4Sustainability Management

Core ThemeCore Theme 4

MARUI GROUP Code of Conduct

Co-Creation Corporate Governance

MARUI GROUP engages in co-creation management with its stakeholders with the aim of contributing to the development of a flourishing and inclusive society that offers happiness to all. The various stakeholders of MARUI GROUP
include customers, shareholders, other investors, communities, the greater society, business partners, and employees.
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 theprinciples embodied in these norms and that we have established and adhere to the MARUI GROUP Code of Conduct.

MARUI GROUP’s Vision

We will develop management frameworks that include stakeholders in order to achieve harmony between theinterests and the happiness of all stakeholders.

Major Initiatives

Co-creation with stakeholders

MARUI GROUP is reinforcing its co-creation management activities through constructive
engagement with stakeholders with the ultimate goal of developing a business that brings joy toall customers. These initiatives are also aimed at winning the support of employees, customers,
shareholders, other investors, members of communities and society as a whole, and business
partners with regard to our inclusion-oriented activities.

Sustainability management

Through activities centered on the Sustainability Department and the ESG Promotion
Department, we have been verifying initiatives in accordance with the four core themes forsustainability, preparing a long-term vision based on the four core themes, and examining
possible key performance indicators for evaluating sustainability in our businesses.

Cultivation of future leaders

In April 2017, MARUI GROUP launched the Co-Creation Management Academy, a program fordiscovering and cultivating future leaders under the guidance of external directors and theGraduate School of International Corporate Strategy at Hitotsubashi University. For the first
iteration, 21 participants were chosen from among 134 applicants.

Risk management

Based on sustainability-related trends in the areas of business activities, human rights, and occu­
pational health and safety, we revised the MARUI GROUP Code of Conduct and established theMARUI GROUP Human Rights Policy and the MARUI GROUP Occupational Health and Safety
Policy in November 2017. The effectiveness of these policies will be evaluated once a year andawareness will be entrenched among all Group employees through training and other activities.

Please refer to the sustainability section of MARUI GROUP’s website for more information.

www.0101maruigroup.co.jp/en/sustainability/theme04/

Principal Data
2013

2014

2015

2016

Directors

7810

6

6

Ratio of independent directors (%)

141320

33

33

Fiscal year ended March 31 or as of March 31

2017

1. Customers Customers are the point of departure for all of our businessactivities. Acting in accordance with the corporate philosophyof “continue evolving to better aid our customers,” we will
strive to create products, services, and stores that bring joy to
all customers and can be used safely and with peace of mind.

6. Environmental Preservation MARUI GROUP sees all of its business assets as being
borrowed from society. Accordingly, we seek to understandthe impact of our business on the environment in order toreduce the environmental footprint of the entire Group and topromote eco-friendly business activities.

2. Investors We will pursue ongoing growth and medium-to-long-term
improvements in corporate value in order to live up to theexpectations of shareholders and other investors. In addition,
we will disclose information in a timely and appropriatemanner, conduct highly transparent business activities, andprevent insider trading.

7. Respect for Human Rights MARUI GROUP endorses international standards regarding
human rights and respects the personalities and individualityof all people. We stand in opposition of all discrimination,
whether on the basis of race, nationality, religion, ideology,
biological sex, age, physical characteristic, gender identity, orsexual orientation.

3. Communities and Society MARUI GROUP’s business activities connect us to various
areas of communities and the greater society. As responsible
members of communities and of society as a whole, we willseek to resolve social and community issues and invigorate
communities and the greater society to transform our main
business into a socially contributing undertaking.

8. Fair and Transparent Transactions MARUI GROUP adheres to domestic and overseas ethicalstandards and legal regulations as well as to its own internal
rules as it promotes fair and transparent transactions andcompetition while preventing corrupt and otherwise inappropriate activities (bribery, money laundering, inappropriate
lobbying activities and political contributions, etc.).

4. Business Partners 
MARUI GROUP’s business activities are supported by cocreation activities with business partners in Japan andoverseas. By fostering trusting relationships with partners
through fair and impartial transactions, we will promotemutual prosperity.

9. Elimination of Antisocial Forces We will staunchly refuse to have any connection with antisocial forces that threaten the order and safety of society.

5. Employees The growth of employees that are committed to helping
others is the source of all the value we create. In addition toproviding employees with a safe and hygienic workplaceenvironment, we will foster a corporate culture that isrespectful of diverse values and in which all employees canfeel energized and continue growing.

10. Protection and Management of Information Assets MARUI GROUP’s business activities entail the utilization of
personal information, confidential information, and intellectual properties. These information assets are protected andmanaged based on internal regulations, and we seek to avoid
infringing on the intellectual property rights of others.

Ratio of female directors (%)

00

101717Average age of directors

5455

5455

55

Scope of Application and Implementation

Audit & Supervisory Board members

4444450

The MARUI GROUP Code of Conduct is applicable to all Group officers and employees.
An internal notification system is in place to quickly uncover and address activities that violate
this code of conduct or activities that are illegal, unfair, or otherwise inappropriate.

Ratio of independent auditors (%)

5050

5050

Executive officers

45516

16

Ratio of female executive officers (%)

00

20.0

12.5

18.8

4.5

5.0

5.2

6.0

6.7

Return on equity (%)

3.0

3.0

3.3

3.3

3.1

48.43

56.29

58.87

70.68

80.24

—

1,297,250

1,469,111

1,703,353

1,933,685

32.0

32.3

31.1

41.1

Return on invested capital (%)
Earnings per share (yen)Total Group transactions (millions of yen)
Payout ratio (%)

31.0

Please refer to MARUI GROUP’s ESG DATA BOOKs for more information.

46

Moreover, this code of conduct is reviewed as necessary by the Board of Directors and revised when
deemed prudent through sufficient discussion. Should a serious violation of the MARUI GROUP Code ofConduct occur, we will take steps to identify the cause of the violation and prevent recurrence.
Established in April 2006
Revised in May 2014
Revised in November 2017www.0101maruigroup.co.jp/en/sustainability/lib/databook.html

47

Core Theme 4

MARUI GROUP Human Rights PolicyCore Theme 4

MARUI GROUP aims for the development of a flourishing and inclusive society that offers happiness to all.
MARUI GROUP therefore declares its commitment to endorsing international standards regarding human rights andensuring respect for the personalities and individuality of all people throughout the Company.

3. C ompliance with Occupational Healthand Safety Laws We comply with Japan’s Industrial Safety and Health Act andother labor-related legislation as well as with the internal
rules regarding occupational health and safety in place at all
Group companies and workplaces.

5. Facilitation of Employee Health Improvement MARUI GROUP understands that the health of employees is
crucial to their growth. We therefore practice healthcare
management aimed at preventing mental health issues andlifestyle diseases as well as enabling all employees to feel
more energized in their work.

3. Responsibility toward Promoting Respectfor Human Rights Based on the United Nations Guiding Principles on Businessand Human Rights, we practice human rights due diligenceand utilize other methods to evaluate the direct and indirect
impact of all of our business activities on human rights andthen address any negative impacts that come to light.

4. Realization of Safe and Low-Risk Workplace
Environments MARUI GROUP seeks to realize safe and low-risk workplaceenvironments by determining the sources and extent of theoccupational accident risks faced in each business andformulating and implementing measures to reduce or eliminate these risks.

6. Cultivation of a Corporate Culture Emphasizing
Occupational Health and Safety We will cultivate a corporate culture emphasizing occupational health and safety by conducting proactive employee
education and awareness-raising programs related to thesetopics. All Group officers and employees are expected toobserve the MARUI GROUP Occupational Health and Safety
Policy, and we ask that business partners and other external
stakeholders endorse this policy while also making this policy
publicly available.

Occupational Health and Safety Management System

Healthcare Management Promotion System
MARUI GROUP practices healthcare management to prevent
mental health issues and lifestyle diseases in employees, limit
exposure to secondhand smoke, reduce overtime, and raise
employee health awareness. Healthcare management initiatives are spearheaded by MARUI GROUP’s Personnel
Division and Health Management Division and are coordinated with the Company’s health insurance union.

1. Commitment to Respecting Human Rights We stand in opposition of all discrimination, whether on thebasis of race, nationality, religion, ideology, biological sex,age, physical characteristic, gender identity, or sexual orientation, and exercise respect for the personalities and individuality of all people throughout our business activities andour relationships with customers, business partners, employees, and other stakeholders.
2. Compliance with International Standards MARUI GROUP complies with international standards regarding human rights. Accordingly, we adhere to the standards
described in the International Bill of Human Rights and theILO Declaration on Fundamental Principles and Rights atWork regarding freedom of association, the right to collective
bargaining, the prohibition of forced labor and child labor,
and the elimination of workplace discrimination.

4. Fostering of a Corporate Cultureof Respecting Human Rights Through proactive education and awareness-raising programs targeting all Group officers and employees, we work toentrench the MARUI GROUP Human Rights Policy in ourcorporate culture and in all of our business activities. Inaddition, we ask that business partners and other external
stakeholders endorse this policy while also making this policy
publicly available.
Hiroshi Aoi
President and Representative Director
Representative Executive Officer
MARUI GROUP CO., LTD.
November 9, 2017MARUI GROUP Occupational Health and Safety Policy
MARUI GROUP seeks to co-create customer happiness through its business activities, which merge retailing andfinance. We understand that providing employees with a safe and hygienic workplace environment is essential tosupporting the growth of all employees and is instrumental to invigorating the entire organization and driving theimprovement of corporate value. MARUI GROUP therefore declares its intent to act in accordance with thisunderstanding in all business activities, pursue higher levels of safety and hygiene, and to promote voluntary
occupational health and safety initiatives on a Groupwide basis.
1. Development of a Workplace Environmentthat Prioritizes Health and Safety Realizing that the health and safety of employees is crucial totheir growth, all workplaces will foster awareness andheighten understanding regarding occupational health andsafety, prioritizing the development of an environment inwhich employees can feel safe and secure and maintain goodmental and physical health as they work.

2. Promotion of Voluntary Occupational Health andSafety Initiatives 
Occupational health and safety targets are set at all Group
companies and workplaces based on MARUI GROUP’s
occupational health and safety plans in order to promote
voluntary occupational health and safety initiatives. Thesetargets are periodically revised to pursue higher levels ofhealth and safety on a Groupwide basis.

Central Occupational Health and Safety Committee• Drafts Groupwide occupational health and safety
plans, supports occupational health and safety initiatives at Group companies and workplaces, andreceives reports on frontline operations• Holds regular meetings four times a year and special
meetings as necessary
Chairperson

Executive officer of MARUI GROUP CO., LTD.

Members

Three representatives from Group companies,
four representatives from labor unions, one
full-time director of MARUI GROUP’s healthinsurance union, and one Company physician

Secretariat

Labor Section, Personnel Division,
MARUI GROUP CO., LTD.

Secretariat

Workplace Occupational Health and Safety Committees•S et Group company and workplace occupational
health and safety targets, institute related initiatives,and implement improvements• Holdregular meetings 12 times a year and special
meetings as necessary

Members48

Consultation Venues
Company physicians and occupational health staff arepositioned in MARUI GROUP’s Health Management Division
on a full-time basis to provide employees with a venue for
consulting on mental health and other health issues and forreceiving support in improving lifestyle diseases. In addition,
we have established a hotline for receiving third-party physical and mental health consultation through collaboration witha specialized external organization.

One general occupational health and safety
manager, one occupational safety manager, one
to three occupational health managers, one
Company physician, and four to six representatives from labor unions

Hiroshi Aoi
President and Representative Director
Representative Executive Officer
MARUI GROUP CO., LTD.
November 9, 201749