I am the grandson of our founder, and I became president in 2005. I get excited when I think about our future. Hiroshi Aoi, President
I have supported the development of management teams at venture

and Representative Director, Representative Executive Officer, CEOcompanies for nearly two decades. Some call me the “Godmother of Venture Companies.” Etsuko Okajima, External Director

Calling

upon the relationship I formed through holding public office, I will continue to exercise my motto of “wisdom and action.” Yoshitaka
Taguchi, External Director

I hope to create new value with IT through collaboration with start-up companies boasting innovativeideas. Masahiro Muroi, External Director

I am helping developing stores that do not sell while myself feeling excited about MARUIGROUP’s co-creation of value. Masao Nakamura, Director, Senior Managing Executive Officer

Being social is indispensable to investor rela-tions work, but I feel that earnestness and justness are even more important when it comes to co-creating value with shareholders.
Hirotsugu Kato, Director, Managing Executive Officer

I am committed to seeing challenges for what they are and overcoming them withmy team and more smiles than are probably necessary. Masahisa Aoki, Director, Senior Executive Officer

I am an oddity at MARUIGROUP, joining from a science background with a major in architecture because I wanted to shape the Marui stores that are at theforefront of trends. Yuko Ito, Director, Executive Officer

I committed myself to American football throughout my high school anduniversity days before joining a bank in 1989 because I found the wide network and people appealing. Hitoshi Kawai, Audit & Supervisory
Board Member (Full time)

I am a bit stubborn and lack flexibility, but this is also tied to my commitment to seeing things throughand never giving up until the job is done. Nariaki Fuse, Audit & Supervisory Board Member (Full time)

MARUI GROUP’s co-creative invest-

ments are truly matched to the times. I too will aspire to respond to change through flexible thinking. Takehiko Takagi, External Audit &Supervisory Board Member

I see myself as cheerful and positive. I also view the COVID-19 pandemic as an opportunity to acceler-ate digitization and the diversification of work styles. Yoko Suzuki, External Audit & Supervisory Board Member

Having joined in 1977, I am

MARUI GROUP’s oldest employee. I am constantly reminded of the fact that adopting others’ perspectives is the starting point for

CO-CREATION SUSTAINABILITY MANAGEMENT

co-creation. Motohiko Sato, Executive Vice President

The first step in co-creation is to learn things that you lack from others while

being accepting of others, both inside and outside of the Company. Tomoo Ishii, Senior Managing Executive Officer

I am first and fore-

most a social person. My social nature has benefited me greatly as new encounters have led to new businesses or broadened myown horizons. Toshikazu Takimoto, Managing Executive Officer

I am sometimes too meticulous. Going forward, I hope to strike a bal-ance between this meticulousness and bold action to enact MARUI GROUP’s philosophy of “equate the development of our people
with the development of our company.” Yoshinori Saito, Managing Executive Officer

I am optimistic and I love pondering new ideas. I

can imagine nothing better than assembling a diverse team and capitalizing on their individuality to give rise to new ideas. Hajime
Sasaki, Senior Executive Officer

MARUI GROUP is supported by countless stakeholders, and I hope we can repay them for this

support through our business. Masahiro Aono, Senior Executive Officer

I am working to acquire building manager qualifications tospur my own growth, and I am currently fighting to understand the specialized terminology and complex machine structures.
Yoshiaki Kogure, Executive Officer

When people first meet me, they often think of me as methodical and stern, but the more they get

to know me, the more they realize that I can be quite easygoing. Mayuki Igayama, Executive Officer

I respond to change with thepositivity and ideation needed to turn adversity into opportunities, and this drive inspires me to create maximized services evenin the midst of the COVID-19 pandemic. Junko Tsuda, Executive Officer

My personality could be said to be cheerful, soft, spirited,driven, and flexible. I greatly enjoy sharing in the feelings of others. Miyuki Kawara, Executive Officer

People say that I pursue what

I think is right with conviction and offer advice from a fresh perspective to those who are lost. Tatsuo Niitsu, Executive Officer

I seemyself as a little optimistic. IT systems require a careful approach, but too much caution can halt progress. A sense of balance isimportant. Takeshi Ebihara, Executive Officer

At MARUI GROUP, co-creation is our passion, and I am happy to be able to work toward

our shared goal of making society happier together with my colleagues. Reiko Kojima, Executive Officer

This experience let me feelthe joy of directly pleasing customers. This prompted my decision to join MARUI GROUP in 1996, as I recognized that this company would let me contribute to communities by opening new stores. Akikazu Aida, Executive Officer

Please refer to pages 106–114 for the unique self-introductions of all officers in their entirety.

76

77

M
MESSAGEI have helped a number of large companies transform

start-up companies often lack. Accordingly, I see potential

themselves. Everyone understands the need for open inno-

for a symbiotic relationship between start-up companies

vation and disruptive innovation, but large companies tend

and MARUI GROUP. For this reason, I think that co-creating

to fail in this regard. This is because many of these compa-

an ecosystem with start-up companies was the best pos-nies view such innovation purely as a means of utilizing

sible decision.

their existing infrastructure. They often become satisfied

Message from an External Director

just by investing, and these investments thus fail to produce
results. MARUI GROUP, meanwhile, approaches such investments from a different perspective: the perspective ofI think that co-creating an ecosystemwith start-up companies was the best­possible decision.

Agricultural Tribe Approach Toward
Ecosystem Development

creating something new with investees. For this reason,
although MARUI GROUP’s co-creative investments may

I am not sure whether this is the best way to put it, butseem like standard corporate venture capital investments

MARUI GROUP’s approach toward developing an ecosystem

based on external standards, the way in which the Company

is similar to that of an agricultural tribe. This approachinteracts with investees is actually completely different.

differs from that of the “hunting tribe” approach of acquiring

I therefore think these investments constitute an entirelycompanies that are prospering as MARUI seeks to plow its

new form of investment.

fields together with start-up companies and other stakeholders. As MARUI GROUP is developing a business, it must also
focus on raising lifetime value. At the same time, however,Prescription for MARUI GROUP:
Cultivate People Who Can Co-Create Businesses
with Start-up Companies

Co-Creative Investment Business Springing from
Previously Plowed Fields

MARUI GROUP envisions an inclusive and sustainable world.
This can be seen in its bold decision to cancel all rent payment for tenants during the store closures in response to
the COVID-19 pandemic. The co-creation of philosophy of

One frequent point of discussion at meetings of the Board

viewing business partners as inseparable from its businessI have watched as MARUI GROUP’s business model hasof Directors is how MARUI GROUP and other major compa-

has truly permeated all corners of the Company’s opera-

evolved over the years, from transitioning from an earnings

nies can cultivate human resources with an entrepreneurial

tions. Rather than pursuing sharp growth in revenue andstructure driven by retailing to one spurred by fintech andspirit. People who join MARUI GROUP often do so out of aincome, MARUI GROUP adopts a longer timetable, focusing

converting department stores to shopping centers using

desire to serve customers. They are therefore proficient at

on creating corporate value over the medium-to-long term

fixed-term rental contracts. It feels like MARUI GROUP is

improvement and ongoing innovation. However, responding

together with stakeholders, even if it must weather somealways a step ahead of the times. Co-creation sustainability

to extreme circumstances requires an entrepreneurial spirit,

temporary downturns as a result. I think this is a view thatmanagement and stores that do not sell are both ideas put

which differs from that of MARUI GROUP’s employees, tomany investors can get behind.

forth by management while assessing contemporary trends.

drive the disruptive innovation.
What should the Company do, then? My prescription forNow, the Company is embarking on the new journey of

The definition of happiness is transforming in the midst of
the COVID-19 pandemic, and people’s values are becoming

developing a co-creative investment business, having estab-

MARUI GROUP is this: cultivate people who can co-create

more apparent than ever. This is perhaps because thelished D2C & Co. Inc. for this purpose. However, this busi-

businesses with start-up companies. An entrepreneurial

people whose sense of value had become dull, causing

ness can be traced back a little further. It was a few years

spirit entails a strong desire to change the world and a boldthem to forget their own likes and dislikes, have had thisago when MARUI GROUP earmarked ¥30.0 billion for invest-

commitment to access the risks inherent in such undertak-sense resharpened. I think that we will see an increase inments, directing these toward start-up companies andings. This spirit can be found in the entrepreneurs at start-up

the number of people that realize they have tastes that go

seconding employees to them. It could be said that thecompanies. Working with these entrepreneurs will require

beyond the ordinary going forward. This trend, I expect, has

co-creative investment business is the fruit that has sprung

MARUI GROUP employees to exercise understanding andthe potential to increase MARUI GROUP’s connection with

up in a clearly visible form from the fields that the Company

empathy toward them. MARUI GROUP employees excel at

the start-up companies with which it engages in co-creation

plowed previously.

discovering the needs of customers and gaining insight

and with other stakeholders that resonate with its values.

through their interactions on the sales floor. Moreover, they

These connections will move MARUI GROUP closer todeliver incredibly high-value user experiences through thedeveloping the ecosystem it envisions.

Etsuko Okajima

physical venue of stores. This is an area of expertise that

External Director(Appointed in June 2014)
Nominating and Compensation Committee

78

79

M

Corporate Governance for Co-Creating Corporate ValueMESSAGEMARUI GROUP positions the reinforcement of corporate gover-oversees the Environment and CSR Committee, an organizationnance among its most important management tasks, and we

responsible for relevant risk management and other relevant

aspire to practice sound, highly transparent, profitable, andprocedures. In addition, two new Audit & Supervisory Board

efficient management. As a Company with Company Auditor(s),members, one of whom is a woman, were appointed at theas described in the Companies Act of Japan, MARUI GROUP has

Ordinary General Meeting of Shareholders held in June 2020 toin place its Board of Directors and Audit & Supervisory Board. Infurther strengthen the Company’s management team.

Messages from New Audit & Supervisory Board Members

I worked at banks and securities companies for a total of 31 years. During this time, I was provided
with plentiful opportunities to take part in new initiatives and innovations, often times endingin success. For example, I was involved in expanding the corporate bond market, developing
new products and businesses, and creating start-up company ecosystems. These initiatives

Furthermore, the Company has established the MARUI GROUP

addition, the Company has established the Management
Committee, the highest decision-making body; the Nominating

Corporate Governance Guidelines, which compile our basic

and Compensation Committee; five committees that oversee

corporate governance and initiative policies, and publishes

high-risk areas pertaining to management; and the Compliancecorporate governance reports that provide details on the imple-

Promotion Board, which oversees these committees. For thementation of these policies. The Company is committed topurpose of promoting co-creation sustainability management,

further strengthening corporate governance going forward.

were in part a response to the deregulation of the financial industry. More importantly, though, they
were also undertakings that contributed to the resolution of social issues and to the public good.
The understanding of the customers and colleagues I met during my time at banks and securities
companies empowered me in my co-creative initiatives. I also learned an important lesson when
I was president of the Kyoto branch of a bank, which was how growing together with customers
over the long term, as opposed to chasing short-term gains, and acting together with colleagues

we have also established the Sustainability Committee, which

Directors

Audit &
Supervisory Board Members

8*

External(Independent)

united by a shared vision, can create massive and lasting value for society.

4*

Executive Officers

External(Independent)

3

Nominating andCompensation
Committee Members

19

3

4

Hitoshi Kawai
Audit & Supervisory Board Member (Full time)(Appointed in June 2020)

External(Independent)

Female2

MARUI GROUP has continued to transform itself to match changes in the times, all whileremaining true to its core value of the co-creation of creditability. Today, it is endeavoring to cocreate a society in which future generations can shine together with stakeholders throughout thecurrent society. As part of this quest, MARUI GROUP looks to evolve into an intellectual creationcompany through its business model, merging retailing, fintech, and now co-creative investment.
I joined MARUI GROUP in June 2020. When I speak with President Aoi and other members of2

the Company, I am always overwhelmed by a sense of anticipation as I imagine MARUI GROUP’s
various initiatives and the results they will create. I hope to contribute to these efforts in my capacity as an Audit & Supervisory Board member, and I look forward to growing together.

* Three, or 25%, of the 12 directors and Audit & Supervisory Board members are women.

Ordinary General Meeting of Shareholders
Appoint / Dismiss

Appoint / Dismiss

Appoint / Dismiss
Select / Discharge

Audit

Audit & Supervisory Board

Board of Directors

ReportCoordinate

Nominating andCompensation
Committee

Sustainability Committee

ReportManagement
Committee

Report Direct

Environment and CSR Committee

I have held positions as an outside director and an outside auditor at a number of companies since

President
Report2003. In this position, I became increasingly interested in the concepts of ESG management andDirectco-creation sustainability management approach. I accepted the invitation to be an external
Audit & Supervisory Board member at MARUI GROUP because I hoped that, by supervising the(including 3 directors and 2 Audit & Supervisory Board members)

co-creation sustainability management in my capacity, I could contribute to the improvement

Report / Direct

Coordinate

Public Relations IR Committee

Chairman: Senior Managing Executive Officer Members:12

Internal Control Committee

Chairman: Senior Managing Executive Officer Members: 16

Information Security Committee

Chairman: Executive Vice President

Members: 13

Safety Control Committee

Chairman: Senior Executive Officer

Members: 13

Insider Trading Prevention Committee

Chairman: Managing Executive Officer

Members:  6Communicate

Audit

Accounting Auditor

Five Committees

MARUI GROUP Code of Conduct

ReportReport /Participate

the SDGs. With this interest, I was fascinated when I heard of MARUI GROUP’s forward-looking

Compliance Promotion Board
Chairman: Representative Director,
Representative Executive Officer
Members: 17

Report / Participate

Legal Advisor• Executive in charge of audits• Executive in charge of internal control

General Affairs Department

Consult

Head Office
Divisions• Executive in charge of legal affairs• Executive in charge of personal information protection

80

MARUI GROUP Corporate Governance Guidelines
www.0101maruigroup.co.jp/pdf/
cgg_20200730_en.pdf

to oversee management decisions to ensure that they are being made transparently and impartially with consideration paid to the perspective of future generations and other stakeholders. In mycase, in particular, I want to use my expertise as an attorney in the monitoring of the Company’s
compliance and other internal control and risk management systems. I also hope to go about my

Yoko Suzuki
External Audit & Supervisory Board Member(Appointed in June 2020)

Stakeholder values and lifestyles are changing amid the COVID-19 pandemic. This trend isincreasing the need for inclusive, forward-looking management that is respectful toward diversity.

ReportIn this environment, I am committed to working together with MARUI GROUP to realize its vision ofConsult
As of October 1, 2020

Committee Membershipwww.0101maruigroup.co.jp/pdf/
committee_members_en.pdf

A specific role of external Audit & Supervisory Board members is to utilize their outside perspectiveof Directors, the Audit & Supervisory Board, internal auditing divisions, and the accounting auditor.

Group Companies
Stores / Specialty Stores / Offices

Internal Notification SystemI think that Audit & Supervisory Board members are increasingly being expected to play a role indriving corporate governance reforms as well as in implementing defensive governance measures.

duties while practicing extensive communication through coordination with and visits to the Board

Audit

Audit Departmentof the Company’s medium-to-long-term corporate value.

providing a platform for supporting the happiness of all stakeholders, including future generations.

MARUI GROUP Corporate Governance Reportwww.0101maruigroup.co.jp/pdf/cgr_en.pdf

81Agenda Items Discussed by the Board of Directors

Evaluations of the Board of Directors’ Effectiveness

The major agenda items discussed by the Board of Directors in the fiscal year ended March 31, 2020, are detailed in the table below.

The Company has been performing annual evaluations of theCompany began holding meetings of the Board of Directors in

In addition to resolutions and reports, free and open discussion and exchanges of opinion took place focused on issues pointed out

Board of Directors’ effectiveness since the fiscal year ended

the form of internet conferences in the fiscal year ended Marchby external directors and ESG and other themes related to long-term improvements in corporate value.

March 31, 2016, with the aim of improving the effectiveness of

31, 2020. Internet conferences will continue to be used as a tool

the Board of Directors. In these evaluations, all directors andfor facilitating timely discussion, resolutions, and information

Audit & Supervisory Board members complete a self-evaluation

provision.

Resolutions and Reports

First
Quarter

SecondQuarter

Third
Quarter

FourthQuarter

Discussion Themes•C hange to resolution regulations•C apital and business alliances•R evision of officer compensationand medium-to-long-term incentives•E stablishment of Sustainability Committee•C ontent investment trends•W ellness management• Cross-shareholdings• Investment products•P ositioning of Co-Creation Management
Academy program participants• Advisors• Co-creation with start-up companies• Organization reforms and relocation of officers
and managers• Management practices for EPOS cards
emphasizing ongoing use• Establishment of new company• Experience-oriented store initiatives• MARUI IR DAY report• Shared living residence business initiatives• Fund procurement report• Increase in investment in new company• Issues at subsidiaries and future initiatives• Delegation of authority to executive officers• Evaluation of the effectiveness of the Boardof Directors• Organization reforms and relocation of officers
and managers• Committee membership changes• Evaluation of the effectiveness of the Board of
Directors

Muroi: Through the establishment of a chief digital officer, an innovation center, and an accelerator program, MARUI GROUP has
installed the infrastructure necessary for new business development. However, new businesses generally have low success rates
and their scale and profitability pales in comparison to existing
businesses. It is incredibly important to look at the Company’sbusiness portfolio in its entirety to determine which projects will beprioritized and which will be abandoned. You also need to accurately
calculate total investment amounts, project numbers, success rates,
and returns. Other important considerations include what type ofinvestments will be conducted over the next three-to-five years, howcash flows will be generated, and if these cash flows will exceed
cost of capital. You must remain levelheaded when accessing theseimportant factors.
Okajima: I want to talk about why MARUI GROUP looks to develop
new businesses. Possible reasons include fostering new earnings
pillars or cultivating human resources. I think the Company’s current
business plan contests are beneficial in terms of human resource
development.
Taguchi: It is easy to understand if you state clearly that the new
business development program is aimed at fostering humanresources. The employees who see this will be motivated if they feelinspired to participate.
Muroi: Human resource development is important, but it is also
crucial for MARUI GROUP to truly develop new businesses. If you
do not make a business of a sufficient scale, it will be difficult to talkabout how it relates to Companywide strategies.
Aoi: We aim to foster a corporate culture through human resource
development while at the same time creating new businesses. We
must first ask, “What type of new business does MARUI GROUP
need?” The business of tsumiki or our anime business does not
replace our retailing and fintech businesses, they contribute. I thinkthat any new businesses should contribute to existing businesses inthis manner.

survey of the effectiveness of the Board of Directors with regard
to such aspects as the scale and composition of the Board of

Reduction of Cross-Shareholdings• Organization and humanresource development for
post-digital world

Directors, operating procedures, decision-making processes, andIn principle, the Company will not engage in cross-shareholdings

roles and responsibilities. Based on the results of this survey,

except for cases in which such holdings are deemed necessary• New business development

information on the current evaluation of the Board of Directors

for maintaining or building upon collaborative or transactional• Nominating andCompensation Committee

and the issues it faces are shared, and constructive discussions

relationships that are strategically critical for improving corpo-

are held in order to formulate measures for the future.

rate value. Shareholdings for which the strategic significance has• Review of Co-Creation
Management Academy andfuture human resource
development initiatives

The possibility of acquiring third-party verification for the• Initiative areas and promotion structures for co-creation
sustainability management

Transcript of Board of Directors’ Discussion 
The following is an abridged transcript of a discussion by the Boardof Directors regarding new business development that took place in
September 2019.

Meanwhile, in response to the global COVID-19 pandemic, theOkajima: You mean to say that you are gauging investment returns
in terms of the resulting improvements in lifetime value.
Muroi: I understand the essence of MARUI GROUP’s new businessdevelopment approach. It would appear that the strategic focuses of
MARUI GROUP’s new businesses differ from those of companies
that cannot survive without creating new businesses. If you canmake this clear, it could affect business evaluations and plans. Are
there no businesses that can be positioned adjacent to existing
businesses, like the rent guarantee and anime businesses? Is thissomething that is decided by business departments?
Aoi: I think that is a decision to be made by management. However,
if we share our view that new businesses at MARUI GROUP should
be positioned adjacent to existing businesses and ask for ideas, wewill surely receive proposals.
Okajima: I think it depends on the goal of developing the new business. If you look to refine operations by continuing to use assets inthe same manner as previously, that should be done by businessdepartments. If you look to use existing assets to do something new,that should be seen as a shift. Is it correct to assume that we shouldtell stakeholders that we are undergoing a shift?
Muroi: When speaking with institutional investors, I have been toldthat investors do not fully understand MARUI GROUP’s innovative
business model. I think you need to more effectively explain thatyour management strategies differ from other companies’, and that
this is true with regard to new businesses as well.

results of the evaluation of the effectiveness of the Board ofbeen diminished will be sold in a phased manner based on
consideration for the conditions surrounding the counterparty.

Directors was examined. However, opinions were received,

The returns from each cross-shareholding are verified atlargely from external directors, stating that the current self-

meetings of the Board of Directors held in either July or August

evaluation methodology was sufficiently effective.

of each year. The extent to which holdings have been reduced
was confirmed at these meetings. On March 31, 2020, theOverview of Evaluation Results

Company held shares of the stock in eight companies as cross-

The evaluation of the effectiveness of the Board of Directors

shareholdings (10 companies fewer than on December 31,

conducted in the fiscal year ended March 31, 2020, confirmed2015), and the total value of these shares on the consolidated

that, overall, the Board of Directors was highly effective. In thebalance sheet was ¥12.5 billion (down ¥12.0 billion fromprevious year’s evaluation, the low ratio of medium-to-long-term

December 31, 2015).

incentives (stock-based compensation) to total officer compensation and the failure to orient compensation systems towardmedium-to-long-term improvements in corporate value wereidentified as issues. In response to these issues, the Company
implemented a new compensation system with a higher ratio ofTotal Value of Cross-Shareholdingson the Consolidated Balance Sheet¥24.5 billion(18 companies)

medium-to-long-term improvements. As a result, the evaluation

Down ¥12.0 billion¥19.0 billion(16 companies)of the officer compensation systems increased substantially. In

from December 31, 2015*¥17.0 billion(14 companies)

addition, the Company took steps to address the lack of involve-¥12.4 billion¥13.9 billion(6 companies)(9 companies)¥12.5 billion(8 companies)

ment in and oversight of the future leader development program,which was identified as an issue in the previous evaluation.
These steps included discussion by the Board of Directors andenhancement of provisions for the ongoing monitoring of theplacement and development of program participants.
New issues identified included the need to increase the presence of women on the Board of Directors and to make better useof internet conferences.

Dec. 31,2015

Mar. 31,2016

Mar. 31,2017

Mar. 31,2018

Mar. 31,2019

Mar. 31,2020

Two additional holdings in listed companies were acquired in the fiscal year ended March
31, 2020, to facilitate collaboration with new business partners, causing a year-on-yearincrease in cross-shareholdings. The amount of these holdings totals ¥5 million, andthese stocks are held for the purpose of collecting information on industry trends andother topics.
* Reduction amounts are displayed in comparison to December 31, 2015, as the
MARUI GROUP Corporate Governance Guidelines were published in November 2015.

Future Initiatives
In order to increase the presence of women on the Board of
Directors, an area identified as requiring improvement, theCompany appointed Yoko Suzuki as an external Audit &Supervisory Board member in the fiscal year ending March 31,
2021, bringing the ratio of women on the Board of Directors to
25%. From a long-term perspective, the Company will continue tocultivate junior female employees and identify and foster officer
candidates through the future leader development program.

82

83

Revision of Officer Compensation Systems toFacilitate Sustainability Management

shareholders. Specifically, the ratio of 8 : 1 : 1 (basic compensa-

Future Leader Development Program

regulations, corporate governance, management strategies, andtion : performance-linked bonuses : performance-linked stock-

MARUI GROUP unveiled its Co-Creation Management Academy

leadership. They also spoke with members of corporate man-Compensation for directors (excluding external directors) com-

based compensation) used until the fiscal year ended March 31,(CMA) future leader development program in April 2017 with theagement and managers of other companies and researched theprises fixed basic compensation as well as performance-linked

2019, was replaced with a ratio of 6 : 1 : 3 in the fiscal year ended

aim of identifying and cultivating human resources capable ofCompany through group work.

bonuses, which are based on the performance of the Company in a

March 31, 2020.

promoting management innovation. This program is based on

In the fiscal year ending March 31, 2021, the fourth year of thegiven fiscal year to function as a short-term incentive, and perfor-

In the fiscal year ended March 31, 2020, the range of adjust-open application, and each year 10–20 candidates are selected

program, the curriculum was revised with the aim of cultivating

mance-linked stock-based compensation, which is based on thement for performance-linked bonuses functioning as a short-from among volunteers. To date, a total of 63 individuals havehuman resources that are able to undertake co-creative busi-

medium-to-long-term performance of the Company to function as aterm incentive was changed from 90%–110% to 0%–200% andparticipated. Those selected are submitted to a one-year training

nesses with start-up companies and targeting future genera-

medium-to-long-term incentive. From the fiscal year ended March

the performance indicator used for calculating bonuses wascurriculum developed under the guidance of external directors totions. This curriculum involved conventional learning as well as

31, 2020, officer compensation systems were revised to increasechanged from consolidated operating income to earnings per

instill in them a management perspective. This curriculum includes

hands-on and experience-oriented programs. Examples of these

the portion of performance-linked compensation and employ newshare (EPS). For performance-linked stock-based compensation

programs to facilitate the acquisition of crucial insight as well as

programs included discussions with entrepreneurs at the front

performance indicators in response to issues identified in evalua-functioning as a medium-to-long-term incentive, ESG indicators

discussions with members of Company management, managers

lines of business and exchanges with members of younger

tions of the Board of Directors’ effectiveness.

were introduced alongside the prior performance indicators ofof other companies, and external experts. After the curriculum

generations. These programs were arranged to help participants

In addition, the compensation levels and the ratio of perfor-

return on equity (ROE), return on invested capital (ROIC), and EPS

has been completed, participants continue to be monitored andimprove their management skills and business creation capabili-

mance-linked compensation have been revised to increase theto make for compensation systems that are linked to co-creation

nurtured into future leaders through secondment to affiliates orties and foster the skills that will be needed in the post-digital

portion of performance-linked compensation. This revision was

sustainability management. This revision proposal was formu-assignment to strategic or corporate planning posts.

world. Moreover, we introduced a mentorship program in which

aimed at boosting motivation to contribute to improved medium-

lated based on discussion by the Board of Directors, theto-long-term performance and corporate value for the Company

Areas of focus concerning the curriculum for the fiscal year

individuals that had participated in previous programs mentor

Nominating and Compensation Committee, and Management

ended March 31, 2020, included understanding of MARUI GROUP’s

current participants to stimulate mutual growth. Through thein order to have officers share the interests of shareholders

Committee before deliberation and approval at the Ordinary

core values and acquisition of a management and a business

CMA program, we aim to continue identifying and cultivating

and to strengthen management from the perspective ofGeneral Meeting of Shareholders held in June 2019.

perspective. Participants were given lectures from external

junior and female employees with the potential to become

specialists on topics such as finance, corporate value, legal

future leaders.

Target Indicators and Performance-Linked Coefficients
Target indicator

TargetPerformance-linked coefficient

EPS

¥130

0%–200%EPS¥130 or more

100% if three targets accomplished
70% if two targets accomplished
30% if one target accomplished0% if no targets accomplished

Performance-linked
bonuses
Fiscal year ending
March 31, 2021

Performance-linked
stock-based
compensation

Financial
indicators
Non-financial
indicators

ROE

10.0% or more

ROIC

4.0% or more

ESG
indicators

Inclusion in
DJSI World*

0% or 10%

* Dow Jones Sustainability World Index: An ESG index comprising companies selected through comprehensive evaluation of economic, environmental, and social factors for the perspectiveof long-term improvements to shareholder value

Officer Compensation in the Fiscal Year Ended March 31, 2020 (Millions of yen)
Basic compensation

Performance-linked bonuses(Short-term incentive)

Directors (excluding external directors)

150

21

—

171

External directors

29

—

—

29

34

—

—

34

15

—

—

15

external Audit & Supervisory Board members)
External Audit & Supervisory Board members

Understanding of Core Values
Clarification of VisionInterim Individual
Presentation

Co-Creative Business
Development

Final Individual
Announcement• Future-oriented perspective acquisition• Personal vision as anext-generation leader• Co-creative business skill
acquisition• Vision and business goals
as future leader• Mind-set cultivation• Roadmap for accomplishing vision• Co-creative businessdevelopment• Impact on stakeholders
as future leader• Discussions withinvestors• Intended social impact as
future leader• Discussions withentrepreneurs

Sample of Newly Introduced Experience-Oriented Programs
Performance-linked stockbased compensation(Medium-to-long-term
incentive)

Audit & Supervisory Board members (excluding

Sample Curriculum

Total compensation

Workshop on Customer-Oriented Thinking
in the Post-Digital World

How to Realize Your Dreams—
Programming Workshop and Lecture
by University Student Mentor

Yasufumi Fujii

Yusuke Mizuno

East Asia Sales Representative
beBit, Inc.

Representative Director and CEO
Life is Tech, Inc.

The upper limit for full-year compensation paid to directors has been set at ¥300 million (excluding employee salaries paid to directors that are also employees of the Company or Group
companies) and at ¥50 million for external directors. Separate from this amount, the upper limit for performance-linked bonuses has been set at ¥100 million (excluding employee salaries
paid to directors that are also employees of the Company or Group companies) paid to directors (excluding external directors) and the upper limit for performance-linked stock-based
compensation issued to directors (the amount of money contributed to trusts on their behalf) has been set at ¥200 million per fiscal year to be multiplied by the number of fiscal years in therespective incentive period (¥400 million for the two-year period encompassing the fiscal year ended March 31, 2020, and the fiscal year ending March 31, 2021). In addition, the upper limit
for monthly compensation of Audit & Supervisory Board members has been set at ¥6 million. All of these amounts were set at the Ordinary General Meeting of Shareholders. Amounts ofcompensation for individual officers are not listed as no officer received total compensation of more than ¥100 million.

Officer Compensation
www.0101maruigroup.co.jp/en/ci/governance/compensation.html

84

85

Risk Management

Committee Membershipwww.0101maruigroup.co.jp/pdf/committee_members_en.pdf

Appointment of New Wellness-Field Advisor

Risk management system

MARUI GROUP appoints external experts with insight into business strategies and various business areas as advisors. We anticipate that

The Group maintains five committees, i.e., the Public Relations IR Committee, Internal Control Committee, Information Security

such advisors will be powerful assets in the establishment of strategies for Groupwide efforts to accomplish the targets of the medium-

Committee, Safety Control Committee, and Insider Trading Prevention Committee to control high-risk areas in business operations andterm management plan and to improve corporate value over the medium-to-long term as we seek to address the rapidly changing operat-

strive for speedy operational improvement and the prevention of accidents. At the same time, the Compliance Promotion Board, chaired

ing environment and an ever-diversifying society. Regular meetings of advisors are held once every two or three months, at which theby the Representative Director, is set up to coordinate the functions of all the committees.

president, pertinent directors, and representatives from relevant areas attend; advice is also sought on specific themes.
In addition, ESG specialists were appointed in January 2019 to strengthen the advisor team and support MARUI GROUP in conducting
co-creation sustainability management while responding to operating environment changes over the long term. One additional advisor

The Group enhances the effectiveness of risk management by holding regular meetings participated by Executive Officers as well as
holding and establishing the meetings of the above committees and subcommittees to realize close coordination, risk information sharing, and speedy decision making and implementation of countermeasures.

with expertise in the wellness field was appointed in July 2020.

Business and other risks

Advisors

Matters stated in the business overview and financial information of our securities report that may affect the judgment of investors are as follows.

Yoshiki Ishikawa

Doctor of Medicine; Preventative Medicine Researcher; Representative Director, Well-being for Planet Earth Foundation
Appointed inJuly 2020

Wellness Specialist

Reason for appointment: Yoshiki Ishikawa possesses a wealth of experience and broad-ranging insight as a preventative medicine researcher. He is
also one of Japan’s foremost researchers of well-being and the representative director of Well-being for Planet Earth Foundation. MARUI GROUP
anticipates that he will offer valuable suggestions and advice pertaining to the Company’s management.

Masakazu Masujima

Partner, Mori Hamada & MatsumotoFintech Specialist

Reason for appointment: Masakazu Masujima is a leading expert in the field of fintech with robust insight and experience. MARUI GROUP anticipates that he will offer proposals of specific growth investment targets, advice and proposals regarding entry into the securities business, and advice
on fintech-related laws and regulations for use in the development of new FinTech businesses.
Appointed inJuly 2016

Meyumi Yamada
Director, istyle Inc.


D2C Specialist

Reason for appointment: MARUI GROUP anticipates that Meyumi Yamada will provide up-to-date information on D2C ecosystems and customer
success strategies and stimulate meaningful discussion in this regard to drive new value creation in the post-digital world.
Appointed inJuly 2017

Yutaka Matsuo

Professor; Department of Technology Management for Innovation;
Artifacts, Center for Engineering; Graduate School of Engineering; Tokyo University
Appointed in
October 2019

AI Specialist

Reason for appointment: Yutaka Matsuo possesses a wealth of insight and experience as a leading authority in AI research. In addition, he has
devoted his efforts promoting the use of AI and the cultivation of human resources in this field. One such effort was the establishment of
the Japan Deep Learning Association, an organization tasked with improving the competitiveness of industry in Japan with deep learning.
MARUI GROUP anticipates that he will offer valuable suggestions and advice for utilizing AI to improve corporate value.

Sustainability Advisors
Peter David Pedersen

Representative Director, Next Leaders’ Initiative for Sustainability; Professor, Shizenkan University
Appointed in
January 2019

Reason for appointment: As a corporate consultant, Peter David Pedersen has provided environmental and CSR consulting through various
projects with leading Japanese companies, universities, economic organizations, and government agencies and has taken part in international
symposiums. MARUI GROUP anticipates that he will offer valuable suggestions and advice for addressing future operating environment changes
and improving corporate value based on his world-leading experience and insight in the environmental and sustainability fields.

Masayoshi Suzuki

Executive Vice President, BORDERLESS JAPAN CORPORATION

Appointed in
January 201986

Environmental Specialist

Social Specialist

Reason for appointment: Masayoshi Suzuki co-founded BORDERLESS JAPAN, one of the few companies in the world that only engages in social
businesses, through which this company has addressed social issues pertaining to poverty, discrimination, prejudice, and the environment.
MARUI GROUP anticipates that he will offer valuable suggestions and advice for resolving social issues to help create a flourishing and inclusive
society.

Forward-looking statements in this document are based on the judgment of the Group at the end of the fiscal year under review.

1. Risks concerning business strategies
1-1. Risks concerning Retailing and FinTech environments• Changes in consumption trends• Occurrence and intensification ofcompetition• Expansion of the e-commercemarket, and diversification of
settlement methods• Revision of the taxation system
and relevant laws

The Group’s operations integrate Retailing and FinTech. The Group conducts operations atsales offices centered on the Tokyo metropolitan area and sales offices located throughout
the country. We anticipate to see a decline in the number of visiting customers andtransactions at stores due to changes in markets causing sluggish consumer spending, such as fluctuations inbusiness conditions, changes in economic conditions, the declining population, intensifying competition, theexpansion of the e-commerce market, and the rise in the sharing economy. In addition, the share of credit card
usage in the market is expected to shrink as a result of the technological advances such as the diversification of
settlement means associated with the transition to cashless payments, or changes in consumer behaviors. If theserisks become apparent, the financial position and business results of the Group may be affected.
In store operations, the Group has been building a stable earnings structure by transitioning to a businessstructure focused on shopping centers and fixed-term rental agreements. However, the financial position andbusiness results of the Group may be affected by cancellation of fixed-term rental agreements with tenants andincreased vacant floor space, both of which will lead to a decline in rental revenue, posting of impairment loss due
to fluctuations in land prices, increased tax burden due to a revision of the taxation system, and other factors.
Furthermore, allowance for doubtful accounts is provided with respect to operating receivables (accounts
receivable–installment and operating loans) of cards that account for a large share of the Group’s total assets,based on the occurrence of receivables in arrears, historical bad debt ratios, etc. However, payments in arrears
and uncollected receivables could increase due to worsening economic conditions, changes in relevant laws, orother factors. The financial position and business results of the Group may be affected by a sharp increase inbad debt expenses or allowance for doubtful accounts, etc. Provision for loss on interest repayment has been
provided to prepare for the repayment of interest on cash advances, by projecting the amount of future repayments based on the past actual repayments. However, if the amount of provision is insufficient for the amount of
future claims for interest repayment, additional costs may be incurred.
ImpactWe are pushing ahead with a marriage of internet and physical venues centered on our
e-commerce site “MARUI web channel.” Marui and Modi stores have been working torealize the co-existence of physical venues with e-commerce and to constantly improve
facility value by working to promote “digital native stores” to accommodate the post-digital era. The Group is
working to diversify touchpoints with customers by having stores also play a complementary role to digital.
Moreover, we endeavor to broaden our customer base and increase the number of customers by advancing“Customer Diversity and Inclusion,” providing products and services that bring joy to all customers, regardless of
their age, physical characteristics, or gender.
Recognizing the promotion of the transition to cashless payments as a big opportunity, the FinTech segment
responds to diversified payment methods by increasing EPOS Gold and Platinum cardholders and encouraging
them to use their EPOS card as their main card by implementing the strategy of maximizing the share of EPOS
card payments among household finances, such as the rent guarantee services business. Moreover, aiming torealize financial inclusion with the goal of providing everyone with the financial services they need when theyneed them, regardless of income or age, we provide initial credit by utilizing big data based on credit expertise
acquired from the time of our founding, as well as credit monitoring under the belief that “creditability should bebuilt together with customers.” We have achieved a low ratio of delinquent debt by increasing credit limits basedon usage frequency and transaction amounts and payment history.
Countermeasures871-2. Risks concerning Co-Creative Investment• Uncertainty of return on
investment• Risk of impairment loss on
investment in unlistedcompanies• Fluctuations in prices of­investment securities

2-3. Risks concerning infectious disease

The Group is promoting “Co-Creative Investment,” investing in growing companies as partof its measures to accelerate investments in intangible assets. We aim to create value
greater than the sum of individual businesses by building a business model integrating
Retailing and FinTech with “Co-Creative Investment.” In executing investments, we conduct a preliminary detailed
review through confirmation of the financial conditions and contracts of prospective investees, etc., and interviews
with their management, to fully examine risks. However, in cases where a problem that cannot be identified throughpreliminary investigation is found, e.g., the occurrence of a contingent liability or the discovery of unrecognized debt,
or depending on future business performance or changes in business policies of the investees, the expected
outcome may not be achieved, leading to the recording of an impairment loss. Furthermore, listed shares held by
the Group may be affected by price fluctuations depending on stock market trends.
Impact• Stagnation of economic activities
and decline in consumption
activities• Refraining from or suspending
business activities at stores dueto the spread of infection• Suspension of business activities
due to infection of employees

The Group conducts operations at sales offices centered on the Tokyo metropolitan areaand sales offices located throughout the country. If an infectious disease is prevalent inareas where sales offices are located or if measures such as voluntary restraints ongoing out are taken to prevent the spread of infection, the financial position and business results of the Groupmay be affected by restrictions on business activities such as suspension of store operations. Furthermore, it
may become difficult to continue business due to the spread of infection among employees. Please refer to“Response to COVID-19” on page 93 for information on MARUI GROUP’s response to the global COVID-19
pandemic.
ImpactIn order to prevent the spread of infectious diseases, employees mainly based at offices
are encouraged to remotely work from home as much as possible, while those in chargeof logistics, such as e-commerce, work in shifts. In addition, we are taking infection
preventative measures for our customers and employees at sales offices, such as installing alcohol antiseptic
solution dispensers, requiring the wearing of masks, and ensuring the adherence to social distancing.
In response to the spread of COVID-19, placing top priority on the health and safety of our customers, business
partners and employees, opening hours of our stores were shortened and urban stores were temporarily closed in
March to prevent the spread of infection. After a state of emergency was declared in April, all stores were closed
except for food corners and certain tenants. Please refer to “Response to COVID-19” on page 93 for information on
MARUI GROUP’s response to the global COVID-19 pandemic.
Countermeasures

In selecting investees, we prepare our own plan based on a business plan obtained fromthe investee, and make investment decisions after checking profitability including not only
financial returns but also cooperative returns to be generated from cooperation with theGroup. Most importantly, in “Co-Creative Investment,” we believe that we can contribute to mitigating investment
risks and increasing returns by realizing “co-creation” by uniting resources of the credit card business, the retailingbusiness, and human resources involved in them, with intangible assets such as investees’ know-how and skills,
and by greatly contributing to the achievement of their business plans and development as a corporation.
In principle, we will not engage in cross-shareholdings except for cases in which such holdings are deemednecessary for maintaining or building upon collaborative or transactional relationships that are strategicallycritical for improving corporate value. At a meeting of the Board of Directors held in February 2016, it wasdetermined that the Company had already established sufficiently strong business relationships with crossshareholding counterparties, and it was therefore decided to undertake a phased reduction in cross-shareholdings out of consideration for asset efficiency and stock price fluctuation risks.
Countermeasures

3. Risks concerning corporate operations
3-1. Risks concerning fund procurement

2. Risks concerning natural disasters, infectious disease, etc.

• Raising fund procurement
interest rates

2-1. Risks concerning large-scale disasters• Stagnation of economic activities
and decline in consumption
activities• Damage to assets held andoccurrence of repair costs• Suspension of business activities
due to damages to offices andsystems, and adverse impact on
employees

The Group conducts operations at sales offices centered on the Tokyo metropolitan areaand sales offices located throughout the country. In the event of a natural disaster suchas a large-scale earthquake or storm/flood, or a terrorist attack in areas where sales
offices are located, the sales offices may be forced to suspend business activities due to the disruption of social
infrastructure, etc., and this may affect the financial position and business results of the Group.
Impact

The Group prepares against various disasters and accidents by taking measures such as
introducing an employee safety confirmation system, formulating a disaster countermeasures manual, implementing earthquake-resistant measures for buildings, facilities,
systems, etc. (including data backup), fire, disaster, and flood prevention drills, and stocking necessities. In theevent of an earthquake, etc., the Group Earthquake Disaster Response Headquarters is established and Group
companies work together to establish systems that enable business continuity.
Countermeasures

2-2. Risks concerning climate change• Damages to stores and facilities
from typhoons, torrential rains,etc.
• Introduction of carbon taxes, etc.,
along with the tightening of
regulations

88

Impact• Constraining fund procurement

The financial position and business results of the Group may be affected by damage tostores from flooding caused by typhoons and torrential rains, and an increase in costs
due to the introduction of carbon taxes, etc.

The FinTech segment is expected to grow, with card shopping transactions increasing
and financial services including rent guarantee expanding. Amid this situation, the Group
expects to see an expansion of cash demand owing to an increase in operating receivables (accounts receivable–installment and operating loans). Accordingly, new funds will be needed in addition
to handling repayments and redemption of funds previously procured. We anticipate that risks concerning fundprocurement will grow as the procurement amount will gradually increase in the future.
In the case of turmoil in the financial market, fund procurement may be constrained. Furthermore, a substantial deterioration of the business results of the Group or a rapid decline in its creditability would make it difficult toborrow from financial institutions and hinder issuance of corporate bonds. If these risks become apparent, they
may materially affect the financing of the Group.
In addition, as fund procurement interest rates fluctuate depending on the market environment or otherfactors, procurement costs may sharply rise depending on such trend, and this may affect the financial position
and business results of the Group.
Impact

The Group seeks to maintain a level of interest-bearing debt to around 90% in order tocontrol the risk arising from an increase in debts.
In raising fund procurement interest rates necessary for operating activities, we will
diversify the procurement methods we use by indirectly procuring funds from financial institutions, directly
procuring funds through issuance of corporate bonds and commercial paper, as well as liquidating operatingreceivables. We also utilize these procurement methods in a balanced manner.
In order to cope with the risk of refinancing, we maintain consistent annual repayment and/or redemption
levels by controlling the years of procurement. We have established a system to ensure procurement even if fundprocurement is restricted, by executing commitment line contracts or establishing overdraft facilities withfinancial institutions for such amounts to ensure liquidity.
As for the procurement interest rate, we minimize the impact of an increase in procurement costs due to thefluctuations in market interest rates by maintaining the procurement methods with fixed interest rates at a rate of
50% to 60%.
Countermeasures

The Group believes it is important to capture opportunities for growth and respond
appropriately to relevant risks resulting from climate change. Please refer to “Initiatives
Related to Climate Change and Endorsing the TCFD” on page 91 for information on
MARUI GROUP’s climate change response measures and initiatives based on the recommendations of the
Task Force on Climate-related Financial Disclosures.
Countermeasures893-2. Risks concerning information security• System failure due to an accident,
defect, etc.
• Unauthorized entries and accessfrom outside, and virus infection• Leakage of customer information

1. System-related
The Group employs a variety of computer systems and communication networks. In theevent of a system error due to a hardware or software defect, or a communication
network failure, a system delay, a service outage or the alteration of a website due to unauthorized access fromoutside, etc., it may affect the financial position and business results of the Group.
Impact

2. Personal information-related
The Group maintains EPOS cardholder information and other personal information of many customers andstakeholders. If, by any chance, customer information is leaked or fraudulent use occurs, the Group may suffer
the risk of losing social credibility and incurring liability for damages, which may affect the business performanceof the Group.
1. System-related
The Group operates systems aiming at stable operation by duplicating computer
systems and communication networks, replacing systems regularly, as well as preventing computer viruses or unauthorized entries. In addition, the Group strives to further strengthen information
security by utilizing risk assessment by outside consultants.
Countermeasures

2. Personal information-related
The Group recognizes the enhancement of Groupwide information security, such as the protection of customer
information and other information assets held by the Group against unauthorized access or cyber attack, as a
top management priority. By establishing the MARUI GROUP Information Security Policy and the MARUI GROUP
Privacy Policy, we are working to properly manage and protect all the personal information obtained.
Specifically, based on the Act on the Protection of Personal Information, other laws and regulations, andrelevant guidelines, standards, etc., we take safety management measures concerning personal information.
At the same time, we continue to properly protect personal information by constant improvement throughimplementation and operation of the personal information protection management system.
Specifically, our Group companies handling large amounts of personal information have acquired the“PrivacyMark” and practice appropriate handling of personal information.

Management Policies
www.0101maruigroup.co.jp/en/sustainability/theme04/risk.html

3-3. Risks concerning human resources• Shortage of management
personnel• Intensified competition for securing human resources

We believe that growth of the Group can be attained by the development and contribution of each employee. If competition intensifies for the securing of human resources, anoutflow of human resources occurs, and a consequent shortage in future management
personnel becomes apparent, these may affect the evolution and continuity of our business.
Impact

The Group emphasizes the importance of human resource investments to accumulate
the intangible assets that are a wellspring of future corporate value, based on the culture
where all of our employees can tackle new challenges. We are currently creating anenvironment where employees can fully realize personal growth and are highly motivated owing to our conducting of systematic human resource investments from a variety of angles. These investments include educationand training programs based on open application, and the Groupwide project teams that engage in discussions
on important topics for Group management. These efforts also include the establishment of the Co-Creation
Management Academy (CMA) future leader development program, which cultivates human resources capableof promoting management reforms, as well as the secondment of employees to start-up companies.
Please refer to “Future Leader Development Program” on page 85 for details.
Countermeasures

90

CASE STUDYMARUI GROUP’s 2050 Vision and Its Three Businesses
www.0101maruigroup.co.jp/en/sustainability/
vision2050/3business_01.html

MARUI GROUP Environmental Policy
www.0101maruigroup.co.jp/en/sustainability/
theme03/environment_01.html#environment1

Initiatives Related to Climate Change and Endorsing the TCFD

Climate change should be considered as a climate crisis today. Recognizing climate change
as one of its most important management priorities, MARUI GROUP aims to “limit the rise in
the global temperature to below 1.5°C above pre-industrial levels,” as presented in the Paris
Agreement. The Group has strengthened its governance system to actively engage in creating a low-carbon society based on thelong-term targets of the Paris Agreement in accordance with the MARUI GROUP Environmental Policy as revised in April 2020. At thesame time, the Group has analyzed the potential impact of climate change on business, and is promoting initiatives in capturing
opportunities for growth and responding appropriately to relevant risks resulting from climate change. The Group endorsed the recommendations of the TCFD, which was established by the Financial Stability Board, and disclosed information in its annual securities
report for the fiscal year ended March 31, 2019, based on these recommendations. We conducted repeated analyses at this time toelaborate on opportunities and physical risks due to climate change. As we continue to focus on enhancing our information disclosurein the future, we will benchmark the appropriateness of the Group’s responses to climate change using the TCFD recommendations topromote co-creation sustainability management.

Governance
The Sustainability Committee was established in May 2019as an advisory body to the Board of Directors, chaired by the
Representative Director, for the purpose of examining anddiscussing the Group’s basic policies and major items
related to climate change. In addition, the Environment andCSR Committee was established as a subordinate of the
Sustainability Committee for carrying out duties pertaining
to the management of relevant risks and other mattersbased on its instructions. In formulating business strategies
and implementing investment and financing, we will
strengthen our governance related to climate change basedon this system by comprehensively discussing and making
decisions with considerations for the MARUI GROUP
Environmental Policy and other major items related toclimate change.
Business strategies(Business risks and opportunities)
Recognizing that a 4°C rise in the global temperature resulting from climate change would have an enormous impact
on society, we believe it is important to work together tocontribute to the movement seeking to limit global warming
to below 1.5°C above pre-industrial levels. In order tostrengthen our ability to respond to scenarios below 2°C(with a target of 1.5°C), we will identify the impact of climate-related risks and opportunities on our business, andproceed to formulate relevant strategies.
The Group aims to create a new business model integrating Retailing and FinTech with “Co-Creative Investment” that
leads to mutual development, by investing in start-ups, etc.,with which we can share our corporate philosophy or
visions. Climate change would pose such risks as damages
to stores, facilities, etc., from floods caused by typhoons
and torrential rains, and an increase in costs due to theintroduction of carbon taxes along with tightened regulations. On the other hand, we view the provision of goods
and services responding to increased consumer environmental awareness and investing in eco-friendly companies
as the Group’s business opportunities.

(Analysis and calculation of financial impacts)
Financial impacts on businesses are analyzed based on our
climate change scenario, etc., and calculated by item as theamount of impact on income anticipated within the period
through 2050. As physical risks, even if a rise in temperatureis held below 1.5°C, we anticipate that flood damage will
abruptly occur due to typhoons, torrential rains, etc. Theserisks are expected to affect rent revenues, etc., due tosuspension of store operations (¥1.9 billion) and cause
building damages (¥3.0 billion). We assessed the transition
risks by estimating increases in future energy-related costs,
which are expected to be renewable power procurement
costs (¥0.8 billion) and the introduction of carbon taxes(¥2.2 billion). The relevant opportunities are expected tohave an impact on store revenue as a result of proposing
lifestyles to highly environmentally conscious consumers(¥1.9 billion), long-term revenue due to an increase in credit
cardholders (¥2.6 billion), and return from investment inenvironmentally friendly companies (¥0.9 billion). We project
long-term revenue owing to an increase in recurring payments due to credit cardholders using electrical power fromrenewable energy, leading to the conversion of cardholders
to Gold cardholders (¥2.0 billion), a reduction of procurement costs resulting from entering the power retailingbusiness (¥0.3 billion), and exemption from carbon taxes(¥2.2 billion). We will conduct analysis regularly based on
various future trends, and continue to review our evaluations and disclose relevant information.
Assumptions
Period covered
Scope

Calculation
requirements

Present to 2050
All businesses of MARUI GROUP• Analyses based on climate change scenarios(IPCC, IEA, etc.)• Calculation of financial impacts assumed
during the period by item• Calculation of risks in the amount of impact if
an event occurs• Calculation of opportunities for lifetime value(LTV), in principle• Not considering infrastructure enhancements
such as public works and technology
advancements, etc.

91

CASE STUDY

Please refer to the following website for information on recent activities (Japanese only).
www.0101maruigroup.co.jp/together/

Risks and opportunities associated with climate change
Changes in society

Physicalrisks

Transition
risks

Risks faced by MARUI GROUP

Description of risks

Approx. ¥1.9 billion

Building damages due to flooding (recovery of
power supply facilities, etc.)

Approx. ¥3.0 billion

Suspension of systemcenters

Groupwide suspension of business activities due todowned systems

Response
completed*2

Increase in demand forrenewable energy

Rise in renewableenergy prices

Increase in energy costs due to renewable energy
procurement

Approx. ¥0.8 billion(Annual)Tightening of government’s
environmental regulations

Introduction ofcarbon taxes

Tax increase due to carbon taxes

Approx. ¥2.2 billion(Annual)Changes in society

Suspension of store
operations

MARUI GROUP’s opportunities

Description of opportunities

Financial impacts

Revenue from bringing in eco-friendly tenants, orother efforts

Approx. ¥1.9 billion*3

Increase in sustainability-minded credit cardholders

Approx. ¥2.6 billion*4

Returns from investments in eco-friendly companies

Approx. ¥0.9 billion

Response to demand fromgeneral households forrenewable energy

Revenue from credit cardholders using electrical powerfrom renewable energy

Approx. ¥2.0 billion*5

Diversification of electricity
procurement

Entry into the power
retailing business

Reduced intermediary costs due to direct procurementof electricity

Approx. ¥0.3 billion(Annual)Tightening of government’s
environmental regulations

Introduction ofcarbon taxes

Exemption from carbon taxes from achieving zero
greenhouse gas emissions

Approx. ¥2.2 billion(Annual)Enhanced environmental
consciousness and change
in lifestyles
Opportunities

Propose sustainable
lifecycles

With stakeholders’ health and safety as a first priority, the Group is taking various measures. We would like to reflect on our
relationships and further strengthen our partnerships in order to overcome the coronavirus crisis.

Financial impacts

Impact on rent revenues, etc., due to businesssuspension

Flood damage due totyphoons, torrential
rains, etc.*1

Response to COVID-19*1 Assuming flooding of a river that will have the most significant effects based on hazard maps (Arakawa River) (three-month effect on two stores in the watershed areas)*2 Assuming no financial impacts as a backup center has been established*3 Increased rent revenues and credit card usage*4 Calculated revenue from credit card admission and usage*5 Calculated revenue from increased Gold cardholders due to recurring payments, etc.

Customers
Marui and Modi stores shortened business hours and someof them temporarily closed for two days in March. After astate of emergency was declared, all stores were closed
except for food corners and certain tenants. In the regions
where the emergency declaration was lifted, stores gradually resumed operations by taking infection prevention
measures, and all of the stores have resumed operations
since June. With regard to EPOS cards, we determine anynecessary changes to payment due dates, as well as informcustomers using the card for rent settlement of the government’s Housing Security Benefit system.
Business partners
Based on our co-creation philosophy aiming to enhance
stakeholders’ interests, the Group implemented measures
for strengthening partnerships such as exemption of rent in
its full amount during the stores’ temporary closings. We
will overcome this unprecedented crisis by strengthening
partnerships with our business partners, and strive toenhance our corporate value over the medium-to-long term.

Shareholders and investors
The global situation is greatly changing and the outlook is
uncertain due to the spread of COVID-19. We will, however,disclose information in a timely and appropriate manner.
We will facilitate management trusted by shareholders andinvestors by securing business continuity and stability.
Employees
Employees placed on standby at home due to the temporary closing of stores were treated as taking special leave.
At departments requiring employees to come to the office,such as call centers and logistics centers, we created anenvironment where staff can work with peace of mind bydecentralizing offices and taking thorough measures toprevent droplet infection. At the head office, the implementation rate of teleworking has risen since laptop computers
had been already introduced as part of work style reforms.
A new work style has become common along with theinfection prevention measures.

Initiatives for Building Stronger Relationships with Business Partners—Efforts to Overcome the Global COVID-19 Pandemic
Risk management
MARUI GROUP performs scenario analyses to track andassess the impacts of climate change on its businessand identify climate change-related risks and opportunities.
The identified risks and opportunities are managed in termsof strategy formulation and individual business operations
through a promotion system centered on the Sustainability
Committee. The content of deliberations by the Environment and CSR Committee, which comprises officers ofGroup companies (retailing, facility management, distribution, building management, etc.), is regularly reported anddiscussed at the Sustainability Committee, and reports andadvice are provided to the Board of Directors as necessary
for specific items. Going forward, strategies and measures
will be examined based on a myriad of factors. External
factors on which information will be shared include climatechange and other trends that may impact corporate strategies as well as legal and regulatory revisions. Internal factors examined will include progress in the measures ofGroup companies and future risks and opportunities.

92

Indicators and targets• The Group has set environmental efficiency (ratio of operating income to CO2 emissions) and the ratio of circularrevenue (ratio of circular sales/transactions to total
Retailing segment transactions) as indicators for green
businesses.
• Our Groupwide greenhouse gas emission reduction targets are as follows: an 80% reduction in emissions attributable to Scope 1 and Scope 2 and a 35% reduction
attributable to Scope 3 from the level in the fiscal year
ended March 31, 2017 by 2030 (a 90% reduction in emissions attributable to Scope 1 and Scope 2 from the level inthe fiscal year ended March 31, 2017 by 2050); and they
were certified as “targeting 1.5°C” by the SBT initiative in
September 2019.
• The Group has set a target of procuring 100% of the electricity used in its business activities from renewable powersources by 2030 (medium-term target: 70% by 2025) andbecame a member of RE100 in July 2018.

10%–15% reductionof fixed rent andcommon area
charges(for March)

Exemption of rent
and common area
charges in fullamount for business partners’
closing period

Removal of minimum guaranteed
sales of business
partners of consignment sales (for aperiod from March
to August)

Return one to twomonths’ worth of
security deposits attheir request (forbusiness partners
who had deposited
for six months or
longer)Postponement of
payments for aperiod from May to
July by six months
at their request

Assist customers infiling an “application
for rent support
grant”

Crowdfunding Support through EPOS Cards
Epos Card Co., Ltd., started accepting donations to help combat the
global COVID-19 pandemic in April 2020. These efforts wereexpanded upon in July 2020 through the establishment of a special
website showcasing crowdfunding projects that customers can
support on an individual basis. Through coordination with three
crowdfunding companies, we allow customers to support crowdfunding through EPOS cards.
www.to-mare.com/recent/2020/-action.html (Japanese only)

93

VISION 2050
MARUI GROUP’s 2050 Vision

Three Businesses Founded on Co-Creation for Generating Happiness
MARUI GROUP aims to help create a flourishing and inclusive society offering happiness to all.
In 2019, we announced MARUI GROUP’s 2050 Vision to serve as a roadmap for accomplishing this mission.

As part of the process of formulating a long-term vision for 2050, MARUI GROUP redefined the scope of the stakeholders
to whose interests and happiness it looks to contribute to include both current generations and future generations.
This move was a declaration of the ethical responsibility of current generations to future generations. Based on this­responsibility, we established MARUI GROUP’s 2050 Vision, which puts forth long-term targets

MARUI GROUP’s 2050 Vision

Harnessing the power of business to build a world that transcends dichotomies
Three Businesses Founded on Co-Creation

for creating new value in a manner that transcends dichotomies between the interests of current and future generations andavoids overemphasizing either. Concrete action plans are being formulated and ongoing assessments
and discussions of long-term targets are being conducted to further us toward the accomplishment of our vision.

Inter-Generational Businesses

Please refer to VISION BOOK 2050 for more information on MARUI GROUP’s 2050 Vision.
www.0101maruigroup.co.jp/en/sustainability/pdf/s_report/2018/s_report2018_10.pdf

Provision of options for coexistence with theglobal environment and future generations

Process of Establishing MARUI GROUP’s 2050 Vision
The background for our decision to establish a vision arose from requests for a long-term vision and long-term targets for accomplishing
this vision from investors. A team of 50 Group employee volunteers was assembled to establish a vision. The team adopted a backcasting approach that started with our goals for 2050 to forge this vision over the course of a year through a process of ongoing discussion

Co-Creative Businesses
Provision of options emphasizingbalance between individuality
and connections

Financial Inclusion
Provision of options foralleviating income disparity

with Group employees, executive officers, and experts. This process culminated in the announcement of MARUI GROUP’s 2050 Vision

STEP

in December 2018.

1 Project TeamGroupwide Sustainability

STEP

In 2018, we established the Sustainability Project Team, a Groupwide project teamwith volunteer members recruited through open application. After participating inworkshops led by external experts, the members began discussing their vision for
MARUI GROUP in 2050.

2

Direct Proposals to
Executive Officers

STEP

After discussing their visions for MARUI GROUP in 2050 for roughly six months, theSustainability Project Team members were divided into six groups, and each groupproposed their vision for the world of the future directly to executive officers.

3 for Executive Officers

Intensive Vision Conference

After receiving proposals from Sustainability Project Team members and engaging
in discussions with external experts, all executives took part in an intensive vision
conference to finalize MARUI GROUP’s 2050 Vision before its announcement at the
Co-Creation Sustainability Explanatory Forum held on December 10, 2018.

94

Happiness
By expanding the intersection between these three businesses and thereby generating happiness for all people,
MARUI GROUP’s 2050 Vision can be realized.

Inter-Generational Businesses

Co-Creative Businesses

Financial Inclusion

Provision of options for coexistence withthe global environment and future generations

Provision of options emphasizing balance
between individuality and connections

Provision of options foralleviating income disparity

It is projected that the environment will eventually
become unable to support the mass production
and consumption seen thus far and, in the world of2050, we expect only those businesses that coexist
with the global environment will be able to survive.
Moreover, forging a sustainable future in harmony
with the global environment for future generations
will require us to cultivate the younger generations
that will shape society 30 years from now andengage in co-creation with them. Recognizing thisfact, MARUI GROUP has subdivided its intergenerational businesses into green businesses
and human businesses.

The promotion of diversity is anticipated to makethe world of 2050 one that finds value in connections that transcend the boundaries of country andrace while allowing everyone, from senior citizens
to members of the LGBT community, non-Japaneseindividuals, and people with disabilities, to exercise
their individualism, thus eliminating the concept ofa minority. MARUI GROUP functions as a platform
to society, enabling it to provide spaces andservices emphasizing balance between individuality and connections through co-creation with all of
its stakeholders.

We predict that a massive global market will
emerge in the world of 2050 in response to theneeds of low- and middle-income individuals andthe appearance of various business opportunities
in the areas of education, healthcare, finance, andconsumer services. MARUI GROUP intends todevelop its financial inclusion initiatives, which
involve supplying financial services for everyone, inmarkets around the world. Through this undertaking, we aim to provide options for alleviating
income disparity and other concerns regarding
money felt by people around the world.

Please refer to the following website for information on progress toward long-term targets.
www.0101maruigroup.co.jp/en/sustainability/vision2050/progress_01.html

95

Revision of Policies

Key Points of Revision to the MARUI GROUP Human Rights Policy

Revisions were instituted to the MARUI GROUP Code of Conduct and other policies to redefine the Company’s relationship to its various
stakeholders in order to guide us in accomplishing our long-term vision for 2050 and to facilitate the practice of co-creation sustainability
management.

The MARUI GROUP Human Rights Policy was revised to better define the Company’s basic human rights policies along with material human rights
issues identified through assessments and mapping of risks related to the human rights of stakeholders. We also clearly indicated the human rights
initiatives to be taken by MARUI GROUP.
Contents of the Revised MARUI GROUP Human Rights Policy

Key Points of Revision to the MARUI GROUP Code of Conduct
Phrasing was revised to incorporate the new stakeholder group of future generations, which was newly included among stakeholders in February 2019:

Basic Principles

In addition, the entirety of the code of conduct was reassessed and revised to better express our commitment toward stakeholders and toward enhanc-

1. Dedication to Respecting Human Rights

ing our partnerships with these stakeholders.

3. Scope of Applicability

Contents of the Revised MARUI GROUP Code of Conduct
MARUI GROUP envisions a world in which we have transcended all dichotomies to build a flourishing and inclusive society that offers happinessto all. Realizing this vision will require that we engage in co-creation with MARUI GROUP employees as well as with customers, investors, communities and society, business partners, and future generations. MARUI GROUP views every one of its stakeholders as a partner for co-creating ahappier future.
The happiness to which we seek to contribute can only be realized through co-creation with all of these stakeholders. It is based on this belief
that we promote compliance with laws and regulations as well as international rules and the principles embodied in these norms and that wehave established and adhere to the MARUI GROUP Code of Conduct.
1. Customers

2. Investors

3. Communities
and Society

4. Business Partners						

7. Environmental
8. R
 espect for9. Fair and Transparent				
Preservation
Human Rights
Transactions

10. E
 limination ofAntisocial Forces

5. Employees

6. Future Generations

11. P
 rotection and Management ofInformation Assets

Human Rights Initiatives Material Human Rights Issues 

1. Human Rights Due Diligence•R espect for Rights of Individuals

2. Corrective Measures (Remedies)•R espect for Rights of Workers

3. Stakeholder Engagement•R espect for Rights of Vulnerable People Affected by Business­Activities and of Future Generations

4. Human Rights Awareness Improvement•P rotection of Privacy

5. Human Rights Management
6. Information Disclosure
Revision Process
Step 1

Step 2

Step 3

Step 4

Identification of risks for all
business processes• Two-pronged assessmentof risks based on likelihoodof materialization andpotential scale of impacts•M apping to identify material
issues for each segment

Discussion with externalsustainability experts basedon prior steps

Identification of initiatives foraddressing material issues
and future initiatives andtargets

New Section on Future Generations
6. Future Generations
MARUI GROUP views children and the people of the future, whom we refer to as “future generations,” as one group of stakeholders. We seek tocreate value for the future together with future generations in our quest to help build a sustainable society and global environment through ourbusiness and in all of our other activities.

2. Commitment to Compliance with Laws and International Standards

Human Rights Risks in Business Activities and Potentially Impacted Parties
Product Manufacturing and Distribution

Please refer to the following website for the entire MARUI GROUP Code of Conduct.
www.0101maruigroup.co.jp/en/ci/action.html
Retailing

Targets• Employees of business partners(domestic and overseas suppliers)• MARUI GROUP employees• Residents of communities surrounding
factories

Activities Manufacturing and distribution
Targets
FinTechKey Points of Revision to the MARUI GROUP Environmental Policy

Activities

The MARUI GROUP Environmental Policy was revised to more clearly define priority issues and action policies based on our future business model for
promoting green businesses aimed at accomplishing MARUI GROUP’s 2050 Vision. Segment initiatives and management structures were also reassessed and revised.
Contents of the Revised MARUI GROUP Environmental Policy

Major
anticipated risks

Basic Policy
1. Environmental Management

2. Legal Compliance

3. Environmental Due Diligence

4. Stakeholder Engagement

5. Environmental Awareness Improvement

6. Transparent Environmental Information Disclosure

Priority Issues and Action Policies

MARUI GROUP’s Activities

Collaboration Partners’ Activities• Employees of business partners(tenants)• MARUI GROUP employees

Sales, e-commerce site operations, events

Purchase/use• Employees of business partners(domestic suppliers)• MARUI GROUP employees• Business partners•E mployees of collaboration partners• Customers• MARUI GROUP employees(call centers, tsumiki)

Manufacturing

External marketing, sales, cardholder
recruitment, credit, systems development

Sales, cardholder recruitment,
application processing

Application, payment, donation,
cumulative investment

Customer inquiries, threat response,
payment request<Rights of business partners and
MARUI GROUP employees>• Discrimination• Acceptance of diversity• Political involvement• Forced labor• Child labor• Low-wage labor• Excessive work hours• Occupational health and safety• Right to collective bargaining• Freedom of assembly• Right to breaks• Health promotion• Work style options• Discrimination in hiring and promotions• Harassment• Privacy<Residents of communities surrounding
factories>• Lives of local residents• Land rights<Rights of business partners and
MARUI GROUP employees>• Discrimination• Acceptance of diversity• Rights of cultural, religious, and language
minorities• Low-wage labor• Excessive work hours• Occupational health and safety• Right to collective bargaining• Freedom of assembly• Right to breaks• Health promotion• Work style options• Discrimination in hiring and promotions• Harassment• Privacy<Rights of business partners andcollaboration partners>• Discrimination• Acceptance of diversity• Rights of cultural, religious, andlanguage minorities• Low-wage labor• Excessive work hours• Occupational health and safety• Right to collective bargaining• Freedom of assembly• Right to breaks• Health promotion• Work style options• Discrimination in hiring andpromotions• Harassment• Privacy<Rights of customers>• Discrimination• Acceptance of diversity• Rights of cultural, religious, andlanguage minorities• Occupational health and safety• Lives of local residents• Adverse impacts of products• Rights of vulnerable people• Land rights• Rights of children• Privacy<Rights of MARUI GROUP
employees>• Discrimination• Acceptance of diversity• Rights of cultural, religious, andlanguage minorities• Excessive work hours• Occupational health and safety• Right to breaks• Health promotion• Work style options• Discrimination in hiring andpromotions• Harassment• Land rights• Privacy

3. Preservation of

1. Climate Change 

2. Resource Recycling • Reduction of Greenhouse Gas Emissions• Waste Reduction• Energy Conservation• Sustainable Product Development• Sustainable Procurement• Renewable Energy Utilization• Proper Waste Disposal• Harmony with Nature

Sustainable Ecosystems 

MESSAGE FROM AN EMPLOYEE 

Please refer to the following website forthe entire MARUI GROUP Human Rights
Policy.
www.0101maruigroup.co.jp/en/
sustainability/overview/

This is my fourth year at MARUI GROUP, and I hadn’t even

• Reduction of Container- and Packaging-seen our human rights and other policies before I was

Related Environmental Impacts

placed in a position responsible for sustainability. I have

• Reduction of Food Loss and Waste

come to understand the importance of such policies from• Water Resource Management

researching companies engaged in sustainability initiatives and talking with external specialists. Policies are theSegment Initiatives (Retailing Segment, FinTech Segment, New Businesses)
Please refer to the following website for the entire MARUI GROUP Environmental Policy.
www.0101maruigroup.co.jp/en/sustainability/theme03/environment_01.html#environment1

96

Use by Customers and After-Sales Services• Customers

needle of a company’s compass, and we must keep sightof them as we go about our daily work. I too hope todigest MARUI GROUP’s policies and enact them in my

Mariko Kuwae

Please refer to the following website for
information on the process of defining
material issues.
www.0101maruigroup.co.jp/en/
sustainability/pdf/matl_issue/
matl_issue_prg_2020_en.pdf

Sustainability Department
MARUI GROUP CO., LTD.

work in order to give form to their ideals.

97

M
MESSAGE

Message from the CFO

We will rapidly transform our business model to focus on
intellectual creation driven by intangible assets.

or more as a hurdle rate out of consideration for financial returns.

will look to achieve an optimal capital allocation assuming ROE of

The IRR on the ¥7.1 billion in investments conducted prior to

10% or more under the next medium-term management plan.

March 2020 was 34%, greatly surpassing this hurdle rate.

A central pillar of investment under the next medium-term

Software investments, meanwhile, have produced an exceptional

management plan will be co-creative investment in start-up

rate of return on investment of 313% due in part to the fact thatcompanies and other targets. In the new plan, we intend to

we conduct development in-house, which not only speeds up

double such investments from the level of the current plan, ¥30.0

development but also creates such returns for our business.

billion over a five-year period. We can improve our success rate

Difficulty in Accomplishing Major Medium-Term
Management Plan Targets Due to COVID-19 Pandemic

represent 65% of total gross profit, a level nearly double that seen

Human resource development and R&D investments include thein co-creative investments by pursuing earnings contributions tobefore the start of the current medium-term management plan.

cultivation of our IT staff and the secondment of employees toour main business through collaboration with investees while

In the fiscal year ended March 31, 2020, the fourth year of the

Meanwhile, contracted future recurring gross profit, which repre-

start-up investees, efforts we anticipate will increase corporate value

also providing them access to our stores and other resources tomedium-term management plan, performance with regard to thesents gross profit to be recorded in future fiscal years, increased to aover the medium-to-long term. These investments also contribute tostimulate their growth. We aim to maintain an IRR of 10% or

key performance indicators (KPIs) of the plan was as follows:level that is 2.7 times greater than the amount of recurring grossongoing improvements in operating income per employee, whichmore for financial returns through this approach. Moreover, by

earnings per share (EPS) of ¥117.6, ¥5.1 lower than targeted; return

profit recorded in the fiscal year ended March 31, 2020. This earn-

was 1.7 times higher in the fiscal year ended March 31, 2020, thanpositioning co-creative investments as a central pillar of growthon equity (ROE) of 8.8%, 0.4 percentage point less than our target;

ings structure is resilient to major risk factors, like the COVID-19

it was in the fiscal year ended March 31, 2015.

investments, we hope to create a situation in which ROE stays

and return on invested capital (ROIC) of 3.7%, 0.1 percentage point

pandemic, and means that we should be less impacted by such

below the target. In this manner, performance with regard to all KPIs

occurrences than we would under our prior structure.

*2 Rate calculated using recent procurement prices for applicable marketable securities andbased on amounts if listed stocks were to be sold at the end of the respective fiscal year

above 10% and ROE consistently exceeds cost of shareholders’equity. In existing businesses, investments will rise in the
FinTech segment centered on software investment while invest-

fell below targets due to the impacts of the global COVID-19 pan-At the same time, we steadily moved forward with capital

demic, which occurred near the end of the fiscal year. Moreover, themeasures aimed at accomplishing our target balance sheet,

Investments in Intangible Assets (FY2020)

ments in renovations in the Retailing segment will decrease as

pandemic reduced consolidated operating income by ¥1.3 billion

resulting in a decrease in WACC and consequently a rise in

Amountcorporate value through both improved profitability and reduced

New business fields¥8.7 billion

IRR of 34% from investments in start-up
companies

the transition to fixed-term rental contracts is winding down. As

through a ¥1.5 billion reduction in Retailing segment income coupled with a ¥0.2 billion increase in FinTech segment income.

cost of capital. Furthermore, as recurring gross profit is

Human resource
development / R&D¥3.2 billion

Operating income per employee of ¥8.02 million(1.7 times higher than in FY2015)

The FinTech segment actually posted higher operating income

recorded as the total for both the Retailing and FinTech seg-

as a result of the pandemic as we continued to record recurring

ments, it is an ideal indicator for MARUI GROUP as it empha-

revenue while a significant drop in new card issuance costs was

sizes LTV in its management through a business merging

seen. The impacts of the pandemic are expected to weigh evenretailing and finance.

more heavily on the fiscal year ending March 31, 2021, the final
year of the medium-term management plan. We have therefore
judged that it will be difficult to accomplish the targets set for the

ROIC 3.7%

plan in the fiscal year ending March 31, 2022. We hope toaccomplish the goals of the current medium-term management
plan, specifically EPS of ¥130 or more, ROE of 10% or more, andROE 8.8%

Return on investment of 313%

ROE was around 5% prior to the establishment of the current

Taking this approach, investments in intangible assets, suchas co-creative investments and software investments, will likely
rise to account for around 80% of total growth investments
investments, we will rapidly transform our business model tofocus on intellectual creation driven by intangible assets.

medium-term management plan, but the earnings structuretransformations and capital measures conducted under the plan31, 2019, and 8.8% in the fiscal year ended March 31, 2020,

WACC 3.0%

a result, overall investments in existing businesses will decline.

under the next medium-term management plan. Through thesecaused this indicator to rise to 9.1% in the fiscal year ended MarchFiscal Year Ended March 31, 2020MARUI GROUP will launch a new medium-term management¥3.1 billion¥15.0 billion

Outlook for the Next Medium-Term Management Plan

*1 Referred to as “contracted future recurring revenue” until the fiscal year ended March 31,
2020, to reflect future recurring revenue based on revenue as displayed on financial
statements; referred to as “contracted future recurring gross profit” in this report to reflect
future recurring revenue based on gross profit

plan’s KPIs, namely EPS, ROE, and ROIC, in this year. We apologize for the disappointment this news causes.

Software
Total

Major Successes

coming in just below 10% in both years. Based on these trends, we

Hirotsugu Kato
Director, Managing Executive Officer, and CFO
In charge of IR, Finance, Sustainability, and ESG Promotion
President and Representative Director, D2C & Co. Inc.
Director, tsumiki Co., Ltd.

Cost of shareholders’ equity 6.9%

ROIC of 4% or more, as quickly as possible under the new plan.

Increasing of Investment in Intangible Assets

98

Ongoing Corporate Value Creation throughEarnings Structure Transformation

In tandem with the implementation of our medium-term manage-

Regardless of the unfortunate performance, we were able to makeassets for the purpose of fueling future growth. In the fiscal year

steady progress in transforming our business model and earnings

ended March 31, 2020, investments in intangible assets amounted

structure and in transitioning toward our target balance sheet

to ¥15.0 billion, twice as much as investments in stores and otherbased on the medium-term management plan. As a result, we

tangible assets. Breaking down these investments in intangible

have nearly completed the development of a structure that dis-

assets, we directed ¥8.7 billion toward new business development,

plays our desired corporate value, by which I refer to a structure inprimarily through investments in start-up companies; ¥3.1 billion towhich ROIC exceeds weighted average cost of capital (WACC) andsoftware; and ¥3.2 billion to human resource development and R&D

ROE surpasses cost of shareholders’ equity on a consistent basis.

investments, which, although being recorded as expenses on the

The most important goal of our earnings structure transformation

financial statements, are viewed as investments by us. Often times,

is to be able to show growth in recurring gross profit and contracted

we invest in start-up companies for the purpose of collaboration

future recurring gross profit,*1 which are important KPIs for manage-with the main businesses of the Retailing and FinTech segments,

ment emphasizing lifetime value (LTV). Recurring revenue contrib-

and we therefore anticipate returns through our business activities.

utes to improvements in LTV. This form of profit has come to

However, we have also set an internal rate of return (IRR)*2 of 10%

ment plan, we have also been increasing investment in intangible

99

Financial and Non-Financial Analysis by the CFO

Earnings Structure Based on Distinctive Business Model

Business Merging Retailing and Finance, and Earnings Structure
Since its founding as a company selling furniture on installment payments in 1931, MARUI GROUP has continued to evolve its distinctive
business model merging retailing and finance. Today, our operations are divided into the Retailing segment and the FinTech segment, butthese segments share the same customer base, making for a model that is conducive to generating synergies. This business model
merging retailing and finance also has a uniquely ideal earnings structure in which the earnings structures of both of our segmentscompensate for the deficiencies of the other segment’s model while capitalizing on its strengths.

Business Merging Retailing and Financerelationships with customers while encouraging them to upgrade

Building appealing stores increases revenues from fixed-term

to Gold cards. This multitude of unique advantages is a major

rental contracts while also enhancing our ability to draw custom-

characteristic of MARUI GROUP’s business model merging

ers, which in turn benefits credit card operations by creating

retailing and finance.

more opportunities to recruit new cardholders. Furthermore, as
we issue cards on-the-spot in stores, customers often use them

Figure 1: MARUI GROUP’s Business Modelright away, which effectively increases active user rates and card
revenues. The higher card revenues can be reinvested in retailstores. Through this process, MARUI GROUP’s business model

Enhancedability to
attract
customers

generates an ideal virtuous cycle (see Figure 1). Our value journey can be explained by looking at how this business model
functions across a timeline (see Figure 2).
Our relationships with customers generally begin in stores,
Increased
rent
revenues

and around 400,000 customers apply for credit cards at ourstores every year, often times using them immediately. This

Another major characteristic of MARUI GROUP’s business modelother initial expenses associated with new cards means thatmerging retailing and finance is how increases in customer contact

money is actually lost on new cardholders in their first few years.

points are effective at driving improvements in LTV. Increases in

However, once these cardholders start generating profit, this profit

ongoing transactions also spur growth in LTV. MARUI GROUP

can be anticipated to continue growing steadily thereafter. In thedisplays the revenue produced through those ongoing transactions

Retailing segment, meanwhile, we expect consistent earnings andvia the indicator of recurring gross profit. The transition to fixed-term

cash flows following the completion of the transition to fixed-term

rental contracts in the Retailing segment and measures for enhanc-

rental contracts. The combination of these two structures is

ing rent guarantee and other operations in the FinTech segment are

MARUI GROUP’s earnings structure. The consistent retail revenues

contributing to increases in recurring gross profit. As a result, recur-

ensure the Company does not incur overall losses no matter how

ring gross profit rose to ¥131.1 billion in the fiscal year ended March

much profit may be lost on new cardholders in their first year

31, 2020, representing 65% of total gross profit (see Figure 4).

while card revenues continue to grow after they climb into the

Recurring gross profit has grown rapidly over the past five years inpositive. This earnings structure of MARUI GROUP’s businessboth amount and portion of total gross profit, compared to recurringmodel merging retailing and finance is one of the factors behindgross profit representing less than 50% of total gross profit prior to

the Company’s continuously high profit growth.

the start of the current medium-term management plan.

Figure 3: Earnings Structure Based on Distinctive Business Model

Growth in card
revenues

Recruitmentof promisingtenants

Unique structure combining high growth potential of credit card business with consistent revenues from fixed-term rental contracts
Increased
use

Higher Gold
cardholders

Earnings Structure of Credit Card Business

MARUI GROUP’s Earnings Structure

Pro: High profit growth

Pro: High profit growth (credit card revenues)

Con: Losses recorded for several years

Pro: Consistent revenues (store revenues)

Reinvestment
in stores

Storesa significant benefit of our store operations. Stores also serve as

Figure 3). In our credit card operations, the issuance costs andCredit cards

Increases innewcardholders

Appealingstore
development

process allows for smooth, low-cost recruitment activities and isfinance has an earnings structure that is equally unique (seeChanges in Earnings Structure and Clear Indicators
for LTV Emphasizing Management Growth of
Recurring Gross Profit

MARUI GROUP’s distinctive business model merging retailing andRevenuevenues for ongoing contact, which can create lifelong

Credit card revenues

Earnings Structure of Stores (Fixed-Term Rental Contracts)
Pro: Consistent revenues

Figure 2: MARUI GROUP’s Value Journey

Con: Low profit growthStore revenues
Curve for exclusively credit card businesses

Use as main card

Time

Value

Lifelong relationships

400,000 in-store card applications

Figure 4: Ratio of Recurring Gross Profit to Total Gross Profit*
200 million annual visits

100 million annual purchases

Ongoing improvement in ratio of recurring gross profit to total gross profit

On-the-spot issuance and in-store use¥72.3 billion

START¥71.5 billion

Ongoing contact through shopping¥80.6 billion¥104.2 billion

Attracting customers

On board

Other grossprofit(non-recurring)¥69.7 billion¥99.3 billion¥93.6 billion

Growth¥52.9 billion(34%)¥60.8 billion(38%)¥67.4 billion(42%)

FY2014FY2015FY2016

87.6 billion(52%)

FY2017¥108.0 billion(60%)

FY2018¥122.7 billion(63%)

FY2019Recurring
gross profit¥131.1 billion(65%)

FY2020* Gross profit includes selling, general and administrative expenses paid by business partners.

100

101

Expansion of Contracted Future Recurring Gross Profit and Resilience

Capital Measures for Achieving Targeted Balance Sheet

Recurring gross profit represents profit that has already beenpotential of our revenue. This stability makes for improved resil-

The medium-term management plan slated to conclude with the

expectations due to growth in the FinTech segment, creating thegenerated. However, ongoing transactions also entail profit thatience in times of crisis, such as during the COVID-19 pandemic

fiscal year ending March 31, 2021, defines a target balance

possibility for excessive growth in interest-bearing debt. For thiswill be generated in future fiscal years based on contracts. This(see Figure 5). Using finance charges on revolving and install-sheet. Achieving this balance sheet will entail procuring funds

reason, the Company decided to begin systematically liquidating

profit does not appear on the financial statements for a given fiscal

ment payments, the primary form of earnings in the FinTech

through interest-bearing debt in response to increases in operat-

operating receivables in the fiscal year ended March 31, 2019,

year, but it is still an incredibly important indicator of revenue

segment, as an example, revolving and installment payment

ing receivables and other capital measures, seeking a level oftargeting a ratio of liquidation of 25%. In the fiscal year ended

stability and growth potential. For this reason, MARUI GROUP

transactions are projected to decline by between ¥30.0 billion andinterest-bearing debt equivalent to roughly 90% of operating

March 31, 2020, the ratio of liquidation was 24.7%. This level will

displays this profit through the indicator of contracted future¥60.0 billion in the fiscal year ending March 31, 2021, due to thereceivables, and maintaining an equity ratio of approximately

be maintained in the fiscal year ending March 31, 2021, while net

recurring gross profit. On March 31, 2020, contracted future

impacts of the pandemic. Regardless, earnings from these

30% (see Figure 7). After the establishment of the plan, operating

assets are kept below ¥1.0 trillion to maintain the ideal equity

recurring gross profit amounted to ¥350.0 billion, 2.7 times higher

transactions are anticipated to be up year on year. The reason forreceivables increased to a degree that exceeded initialratio of approximately 30%.

than the amount of recurring gross profit recorded in the fiscal

this projection is that roughly 70% of finance charges on revolving

year ended March 31, 2020. This figure indicates that theand installment payments for the fiscal year will be attributable toCompany has already secured nearly three years’ worth of futurecontracted future recurring gross profit that is already contracted

revenue, which has greatly increased the stability and growthat the beginning of the fiscal year (see Figure 6).

Figure 7: Balance Sheet
Total assets ¥886.0 billion(¥1,067.9 billion including liquidated accounts receivable)

Total assets ¥730.1 billion(¥799.1 billion including liquidated accounts receivable)

Figure 5: New Financial Indicator—Contracted Future Recurring Gross Profit
Contracted future recurring gross profit = Recurring gross profit that can be expected to recur in subsequent years after initial transaction
Gross profit not visible on
financial statements

2.7 times
higherContracted future
recurring
gross profit

3rd year

Recurring gross profit*

FY2019FY2020102

Equity ratio 39%% of operating receivables 86%(91% including liquidated accounts
receivable)

Shareholders’ equity¥289.8 billion

Fixed assets,others

FY2016

Liquidation of receivables¥840.0 billion
Ratio of liquidation
25%

Equity ratio 33%

FY2020Interest-bearing debt
¥530.0 billion% of operating receivables 84%(90% including liquidated accounts
receivable)

Shareholders’ equity¥300.0 billion

Fixed assets,othersEquity ratio 32%

FY2021 (Target)

3.7%, exceeding WACC, which was 3.0%, for the fourth consec­

to MARUI GROUP’s earnings structure together with capitalutive year, despite the decrease in income due to the COVID-19* Calculated using the number of outstanding years of contracts for store rent revenues and rent guarantees and credit card
expiration dates for affiliate commissions (fixed payments)

measures aimed at achieving the targeted balance sheet are

pandemic. In addition, ROE surpassed cost of shareholders’leading to the development of a structure in which ROIC exceeds

equity for the second consecutive year, with figures of 8.8% for

WACC and ROE surpasses cost of shareholders’ equity consis-

the former and 6.9% for the latter (see Figure 8).

 40.0 billion¥
reduction¥336.2 billion

tently. In the fiscal year ended March 31, 2020, ROIC came to¥366.3 billion¥370.0 billion

Revenue structure

Associated withinitial balance(Contracted future
recurring
gross profit)

70%

FY2019Average balance

Shareholders’ equity¥281.6 billion

Interest-bearing debt
¥479.8 billion

The growth of recurring gross profit and other transformations

Revolving and installment payment transactions projected to decrease by ¥30.0–¥60.0 billion in FY2021 due to COVID-19 pandemic,
but revenue from finance charges to increase as 70% will be attributable to balance at beginning of year

¥40.0 billion reduction in balance
assuming ¥60.0 billion decreasein transactions% of operating receivables 87%(89% including liquidated accounts
receivable)

Liquidation of receivables¥737.5 billion
Ratio of liquidation
24.7%

Liabilities ¥630.0 billion¥131.1 billion

Figure 6: Mechanism Increasing Finance Charges on Revolving and Installment Payments

Forecast for balance ofrevolving and installment
payment (liquidated)
reduction

Interest-bearing debt
¥359.3 billion

Operating receivables¥630.0 billion

Creation of Corporate Value through Earnings Structure Transformation and Capital Measures—
Development of Structure with ROIC Exceeding WACC and ROE Surpassing Cost of Shareholders’ Equity Consistently

1st year
Recurring
gross profit

FY2018

Liabilities ¥448.0 billion

Liabilities ¥595.6 billion¥350.0 billion

2nd yearContracted future
recurring gross profit

FY2017

Liquidation of receivables¥482.8 billion
Ratio of liquidation 14.3%

Fixed assets,others

5th year ~4th year

Operating receivables¥413.9 billion

Operating receivables¥555.6 billion

Total assets ¥930.0 billion(¥1,140 billion including liquidated accounts receivable)¥351.2 billion

FY2020

FY2021¥368.0 billion

Generated during
fiscal year

30%

Figure 8: ROIC, WACC, ROE, and Cost of Shareholders’ Equity
ROE 6.0%

Cost of shareholders’equity 7%–8%

ROE 9.1%

Cost of shareholders’equity 6.8%

ROE 8.8%

Cost of shareholders’equity 6.9%

ROIC 3.3%

WACC 3.3%–3.7%

ROIC 3.7%

WACC 2.8%

ROIC 3.7%

WACC 3.0%

Net assets ¥730.1 billion
FinTechROIC 3.9%
Retailing
ROIC 3.5%

Cost of liabilities

0.3%

Cost of shareholders’equity 7%–8%
FY2016

Net assets ¥890.2 billion

FinTechROIC 4.2%
Retailing
ROIC 3.8%

Cost of liabilities

0.3%

Cost of shareholders’equity 6.8%
FY2019Net assets ¥886.0 billion

FinTechROIC 4.6%
Retailing
ROIC 3.4%

Cost of liabilities

0.2%

Cost of shareholders’equity 6.9%
FY2020103

11-Year Financial and Non-Financial Summary

Annual Securities Reportwww.0101maruigroup.co.jp/en/ir/lib/sec.html

MARUI GROUP CO., LTD. and Its Consolidated Subsidiaries

Total Group transactions
Retailing*1
FinTech*1
Eliminations*2
Total operating revenues*3
Revenue*3
Gross profit
Selling, general and administrative expenses
EBITDA*4
Operating income
Net income (loss) attributable to owners of parent
Segment income*1
Retailing*1
FinTech*1
Retailing and Store Operation*1
Credit Card Services*1
Retailing-Related Services*1
Recurring gross profit*5
Ratio of recurring gross profit (%)*6
Contracted future recurring gross profit*7
Total assets
Shareholders’ equity
Installment sales accounts receivable
Consumer loans outstanding
Interest-bearing debt
Net cash provided by (used in) operating activities
Core operating cash flow*8 *9Net cash provided by (used in) investing activities
Net cash provided by (used in) financing activities
Cash and cash equivalents
Capital investments
Depreciation and amortization
Earnings (loss) per share (yen)Net assets per share (yen)Cash dividends per share (yen)Payout ratio (%)
Total return ratio (%)
Operating income margin (%)*10
Return on equity (%)
Return on invested capital (%)
Return on assets (%)
Equity ratio (%)
Stock price at year-end (yen)Market capitalization (including treasury stock) (billions of yen)Price earnings ratio (times)
Price book-value ratio (times)
Number of common shares issued (including treasury stock)
Number of shares of treasury stock
Total number of employees
Ratio of female employees (%)
Ratio of female managers (%)
Employee turnover rate (excluding mandatory retirement) (%)
Total number of stores* 11
Total sales floor area (thousand m2)
EPOS cardholders (including Akai Card)(ten thousands of members)
Energy consumption (GJ)
GHG emissions (Scope 1) (t-CO2)*12 *13
GHG emissions (Scope 2) (t-CO2)*12 *13
GHG emissions (Scope 3) (t-CO2)*12 *13

2010

—
—
—
—
—
419,255
149,926
139,488
29,695
10,438
5,104

2011

—
—
—
—
—
406,472
144,736
129,940
30,457
14,795(23,638)

2012

—
—
—
—
—
412,408
147,240
129,224
33,08518,015
5,251

2013

—
—
—
—
—
407,366
148,172
123,886
35,23724,285
13,255——
9,885
13,177
3,792———
624,173
303,637
171,187
123,739
243,762
5,111—
435(5,571)
29,940
7,665
10,951
48.43
1,109
15.0
31.0
31.0
6.0
4.5
3.0
3.9
48.6
975
310.6
20.1
0.9
318,660,417
44,948,289
6,101
44.3
6.3
2.8
27
453.1

2014

1,297,250———
253,077
416,460
156,642
129,495
37,134
27,146
15,409——10,562
15,634
4,523———
664,019
315,446
213,466
125,215
264,824(9,227)—(6,791)
16,14130,053
11,238
9,988
56.29
1,152
18.0
32.0
32.0
10.7
5.0
3.0
4.3
47.5
885
282.0
15.7
0.8
318,660,417
44,901,353
5,966
44.5
7.5
2.3
27
446.5

2015

1,469,111———
249,847
404,947
159,448
131,406
38,33828,042
16,036——
8,074
20,126
3,333———
675,627
306,795
227,121
128,030
277,839
12,31025,484(3,867)(7,267)31,229
9,786
10,296
58.87
1,166
19.0
32.3
125.3
11.2
5.2
3.3
4.2
45.4
1,365
380.3
23.2
1.2
278,660,417
15,588,364
5,918
44.6
8.7
2.0
27
444.0

ESG DATA BOOK
www.0101maruigroup.co.jp/en/sustainability/lib/databook.html

20161,703,353
341,478
1,473,539(111,664)
245,867—
160,035
130,419
39,286
29,615
17,771

10,65823,094
7,856
22,186
3,674———
730,126
281,610
279,763
134,107359,324(35,310)
26,788(4,063)40,71932,575
12,882
9,670
70.68
1,161
22.0
31.1
227.5
12.0
6.0
3.3
4.1
38.6
1,613
449.4
22.8
1.4
278,660,417
36,270,334
5,899
45.5
9.1
2.1
28
441.8

2017

1,933,685
326,327
1,723,254(115,896)
237,022—
165,964
134,711
41,374
31,25318,724

7,759
27,111——————
806,575
273,883
348,191
140,569
434,327(45,955)
28,188
1,995
47,63036,245
15,696
10,121
80.24
1,196
33.0
41.1
147.5
13.2
6.7
3.1
4.1
34.0
1,513
353.5
18.9
1.3
233,660,417
4,704,750
5,732
45.1
10.0
3.2
27
452.1

2018

2,189,374
328,486
1,972,482(111,594)
240,469—
175,875
139,50946,64036,36520,907

8,826
31,433——————865,887
274,434
402,030
146,011
485,331(19,329)35,853
747
27,77345,437
10,25010,274
93.18
1,245
38.0
40.8
112.3
15.1
7.6
3.3
4.2
31.7
2,168
506.6
23.3
1.7
233,660,417
13,269,506
5,548
44.4
11.2
3.1
26
439.8

2019

2,539,631
337,006
2,310,635(108,010)
251,415—
190,502
149,317
51,095
41,18425,341

11,42135,018———
122,660
62.9
327,726
890,196284,752
428,180
137,473486,632
26,396
38,676(9,232)(15,880)
46,7209,094
9,911
115.99
1,310
49.0
42.2
69.9
16.4
9.1
3.7
4.5
32.0
2,235
499.9
19.3
1.7
223,660,417
6,214,767
5,326
43.9
12.6
3.6
25
425.6

Millions of yen
2020

2,903,713
320,119
2,678,839(95,245)
247,582―
195,666
153,72151,13541,94425,396——37
10,272
2,509———
664,357
312,188
95,871
191,486
283,676
30,811—(13,034)(14,519)
32,283
17,39819,257
18.65
1,140
14.0
75.1
75.1
2.5
1.6
1.1
1.5
47.0
678
216.0
36.4
0.6
318,660,417
44,941,174
6,847
44.7
—
—
25
453.3

—
—
2,110
13,704
1,568———
628,910284,526
111,760
158,707
264,692
30,280—(7,033)(22,926)
32,603
14,332
15,661(86.36)
1,039
14.0
—
—
3.6
(7.9)
1.7
2.2
45.2
537
171.1
—
0.5
318,660,417
44,946,398
6,492
44.4
—
—
26
457.8

—
—
7,547
10,6192,567———
615,130
289,975
142,995
132,280
245,175
24,897—(3,913)(23,660)
29,928
7,941
15,069
19.19
1,059
14.0
73.0
73.0
4.4
1.8
2.1
2.8
47.1
690
219.8
36.0
0.7
318,660,417
44,947,345
6,218
44.4
—
—
27
458.4

476

476

487

498

542

591

613

636

657

688

720

—
21,653
108,970——
14,136
100,756——
17,291
79,050—1,998,182
10,72776,039—2,525,815
13,044106,085
550,6122,350,595
12,58098,637
530,595

2,305,099
14,434
89,179509,070

2,341,454
14,920103,264
489,4392,327,713
13,81899,286412,256

2,277,481
15,10996,232399,926

2,155,533
13,79967,916
351,962*1 Beginning with the fiscal year ended March 31, 2017, the prior segments of Retailing and Store Operation, Credit Card Services, and Retailing-Related Services were reorganized into the
Retailing and FinTech segments.
*2 Eliminations under total Group transactions represent the deduction of credit card transactions recorded in Retailing.
*3 Beginning with the fiscal year ended March 31, 2016, the display method was changed from total value display to net value display, the portion that represents income to the Company, forsales recorded through sale or return arrangements. In conjunction with this change, the previous “operating revenues” line item was replaced with the new “revenue” line item.
*4 EBITDA (earnings before interest, taxes, and depreciation and amortization) = Operating income + Depreciation and amortization*5 Gross profit generated on a recurring basis through contracts with customers and business partners*6 Ratio of recurring gross profit = Recurring gross profit ÷ (Gross profit + Selling, general and administrative expenses paid by business partners)*7 Contracted future recurring gross profit represents the portion of recurring gross profit that can be expected to recur in subsequent fiscal years and is used as an indicator of revenue stability.

104

FACT BOOK
www.0101maruigroup.co.jp/en/ir/lib/fact.html

10,02738,399―――131,09965.3
350,020885,969
289,792
416,250
139,313479,835
39,90939,038(20,315)(25,487)
40,827
10,4689,191
117.58
1,352
50.0
42.5
70.1
16.9
8.8
3.7
4.6
32.7
1,815
405.9
15.4
1.3
223,660,417
9,248,452
5,130
44.8
13.3
5.7
24
417.5

*8	Core operating cash flow represents net cash provided by (used in) operating activities less the increase in operating receivables.
*9	In the fiscal year ended March 31, 2020, the calculation method for core operating cash flow was changed to include gain on transfer of liquidated receivables and amortization ofliquidated accounts receivable and others. The figure for the fiscal year ended March 31, 2019, has been restated to reflect this change.
*10	Operating income margin is calculated using operating revenues for the fiscal year ended March 31, 2013, and prior fiscal years and revenue for the fiscal year ended March 31, 2014,
and subsequent fiscal years.
*11	From the fiscal year ended March 31, 2017, sites at which both a Marui store and a Modi store exist are counted as one store.
*12	Scope 1 & 2 represent greenhouse gas emissions from the Group. Scope 3 represents greenhouse gas emissions from areas including raw material procurement, transportation, anduse by customers. Third-party verification has been received from the Japan Quality Assurance Organization for greenhouse gas emissions figures since the fiscal year ended March
31, 2017.
*13	In the fiscal year ended March 31, 2014, the scope of data collection was expanded to include the entire Group.

105

Please refer to the following website for information on the reasons for appointment of external directors and Audit & Supervisory Board members.
www.0101maruigroup.co.jp/en/ci/officer/index.html
Note: Numbers are shares held as of October 1, 2020.

SELF-INTRODUCTION 

Directors,
Audit & Supervisory Board Members,
and Executive Officers
As of October 1, 2020

Yoshitaka Taguchi

I was born in the water-filled city of Ogaki, Gifu
Prefecture, and I served as the president of an overseas subsidiary of the Seino Group before becoming a
director at Seino Transportation Co., Ltd., and thenlater taking up my current position in 2003. Exercising
the management philosophy put forth by Seino’s
founder (my grandfather) and calling upon the relationship I formed through holding public office, I willcontinue to exercise my motto of “wisdom andaction.” As a manager from a different industry and a
representative of the interests of shareholders, I hope
to play my part in contributing to MARUI GROUP
co-creation management, whether amid the COVID-19
pandemic or eyeing the potential future emergence ofa dual society.

CAREER HISTORY 
Mar. 1985	Joined Seino Transportation Co., Ltd.
(currently Seino Holdings Co., Ltd.)
Jul. 1989	Director, Seino Transportation Co., Ltd.
Jul. 1991	Managing Director,
Seino Transportation Co., Ltd.
Jun. 1996	Senior Managing Director,
Seino Transportation Co., Ltd.
Oct. 1998	Representative Director and Vice President,
Seino Transportation Co., Ltd.
Jun. 2003	President and Chief Operating Officer,
Seino Transportation Co., Ltd. (Incumbent)
Jun. 2018	External Director (Incumbent)
Participation in committees:
Nominating and Compensation Committee

External Director
Shares held: 400
Born: April 1961

CAREER HISTORY 

SELF-INTRODUCTION 

Jul. 1986 Joined the Company
Apr. 1991	Director and General Manager,
Sales Planning Headquarters
Apr. 1995	Managing Director and Deputy General
Manager, Sales Promotion Headquarters andGeneral Manager, Sales Planning Division
Jan. 2001	Managing Director and General Manager,
Sales Promotion Headquarters
Jun. 2004	Executive Vice President andRepresentative Director
Apr. 2005 President and Representative Director
Oct. 2006	President and Representative Director,
Representative Executive Officer
Apr. 2019	President and Representative Director,
Representative Executive Officer, CEO(Incumbent)
Jan. 2020	Executive Chairman, D2C & Co. Inc.
(Incumbent)

I am the grandson of our founder, and I becamepresident in 2005. I get excited when I think about our
future (Futuristic®*). Since I was a child, I have loved
the story of Archimedes in which he runs through thestreets naked shouting “Eureka!” after noticing thewater level rising when he got into a bath. I too cannot
help but tell people when I have a new idea (Ideation®).
I am trying to learn a foreign language after turning 50
based on how Gandhi said, “Learn as if you were tolive forever” (Learner®). I believe that everyone has aright to live their own life, and I enjoy working with ourincredibly unique management team while exercising
this creed (Belief®, Individualization®).

Participation in committees:
Management Committee (Chairman)
Nominating and Compensation Committee
Sustainability Committee (Chairman)
Compliance Promotion Board (Chairman)* Please refer to pages 116–117 for information on the CliftonStrengths®
referenced.

SELF-INTRODUCTION Over my four decades at Nomura Research Institute,Ltd., I continued to create new solutions powered by
IT. When we could not accomplish something ourselves, we reached out to numerous U.S. IT companies, partners, and, most of all, customers to engage
in collaboration. To ensure that MARUI GROUP canmaximize the synergies between its retailing andfinance operations, I hope to create new value with IT
through collaboration with start-up companies boasting innovative ideas. Calling on my experience thus
far, I aim to contribute to the realization of innovation
management that casts off short-term perspectives
to pursue lofty ideals without fear of failure.

Hiroshi Aoi

Masahiro Muroi

President and Representative Director,
Representative Executive Officer

External Director

Shares held: 1,548,700
Born: January 1961

CAREER HISTORY 

SELF-INTRODUCTION 

Apr. 1989 Joined Mitsubishi Corporation
Jan. 2001 Joined McKinsey & Company
Jul. 2005	Representative and CEO,GLOBIS Management Bank
Jun. 2007 President & CEO, ProNova Inc. (Incumbent)
Jun. 2014 External Director (Incumbent)
Dec. 2018 Outside Director, euglena Co., Ltd. (Incumbent)

I love people, and it makes me immensely happy tohelp people grow and change. I have supported thedevelopment of management teams at venturecompanies for nearly two decades. Some call me the“Godmother of Venture Companies.” Also, I feel like I
have a talent for helping people and organizationstranscend their differences and the divides of theirfields to create new value. My contributions to thedevelopment of ecosystems through MARUI GROUP’s
co-creative investment business will draw on thisbackground. Raising my two-year-old child has
sparked my passion to shape a better future, which I
will direct toward supporting MARUI GROUP’s aggressive forward-looking management.

Participation in committees:
Nominating and Compensation Committee

106

CAREER HISTORY 
Apr. 1978	Joined Nomura Computer System Co., Ltd.
(currently Nomura Research Institute, Ltd.)
Jun. 2000	Member of the Board,
Nomura Research Institute, Ltd.
Apr. 2009	Representative and Senior Executive
Managing Director, Member of the Board,
Nomura Research Institute, Ltd.
Apr. 2013	Representative and Vice President,
Member of the Board,
Nomura Research Institute, Ltd.
Apr. 2015	Vice Chairman, Member of the Board,
Nomura Research Institute, Ltd.
Jun. 2016	External Director, Ryoden Corporation(Incumbent)
Jun. 2017	External Director (Incumbent)
Jun. 2018	Audit & Supervisory Board Member,
The Norinchukin Bank (Incumbent)

Shares held: 0
Born: July 1955

SELF-INTRODUCTION 

Etsuko Okajima

Masao Nakamura

External Director

Director, Senior Managing Executive Officer

Shares held: 0
Born: May 1966

Shares held: 26,500
Born: June 1960

I joined MARUI GROUP in 1983. During the 12 years inwhich I could have been considered a mid-rank
employee, I was in store planning departments, where
I played a central role in developing the department
stores that we have since moved away from. I waslater placed in charge of the retailing business, aposition that saw me promoting the transition to
shopping centers and fixed-term rental contracts totransform the business models of the department
stores I had a hand in developing. This was a massivechange that felt similar to transferring to a new company in a different industry. However, it was also
exhilarating as I could feel the propensity for innovation born when the entirety of MARUI GROUP wasunited toward a single goal. Now, I am helping developing stores that do not sell while myself feeling
excited about MARUI GROUP’s co-creation of value.
Turning 60 this year, I look to rekindle my beginners’
mind to contribute to the realization of our vision.

CAREER HISTORY 
Apr. 1983	Joined the Company
Apr. 2007	Executive Officer
Jun. 2008	Director and Executive Officer,
General Manager, Corporate Planning Division
and General Manager,
Business Development Division
Apr. 2011	Managing Director andManaging Executive Officer
President and Representative Director,
MARUI CO., LTD.
Apr. 2015	Director and Managing Executive Officer
Responsible for Retailing andStore Operation BusinessPresident and Representative Director,
MARUI CO., LTD.
Apr. 2016	President and Representative Director,
AIM CREATE CO., LTD.
Oct. 2017	Director and Managing Executive Officer
Responsible for FinTech Business
Apr. 2019	Director and Senior Managing Executive Officer
Responsible for FinTech BusinessIn charge of Corporate Planning, Real EstateBusiness, and Customer Success
Apr. 2020	Director and Senior Managing Executive Officer
In charge of Retailing Business, Corporate
Planning, and Customer Success (Incumbent)
Participation in committees:
Management Committee
Sustainability Committee
Compliance Promotion Board
Public Relations IR Committee
Internal Control Committee (Chairman)

107

CAREER HISTORY 
Mar. 1987	Joined the Company
Apr. 2015	Executive Officer and General Manager,
Corporate Planning DivisionJun. 2016	Director and Senior Executive Officer
General Manager, Corporate Planning Division
and IR Department
Oct. 2017	Director, Senior Executive Officer,
and CDO (Chief Digital Officer)
General Manager, IR Department
In charge of Corporate Planning and
ESG Promotion
Feb. 2018	Director, tsumiki Co., Ltd. (Incumbent)
Apr. 2018	Senior Managing Director,
M & C SYSTEMS CO., LTD.
Apr. 2019	Director, Managing Executive Officer, and CFO
In charge of IR, Finance, Investment Research,
Sustainability, and ESG Promotion
Jan. 2020	President and Representative Director,
D2C & Co. Inc. (Incumbent)
Jul. 2020	Director, Managing Executive Officer, and CFO
In charge of IR, Finance, Sustainability, and
ESG Promotion (Incumbent)
Participation in committees:
Management Committee
Sustainability Committee
Environment and CSR Committee (Leader)Compliance Promotion Board
Public Relations IR Committee
Internal Control Committee
Insider Trading Prevention Committee (Chairman)

CAREER HISTORY 
Apr. 1992	Joined MOVING CO., LTD.
Apr. 2015	Store Manager, Shinjuku Marui Annex,
MARUI CO., LTD.
Oct. 2015	General Manager, Pre-Opening Development
Office, Anime Business Department
Apr. 2016	General Manager,
Anime Business Department
Apr. 2017	Executive Officer
Apr. 2018	General Manager,
New Business Development Department,
In charge of Anime Business
Apr. 2019	Senior Executive Officer
In charge of Anime BusinessPresident and Representative Director,
MARUI CO., LTD.
Jun. 2019	Director and Senior Executive Officer
Jul. 2020	Director and Senior Executive Officer
General Manager, Co-Creative Investment
Department (Incumbent)
Director, D2C & Co. Inc. (Incumbent)
Participation in committees:
Management Committee
Compliance Promotion Board
Public Relations IR Committee

SELF-INTRODUCTION 

I am not good at describing my personality, so I did
an internet search for “Leo, O blood type, personality.”
It would seem that the majority of people in this groupare passionate, social, and attention-seeking, the polar
opposite of me. However, I also found a few results
stating qualities such as earnestness and justness.
This made me happy as these qualities are close tointegrity, which is the quality I most seek to exhibit.
Being social is indispensable to investor relations
work, but I feel that earnestness and justness are evenmore important when it comes to co-creating value
with shareholders. Of course, I have not given up on
being social, and I am working to improve my conversation skills, which have been even more important
amid the global COVID-19 pandemic.

SELF-INTRODUCTION 

Hirotsugu Kato

Hitoshi Kawai

Director, Managing Executive Officer

Audit & Supervisory Board Member(Full time)

Shares held: 8,800
Born: July 1963

Mar. 1986	Joined the Company
Oct. 2007	General Manager, Construction Department(Incumbent)
Apr. 2012	Director and General Manager,
Creative Management Department
Deputy General Manager,
Space Production Business Division,
AIM CREATE CO., LTD.
Apr. 2014	Executive Officer (Incumbent)
Apr. 2016	Director and General Manager,
Design Management Department
Deputy General Manager,
Space Production Business Division,
AIM CREATE CO., LTD.
Oct. 2016	Director and General Manager,
Creative Management Department
Deputy General Manager,
Space Production Business Division,
AIM CREATE CO., LTD.
Apr. 2018	General Manager, Group Design Center(Incumbent)
Apr. 2019	Director, MARUI CO., LTD. (Incumbent)
Managing Director, AIM CREATE CO., LTD.
(Incumbent)
Jun. 2019	Director and Executive Officer (Incumbent)

SELF-INTRODUCTION 

As far as my personality, I am super positive, and thisinfluences everything I do. I am committed to seeing
challenges for what they are and overcoming themwith my team and more smiles than are probably
necessary. I am also really good at finding hints infrontline operations that can be grown into businessmodels through co-creation with business partners,
customers, and Group employees. The anime business and our operation of Mercari Station on a contract basis were both ideas brought to fruition throughthis approach. Going forward, I will further MARUIGROUP’s evolution through strategic co-creation withstart-up companies, future generations, and otherindustries.

Masahisa Aoki

Nariaki Fuse

Director, Senior Executive Officer

Audit & Supervisory Board Member(Full time)

Participation in committees:
Management Committee
Environment and CSR Committee
Public Relations IR Committee

108

I am a bit stubborn and lack flexibility, but this is also
tied to my commitment to seeing things through andnever giving up until the job is done. I am convincedthat the ongoing evolution of MARUI GROUP is driven
by the efforts of all of its employees to fulfill its mission of helping build an inclusive society offering
happiness to all stakeholders. When I was working
in the Company’s IT divisions, this conviction led
me to always think from the perspective of the user,
as opposed to the maker, when seeking to develop
systems that are convenient and a joy to use. Goingforward, I hope to leverage my experience interactingwith Group companies through the lens of IT to­con­tribute to MARUI GROUP’s efforts to help build
an inclusive and flourishing society in my role asan Audit & Supervisory Board member.

SELF-INTRODUCTION 

At this time last year, no one would have imaginedthat we would be facing the current situation createdby the global COVID-19 pandemic. This pandemic has
dealt a heavy blow to our society and to the economy.
In times like these, it is especially important to look atwhere you are today and think about tomorrow. In
terms of business, this means we need to identify
new demand that we need to meet and examine what
new challenges should be undertaken. For this perspective, MARUI GROUP’s co-creative investments are
truly matched to the times. I too will aspire to respondto change through flexible thinking.

Yuko Ito

Takehiko Takagi

Director, Executive Officer

External Audit &Supervisory Board Member

Shares held: 10,300
Born: June 1962

Apr. 1989	Joined Mitsubishi Bank Ltd.
(currently MUFG Bank, Ltd.)
Jan. 2013	General Manager, Corporate Planning Division,
Mitsubishi UFJ Morgan Stanley Securities
Co., Ltd.
Oct. 2014	General Manager, Corporate Banking Division
No. 8, Corporate Banking Group No. 2,
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
(currently MUFG Bank, Ltd.)
Jun. 2016	Executive Officer and General Manager,
Corporate Banking Division No. 8,
Corporate Banking Group No. 2,
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
May 2017	Executive Officer and Branch Manager,
Kyoto Branch,
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Apr. 2020	Executive Officer, MUFG Bank, Ltd.
Jun. 2020	Audit & Supervisory Board Member (Full time)(Incumbent)
Participation in committees:
Management Committee
Compliance Promotion Board
Public Relations IR Committee

CAREER HISTORY 
Mar. 1982	Joined the Company
Apr. 2007	Director, M & C SYSTEMS CO., LTD.
Apr. 2011	Executive Officer
Managing Executive Officer,
M & C SYSTEMS CO., LTD.
Apr. 2013	President and Representative Director,
M & C SYSTEMS CO., LTD.
Jun. 2013	Director and Executive Officer
Apr. 2015	Senior Executive Officer
In charge of Audit and Information Systems
Apr. 2016	Senior Executive Officer and CIO
In charge of Audit
Jun. 2018	Audit & Supervisory Board Member (Full time)(Incumbent)
Participation in committees:
Compliance Promotion Board
Internal Control Committee

Shares held: 11,900
Born: June 1959

SELF-INTRODUCTION 

I am an oddity at MARUI GROUP, joining from ascience background with a major in architecture
because I wanted to shape the Marui stores that areat the forefront of trends. The majority of my work so
far has been in line with this desire as I have been
responsible for store development. The environment
has changed a lot in recent years, and these changes
are only accelerating amid the COVID-19 pandemic.
I think my role in promoting co-creation sustainability
management at MARUI GROUP to contribute to thehappiness of everyone is transforming. I therefore
look to play a role in creating forward-looking value
through business model design strategies that
account for the new era of face-to-face interaction
and the ideal direction for us after the pandemic.

CAREER HISTORY 

Shares held: 0
Born: January 1967

SELF-INTRODUCTION 

Shares held: 6,600
Born: July 1969

CAREER HISTORY 

I committed myself to American football throughout
my high school and university days before joining abank in 1989 because I found the wide network andpeople appealing. I spent many years responsible forcorporate transactions, giving me plenty of opportunities to speak with customers from various industries.
I eventually found myself working with my customers
and colleagues to give shape to our ideas, letting me
feel the joy of creating new services and frameworks.
Passion and teamwork are invaluable, whether insports or in greater society. Looking ahead, I hope tosupport corporate governance at MARUI GROUP in
my capacity as an Audit & Supervisory Board member
to help the Company create greater levels of happiness for its customers and its other five groups ofstakeholders.

CAREER HISTORY 
Jul. 2001	Chief, Kanazawa Regional Taxation Bureau
Jul. 2002	President, National Tax College
Jul. 2003	Retired from National Tax Administration
AgencyAug. 2003	Registered as Certified Public Tax Accountant
May 2006	External Audit & Supervisory Board Member,
TOH-TEN-KOH Corporation
Jun. 2008	External Audit & Supervisory Board Member(Incumbent)
Jun. 2010	External Audit & Supervisory Board Member,
KAWADA TECHNOLOGIES, Inc.

Shares held: 8,600
Born: January 1945

109

CAREER HISTORY 
Apr. 1998	Registered as Attorney
Joined Takagi Law OfficeNov. 2002	Partner, Suzuki Sogo Law Office (Incumbent)
Apr. 2015	Auditor, Research Institute of Economy,
Trade and Industry (Incumbent)
Mar. 2018	Member of the Board, Bridgestone
Corporation (Incumbent)
Jun. 2018	Outside Director and Audit & Supervisory
Board Member, Nippon Pigment Co., Ltd.
(Incumbent)
Auditor, Hitotsubashi University Collaboration
CenterJun. 2020	External Audit & Supervisory Board Member(Incumbent)

SELF-INTRODUCTION 

I registered as an attorney in 1998, and in the years
that followed I have handled a wide variety of cases
centered on both corporate law and civil cases. I havemet people from various industries and of all ages
through this process, allowing me to gain a breadth ofexperience. I began working as an outside officer oflisted companies in 2003. In these positions, I havebeen made constantly aware of the importance forcompanies to innovate in response to operating
environment changes while also remaining true totheir founding spirit and basic principles. Given thisexperience, I am impressed at how MARUI GROUP’s
co-creation philosophy puts forth a clear, shared
philosophy for guiding business activities. I see myself
as cheerful and positive. I also view the COVID-19
pandemic as an opportunity to accelerate digitizationand the diversification of work styles.

SELF-INTRODUCTION 

I am first and foremost a social person. My social
nature has benefited me greatly as new encounters
have led to new businesses or broadened my own
horizons. I also think I have an optimistic and positiveside. I was involved in developing EPOS cards rightfrom the beginning. I had no idea what to do at first,
but I sought a path by formulating theories andtesting these by talking with customers. My theories
often proved to be off, but this ongoing process led
to success in the end with the introduction of a credit
card that used an international brand. In the future,
I hope to remain true to the principle of co-creation
with customers and partners no matter what challenges may emerge.

Yoko Suzuki

Toshikazu Takimoto

External Audit &Supervisory Board Member

Managing Executive Officer

Shares held: 0
Born: September 1970

CAREER HISTORY 
Mar. 1977	Joined the Company
Jun. 2005	Director and General Manager,
Group Corporate Planning DivisionJun. 2008	Managing Director and Managing Executive
Officer
Apr. 2012	Senior Managing Director andSenior Managing Executive Officer
Apr. 2015	Director and Senior Managing Executive
Officer, and CFO
In charge of Corporate Planning and Finance
Responsible for Credit Card Services Businessand Information Systems
Jun. 2016	Senior Managing Executive Officer and CFO
In charge of Corporate Planning,
IR and Finance
Apr. 2017	Senior Managing Executive Officer and CFO
In charge of IR and Finance
Apr. 2019	Executive Vice President andCSO (Chief Security Officer) (Incumbent)
Participation in committees:
Management Committee
Compliance Promotion Board
Public Relations IR Committee
Internal Control Committee
Information Security Committee (Chairman)
Safety Control Committee
Insider Trading Prevention Committee

CAREER HISTORY 
Apr. 1983	Joined the Company
Apr. 2007	Executive Officer and General Manager,
Group Compliance DivisionJun. 2009	Director and Executive Officer, General
Manager, General Affairs Division
Apr. 2013	Director and Executive Officer,
General Manager, Personnel Division
Apr. 2015	Director and Managing Executive Officer,
and Chief Operating Officer
Healthcare Promotion and General Manager,
Personnel Division
In charge of General Affairs and Healthcare
Promotion
Apr. 2017	President and Representative Director,
MOVING CO., LTD.
Jun. 2018	Senior Managing Executive Officer,
CSO (Chief Security Officer), andCHO (Chief Health Officer)
In charge of Audit, General Affairs, Personnel,and Health Promotion
Apr. 2019	Senior Managing Executive Officer and CHO
In charge of Audit, General Affairs, Personnel,and Health Promotion
Apr. 2020	Senior Managing Executive Officer and CHO
In charge of Audit, Real Estate Business,
General Affairs, Personnel, and Wellness
Promotion (Incumbent)
Participation in committees:
Management Committee
Sustainability Committee
Environment and CSR Committee
Compliance Promotion Board
Public Relations IR Committee (Chairman)

110

Shares held: 5,900
Born: November 1959

SELF-INTRODUCTION 

Having joined in 1977, I am MARUI GROUP’s oldest
employee. I think my top five strengths as identified by
the CliftonStrengths® assessment (1. Woo®,
2. Achiever®, 3. Communication®, 4. Positivity®, and
5. Analytical®) match my personality.* With regard to“positivity,” in particular, I believe that the assessmentthat I am motivated by a strong conviction to overcome any challenge and produce positive results andto frame everything in a positive light is spot on. I evensee the COVID-19 pandemic as an opportunity, specifically an opportunity to accelerate the transformation and evolution of MARUI GROUP’s businessstructure. Also, I am constantly reminded of the factthat adopting others’ perspectives is the starting point
for co-creation.
* Please refer to pages 116–117 for information on the CliftonStrengths®
referenced.

SELF-INTRODUCTION 

Motohiko Sato

Yoshinori Saito

Executive Vice PresidentManaging Executive Officer

Shares held: 53,600
Born: December 1953

Shares held: 6,100
Born: July 1962

SELF-INTRODUCTION 

After nearly 30 years in general affairs, I was suddenly
assigned to the position of general manager of the
Personnel Division seven years ago. After that, I was
put in charge of distribution and real estate, areasin which I had absolutely no experience, in my mid50s. It was a rough transition for myself as well as,
I assume, the team members who had to deal withmy inexperience. At the time, however, our differing
backgrounds made this a mutually stimulating experience, and I think that the resulting “chemical reaction”
created new value, having the potential to create
something new in the future. The first step in cocreation is to learn things that you lack from others
while being accepting of others, both inside andoutside of the Company. I turned 60 this year, but
I do not want to let this deter me from engaging
with a new culture.

I feel like I am more patient today than when I wasyoung. I aspire to be fair in my interactions withpeople when overseeing organizations on a day-to-day
basis as I seek to drive their growth by guiding them in
exercising their individual talents. The COVID-19
pandemic is transforming our lifestyles and ourvalues. Amid these changes, I aim to take an over­arching perspective toward my work and the futureof our business, always looking to the essence ofthe situation rather than being preoccupied withthe superficial aspects. I am sometimes too meticulous. Going forward, I hope to strike a balance
between this meticulousness and bold action toenact MARUI GROUP’s philosophy of “equate thedevelopment of our people with the developmentof our company.”

SELF-INTRODUCTION 

Tomoo Ishii

Hajime Sasaki

Senior Managing Executive Officer

Senior Executive Officer

Shared held: 23,000
Born: July 1960

Shares held: 7,400
Born: November 1963

I am optimistic, and I love pondering new ideas. I canimagine nothing better than assembling a diverse
team and capitalizing on their individuality to give riseto new ideas. At MARUI GROUP, our co-creation
philosophy is something that has always been in our
DNA; all we did was give form to this value, which weshould continue to treasure going forward. I will neverforget how moved I was by the words of appreciationfrom customers I received during the experience ofstarting up EPOS cards or developing MARUI’s cocreation private brands. At AIM CREATE CO., LTD.,
which I currently oversee, as well, our greatest
strength is the ability to resolve issues through cocreation with customers and society. I hope to continue to refine MARUI GROUP’s shared DNA going
forward in order to create new forms of happiness
together with our team.

CAREER HISTORY 
Mar. 1982	Joined the Company
Mar. 2009	Executive Officer and General Manager,
Group Profit Improvement Division
Apr. 2011	Managing Director, Epos Card Co., Ltd.
Apr. 2012	President and Representative Director,
Epos Card Co., Ltd.
Jun. 2012	Director and Executive Officer
Apr. 2015	Managing Executive Officer (Incumbent)
Apr. 2016	Managing Executive Officer
Responsible for FinTech Business
Oct. 2017	Managing Executive Officer
Responsible for Retailing Business
Apr. 2018	Managing Executive Officer andCIO (Chief Information Officer)
President and Representative Director,
M & C SYSTEMS CO., LTD. (Incumbent)
Apr. 2020	Managing Executive Officer and CIO
In charge of Anime Business (Incumbent)
Oct. 2020	Director, D2C & Co. Inc. (Incumbent)
Participation in committees:
Management Committee
Sustainability Committee
Compliance Promotion Board
Public Relations IR Committee
Internal Control Committee
Information Security Committee

CAREER HISTORY 
Mar. 1986 Joined the Company
Jul. 2008	Executive Officer
General Manager, Financial Department
Apr. 2011	Director and General Manager,
Direct Marketing Department, MARUI CO., LTD.
Apr. 2013	Director and General Manager,
Collaboration Card Business Department,
Epos Card Co., Ltd.
Oct. 2013	Director and General Manager,
Sales Promotion Department,
Epos Card Co., Ltd.
Apr. 2015	Managing Director, Epos Card Co., Ltd
Director, M & C SYSTEMS CO., LTD.
Apr. 2016	Senior Executive Officer
President and Representative Director,
Epos Card Co., Ltd. (Incumbent)
Apr. 2019	Managing Executive Officer
Apr. 2020	Managing Executive Officer
In charge of FinTech Business (Incumbent)
Director, MRI Co., Ltd. (Incumbent)
Participation in committees:
Management Committee
Sustainability Committee
Compliance Promotion Board
Public Relations IR Committee
Internal Control Committee
Information Security Committee

CAREER HISTORY 
Mar. 1986	Joined the Company
Oct. 2007	Director and General Manager,
Card Planning Division, Epos Card Co., Ltd.
Apr. 2012	Director and General Manager,
Private Brand Department, MARUI CO., LTD.
Apr. 2013	Executive Officer
Apr. 2014	Managing Director and General Manager,
Specialty Store Department, MARUI CO., LTD.
Jun. 2014	Director
Apr. 2015	Director and Senior Executive Officer
Responsible for Retailing andStore Operation Business
Senior Managing Director, MARUI CO., LTD.
Director, Epos Card Co., Ltd.
Apr. 2016	Senior Executive Officer
President and Representative Director,
MARUI CO., LTD.
Apr. 2019	Senior Executive Officer
In charge of Architecture (Incumbent)
President and Representative Director,
AIM CREATE CO., LTD. (Incumbent)
Participation in committees:
Management Committee
Compliance Promotion Board
Internal Control Committee

111

CAREER HISTORY 
Mar. 1984	Joined the Company
Mar. 2008	General Manager, Women’s Clothing andAccessories Department, MARUI CO., LTD.
Apr. 2010	General Manager, Women’s Fashion
Department, MARUI CO., LTD.
Apr. 2011	Director and General Manager,
Business Promotion Department,
MARUI CO., LTD.
Apr. 2013	Executive Officer
Apr. 2014	Director and General Manager,
Store Business Promotion Department,
MARUI CO., LTD.
Apr. 2015	Managing Director, MARUI CO., LTD.
Director, AIM CREATE CO., LTD. (Incumbent)
Apr. 2019	Senior Executive Officer (Incumbent)
Senior Managing Director, MARUI CO., LTD.
Jul. 2020	President and Representative Director,
MARUI CO., LTD. (Incumbent)

SELF-INTRODUCTION 

Participation in committees:
Management Committee
Sustainability Committee
Compliance Promotion Board
Public Relations IR Committee
Internal Control Committee
Safety Control Committee (Chairman)

CAREER HISTORY 
Apr. 1983	Joined the Company
Mar. 2006	General Manager, Group Financial Department
Apr. 2007	Executive Officer (Incumbent)
Jul. 2008	General Manager, Personnel Division
Oct. 2009	General Manager, Voi Business Department,
MARUI CO., LTD.
Apr. 2011	General Manager, Corporate Planning Division
Apr. 2013	President and Representative Director,
MARUI FACILITIES Co., Ltd. (Incumbent)
Apr. 2015	Director, MARUI HOME SERVICE Co., Ltd.
(Incumbent)
Participation in committees:
Management Committee
Sustainability Committee
Compliance Promotion Board
Internal Control Committee
Safety Control Committee

CAREER HISTORY 
Mar. 1987	Joined the Company
Apr. 2009	General Manager, New Business Department
Oct. 2009	Deputy General Manager,
Voi Business Department,
MARUI CO., LTD.
Apr. 2012	General Manager,
Direct Marketing Department,
MARUI CO., LTD.
Apr. 2014	Director and General Manager,
Direct Marketing Department,
MARUI CO., LTD.
Apr. 2015	Executive Officer (Incumbent)
Director, MOVING CO., LTD.
Apr. 2016	Director and General Manager,
Omni-Channel Retailing Division,
MARUI CO., LTD.
Apr. 2019	President and Representative Director,
MOVING CO., LTD. (Incumbent)
Participation in committees:
Management Committee
Compliance Promotion Board
Internal Control Committee

112

SELF-INTRODUCTION 

I am responsible for the Retailing segment. The
COVID-19 pandemic has cast light on previously
unapparent connections with customers and business partners. For example, we got a lot of emails
from customers while our stores were on hiatus
asking us to reopen. We also received words ofappreciation and encouragement from business
partners when we canceled rent payments to reinforce our partnerships. MARUI GROUP is supported
by countless stakeholders, and I hope we can repay
them for this support though our business.

Masahiro Aono

Junko Tsuda

Senior Executive Officer

Executive Officer

Shares held: 3,600
Born: March 1962

Shares held: 5,800
Born: May 1972

SELF-INTRODUCTION 

I joined MARUI GROUP in 1983. When I was young,
I was able to overcome the challenges of my daily
work with the stamina I had built through sports whilein school. Today, my muscle has turned to fat, so I am
instead forced to call upon the breadth of experienceI gained in sales and management divisions at thehead office as I go about my current job in the building
management field. MARUI FACILITIES looks to
improve the value of all of its employees so that we
can improve corporate value through building management. This company is tasked with the development of green businesses, and we are committed toaccomplishing the targets for our key performanceindicators. I am working to acquire building manager
qualifications to spur my own growth, and I am
currently fighting to understand the specialized
terminology and complex machine structures.

SELF-INTRODUCTION 

My personality could be said to be cheerful, soft,
spirited, driven, and flexible. I greatly enjoy sharing in
the feelings of others. I do not hide my feelings, andI value both my feelings and those of others, loving
when our feelings together drive us toward positive
results. I am currently in charge of physical stores,
and I hope to provide everyone with spaces where
they can feel happiness as we transition to a postdigital world. An example of such a space would be
HARA8, a new food court at Marui Family Mizonokuchi
that was completed in late November 2019. It brings
me great happiness when I see smiles on the faces ofpeople of all ages enjoying this facility.

Yoshiaki Kogure

Miyuki Kawara

Executive Officer

Executive Officer

Shares held: 3,300
Born: September 1960

Shares held: 3,200
Born: August 1963

SELF-INTRODUCTION 

When people first meet me, they often think of me as
methodical and stern, but the more they get to knowme, the more they realize that I can be quite easygoing. I feel strongly that it is the duty of our generation
to ensure that happiness is available to future generations by exercising our co-creation philosophy. Basedon this belief, I solicited customer input together witha production company when I was involved in developing promotional videos for MARUI. The staff of the
production company stated that this process was afirst for them and also expressed how they felt, likethey had forged a strong connection with MARUI and
its customers as a result. The value of physical storeshas been transformed as a result of the COVID-19
pandemic. At the same time, digital transformations
are progressing rapidly. Given this situation, I will look
to co-create businesses that expand beyond theboundaries of distribution together with people withcareers in marketing and e-commerce in my efforts tocontribute to society.

I am drawn to strengths and differences. I have always
believed that strengths and differences are important
for realizing one’s ideals, but I have recently noticed
how strongly my approach has been colored by myown characteristics. A team is a collection of strengths,
and I get joy from finding success by working toward
new possibilities as a team. MARUI GROUP’s missionof making happiness available to all is no easy task,
but I think it is a goal worth pursuing. I will do everything in my power to overcome the challenges weface in order to shape a brighter tomorrow for future
generations. I respond to change with the positivity
and ideation needed to turn adversity into opportunities, and this drive inspires me to create maximized
services even in the midst of the COVID-19 pandemic.

SELF-INTRODUCTION 

Mayuki Igayama

Tatsuo Niitsu

Executive Officer

Executive Officer

Shares held: 7,400
Born: June 1964

Shares held: 21,100
Born: November 1967

People say that I pursue what I think is right withconviction and offer advice from a fresh perspective
to those who are lost. I experienced the processof co-creating stores together with customers
with Hakata Marui and Marui Family Mizonokuchi.
Co-creation gave rise to a store development
approach that was new to MARUI GROUP while also
providing encouragement and opportunities to customers. Moreover, our co-creation efforts made me
realize that the success of MARUI GROUP and thesuccess of our customers are one and the same. At
the same time, I recognized that changes represent
opportunities. I have made it a habit to reflect on how
chasing after what we see as the needs of customers
often results in our giving up on what they really wantfrom us. I am thus even more committed to innovating our business in order to serve customer needs in amanner that gives form to our co-creation philosophy.

CAREER HISTORY 
Mar. 1995	Joined the Company
Apr. 2014	Store Manager, Nakano Marui,
MARUI CO., LTD.
Apr. 2015	Executive Officer (Incumbent)
Director and Store Manager,
Marui Family Shiki, MARUI CO., LTD.
Apr. 2017	Executive Officer and General Manager
New Business Development Department
Apr. 2018	Director and Store Manager,
Marui Family Mizonokuchi, MARUI CO., LTD.
Apr. 2019	Director and General Manager,
Cardholder Service Department,
Epos Card Co., Ltd.
Oct. 2020	Director and General Manager,
Sales Promotion Department,
Epos Card Co., Ltd. (Incumbent)
Participation in committees:
Management Committee

CAREER HISTORY 
Mar. 1986	Joined the Company
Apr. 2007	Store Manager, Kobe Marui, MARUI CO., LTD.
Oct. 2008	General Manager, Brand Development
Department, MARUI CO., LTD.
Apr. 2012	General Manager, CSR Promotion Department
Apr. 2015	Director and General Manager,
Collaboration Card Business Department,
Sales Promotion Department,
Epos Card Co., Ltd.
Apr. 2016	Executive Officer (Incumbent)
Director and General Manager,
Sales Promotion Department,
Epos Card Co., Ltd.
Apr. 2018	Director and Store Manager,
Ueno Marui, MARUI CO., LTD.
Apr. 2019	Director and Store Manager,
Marui Family Mizonokuchi,
MARUI CO., LTD. (Incumbent)
Participation in committees:
Management Committee
Environment and CSR Committee

CAREER HISTORY 
Apr. 1991	Joined the Company
Apr. 2014	General Manager, Sales Planning Division,
MARUI CO., LTD.
Apr. 2016	Director and General Manager,
Sales Planning Division, MARUI CO., LTD.
Apr. 2019	Executive Officer (Incumbent)
Director and General Manager,
Sales Planning Division,
MARUI CO., LTD. (Incumbent)
Participation in committees:
Management Committee

113

CAREER HISTORY 
Apr. 1991	Joined the Company
Apr. 2012	General Manager, Customer System
Development Department,
M & C SYSTEMS CO., LTD.
Apr. 2014	General Manager, Systems Department,
Corporate Planning Headquarters,
Epos Card Co., Ltd.
Apr. 2018	Director and General Manager,
Customer System Development Department,
M & C SYSTEMS CO., LTD.
Apr. 2019	Executive Officer andCDO (Chief Digital Officer) (Incumbent)
Director and General Manager, Digital
Transformation Promotion Department,
M & C SYSTEMS CO., LTD. (Incumbent)
Director, Epos Card Co., Ltd. (Incumbent)
Participation in committees:
Management Committee
Information Security Committee

SELF-INTRODUCTION 

I see myself as a little optimistic. IT systems require acareful approach, but too much caution can halt
progress. A sense of balance is important. I therefore
endeavor to be proactive without being excessively
optimistic. When we were preparing to launch EPOS
cards, Visa sent us massive tomes of English manuals with no explanations. It was at that time that I met
someone who used to work at Visa. They explained
everything, from how the system works to how it is
implemented. Systems are supported by a number ofbusiness partners. Going forward, I aim to broaden
the scope of our co-creation in order to further
increase the value of MARUI GROUP.

Takeshi Ebihara
Executive Officer
Shares held: 1,800
Born: March 1969

CAREER HISTORY 
Mar. 2000	Acquisition of physician’s license,
position in general hospital
May 2002	Regular outpatient physician,department of psychosomatic medicine at
general hospital Company Physician,Furukawa Electric Co., Ltd.
Mar. 2010	Acquisition of Doctor of Medicine
Apr. 2011	Company Physician (Incumbent)
Apr. 2014	General Manager, Health Management Division
Apr. 2019	Executive Officer (Incumbent)
Apr. 2020	General Manager, Wellbeing Promotion
Department (Incumbent)
Participation in committees:
Management Committee
Sustainability Committee
Environment and CSR Committee

CAREER HISTORY 
Mar. 1996	Joined the Company
Apr. 2017	General Manager, Corporate Planning Division
Oct. 2018	General Manager, Corporate Planning Division
and Customer Success Division
Jan. 2020	Director, D2C & Co. Inc. (Incumbent)
Apr. 2020	Executive Officer and General Manager,
Customer Success Division and Corporate
Planning Division (Incumbent)
Participation in committees:
Management Committee
Sustainability Committee
Compliance Promotion Board
Public Relations IR Committee
Internal Control Committee
Insider Trading Prevention Committee

114

SELF-INTRODUCTION 

When I was in school, I loved working toward a sharedgoal together with a lot of my friends. Even after
becoming a doctor, I maintained my desire to energize
people and organizations using my specialized healthcare knowledge. This desire motivated me to researchsuch energization as a graduate student, leading me
to acquire my Doctor of Medicine. At MARUI GROUP,
co-creation is our passion, and I am happy to be able
to work toward our shared goal of making society
happier together with my colleagues. It is said thatpeople will start consistently living to be 100 in the
future. Meanwhile, we are currently battling the
COVID-19 pandemic. For these reasons, wellness andwell-being are more important than ever to building asociety in which everyone is empowered and able toexercise their individualism while living a fulfilling life.
By calling upon the specialized insight I have gained
studying frameworks for making happier, more energized people, I hope to help energize people while
contributing to the development of society.

Reiko Kojima
Executive Officer
Shares held: 0
Born: September 1975

SELF-INTRODUCTION 

In school, I learned civil engineering (city planning)
while working part-time entertaining guests at atheme park and serving customers at restaurants andairports. This experience let me feel the joy of directly
pleasing customers. This prompted my decision tojoin MARUI GROUP in 1996, as I recognized that thiscompany would let me contribute to communities by
opening new stores. However, my actual role ended
up being quite different as I spent a large portion of
my career in corporate planning and other back-officepositions. The most cherished experiences of my timeat MARUI GROUP have included being appointed tothe position of director of a Shanghai subsidiary
immediately after becoming a manager and taking
part in the co-creation process of developing Hakata
Marui as a deputy store manager. I am anxious tocontinue helping MARUI GROUP realize its vision
going forward.

Akikazu Aida
Executive Officer
Shares held: 2,600
Born: November 1973115

Top 10 Characteristic Qualities of MARUI GROUP Officers

Strengths as Defined by the CliftonStrengths® Assessment

2

6

9

2

6

9

2

Takehiko Takagi

ExecutingYoko Suzuki

Relationship
Building

5

8

3

8

Motohiko Sato

Influencing

2

8Tomoo Ishii

ExecutingToshikazu
Takimoto

Influencing

Yoshinori Saito

Executing

Hajime Sasaki

Strategic Thinking

101Masahiro Aono

Influencing

6

2

Yoshiaki Kogure

Executing

1

4

Mayuki Igayama

Executing

3

4

7

10

4

7

7

4

6
7

1

8

2

10

2

9

9

9
1

4

3
7
1

10

2

6

8

2

3

1

1

7

8
4

9
10

8

6
10

7

9

3

5

8

3

10

4

5
5

6

1

6

r

c

9

5

3

10
4

1

3

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ev

ng

hi

ra

Ac

Ar

6

9

1

Strategic

6

2

10

Learner

10

5

3
7

4

4

4

Intellection

1

8

1

7

2

Input

5

3

6
3

2

1

9

8

3

8

6

Ideation

Executing

7

10

4

Futuristic

Nariaki Fuse

4

10

4

5

Context

In my work as an attorney, I always focused on achieving thebest possible results through positivity and strategic thinking,and this focus showed up in my strengths.—Suzuki

5

8
6

5

5

2

Analytical

I spent 40 years in the National Tax Agency trying to maketaxation fair and impartial. This experience translated tostrength in the “Executing” domain.—Takagi

10

6

7

Relator

My motto is “wisdom and action,” and this showed up in mystrengths of Communication® and Activator®.—Taguchi

Executing33

Positivity

My love of microphones when I was little seems to be acommon characteristic of people with the Woo®
strength.—Sato

Hitoshi Kawai

1

10

Individualization

Comments from Officers After Taking the CliftonStrengths® Assessment 
I was happy to hear that our team had a lot of people thatvalue unique forms of creativity and those who seek to forge
their own unique identity.—Aoi

8

2

Includer0Executing1

Harmony

2

Yuko Ito

6

Empathy4Masahisa Aoki

Relationship
Building

Developer

6

Hirotsugu Kato

Connectedness89Adaptability

10

Influencing
Relationship
Building

Woo

12

Masao Nakamura

7

Significance

14

1

9

Self-Assurance

16

Strategic Thinking

Maximizer

18

Masahiro Muroi

Ability to influence others

7

5
5

Strategic Thinking
Ability to think about andanalyze informationand situations

Competitive

Strategic Thinking

Influencing

Relationship Building
Ability to build and nurturestrong relationships

Communication

Relationship Building

Yoshitaka Taguchi

Influencing

Command

Influencing

Influencing

9

Activator

Executing

20

Etsuko Okajima

4

RestorativeStrategic Thinking

Responsibility

Representation of CliftonStrengths® in Top 10 Strengths of Officers

Hiroshi Aoi

Focus

Influencing
35%

Domain ofoverall strengths

Discipline

Relationship Building
19%

Name

Deliberative

Executing31%

Ability to make things happen
Consistency

Strategic Thinking
15%

ExecutingBelief

Domain of Overall Strengths

Top 10 CliftonStrengths® Themes of MARUI GROUP Officers

Arranger

The CliftonStrengths® assessment defines 34 CliftonStrengths® themes divided
in four domains. The assessment of all 26 officers indicated strong representation of strengths in the Influencing and Executing domains. Tallying the top
10 strengths of all officers showed that a large number of officers had theMaximizer®, Individualization®, Arranger®, and Ideation® strengths. Based onthese findings, it could be said that the management team at MARUI GROUP
respects individuality and diversity and uses unprecedented ideas to simplify
complex situations, combines resources to improve productivity, responds
flexibly to change, and constantly pursues new heights without ever becoming
complacent. Particularly well represented was the strength of Maximizer®,
which was in the top 10 of 20 officers. This indicates a propensity for identifying the strengths and talents of others and synergizing these capacities torealize the highest possible results. In this manner, MARUI GROUP’s management team is ideally suited to maximizing the value of diversity.

AchieverMARUI GROUP’s VISION BOOK 2050, which was published in
2019, contained a skill map of executive officers meant to paint a
multifaced picture of the differing management skills and personalities of the officers responsible for specific areas of operation. This was the first time we had undertaken such an initiative,
but a resoundingly positive response was received from both
inside and outside of the Company. Based on this response, we
had officers take the Myers–Briggs Type Indicator® personality
test for Co-Creation Management Report 2019, this time expanding the scope to include all internal and external officers andAudit & Supervisory Board members. For Co-Creation
Management Report 2020, we turned our focus toward thestrengths of officers by using the CliftonStrengths® assessment*1
developed by Gallup, Inc., of the United States to investigate thequalities of all 26 officers. Discussing the results gave the officers an opportunity to better understand their own qualities aswell as their differences and how they can complement one
another as a management team. In this section, we will introduce the top 10 characteristic qualities of MARUI GROUP officers from among the 34 CliftonStrengths® themes.*2

My strengths included Responsibility® and Restorative®.
These seem to correlate to my efforts to address the uniqueconcerns of IT systems departments related to delivery timing
and avoiding issues.—Ebihara
It looks like my role on the management team is to set themood in a comedic manner.—Aono
Japanese people seem to view overcoming one’s shortcomings as a virtue. It is truly important to try and create positive
advances.—Kojima
This assessment reinforced my confidence in my positivity.
However, I understand that Positivity® is not always the rightapproach and that strengths can sometimes be
weaknesses.—Aoki
This is my fourth time being assessed. I often suggest thatnewer employees take this assessment to heighten theirself-esteem.—Tsuda*1 The CliftonStrengths® assessment is a test developed by Gallup, Inc., of the United States by analyzing the thought and behavioral patterns of 2 million successful individuals from aroundthe world to produce 5,000 different patterns that have been consolidated into 34 CliftonStrengths® themes. This assessment is used in the human resource development programs of
more than 90% of Fortune 500 companies. The assessment is based on positive psychology principles stating that focusing on one’s strengths, as opposed to their weaknesses, makes
them happier and better able to deliver their maximum performance. Moreover, understanding one’s qualities and comparing them to others fosters increased understanding of individual
diversity. Use of this assessment is growing rapidly in the United States as well as in Japan, with 23.4 million test takers around the world, 14.0 million of whom are in the United States
and 8.9 million are in Japan.
*2 Please refer to the following website for more information on the 34 CliftonStrengths® themes.
www.gallup.com/cliftonstrengths/en/253715/34-cliftonstrengths-themes.aspx

7

3

4

10
9

9

Junko Tsuda

Influencing

Miyuki Kawara

Relationship
Building

Tatsuo Niitsu

Strategic Thinking

3

Takeshi Ebihara

Relationship
Building

9

Reiko Kojima

Influencing

4

Akikazu Aida

Influencing

2

Representation in top 10
strengths of officers

8

4

1

8

5

10

8

10

9

3

1

7

7

6

4

2

8

5
2

10

5

7

5

1

10

5

2

6

8

9

10

1

3

7
6

5

7

9

3

1
3
4

5

7
71

5

6

13

2

8

0

11

5

7

8
0

20
59

6

1

7

6

4

10

5

3

5

8
70

9
4

2

2

4

3

1

8

4

7
3

4

2

7

5

8
8

9
7

2

10

8

9

6

2

9

10
10

1

7

3

6

8
1

6

3

1

1

8

4

3

5

6
5

9

6

4
2

8
5

4

10

10

5

2

9

3

13 16

2

6

6

9

5

7

17 13 11 12

7
0

4

10

15

5

2

11 11

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©2020 Gallup, Inc. Unauthorized reproduction and replication is prohibited. Gallup®, StrengthsFinder®, CliftonStrengthsFinder®, and the names of the 34 CliftonStrengths® are trademarks of
Gallup, Inc.

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