Financial Inclusion

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.

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 creditcards. 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 inthe following long-term targets.

Younger generations
Non-Japaneseindividuals in Japan

Customers
Non-Japaneseindividuals

MARUI GROUP’s

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

Non-Japaneseindividuals overseas

Financial inclusion
Credit cards

Financial services

Asset building

Financial services through credit cards
Peace of mind for the future through asset building

Other financial services

Financial services for low- and middle-income individuals worldwide
Long-Term Targets

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

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VISION BOOK 2050

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•F inancial 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)• Financial services provided to 10 million
or more individuals worldwide

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Provision of options for alleviating income disparity

Financial Inclusion

Transcending of the Income Dichotomy through Credit Cards

Subscription-Based Business Dating Back to Founding

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.

MARUI GROUP launched its business in 1931 by selling furniture to younger
individuals through monthly installment payments. At the time, people whowere 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.

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 noTatsujin Fund

Rheos Capital
Works Inc.

Hifumi Plus Fund

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, weintend 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.

20–29: 33%

Global Promotion of Financial Inclusion

20–49
87%

Distributionby Age

40–49: 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

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No experience:
68%

Experienced: 25%

Yoshinori Saito

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

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

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

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.

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.

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

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