MARUI GROUP’s Ideaof Sustainability

MARUI GROUP’s Ideaof Sustainability

We will achieve harmony
between the happiness ofall stakeholders through inclusion.
MARUI GROUP has turned its attention to the conceptof “inclusion” to facilitate its efforts for providing fulfilling
lifestyles for all customers. Inclusion entails including andreaching out to all those who have previously been excluded.
Our idea of sustainability requires that no one beexcluded and that everyone be able to enjoy quality
living, health, and prosperity. With similar goals in mind,international society adopted Transforming our World:
The 2030 Agenda for Sustainable Development at
the United Nations General Assembly, convened in
September 2015. This agenda included the Sustainable
Development Goals (SDGs), a set of 17 goals with 169

targets that have been embraced by Japan and192 other countries worldwide.
Inclusion, or excluding no one, is part of the spirit ofthe SDGs, meaning that these goals point us in the same
direction as adopted by MARUI GROUP’s management,
which seeks to achieve harmony between the interests
and the happiness of all stakeholders. Throughco-creation activities with all of its stakeholders, MARUIGROUP will actively contribute to the accomplishmentof the SDGs through its business to help create aflourishing society in which everyone is included.

Four Core Themes
MARUI GROUP has defined four core themes based on the perspective of inclusion thatit believes will further it as a company providing fulfilling lifestyles for all customers.

Core Theme 1Customer Diversity and Inclusion

We will seek to develop products, services, and storesthat bring joy to all customers, regardless of their age,gender, or physical characteristics.

Core Theme 2

Workplace Inclusion

Based on MARUI GROUP’s corporate philosophy ofstriving to “continue evolving to better aid our customers”
and “equate the development of our people with thedevelopment of our company,” we will provide all
employees with venues through which they can excel.
Core Theme 3

Ecological Inclusion

We will develop eco-friendly businesses that areconsiderate of natural capital and propose ecologicallysound lifestyles that are in harmony with nature and theenvironment.

Core Theme 4

Co-Creation Corporate Governance

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

Process for Establishing Core Themes
Focusing our concept of co-creation management and the impact this approach will have on society, the environment, and naturalcapital, we examined the issues and opportunities this approach will create, based on which we defined four core themes for initiatives
from the perspective of inclusion. In formulating these themes, we held meetings with ESG-minded investors, sustainability experts,
nonprofit organizations, and other stakeholders in the greater society as well as with customers, business partners, and Group officers
and employees. In addition, we referenced the ratings of ESG evaluation institutions; internal and external guidelines, such as those of
the Global Reporting Initiative, ISO 26000, the Sustainability Accounting Standards Board, and the International Integrated ReportingCouncil; and the SDGs.

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MARUI GROUP’s Ideaof Sustainability

MARUI GROUP’s Ideaof Sustainability

Co-Creation with All Stakeholders
MARUI GROUP has a corporate culture of listening
to customer input that dates back to its founding.
Dialogue with customers and other stakeholders is
exceptionally important to co-creation management,
and we seek to always make communication
constructive, never marginalizing others’ opinions.
Such dialogue is crucial to achieving harmony

between the interests and the happiness of all
stakeholders. We must continue innovating ourbusiness frameworks and practices in order toincrease the intersection between stakeholderinterests and happiness. This is MARUI GROUP’s
approach toward innovation and its vision for
co-creation management.

Co-Creation with Customers

Co-Creation with Shareholders and Other Investors

The planning meetings we hold with customers are not just avenue for soliciting customer feedback; they are a co-creation
activity that invites customers to take part in the value­creation process for developing stores and products that all
customers choose.

We established the IR Department in October 2015, and,in one year, we met with approximately 300 institutional
investors, including those overseas. We then formed the ESG
Promotion Department in October 2016, through which we areenhancing communication with ESG-minded investors and thedisclosure of ESG information.

MARUI GROUP’s View of Corporate Value
Planning Meetings Held with Customers

Customers

More thanInstitutional Investors Met with600Approx.

(Fiscal year ended March 31, 2016)

Customers Performing Sample Checks

Shareholders Attending General Meeting of Shareholders

1,000 per year

Approx.

(For Rakuchin Kirei series of shoes)

Businesspartners

Investors
Harmonization ofstakeholder interestsand expansion ofintersection

Communities andSociety

300(For planning Hakata Marui)

470(June 2016 meeting)

Co-Creation with
Business Partners

Co-Creation with
Employees

Co-Creation with
Communities and Society

The MARUI GROUP Procurement
Policy was formulated in April 2016,
and we conduct surveys and on-site
investigations together with business
partners to ensure a stable supply ofproducts and confirm partners’ humanrights and work environment initiatives.

Our intra-Group project teams,
including the Diversity Project Team,
Marui Future Project Team, Healthcare
Promotion Project, Medium-Term
Management Visionary Committee,
and other such forums, provide
opportunities for employees todiscuss and share thoughts withindividuals from other companies.

MARUI GROUP participated in theTOKYO RAINBOW PRIDE 2016 LGBT
pride event, held a regional development event that blended the popular
anime series Osomatsu-san with alocal shopping district, and worked toincrease the number of EPOS card
collaboration partners.

Employees©FA/O

Business Partners Participating in
Explanatory Forums

Approx.

100(Fiscal year ended March 31, 2016)14

Employees Participating in
Intra-Group Project Teams

Approx.

320(Fiscal year ended March 31, 2016)

Aggregate number of customers attending “OSOMATSU ICHI in Miyazaki” event

10,000(March 17 – April 6, 2016)15