VISION BOOK

2050

CO - CREATIONMARUI GROUP’s Quest to Create Happiness Together with Everyone

MARUI GROUP endeavors to help build
a flourishing and inclusive society thatoffers happiness to all. VISION BOOKCONTENTS

2050 was published as a roadmap for
01 Declaration

the accomplishment of this goal. Please
02 MARUI GROUP’s 2050 Vision

take a moment to look at the cover of
12 Letter to the People of 2050

this booklet. You should see your reflec14 Three Businesses Founded on Co-Creation for Generating Happinesstion. MARUI GROUP hopes to build a
32 Vision for the Future Beyond 2050

happier future together with you, the36 Sustainability Governanceone who took this booklet in hand and
46 Extra: Creation of MARUI GROUP’s 2050 Visioncame to understand our vision. MARUIGROUP’s 2050 Vision is our first stepon this path, a symbol of our firm commitment to accomplishing this goal.
VISION BOOK 2050

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MARUI GROUP endeavors to help build
a flourishing and inclusive society thatoffers happiness to all. VISION BOOK
2050 was published as a roadmap forthe accomplishment of this goal. Pleasetake a moment to look at the cover ofthis booklet. You should see your reflection. MARUI GROUP hopes to build ahappier future together with you, theone who took this booklet in hand andcame to understand our vision. MARUIGROUP’s 2050 Vision is our first stepon this path, a symbol of our firm commitment to accomplishing this goal.
VISION BOOK 2050

01

MARUI GROUP’s 2050 Vision

Harnessing the p

to build a wotranscends d
02

VISION BOOK 2050

ower of business

rld thatichotomies
VISION BOOK 2050

03

Why transcend dichotomies?

We believe that transc
will result in greater hacontribute to the realiz
and inclusive society.
04

VISION BOOK 2050

ending dichotomies
ppiness for all andation of a flourishing
VISION BOOK 2050

05

How will MARUI GROUP helptranscend dichotomies?

Critical Importance of
the Concept of Inclusion

Inclusion of all people

Previously excluded people

06

VISION BOOK 2050

Prior target

MARUI GROUP envisions a world in which we have transcended all dichotomies to build a flourishingand inclusive society that offers happiness to all. A society cannot be said to be happy if happiness isonly provided to certain groups. Only when happiness is available to all can society truly flourish.
Since its founding in 1931, MARUI GROUP has continued to evolve its unique business model
merging retailing and finance to reflect the changes in the times and in customers, all the while being
guided by the co-creation philosophy that “creditability should be built together with customers.”
Today, the concept of inclusion—integrating and including individuals that had previously been
excluded—infuses our quest to help shape the future. We believe that expanding the intersection
between the i­ nterests of all people through inclusion is a shortcut to the realization of a flourishingand inclusive society that offers happiness to all.
Inclusion is both a philosophy and a strategy, a key principle for transcending dichotomies toresolve social issues while increasing corporate value.

Previously excluded people

As shown in the graph to the left, companies generally tend to
focus on the large volume area represented by individuals that
could be considered “average” among the population, excluding
the outliers due to a perceived lack of applicable individuals.
MARUI GROUP strives to include all people and generate happiness by incorporating and including individuals that have previously been excluded.

VISION BOOK 2050

07

Various Dichotomies Creating

An Afflicted World
Dichotomies divide a single concept into two sides and presume inconsistency or opposition between
these sides. People have a natural tendency to categorize people and assume differences based on­dichotomies such as men and women and children and adults. These dichotomies can sometimes
create discrimination and disparities in treatment when used to divide or foster opposition between
groups, as seen in the dichotomies between the able-bodied and people with disabilities and between
the rich and the poor. Our world is afflicted by countless such dichotomies, and we can no longer turna blind eye to this issue. If we continue to ignore the global-scale problems we face, content to live
focused on the happiness and interests that lie before us, we will create a new dichotomy, between
current generations and future generations, and invite an undesirable future.

Previously Excluded Individuals
There is currently a global push for gender diversity to include
women and LGBT individuals. In Japan, meanwhile, the numberof non-Japanese residents has risen to approximately 2.5 million*1
and people with disabilities now number around 9.0 million,*2 which
represents an increasingly larger portion of the total population andmakes addressing the needs of such individuals a pressing task.
*1 Source: Ministry of Justice*2 Source: Cabinet Office

Number of non-Japanese residents of Japan

Approx.

2.5 million

Isolation in Developed Countries

Number of people with disabilities in Japan

A sense of isolation is spreading throughout developed countries.
For example, Japan ranks No. 1 in men feeling isolated and No. 2
in women among OECD (Organisation for Economic Co-operation andDevelopment) member countries. Elsewhere, isolation is said to havean effect on the U.K. economy equivalent to ¥5 trillion a year.*3

Approx.

9.0 million

Effect of isolation on the U.K. economy

5 trillion a year

*3 Source: Campaign to End Loneliness¥
Growing Middle Class in Asia
The middle class in Asia is expected to grow to represent 66% of the
global population by 2030 while the income divide in OECD member
countries is projected to increase 30% from the level in 2010 by
2060, reaching a disparity on level with the United States of today.*4*4 Source: OECD

Persistence of Serious Poverty
and Hunger Issues
Although poverty rates are falling across the globe, poverty andhunger remain serious issues. This situation will only be compoundedas accelerated population growth drives up the demand for food.

08

VISION BOOK 2050

Future portion of global population
represented by Asia’s middle class66%

Climate Change, Resource Depletion,and the Shift toward Renewable Energy
Damage to the global environment is resulting in frequent urban­disasters, disruption to the supply-demand balance of water, andresource depletion. Conversely, people should be shifting awayfrom energy generated using oil and coal, known causes of climatechange, to use renewable energy. In fact, renewable energy generated from natural sources is anticipated to account for 31% of allenergy used around the world in 2040,*5 matching the amount ofenergy generated using oil and coal.
*5 Source: U.S. Energy Information Administration

Circular Economy Transforming
Waste into Profit

Increase in income divide inOECD member countries

30%

Future portion of world’s power generated
from renewable sources

31%

Future portion of the global population
connected to the Internet

More than50%

Number of economic cooperation andother inter-country agreements

More than

3,000

A circular economy is an economic model that entails extracting
the maximum value from products, components, and resources
while perpetually recycling and reusing these articles so as not todiminish their value. This model makes it possible to generate new
profit using the mass quantities of garbage and other waste createdaround the world.

Spread of Internet of Things andControl through Artificial Intelligence
The Internet of Things, which entails connecting various articles tothe Internet, is spreading ever-more rapidly, leading to exponential
growth in the amount of data stored in electronic formats. At thesame time, innovation and practical application of artificial intelligence (AI), biotechnology, and nanotechnology is a likely future.
Moreover, the IT revolution is expected to create a world in whichmore than 50% of the population is connected to the Internet.*6*6 Source: Euromonitor International

Connections and Divides between Countries
In the midst of the globalization trend, connections between countries are increasing, as seen in the more than 3,000 economic cooperation and other inter-country agreements in effect.*7 However,there is also a pushback against this trend that seeks to widen thedivides between countries, which is exemplified by the United
Kingdom’s decision to leave the European Union and immigration
policies of the United States.
*7 Source: United Nations Conference on Trade and Development

VISION BOOK 2050

09

MARUI GROUP’s Vision for

The World of 2050
Understanding the current circumstances faced by the world, MARUI GROUP spent a year delving into
the future that seems certain, the future that seems uncertain, and the future that, although seeming
uncertain, is desirable to be made certain. We thereby are able to formulate a vision for the world of
the future based on three predictions: the emergence of a focus on individuality that still values connections, the appearance of a massive global market catering to low- and middle-income individuals,
and an increasing emphasis on businesses that coexist with the global environment. The vision for theworld of 2050 arising from these three predictions is a world of interconnectivity between countries,
races, and nature.

A World Focused on Individuality
That Still Values Connections
The promotion of diversity will likely bring about a world in which all people, including
senior citizens, LGBT individuals, expatriates, and people with disabilities, are able toexercise their individuality as a matter of course and in which the concept of a minority
is non-existent. At the same time, technological progress will expand our virtual space,making it possible for people to enjoy and find value in connections that transcend theboundaries of country and race, all while maintaining their own sense of individuality.

A world of interconnectivity between

10

VISION BOOK 2050

Wealthy
individuals

Massive global market

Low- and middle-income
individuals

A World Featuring a Massive Global Market
Catering to Low- and Middle-Income Individuals
Rising income in developing countries and growing income disparity in developed
countries can be expected to give rise to a society in which the traditional opposition
between developing countries and developed countries is replaced by a new sense of
opposition between low- and middle-income individuals and the wealthy. This opposition will generate various business opportunities associated with the shared social needs
and challenges of low- and middle-income individuals worldwide and with education,
healthcare, finance, and consumer services, giving rise to a massive global market.

countries, races, and nature

A World Emphasizing Businesses
That Coexist with the Global Environment
The global environment will no doubt become unable to support the mass production
and consumption trends seen thus far, heralding a world in which only those businesses that coexist with the global environment are able to survive. In this world,­renewable energy that capitalizes on the power of nature and circular economies thatturn wasted resources into profit will become commonplace fixtures. Furthermore, thepeople of the future will come to emphasize coexistence with the global environment
in their purchasing behaviors and consumption activities, leading to the mainstream
emergence of responsible consumers around the world.

VISION BOOK 2050

11

We wanted to build a sustainable society
and global environment.
We thus declared our commitment
to march forward toward our vision.

Hiroshi Aoi
President and Representative Director
Representative Executive Officer

We got our start in co-creation sustainability manage-­sustainability management initiatives. For this reason,

ment in 2019 following the formulation of a long-term

I would like to talk a little bit about how things were in 2018.

vision and targets for 2050. More than 30 years havebut in 2018, when we formulated our long-term vision,accomplished those targets? If our vision and targets havethe term “sustainability management” was not commonly

become a reality, even just a little, it is likely because theused in Japan. This was only shortly after the United

world was already leaning more in the direction we envi-

Nations Sustainable Development Goals, which put forthsioned than had been anticipated. If we have failed in thissustainability targets for 2030, had finally begun to catchquest, it is due to our lack of effort. The final judgment in

on. In the equity markets, investment focused on envi-

this regard must be made by the people of 2050, theronmental, social, and governance (ESG) factors waspeople we called “future generations” 30 years ago.

becoming more mainstream, particularly in Europe, but

Recognizing this fact, I want to help future generations properly evaluate MARUI GROUP’s co-creation

12

It may be difficult for the people of 2050 to imagine,passed since then. Have we realized this vision? Have wethere were many who were still skeptical of the economic
rationality of this approach.

VISION BOOK 2050

In this environment, MARUI GROUP was among thedeveloped countries and developing countries. Mean-

first to embark on ESG initiatives in 2016. At the time,

while, climate change was affecting people around the

MARUI GROUP was in the process of cultivating a cor­world through frequent natural disasters and otherporate culture in which all employees were inspired

impacts, making it impossible to ignore the severity

to practice autonomy and participate in guiding theof climate issues. It was an era characterized by theCompany. Accordingly, we were able to take ESG beyond­unprecedented emergence of dichotomies.

a philosophy, transforming it into a business strategy inThis was the backdrop for the start of MARUI

the hands of employees who exercised ownership. The

GROUP’s co-creation sustainability management.

result was improved corporate value.

­Furthermore, the process of thinking about management

On March 31, 2018, MARUI GROUP’s stock pricefrom a long-term perspective looking 30 years down thewas over 2.2 times higher than on March 31, 2013,line made us realize something important.

prior to our embracing ESG initiatives, exceeding the

Up until that point, MARUI GROUP had been

growth rate for earnings per share over the same five-working for the benefit of stakeholders, namely custom-year period by approximately 30 percentage points.

ers, investors, business partners, society, and employees.

Meanwhile, across-the-board declines in price earnings

However, we realized that we were forgetting another im-

ratios were seen among the department stores and credit

portant group of stakeholders: future generations. This

card c­ ompanies that were our rivals. The higher valuation

realization affirmed the necessity of co-creation withof MARUI GROUP clearly reflected the positive evalua-future generations in our quest to help build a sustain-

tion of our ESG initiatives.

able society and global environment through our

We were overjoyed to have received such acknowl-business. Looking at environmental issues, for example,

edgment from investors and other stakeholders.

it may have been all right to continue on our current­Regardless, we did not allow ourselves to become com-course if we only thought of our own generation.

placent, rather choosing to forge ahead on this course.

However, if we considered our children and future gener-

This was when we became driven to undertake full-ations, it became apparent that immediate action was

fledged co-creation sustainability management.

required. We viewed this action to be an ethical respon-

A long-term vision and targets are indispensable tosibility for us.

co-creation sustainability management. MARUI GROUP’s

Our decision to engage in co-creation sustainability

employees and officers thus began a yearlong process ofmanagement was not for the sake of MARUI GROUP’s

dialogue to formulate such a vision and targets. The

sustainable growth alone. No, it was also because wevision we established for 2050 was “harnessing thewanted to build a sustainable society and global environ-power of business to build a world that ­transcends

ment. It was our hope that all businesses would embracedichotomies.”

sustainability. We became a frontrunner in this field toThis vision was prefaced on the sense that our worldinspire them to do so.

was facing a crisis at that point in time. This crisis could

It is unlikely that I or many of my colleagues frombe seen in the decision of the United Kingdom to leave

2019 will be around to see the extent to which our vision

the European Union, which was in part a response tocame true.

fears of mass immigration. It could be seen in then U.S.

Regardless, in 2019 we declared our commitment to

President Donald J. Trump’s “America First” policy. Thismarch forward toward our vision of the future we desire.

crisis threatened to destroy the pluralistic global societythat Japan and other developed countries had labored toJanuary 2019

create. At the same time, growing income disparity wasforming a common connection between people in

VISION BOOK 2050

13

How can MARUI GROUP
help transcend dichotomies?

Three Businesses Founded on
Co-Creation for Generating Happiness

Inter-Generational Businesses
Provision of options for coexistence withthe global environment and future generations

Co-Creative Businesses

Financial Inclusion

Provision of options emphasizing balance
between individuality and connections

Provision of options foralleviating income disparity

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

14

VISION BOOK 2050

With eyes to 2050, MARUI GROUP has defined three businesses founded on co-creation as the­instruments for realizing its vision of “harnessing the power of business to build a world that­transcends ­dichotomies.” These three businesses capitalize on MARUI GROUP’s core value—
the co-creation of creditability—as well as on the strengths and platforms cultivated through existing
businesses. Furthermore, the businesses overlap with one another, as opposed to being completely
isolated. By expanding the intersection between these three businesses and thereby generating­happiness for all people, including future generations, MARUI GROUP’s 2050 Vision can be realized.

Inter-Generational BusinessesIn the world of 2050, we expect only those businesses that coexist with the global­environment will be able to survive. Moreover, forging a sustainable future in harmony
with the global environment for future generations will require us to cultivate theyounger generations that will shape society 30 years from now, growing them into
leaders that can guide society. Recognizing this fact, MARUI GROUP has subdivided
its inter-generational businesses into green businesses and human businesses,
through which it will provide options for coexistence with the global environment
and future generations.

See pages 16–23

Co-Creative BusinessesThe rapid expansion of virtual space and the backlash against raw individualism
will likely make the world of 2050 a world that emphasizes individuality while alsofinding value in connections that transcend the boundaries of country and race.
MARUI GROUP functions as a platform to society, enabling it to provide spaces
and services emphasizing balance between individuality and connections through­co-creation with all the stakeholders that touch its value chain.

See pages 24–27

Financial Inclusion

We predict that a massive global market catering to low- and middle-income individ­
uals will appear in the world of 2050. MARUI GROUP intends to extend its financial­inclusion initiatives, which involve supplying financial services for everyone, beyond
their current home in the domestic market into overseas markets. Through this undertaking, we aim to provide options for alleviating income disparity and other concerns
regarding money felt by people around the world.

VISION BOOK 2050

See pages 28–31

15

Provision of options for coexistence with the global environment and future generations

Inter-Generational Businesses
MARUI GROUP is developing inter-generational businesses that cater to the interests of both current and future
generations. We recognized that building a sustainable society and global environment through business requires
co-creation with the stakeholders that are future generations. When looking at environmental issues, one can avoid
taking action if they only think of current generations. However, if one considers children and future generations,
it is clear that immediate action is required. MARUI GROUP views this action as an ethical responsibility.

MARUI GROUP’s

MARUI GROUP promises to develop businesses by 2050
that increase the interests of both current and future generations.

Options for coexistence with the global environment (green businesses)
Options for coexistence with future generations (human businesses)

People dreaming of a sustainable society and global environment
All members of current and future generations

16

VISION BOOK 2050

Inter-Generational Businesses

Options for Coexistence with the Global Environment
MARUI GROUP defines inter-generational green businesses as businesses that provide sustainable options forcoexistence with the global environment which transcend
the current and future generations. Activities and investments for reducing environmental impacts can place
down­ward pressure on short-term earnings in the form ofcosts. However, if we avoid these actions, we will burden
future generations with the disadvantages of environmental issues. Adopting renewable energy, for example,
requires short-term costs to make the necessary initial­investments. Viewed from a long-term perspective,

however, these investments will create sustainable value
for future generations. Initiatives for reducing CO2 emissions, meanwhile, are themselves sources of innovation
for creating new green businesses and thus have the­potential to increase long-term earnings. In recognitionof this fact, MARUI GROUP has set key performance­indicators (KPIs) for its long-term targets that are linked
to activities for reducing environmental impacts and toearnings. By managing these KPIs, we will advance environmental issues as a business.

EnergyReduction ofenvironmental impacts
Environmental=
efficiency

Operating income

e.g., s cope 1, 2, and 3 applicable usage of electricity, gas, etc.

Waste

CO2 emissions
e.g., w
 aste from the Company and tenants (food,plastic, paper, etc.)

Green businesses
Reducee.g., r eduction in Company resource usage (sizes
matched to customers, sharing economies,
stores that do not sell, etc.)

Circular economies
Ratio of circular=revenue

Circular sales /Transactions
Total Retailingsegment transactions

Reusee.g., apparel trade-in and resale

Recyclee.g., recycling by tenants (apparel, meals, etc.)

Long-Term Targets
Medium-Term Targets(5 years in the future)
Environmental efficiency 10.2
• 20% reduction in greenhousegas emissions*•7 0% of electricity sourced fromrenewable energy•6 0% rate of resource recycling

Long-Term Targets(10 years in the future)

Ultralong-Term Targets(30 years in the future)

Environmental efficiency 15 or more

Environmental efficiency 20 or more• 40% reduction in greenhousegas emissions• 100% of electricity sourced fromrenewable energy• 70% rate of resource recycling• 80% reduction in greenhousegas emissions

Ratio of circular revenue 30% or more Ratio of circular revenue 40% or more

• 100% rate of resource recycling
Ratio of circular revenue 50% or more* Approximately 99% of greenhouse gas emissions from MARUI GROUP were in the form of CO2 emissions in the fiscal year ended March 31, 2018.

VISION BOOK 2050

17

Provision of options for coexistence with the global environment and future generations

Overview of CO2 Emissions and Priority Issues
Utilizing defined standards for calculating CO2 and other greenhouse gas emissions, MARUI GROUP has been calculating emissions based on Scope 1 andScope 2 (emissions from MARUI GROUP) and Scope 3 (emissions from thevalue chain outside of MARUI GROUP) since the fiscal year ended March 31,
2014. Third-party verification has been received for these emissions calculations
since the fiscal year ended March 31, 2017.
Emissions applicable under Scope 1 and Scope 2 are CO2 emitted fromMARUI GROUP itself while emissions applicable under Scope 3 represent CO2
emitted throughout the Company’s value chain. The Company has realized­reductions in total CO2 emissions across the value chain for five consecutive
years. Seeking to prioritize the reduction of its own CO2 emissions (Scope 1
and 2), MARUI GROUP has established clear reduction targets based on scientific rationale, which were certified by the Science Based Targets initiative.
We are making steady progress toward lowering environmental impacts basedon our long-term targets.

In 2018, MARUI GROUP became the firstJapanese retailing company to be included in
the Climate A-List, signifying that it engages insuperior climate change response initiatives.
Approximately 7,000 companies from acrossthe globe were investigated during the process ofcompiling the 2018 Climate A-List, and a total of
126 companies were selected.

MARUI GROUP’s CO2 Emissions across the Value Chain
660,000 t-CO2

FY2014640,000 t-CO2

FY2015FY2016610,000 t-CO2

FY2017600,000 t-CO2
520,000 t-CO2

FY2018(Down 13% year on year)

Scope 3 410,000 t-CO2 78.9%
Emissions from raw material procurement, transportation,and products purchased by customers
Scope 2 100,000 t-CO2 19.2%
Emissions from operation of MARUI GROUP’s stores and offices
Scope 1 10,000 t-CO2 1.9%
Emissions from transportation by MARUI GROUP’s vehicles

In the fiscal year ended March 31, 2018, MARUIGROUP established the targets of achieving a 40%
reduction in Groupwide total greenhouse gas
emissions attributable to Scope 1 and Scope 2
from the level in the fiscal year ended March 31,
2017, by the fiscal year ending March 31, 2031,
and a 35% reduction in Scope 3 emissions overthe same period. In addition, we have set a longterm target of pursuing an 80% reduction in the
combined volume of Scope 1 and Scope 2 emissions from the level in the fiscal year ended March
31, 2017, by the fiscal year ending March 31,
2051. These targets have been certified by
Science Based Targets.

Message from a Green Business Representative

Transcending of the Dichotomy between the Interests of Current Generations and Future Generations

Hirotsugu Kato
Director andSenior Executive Officer
Chief Digital Officer,
General Manager, IR Department
In charge of Corporate Planningand ESG Promotion
MARUI GROUP CO., LTD.

18

MARUI GROUP engages with all of its stakeholders while practicing co-creation management to expand the intersection between the interests of different stakeholders. We recently added future generations to the groups of stakeholders that we consider. This move clarifies our intent to focus on the interests of not just current generations but
also future generations or, in other words, to conduct management with an eye toward increasing lifetime value. This
move is thus crucial to upgrading our co-creation management approach to co-creation sustainability management.
Moreover, the perspective this move brings is vital to green businesses. In 2016, we were basing energy procurement
decisions purely on price, which led to ESG-minded investors pointing out that our CO2 emissions had increased.
This decision may have seemed rational when only considering the interests of current generations. However, it likely
came at the expense of the interests of future generations and thus risked saddling them with environmental issues
and other substantial burdens. It was for this reason that the KPIs for green businesses were set to transcend the­dichotomy between the interests of current generations and future generations and to increase lifetime value without
becoming overly preoccupied with the interests of either party. I am confident that achieving the targets for these
KPIs will effectively enhance our co-creation sustainability management.

VISION BOOK 2050

Inter-Generational Businesses

Decision to Change Source of Electricity
Roughly 80% of MARUI GROUP’s CO2 emissions (Scope 1 and 2) are attributable to electricity use. To lower these emissions, we have proceeded to implement electricity conservation activities, including the introduction ofelectricity-saving equipment at Marui and Modi stores and offices and the
reduction of overtime through work style reforms.
At the same time, it can be expected that electricity use will increase as
business model reforms result in the installation of additional kitchens andrefrigerators in stores to accommodate increased food vendors and as distribution centers are operated 24 hours a day through the AutoStore robotic
warehouse system to accommodate the trend toward e-commerce. MARUIGROUP has thus chosen to pivot away from reducing electricity use tochanging the source of its electricity to renewable energy, setting the targets ofsourcing 70% of its electricity from renewable energy by 2025 and sourcing
100% by 2030.

In July 2018, MARUI GROUP became a memberof the international initiative RE100 to more effectively pursue its target of sourcing 100% of its
electricity from renewable energy by 2030.

Evolution from Reducing Environmental Impacts to Providing Options
for Coexistence with the Global Environment

Minna Denryoku Co., Ltd.

MARUI GROUP’s CO2 emissions reduction activities go beyond simply
lowering environmental impacts to function as green businesses that provide
options for coexistence with the global environment through co-creation withcustomers, business partners, and investors.
For example, MARUI GROUP procured ¥10.0 billion through its issuanceof the first green bonds to be offered by a Japanese retailer in October 2018
to further it toward its goal of sourcing 100% of its electricity from renewablesources.* The seven domestic institutions that expressed intent to invest inthese bonds praised them as “options for ESG investment.”
Furthermore, MARUI GROUP is examining the possibility of providing
EPOS cardholders with electricity generated from renewable sources throughco-creation with Minna Denryoku Co., Ltd. Moreover, by encouraging customers to pay their monthly electricity bills with their EPOS card, we provide sustainable options while developing MARUI GROUP’s business.

MARUI GROUP helped establish a framework for astable and prioritized supply of renewable energy
through a business and capital alliance with Minna
Denryoku, the first company in Japan to realize
power supply traceability.

MARUI GROUP was the first Japanese retailer
to declare its endorsement of the Task Force on­Climate-related Financial Disclosures. The Company
plans to begin disclosing information pertaining toclimate-related risks, opportunities, and financial
impacts in March 2019.

* MARUI GROUP has received a second opinion regarding the eligibility of its initiatives for green bonds in theform of a third-party evaluation from ESG evaluation company Sustainalytics. This evaluation verified that theCompany’s initiatives were highly reliable, contributed to meaningful improvements, and conformed to thefour conditions of the 2018 Green Bond Principles.

Breakdown of MARUI GROUP’s CO2 Emissions(Scope 1 & 2)

Roadmap to Accomplishing 100% Renewable Energy Goal
Total electricity use

200 GWh

Other

Gas
10%

Approx.
11,000 tons

Fiscal year ended
March 31, 2018

113,104 t-CO2

6%
Approx.
5,000 tons
Electricity
84%

Approx.
95,000 tons

170 GWh

Ratio ofrenewableenergy0%

1%

FY2017(0 stores)

FY2019(1 store)50%■ Non-renewable energy

VISION BOOK 2050

FY2021(13 stores)

70%

FY2026(18 stores)

100%

FY2031(All stores)■ Renewable energy

19

Provision of options for coexistence with the global environment and future generations

Circular Economy for Transcending Dichotomy between Apparel
Supply and Demand
In Japan, approximately 1 million tons of apparel items are thrown away eachyear, and less than 30% of apparel items are reused or recycled.* MARUIGROUP’s efforts to address this social issue started in 2010 when it began
accepting trade-ins of clothing and shoes that customers no longer needed
and reusing these items. We later expanded our efforts to reduce waste by­developing products that were matched to customer needs.
Today, however, the apparel supply and demand gap is widening (see graphbelow). The nearly 1.5 billion apparel items produced in excess of consumer
demand are not purchased and are therefore disposed of as waste. If this serious
social issue is left unchecked, the social costs of these wasted resources will
become the burden of future generations. MARUI GROUP seeks to over­come
this issue by creating sharing and other new businesses and promoting acircular economy model to turn wasted resources into profits.

Rakuchin Kirei series shoes are designed throughplanning meetings with customers to realize levelsof comfort that guarantee shoes are not thrownaway due to discomfort stemming from mismatched sizes. We are expanding our lineup ofthese shoes to cover 100% of foot sizes with thegoal of providing shoes matched to the unique
physical characteristics of each customer.

* Source: Organization for Small & Medium Enterprises and Regional Innovation

Shift from Ownership to Use Offering Environmental ValueMARUI GROUP has expanded the scope of its ongoing reduction initiatives
to incorporate the concept of a shift from ownership to use advocated by thecircular economy model. This decision was the impetus for our creation of
sharing businesses that handle articles such as clothing, bags, and watches
and our reorientation toward experience-providing stores that do not sell.
We see sharing-oriented circular economies as having the potential to offer
environmental value. Taking a dress that a person will only wear once as an
example, rather than that person owning the dress, it would be better for
MARUI GROUP to own the dress instead and rent it to multiple customers sothat they can use it when needed. This situation would create environmental
value by reducing the number of new dresses produced. Moreover, service
value would also increase as customers have the joy of choosing from a wider
selection of products because they will only use them once. By providing­customers with options for coexistence with the global environment thatare enjoyable and waste free, we aim to increase the volume of transactions
associated with circular economies.

Apparel Supply and Demand Gap

30.000000

Environmental Impact of One Dress Sold/Rented
Supplied

2,798

23.333333
16.666667

1,196
10.000000
1,154
1990

Sale

Rental

3.5t-CO2

0.5t-CO2

million items

Consumed

1,343

million items

85% reduction in emissions per transaction
Buyers/Users

1,000

1,000

Dresses produced

2,000

333

2017

Source: Kojima Fashion Marketing Co., Ltd.
www.fcn.co.jp/ (Japanese only)
Numbers of items supplied are calculated by adding imported anddomestically produced items (excluding undergarments). Numbers of
items consumed are estimated based on the average numbers of annual
purchases per household and the total numbers of households describedin household surveys by the Ministry of Internal Affairs andCommunications.

20

DRENi is a directly operated dress rental shop.
This new store offers rentals of dresses for which
opportunities to wear are limited, thus creating
leeway in customers’ finances and closets andenabling customers to try out designs and colors
that they would be hesitant to purchase, making
for a new business that is friendly to the environment and to customers’ wallets.

Source: MARUI GROUP CO., LTD.

VISION BOOK 2050

Inter-Generational Businesses

Options for Coexistence with Future Generations

One of MARUI GROUP’s missions is to increase the happiness of all people, including those of future generations.
Our vision for 2050 and the long-term targets for thethree businesses were established to guide us in fulfilling
this mission. However, the accomplishment of this visionand targets will require us to enhance our corporate
culture in order to foster human resources with a capacity
for empathy, which is the ability to share one’s beliefs andunderstand others, and a propensity for innovation,
which is a drive for autonomous action. It is stated in
MARUI GROUP’s philosophy that we should “equate thedevelopment of our people with the development of ourcompany.” Accordingly, we see a company as being aplatform for supporting the growth of its people. Companies are thus only able to grow when they effectively
operate this platform. MARUI GROUP’s long-term targets
provide a wide range of options for coexistence with
future generations through co-creation with external
entities, which will be conducted alongside humanresource investment and the cultivation of a corporate
culture that fosters a propensity for innovation foundedon co-creation.

Corporate culture
e.g., v oluntary participation,
new business creation

Internal

Human resource investmente.g., f uture leader development program,secondment to start-up companies

Human businesses

External (society)e.g., financial literacy and sustainability education

Long-Term Targets
Medium-Term Targets(5 years in the future)

Long-Term Targets(10 years in the future)

Ultralong-Term Targets(30 years in the future)• Annual human resource investments of ¥1 billion or more (continued over the long term)• Voluntary participation by 10,000 employees or more each year (continued over the long term)• Aggregate total of 120 or more
future MARUI GROUP
leaders cultivated• Aggregate total of 4,000 or more­individuals capable of creating
future value cultivated• Financial and sustainability education for future generations in Japan(continued over the long term)

VISION BOOK 2050•A
 ggregate total of 10,000 or more­individuals capable of creating future
value cultivated• Financial and sustainability education for
future generations overseas

21

Provision of options for coexistence with the global environment and future generations

Ongoing Human Resource Investments for Realizing 2050 Vision
Human resource investments are recorded as expenses for accounting
purposes, causing short-term declines in profit. However, ongoing humanresource investments are essential to carrying out our philosophy: “equate
the development of our people with the development of our company.” More
importantly, MARUI GROUP emphasizes the importance of human resource
investments to accumulate the intangible assets that are a wellspring of future
corporate value. This belief has prompted us to disclose and track humanresource investment amounts and trends since the fiscal year ended March
31, 2017. The Company plans to conduct human resource investments inthe fiscal year ending March 31, 2019, for cultivating human resources for the
future totaling ¥1,030 million, a year-on-year increase of over 40%. Furthermore, we intend to conduct approximately ¥1,000 million worth of humanresource investments each year going forward to ensure the accomplishmentof MARUI GROUP’s 2050 Vision.

Groupwide project teams serve as forums for­in-depth, forward-looking discussion on themesthat will affect the Company or society from a­medium-to-long-term perspective.

Cultivation of Corporate Culture for Fostering a Propensity for Innovation
MARUI GROUP began building frameworks for encouraging employees togrow through voluntary participation in the fiscal year ended March 31, 2017.
New business fields require completely different success models. Accordingly,
we are advancing an organization-wide push to foster a propensity for innovation that drives employees to autonomous thought and action, seeing everything as relevant to themselves, founded on the capacity for empathy that wehave aspired to since our founding.
Initiatives to this end have included Groupwide project teams for broadening employees’ perspectives and dispatches to business schools as well as­secondment to start-up companies creating new businesses, work-experience
programs in Africa through ultralong-term research associations, assistancefor future planning via financial seminars, and the establishment of Singularity
University and other research organizations. Furthermore, the Co-Creation
Management Academy was established as a future leader development program
to address one of the issues identified when evaluating the effectiveness of
the Board of Directors. Through this program, each year 20 candidates are
selected to participate in a yearlong curriculum during which they learn
about management. In the fiscal year ending March 31, 2019, the third­iteration of this program was enhanced with a view toward participants
becoming managers of MARUI GROUP as well as improved post-completionskill improvement support and revised evaluation systems.

Human Resource Investments for the Future

Nearly2.2 times higher

Recruitment and otherhuman resource development expenses¥220 million¥730 million

Training-related
personnel expenses¥250 million

Training center
expenses¥80 million

22

FY2018¥730 million¥480 million

FY2017MARUI GROUP’s future leader development
program allows participants to learn about management perspectives through a yearlong curriculum established under the supervision of outsideorganizations and external directors.

Breakdown of Human Resource Investments

Approximately ¥1,000 million
each year over the long term
¥1,030 million

The Medium-Term Management Visionary Committee is a venue for brisk discussion about important themes ­pertaining to future management.

FY2018FY2019(Target)External training /education fees
¥180 million

FY2020~VISION BOOK 2050

Inter-Generational Businesses

Declaration of Support for UN Standards of Conduct for Businessfor Tackling Discrimination of LGBTI Individuals
Eliminating discrimination of LGBT individuals is imperative to expanding therange of options for connections with others and for coexistence with future
generations. In December 2018, MARUI GROUP declared its support for theStandards of Conduct for Business for tackling discrimination against LGBTI
individuals, becoming the first Japanese retailer to do so. Furthermore, thestatement that individuals are not to suffer discrimination on the basis ofsexual identity or sexual orientation is included in the Company’s labor agreements and the MARUI GROUP Human Rights Policy states that “we stand in
opposition of all discrimination, whether on the basis 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.” In addition, the scope of application of human resource
systems pertaining to spouses was expanded in April 2018 to include not only
spouses from legal marriages but also spouses from common-law marriages
and same-sex partners. In conjunction with this change, the word “spouse”
was replaced with “partner” in these systems.

MARUI GROUP has been awarded the highest
rating of gold in the PRIDE INDEX for two consecutive years from work with Pride, an organizationthat seeks to create comfortable workplaces forLGBT individuals and other sexual minorities
through initiatives that go beyond the boundaries
of companies.

Financial and Sustainability Education for Future Generations
MARUI GROUP provides financial education that emphasizes coexistence with
future generations. Financial literacy in Japan is lower than in other countries.
MARUI GROUP seeks to address this issue with Money Seminars and other­financial education programs designed to provide opportunities to think about
asset building conducted through tsumiki Securities Co., Ltd., a securities
company that started service in August 2018. Looking ahead, we hope to supply
a wide range of options by offering financial literacy education overseas as well.
MARUI GROUP also publishes messages in the LGBT section of the children’s newspaper published by The Mainichi Newspapers Co., Ltd., for elementary school students. The goal of these messages is to raise awarenessregarding LGBT individuals. In addition, we team up with the NPO ReBit toconstruct educational materials designed to bestow basic knowledge on LGBT
individuals to elementary school students.

MARUI GROUP is formulating plans to provide­financial education to elementary school students
as part of its sustainability education for future
generations. By teaching students about the advantages and disadvantages of money and theoptions for using, saving, and increasing theirmoney, we hope to alleviate concerns for the future
pertaining to money and improve financial literacy
among future generations.

Message from a Human Business Representative

Refinement of Propensity for Innovation by Increasing Knowledge and Expanding Perspectives
through Learning Opportunities

Tomoo Ishii
Director and Senior Managing­Executive Officer
Chief Security Officer
and Chief Health Officer
In charge of Audit, General Affairs,
Personnel, and Health Promotion
MARUI GROUP CO., LTD.

One of the dichotomies to be faced in the future is that of people versus AI. This dichotomy is rooted in the fear ofpeople being replaced by AI. However, there are opportunities to be gleaned from this dichotomy if one takes apositive outlook, believing in their own skills and potential, rather than such a negative one. Part of our philosophy
is to “equate the development of our people with the development of our company.” The driving force behind suchdevelopment is voluntary learning. It is for this reason that frameworks for voluntary participation have been incorporated into our human resource systems, project team activities, and all other aspects of our organization inorder to cultivate a corporate culture encouraging a strong appetite for growth. I feel that an important mission ofmine is to help refine our propensity for innovation by increasing the knowledge and expanding the perspectivesof employees through learning opportunities while fostering altruistic human resources. I therefore hope to accelerate our growth initiatives to ensure that MARUI GROUP is always a company that benefits society.

VISION BOOK 2050

23

Provision of options emphasizing balance between individuality and connections

Co-Creative Businesses
MARUI GROUP’s co-creative businesses are geared toward transcending dichotomies that cause division,
such as those separating senior citizens, LGBT individuals, and non-Japanese individuals from others; those
dividing races; the dichotomy between current and future generations; and that between short-term profitsand environmental destruction. Our goal in these businesses is to include previously excluded people throughproducts and services as well as through co-creation to contribute to the interests of all parties. By exercising
its core value—the co-creation of creditability—MARUI GROUP will provide options emphasizing balance
between individuality and connections through its co-creative businesses.

MARUI GROUP’s

MARUI GROUP promises to step up co-creation andopen innovation activities to provide services emphasizing
connections between people by 2050.

Spaces and services that foster connections between
all stakeholders as a platform for society

People valuing individuality
People valuing connections

24

Co-Creative Businesses

Options Emphasizing Balance between Individuality and Connections

Co-creative businesses provide options for members ofmature societies that emphasize individuality while also
valuing connections. In these businesses, a capacity for
empathy—the ability of employees to adopt the viewpoints of various stakeholders to understand theirthinking and their pain—is of utmost importance. MARUIGROUP seeks to expand the intersection between the interests (happiness) of six groups of stakeholders, including future generations, and co-creation activities withstakeholders are a vital part of this process. Among thelong-term targets defined below are those pertaining toco-creation activities that contribute to improved corporate value. These targets are emblematic of our commitment to expanding options as part of MARUI GROUP’s
daily co-creation activities, embodiments of the credit
philosophy that “creditability should be built together
with customers,” as options for stakeholders.

Co-creation with customers

e.g., s tore development, product development,
customer services

Open innovatione.g., business partners, start-up companies

Co-creation with communities
and societye.g., community and regional development

Co-creation with investorse.g., management emphasizing capital costs

Co-creative businesses

Long-Term Targets
Medium-Term Targets(5 years in the future)

Ultralong-Term Targets(30 years in the future)

Long-Term Targets(10 years in the future)• Co-creation with aggregate total of
100,000 or more customers*• Co-creation with aggregate total of
500,000 or more customers*•C o-creation with aggregate total of
1,000,000 or more customers*• Open innovation with 100 or morecompanies• Open innovation with 500 or morecompanies• Open innovation with 1,000 or morecompanies• Engagement with 50 or morecommunities• Engagement with 100 or morecommunities•E ngagement with 200 or morecommunities• 50 or more cases of engagement
leading to increased corporate value• 100 or more cases of engagement
leading to increased corporate value• 300 or more cases of engagement
leading to increased corporate value* The number of customers that take part in MARUI GROUP’s business process through planning meetings or other venues

VISION BOOK 2050

25

Provision of options emphasizing balance between individuality and connections

Origin of Inclusion—Co-Creation with Customers
The origin of co-creation can be found in the act of valuing both individuality
and connections with others, a sentiment that has been part of MARUI GROUP’s
operations since its founding. Regardless, there was a chapter of our history
during which we were too bound by past successes and too focused on theperspectives and thinking of industry and of the Company itself. To overcome
this management crisis, we chose to return to the point of origin of co-creation.
Forming the new philosophy of “continue evolving to better aid our customers,” we completely revamped our prior, Company-centric store development,
product creation, and credit card operation practices. This undertaking gave
rise to planning meetings with customers, which are forums for incorporating
customers into all business processes and practicing co-creation with them.
Rakuchin Kirei series shoes and EPOS cards were both products of thisco-creation.
A prominent example of co-creation with customers can be seen at Hakata
Marui, which was opened in 2016. Prior to opening this store, we held morethan 600 planning meetings with customers, involving an aggregate total ofover 15,000 people in the process. Input from customers led to a store development process that overturned prior conventions through innovations suchas the introduction of food vendors on entry levels. The view of co-creation
born out of collaboration with customers is the origin of MARUI GROUP’s­co-creative businesses.

Co-creation evolved to incorporate tenants at
Marui Family Mizonokuchi. At this store, tenants
are provided with explanations on MARUI GROUP’s
approach to co-creation and the goals of Marui
Family Mizonokuchi when it is first decided thatthey will join the store. Moreover, tenants areinvited to planning meetings with customers totake part in discussions so that they can reflect
the needs of customers in their merchandising,
services, and sales floor development.

Evolution of Co-Creation Store Development Approach
MARUI GROUP reframed the expertise and capacity for empathy it cultivatedat the sites of co-creation pertaining to store development, product creation,and customer service from the perspectives of its wide-ranging stakeholders,
including senior citizens, LGBT individuals, and non-Japanese. This reframing
expanded our focus from the happiness of customers to the happiness ofall stakeholders. We then incorporated social issues into our conventional­co-creation activities from the perspective of inclusion, making it possible
to broaden the reach of our main business. Increases in co-creation with­customers effectively enable us to include previously excluded individuals,
thereby expanding the interests (happiness) of stakeholders.
Meanwhile, the transition to shopping centers and fixed-term rental contracts transformed MARUI GROUP’s stores into real estate-model businesses
that rent space, which is expected to make co-creation with tenants even moresignificant than co-creation with customers.

Rakuchin Kirei series shoes are developed toprovide a perfect fit based on input from customers that have felt discomfort with shoes or are
unable to find the perfect size. With a focus on thebalance between comfort, design, and affordability,
we offer sizes ranging from 19.5 cm to 27.0 cm,
covering 100% of foot sizes, all developed basedon customer input.

Discussions were held with customers for the
purpose of promoting usage among EPOS Gold
cardholders, during which many wondered why we
did not offer a family card. This was the inspiration
for the EPOS Family Gold card, a card forgedthrough repeated hypothesizing and verification
via co-creation with customers to offer a uniqueservice that values both individual independence
and family bonds.

26

VISION BOOK 2050

Co-Creative Businesses

Co-Creation with Start-up Companies through Open Innovation
Valuing both individuality and connections with others requires expertise
related to IT, AI, and other cutting-edge technologies, areas in which start-up
companies excel. MARUI GROUP seconds its employees to such start-up
companies to nurture perspectives that may lead to the creation of new,­forward-looking businesses and to have them experience various opportunities to make decisions at their own discretion. Employees that have had thisexperience will help us combine different expertise to develop unprecedented
co-creative businesses.

Co-Creation with Communities and Society
Co-creation with communities and society is made possible by infusing
co‑creation with customers with the perspective of inclusion. We have therefore been participating in RAINBOW PRIDE LGBT pride events, promoting
regional development through collaborative events between popular anime
works and local shopping districts, and engaging in other such activities.
­Furthermore, the AI and IT technologies developed through EPOS card operations have been used to produce the EPOS Pay QR code payment service.
With this service, we are enhancing co-creative businesses that link customer
convenience to community prosperity by expanding the range of stores atwhich this cashless payment service can be used.

As part of its collaboration with BASE, Inc.,
operator of the BASE smartphone shopping application, MARUI GROUP helped open SHIBUYA BASE,
this company’s first full-time physical venue, in
Shibuya Marui. Leveraging MARUI GROUP’s
physical spaces for connecting with customers
and its sales floor operation and sales know-how,
SHIBUYA BASE provides a venue for customers
to discover new brands and products offering
fresh value.

Co-Creation with Long-Term Investors
Expanding the happiness of stakeholders requires the endorsement of longterm investors. ESG investment and other approaches toward investing in­sustainability are investments in sustainability and thereby provide the option
to move away from focusing on short-term profit to pursue sustainable growthover the medium-to-long term. Given the emphasis currently being placedon ESG investment, MARUI GROUP aims to facilitate the long-term expansionof stakeholder interests (happiness) through constructive dialogue with longterm investors that understand such principles.

The EPOS Pay QR code payment service was introduced following the conclusion of affiliate agreements with shopping districts and restaurants
surrounding Nakano Marui, expanding the range ofstores at which small-sum payments can be made,many of which did not p­ reviously accept EPOS cards.
By creating regional economic spheres centered on
customers, we aim to develop communities that linkregions and customers.

Message from a Co-Creative Business Representative

New Value Created by Generating Happiness through Co-Creative Businesses

Hajime Sasaki
Senior Executive Officer
President andRepresentative Director,
MARUI CO., LTD.

Everyone knows the importance of valuing both their individuality while coexisting with and valuing the happinessof others. In practice, however, we are often forced to compromise one of these values or to choose between
them. At MARUI GROUP, we first faced this issue in our business a decade ago when we began developing shoes
through co-creation with customers. These efforts led us to develop a wide range of shoe sizes to accommodate
all customers, an undertaking that had previously been avoided due to its adverse impact on corporate earnings.
After that, we expanded our co-creation activities to include product creation, store development, and other areasof operations, engaging with countless individuals on various issues through these activities. This process mademe realize that co-creative businesses accommodating all customers brought happiness to large numbers ofpeople by addressing previously neglected social issues while simultaneously creating unprecedented value.
Looking ahead, I hope to expand the scope of our co-creation activities with customers, business partners,­communities, society, and other stakeholders to create even greater value for the future.

VISION BOOK 2050

27

Provision of options for alleviating income disparity

Financial Inclusion
MARUI GROUP’s policy of financial inclusion was arrived at by evolving the Company’s co-creation management into co-creation sustainability management. Up until today, MARUI GROUP has continued to provide
credit to younger generations and everyone else in order to overcome the social issue represented by the­exclusivity of financial services to a limited range of wealthy individuals. EPOS cards will be evolved from ahighly convenient business into a vessel for promoting financial inclusion going forward in order to establish
a sustainability platform through which we can transcend the dichotomy represented by globally widening
income disparity.

MARUI GROUP’s

MARUI GROUP promises to provide financial services
to 10 million or more people worldwide by 2050.

Financial services through credit cards
Peace of mind for the future through asset building
Financial services for low- and middle-income individuals worldwide

Younger generations andall other customers
Non-Japanese customers
residing in Japan
Overseas customers to be
attracted in the future

28

VISION BOOK 2050

Financial Inclusion

Options for Alleviating Income Disparity

Through financial inclusion, MARUI GROUP seeks toresolve income disparity starting with existing EPOS
cardholders. The majority of EPOS cardholders are in
their 20s or 30s, meaning that many of them will findthemselves in need of large amounts of money as theirlife stage changes. To communicate to these customers
the importance of lifelong asset building, MARUI GROUP
established a securities company, which became the firstcompany in Japan to allow for investment trusts applicable under Tsumitate NISA to be purchased with credit

cards. We continue to expand the scope of our financial
services for alleviating income disparity. Furthermore, weare expanding the range of options we offer to include
non-Japanese residents of Japan with the goal of supplying new financial services that help them address the difficulties faced when going to school or working in Japan.
Over the long term, we hope to provide these services
both in Japan and overseas, and this aim is reflected in
the following long-term targets.

Younger generations
Non-Japaneseindividuals in Japan

Customers
Non-Japaneseindividuals

Non-Japaneseindividuals overseas

Financial inclusion
Credit cards

Financial services

Asset building

Other financial services

Long-Term Targets
Medium-Term Targets(5 years in the future)

Long-Term Targets(10 years in the future)• EPOS cardholders of 10 million or more• Services provided to 1 million­individuals through tsumiki Securities• Financial services provided to 5 million
or more members of younger
generations• Financial services provided to500,000 or more non-Japaneseindividuals• Financial inclusion promoted through­investment in 10 or more countries
worldwide• Financial inclusion promoted throughinvestment in 20 or more countries
worldwide

VISION BOOK 2050

Ultralong-Term Targets(30 years in the future)•F inancial services provided to 10 million
or more individuals worldwide

29

Provision of options for alleviating income disparity

Transcending of the Income Dichotomy through Credit Cards
A part of MARUI GROUP’s mission is to promote financial inclusion by providing
financial services to all people, regardless of their age and income. Our decision
to enter into the securities business was based on this mission. The majorityof EPOS cardholders are in their 20s or 30s, and 70% of these cardholders
are women. Input received from customers made us aware of their concerns
for the future regarding money. Seeking to turn these concerns into hope anddevelop a service that will enable customers to increase their money withpeace of mind, we arrived at the scheme of allowing customers to purchaseinvestment trusts with credit cards, a world first. While lowering the hurdle forinvestment, this scheme makes it possible for customers to have payments for
Tsumitate NISA applicable investment trusts be withdrawn from their accountin a similar fashion to their monthly shopping or smartphone bills.

Potential and Challenges of tsumiki Securities
First offering service in August 2018, tsumiki Securities is a securities company
specializing in cumulative investments, a form of investment that can be carriedout with peace of mind even by first-time investors. This company offers customers four carefully selected trusts operated by three fund managers that sharethe same vision as MARUI GROUP and are committed to communicating theimportance of asset building. Since it started offering this service, tsumiki­Securities has received applications from approximately 13,000 individuals(as of January 2019), and the ratio of these applicants that were younger or­first-time investors was much higher than that of existing financial institutions.
This achievement is thought to be due in part to our customer base of 6.6
million EPOS cardholders, the ease of application via the Internet, and theconvenience of credit cards. Another important factor was the staff that offer
support to help alleviate apprehensions regarding asset building, making it
feel more familiar to customers.
Looking ahead, tsumiki Securities will seek to promote the shift from savings
to investment, which has yet to take off in Japan, in order to instill cumulative
investment as a part of our culture. At the same time, cultivating employees
capable of responding to customers’ diverse asset building needs will be a task
to be addressed over the foreseeable future.

4897

4897

GOOD
THRU
有効期限

有効期限
THRU
GOOD

MONTH / YEARMONTH / YEAREPOS cards are IC chip-equipped, multipurpose Visa
cards with a cardholder base of approximately 6.6
million individuals (as of March 2018). A major characteristic of this cardholder base is the large portion
represented by younger generations and women, demographics with high credit needs. This characteristic is a result of MARUI GROUP’s unique expertise inassigning credit based on usage and payment histories, rather than age, profession, or income.

Cumulative investment specialist
tsumiki Securities Co., Ltd.

Fund manager

Trust nameCommons AssetManagement, Inc.

Commons 30 Fund

Saison AssetManagement Co., Ltd.

SAISON Vanguard
Global Balanced Fund
Saison Shisan Keisei no
Tatsujin Fund

Rheos Capital
Works Inc.

Hifumi Plus Fund

Customer Statistics (As of December 2018)
50 andabove: 13%

20–29: 33%

20–49
87%

Distribution
by Age40–49: 20%

30–39: 34%(Reference) Ratio of Applicants Aged 20–49
Approx. 30% based on survey by The Investment
Trusts Association, Japan
Approx. 60% at independent fund managementcompanies

30

No experience:
68%

Experienced: 25%

Investment
Experience

Novices*: 7%(Reference) R atio of Applicants with No Investment
Experience
Approx. 40% at independent fund managementcompanies* “Novices” refers to customers with less than one
year of investment experience.

VISION BOOK 2050

We opened a tsumiki Securities pop-up store on thefirst floor of Yurakucho Marui for one month beginning on October 14, 2018. During this period,
customers were given the opportunity to experiencetsumiki Securities’ services, set up an account, or
receive support to address questions, concerns, orissues related to cumulative investment. As anotherfacet of our tailored support for customers offeredthrough Marui stores, a fun talk event was held on
October 26, 2018, in which participants discussed
the benefits of cumulative investments.

Financial Inclusion

Subscription-Based Business Dating Back to Founding
MARUI GROUP launched its business in 1931 by selling furniture to younger
individuals through monthly installment payments. At the time, people who
were new to the workforce could not borrow money. As such products became
more readily available, monthly installment payments arose as a mechanism for
putting those products in the hands of individuals that wanted them but could
not necessarily afford them through a one-time cash payment. Under thissystem, the Company would lend money to customers, which they would pay
back through monthly installments. This differed from one-time cash paymentsin that long-term relationships would be formed as customers repaid theirdebts in 10, 12, or even 24 installments. On reflection, it is clear that thisbusiness was an example of the financial inclusion that MARUI GROUP
promotes today. It could also be said to have been a subscription-type business
in which customers continued to make regular payments after purchase.

The ROOM iD advance-payment rent guarantee
service combines advance payments for rent witha guarantee service to eliminate the need for aguarantor when renting housing, a valuable service
as it becomes more difficult to find a guarantor
due to the aging population and falling birthrate.
By merging MARUI GROUP’s creditability, whichenables it to provide advance-payment services,with EPOS cards, we have achieved impressive
revenues from this service.

Potential of Financial Inclusion
With an increased focus on financial inclusion, MARUI GROUP will turn its­attention to services that are both functional and have a strong subscription
element, such as rent guarantee and asset building services for younger generations. We aim to create the ultimate subscription business by having customers pay for these services with their EPOS cards, thereby creating stable
increases in lifetime value through recurring transactions. Furthermore, we
intend to expand EPOS cards, a vessel for promoting financial inclusion,
overseas in the future in order to evolve these cards into a sustainability
platform and thereby provide options for transcending the dichotomy­represented by globally widening income disparity.

Non-Japanese individuals can face challenges insetting up their lives in Japan, whether when renting
housing, acquiring a mobile phone, or applying
for a credit card. To help address the living needsof non-Japanese individuals, we issued the GTNEPOS CARD through the combination of thedatabase of non-Japanese individuals of Global
Trust Networks Co., Ltd., and MARUI GROUP’s
credit card platform.

Message from a Financial Inclusion Business Representative

Global Promotion of Financial Inclusion

Yoshinori Saito
Senior Executive Officer
President andRepresentative Director,
Epos Card Co., Ltd.

MARUI GROUP is promoting financial inclusion, the act of providing financial services to all people, regardlessof their age or income. On this front, we have proceeded to develop businesses that are unparalleled in terms ofgrowth, efficiency, and health. These businesses have been built through our credit card-based payment services
provided largely to younger generations, our unique business model that defies the conventions of the financial
and credit industries based on the credit philosophy that “creditability should be built together with customers,”
which has guided us since our founding, and our initiatives for transcending dichotomies as part of our long-term
vision. We entered into the securities business in 2018. This move was representative of our commitment to­expanding the range of financial services we offer, which currently include payment and asset building services,
based on the concept of inclusion. Furthermore, we look to broaden our EPOS cardholder base by attracting
younger generations as well as the growing non-Japanese population in Japan. We will also endeavor to improvefinancial literacy through distinctly MARUI GROUP initiatives in Japan, where financial education is lagging behind
other countries, while promoting financial inclusion through investment on a global scale.

VISION BOOK 2050

31

VISION ROADMAP

Vision for the Future Beyond 2050
The declarations contained in VISION BOOK 2050 are not just announcements; they are symbolic of
the start of a journey, a journey to shape the future together with all stakeholders by formulating actionplans for accomplishing our vision, examining long-term targets, and engaging in ongoing dialogue.
Our journey will not end with the accomplishment of MARUI GROUP’s 2050 Vision.
No, MARUI GROUP will continue to look toward the future from an ultralong-term perspective,
and we are marching forward as we identify the tasks we can undertake today.

2021

Targets of Medium-Term Management Plan
Leading up to the Fiscal Year Ending March 31, 2021
Earnings per share(EPS)

Return on equity(ROE)

Return on invested capital(ROIC)

More thanMore thanMore than

130

¥

10%

4%

1931

MARUI GROUP’s Core Value:
Co-Creation of Creditability
The co-creation of creditability is a concept based on the belief of MARUI GROUP’s
founder that creditability should be built together with customers, rather thanassigned to them, and is one of our founding principles. Since its founding,
MARUI GROUP has continued to practice the co-creation of creditability byconnecting with customers through dialogue and building mutual trust.

32

VISION BOOK 2050

2021

MISSION
Contribute to Co-Creating a Flourishing andInclusive Society That Offers Happiness to All

2050

2050 VISION

Harnessing the Power of Business to Build a World
That Transcends Dichotomies
MARUI GROUP’s 2050 Vision is our first step toward accomplishing our vision for the future. The
2050 Vision serves as a code of conduct, delineating the tasks that can be undertaken today as wemarch toward this future.

2019

Changes in an Afflicted World
Our world is faced with various issues, including economic inequality, poverty,
hunger, and environmental destruction, which are causing divides in the form of
dichotomies, and these divides can no longer be ignored. The businesses of the
future will therefore need to frame these global issues as opportunities andwork to resolve them.

2019
VISION BOOK 2050

33

MARUI GROUP’s
Co-Creation Philosophy

Our Aspirations
MISSION

Contribute to co-creating a flourishing andinclusive society that offers happiness to all
MARUI GROUP’s mission is its reason for existence. The corporate and business activities of MARUI GROUP
are the practice of fulfilling this mission. This mission is meant to provide all members of MARUI GROUP
with a guide, inspiring them to reflect on whether their actions and decisions are contributing to the fulfillment of the mission, even in times of uncertainty.

2050 VISION

Harnessing the power of business to build a worldthat transcends dichotomies
MARUI GROUP’s 2050 Vision is a roadmap for the accomplishment of the Company’s mission. It puts forth
directives for the concerted efforts to be advanced by all Group members as they ascertain changes in theoperating environment. We believe that a vision and long-term targets are essential for a company to remaintrue to its mission and values as, no matter how righteous a mission or values may be, they will still need aguide to clarify priorities for advancing business strategies.

34

VISION BOOK 2050

In conjunction with the establishment of a long-term vision for 2050,
we at MARUI GROUP reshaped our co-creation philosophy based on our aspirations
and our principles, clarifying the intent of these ideals so that they may guide us
in our daily business activities.
Revised in February 2019

Our Principles
PHILOSOPHY

Continue evolving to better aid our customers
Equate the development of our people
with the development of our company
MARUI GROUP’s philosophy is an essential compass for fulfilling its mission. The desire to “continue
evolving to better aid our customers” compels everyone at MARUI GROUP to work for the benefit of stakeholders by exercising their capacity for empathy to adopt the viewpoints of various stakeholders in order tounderstand their thinking and their pain. The ongoing evolution of this capacity for empathy gives rise to thepropensity for innovation that drives the resolution of the issues faced by customers, society, and the environment. The commitment to “equate the development of our people with the development of ourcompany” is founded on the belief that MARUI GROUP’s growth is achieved when our people realize selfactualization through empathy and innovation.

VALUES

Creditability should be built together with customers
Pioneer spirit of creating opportunities
MARUI GROUP’s values are the unique principles of the Company that differentiate it from all others, theprecious founding spirit that will perpetually permeate our organization. The concept of co-creation of­creditability—based on the belief of MARUI GROUP’s founder that “creditability should be built together
with customers,” rather than assigned to them—is the belief that credit should be forged through trust overlong-term relationships by working together with and being empathetic toward customers. The founder also
advocated a “pioneer spirit of creating opportunities.” This value represents MARUI GROUP’s spirit of innovation and evolution, which propels us forward as we transform our business and create new demand andmarkets in response to changes in customer happiness or in society.

VISION BOOK 2050

35

Sustainability Governance

MARUI GROUP’s Definition of Corporate Value
When formulating its long-term vision for 2050, MARUI GROUP included future generations alongside the prior five ringsof stakeholders it emphasized. The introduction of this sixth ring of stakeholders is a declaration of MARUI GROUP’s
commitment to the interests of both current and future generations.
The interests of current generations are often thought to be at odds with the interests of future generations. To transcend this dichotomy, MARUI GROUP has embraced the concept of lifetime value, which entails steady, ongoing increases in value without overemphasizing the interests of current or future generations. MARUI GROUP’s co-creation
sustainability management aims to achieve harmony between, and expand the interests (happiness) of, the six rings ofstakeholders to create new value.

Six Rings of Stakeholder Governance Including Future Generations

Customers

Business
partners

Investors

Expansion of
stakeholderinterests(Happiness)

Communities
and Society

Employees

Futuregenerations

36

VISION BOOK 2050

Sustainability Governance

Expansion of Stakeholder Interests (Happiness) through Lifetime Value
Steady Growth in EPS through Business Strategies

Sustainability Premium

MARUI GROUP began reforming its earnings structure in
2014. This reform saw us move away from a structure dependent on period earnings to adopt an earnings structure
promising steady growth in earnings per share (EPS).
This was achieved by transitioning to a business model
centered on recurring earnings. Later, in 2016, we embarked
on full-fledged ESG initiatives. As a result, MARUI GROUP’s
stock price was over 2.2 times higher on March 31, 2018,
than on March 31, 2013, which was higher than the rateof increase for the Tokyo Stock Price Index average andexceeded the growth rate for EPS over the same five-year
period by approximately 30 percentage points. The premium
apparent in the difference between the Company’s stock
price and EPS is thought to be a reflection of equity
markets’ high evaluation of our “pre-financial” information, or, in other words, our ESG initiatives.

MARUI GROUP has adopted lifetime value (LTV) as an­indicator of the earnings from its sharing businesses,
its commercial facility management businesses, and its
cumulative investment and other asset building businesses.
The concept this indicator represents was expanded for
application as an indicator of corporate value for MARUIGROUP’s three businesses for transcending dichotomies.
MARUI GROUP has proceeded to evolve its co-creation
management into co-creation sustainability management
to eliminate the negative aspects of operations throughESG management while also growing LTV by creating new
businesses in the three aforementioned areas in order toexpand the interests (happiness) of all people. Throughthese efforts, we will endeavor to generate a greater­sustainability premium on top of EPS.

Expansion of Interests (Happiness) of Six Rings of Stakeholders

Sustainability
premium

MARUI GROUP’s stock priceMARUI GROUP’s EPS
March 31, 2013, indexed to 100■■

Stock price 222
Approximately 30ppt
ESG premium

EPS 193

Expansion of interests(happiness)of six ringsof stakeholders

LTV = Expansion of interests (happiness)of all people based on
three long-term targets
Elimination of negative
aspects of operations
through ESG management100
2013.32016.32018.3Business Structure Transformation

Co-Creation Management

Co-Creation Sustainability Management

Steady EPS growth

Elimination of negative aspects of operations
through ESG management = EPS + ESG premiumInterests (Happiness) = EPS + Sustainability premium

VISION BOOK 2050

37

Sustainability GovernanceIntroduction of Sustainability Targets for Medium-to-Long-Term Performance-Linked Compensation
Director compensation is to be set at a level that will
provide motivation for directors to perform their duties ofmaking management decisions and providing supervisory functions and is to be decided by the Nominating
and Compensation Committee. Compensation for directors includes fixed basic compensation, performancelinked bonuses based on the performance of theCompany in a given fiscal year, and performance-linked
stock-based compensation based on the medium-tolong-term performance of the Company. The portion ofcompensation linked to performance is meant to provide
incentive for pursuing sustainable growth.
Performance-linked bonuses will be set as an
amount equivalent to 10/90 of the compensation of directors for each fiscal year and will be adjusted upward
or downward by as much as 10% based on the degree ofaccomplishment of the Company’s consolidated operating income target for the respective fiscal year. As for
performance-linked stock-based compensation,
directors will be awarded points based on their rank ineach of the fiscal years ending March 31, 2017–2019.
These points will then be adjusted via a coefficient within
the range of 0% to 100% determined based on progress
toward targets for three focus KPIs (return on equity,
return on invested capital, and EPS) in the fiscal year
ending March 31, 2019. Shares of the Company’s stock
will then be allocated based on the aggregate total ofpoints post-adjustment.
In light of the upcoming conclusion of the first period towhich medium-to-long-term incentives are linked in thefiscal year ending March 31, 2019, opportunities werearranged for the Board of Directors to discuss officer compensation. Once again finding that the portion of total
officer compensation accounted for by performance-linked
compensation was low, the Board of Directors examined
instances of companies utilizing ESG-related factors inevaluations for performance-linked compensation.
Furthermore, the evaluation of the effectiveness of
the Board of Directors conducted in May 2018 identified
issues regarding the low portion of total officer compensation accounted for by variable medium-to-long-term
incentives. The Company plans to develop officer
compensation systems that are linked to co-creation
sustainability management. To this end, we will expand
variable short-term incentives as part of the planned
revision in the fiscal year ending March 31, 2020, andexamine the possibility of introducing sustainability targets
linked to variable medium-to-long-term incentives.

Officer Compensation in the Fiscal Year Ended March 31, 2018 (Millions of yen)
Basic
Compensation

Performance-Linked
Bonuses(Short-Term Incentives)

Performance-Linked
Stock-Based Compensation(Medium-toLong-Term Incentives)

Total
Compensation

Directors (excluding external directors)

148

16

16

181

  President and representative director

84

9

9

102

External directors

38

0

0

38

Audit & Supervisory Board members(excluding external Audit & Supervisory
Board members)

34

0

0

34

External Audit & Supervisory
Board members

15

0

0

15

By resolution at the Ordinary General Meeting of Shareholders, the upper limit for full-year compensation paid to directors has been set at ¥300 million, the upper limit for
performance-linked bonuses paid to directors has been set at ¥100 million, the upper limit for performance-linked stock-based compensation issued to directors has been
set at ¥300 million, and the upper limit for monthly compensation for Audit & Supervisory Board members has been set at ¥6 million.

38

VISION BOOK 2050

Sustainability Governance

Establishment of New Sustainability Advisory Board
The Advisory Board was established in July 2016 toenable MARUI GROUP to receive multifaceted advice andproposals from external experts with insight into businessstrategies and various business areas. We anticipate thatsuch advice will be a powerful asset in the establishmentof strategies for Groupwide efforts to accomplish thetargets of the medium-term management plan and to
improve corporate value over the medium-to-long term as
we seek to address the rapidly changing operating environment and an ever-diversifying society. The current
members are contracted to serve on the Advisory Boardfor one year spanning from July 1, 2018, to June 30,
2019. Regular bimonthly meetings of the Advisory Board
are held, at which the president, pertinent directors, andrepresentatives from relevant areas attend; advice is alsosought on specific themes and operations are inspected.
Furthermore, the new Sustainability Advisory Board
was established in January 2019, assembling three ESG
specialists to build upon the role of the Advisory Boardand support MARUI GROUP in conducting co-creation
sustainability management while responding to operating
environment changes over the long term.

Kazuhiko Toyama

Governance Specialist

Managing Partner, Industrial Growth Platform, Inc.


Appointed in
January 2019

Reason for appointment: At Industrial Revitalization Corporation of Japan, Mr. Toyama was involved in rehabilitating numerous companies.
Today, he is engaged in consulting and corporate rehabilitation at Industrial Growth Platform. Mr. Toyama has an extensive background in
corporate governance, having held positions as an external director and a member of the Council of Experts Concerning the Follow-up ofJapan’s Stewardship Code and Japan’s Corporate Governance Code. MARUI GROUP anticipates that he will offer valuable suggestions andadvice for the enhancement of corporate governance.

Peter David Pedersen
Co-founder, Next Leaders’ Initiative for Sustainability; Advisor, PricewaterhouseCoopers Sustainability LLC
Appointed in
January 2019

Environmental Specialist

Reason for appointment: As a corporate consultant, Mr. 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 fields of the environment andsustainability.

Masayoshi Suzuki

Social Specialist

Executive Vice President, BORDERLESS JAPAN CORPORATION

Appointed in
January 2019

Reason for appointment: Mr. 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 flourishingand inclusive society.

Advisory Board Members

Appointed inJuly 2016

Appointed inJuly 2016

Tadasu Ohe

Yuji Yamamoto

President, PLANTEC ASSOCIATES INC.


Physician, Representative Director, MinaCare Co., Ltd.
Mr. Ohe assists the Company in better utilizing realestate from the user’s perspective by inspecting storesand distribution centers, proposing store renovationplans and distribution center environmental measures,and conducting lectures at Group companies.

Dr. Yamamoto provides correlation analysis and advice
with regard to tracking the relationship between healthand productivity, offers guidance on how to be included
in healthcare management-related indexes, and shares
external case studies.

Appointed inJuly 2016

Masakazu Masujima

Meyumi Yamada

Partner, Mori Hamada & MatsumotoExecutive Director, istyle Inc.


As for the development of new FinTech businesses,
Mr. Masujima offers proposals of specific growth­investment targets, advice and proposals regarding
entry into the securities business, and advice on­FinTech-related laws and regulations.

Ms. Yamada offers information and takes part in discussions on sharing economies, omni-channel retailing, and other social trends to facilitate the Company’s
sharing and omni-channel retailing strategies.

Appointed inJuly 2017

VISION BOOK 2050

39

Sustainability Governance

Promotion of Digital Transformation
Responding to the recent spread of Internet of Things
technologies and the volatile operating environment of
the Internet age while accelerating business structurereforms through digitization and technological innovation
are tasks to be addressed on a Groupwide basis. Recognizing this fact, MARUI GROUP appointed a chief digital
officer in October 2017. In addition, the Digitization
Committee, comprising senior management representatives, was established while the R&D Center was set up
in the Digital Transformation Promotion Department.
Furthermore, a “reverse mentor” system was instituted at M & C SYSTEMS CO., LTD., in which younger

employees mentor managers responsible for digitization
initiatives. Monthly discussions with mentors are held toshare insight regarding everything from familiar systems
to the latest technologies to improve IT literacy.
In regard to the digitization of EPOS cards, MARUIGROUP is digitizing its existing payment and financial
functions. We thereby aim to launch a smartphone application that features enhanced functionality for utilizing
customer data with AI and for providing customers
with recommendations by the fiscal year ending March
31, 2021.

Groupwide Organizational Structure for Promoting Digitization
Digitization Committee

Secretariats

Chairperson: President andrepresentative director
Full-time members:
CFO, chief security officer,
chief health officer, chief information officer,
and chief digital officer

Corporate Planning Division
Representatives of Retailing segment
and FinTech segment

Customer Success Department
R&D Centerof the Digital Transformation
Promotion Department

Digitization project teams

Chief digital officer

Presidents and officers fromGroup companies

Project team from MARUI GROUP

Project teams from Group companies

Digitization Committee
Chaired by the president and representative director, the Digitization Committee
shares information on the work issues and resolutions identified by the digitization project teams of Group companies to promote cross-Group digitaltransformation.

Digitization Project Teams


Digitization project teams are in place at all Group companies and comprise thepresidents and officers of the respective companies as well as the employees
selected through open application. These teams are tasked with identifying
issues at their companies and in their work processes, enacting resolutions, andcultivating a digitization culture. Project teams are operated under the direct jurisdiction of the presidents of their companies to implement rapid PDCA (plando-check-act) cycles and thereby realize speedy results.

40

System Investment Committee


The System Investment Committee is chaired by the president and representative director and comprises members including the CFO, the chief security officer(CSO), the chief health officer (CHO), the chief information officer (CIO), the chief
digital officer (CDO), and the representatives of the Retailing and FinTech
segments. This committee makes strategic investment decisions from a Groupwide, long-term perspective with regard to system investments that are important to corporate value improvements or management strategies.

R&D Center of the Digital Transformation Promotion
Department

The R&D Center is staffed by employees of M & C SYSTEMS, MARUI GROUP’s
system and information service company. The center was established with thegoal of collecting information on and examining the potential for the introductions of new IT technologies and services pertaining to the entire Group.

VISION BOOK 2050

Sustainability GovernanceReinforcement of Groupwide Information Security
MARUI GROUP views strengthening Groupwide information security to protect customers’ information and otherinformation assets from unauthorized access, cyberattacks,
and other threats as being among the most importanttasks for management.
Risk management pertaining to MARUI GROUP’s IT
systems is overseen by the Compliance Promotion Board,which is chaired by the president and representative
director of MARUI GROUP, as one facet of Groupwide
governance. In addition, the Company established the­Information Security Committee in June 2018 and appointed the CSO to serve as the highest-level authority
on security responsible for managing and protecting
Groupwide information assets. The CSO coordinateswith the CIO, who is the highest authority responsible
for managing Groupwide IT systems.
In the event of a major information security incident,
the head of the division that detects the incident willreport to the chairperson of the Information Security
Committee and the CSO. The chairperson will thenreport to the CIO, and the CSO will issue a report to thepresident and representative director of the Company
when necessary. The CSO will also be responsible for­assembling a specialized team to address the incident.

MARUI GROUP’s Information Security Framework
Board of Directors

Compliance Promotion
Board

Chief security officer

Coordination

Information Security
Committee

Chief information officer

Operating sites and divisions

Furthermore, MARUI GROUP systematically recruits
and develops the human resources necessary for implementing Groupwide information security measures andprovides education on information security to officers
and employees to promote awareness. In addition, thirdparty information security assessments are performedby specialized institutions to help us maintain an understanding of information security systems and levels
throughout the Group. We will continue to pursue improvements through regular assessments going forward.

MARUI GROUP Information Security Policy (Abridged)

1. Purpose
The purpose of this policy is to provide guidelines for establishing and implementing information security management
systems to protect the information assets of customers and of MARUI GROUP from all threats, whether internal or external,
accidental or intentional, and thereby help ensure the continuity of MARUI GROUP’s business activities.
2. Basic Principles(1) MARUI GROUP shall practice appropriate management of the information entrusted to it by individuals or organizations during the course of its business activities while respecting the rights and interests of these individuals ororganizations.
(2) MARUI GROUP shall practice appropriate management of trade secrets, technological information, and other valuable
information acquired during the course of its business activities and protect the rights and interests of MARUI GROUP.
(3) MARUI GROUP will engage in research and human resource development in order to work to improve information
security as it pertains to customer information and thereby gain greater levels of trust from customers and subsequently society as a whole.

VISION BOOK 2050

41

Sustainability Governance

MARUI GROUP’s Four Core Themes for Inclusion
In November 2016, MARUI GROUP identified four core
themes for inclusion to guide its efforts to help create aflourishing and inclusive society offering happiness to all.
The concept of inclusion entails integrating and including
individuals that had previously been excluded and iscongruent with the principles embodied by the United
Nations Sustainable Development Goals. MARUI GROUP
is proactively pursuing its targets with regard to thesefour core themes through co-creation with all stakeholders.

Core Theme 1

Core Theme 2

Customer Diversity and Inclusion

Workplace Inclusion

We will seek to develop products, services, and stores that bringjoy to all customers, regardless of their age, gender, or physicalcharacteristics.

Based on MARUI GROUP’s corporate philosophy of striving to“continue evolving to better aid our customers” and “equate
the development of our people with the development of ourcompany,” we will provide all employees with venues throughwhich they can excel.

Core Theme 3

Core Theme 4Ecological Inclusion

Co-Creation Corporate Governance

We will develop eco-friendly businesses that are considerate ofnatural capital and propose ecologically sound lifestyles that are
in harmony with nature and the environment.

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

Note: The scope of data collection for the following items includes MARUI GROUP and all consolidated subsidiaries.
Major Data: Core Theme 1
Retailing segment transactions (millions of yen)
Number of visiting customers (thousands)
Number of purchases (thousands)
Customer satisfaction (understanding for co-creation sustainability reports) (%)
Number of MARUI GROUP e-commerce site visits (thousands)
Number of employees with Service Care-Fitter qualifications*1
Aggregate number of employees (tenants) that have undergone LGBT manner training
Number of employees (tenants) that have taken the rank 3
Universal Manner Placement Examination
FinTech segment transactions (millions of yen)
EPOS cardholders (of whom new) (thousands)
Ratio of EPOS cardholders aged 18–39 (%)
Income per card of EPOS cards (yen)*2
Ratio of active EPOS card users (%)
Ratio of delinquent debt for EPOS cards (%)

42

VISION BOOK 2050

FY2014—
186,030
80,150—92,190430—

FY2015—
186,650
83,480—93,220460—

FY2016
341,478
195,560
91,720—99,690540
75

FY2017326,327
207,100
90,61078
112,480568
500 (28)

FY2018328,486
210,530
93,52079
120,000
571
1,767 (251)

—

—

309

1,249 (4)2,787 (131)—5,420 (710)
58.8
4,400
65.4
1.84

—
5,910 (730)
56.5
5,400
62.9
1.68

1,473,539
6,130 (730)
54.0
5,900
63.7
1.57

1,723,254
6,360 (740)
52.0
6,500
65.3
1.45

1,972,482
6,570 (750)
50.7
7,000
65.9
1.60

Sustainability Governance

Major Data: Core Theme 2
Total number of employees   Number of female employees   Number of male employees
Average age of employees
Average annual overtime hours per person
Ratio of employees changing positions between Group companies (%)*3
Employees working shortened hours for childbirth or childcare reasons (male and female)
Ratio of female employees returning to work full time after taking childcare leave (%)
Ratio of applicable male employees taking childcare leave (%)
Ratio of differently abled employees (%)*5
Employees injured by occupational accidents  Lost-Time Injury Frequency Rate (LTIFR) (contractors) (%)*6  Occupational Illness Frequency Rate (OIFR) (contractors) (%)*6
Female employees in new hires (%)
Employee turnover rate (excluding mandatory retirement) (%)*6
Ratio of employees unionized (%)*6 *7
Human resource investments (millions of yen)*8

FY2014
5,966
2,655
3,311
40.4
40
8
312
36
14
2.06
74
0.58 (0)
0 (0)
—
2.3
—
—

FY2015
5,918
2,641
3,277
40.9
44
18
345
55
54
2.12
87
1.36 (0)
0 (0)
—
2.0
—
—

FY2016
5,899
2,685
3,214
41.2
46
25
416
66
66
2.08
100
0.72 (0)
0 (0)
—
1.6
—
—

FY2017
5,732
2,584
3,148
42.0
44
34
473
81
94
2.16
76
1.40 (0)
0 (0)
—
2.6
93
474

FY2018
5,548
2,466
3,082
42.9
42
43
484
63
109*4
2.50
61
0.83 (0)
0 (0)
60.8
2.3
94
725

FY2014
13,044106,085
550,61224.7
2,525,815
0—
13,620
7,860
58
5,760
1,523
—
1

FY2015
12,58098,637
530,59522.9
2,350,595
78—
13,390
7,840
59
5,550
1,460
—
1

FY2016
14,434
89,179509,07020.7
2,305,099
387—
12,900
7,700
60
5,200
1,460
—
1

FY2017
14,920103,264
489,43919.4
2,341,454
395
3,685
15,039
8,839
59
6,200
1,455
20
9

FY201813,81899,286412,25614.9
2,327,713
386
3,844
14,527
8,351
57
6,175
1,443
57
29

FY2014
8
13
0
55
4
50
12
0
—
0
5.0
3.0
56.29
1,297,250
32.0

FY2015
10
20
10
54
4
50
13
7.7
—
0
5.2
3.3
58.87
1,469,111
32.3

FY2016
6
33
17
55
4
50
16
12.5
—
0
6.0
3.3
70.68
1,703,353
31.1

FY2017
6
33
17
55
4
50
16
18.8
141
0
6.7
3.1
80.24
1,933,685
41.1

FY2018
7
43
14
56
4
50
17
17.6
135
0
7.6
3.2
93.18
2,189,374
40.8

Major Data: Core Theme 3
Greenhouse gas emissions (Scope 1) (t-CO2)*9
Greenhouse gas emissions (Scope 2) (t-CO2)*9
Greenhouse gas emissions (Scope 3) (t-CO2)*9
Greenhouse gas emissions per unit (per unit of operating income)
Energy consumption (GJ)
Total amount of renewable energy purchased or generated (thousands of kWh)
Energy costs (millions of yen)
Total waste (tons)*6
Waste recycled (tons)*6
Ratio of waste recycled (%)*6
Waste sent to landfills (tons)*6
Total water used (thousands of m3)*6
Business partners engaged in CSR procurement initiatives
Product carbon footprint

Major Data: Core Theme 4Directors   Ratio of independent directors (%)   Ratio of female directors (%)   Average age of directors
Audit & Supervisory Board members   Ratio of independent auditors (%)
Executive officers   Ratio of female executive officers (%)
Total amount of corporate or Group donations (millions of yen)
Political contributions (yen)Return on equity (%)
Return on invested capital (%)
Earnings per share (yen)Total Group transactions (millions of yen)
Payout ratio (%)*1 Based on employees as of April 1 of the following fiscal year
*2 FinTech segment operating income ÷ Active cardholders*3 Aggregate total of position changes in April and October of each year, excluding officers and managers*4 Ratio exceeds 100% due to delays in the timing of acquisition of leave for the purpose of childbirth by spouse or childcare*5 As of June 1 of each year
*6 Third-party verification received from the Japan Quality Assurance Organization from the fiscal year ended March 31, 2018
*7 Figures exclude officers and managers*8 Investments totaling ¥1,030 million projected for the fiscal year ending March 31, 2019*9 Third-party verification received from the Japan Quality Assurance Organization from the fiscal year ended March 31, 2017

Please refer to MARUI GROUP’s ESG DATA BOOKs for more information.
www.0101maruigroup.co.jp/en/sustainability/lib/databook.html

VISION BOOK 2050

43

Executive Officer Skill Map

Basic character

Yoshinori Saito
Senior Executive Officer
Hirotsugu Kato
Director,
Senior Executive Officer
Yoshiaki Kogure
Executive Officer

Masahiro Aono
Executive Officer

Yuko Ito
Executive Officer

Mayuki Igayama
Executive Officer

Junko Tsuda
Executive Officer

Miyuki Kawara
Executive Officer

Masahisa Aoki
Executive Officer

44

VISION BOOK 2050

Practical(realistic, reliable)

Hajime Sasaki
Senior Executive Officer

Feeling (emotional,
empathetic)

Takashi Wakashima
Managing Executive Officer

Thinking (logical,
knowledgeable)

Toshikazu Takimoto
Managing Executive Officer

Inspiration(instinct, passion)

Masao Nakamura
Director,
Managing Executive Officer

Flexible, responsive

Tomoo Ishii
Director,
Senior Managing Executive Officer

Patient, persistent

Motohiko Sato
Senior Managing Executive Officer

Proactive, leader

Introverted (receptive)

Extroverted (active)

Hiroshi Aoi
President and Representative Director,
Representative Executive Officer

Behavior patterns

The following is MARUI GROUP’s first map of executive officers’ skills. This skill map was compiled to provide a multifaceted view of the personalities and management skills of the executive officers in charge of specific business areas to­facilitate the accomplishment of MARUI GROUP’s mission and long-term vision. In compiling this skill map, executive
skills were mapped based on type and career, and 360-degree evaluations were conducted, excluding the individual inquestion, by supervisors, colleagues, and subordinates. The map was improved and further refined based on the definition of each item in order to provide a clear representation of the qualities of MARUI GROUP’s management team.
Area of management expertise
Sustainability(ESG, risk)

IT literacy(Internet, e-commerce)

Human resource
management (humanresource development)

Finance(finance, accounting)Operations(administration)

Marketing(pioneer spirit)

Innovation (businessdevelopment)

Career*Joined MARUI GROUP CO., LTD., in 1986; became director and general manager of the Sales Planning Headquarters in 1991 aftergaining experience in finance and corporate planning; became managing director in 1995, filling the positions of general manager of theSales Planning Division and officer in charge of planning, personnel, and finance thereafter; became executive vice president and representative director in 2004; became president and representative director in 2005; became president and representative director andrepresentative executive officer (incumbent) in 2006
Joined MARUI GROUP CO., LTD., in 1977; became director and general manager of the Group Corporate Planning Division in 2005
after gaining experience in information systems and procurement and distribution management, and as a store manager; became
managing director and managing executive officer in 2008; became senior managing director and senior managing executive officer in2012 and later assigned responsibility for corporate planning, audit, personnel, finance, credit card services, and information systems;
currently senior managing executive officer and CFO in charge of IR and finance
Joined MARUI GROUP CO., LTD., in 1983; became executive officer and general manager of the Group Compliance Division in 2007
after gaining experience being in charge of credit, being positioned in the General Affairs Department, and as a deputy store manager;
became director and executive officer and general manager of the General Affairs Division in 2009 and later held positions as generalmanager of the Personnel Division and chief operating officer for Healthcare Promotion; currently director and senior managing executive officer, CSO, CHO, and in charge of audit, general affairs, p­ ersonnel, and health promotion, and concurrently president and representative director of MOVING CO., LTD.
Joined MARUI GROUP CO., LTD., in 1983; became executive officer and general manager of the Group Business P­ romotion Division in2007 after gaining experience being in charge of sales promotion and as general manager of the Store Planning Division and as a store
manager; became director and executive officer and general manager of the Corporate Planning Division and the Business Development
Division in 2008; became president and representative director of MARUI CO., LTD., in 2011; currently director and managing executive
officer responsible for the FinTech segment and concurrently president and representative director of AIM CREATE CO., LTD.
Joined MARUI GROUP CO., LTD., in 1982; became director and general manager of the Credit Card Services Division of Epos Card Co.,
Ltd., in 2006 after gaining experience in customer service and sales, credit planning, and corporate planning and as a deputy store
manager; became executive officer in 2009; became director and executive officer and concurrently president and representative
director of Epos Card Co., Ltd., in 2012; currently managing executive officer responsible for the Retailing segment and CIO and­concurrently president and representative director of M & C SYSTEMS CO., LTD.
Joined MARUI GROUP CO., LTD., in 1981; became director and deputy general manager of the Sales Promotion Headquarters­responsible for e-commerce operations in 2006 after gaining experience in procurement and distribution management and corporate
planning, as a component buyer, and later as general manager of the Product Planning Division and as a store manager; became
director and executive officer and concurrently president and representative director of MOVING CO., LTD., in 2011; currently managing
executive officer in charge of sustainability, the real estate business, and architecture and concurrently director of AIM CREATE CO., LTD.
Joined MARUI GROUP CO., LTD., in 1986; became director and general manager of the Card Planning Division of Epos Card Co., Ltd., in2007 after gaining experience in customer service and sales, product planning, and credit card services and as a deputy store manager;
became general manager of the Demand Survey Department of MARUI CO., LTD., in 2009; became director and general manager of thePrivate Brand Department of MARUI CO., LTD., in 2012; became executive officer in 2013; became director in 2014; currently senior
executive officer and concurrently president and representative director of MARUI CO., LTD.
Joined MARUI GROUP CO., LTD., in 1986; became executive officer and general manager of the Financial Department in 2008 aftergaining experience in customer service and sales, procurement management, finance, and corporate planning and as general managerof the Planning Department and as a store manager; became director and general manager of the Sales Promotion Department of Epos
Card Co., Ltd., in 2013 after serving as director and general manager of the Direct Marketing Department of MARUI CO., LTD.; currently
senior executive officer and concurrently president and representative director of Epos Card Co., Ltd., and director of M & C SYSTEMS
CO., LTD.
Joined MARUI GROUP CO., LTD., in 1987; became executive officer and general manager of the Corporate Planning Division in 2015
after gaining experience in customer service and sales, finance, credit card services, and corporate planning; became director andsenior executive officer and general manager of the IR Department and in charge of ESG promotion in 2016; currently director andsenior executive officer, CDO, general manager of the IR Department, and in charge of corporate planning and ESG promotion, and­concurrently senior managing director of M & C SYSTEMS CO., LTD., and director of tsumiki S­ ecurities Co., Ltd.
Joined MARUI GROUP CO., LTD., in 1983; became general manager of the Group Financial Department in 2006 after gaining experience in customer service and sales, public relations, and sales promotion and as a component buyer and a deputy store manager;
became executive officer in 2007 and later became general manager of the Personnel Division, general manager of the Corporate
Planning Division, and general manager of the Direct Marketing Department of MARUI CO., LTD.; currently executive officer and­concurrently president and representative director of MARUI FACILITIES Co., Ltd., and director of MARUI HOME SERVICE Co., Ltd.
Joined MARUI GROUP CO., LTD., in 1984; became general manager of the Women’s Clothing and Accessories Department in 2008
after gaining experience being in charge of credit in customer service and sales and product planning, and as a men’s and women’s
clothing buyer and a deputy store manager; became director and general manager of the Business Promotion Department of MARUICO., LTD., in 2011; became executive officer in 2013; currently executive officer and concurrently managing director and generalmanager of the Store Business Promotion Department of MARUI CO., LTD., and director of AIM CREATE CO., LTD.
Joined MARUI GROUP CO., LTD., in 1986; became general manager of the Construction Department in 2007 after gaining experiencein construction, store planning, the space production business, and other specialized fields; became director of AIM CREATE CO., LTD.,in 2012; became executive officer in 2014; currently executive officer and general manager of the Group Design Center and the Construction Department and concurrently director and general manager of the Creative M­ anagement Department, and deputy generalmanager of the Space Production Business Division of AIM CREATE CO., LTD.
Joined MARUI GROUP CO., LTD., in 1987; became general manager of the New Business Department in 2009 after gaining experiencein customer service and sales and sales promotion and as a store manager, and later in direct marketing business planning and businessdevelopment; became director and general manager of the Direct Marketing Department of MARUI CO., LTD., in 2014; became executive officer in 2015; currently executive officer and concurrently director and general manager of the Omni-Channel Retailing Division of
MARUI CO., LTD., and director of MOVING CO., LTD.
Joined MARUI GROUP CO., LTD., in 1995; became responsible for store operation in 2010 after gaining experience in customer service
and sales, sales promotion, women’s clothing, and demand surveys; became store manager of Nakano Marui at MARUI CO., LTD., in
2014; became executive officer and concurrently director and store manager of Marui Family Shiki at MARUI CO., LTD., in 2015;
became general manager of the New Business Development Department in 2017; currently executive officer and concurrently
director and store manager of Marui Family Mizonokuchi at MARUI CO., LTD.
Joined MARUI GROUP CO., LTD., in 1986; became store manager of Kobe Marui at MARUI CO., LTD., in 2007 after gaining experiencein customer service and sales and product planning and as a women’s clothing buyer; became general manager of the Brand Development Department of MARUI CO., LTD., in 2008; became general manager of the CSR Promotion Department in 2012; became director
and general manager of the Collaboration Card Business Department in the Sales Promotion Department of Epos Card Co., Ltd., in
2015; became executive officer and concurrently director and general manager of the Sales Promotion Department of Epos Card Co.,
Ltd., in 2016; currently executive officer and concurrently director and store manager of Ueno Marui at MARUI CO., LTD.
Joined MOVING CO., LTD., in 1992; became general manager of the Pre-Opening Development Office in the Anime Business Department in 2015 after gaining experience in sales development, product planning, management planning, and fashion distribution at
MOVING CO., LTD., and later in work planning and as store manager of Shinjuku Marui Annex at MARUI CO., LTD.; became generalmanager of the Anime Business Department in 2016; became executive officer in 2017; currently executive officer and generalmanager of the New Business Development Department and in charge of the anime business* Positions for which a company is not specified are at MARUI GROUP CO., LTD.

VISION BOOK 2050

45

Forged Out of the Dedication of Employees and Officers

Creation of MARUI GROUP’s 2050 Vision
MARUI GROUP’s 2050 Vision was forged over a roughly yearlong process
of ongoing discussion among employees, executive officers, and specialists.
Through a process shaped by employee volunteers, a back-casting approach was used startingfrom our goals for 2050 to form MARUI GROUP’s vision for the future.

Background for Establishment of Vision
The establishment of MARUI GROUP’s 2050 Vision was prompted by input from investors.
Although the market had recognized the improvement in corporate value achieved through our
co-creation philosophy and business strategies based on inclusion, there were requests fora long-term vision, long-term targets for accomplishing this vision, and quantitative information
on progress toward those targets. These requests led us to start formulating a vision. When­formulating an ultralong-term vision for 2050, the opinions of the employees that will actually
be living in that era are of the utmost importance. For this reason, younger employees were­recruited to take part in establishing the vision, a process that we advanced through a unitedemployee effort.

Establishment Process
STEP 1: A nalysis of operating environment projected for 2050 including microtrends
and global megatrends

STEP 2: Prediction of future in 2050 as it pertains to MARUI GROUP

STEP 3: E stablishment of vision for desired state of MARUI GROUP in 2050
and long-term targets for accomplishing vision

Sustainability Project Team meeting in July 201846

VISION BOOK 2050

Ever-Evolving Process Driven by Employee Participation

Groupwide Sustainability Project TeamMARUI GROUP has
established four
official project teams
that engage in deep,
forward-looking discussion on themesthat are related to the Company or society as awhole from a medium-to-long-term perspective.
One of these teams is the Sustainability Project
Team, which was formed in 2018. Members wererecruited through open application, and the unprecedented number of applications was so great that
only one-seventh of applicants were accepted,­resulting in a team comprising roughly 50 Group
employees. The members took part in workshops
arranged by external specialists and discussed thevision for the future that would be MARUI GROUP’s
2050 Vision.

Major Events of the Year2017
December

Input received from investors at MARUI GROUP IR DAY
became the impetus for the establishment of a project teamfor establishing a vision. Meetings with employees and­discussions with external specialists were commenced.

2018
January–
February

The first Future Co-Creation Workshop was held on fouroccasions with attendance by officers, younger employees,
and external specialists to discuss visions for MARUIGROUP in 2050.

May–
The second Future Co-Creation Workshop was held on
September seven occasions during which project team members
recruited through open application and external specialists
discussed desirable futures for MARUI GROUP 2050.
September In the second workshop, employees were divided into six
groups to formulate 2050 vision proposals to be presented
directly to executive officers, after which a rough draft wasformulated by the organizing committee.
October

The third Future Co-Creation Workshop was held among
executive officers only, who discussed the 2050 vision
proposals prepared by employees while sharing theiropinions and interpretations.

December

An intensive vision conference was held just for executive
officers to finalize MARUI GROUP’s 2050 Vision forannouncement at the co-creation sustainability explanatory
forum on December 10, 2018.

Creation of 2050 World Map Based on Employee Input
At the Future Co-Creation Workshops, employee
participants first took part in analyzing the operating
environment predicted for the future. Discussions werethen held on future trends that seemed certain basedon global megatrends, the future trends that, albeit
uncertain, were of importance to MARUI GROUP,
and finally visions for what MARUI GROUP wanted
to become in 2050.

Ten Key Concepts
The values MARUI GROUP wants to emphasize in its
2050 Vision were organized into 10 key concepts.
Fairness and impartiality
Beneficial trade
Community and connections
New indicators
Happiness and prosperity
Redevelopment of social systems and infrastructure
Utilization of technologies
Co-creation
Inclusion

The 2050 world map compiles future trends that seem certain, uncertain
trends of importance to MARUI GROUP, and visions for what MARUIGROUP wants to become.

VISION BOOK 2050

Sharing47

Future Co-Creation Workshops Centered on Employees

eam A’s presentation involved producing model examples of the cities in which we
can live as we ideally desire. We wanted to take responsibility in shaping the futurewith our own hands, and this desire informed our vision. Through this presentation, I was
reminded of the importance of assembling people with different perspectives and backgrounds to engage in free discussion on a single theme. This process led to substantial
output that I would not have imagined prior to participating. Moving forward, it will be important for everyone at MARUI GROUP to think about how we will go about realizing our vision.
I hope that I can help foster a corporate value in which employees are always aware of theirvision, adjusting their actions based on the actions of others.

T

We wanted to takeresponsibility in shaping
the future with ourown hands.

Takashi Kitao
Second Sustainability Project Team Member
Digital Transformation Promotion Department,
M & C SYSTEMS CO., LTD.

ur vision for 2050 was of a world in which everyone thinks and acts from a positionof altruism that is blind to borders as they work to resolve global issues. Up until now,MARUI GROUP’s business has sought to provide opportunities equally to everyone. Our
vision for an ideal world is impossible in a society filled with inequality. We therefore aim toutilize the strengths and technologies of MARUI GROUP to help dispel global inequalities.
I am interested in inter-generational human businesses. I hope we millennials can bridge thegap between Generation Z and all future generations, shaping the future while empathizing
from a relatable position. This prospect fills me with excitement.

O

I hope to bridge the gap
between future generations,
shaping the future while empathizing
from a relatable position.

Erika Watanabe
Second Sustainability Project Team Member
Sales & Planning Department,
MARUI CO., LTD.

48

VISION BOOK 2050

Employees that took part in the Sustainability Project Team first analyzed the operating environment trends projected 30
years in the future and then discussed the future trends that seem certain and the world they wish to build based on thosetrends. After this, the members were divided into six groups to formulate visions for MARUI GROUP in 2050, which were presented directly to executive officers. On these pages, representatives from each of the six groups explain the sentiments incorporated into their visions and what they see as their duties following the announcement of MARUI GROUP’s 2050 Vision.

I want to create a futureof coexistence andco-prosperity in which
all people can embrace
their individuality.

key point of our presentation was our ability to communicate the appeal of the hopethat we held for the future. I was inspired by MARUI GROUP’s 2050 Vision, a declaration of our intent to play a leading role in shaping the world to realize the future we desire.
Personally, I want to create a future of coexistence and co-prosperity in which all people canembrace their individuality through co-creative businesses that provide roles and places foreveryone. I understand that MARUI GROUP cannot realize its vision alone. It will be crucial
for us to accelerate our progress toward our vision by working together with allies thatenvision similar futures. For this reason, we must step outside the Group to become “humanhubs” that create new allies and foster collaboration with them.

A

Natsuki Yano
Second Sustainability Project Team Member
Investment Research Department,
MARUI GROUP CO., LTD.

We envisioned a societythat values individualenrichment over national
prosperity.

n my group, we envisioned a society that values individual enrichment over national
prosperity, a future in which everyone is able to choose from options that do notcause harm and that contribute to the enrichment of individuals. I was surprised and overjoyed that the final 2050 Vision incorporated our input in various areas. I am in charge of­financial inclusion in my current position, but I understand that the definition of happinesscan vary from person to person and that people may place different values on money andprosperity. I therefore aspire to create various options for each individual to propose thebest possible course of action, remaining careful not to lose sight of the true goal of financial
inclusion. It is important that we continue to move forward so that our ideals can get beyond
armchair theorizing to influence the world of today and tomorrow.

I

Yuka Seta
Second Sustainability Project Team Member
Yurakucho MaruiIn charge of Financial Inclusion
Epos Card Co., Ltd.

VISION BOOK 2050

49

Future Co-Creation Workshops Centered on Employees

y team formulated our vision with a focus on the global environment

M from the perspective of humanity’s continued survival in the world of
2050. I was struck by the finished 2050 Vision and its emphasis on theconcept of dichotomies to envision scenarios for a broader perspective.
However, the sheer scale of this vision places its ability to drive actual action
into doubt. Nonetheless, I am confident that we can realize the 2050 Vision if
we have a commitment to benefiting customers and a pioneer spirit. I personally want to take part in co-creative businesses. I am currently helping to build
a flourishing and inclusive society that offers happiness to all through myproduct creation, e-commerce, and customer service activities in the OmniChannel Retailing Department.

We can realize the 2050 Vision
if we have a commitment
to benefiting customers
and a pioneer spirit.

Ryo Hayasaka
Second Sustainability Project Team Member
Omni-Channel Retailing Department,
MARUI CO., LTD.

ur vision was for a world in which everyone can find their raison d’être andin which MARUI GROUP can transform this purpose into value throughits business. We therefore saw a need for indicators for the subjective value of
purpose and a platform for linking individuality to purpose. MARUI GROUP’s
long-term vision accounts for the people that will be made happy through its
accomplishment. I therefore believe that this vision is something that MARUIGROUP can accomplish with its core value emphasizing a love of people andthe act of building trust. Key to accomplishing this vision will be combining thiscore value with technologies to accelerate our efforts.

O

We saw a need for aplatform for linking
individuality to purpose.

Yuri Matsuyama
Second Sustainability Project Team Member
Gender-Free Fashion Project TeamMARUI CO., LTD.

50

VISION BOOK 2050

Employees Volunteering to Join the Sustainability Project Team

Participating in the Sustainability Project Team increased my environmental awareness while
making me aware of my lack of knowledge pertaining to coexistence with the global environment. Also, I was filled with a desire to help preserve the environment through inter-generational
businesses after being given the opportunity to think about the environment as it pertains tofuture generations. I anticipate that technological progress will make it possible to protect theenvironment in ways that we had all but given up on in the future.

Masao Mori
Second Sustainability Project Team Member
Sales Department, MARUI HOME SERVICE Co., Ltd.

Through the project team, I became aware of the fact that all businesses shape the future and of
the importance of framing the accomplishment of goals in terms of commitment rather thanability. Furthermore, I have since come to voice opinions in my daily work while always remaining aware of the need for clear principles and visions of what we want to provide to stakeholders
if MARUI GROUP is to be a company that is always chosen by customers.

Yuki Tsukita
First Sustainability Project Team Member
New Business Development Department, MARUI GROUP CO., LTD.

The project team helped me experience the need for increased speed to address
the ever-more rapid pace of social change expected to be seen in the future, enabling
me to think based on a more long-term perspective. In the field of financial inclusion,
I hope to support the happiness of everyone by providing ways of interacting withmoney (services) that are characteristically MARUI GROUP to customers harboringmonetary concerns.

Takuto YoshiharaFirst Sustainability Project Team Member
System Planning Department, M & C SYSTEMS CO., LTD.

My involvement with the project team changed my perspective from focusing on whatshould be done to respond to social changes to working backward from a vision for the
future to determine what needs to be done today. MARUI GROUP’s 2050 Vision is of agreat scale, and I am convinced that new businesses can be developed by uniting bothsides of dichotomies. We will have to tackle new challenges to accomplish our vision,and I am committed to growing so that I can create value for the future.

Asami Ishii
First Sustainability Project Team Member
Ueno Marui, MARUI CO., LTD.

At first, I was unable to escape from the confines of standard conventions when
thinking about the future from a long-term perspective. However, the more the project
team met, the more I was able to break away from this thinking. I believe that the 2050
Vision exudes MARUI GROUP’s aura, but I also suspect that it will be incredibly difficult to ­accomplish. If we are to realize this vision, we will need to take the focus off ofprofit, instead seeking to give form to our ideals and continue creating frameworks forgenerating profit through these ideals.

Tetsuya HoshinoFirst Sustainability Project Team Member
Human Resources Development and Group Distribution Department, MOVING CO., LTD.

The project team made me realize that sustainability was my responsibility while heightening mycommitment to benefit customers and reaffirming the importance of the creation of social value
and beneficial trade of profits. Various dichotomies and inequalities are likely to appear in the
future. However, this does not change the fact that all people have an equal right to happiness.
I therefore feel that it is the mission of those of us working at MARUI GROUP to help build asociety in which everyone can live with peace of mind.

Hidehiko Nonaka
First Sustainability Project Team Member
Personnel Division, MARUI GROUP CO., LTD.

VISION BOOK 2050

51

Group Members Resonating with MARUI GROUP’s 2050 Vision

Kumiko Tanaka

Ayumi Hiromatsu

Yuma Suzuki

Kinshicho MaruiMARUI CO., LTD.

System Planning Department,
M & C SYSTEMS CO., LTD.

Marui City Yokohama
MARUI CO., LTD.

The 2050 Vision was of a much greater scalethan my own vision. The concepts of environmental efficiency and circular revenue were­excellent for clarifying the goals of MARUIGROUP. I now recognize that the small efforts
of individuals can amount to something muchlarger, and I thus hope to work with lofty aspirations to help others resonate with this vision.

The 2050 Vision amazed me and won mysupport at first sight. I recognize that, in thesociety of today, there are some dichotomies
that are created by businesses, making me
wonder how we can possibly transcend all­dichotomies through our business. I am stilla little unclear on how to do this, but I am­committed to giving it my all as I move forward
one step at a time.

The nitty-gritty of the 2050 Vision is abouttranscending dichotomies, and this vision
made me realize the importance of remaining
mindful of this task over the long term while
tailoring one’s efforts to changes in the environment and in the times. I hope that all employees will be as passionate toward this vision
as I am so that MARUI GROUP can lead the­accomplishment of this vision while incorporating all people, companies, and societies.

Naoki Ito
Marui City Yokohama
MARUI CO., LTD.

I have been convinced that transcending­dichotomies is vital to the realization of a sustainable world. However, given the breadth andthe long-term perspective of the 2050 Vision,
I am concerned that some employees may
sense a great deal of disparity between the
MARUI GROUP of today and our vision. What
we probably need is a clear roadmap to ensure
effectiveness in human resource development
and in collaboration with other companies.

52

MARUI GROUP’s 2050 Vision wasshaped through the efforts ofmembers of the Sustainability
Project Team and then shared withother employees at the meeting of
the Medium-Term Management­Visionary Committee held in July
2018. Many comments werereceived from employees acrossthe Group that found themselves
resonating with the 2050 Vision.

Mariko Kuwae
Ueno MaruiMARUI CO., LTD.

A strength of MARUI GROUP, with its wideranging businesses, is its ability to identify
various social issues that can be addressed
through its business. Our philosophy, which­underscores dedication to the customer’s perspective and to the realization of a sustainable
society, is deeply rooted in the Company. I am
therefore confident in our ability to accomplish
our long-term vision if we prioritize our goals
and work to accomplish them one step at a time.

Aika Sekine

Tamae Saito

Fumimasa Hino

Kinshicho MaruiMARUI CO., LTD.

Customer Success Department and Investment
Research Department, MARUI GROUP CO., LTD.

General Affairs Department,
MARUI GROUP CO., LTD.

MARUI GROUP’s stance toward exercising­corporate responsibility to resolve the issues
to be faced in 2050 and shape the society
we envision resonated with me. I think it is­important that the vision be communicatedto all employees and that we rapidly develop
frameworks to let everyone at MARUI GROUP
transmit their ideas in their own manner.

The idea of transcending dichotomies condenses MARUI GROUP’s quest to practice­co-creation management and create value by
expanding the intersection between stakeholder interests into a few words. I personally
prefer to look at things in terms of “both A andB” rather than “either A or B,” and this idea thus
overlapped with my beliefs.

I see a widening range of possibilities andbusiness opportunities in MARUI GROUP’s
long-term vision, which encompasses theentire world and is an evolution of the Com­pany’s policy of diversity and inclusion. If theCompany were to detail a clear process forhow each business will accomplish the goals
for its KPIs, it would be easier for all employees
to link the vision to their work.

VISION BOOK 2050

Questionnaire

Opinions of 600 Employees Regarding MARUI GROUP’s 2050 Vision

QUESTION 01

QUESTION 02

What personal mission do you wish to accomplish throughyour work in order to contributeto the realization of a sustainable society?

What type of company do you want
MARUI GROUP to be in 2050?

Frequently Cited Keywords

Frequently Cited Keywords

Action, implementation, learning, growth, diversity

Action, flexibility, responsiveness, communities,
social issues

Noteworthy Responses

Noteworthy Responses• Always thinking first about what social issues my work addresses,
I will search for the ideal resolution through introspection while
deeply examining the issues to drive concrete action.
• First of all, I will learn about and experience social issues. I will thenimplement initiatives for addressing these issues through my work.
• I want to act in a manner that contributes to a sustainable society
and to my own growth.
• Freeing myself of my prior thinking and preconceptions, I will
predict future possibilities and focus on being open to diversity.

• I want MARUI GROUP to be a company that interacts and coexists
with a diverse range of people while generating innovation for­resolving social issues.
• I hope that MARUI GROUP will maintain its mindset of evolving tobetter serve customers and at the same time respond flexibly tosocial change.
• In the society of the future, one will only need a computer to becomplete, which may dilute interpersonal connections. I believe that
we can bring joy to people by creating venues for connections andcommunities.
• Resolving a wider range of social issues will require us to search forresolutions while working together with other companies and coordinating with government agencies, the United Nations, and otherinstitutions.

AnalysisAnalysis

From among the global megatrends of environmental issues, social
issues, economics, and technologies, to which trend would you link
the personal mission described in question 1?

From among the global megatrends of environmental issues, social
issues, economics, and technologies, in which area would you like the
MARUI GROUP described in your response to question 2 to resolve
issues?

Economics,
technologies
40%

Environmental issues,
technologies
10%

Globalmegatrends

Economics
20%

SocialissuesGlobalmegatrends

40%

Socialissues70%

Environmental issues
20%

The ratios of respondents linking their personal mission to social
issues and environmental issues were 40% and 20%, respectively.

Approximately 70% of respondents wanted MARUI GROUP to be
a company that resolves social issues while around 20% wanted
MARUI GROUP to be a company that addresses economic issues.

Examining the relationship between responses to questions 1 and 2, it was found that around 20% of all respondents offered highly similar­responses for their personal mission and their desire for MARUI GROUP in the future, indicating that MARUI GROUP and its employees are, toa certain degree, aligned along the same vector. The responses also signified that employees see the Company as somewhat of an extensionof their own values. Furthermore, a large number of respondents stated a desire to think first about what exactly is the happiness of all people
and then act to contribute to the resolution of social issues, whether with regard to themselves or the Company.

VISION BOOK 2050

53

Eyes toward the Future Beyond 2050

Input from Children That Will Shape the World 30 Years from Now—Input from Children—
I hope that we will still value connections
with people and the warmth of people 30 years
in the future.

As part of the process of formulating our long-term vision, we reached
out to Ebara Fifth Public Elementary School in Shinagawa, Tokyo.
A total of 130 children, who will be the ones shaping the world 30
years from now, were invited to take part in discussions so that we
could incorporate their thoughts and opinions into the vision. The
children were first asked to imagine what the world may look like
30 years in the future and then to think about what would make fora more desirable future. The children voiced a mixed assortment ofhope and concern regarding the future, with some stating how theywant to value interpersonal connections or make ecological lifestyles
the norm and others expressing concern for being ruled by technology. Such input from children was integrated into MARUI GROUP’s
2050 Vision, representing our first step in practicing co-creation
with the group of stakeholders that is future generations.

I want to enjoy the evolution of technology
while addressing climate andother environmental issues.

We should separate the work of people fromthe work of robots. We need to enrich people’s
lives without making things overly convenient.

Ayano Moroto
Teacher
Ebara Fifth Public
Elementary School
Shinagawa, Tokyo

I remember how motivated and excited the children
were to participate in this event after I informed themthat their input would be used to help set MARUIGROUP’s new management policies. Many of theiropinions were unexpected, such as those that expressed dissatisfaction with an overly convenientsociety and those that wanted to eat meals with theirfamilies. This event thus made it apparent that thestudents had not lost sight of the importance of connections with others and the fundamental qualities ofbeing human.

Inside Scoops on Discussions Held

When Formulating the 2050 Vision
Inside
Scoop

Inside
Scoop

There was actually a predecessor to the 2050 Vision of“harnessing the power of business to build a world thattranscends dichotomies.” This vision was “Shiawase(Happiness) × Sustainability = Seicho (Growth)” or “S3.”
Based on MARUI GROUP’s co-creation philosophy, thisvision involved providing all stakeholders with options forbeneficial trade so that the Company could grow by accumulating value in addition to profit. However, the inclusionof future generations among the emphasized stakeholder
groups was a new perspective unique to the long-term
vision, and we thus decided to rethink our vision from thisperspective.

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At the Future Co-Creation Workshops, employee participants presented the long-term vision proposals they had
thought of directly to executive officers. On the day of thepresentations, a typhoon struck Japan, breaking windows
at Namba Marui. One employee was forced to skip theworkshop to address this issue. This employee’s group had
been working on their vision up until the morning of thepresentation. They set up an impromptu intranet meeting
via the Group’s internal meeting system during which they
discussed the vision, right up to the deadline. The passion
infused in the discussions strengthened the bonds between
the members, who remain connected even today.

VISION BOOK 2050

Intensive Vision Conference for Executive Officers
After receiving proposals from Sustainability
Project Team members and discussing withchildren, the last step in formulating MARUIGROUP’s 2050 Vision was a two-day, overnight
intensive vision conference attended by all exec­
utive officers. At this conference, the executive
officers brought the vision to final form by organizing and confirming understanding of theopinions of employees, children, and experts
and then considering, presenting, and sharing
the long-term vision proposals presented by
the Sustainability Project Team groups. A wide
variety of opinions were raised during the open
and lively discussions. One officer mentionedthat he sensed an innovative drive to overcome
challenges in the idea of transcending

dichotomies. Another stated that concrete KPIs
were suited to green businesses while also
bringing up the need to reevaluate the KPIs
for other businesses in the future. Following its
finalization at the conference, the 2050 Vision
was announced at the co-creation sustainability
explanatory forum held on December 10, 2018.

LetterTo Every Employee That Has Joined Since 1970 and Will Join in the Future

Motohiko Sato
Senior Managing Executive
Officer and CFO
In charge of IR and Finance
MARUI GROUP CO., LTD.

It is common, even today, for people of my age to express their appreciation
for how MARUI GROUP has helped them in the past. Whenever this happens,
I am reminded of how MARUI GROUP has been long loved by and necessary
to society. Back in the day, we helped countless people with our installment
payment framework based on credit forged together with customers, thereby
addressing the consumption needs of younger, low-income individuals, whichitself could be said to have been a social issue. The evaluation of the social
value born out of being needed by society contributed to improved economic
value, thereby driving our growth over the past 88 years.
Today, the evolution of the Internet is responsible for massive changes inour operating environment. We have responded to these changes by transforming our business structure, shifting from in-house credit cards to multi­
purpose EPOS cards and transitioning from department stores using theconsignment buying system to shopping centers utilizing fixed-term rental­contracts. These initiatives have laid the foundations for stable growth. In the
future, we anticipate further changes to the operating environment as digitization spreads and AI and other technologies evolve rapidly. No matter how times
may change, though, we will continue to address social issues in our businessby capitalizing on the responsiveness to change that is part of MARUI GROUP’s
DNA. Through unrelenting innovation and ambition, MARUI GROUP will aspire
to be a company that is always loved and needed by society in order to ensure
robust growth over the next 100 and 150 years.

VISION BOOK 2050

55

The members of the Sustainability Project Team and the members of the2018 Medium-Term Management Visionary Committee that resonatedwith MARUI GROUP’s 2050 Vision assembled to share solidarity in theirvision for the future.

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VISION BOOK 2050

VISION BOOK 2050

57

MARUI GROUP’s mission is to contributeto the co-creation of a flourishing andinclusive society that offers happinessto all. Creating happiness for everyone
requires co-creation with Group employees as well as with customers, business
partners, and all other stakeholders.
We at MARUI GROUP will march forward
toward the future we envision.

Contact
Sustainability Department and ESG Promotion Department
MARUI GROUP CO., LTD.
3-2, Nakano 4-chome, Nakano-ku, Tokyo 164-8701, Japan
Tel: 03-5343-0717 E-mail: esg01@0101.co.jp

Corporate information, investor relations
information, sustainability information,
recruitment information

Mailing list registration (Japanese only)
www.0101maruigroup.co.jp/ir/infomail/reg.html

www.0101maruigroup.co.jp/en/

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VISION BOOK 2050

VISION BOOK 2050

CO-CREATION

Publication date: March 2019
Publisher: Sustainability Project Team, MARUI GROUP CO., LTD.
Planning and production: EDGE INTERNATIONAL, INC.
Printed in Japan