INC.; Sustainable Energy – Without the Hot Air,
written by David J.C. MacKay, translated by Katsunori Muraoka, published by Sangyo Tosho Co., Ltd.; The Fossils of the Burgess Shale, written by Derek E. G. Briggs, translated by Hisashi Suzuki, Mieko
Setoguchi, Keiko Yamaguchi, translation supervised by Terufumi Ono, published by Asakura Publishing Co., Ltd.; Blue, directed by Derek Jarman, distributed by UPLINK CO.; Imi ga Nakereba Suingu wa Nai(It Don’t Mean a Thing, If It Ain’t Got That Swing), written by Haruki Murakami, published by BUNGEISHUNJU LTD.; The Catcher in the Rye, written by J. D. Salinger, translated by Takahashi Nozaki, published by
Hakusuisha Publishing Co., Ltd.; Shinpen Miyazawa Kenji Shishu (New Collection of Poems by Kenji Miyazawa), written by Kenji Miyazawa, edited by Taijiro Amazawa, published by SHINCHOSHA

Please refer to the following website for Book Lounge, a book blog updated on an unscheduled basis by bibliophile Hiroshi Aoi (in Japanese only).
www.to-mare.com/bl/

04

05

Message from the President

Five Years Supported by Stakeholders

Figure 1: C oncept of Ikigai Referenced When
Defining Impact Targets

Figure 2: MARUI GROUP’s Idea of Impact

Nearly two years have passed since the outbreak of theunmet. I would like to apologize for our failure to live up

COVID-19 pandemic. I would like to extend my sincere

to the expectations of stakeholders. Regardless of thisWhat we

What wecondolences to the families and friends of those who

failure, a look back at these five years will reveal that we

love

love

have succumbed to the virus and my thoughts andhave accomplished almost all of the goals we put forth atprayers to all those impacted by the pandemic. Our daily

the start of the plan. We completed the transition to fixed-

lives have undergone great change during the pandemic

term rental contracts in the Retailing segment, stabilizing

as we have faced various restrictions impeding our free-earnings. We also began the move toward stores that do

dom of movement and other activities. A virus, a force ofnot sell. In the FinTech segment, meanwhile, we spread

What we arenature beyond human control, has brought society andour network of EPOS card application desks acrossgood atthe economy to a screeching halt. This unprecedented

Japan, allowing us to effectively double our businesssituation has provided us with a chance for introspection.

scale. We also launched a new initiative not envisioned

Many have taken this opportunity to reflect on theirat the start of the medium-term management plan:

own lives or to look to the future, and these acts of intro-

co-creative investments. These investments allowed

spection are gradually transforming the world. I believe

us to forge ahead with investment in and co-creation withthat society is currently undertaking a bold change ofstart-ups while incorporating various new innovations.

course, redirecting its ship toward unknown seas and theAlso, on the environmental, social, and governance (ESG)

paradigm shift that has been spoken of thus far. The

front, we advanced an array of initiatives based on MARUI

pandemic still has no end in sight, and ongoing vigilance

GROUP’s 2050 Vision, which was announced in 2019.

is required. Regardless, I am already confident that

These initiatives have won strong praise, including the No. 1

beyond this pandemic the world will take a course that is

ranking in the global retailing field in the Dow Jonesvery different from the one we have followed up until now.

Sustainability Index.

Amid this great upheaval, MARUI GROUP reached thePassionMissionIkigai
Profession

What the world

What we areneeds

good at

IMPACT

What stakeholders

need

Vocation

What we can be

What we can be

paid forpaid for

The intersection between the four circles in the diagram above represents Ikigai. This concept places true happiness at the intersection
between our personal happiness and what the world needs.

A major characteristic of MARUI GROUP’s idea of impact is how itemphasizes what stakeholders want above what we love, what we aregood at, and what we can be paid for.

Source: Ikigai diagram, Marc Winn, May 2014

Our strong progress over these five years would haveend of its five-year medium-term management plan in

been impossible if not for the support of all of our stake-March 2021. The progress of this plan was smooth

holders, namely, customers, employees, investors,

put our own spin on this idea. To explain our spin on thisthrough to its fourth year. However, the impacts of thebusiness partners, communities and society, and futureidea, I would like to have you look at some diagrams.

COVID-19 pandemic in the plan’s fifth year left our targets

generations. I am truly grateful for your support.

Concept of Ikigai Shaping Impact Targets

06

Message from the President

In tailoring this idea of Ikigai to MARUI GROUP, we
reframed it from the perspective of a company, replacing

One of the diagrams we referenced when considering

the factor of what the world wants with what shareholders

our impact was the Ikigai diagram, which I am quite fond ofwant. This reframing gave form to MARUI GROUP’s idea of(see Figure 1). Ikigai is a Japanese word that refers to one’s

impact (see Figure 2). This idea is similar to the idea of

meaning for living. As shown in this diagram, Ikigai lies atpurpose, which has been gaining a lot of attention recently.

the intersection of four factors: what you love, what you are

However, the idea of purpose refers more to one’s personal

MARUI GROUP’s journey to the future has only just begun.

primarily focused on business strategies and capital mea-

good at, what you can be paid for, and what the world

sense of purpose. Different from this self-centric idea, ourIn May 2021, we unveiled our new medium-term manage-sures. The new plan adds the perspective of our impact

needs. What is most amazing about this concept of Ikigai

idea of impact is focused on stakeholders, looking at what

ment plan, which is meant to guide our journey to newalongside these more conventional areas of focus. The

is that its placing of true happiness at the intersection

we can do to respond to the needs and wants of stakehold-heights. The new plan covers the five years leading up toidea of impact, which refers to the social changes brought

between our personal happiness and what the world needs

ers. I feel that this focus is more closely matched to MARUI

2026. The aspect of this plan that has me the most excitedabout by our activities, has been an area of focus for NPOs

coincides perfectly with MARUI GROUP’s concept of pro-GROUP’s philosophy and corporate culture.

is the incorporation of the new concept of impact targets.

and other agents of the social sector for some time now.

moting harmony between the interests of different

The previous medium-term management plan was

MARUI GROUP is a for-profit company. We therefore havestakeholders.

In this regard, MARUI GROUP has defined three impact
targets together with six priority measures. The three07

Message from the President

Message from the President

Figure 3: Clear Future Envisioned through Impact Targets
ThemesCreating a future for future
generations together

Priority Measures

Assistance for self-actualization
Creating happiness for individuals
Support for individual preferences

Provision of venues for co-creation
Creating platforms for co-creation

Key Performance Indicators

CO2 emissions reductions:
Realization of a carbon-free society More than 1.0 million tons
Number of individuals provided with circular
lifestyle options:
Creation of a circular economy
More than 1.0 million customers

Facilitation of work styles that aretransparent to both internal andexternal stakeholders

Number of individuals provided with financial
services based on co-creation of creditability:
More than 4.5 million customers
Number of individuals provided with support
for individual preferences:
More than 3.5 million customers
Number of new businesses created:
Aggregate total of 20 or moremanagement over the coming five years will be one thatmodel, a new governance model being promoted thataligns with these three considerations.

entails actively involving external directors in manage-

Our first step in practicing such management was toment strategy planning and other facets of management.

welcome stakeholders to the Board of Directors, which is

To this end, we have established the Strategy

the very heart of management. Specifically, we appointed

Committee as a new advisory body to the Board of

Mr. Yasunori Nakagami, representative director and CEO

Directors. This committee is chaired by Mr. Nakagami.

of Misaki Capital Inc., as an external director to act as a

Meanwhile, Mr. Pedersen has taken up the position

representative for shareholders while also making sus-of chairman of the Sustainability Committee, where

Return on equity:
13% or more

tainability expert Mr. Peter David Pedersen an external

Dr. Kojima serves as a member. Another member of the

Return on
invested capital:
4% or more

director. From within the Company, Dr. Reiko Kojima, aSustainability Committee is Ms. Kyoko Ozawa, first chief

company physician and well-being expert, became our

future officer of Euglena Co., Ltd., who serves as a repre-

newest internal director. The corporate governancesentative of future generations. These moves represent

system created by the inclusion of these new directors will

our efforts to practice the principles of stakeholder capi-

move us toward the approach for stakeholder-oriented

talism, an idea that began gaining global attention aroundmanagement that we envision. At the same time, we are2019, as part of corporate management.

Earnings per
share:¥200 or more

Number of co-creative projects with younger
generations:Aggregate total of 150 or morealso taking steps to incorporate elements of the Board 3.0

impact targets are creating a future for future generations

profits and capital efficiency that they expect. Our path

together, creating happiness for individuals, and creating

toward creating this type of monetary value together withplatforms for co-creation (see Figure 3). We have also

the non-monetary value sought by other stakeholders is

identified concrete initiatives to be advanced with regard

our value creation narrative.

Figure 4: Relationship Between Desired Impact, Stakeholder Value, and Corporate Value

Customers

to each of the six priority measures (see page 18). Central

Plans for more specific initiatives and targets are cur-to the formulation of these impact targets, measures, andrently being developed by the relevant Group companies

initiatives was the development of a clear value creationand divisions with the goal of unveiling these elements

narrative for increasing stakeholder happiness and inter-within the fiscal year ending March 31, 2022. In otherests. Our impact targets do not entail the de-emphasizing

words, this new medium-term management plan will notof shareholder interests for the sake of the happiness of

be finalized at its start. Rather, we have developed aother stakeholders. No, we must contribute to the inter-framework for this plan, which will be developed flexibly

What we are

ests and happiness of all stakeholders. Shareholders are,as an ongoing project while we move forward.

good atWhat welove

Business
partners

Investors

IMPACT

Stakeholder
Value

What stakeholders

needof course, stakeholders, and we must therefore realize theCommunities
and Society

Governance Focused on Six Stakeholder Groups for Achieving Impact Targets

08

This new medium-term management plan is incredibly

these interests and happiness. Going back to the impact

exciting for us. The reason for this excitement is that the

diagram, we see that our definition of our desired impact,

approach toward management presented by the plan isthe combination of what we love, what we are good at,congruent with the ambitions we have pursued thus far.

what we can be paid for, and what stakeholders need,

Improvement of corporate value is a major managementaligns exactly with our definition of corporate value

priority for MARUI GROUP. To us, corporate value entails(see Figure 4). This means that, for MARUI GROUP, ourcreating harmony between the interests and happiness

desired impact is equivalent to stakeholder value andof all of our stakeholders and growing the intersection ofconsequently corporate value. Our approach toward

Employees

What we can be

paid forFuture generations

The definition of MARUI GROUP’s desired impact aligns perfectly with the Company’s definition of corporate value as entailing creating harmony
between the interests and happiness of all of its stakeholders and growing the intersection of these interests and happiness, and thus with thedefinition of stakeholder value. MARUI GROUP’s approach toward management over the next five years will be one that aligns with these threeconsiderations.

09Message from the President

Message from the President

True Reason for Prioritizing Ongoing, Long-Term Dividend Increases

Co-Creation with Younger Generations and New Work Styles

Some may wonder why we decided to invite shareholders

the secretariat of the foundation about their plans for theWe have embarked on a new journey to achieve our desired

native younger generations if we hope to effectively utilize

to serve on the Board of Directors as part of practicing

coming year after the cut, they said that the number ofimpact. The part of this journey that I look most forward tothese technologies.

stakeholder-oriented management. One reason for thisnew scholarship recipients in the next fiscal year would

is joining hands with others who share our philosophy andmove is something that I touched on earlier: our approachbe less than half of previous years. In my shock, I asked

also seek the same desired impact. When we join hands

MARUI GROUP must embrace new work styles. This

toward stakeholder management is not one that denies

them why. The response was simple: MARUI GROUP had

with such individuals, we engage in the process of co-process should entail broadening our perspective. Rather

the interests of shareholders. Rather, we look to practicehalved its dividend payments. Concern was also voiced

creation. MARUI GROUP’s approach toward co-creation

than primarily requiring people to work inside the organi-management that emphasizes all stakeholders, including

that, if the low level of dividend payments continued, thegoes beyond simply passively responding to the requests

zation, we will need to promote more open work styles

shareholders. However, that is not the only reason. We

foundation might be forced to reduce payments to bothof stakeholders; we seek to create the desired impacts bythat allow people to work outside of the Company.

also believe that emphasis on the interests of sharehold-current and new scholarship recipients.

actively working with those who share our ambitions. In theInstead of mainly hiring new graduates, we should recruit

ers will not necessarily lead us to neglect the interests of

I was aghast. This was the first time I was forced topast, we have practiced such co-creation when developing

mid-career individuals and adopt a wider range of employ-other stakeholders. In fact, it is true that shareholders are

acknowledge exactly how reductions to dividend pay-

stores and products, and we have recently begun co-cre-ment styles to allow us to secure the ideal members for

not a homogeneous group. People often think of share-

ments impact shareholders and those related to them.

ation with start-ups. Through our co-creative activities withany given project. Such employment styles could include

holders as being people among the wealthier classes, but

I thus pledged that, once we had recovered our perfor-

around 40 start-ups, we are pursuing open innovation, an

contract employees, individuals using us for secondary

there is actually a wide range of shareholders. For exam-

mance, we would never lower dividend payments again.

approach toward innovation that has been deemed quite

employment, non-traditional temporary employment

ple, pension funds, such as the national Government

Since then, we have continued to prioritize ongoing, long-difficult, with few success stories to learn from. These

schemes, and long-term internships. We also look to

Pension Investment Fund as well as the funds of compa-

term dividend increases, raising dividend payments for

efforts are spearheaded by more than 200 employees

make our work styles such that talented and motivatednies, are also shareholders. The gains generated by thethe nine consecutive years following the recovery ofassembled to form co-creative teams as part of our com-individuals will be able to assume leadership roles regardlessequity investments of these funds are used to pay theperformance, even in the fiscal year ended March 31,

mitted approach toward co-creation, which is graduallyof their age or numbers of years of service. Ultimately, we

pensions of people today and will also fund the pensions

2021, during which we were heavily impacted by the

producing results (see page 68).

want to develop work styles that frame collaboration as

of future generations.

COVID-19 pandemic. My commitment to increasing divi-

An area of focus going forward will be co-creation withour business in order to pursue co-creation that blurs the

I would like to take a moment to talk about one suchdend payments is underscored by the difficult realization

younger generations. If we are to achieve our impact

shareholder: the AOI SCHOLARSHIP FOUNDATION (seefrom this experience. Accordingly, we cannot view man-targets of realization of a carbon-free society and creation

page 116). This public interest foundation was estab-agement based on a dichotomy between shareholder

of a circular economy (see page 26), we will no doubt

immediate results. Nevertheless, we are committed tolished by MARUI GROUP founder Chuji Aoi using stock

interests and social contributions. It is not just scholar-

need to call upon the strength of younger generations,

gradually evolving to give rise to a co-creative ecosystem.

he personally held, and it is currently our ninth largest

ships that are affected by shareholder interests. The

who could be said to be sustainability natives. Moreover,I look forward to co-creating the future together with thoseshareholder. The AOI SCHOLARSHIP FOUNDATION uses

interests of shareholders are also connected to an

we hope to offer assistance for self-actualization and

who take an interest in our philosophy and desired impact

dividend payments from MARUI GROUP to provide

array of social welfare frameworks, including pensions

support for individual preferences as priority measures

after reading Co-Creation Management Report 2021.

scholarships totaling ¥120 million to approximately 200

and insurance.

for accomplishing our impact targets (see page 40).

In this manner, the interests of shareholders are often

Providing this assistance and support will require the use

one of the foundation’s councilors. Supported by the

directly linked to the interests of other stakeholders, andof technologies such as the internet, which lends itself tostrong performance of MARUI GROUP, we were able tothe interests of shareholders eventually affect the inter-

individual empowerment, and blockchain, which is driving

offer scholarships to 70 new individuals during the fiscal

ests of society, which in turn then have an influence on

the development of an independent and decentralized

year ended March 31, 2021, bringing the number of schol-the interests of shareholders. We therefore look to basesociety. We have to practice co-creation with the digitalarship recipients to a new record high.

our approach toward management on this relationship. I

high school and university school students each year. I am

10

To pursue such co-creation with younger generations,However, not all of my memories surrounding the AOI

believe that this type of management is a responsibility of

SCHOLARSHIP FOUNDATION are rosy. MARUI GROUP

a listed company. By accomplishing our immediate goals

found itself facing a management crisis shortly after

and then taking the next step down this path, I hope to

I became president. During this period, we posted two

further facilitate stakeholder-oriented management bylosses, forcing us to cut dividend payments to ¥14 per

inviting representatives of future generations, customers,

share, half the prior level of ¥28 per share. When I asked

and employees to the Board of Directors.

boundaries of the Company.
These will not be easy tasks, and we cannot expect

October 2021

President and Representative Director
Representative Executive Officer, CEO

The president’s message from Co-Creation Management Report 2020 can be found below.
We seek to contribute to both interests and happiness, as opposed to sacrificing one for the other. (Fiscal year ended March 31, 2020)
www.0101maruigroup.co.jp/en/ir/message/ceo/2020.html

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