Co-Creation Management Report 2020

COCREATION

CO-CREATION
CO - CREATION MANAGEMENT REPORT 2020

Publication date: December 2020
Publisher: Co-Creation Management Promotion Project Team,MARUI GROUP CO., LTD.
Planning and production: EDGE INTERNATIONAL, INC.
Printed in Japan

20

The Number of Forward Days for Future Generations

20

Once-in-a-Millennium Paradigm Shift
We are currently in the midst of a once-in-a-millennium paradigm shift. The economic growth sparked by the industrial
revolution has created great physical wealth. At the same time, the era that followed the industrial revolution has beencharacterized by mass production and consumption, which in turn has led to a myriad of issues on a global scale.
These issues include rampant waste; resource depletion; global warming and other forms of climate change, which is
being accompanied by increasingly frequent extreme weather events; and rapid global demographic changes.
Meanwhile, technology is developing in a manner that is subdividing the landscape into various specializations, fuelingswift progress in digital technology fields such as artificial intelligence (AI) and the Internet of Things (IoT). A diverse

THE WORLD IS CHANGING

range of options are being made available to society as a result of this progress, and these options are driving thediversification of the values of people and the types of happiness they seek. Furthermore, the global COVID-19 pandemic has created a situation in which conventional business models presuming stability and predictability haveceased to be effective. Amid this great upheaval, humanity is faced with the need to update its way of thinking.
Placed now at the crossroads of history, MARUI GROUP continues to emphasize its commitment to promoting
harmony and the expansion of the intersection between the interests and happiness of six groups of stakeholders,which include future generations. We are motivated by our mission of contributing to co-creating a flourishing andinclusive society that offers happiness to all, which prompted us to put forth a long-term vision of harnessing thepower of business to build a world that transcends dichotomies. This vision, however, cannot be realized by MARUIGROUP alone; we will need to pursue this vision through co-creation with all of our stakeholders. MARUI GROUP
invites all who agreed with its aims to join hands with us in shaping a happier future.

01

Richard Buckminster Fuller, one of the 20th century’s leading engineers, proposed a unique resolution to the global-scale issues we face. In his book, Operating Manual for Spaceship Earth, which
was written roughly 50 years ago, Fuller relates the earth to a spaceship with finite resources.
This book could be seen as a gift, a letter so to speak, to us, the members of humanity living halfa century after its publication. From this manual, we can glean hints on how to effectively pilot this“Spaceship Earth” in a manner that will enable us to sustain life on board.
Fuller, in his book, states that “living only on our energy savings by burning up the fossil fuels
which took billions of years to impound from the Sun or living on our capital by burning up our
Earth’s atoms is lethally ignorant and also utterly irresponsible to our coming generations and theirforward days.” His words cast light on the ignorance people have demonstrated toward the limitless energy of the sun and wind, berating this ignorant humanity as being irresponsible toward
future generations. Fuller’s eyes were always turned toward the future. His idea for the actions weshould take is clear in his definition of “wealth,” which is as follows:

The Number offor Future

Forward Days
Generations

Wealth is the number of forward days we are physically
prepared to sustain for future generations.

“Now we can account wealth more precisely as the number of forward days for a
specific number of people we are physically prepared to sustain at a physicallystated time and space liberating level of metabolic and metaphysical regeneration.”

Richard Buckminster Fuller
Operating Manual for Spaceship Earth

02

03

R

I

C

H

A

R

D
Metaphysical Wealth for Increasing the Number of
Forward Days for Future Generations

B U C K M I N S T E R

Having defined wealth as the number of forward days we are physically prepared to sustain for future
generations, Fuller goes on to divide the concept of wealth into two constituents, the physical, or finite
resources, and the metaphysical, or the knowledge and know-how of people. Metaphysical wealth expands
the more it is used, through the experiments and experiences of people, and reciprocal stimulus effectgenerated through this process leads to explosive growth. Fuller used the word “synergy” to refer to thisreciprocal stimulus effect. He also stated that we can increase our number of forward days by investing not
only in our physical wealth but also in our metaphysical wealth, or our knowledge and know-how. These
investments in metaphysical wealth translate to investments in intangible assets under today’s lexicon.

F U L L E R’ S L E T T E R

Reemployment of Humanity’s Innately
Comprehensive Capabilities
Another key part of Fuller’s message was the importance of humanity’s innately comprehensive capabilities.

T O

F U T U R E

All animals, ranging from the birds of the sky to the organisms of the sea, are equipped with special capability-functioning tools. The superior creativity and imagination of humanity is its unique tool. These comprehensive capabilities are something that AI cannot mimic, no matter how much it may evolve. While AI may
be able to beat a world champion at chess, it cannot create a unique game like chess. It is therefore important for humanity to reemploy its comprehensive capabilities, while borrowing the specialized capabilities ofAI, to unlock the potential of metaphysical wealth. This message seems specifically aimed at the people oftoday, who are rushing to invest in intangible assets and resolve social issues through the use of digitaltechnologies.

G E N E R A T I O N S

0405

POWER TO SHAPE THE FUTURE

New Era for SocietyWith the move to transitioning to a low-carbon society and the advent of a digital society,the prior economic structure, which was focused on physical commodities
and presumed mass production and consumption, is undergoing a massive transformation.
At the same time, as millennials are increasingly coming into positions in which they can shape society,
we are seeing the birth of new businesses aimed at resolving various issues by harnessing the power of technology.
Truly, we are entering into a new era of society.

Ethical Responsibility Toward Protecting
the Wealth of Future Generations

Power of Digital Technologies to
Empower Individuals

It is estimated that 1.7 earths would be required toTechnological innovations, such as IoT, big data, robots,

accommodate the current pace of humanity’s consump-

and AI, are creating a society in which things, experi-tion of natural resources. In other words, the people ofences, and actions are intrinsically linked, freeing us

today are devouring the resources that will be needed byfrom some of the limitations that could not be lifted infuture generations, effectively robbing them of their future.

the previous society focused on mass production andThis overconsumption is accelerating global warming,

consumption. For example, previously idle assets, suchcreating a global crisis that is recognized by people

as unused clothing and houses, can be put to effective

across the planet, even managers and major financial

use by utilizing data to match holders with prospective

institutions. Addressing this climate crisis is a matter

users. Meanwhile, blockchain technologies have madeof utmost importance.

transactions of solar power and other forms of renewable

The adoption of the Paris Agreement in 2015 repre-

nology was accomplished by Taiwan Digital Minister

signaling the start of movement to transitioning to a

Audrey Tang. Together with a team of private-citizen

low-carbon society.

engineers, Tang developed a map program that displayedThis movement gained momentum when young© Fridays For Future Tokyo

energy even easier. A particularly impressive feat of tech­sented a move in the opposite direction of the prior trend,

locations at which masks could be purchased in a mere

Swedish environmental activist Greta Thunberg stood

three days, providing peace of mind to the people ofbefore adult leaders from around the world to say figura-Taiwan amid the COVID-19 pandemic.

tively that “our house is on fire.” This message was under-

While there are some concerns regarding the digitiza-scored by literal forest fires in Australia and California.

tion trend, we cannot deny that this trend is also providing

Forward-looking individuals across the globe were moved

us with a diverse range of options and that these tech-to action by Thunberg’s words, which launched a global

nologies have the power to empower individuals. Digital

movement to combat climate change through demon-

technologies make it possible for people to fulfill theirstrations and other forms of activism. We, the people ofneeds precisely and in a cost-efficient manner while also

today, have an ethical responsibility to protect the tomor-

driving the creation of new businesses that cross industry

rows of our children and to pass the shared wealth oflines to seek resolutions to the issues we face. Millennials

Spaceship Earth onto future generations.

are the largest proponents of the birth of such businesses. Engaging with the flexible thinking of this andfuture generations will no doubt be key to the transformation of society.

“Since the climate crisis has never once been treated as a crisis,“When we see ‘Internet of Things,’ let’s make it anpeople are simply not aware of the full consequences on ourinternet of beings. When we see ‘virtual reality,’ let’s

everyday life… I want you to act as you would in a crisis. I wantmake it a shared reality.”

you to act as if our house is on fire. Because it is.”Greta Thunberg

Audrey Tang
Digital Minister of Taiwan

Swedish Environmental Activist (currently 17)

06

07

THE
GREAT
RESET

Origin Traceable to Stakeholder Capitalism
Recently, the concept of stakeholder capitalism has been gaining traction in Japan. This concept was first
advocated by German-born economist Klaus Schwab some 50 years ago. It was Schwab who founded theWorld Economic Forum in 1971, at a time when the world was divided into east and west by the Cold War.
Schwab was also involved in the creation of the first Davos Manifesto, which, published in 1973, expresses
that the goal of managers should be to “harmonize the different interests of the stakeholders” while also
stating of management that “It must assume the role of a trustee of the material universe for future generations. It has to use the immaterial and material resources at its disposal in an optimal way. It has to continuously expand the frontiers of knowledge in management and technology.” Up until then, prioritizing
shareholders was the most common approach toward management. Schwab, however, proposed a different view of management that encompassed such concepts as stakeholder interests, future generations,immaterial and material resources, and knowledge. His view could be seen as representing the origin of thecommon perspective of today.
The 2020 Davos Manifesto, released at a time when the world was clamoring for a new definition ofcapitalism, called back to the 1973 manifesto by once again casting the spotlight on stakeholder capitalism.

Start of the Great Reset
The outbreak of the COVID-19 pandemic accelerated the speed at which our lives are changing. The pandemic is showing no signs of decline, creating an ever-present sense of social and economic anxiety. U.K.
Prime Minister Boris Johnson, having survived infection by the virus himself, expressed his appreciation
toward the essential workers that are supporting healthcare infrastructure while exposing themselves to therisk of infection with the words “there really is such a thing as society.” Johnson’s words stress how we are
all supported by our connections to society.
Realizing the need to rethink the world’s socio-economic system, Schwab has set “The Great Reset” as
the theme of the 2021 World Economic Forum summit. This decision highlights how we must think about
how the economy can be redesigned around the happiness of people. This sentiment was echoed in thedecision of Emmanuel Faber, chairman and CEO of major France-based food company Danone S.A., tomake this company the world’s first entreprise à mission (company with a mission), a new model for companies aimed at accomplishing goals other than just generating profit. Faber has expressed his desire to

Around the time that Fuller published Operating Manual for Spaceship Earth,economist Klaus Schwab was advocating ideas that would form

create a case study on how to strike a balance between creating value for shareholders and for other stakeholders. With the goal of moving our economy and society into a new phase, we are searching for a meansof enacting a Great Reset.

the basis for the concept of stakeholder capitalism.
This concept is garnering renewed attention in the midst of the COVID-19 pandemic,
prompting us to question the best course as we are currently pressed to take swift action.

“We have to see how we can create a world which is more cohesive, more
inclusive, provide jobs for tomorrow, and create the necessary infrastructure,
particularly for the next generations.”

Klaus Schwab
Swiss Economist
Chairman of the World Economic Forum08

09

M A N AG E M E NT R E P O RT 2 0 2 0

MARUI GROUPC O NTENTSC O-C R E AT I O N

Spotlight
12

Message from the President

20

DIALOGUE 01
New Normal for Companies and Society Amid
the COVID-19 Pandemic

24

32

24

MARUI GROUP’s Co-Creation Philosophy

26

Definition of Corporate Value

28

Innovation and Evolution of Business Model

30

Co-Creation Ecosystem

Co-Creation Ecosystem—Corporate Culture64	Development of Autonomous Organizations
That Continuously Produce Innovation
70	Translation of Individual Strengths into
Organizational Capabilities via Understanding
and Interaction

MARUI GROUP’s Vision

72

76

 IALOGUE 05
D
Happiness Arising from Well-being Amid
the COVID-19 Pandemic

Co-Creation Sustainability Management

Growth of Corporate Value through Harmony between theInterests and Happiness of All Stakeholders
Stakeholders’ desires include both interests that can be measured inmonetary value and happiness, a form of value that cannot be measured monetarily. MARUI GROUP believes that there is an intersection
between stakeholder interests and happiness that can be harmonizedand expanded through an ongoing process of dialogue and cocreation advanced over the medium-to-long term. We therefore seek
to contribute to both interests and happiness, as opposed to sacrificing one for the other.
 age 18
P
Theoretical Radar Chart of Interest and Happiness Value Sought by Stakeholders

Co-Creation Ecosystem—Business78

Message from an External Director

32

 ew Business Model Integrating Retailing,N
FinTech, and Co-Creative Investment80

 orporate Governance for Co-Creating
C
Corporate Value

34

Co-Creative Investment Philosophy

87

Risk Management

36

Co-Creative Investment—A-Side

94

MARUI GROUP’s 2050 Vision

tem that contributes to happiness in all areas of our lifestyles, includ-40

 IALOGUE 02
D
Potential of D2C Brands as an Ecosystem

96

Revision of Policies

to “Co-Creation Ecosystem” on page 30.

44

Co-Creative Investment—B-Side48	
MARUI GROUP’s Value Journey of Continuous
Co-Creation of Creditability
50

64

Co-Creation Ecosystem—Action for the Future
50
54

 CTION 01
A
Green Recovery Shaping the Future IALOGUE 03
D
Creation of Green Ecosystems throughPower with Visibility of Producers

58

 CTION 02
A
Diverse Options for the Future of Food

60

 IALOGUE 04
D
Potential of Vegan Lifestyles

98

Message from the CFO
100 F
 inancial and Non-Financial Analysis
by the CFO

104 11-Year Financial and Non-Financial Summary
106 D
 irectors, Audit & Supervisory Board Members,
and Executive Officers
116	Top 10 Characteristic Qualities of
MARUI GROUP Officers
118 Overview of MARUI GROUP
120 MARUI GROUP Store Network
122 Ratings, Awards, and Recognition

Inter-Company Co-Creation Ecosystem
MARUI GROUP is changing the course of its management to evolve
into an intellectual creation company through investment in intangible
assets. Our new business model integrating retail, fintech, and now
co-creative investment is aimed at developing a co-creation ecosysing clothing, food, housing, and entertainment. For details, please refer age 32
P
New Business Model Integrating Retailing, FinTech, and Co-Creative Investment

New Initiative for Highlighting Diversity of Strengths
and Sentiments of MARUI GROUP Officers
All of MARUI GROUP’s 26 internal and external officers took the
CliftonStrengths® assessment, which evaluated their qualitative
characteristics, painting a picture of their strengths and diversity.
A total of 20 of these officers were found to have the Maximizer®
quality. Please refer to “Directors, Audit & Supervisory Board Members,
and Executive Officers” on page 106 for information on this assessment as well as self-written introductions by officers and explanationsof their personalities and sentiments.
 age 116
P
Top 10 Characteristic Qualities of MARUI GROUP Officers

124 Editorial Policy

Cautionary Notice regarding Forward-Looking Statements
Performance forecasts and other forward-looking statements contained in this report
represent the Group’s best judgments based on information available at the time of thisreport’s publication and therefore contain a degree of uncertainty. It is possible that
actual performance could differ materially from these forecasts due to a variety offactors. Economic conditions, foreign exchange rates, and stock price movements areamong the factors that could have a major impact on performance.

10

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MESSAGEMESSAGE FROM
THE PRESIDENT
We seek to contribute to both interestsand happiness, as opposed to sacrificing
one for the other.
Hiroshi Aoi
President and Representative Director
Representative Executive Officer, CEO

The global COVID-19 pandemic has been ravaging the world

showing its limitations even before the pandemic? We are being

throughout 2020. Please let me extend my thoughts and prayers

urged to seize the opportunity created by the pandemic toto everyone who has fallen victim to this virus or had their lives

undertake a Great Reset and formulate a new vision for theotherwise affected. We still do not have a vaccine or adequate

period after the pandemic.

treatments, and it is said that it could take anywhere fromMARUI GROUP is practicing management from a long-term

between 18 months and three years for this crisis to come toperspective with the goal of promoting harmony between the

an end. The pandemic is already changing our lives, and theinterests and happiness of all of its stakeholders. We are there-

longer it continues, the greater the impact that it will have onfore pressed to formulate a vision for how we will respond to thesociety and the economy.

COVID-19 pandemic and for how we will approach the period

The world after the COVID-19 pandemic is not something wethereafter.

must predict, but rather something that will be shaped by our

Today, I would like to talk about the current impacts of theintentions today. Will we try to revive the world seen before the

COVID-19 pandemic and our future outlook in this regard andpandemic? Or, will we try to shape a new economy and society

our long-term course for after the conclusion of the pandemic.

by rethinking our approach toward capitalism, which was

COVID-19 Impacts and Future Outlook

12

In the fiscal year ended March 31, 2020, revenue declined 2% year

Closing stores for two months is quite unprecedented, withon year as the COVID-19 pandemic forced us to shorten store

the only comparable instances in the nearly 90-year history ofhours and drove down credit card use. Operating income, mean-

MARUI GROUP coming during and immediately after World War II.

while, rose 2%, making for our 11th consecutive year of growth inAccordingly, we are projecting year-on-year declines of 20% in

operating income. Net income attributable to owners of parent

revenue and 72% in net income attributable to owners of parent.

also rose, for the ninth consecutive year, despite extraordinary

This outlook caused the Company’s stock price to temporary

losses incurred due to expenses associated with the pandemic.

drop by nearly 45% compared to six months prior. I apologize forMoving on to the fiscal year ending March 31, 2021, our opera-

the concern this volatility has caused for our shareholders andtions have been heavily impacted so far as Japan’s state of emer-

other investors. I would thus like to take a moment to explain ourgency declaration, which was issued in April 2020, forced us toefforts toward stakeholders in relation to the pandemic and ourclose nearly all of our stores for a period of roughly two months.

future performance forecasts.

13

Efforts Toward Stakeholders

words of understanding and encouragement for our employees

When the Japanese government issued its state of emergency

from family members, friends, associates, and customers. We

declaration in early April 2020, we made the decision to close all of

were thereby able to foster a sense of solidarity and raise morale

our stores in a move to ensure the safety of our customers andto propel us forward as we seek to overcome the pandemic.

MESSAGE

employees. At the head office, we have been preparing for aThis experience taught us how, in times of crisis, we are

departing from short-term-perspective management focused on

greater than the amount of recurring gross profit recorded in thistransition to teleworking since 2019, and a teleworking systempressed to exhibit the true value of the principles we espouseearnings on a single fiscal year basis to long-term-perspective

year. In other words, we can still anticipate gross profit in an

was thus immediately deployed throughout the office. We were

and to demonstrate our commitment to these principles. We aremanagement emphasizing lifetime value. Through this transac-

amount 2.7 times greater than the figure in the fiscal year ended

thereby able to protect the safety of our customers and employ-

now poised to enter the stage of full-fledged co-creation. Withtion, we were able to grow recurring revenue, a form of long-term

March 31, 2020, to be incurred in the future. To put it more bluntly,

ees, but we at the same time found ourselves in a difficult situa-

these important lessons at heart, we are fully committed toearnings generated through ongoing transactions with custom-even if we are unable to resume our operations for an extended

tion with regard to how to accommodate our business partners.

co-creating value together with stakeholders.

ers and business partners.

period of time due to the COVID-19 pandemic, we could still look

Specifically, this recurring revenue took the form of store real

It was us who decided to close our stores. While our tenants

forward to nearly three years’ worth of gross profit thanks to ourcooperated with this decision, it meant that they too could not

Future Outlook

estate rent revenues as well as commissions from recurring

open their stores. This situation was compounded by the fact thatIn the three months ended June 30, 2020, net income attribut-

payments for rent guarantees, communications fees, and utilities

around 80% of our tenants are small to medium-sized companies.

able to owners of parent dropped by more than 70% year on

and revolving and installment payments in the FinTech segment.

sizing lifetime value has granted us a more robust earnings

business activities thus far (see pages 101–102).
In this manner, our efforts to shift toward management empha-

MARUI GROUP’s officers were assembled to discuss what weyear. The primary reason behind this drop was the aforemen-

Recurring revenue has seen a sharp rise since the transition to

structure than ever before while also increasing our confidence in

could do for these business partners. We recognized the trouble

tioned cancellation of rent payments during the period of store

fixed-term rental contracts in the fiscal year ended March 31,

our future cash flows. This confidence is apparent in our decision

they faced as the sudden state of emergency declaration had

closures. Conversely, operating income was up 1%. This out-

2015. As a result, the portion of gross profit represented by

to disclose a dividend forecast projecting higher dividend pay-forced them to close their stores with no clear indication of whencome was due in part to relegating certain expenses to extraordi-

recurring gross profit grew from 34% in the fiscal year ended

ments, despite performance forecasts being left undecided. As forthey could be opened again, no doubt creating issues in terms ofnary loss. However, there were also two other factors that

March 31, 2014, to 65% in the fiscal year ended March 31, 2020,

performance forecasts, there are causes for both pessimism andfunding. The idea of lowering rent was proposed, but we had nocontributed to this increase in operating income.

and the amount of this recurring gross profit increased by 2.5

optimism when it comes to performance in the fiscal year endingtimes. This means that more than 60% of the gross profit gener-

March 31, 2021, and this performance will be heavily impacted byprior experience or standards based on which to determine the

The first was a rise in operating income in the FinTech seg-amount by which to reduce this rent. The possibility to halve rent,

ment. This rise does not mean that the FinTech segment is

ated in the fiscal year ended March 31, 2020, can be expected to

the COVID-19 pandemic. Although we cannot rationally estimate

to share the burden of the situation equally with our partners,

performing well. Quite the contrary, transaction volumes wererecur in subsequent fiscal years.

performance at this moment in time, we are so confident in ourwas put forth. However, as their income was zero over thisdown 10% due to the COVID-19 pandemic. However, the FinTech

The new second indicator is contracted future recurring grossperiod, it did not seem fair for us to receive even half of rent

segment operates a business in which variable costs outweighprofit, which represents the gross profit to be generated in fiscal

payments. Discussions were at a deadlock.

fixed costs. We were thus able to reduce costs to an extent thatyears after the one in which a recurring gross profit transaction is

We have continued to communicate our policy of placing

exceeded the drop in revenue, thereby securing a nearly 20%

conducted. For example, if a customer were to conclude a five-ongoing, long-term dividend increases as a top priority to ouring the co-creation advocated by MARUI GROUP (see pages

increase in operating income. This structure is the exact oppo-

year contract in a given fiscal year, we would only record theshareholders. Nevertheless, we received a question regarding the

24–27), especially given these difficult times. We thus decided tosite of retailing operations, which have high fixed costs and low

revenue incurred in that given year. Accordingly, there would

decision to forecast higher dividend payments despite the lack ofroll out a partnership enhancement campaign for overcoming thevariable costs. MARUI GROUP was thus able to overcome thisremain four years’ worth of outstanding revenue that is not

full-year performance forecasts at a financial results briefing. We

COVID-19 pandemic together (see page 93). One facet of thisadversity by offsetting the negative impacts of the adverse

recorded on the financial statements. We began disclosing

responded that the decision was founded on our commitment tocampaign was a complete cancellation of rent payments duringsituation with the positive benefits thanks to its business model

contracted future recurring gross profit with the aim of making

live up to the expectations of shareholders regardless of the profit

the period of the store closures. However, this campaign was not

integrating retailing and fintech. This model is a major difference

this four years’ worth of outstanding revenue readily apparent

without its concerns. Rent at MARUI GROUP differs from otherbetween MARUI GROUP and companies that are devoted purely(see Figure 1). The amount of contracted future recurring grosscommercial facilities, where rent is often tied to sales; the vast

to retailing (see pages 100–101 for information on the earnings

profit from transactions concluded in the fiscal year ended Marchmajority of our stores employ fixed rent fees, which are decided bystructure of the FinTech segment).

31, 2020, to be recorded in subsequent fiscal years was 2.7 times

It was then that we were reminded of the importance of exercis-

14

M

contracts. Accordingly, a rent cancellation was tantamount to debt

The second factor is the new earnings structure that we had

forgiveness. Such an act thus brought with it the risk of upsetting

built through the business structure reforms advanced thus far.

shareholders as, giving up on the rent revenues promised in

In explaining this structure, I would like to elaborate on twocontracts, would adversely impact their interests.

new indicators for which we began disclosing figures in the six

However, even though this move would result in large short-months ended September 30, 2019: recurring gross profit andterm losses, the stronger ties with our business partners had

contracted future recurring gross profit.* Let me begin with theanticipated economic benefits over the medium-to-long term.

background that led to the disclosure of this information. MARUIWe therefore endeavored to explain this fact to shareholders and

GROUP began offering EPOS cards in 2006, causing fintech toother investors and to gain their understanding. Putting forth thisreplace retailing as the driver of its growth. Later, we embarked

idea at the Ordinary General Meeting of Shareholders, we wereon a five-year venture to transition to a business model focused

successful in earning the understanding of shareholders, andon fixed-term rental contracts in the Retailing segment in thethis understanding enabled us to cancel rent to the joy offiscal year ended March 31, 2015. This transition entailed moving

stakeholders.

away from conventional department stores to operate shoppingThis measure had unexpected results, namely words of admira-

centers that primarily generated income in the form of renttion being levied at employees. Apparently, our decision prompted

revenues. These business structure reforms were aimed atfuture cash flows that we believe it will be possible to raise
dividend payments even based on the most pessimistic outlook.

losses stemming from the COVID-19 pandemic.
* Referred to as “contracted future recurring revenue” until the fiscal year ended March 31,
2020, to reflect future recurring revenue based on revenue as displayed on financial
statements; referred to as “contracted future recurring gross profit” in this report to reflect
future recurring revenue based on gross profit

Figure 1: Concept of Contracted Future Recurring Gross Profit Underlying Long-Term Management
Contracted future
recurring gross profit
5th yearContracted future
recurring gross profit
4th year

Unrecorded portionof contracted future
recurring gross profit

Total contracted future
recurring gross profit for
2nd–5th years

Contracted future
recurring gross profit
3rd yearContracted future
recurring gross profit
2nd yearContracted future recurring gross profit not recorded on financial statements

Recorded profit
1st year
1st year

2nd year

3rd year

4th year

5th year

Total for 2nd–5th years

15

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Long-Term Course for After the COVID-19 Pandemic

MESSAGEIn the face of a crisis, our long-term perspective prompts us tointangible operating receivables in the FinTech segment moving

view the crisis as an opportunity to reflect on our founding spirit,

to surpass land, stores, and other tangible assets in the Retailingreexamine the essence of the value we provide, and redefine thissegment. As such, the graph represented the FinTech segment

essence based on the changes in the opportune environment.

replacing the Retailing segment, which had been our growth

We take this proactive approach in place of passive approaches

driver since our founding, as the new primary growth driver.

such as waiting for the crisis to pass or drafting policies for

Total intangible assets exceeded total tangible assets in theminimizing its impacts. MARUI GROUP was faced with a man-fiscal year ended March 31, 2019 (see Figure 2). Moreover, theagement crisis that persisted from 2007 to 2014, and we contin-amount of intangible assets on March 31, 2020, was 7.6 times

ued to redefine the Company throughout this period.

higher than five years earlier and double the amount of tangible

Business model

1931 (founding) ~2006 ~

2019 ~

Labor intensive

Capital intensive

Retailing driven

FinTech driven

Intellectual creation
Retailing, FinTech, and
Co-Creative Investment

AssetsFixed assets

Financial assets

Intangible assets

Investment

Investments in tangible assets

Treasury stock acquisitions

Investments in intangible assets

I would now like to discuss how we redefined MARUI GROUP

assets (see Figure 3). These figures are a result of investments inand the company we aim to become in the face of the unprec-

stores declining following the shift to fixed-term rental contracts

edented crisis of the COVID-19 pandemic. This vision can bewhile we ramped up investments in software, human resource

To this end, we are developing a new business model integrat-

anime movies, and these investments contributed ¥4.3 billion

consolidated into two ideas: evolution into an intellectual cre-development, research and development, and new business fields.

ing retailing, fintech, and now co-creative investment (see pages

to consolidated operating income. Based on these results, weation company and growth of corporate value through harmony

Software investment is rising in conjunction with the growth of the

32–47) and seeking to generate synergies between these areas

recognize that these efforts have generated significant returns

between the interests and happiness of stakeholders.

FinTech segment. We have continued to increase investments into create value that is greater than the sum of its individual

through synergies with our main business.

human resource development and research and development,

constituents. To MARUI GROUP, co-creative investment is like a

Other B-side investees include anime-related e-commerce

Evolution into an Intellectual Creation Company

although these investments are not clearly apparent on our finan-

vinyl record, having an A-side and a B-side. The A-side is growth

retailer A-too inc., sustainability companies Minna-denryoku, Inc.,

One of the megatrends to which MARUI GROUP is paying thecial statements as they are treated as expenses. Human resource

support investment, which entails investing in venture compa-

and Nature Innovation Group Co., Ltd., and new business com-

greatest attention as it charts its future course is the shift frominvestments are an area of particular focus, especially when it

nies that share our philosophy and vision and with which we canpany tsumiki Co., Ltd. We intend to conduct investments intangible assets to intangible assets. Intangible asset holdings

comes to fostering IT staff, seconding employees to venture

collaborate. To these venture companies, we provide access toventure companies that are not anticipated to make an initial

grew to surpass tangible asset holdings in the mid-1990s incompany investees, and cultivating future leaders. As for invest-

MARUI GROUP’s resources, namely its stores, staff, and EPOS

public offering and in listed companies in cases in which syner-

the United States and in the United Kingdom in the early 2000s.

ments in new business fields, we have invested a total of ¥15.7

cardholder base, and pursue collaboration to drive growth at thegies can be expected. As one specific new investment, we com-

Intangible asset holdings are set to exceed tangible asset holdings

billion, primarily in venture companies, over the past four years.

investee and in our investment returns.

menced a capital and business alliance with TSUKURUBA Inc.,

Specific investees include e-commerce companies like BASE,

in Sweden and Finland as well. In Japan, meanwhile, intangible

Based on these factors, I would now like to discuss the course

asset holdings are only around half of tangible asset holdings, a

we will be taking going forward. Since its founding, MARUI GROUP

Inc.; direct-to-consumer (D2C) brands such as FABRIC TOKYO

Our projection for overall investments going forward given thelevel similar to that seen in Italy and Germany. Moreover, the com­has continued to grow through a business model driven by retail-Inc. and BULK HOMME Co., Ltd.; and financial inclusion compa-

current situation is that investments in existing businesses willbined market capitalization of intangible asset leaders Alphabet

ing. Retailing is a labor-intensive business centered around tangible

nies Gojo & Company, Inc., and CROWD CREDIT, Inc. The internal

decline while co-creative investments nearly double (see Figure

Inc.; Amazon.com, Inc.; Facebook, Inc.; Apple Inc.; and Microsoft

assets and investments in said assets. However, this all changed

hurdle rate for investment decisions in venture companies is to5). This projection is based on the assumption that core operat-

Corporation is estimated to be higher than the GDP of Japan.

with the launch of EPOS cards in 2006, after which our fintech

maintain an overall internal rate of return (IRR)* of 10% or more.

ing cash flow will increase by roughly 20% over the five-year

operations became the main proponent behind our growth. Fintech

Currently, we are seeing IRR of 30% on an individual investee

period beginning with the fiscal year ending March 31, 2022.

the financial results briefing for the fiscal year ended March 31,

is a capital-intensive business in which fund procurement is pri-basis, and our success rate in these investments is around 30%.

As for shareholder returns, share buybacks will be cut roughly in

2016, which coincided with the launch of our medium-term

marily performed through debt. Going forward, we intend to further

We aim to raise this success rate though co-creation to achievehalf while dividends double. We have already achieved the goals

management plan four years ago, we showed a graph describing

promote the shift to intangible assets to evolve into an intellectual

an overall IRR for all investments of more than 10%.

of the medium-term management plan of posting return on

MARUI GROUP’s business structure reforms. This graph showedcreation company and heighten our corporate value (see Figure 4).

Figure 2: Amounts of Investment in Tangible and Intangible Assets

Figure 3: Breakdown of Investments(Billions of yen)(Billions of yen)

MARUI GROUP is leaning toward the intangible asset side. At

Intangible assets¥15.0 billion

15

Intangible-to-tangible-asset ratio

0.3
1.7¥7.3 billion

Investments inintangible assets

7.6 times

FY2008FY2019 FY2020

Figure 5: Future Investment Projects
ROE

Cost of shareholders’equityROE: 10% or more

new businesses entailing superior intangible assets, we aim to

ROIC

WACC

IRR

synergies through collaboration with such investees. Returns on

3.2

Human resource
development /R&D

ings contributions to our main business.

3.1

Softwarebusiness. This new business was launched four years ago whenthese investments are anticipated to come in the form of earn-

ROE

New businesses: ¥30.0 billion

Co-creative investment

Existing businesses:¥60.0 billion

Existing businesses

The first B-side “song” has already been released: our anime
Dividends: ¥50.0 billion

we participated in the production committee for a major anime
9.2

Investments intangible assets

20.6% lower
0

invested capital (ROIC) exceeding weighted average cost ofsynergize with our main business. By investing in companies andNew businessfields8.7

Tangible assets

5

a renovated housing distribution platform holder, in July 2020.

incorporate these assets into MARUI GROUP. We will also pursue

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

The B-side of co-creative investments is investments that

2.0 times

20

16

Figure 4: Accumulation of Intangible Assets to Evolve into an Intellectual Creation Company

FY20157.3

FY2020Storesmovie, which led to investment and various collaborative ventures. Over the period from encompassing the fiscal years ended
March 31, 2016 to 2020, we invested a total of ¥120 million in

Dividends

Share buybacks:¥60.0 billion

Share buybacks

Current medium-term
management plan
April 2016 ~Next medium-term
management plan
April 2021 ~17

M

Figure 6: Theoretical Radar Chart of Interest and Happiness Value Sought by Stakeholders

MESSAGE

Customers

Investors

Business partners

Communities and Society

Employees

Future generations

Another change that was made was to our definition of corpo-

a rich, pristine natural environment. There is almost no concern

rate value. Specifically, we added one word to the definition offor monetary interests with regard to this stakeholder group.

corporate value put forth in Co-Creation Management Report

Based on this view, we came to realize that a focus on

2017. This word was “happiness.” We have previously defined

responding to stakeholder expectations through monetary

corporate value as “harmony between the interests of all stake-interest would overemphasize shareholders and that otherholders,” but this definition was revised to be “harmony between

stakeholder groups could be thought to be largely concerned

the interests and happiness of all stakeholders.” The idea ofwith value other than monetary interests. We dubbed this value

focusing on both interests and happiness came to mind as“happiness.” However, I do not believe that the interests andwe sought means of co-creation with stakeholders.

happiness of stakeholders are disconnected. At MARUI GROUP,

On the topic of stakeholder capitalism, for example, polls have

we seek to contribute to both interests and happiness, asthat roughly 60% of millennials expect companies to prioritize theopposed to sacrificing one for the other. This is because theresolution of social issues above the pursuit of profit. The desire

two are actually connected.

for companies to focus on resolving social issues as opposed toLet’s look at it this way: if we can contribute to customer

just generating profit is probably shared around the world. In thehappiness through the provision of experiences that enrich theirbackground of this desire, no doubt, lies the fact that shareholder

lives, it will increase the lifetime value of our business and in turncapitalism, which urges companies to maximize shareholder

heighten the motivation of employees. When these motivatedreturns, widens income gaps, destroys the global environment,

employees work to tackle social and environmental issues

and causes indescribable senses of suffering and isolation to thethrough our business, it will boost the happiness of communities

people in developed nations who are supposed to be receiving theand society and future generations while also contributing to thebenefits of this approach.

interests of the business partners that are our co-creation part-

Looking back at our six groups of stakeholders from thiscomes to ESG factors, which are linked to the interests of

expected by shareholders were likely to be almost inconsequen-

shareholders.

Previously Ignored Value

tial to other groups of stakeholders. We therefore formulated a

Monetary Interests

Non-Monetary Expectations = Happinesstheory to be used in discussing this matter with stakeholders.

If we so desire, we can strengthen this link to make further

Affordable products, higher wages, tax payments,
donations, dividends, and other monetary returns
expected by stakeholders

Fulfilling lifestyles, work motivation and empowerment,social issue resolution, bountiful and beautiful nature, andother happiness that cannot be expressed monetarily
representing the majority of desired value

Along with this theory, we prepared a radar chart that indicatedcontributions to the interests and happiness of stakeholders.

Previously Emphasized Valuethe expected degree of concern for monetary interests among
now like to discuss our interpretation of this chart.

between the interests and happiness of all stakeholders. I look

capital (WACC) and return on equity (ROE) surpassing cost of

stakeholders: customers, investors, business partners, commu-

governance (ESG) factors tells us that investors are not solely

shareholders’ equity. Accordingly, we will be working toward

nities and society, and employees. Later, “future generations”

concerned with monetary returns. Therefore, if we seek to fullyincreased corporate value going forward by targeting ROE of

was added to this scope as a sixth group of stakeholders inmeet the expectations of investors, we will be unable to do so if

10% or more and an IRR that is above that level.

conjunction with the publication of VISION BOOK 2050 in 2019.

we focus only on monetary interests.

Growth of Corporate Value through Harmony between theInterests and Happiness of All Stakeholders
Stakeholder capitalism is gaining attention as a new approach tocorporate management to replace the conventional approachof shareholder capitalism. The definition of corporate value
MARUI GROUP put forth in its Co-Creation Management Report2016 constituted a declaration of our commitment to stakeholder capitalism. At the time, we only defined five groups of

The realization that future generations was also an importantCustomers, similarly, do not only want quality products andgroup of stakeholders arose when examining potential initiatives forservices that can be bought at more affordable prices. They also

addressing environmental issues. It was the work of 20th-century

have an increasing desire for these products and services to

U.S. genius Richard Buckminster Fuller that led me in this direction.

provide experiences that enrich their lives. Employees are theFuller defined wealth as the number of forward days we are physi-same; they don’t just want higher wages, but also to be moti-

cally prepared to sustain for future generations. This definitionvated in their work. For business partners, transaction conditions

made me aware of the fact that future generations were indeed theare important. However, they also seek partnerships in whichstakeholders we served by addressing environmental issues.

both parties help each other in times of need and grow by tack-Reading Lounge—Engaging with Books(Book Recommendations by President Aoi)
#001 Operating Manual for Spaceship Earthwww.0101maruigroup.co.jp/en/ir/lib/book/001.html

With this, I would like to conclude this discussion of how wewill pursue the growth of corporate value through harmony

recent rise of investment focusing on environmental, social, andMore information can be found in the video explaining the financial results
briefing for the fiscal year ended March 31, 2020. For details, please refer
to “3. Future Developments.”
www.0101maruigroup.co.jp/en/ir/lib/result.html

In this manner, stakeholder interests and happiness are linked.

each of the six groups of stakeholders (see Figure 6). I would
Investors, of course, expect monetary returns. However, the18ners. This process will also improve our scorecard when it

perspective, we could not help but feel that the monetary returns

ling challenges together. For communities and society, it is notenough to simply pay taxes or make donations; people wantcompanies that help resolve community and social issues.
Future generations, meanwhile, primarily need us to leave themforward to co-creating with you as we march toward this longterm target.

September 2020

Hiroshi Aoi
President and Representative Director
Representative Executive Officer, CEO

The president’s message from Co-Creation Management Report 2019 can befound below.
MARUI GROUP’s Desire to Join Hands in Co-Creating Value for the Future(fiscal year ended March 31, 2019)www.0101maruigroup.co.jp/en/ir/message/ceo/2019.html

19

D

DIALOGUE 01

New Normal for Companies andSociety Amid the COVID-19 Pandemic
The global COVID-19 pandemic is causing massive change the likes of which we have not seen before.
This upheaval has given rise to the concept of a Great Reset, which would signify the start of a new chapter for our economy.
MARUI GROUP President Hiroshi Aoi sat down with Taejun Shin, who was selected to be a Young Global Leader 2018
by the World Economic Forum, to discuss what should be the new normal for companies and society after this Great Reset.

Resilience of Microfinance Industry

the local people you were financing through your business.
Shin: The traditional customers for microfinance services are

Aoi: You announced a scenario analysis pertaining to thegenerally not affected by natural disasters or other disruptions.

COVID-19 pandemic back in March 2020. It was amazing how

In Japan, supermarkets and convenience stores were not signifi-

you were able to accurately assess and analyze the situationcantly impacted when the government issued its state of emer-

and create a forecast scenario back at that time. How did you

gency declaration. Similarly, microfinance customers tend to

go about doing this?

operate businesses providing items indispensable to daily life in

Shin: I turned my ear to the experts I trusted to have the informa-

their respective economic spheres, and I therefore figured thattion I needed. First, I talked to infectious disease specialists andthey would be fine. However, the lockdowns were an unprec-

read their reports to form an estimate about how long the cur-edented occurrence, and the outlook was initially quite opaquerent situation would continue.

accordingly.

Then, I spoke with economists and business operators andAoi: People who have been in microfinance for a long time, ofconsidered what actions should be taken. So far, almost every-

course, understand how to think about their customer base andthing has progressed in line with the scenario I envisioned, whichrisks, but these matters are difficult to comprehend for laypeople.

is an incredibly lucky turn of events from the perspective of

Shin: You are right. One of our directors is a world-renowned

management.

microfinance researcher. At a meeting shortly after the start of

Aoi: I see. I am surprised to hear that you spoke with infectious

the pandemic, I remember them saying that we had nothing todisease specialists first, as opposed to economists. It would

worry about because microfinance was a resilient industry.

appear that your approach toward gathering information differsfrom that of other people.
Shin: I figured it would be pointless to talk to economists before

Interpersonal Connections Prerequisite to the
Meaningfulness of Data

they had time to formulate their own projections. I am involved in20

the World Economic Forum and various other organizations, andAoi: We had a similar episode at MARUI GROUP. At the financial

I am constantly reading English-language materials from aroundresults briefing for the fiscal year ended March 31, 2020, inves-

the world. Accordingly, I was able to guess, to a certain degree,

tors voiced concern that, as our customer base was relatively

what the key points regarding this issue would be. Also, it would

young, we were at risk of many of these customers defaulting on

appear that I am strong under pressure. In February and March

their accounts. This concern was based on the preconception

2020, while other start-ups around the world were wrought withthat younger people are inherently riskier and that low-income

concern, I was hurriedly preparing projections.

individuals have less creditability. The fact of the matter, how-

Aoi: Being strong under pressure is a common trait among

ever, is that the ratio of delinquent debt for customers in theirentrepreneurs. What were you most concerned about back in

20s and 30s is slightly lower than that for customers in their 40s

February and March?

and 50s. Under Japan’s state of emergency declaration, people

Shin: My first priority was to secure three years’ worth of capital.

could not leave their homes much, meaning that they had less

I was somehow able to procure an additional ¥2.0 billion during

opportunities to spend money. However, even under thesethe first month, but this period was wrought with anxiety. I guess

circumstances, we predicted that younger people would be

the pressure brought out my true strength.

unable to live without borrowing money. MARUI GROUP’s busi-

Aoi: I also suspect that you had concern for the credit risks ofness takes place in a corner of the financial sector that differs

Taejun Shin

Hiroshi Aoi

Co-Founder, Representative Director & CEO
Gojo & Company, Inc.

President and Representative Director
Representative Executive Officer, CEOMARUI GROUP CO., LTD.

21

D

DIALOGUE 01

I think the microfinance sector is currently in the best place it will be
for the next decade. I am confident that we will not see the emergenceof a strain of microfinance in which everything is digitized and there
are no interactions between real people.
Taejun Shin
Co-Founder, Representative Director & CEO
Gojo & Company, Inc.
Born in Tokyo in 1981, Taejun Shin worked in private equity investment at Morgan Stanley Capital K.K. andUnison Capital, Inc., for eight years before co-founding Gojo & Company, Inc., in 2014. At this company, he is
responsible for corporate management, fund procurement, investment, and other areas of general operation.
While working in the financial sector, Shin founded Living in Peace in 2007 (he retired from the position of
director of this organization in 2017). Through Living in Peace, he conducted microfinance surveys andsupport and offered aid to children receiving social welfare and to refugees in Japan. He has graduated fromthe School of Law at Korea University and the Graduate School of Finance, Accounting and Law at Waseda
University and has also been chosen as one of the Global Shapers of the World Economic Forum.

Shin: I think the microfinance sector is currently in the best placeinvesting in start-up companies four years ago. From this expe­

it will be for the next decade. I am confident that we will not see

rience, I realized that the divide between large companies andthe emergence of a strain of microfinance in which everything isstart-up companies is even more clear than I had imagined.

digitized and there are no interactions between real people. At

It took some time before we were able to fully enter into thethe moment, one-third of people in developing countries arestart-up community.

illiterate. The same goes for our customer base. For this reason,

Shin: Empathy is essential to providing customers with quality

we cannot simply tell a customer to go download a smartphoneservices, and also, I believe, to the co-creation management ofapp; they need someone to sit down next to them and explain

MARUI GROUP advocates, and is therefore imperative to thethings. What microfinance needs are services that effectively

prosperity of companies. One’s empathy is linked to their experi-

combine the value that only people can provide with the pro-ences and imagination. There is a lot we can learn from experi-

cesses for which technological substitutes exist.

ence. I think it is important to share experiences with the people

Aoi: That is an interesting take. We cannot rely on technology forwhom we do business with. For this reason, I have stayed at the

everything, but if we do everything by hand, we will not be able tohouses of customers in developing countries and at child wel-stay in business. What we need to do is find the best way tofare institutions in Japan. There is a lot of valuable insight to be

combine the two.

gained in this manner.
Aoi: Imagination is, of course, important. But I think it is the real

Shin: That is a difficult question. When the Plague spread duringaware of the need to further promote understanding of this fact.

the Middle Ages, there were some areas where theaters were

Shin: Japan tends to evaluate people primarily based on how

shut down for a decade. However, even after the disease hadlong they have been at a company, and this view can makeclaimed the lives of one-third of the population, these theaters

Aoi: The COVID-19 pandemic could be said to have given us ayounger people seem risky.

still eventually reopened their doors. I see this as indicative ofchance to reset our current society. If start-up companies andAoi: Seeking to assign credit ratings based on outward charac-

people’s undefeatable desire to gather. This inherent desire to

future generations take the lead going forward, I think we canteristics is a bad habit of the traditional financial sector. Younger

gather and engage with other people is strong, and I suspect

shape a new economy and society.

people generally only lack income and assets because they are

there are some areas that will not change as a result. Conversely,

Shin: I anticipate that we will be seeing changes that have been

still young, and that situation will thus change with time. The

I anticipate that even large, very traditional companies willneeded previously but have not yet occurred. These changes,

idea that younger people lack creditability is an oversimplifica-

embrace change to improve efficiency through means such as

however, cannot be achieved purely by start-ups; we will needtion. Creditability is not something to be bestowed on people; itholding all meetings online.

help from larger companies.

is something to be built together with them over a long period

Aoi: The spread of digital transformation should allow pretty

Aoi: I hope to help build a world in which there is no need toof time. That is an approach to finance that I hope to spread.

much everything to be done online. One cannot help but wonder

separate one’s hobbies from one’s work. In this world, it will be

Shin: That is the reason why, in the microfinancing field, we also

what exactly will remain purely in the offline sector. We might

possible for what you love to become your job and for that tostart with low amounts. As we have no past transaction histories toconsider how attendance at outdoor events has continued to

become a feasible business if you can connect with a fan base

go by, we start by basing finance on interpersonal relations, such as

grow over the past decade. What is your view on the meaningful-around the world via the internet. If we can build such a world,

extending finance to associates of the village mayor. We realize thatness of offline engagements?

it will no doubt help countless people realize self-actualization.

there are a lot of people who are unable to receive financing due to

Shin: Currently, digital technologies can only stimulate two of ourLarge companies in Japan tend to feel strongly that they need to

outward characteristics. Accordingly, we look to build trust throughfive senses: sight and hearing. We cannot experience smell,

drive innovation themselves. For this reason, it is not uncommon

a cycle of financing and repayment over an extended period.

touch, or taste through online undertakings. Personally, I havefor their open innovation efforts to end in investment and fail to

Aoi: If you watch someone over time, data will begin to take on

attended the FUJI ROCK FESTIVAL, an outdoor music event, for

produce anything substantive.

meaning through their actions. It is only when combined withnine straight years. There are two reasons why I attend. The first

Shin: It is true that there are few companies that are able tosuch intangible factors as interpersonal relationships that datais that, as people, I think we are only able to fully immerse our-effectively engage in open innovation. At Gojo & Company, we

can exhibit its true meaning.

selves in something when given a space in which to do so. The

are looking to transform ourselves into a tech company. To thissecond is that I am able to immediately share my likes with otherend, we invested in other tech companies and had the manage-people. Until digital technologies are able to stimulate our senses

ment of those companies help us conduct interviews when weof smell and touch, offline engagements will continue to havesought to recruit a chief technology officer. Changes in a com-

Aoi: The COVID-19 pandemic led to the theme of the 2021 World

their purpose.

pany are driven by changes in its people. Recognizing this, we

Economic Forum summit to be set as “The Great Reset.” It can

Aoi: Being truly moved by something and sharing the experience

invested in finding human resources that existed outside of thetherefore be expected that many things will or must change.

requires our five senses and a physical dimension. Offline venues

networks for our current staff.

How do you view this situation, Mr. Shin?

might be ideal for fulfilling this need.

Aoi: That story makes things easy to understand. We began

Undefeatable Desire to Gather

22

New Economy and Society to be Shaped by
Future Generations

from conventional businesses. This experience thus made metactile aspects of experiences—the sights, smells, touch, howpeople breathe, the temperature—that really make an experiencestick.
Parts of this conversation that were not included in this report are available
on MARUI GROUP’s community site (Japanese only).
www.to-mare.com/tf/

In this world, it will be possible for what you
love to become your job and for that to becomea feasible business if you can connect with a
fan base around the world via the internet.
Hiroshi Aoi

23

MARUI GROUP’s
VisionMARUI GROUPʼs

CO-CREATION PHILOSOPHY

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 Aspirations

Our Principles

MISSION

PHILOSOPHY

Contribute to co-creating a flourishing andinclusive society that offers happiness to all

Continue evolving to better aid our customers

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 aguide, inspiring them to reflect on whether their actions and decisions are contributing to the fulfillment of themission, even in times of uncertainty.

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 tobetter 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 to understand theirthinking and their pain. The ongoing evolution of this capacity for empathy gives rise to the propensity 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 our company” is founded on the belief thatMARUI GROUP’s growth is achieved when our people realize self-actualization through empathy and innovation.

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

VALUES
Creditability should be built together with customers
Pioneer spirit of creating opportunities

directives for the concerted efforts to be advanced by all Group members as they ascertain changes in the

MARUI GROUP’s values are the unique principles of the Company that differentiate it from all others, theoperating environment. We believe that a vision and long-term targets are essential for a company to remain true

precious founding spirit that will perpetually permeate our organization. The concept of co-creation of

to its mission and values as, no matter how righteous a mission or values may be, they will still need a guide to­creditability—based on the belief of MARUI GROUP’s founder that “creditability should be built together withclarify priorities for advancing business strategies.

customers,” rather than assigned to them—is the belief that credit should be forged through trust over long-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 andevolution, which propels us forward as we transform our business and create new demand and markets in
response to changes in customer happiness or in society.

24

25

MARUI GROUP’s
VisionDefinition of Corporate ValueMARUI GROUP practices co-creation management with the goal of co-creating happiness together with our stakeholders. MARUI GROUP’s various stakeholders include customers, business partners, investors, communities andsociety, and employees. When formulating its long-term vision for 2050 in 2019, MARUI GROUP included “future
generations” alongside the prior five rings of stakeholders it emphasized. The introduction of this sixth ring of stakeholders is a declaration of MARUI GROUP’s belief that true corporate value entails looking beyond the short-term
happiness of current generations to promote harmony and the expansion of the intersection between the interestsand happiness of all stakeholders, including future generations.

Vision of Co-Creation Management
MARUI GROUP’s mission incorporates cherished values such as happiness and inclusion. Moreover, thismission is differentiated from that of our peers through the co-creation that is characteristic of MARUI GROUP.
Our concept of co-creation originates from the co-creation of creditability that was advocated by our founder.

Customers

We refer to the practice of shaping our business based on this spirit of co-creation as “co-creation management.” MARUI GROUP is, of course, focused on the co-creation of happiness. At the same time, we seek to go
further to share the burden of the COVID-19 pandemic with our stakeholders and strengthen our bonds aspartners growing together. This is co-creation management in its truest form and is also the path we will taketoward overcoming this crisis.

Business
partners

Investors

Interests and Happiness
The value sought by stakeholders includes interests that can be measured monetarily. Such interests include
employee wages, shareholder dividends, product prices, and costs for business partners. These interests canHarmonization of
stakeholder interestsand happiness andexpansion ofintersection

sometimes appear to be in conflict when viewed from a short-term perspective. At the same time, stakeholders seek a value that cannot be measured monetarily—happiness. The types of value sought by stakeholders
sometimes fall into conflict with one another. However, we are confident that it is possible to achieve harmony
and expand the intersection between the interests and happiness of all stakeholders through dialogue andco-creation advanced over the medium-to-long term. As we move forward, we will formulate theories on typesof interests and happiness desired by all groups of stakeholders to be incorporated into indicators for evaluating the effectiveness of management.
P18 Growth of Corporate Value through Harmony between the Interests and Happiness of All Stakeholders

Communities
and Society

Employees

View of Partnership

Futuregenerations

MARUI GROUP views its stakeholders as partners in its quest to co-create happiness for the future. In the faceof the COVID-19 pandemic, we could not help but feel the strong interdependent relationship between people
and society that was not previously apparent. Following the institution of a state of emergency declaration in
Japan, we were forced to suddenly halt the operation of our stores. This placed the business partners thathave set up shop in our stores in a difficult position, pressing us with the need to decide whether to prioritize
contractual obligations, specifically rent payments, or partnerships. We quickly realized that it was our partner-

Corporate value

Intersection of interests and happiness of all stakeholders

ship with these business operators that supported MARUI GROUP. This intangible partnership founded ontrust is what underpins co-creation at MARUI GROUP.

Harmonization and expansion of intersection

26

Improvement of corporate value

27

MARUI GROUP’s
VisionInnovation and Evolution of Business ModelIntellectual Creation Business Driven by Co-Creative Investment (2019 ~)We have continued to evolve and innovate MARUI GROUP’s distinctive business model, which merges retailing andThird president: Hiroshi Aoi (16 years of service)finance, in response to changes in the times and customer needs. Looking back at this history of innovation and

As MARUI GROUP’s capital-intensive fintech operations grew, the Company proceeded to invest in cultivating its IT staff while also

evolution, it is apparent that this was not a linear process. Rather, sudden innovation and evolution was achieved only

directing investment toward D2C brands, start-up companies, and new business fields. This co-creative investment has come toafter we had first abandoned the methods that had led us to success previously. The belief that creditability should

stand alongside retailing and fintech as a third pillar of MARUI GROUP’s business model. We have thus embarked on management

be built together with customers and the pioneer spirit of creating opportunities advocated by MARUI GROUP’s

aimed at developing an intellectual creation business through investment in intangible assets in order to create value that isgreater than the sum of its constituents by pursuing synergies between these three pillars.

founder mirror the course of the evolution and innovation of MARUI GROUP’s business model.

Business model

2019
2019
~ ~

1931 (founding) ~2006 ~

Labor intensive

Capital intensiveIntellectualIntellectual
creation*creation*

Retailing driven

FinTech driven

Retailing,
Retailing,
FinTech,FinTech,andand
Co-Creative
Co-Creative
Investment
Investment

AssetsFixed assets

Financial assets

Intangible
Intangible
assetsassetsInvestment

Investments in tangible assets

Treasury stock acquisitions

Investments
in intangible
assetsInvestments
in intangible
assets

FY1991
Achieved peak performance
EPS: ¥103.2
1960
Issued first credit card in Japan

FY2015
Stabilized earnings structures of stores
EPS: ¥58.9

FY2007
Revision of Money Lending Business Act
EPS: ¥12.9
FY2006
Began issuing EPOS cards
EPS: ¥70.4

1966
Introduced industry’s first computer

FY2009Recorded first loss due in partto financial crisis of 2008
EPS: –¥31.9

FY2018
EPS: ¥93.2

FY2011
Recorded second loss
Commenced massive businessrestructuring
EPS: –¥86.4

Earnings per share (EPS)1931
Founding

Fiscal year
ended
January 31,
1980

Fiscal year
ended
January 31,
1990

FY2020Transition to digital native stores
EPS: ¥117.6
FY2019
Entry into securities business
EPS: ¥116.0(First record high in 28 years)

Fiscal year
ended
January 31,
2000

Fiscal year
ended
March 31,2020

Capital-Intensive FinTech-Driven Business (2006–2018)

Labor-Intensive Retailing-Driven Business (1931–2005)

28

FY2021Development of co-creation ecosystemthrough co-creative investment
EPS: ¥130 or more (target)

1931–1972

1972–2005

2005–Present

Founder: Chuji Aoi (41 years of service)

Second president: Tadao Aoi (33 years of service)

Third president: Hiroshi Aoi (16 years of service)

MARUI GROUP’s business initially involved selling furniture through monthly installment payments. Furniture in those days was exceptionally expensive, meaning thatsome people lacked the on-hand funds necessary to purchase furniture. We soughtto accommodate these customers by selling them furniture while at the same time
providing them with credit. By lending money through monthly installment payments,
we developed a business merging retailing and finance.

Income levels in Japan rose during the period of the Japanese economic miracle,causing the need for credit sales of durable goods to decline in the 1980s and leading
other stores using the monthly installment payment system to abandon retailing tofocus on finance. MARUI GROUP, meanwhile, turned its attention to the growing fieldof fashion. By providing credit to younger generations, we were able to include thispreviously neglected demographic and to innovate our business model merging
retailing and finance without abandoning the retail side.

After partnering with Visa Inc. to transform its prior in-house credit cards into
multipurpose EPOS cards usable anywhere in the world, MARUI GROUP continued todevelop its business model merging retailing and finance, but with finance replacing
retailing as the main proponent of growth. The Company would later redefine its
credit card business as a fintech business with the goal of providing financial services
for everyone in response to the diversification of payment methods that accompanied the trend toward cashless payments.

Customers

New families

Customers

Younger generations

Customers

All ages (everyone)

Products

Furniture, consumer electronics, and other durable goods

Products

Fashion

Products

Lifestyle proposals

Credit cards

Japan’s first credit card

Credit cards

Akai Card (Red Card) in-house credit card

Credit cards

Multipurpose EPOS card

StoresMonthly installment payment stores

StoresDepartment stores

Stores

Shopping centers

Fiscal year
endingMarch 31,
2021

* Investments in Intangible Assets Surpassing Investments in Tangible Assets
In the past, MARUI GROUP was primarily a retailer with financial functions with its credit
cards serving to prop up its stores. Accordingly, tangible assets, such as the land andstores of its retailing operations, exceeded credit card operating receivables on the
Company’s balance sheet. However, this changed with the launch of EPOS cards in 2006.
After this, card shopping transactions rose sharply, and credit card operating receivables
came to surpass noncurrent assets in the fiscal year ended March 31, 2014. The transition
to fixed-term rental contracts commenced in the fiscal year ended March 31, 2015, caused
a decline in investments in stores and other tangible assets, while investments in fintech
operations, co-creative investments in new businesses, and investments in humanresources continued. As a result, investments in intangible assets surpassed investments
in tangible assets in the fiscal year ended March 31, 2019.
Intangible assets¥15.0 billion

Tangible assets¥7.3 billion

FY2008FY2019 FY2020

29

MARUI GROUP’s
VisionCo-Creation Ecosystem

MARUI GROUP’s Goal

MARUI GROUP aspires to contribute to shaping a world that transcends dichotomies and thereby help build a flour-

A flourishing and inclusive society that offers happiness to all

ishing and inclusive society that offers happiness to all. In this quest, we aim to develop a co-creation ecosystemthrough our business that extends across society and around the world. Having updated the business merging
retailing and finance that we have advanced since the Company’s founding to merge retailing, fintech, and co-creative investment centered on investments in intangible assets, we will go about developing this ecosystem throughco-creation with our six groups of stakeholders, including future generations.

Earth

Society
Co-Creation Ecosystem
MARUI GROUP’s Founding Spirit
Words of Founder Chuji Aoi“Creditability should be built together with customers”
Unique business model merging retailing and financeFood

Housing“Pioneer spirit of creating opportunities”
Adeptness at evolving and creating innovation in response to the needs of the times

Clothing

Co-Creative
Investment

Retailing

30

Finance

Retailing

FinTechCo-Creation of Creditability

Co-Creation of Creditability Encompassing Future Generations

Merging of Retailing and Finance

Merging of Retailing, FinTech, and Co-Creative Investment

Co-Creative
Investment

Retailing

Entertainment

FinTechCo-Creation Ecosystem Extending Across Society and Around the WorldPut simply, what makes MARUI GROUP unique is its business model

The business model transformation undertaken in 2006 has enabled

MARUI GROUP is working to develop a co-creation ecosystem through its business that extends across society and aroundmerging retailing and finance based on the concept of the co-creation

MARUI GROUP to build an earnings foundation grounded on consistent

the world by means of co-creative investment founded on the principles of co-creation management it has practiced thus far.

of creditability. This fundamental business model has not changed

cash flows. The FinTech segment has continued to enjoy ongoing

This endeavor encapsulates our desire to create an inclusive ecosystem that offers happiness to all together with stakeholders.

since our roots in selling furniture on monthly installment payments.

growth in EPOS card transactions while the Retailing segment shifted

This ecosystem should go beyond simply supporting the growth of MARUI GROUP; it should encompass all aspects of our life-

By setting credit limits lower than other companies, we have been able

away from its prior consignment sales-based department store busi-styles, including clothing, food, housing, and entertainment. A society in which happiness is only available to certain people cannot

to provide financial services to a wider range of customers, enabling

ness model to a rent revenue-oriented real estate model. Given thisbe said to be flourishing. It is only when happiness is offered to everyone that a society can truly flourish.

them to enjoy shopping as we build creditability together based on their

grounding, we are confident that our new business model merging

The realization of the co-creation ecosystem we envision will require co-creation with MARUI GROUP employees as well asusage patterns. Rather than being satisfied with the one-time relation-

retailing, fintech, and co-creative investment, in D2C brands, start-up

with customers, business partners, investors, communities and society, and future generations. We invite everyone who sharesships formed by cash transactions, we have sought to forge ongoingcompanies, and other candidates, is the model to which MARUI GROUP

our ambition and whose values resonate with our vision to join hands with us to bridge the gap between current generations andrelationships through the co-creation of creditability.

has aspired.

future generations to shape a society in which future generations can soar.

31

ThreeMARUI GROUP’s

BUSINESSAs a responsible member of society, MARUI GROUP takes steps to resolve social issues while improving­corporate value. Our approach to this task entails identifying the social issues to be addressed from thegenerate value that is greater than the sum of its constituents.

ourselves with comrades sharing our vision and to pool our strengths and generatesynergies as partners for co-creating a happier future. Our co-creative investment is
structured like a vinyl record, with an A-side and a B-side. The A-side is growth
support investment, where we invest in venture companies that share our philosophy and vision and with which we can collaborate. On this side, we conduct investments as a form of support for providing the resources that future generations, who

OIOI CO-

ID

value—the co-creation of creditability. By pursuing synergies through this business model, we aim toapproach, which targets investment returns and dividends. We rather seek to ally

IVE A- S

third pillar of co-creative investment along the prior pillars of retailing and fintech founded on our core

MARUI GROUP’s view of investment differs from the standard venture capital

EAT

holders. Efforts on this front going forward will be advanced under a new business model that includes the

Vinyl Record Structure with A-Side and B-SideCR­perspective of inclusion and working toward resolutions in our business through co-creation with stake-

CO-CREATIVEINVESTMENT

New Business Model Integrating Retailing,
FinTech, and Co-Creative Investment

Businesses

E

Co-Creation Ecosystem

Co-Creation Ecosystem [ Business ]will be both digital natives and sustainability natives, will need to commercialize their
passions. The B-side is investments that synergize with our main business. Here, weinvest in companies and new businesses entailing superior intangible assets andpursue collaboration to grow the earnings of our respective businesses while
resolving social issues.

Co-creative investment: An experimental venue for creating new future-changing
businesses based on MARUI GROUP’s existing business platform

MARUI GROUP views retailing as being more inclusive than the one-time transactional
relationships that end with the sale of a product in a store. In our retailing business, we
provide customers with experience value while forging ongoing relationships through a

Co-Creative Investment

diverse range of contact points formed via the provision of services that address cus-

A-side: Growth support investment

tomer concerns and issues. The greatest strength of our retailing business is our networkof 23 Marui and Modi stores that are visited by 200 million customers a year. We are

B-side: Investments that synergize
with main businesscurrently in the process of increasing our number of tenants that position stores not as
vessels for selling products but as venues for providing experience value and engaging
Yurakucho Maruiwith customers, such as D2C brands, content providers, and subscription service provid-

RETAILING

Physical Stores That Do Not Sell in the Post-Digital World

ers. We thereby aim to create stores that do not sell and are designed to provide value
unique to physical stores in the post-digital world. Brands with business models centeredon e-commerce are anticipated to be able to raise lifetime value by utilizing physicalstores as venues for engagement.

Retailing

FinTech23 physical storesMore than 7 million
EPOS cardholders

Reliability of MARUI brandCredit expertise

Annual visits by 200 million
customers

Stable financial base

Retailing staff

IT staff

FINTECH
Strategy of Maximizing Share of Household Finances for
Improving Lifetime ValueMARUI GROUP sees fintech as a means of promoting financial inclusion to provide
access to financial services, which were previously limited to wealthy individuals, toeveryone, regardless of their age or income, so that they can use the services they

Co-Creation Platformneed when they need them. This vision has inspired us to continue to practice theco-creation of creditability since our founding. Through this approach, we offer

Approximately 5,000 Group employees with a propensity for innovation and a capacity for empathy

younger people who still have low income credit cards with low credit limits andDirectly operated organizations encompassing everything from IT systems to distribution

proceed to build creditability with them as they continue to use their card and pay
their bills. Currently, our FinTech segment is advancing a strategy of maximizing its
share of household finances. Under this strategy, we provide services that allow
customers to use their EPOS cards to make payments for rent, utilities, and even
investment, which are usually performed through bank account transfers. The goal ofthis strategy is to improve lifetime value by increasing usage amounts while forging
long-term relationships with customers.

32

33

Co-Creation Ecosystem [ Business ]Co-Creative Investment Philosophy
Over the four-year period beginning with 2016, MARUI GROUP conducted a wide variety of growth investments.
These included investments for launching our anime and securities businesses, developing new businesses foraccommodating sharing economies, and financing sustainability and financial inclusion companies to further us

Retailing

Co-Creative
Investment

FinTechCreation of New Businesses
Aimed at Future Generations
Together with D2C Brands

Start of Co-Creative Investment
for Collaborating with Start-Up
Companies and D2C Brands

Collaboration with Co-Creative
Investees to Resolve Social Issues
and Grow Business

It is commonly thought that the retailingindustry is currently facing an exceptionallychallenging environment due to factors
such as population decline and sluggish
consumption. However, I do not agree.
I cannot deny that demand for mass
production and consumption of goods andservices will decline and conventional
retailing business models will cease to beeffective. Regardless, demand for personalized offerings that allow individuals to
express themselves is growing at anaccelerated rate among younger people.
I therefore feel that retailers can enjoy anincredibly prosperous future if they candevelop business models that respond to
this demand for living a fulfilling and happylife. A key ally in developing such a business model will be D2C brands. Whennegotiating store openings with Western
D2C brands, I was struck by how perfectly
they matched the sustainable worldview
that future generations are projected toembrace. Conversely, these brands lacked
experience in operating physical stores andoffering customer service as they primarily
operate online. MARUI is equipped to help
compensate for this deficiency. I am
confident that this partnership will beeffective for creating new businesses forserving future generations.

The co-creation ecosystem we target will
not be developed by MARUI GROUP alone.
Rather, we will build an ecosystem that
extends across society together with future
generations to help ensure the happinessof all stakeholders. Our business model
merging retailing, fintech, and co-creative
investment will be integral to the realizationof this ecosystem. Co-creative investment
in start-up companies and D2C brands is
a new pillar in this model alongside retailingand fintech. This form of investment
employs a model in which we pursue
synergies in our main business throughcollaboration with investees to grow aspartners. We have set the goal of investing¥30.0 billion in new business areas over theseven-year period leading up to the fiscal
year ending March 31, 2023. Smooth
progress is being made toward this goalwith total investments currently at ¥15.7
billion. Venture capital investments by othercompanies are generally aimed purely
at financial returns. MARUI GROUP’s
co-creative investments, meanwhile, arequite different in that they emphasize theextent to which we share the same visionand the feasibility of realizing this vision.
We invite all those interested to join handswith us in growing and evolving while
coordinating with MARUI GROUP’s retailingand fintech operations.

In collaboration with co-creative investees,
we believe it is important to focus on thegrowth of not only EPOS cards but also
new fintech businesses. We recognize that
we are collaborating with companies
engaged in cutting-edge initiatives basedon projected future trends. Even if the value
gained through this collaboration seems
small at first, we anticipate that it will growand blossom in the future. Through ourcollaboration with Minna-denryoku, forexample, we made application for renewable energy, something shown to be inhigh demand by EPOS cardholder surveys,
much easier by allowing customers toregister their card data for this purpose.
By effectively promoting this service,
we aim to help facilitate movements fordrawing attention to environmental issues
across Japan. These initiatives are not justaimed at contributing to society; we also
expect massive returns in terms of profit
as customers increasingly use their
EPOS cards to make various payments.
We will continue to develop services thatare highly convenient for customers going
forward from the perspective of resolvingsocial issues while growing our business.

Masahiro Aono

Masahisa Aoki

Yoshinori Saito

Senior Executive Officer
President and Representative Director, MARUI CO., LTD.
Director, AIM CREATE CO., LTD.

Director and Senior Executive Officer
General Manager, Co-Creative Investment Department
Director, D2C & Co. Inc.

Managing Executive Officer
In charge of FinTech BusinessPresident and Representative Director,
Epos Card Co., Ltd.
Director, MRI Co., Ltd.

toward our long-term vision. Among these investments, we at last successfully commenced co-creative investments
for financing and collaborating with venture companies after a rigorous process of investment for the purposes ofacquiring investment expertise, fostering necessary human resources, and laying other foundations.
In January 2020, we established D2C & Co. Inc. to facilitate full-fledged co-creative investments. This company iscoordinating with MARUI GROUP’s Co-Creative Investment Department to advance the development of a co-creation
ecosystem. The goal of co-creative investment goes beyond simple investment returns to target the generation ofsynergies with partners in co-creating a happier future. Investment candidates are selected based on criteria including vision feasibility, growth potential, and potential synergies.
Over the past four years, we have invested a total of ¥15.7 billion in new business domains. Of this, ¥7.1 billion was
directed toward investments in 20 venture companies. Calculated based on recent market prices, the internal rate of
return (IRR)*1 from these investments comes to 34%, despite the global COVID-19 pandemic, exceeding our internal
hurdle rate of 10%.
*1 Rate calculated using recent procurement prices for applicable marketable securities and based on amounts if listed stocks were to be sold at the end of therespective fiscal year

New Business Field Investments
Fiscal Year Ended March 31, 2020
tsumiki Co., Ltd.
D2C & Co. Inc.

20 Investees

Note: Figures represent rate of
growth from stock prices at timeof acquisition and at recent
procurement timing.

¥1.9 billion¥1.6 billion

4.5 times

More than 1.1 times

Venture companies

4 companies¥7.1 billion

Initial public offering on
September 20, 2019

7.5 times

More than 1.0 times

Funds

Initial public offering on
October 25, 201914 companies(As of May 21, 2020)¥5.1 billion
Less than 1.0 times

IRR 34%

Total ¥15.7 billion
Investment Statistics (Venture companies, etc.)

13 companies—— Number of venture company investees—— Amount of investments in venture companies—— Amount of other investments¥8.7 billion¥6.0 billion

4.9

6 companies

FY2017¥0.6 billion
FY2018Venture companies
Aggregate number ofventure company
investees

Aggregate investments in venturecompanies

2 companies

0.4¥15.7 billion

20 companies*2

3.3

1 company¥0.4 billion

Total aggregate
investments

0.4
0.2

2.7

FY20193.8¥7.1 billion

FY2020*2 As investments were conducted in the same companies in multiple years, the total number of companies invested in differs from the sum of companies from each fiscal year.

34

35

Co-Creation Ecosystem [ Business ]Co-Creative Investment

A

-

S

I

G R O W T H

DE

S U P P O R T

Growth support investment is conducted in venture companies that share MARUI GROUP’s philoso-

Investment

Tenant store opening

Employee secondment

Store locations: Shinjuku Marui Main Building

phy and vision and with which collaboration can be pursued. Investees are provided access to
MARUI GROUP’s resources, including its Marui and Modi stores, which are visited by 200 million
customers a year; its more than 7 million EPOS cardholders; and its seasoned retail staff. Arming
investees with these resources, we collaborate to drive their growth and heighten our returns.
Targets of these investments include e-commerce business operations, D2C brands, and financial
inclusion companies.

Japan Debut of Silicon Valley-Originating b8ta
Experience-Oriented Store
Established in San Francisco in 2015, b8ta (read “beta”) is an experienceoriented store that defines its mission as “retail designed for discovery.”To expand upon its store network, which previously comprised 23
stores in the United States and one in the United Arab Emirates, b8ta
opened two stores in Japan in August 2020, one in the Yurakucho Denki
Building and one in Shinjuku Marui Main Building. These stores employ
retail as a service business model with the aim of making retail moreeasily accessible to everyone. Partnering with b8ta, we hope to build theInvestment

b8ta Tokyo-Shinjuku Marui(located on first floor of Shinjuku Marui Main Building)At b8ta Tokyo-Shinjuku Marui, staff members receive direct training on all exhibited
products from the exhibitor prior to the start of sales to enable them to communicate
with customers based on a deeper understanding of these products. The store is staffedby eight individuals, six of whom are MARUI GROUP employees.

type of value that can only be provided by physical stores by injecting
MARUI GROUP’s resources.

Resources

VentureCompanies

Investment Returns

MAJOR INVESTEESTOPICS

Customer Behavioral Analyses Provided to Exhibitors

Exhibition Spaces Offered on a Subscription Basis

Numerous cameras and sensors have been installed at b8ta TokyoShinjuku Marui to analyze customer behavior. We are thereby able toprovide product exhibitors with information on the number of customers
that stop in front of certain products and the questions posed to staff
members for use in marketing and other strategies.

At b8ta Tokyo-Shinjuku Marui, 40cm × 60cm exhibition spaces are provided
on a subscription basis with contracts as short as six months. These
spaces are used to display gadgets, cosmetics, and other products from avariety of companies. Customers can even take these items in hand.

Establishment of D2C & Co. Inc.
MARUI GROUP established D2C & Co. Inc. in

MESSAGE FROM AN EMPLOYEE 

January 2020 to carry out co-creative investments.
This company will invest in and finance start-up

I have long had an interest in D2C brands and start-ups. I was therefore excited to volunteer to be among the initialcompanies developing D2C brands while capital-

staff members at b8ta Tokyo-Shinjuku Marui, the first store of its kind in Asia. The view of stores as sales floors

izing on MARUI GROUP’s resources to support thenecessarily leads one to focus on sales. In this store, however, we take the role of “b8ta testers,” and it is our job togrowth of these companies through means suchinternalize the passion exhibitors have poured into their products and communicate this to customers so that they can

as customer referral. D2C & Co. will also advance amake new discoveries and have new experiences. Customers’ responses to the products on display are varied, so I

variety of initiatives across D2C-related fields
spanning from physical store opening to operation.
MARUI GROUP hopes to develop a D2C ecosystem

work to collect data that cannot be extracted from the behavioral analyses performed by our cameras. The b8ta store
Press conference held on February 12, 2020

through these efforts.

provides an atmosphere that helps us remember the fundamental reason we enjoy shopping in a manner that is not
emotionally stressful as we spend time with our loved ones amid the COVID-19 pandemic. I think that experienceoriented, digital native stores like this show us the appeal that brick-and-mortar stores can have in the future.

Kumiko Tanabe
b8ta Tokyo-Shinjuku MaruiMARUI CO., LTD.

Please refer to D2C & Co.’s website for inquiries regarding investment
or store openings (Japanese only).
www.d2c.company/

36

37

Co-Creation Ecosystem [ Business ]Investment

Tenant store opening

Employee secondment

Investment

Store locations: Yurakucho Marui

Tenant store opening

Employee secondment

Store locations: Shinjuku Marui Main Building, Shibuya Modi,
Yurakucho Marui, Ikebukuro Marui, and Kobe Marui

Japan’s First Personalized Shampoo Brand
The D2C brand MEDULLA is the first brand in Japan to provide shampoo

Approximately 30,000 Combinations for Personalized Proposals

that can be personalized to address the concerns of individual cus­

By answering just nine questions on MEDULLA’s website, customers
can receive personalized proposals that select the products best forthem from among approximately 30,000 combinations. Formulations
are blended based on the individual customer’s needs and shipped tothem once every two months. This ease and the effectiveness of theseproducts have led subscription numbers to climb past 200,000 (as of
September 2020).

tomers, meaning that it can be customized to respond to the various
hair-related issues that can arise based on weather, lifestyle, or age.
A flagship store for this brand was opened in Yurakucho Marui in
December 2019, and we are examining the possibility of engaging
in EPOS card collaboration with this brand.

Made-to-Order Suits That Fit Your Life
Based on the concept of “Fit Your Life,” FABRIC TOKYO provides madeto-order suits that match customers not only in terms of size but also interms of their lifestyles and values. This company handles all aspects ofthis process spanning from taking customer measurements to production
at affiliated factories and sales. Apparel products have long been associated with the issue of mass waste. However, this issue can be addressed
through made-to-order options in which items are only made after anorder has been received. This sustainable approach resonates with

Personalized Coordination Support
Customers can visit FABRIC TOKYO stores at Shinjuku Marui Main Building and otherlocations to have their measurements taken by specialized coordinators with consideration paid to the characteristics of their body. These coordinators will also sit down withcustomers to discuss their concerns and the image they want to portray in order to offer
personalized coordination support matched to their lifestyles.

MARUI GROUP. Customer measurements are taken at FABRIC TOKYO’s
physical stores, and this size data can be used to order suits that perfectly fit each individual customer online.

Impeccable Quality at
Affordable Prices
Online, FABRIC TOKYO customers
are able to manage their favoritestyles and size data while also ordering clothing that perfectly fits theirbodies. In addition, FABRIC TOKYO
uses a factory-to-customer scheme
to directly link purchasers and­producers so that it can deliver­products with impeccable quality
at affordable prices.

Hair and Scalp Data from More Than 100,000 Customers

Content Experiences Unique to Physical Stores

MEDULLA’s ever-expanding lineup encompasses shampoo as well as awide range of other haircare products. This brand also offers custom hair
oil that is prepared based on hair diagnoses calling upon a database ofhair and scalp data collected from more than 100,000 customers.

Seeking to respond to customer demand to preview products and fragrances at stores,
MEDULLA opened an experience-oriented store in Yurakucho Marui. This store allows
customers to enjoy content experiences, such as scalp diagnosis and gift wrapping, thatcan only be offered at physical stores.

MESSAGE FROM A BUSINESS PARTNER 

Physical stores make it possible to solicit direct customer input that cannot be gained from the numerical data collected
via e-commerce venues. They also provide a valuable opportunity for customers that would have not encountered the
MEDULLA brand online to learn of us. I therefore see great potential for physical store openings. We see visits fromnumerous customers who want to undergo scalp diagnoses, preview the fragrance of our products, or experience ourbrand in some other way that is only possible offline. MARUI GROUP’s staff is incredibly understanding of D2C brands,

broadcasts from our store. In the future, I hope to expand our collaborative relationship beyond stores to include
personnel exchanges and joint business development in order to co-create the ideal form for D2C brands and ulti-

MESSAGE FROM AN EMPLOYEE FABRIC TOKYO is a D2C brand that was born on the internet. However, theIn the past, I had the opportunity to observe physical D2C brand storesproducts we deal in require professional skills to measure customer bodies

in the United States through MARUI GROUP’s overseas dispatch pro-and adjust to make an appealing silhouette. We therefore have to develop

gram, giving me a sense of the potential for stores that do not sell.

stores with facilities for this purpose. Our first forays into physical stores

I later volunteered to be seconded to FABRIC TOKYO based on the

took the form of the limited-time opening of a location in Yurakucho Marui.

belief that MARUI GROUP needed to change how it operated its stores.

This store proved ideal given that its location and customer base matched

FABRIC TOKYO has a corporate culture that aims to prevent situations in

our target demographic. We thus chose to expand our presence in Marui

which specific jobs can only be performed by certain people, translating

stores starting with Shinjuku Marui Main Building. We also felt that a 10%

often unspoken customer service techniques into words that anyone

discount for EPOS cardholders would be an appealing way to gain new

can understand. This has resulted in a high level of customer service

customers without discounting our brand. Sure enough, these discounts

proficiency among its staff. In the future, I hope to utilize my second-

have been making large contributions to the growth of our business.

ment experience to create physical stores that offer a sense of excite-

Furthermore, MARUI GROUP employees have been dispatched to work

ment without being bound by preconceptions.

deepen our understanding of each other’s business.

Yosuke Miyama
Representative Director
Sparty, Inc.

mately for digital native stores in Japan.

Junichi Mukai
Store Development Specialist
FABRIC TOKYO Inc.

38

FABRIC TOKYO cuts out intermediary distributors to form direct relationships withall of its affiliated producers with respect for openness and transparent traceability.
These relationships allow it to make information on production sites and distribution
openly available.

together on our projects, and this has proven to be a good opportunity toand they have supported us in a variety of ways. This is why we chose to set up shop in one of MARUI GROUP’s stores.
Their service is fast and courteous, even in the midst of the COVID-19 pandemic, and they even helped us set up live

MESSAGE FROM A BUSINESS PARTNER 

Commitment to Quality Transmitted to the Future

Yusuke Iwamoto
Seconded to FABRIC TOKYO Inc.
MARUI CO., LTD.
(As of August 2020)

39

D

DIALOGUE 02

Potential of D2C Brands as an Ecosystem
Direct-to-consumer (D2C) brands are brands that employ a new business model of forming relationships directly with
consumers, via a directly operated e-commerce website or social media, without going through a retailer.
MARUI GROUP looks to support D2C start-up companies and develop a D2C ecosystem. D2C & Co. Inc. was established in
January 2020 for this purpose. D2C brand operator Yuichiro Mori, who has opened physical stores for his brand at Maruistores, joined MARUI GROUP’s Hirotsugu Kato for a discussion on the potential of D2C brands as an ecosystem.

Lack of Visibility of Brands Dependent Solely on
E-Commerce

are founded less on the quality of their products and more on
how much customers enjoy the overall experience of the brands,
including their creative vision, the experience of purchasing

40

Kato: We first met, Mr. Mori, around three years ago if I recall

items, and the sense of community they offer. I started a D2C

correctly. I still remember how much everyone seemed to be

fashion brand with the goal of creating a business model thatenjoying their work when I visited your office. Despite this light-

combined my love of fashion with IT.

hearted atmosphere, questions about work were met with

Kato: People who have been involved in traditional retailingdetailed, data-driven explanations using computer screens. I was

operations tend to be highly conscious of sales targets. This

shocked and amazed to get such a response from a start-up

consciousness often leads to interactions with customers

company. What made you think about launching your own

ending in one-time transactions, and it can be quite difficult

business?

to shift to a perspective focusing on long-term relationships.

Mori: I have always loved fashion. When I was at university,

I understand that you, Mr. Mori, keep up-to-date on your custom-

I started up a fashion media outlet and even went to see fashion

ers. It is amazing how much a difference effective quantitativecollection presentations in Paris and Milan. I believe that fashion

analysis can make in the value of stores.

has the power to fill you with positivity when you wear an outfit

Mori: When I was at a real estate venture company, I learned

or items that you particularly like. Entering into the fashionthat encouraging existing customers to continue to live in our

industry after university, however, I felt that the industry wasproperties was a better path to consistent earnings than trying

too tied up in past success stories, and was thus behind theto secure large numbers of new customers. Today, we refer totimes. I had previously thought that fashion was about propos-

this idea with the term “lifetime value.” If customers continue toing something new, so this experience was incredibly disheart­buy our products over the decades to come, they will continue

ening. Lost in this despair, I saw a new light in the IT industry andto shape our brand over the long term. You could even say thatin venture companies and start-ups. I later took part in the early

I embraced the concept of unit economics right from the startdays of a real estate venture company and the marketplaceof FABRIC TOKYO.

app operator Mercari, Inc. This experience made me realize that

Kato: Our ultimate goal is to make stores that do not sell. D2C

I was more suited to the management style of start-ups, but I

brands like FABRIC TOKYO will be a core part of accomplishing

still couldn’t shake my attachment to fashion.

this goal. As D2C brands can sell their product directly to cus-

Kato: During the bubble period, we were developing a businesstomers through the internet, what value do you gain from physi-

centered on fashion, which proved incredibly popular at the time.

cal stores?

After that, however, we fell into a long period of stagnancy. I think

Mori: Physical stores are a venue for soliciting the creative vision

our preoccupation with past successes was one reason for thisof our brand and for allowing prospective customers to experi-fall. During this time, customer surveys brought scathing opin-

ence our brand. They also serve a function similar to a media

ions, like how our stores were unsettling as they had nothing but

outlet. If we depend solely on e-commerce sites, we lack vis-clothes and how our customer service approach was a bit

ibility, like opening a store in the middle of the desert. Physicalintimidating.

stores, meanwhile, are a part of customers’ everyday lives,

Mori: Apparently, my father bought his first suit at Marui, andmaking it much easier for customers to find us in them. Also,

I too strongly associated Marui stores with fashion. D2C brands

online advertising fees are skyrocketing. Accordingly, if we areare garnering attention at the moment. I feel that these brands

able to make good use of both online and offline venues, we can

YUICHIRO MORI × HIROTSUGU KATO
Yuichiro Mori

Hirotsugu Kato

CEO/Founder
FABRIC TOKYO Inc.

Director, Managing Executive Officer, and CFOMARUI GROUP CO., LTD.
President and Representative Director, D2C & Co. Inc.

41

D

DIALOGUE 02

D2C brands can provide their products on a nationwide or evenglobal basis. Even niche brands can thus attract tens of thousandsof customers if they grow their customer base on a global scale.
This potential is one of the appeals of D2C brands.
Yuichiro Mori
CEO/Founder
FABRIC TOKYO Inc.
Born in Okayama Prefecture in 1986, Yuichiro Mori joined fashion event production company DRUMCAN inc.
after graduating from university, where he took part in the planning and production of fashion shows and events.
He later began joining venture companies, being involved in the early days of real estate venture Global Agentsand the launch of the Mercari marketplace app. He used this experience to start up the FABRIC TOKYO (formerly
LaFabric) made-to-order business wear brand in February 2014. Through FABRIC TOKYO, Mori aims to provide
customers with suits that perfectly fit not just their bodies but also their lifestyles. FABRIC TOKYO stores can befound across Japan in locations such as Shinjuku Marui Main Building and Kobe Marui.

increasingly embrace such brands. It is also likely that we will

nesses that address social issues. Could it be that the relative

see an increase in the number of young people that aspire to set

youth of their management is related to this high level of issue

up their own D2C brand.

awareness?

Mori: To increase such brands, we will need a healthy D2C

Mori: That might be a factor. My generation witnessed a number

ecosystem. Creating this system will require ambitious entrepre-of serious issues, including massive natural disasters, terrorist

neurs followed by employees and other team members andattacks, and the 2008 financial crisis, over the span of only twoeventually partner companies. When all of the necessary man-or three years. This experience could have sparked our aware-agement resources have been acquired, including people, sup-ness of such issues. People often talk of three types of value, butplies, money, and information, we will see the growth of quality

it would appear that this used to be two types: value for custom-businesses and quality brands. D2C & Co. will have an incredibly

ers and value for business. The third type of value is new. This isimportant role to play in this ecosystem, and I truly hope that thisvalue for society. The idea of developing a business targeting thecompany will come to be a leading force in the industry.

intersection between these three types of values is commonly

Kato: I too hope to work together with you, Mr. Mori, to build ashared among younger entrepreneurs.

co-creation ecosystem that includes D2C brands and contribute

Kato: MARUI GROUP seeks to provide value that is shared by all

to society through this process.

attract customers more affordably. I also like to use physical

Kato: That shows just how popular the FABRIC TOKYO brand is.

stakeholders. In 2019, we newly identified future generations as

Mori: D2C brands can provide their products on a nationwide orstores as a testing ground for new ideas before we implement

What do you think inspires customers to become fans of

the sixth group of stakeholders to which we aim to provide thiseven global basis. Even niche brands can thus attract tens ofthem on our e-commerce site.

FABRIC TOKYO?

value. Viewing future generations as stakeholders means thatthousands of customers if they grow their customer base on a

Kato: I think a lot of people would be surprised to hear what you

Mori: We don’t refer to our customers as “fans”; we call them

we have to consider environmental and food issues in our

global scale. This potential is one of the appeals of D2C brands.

just said, as it is commonly believed that attracting customers

loyal customers. This is because it’s tough for fans to stay fans­business. This has naturally led us to practice sustainability

via the internet is cheaper. I want to spread understanding of

forever. We recognized the danger this truth represents, and thus

management.

such value to be gained from physical stores and to see otherstarted taking steps to monitor customer loyalty. We also value

Mori: That is quite admirable. I guess it was that thinking that led

D2C brands set up more locations in our stores.

our concept of “Fit Your Life” above all else. By this, we mean

MARUI GROUP to invest in and collaborate with a sustainable

that we want our suits to fit customers’ lifestyles as well as theirpower producer.

Consistent Sales During State of Emergency,
Record Performance Thereafter

bodies. This concept is the common thread running throughout
our website, store, and organizational measures. In fact, we
often hear people raising the question “But does that ‘Fit Your

Kato: We had to close our stores for nearly two months due toGrowth of Quality Business and Brands After
Acquisition of Necessary Management Resources

Life’?” at meetings.
Kato: Many say that D2C brands are unlikely to show significant

the COVID-19 pandemic. This is the first time stores have been

Sustainability of the Made-to-Order Model

growth in terms of quantity. What factors do you think need tosites in the United States doubled as a result of the pandemic.

Kato: The concept of “Fit Your Life” is important to personaliza-

come along that eliminated the issues faced by customers,

Mori: We too had to close our physical stores, which put a halttion, and personalization is in turn crucial to sustainability. A

would it grow?

on the acquisition of new customers. Luckily though, existingrather shocking data point from the apparel industry is that

Mori: We are only looking at the tip of the iceberg when it comes

customers continued to buy our products through our e-com-

roughly half of what is made is not sold. That creates a lot

to D2C brands. These brands are currently in their infancy, andmerce site, and sales actually did not decline as a result. That isof waste.

there are a lot more stages for them to go through their develop-

one of the advantages of a D2C brand. For us, the number of

Mori: That is one of the reasons we adopted the made-to-orderment. Those brands that are able to formulate a clear vision forusers with registered measurement data is our most importantmodel. We are keenly aware of manufacturing-related issues,

the future stages of their development will likely be the market

key performance indicator. We were able to post a record-break-

and we have thus defined technology, sustainability, and trace-

leaders of the future. FABRIC TOKYO’s goal is to join the top 10

ing performance with regard to this indicator in the last week ofability as principles positioned under our concept of “Fit Yourapparel companies within the next decade. I have the utmost

July 2020, after stores were reopened following the lifting ofLife.” In Japan, around 280,000 suits are put on the market every

confidence in our ability to accomplish this goal. After all, theJapan’s state of emergency declaration. Size is more important

year, but only 130,000 of these were sold in 2019. Plus, 10% of

products that see growth are those that are used every day andfor business suits than it is for other forms of clothing. We havethe world’s CO2 and 20% of its wastewater are emitted by thetransform customer lifestyles, such as clothing, furniture, home

thus seen a rise in demand for the option we provide to purchaseapparel industry. This industry is polluting the earth to makeelectronics, food, and cosmetics.

made-to-order suits online, causing customers to flock to our

products that it throws away. Our made-to-order model, mean-

Kato: The use of D2C brands is common among a younger

physical stores.

while, is sustainable as we only make the products for which

demographic in the United States, and it can thus be assumed

we receive orders.

that millennials and younger generations in Japan will come toclosed for this long since World War II. Was FABRIC TOKYO affected by the pandemic? I heard that the growth of e-commerce42

Kato: It seems to me that a lot of start-up companies run busi-

happen for D2C brands to grow in the future? If a brand were to

Viewing future generations as stakeholders
means that we have to consider environmental
and food issues in our business. This has
naturally led us to practice sustainability
management.
Hirotsugu Kato

43

Co-Creation Ecosystem [ Business ]Co-Creative Investment

B
S

Y

S
N

I

E

R

D
G

E

I

Z

E

Investments that synergize with our main business are defined as investments in companies and new
businesses that entail superior intangible assets. Through these investments, we aim to incorporate
the unique expertise and other intangible assets of these companies into MARUI GROUP while generating synergies by means of collaboration to grow the earnings of our main business. In cases inwhich we can expect synergies with our main business, we will invest in venture companies not
anticipated to make initial public offerings or in listed companies. This was the case with the anime
business launched in the fiscal year ended March 31, 2016. We also invest in sustainability companies
as well as in new businesses, such as the securities business of tsumiki Co., Ltd.

Investment

Pocket Marche offers a direct distribution platform that allows consumers topurchase ingredients directly from farmers and fishermen. This platform
communicates not only the appeal of the items being offered but also thestories of their producers, providing consumers with the option to makepurchases based on their values or a story they found particularly compellingwhile also emphasizing the value of direct communication between products
and consumers. Through its business and capital alliance with this company,
MARUI GROUP is examining possible initiatives for creating new value
including in-store events and benefits for EPOS cardholders as it works tocreate new experience value.

Investments

Synergies

Resources

Resources

Investees
New Businesses

Earnings Contributions to
Main Business

Investment

New business development

Shaping spaces through a combination of design, business, and technology
is the business of TSUKURUBA Inc. Specific aspects of this business include
providing living proposals matched to customers’ individuality throughdevelopment of offices for start-up and IT companies and the cowcamo
service that lets users find their one-of-a-kind dream home from among alimited selection of secondhand and renovated properties. As our first collaborative venture, we will jointly develop a renovated rental condominium
brand by pooling our resources and expertise. Through this collaboration,
MARUI GROUP aims to ramp up its efforts in the area of housing, where we
expect to be able to improve lifetime value through long-term relationships
with customers.

MAJOR INVESTEES
外国人が日本に来てよかったをカタチに ®

TOPICSFirst B-Side Song—Anime Business
MARUI GROUP established the Anime Business
Department in April 2016 to create a new businessfor contributing to earnings in our main business by

MESSAGE FROM A BUSINESS PARTNER 

facilitating the growth of our retailing and fintech
businesses. Over the four-year period encompassing the fiscal years ended March 31, 2016–2020,

ONE PIECE EPOS CARD
©Eiichiro Oda/Shueisha, Toei Animation License
coordinated by FUNimation® Productions, Ltd.

Began issuing BanG Dream! Girls
Band Party! EPOS CARD
©BanG Dream! Project ©Craft Egg Inc.
©bushiroad All Rights Reserved.

At TSUKURUBA, co-creation has been an important theme in our corporate culture and in our business since the timeof our founding. When looking for partners, we became aware of MARUI GROUP’s co-creation management philoso-

we have invested a total of ¥120 million in anime

phy. Recognizing that this philosophy resonated with our own, we decided to join hands. It has been a number of years

movies. These investments have generated signifi-

since the emergence of the buzzword “open innovation,” but there are still only a few cases of true success in open

cant returns in the forms of synergies with our main

innovation. Success in open innovation requires ongoing commitment, in both rhetoric and action, until it becomes anbusiness and contributions to consolidated operating income totaling ¥4.3 billion.

unwritten part of a company’s corporate credo. This is, of course, easier said than done. Meanwhile, I see co-creation
Sumikkogurashi EPOS CARDGODZILLA EPOS CARD

©2019 San-X Co., Ltd. All Rights Reserved.

TM&©TOHO CO., LTD.

as an effective method of maximizing the value we provide to consumers and to society. The goal I envision for ourpartnership with MARUI GROUP is the maximization of the experience value we offer the consumers that are ourcustomers. This partnership will begin with the development of a renovated rental condominium brand. We will take a

Hiroki Murakami
CEOTSUKURUBA Inc.

broad perspective with regard to this initiative, seeking to evolve the experiences offered in the rental housing field toinclude digital experiences. I pledged with President Aoi to create an example of successful open innovation in Japan,
and I am absolutely committed to ensuring the success of this undertaking.

44

45

Co-Creation Ecosystem [ Business ]MARUI GROUP is pursuing synergies with its main business throughco-creation in forms other than co-creative investment.
New Global Marketplace for Creating New ValueiKASA
Investment“I want to circulate our limited resources to help society thrive.” The
Mercari marketplace app was born out of this realization by the founder

Employee secondmentof Mercari, Inc., as he traveled the world. This company aspires toharness the power of technology to make it easy for people around the

Nature Innovation Group Co., Ltd. is developing iKASA Japan’s first umbrella
sharing service. With iKASA, there is no need to rush to buy an umbrella in theevent of sudden rainfall; customers can rent one for 24 hours for only ¥70 andthen return it to the most convenient location, keeping them safe and dry fromthe rain. The iKASA service is being developed as a piece of infrastructure for
ensuring mobility on rainy days by eliminating the restrictions placed on
movement if one does not have an umbrella while freeing them from thediscomfort of getting wet. This service also contributes to the sustainabilityof society by reducing the number of plastic umbrellas that are purchased andpromptly thrown away. We are steadily introducing the iKASA service at Maruiand Modi stores across Japan while engaging in other collaborative ventureswith Nature Innovation Group.

world to link up and enjoy the experience of buying and selling with each
Service coordination

Operation contracting

Store locations: Shinjuku Marui Main Building

Easy and Convenient Shipping Using
Unmanned “Mailboxes”

New business development

Life is Tech, Inc. offers Life is Tech ! , one of Japan’s largest IT education­programs for junior high school and high school students. This program isdesigned to foster creativity and allow students to learn about technologies
for creation through the study of app development and other programming
disciplines as well as cutting-edge technologies such as digital art. MARUIGROUP has formed a business and capital alliance with this company throughwhich we aim to jointly create new businesses with an eye to future generations. Our participation is taking the form of support from employees for giving
form to the ideas of students as we accelerate new business development andother co-creation activities. Life is Tech, Inc. is capitalizing on its expertise tocontribute through overall planning, student recruitment, and mentoring tofurther expand co-creation activities oriented toward future generations.

First Physical Mercari Station Location
In June 2020, Mercari, Inc., opened its first physical Mercari Station location in Shinjuku
Marui Main Building. This shop offers offline experiences and services centered on digitaltechnologies, making it highly compatible with MARUI GROUP’s store development
strategies. Mercari, Inc., has also set up a Mercari Station at the LaLa terrace
MUSASHIKOSUGI shopping center (not associated with MARUI GROUP). Operation ofboth of these locations is outsourced to MARUI GROUP employees.

MESSAGE FROM A BUSINESS PARTNER 
Customers visiting Mercari Station include both existing Mercari users

survey results have shown impressive satisfaction rates of nearly 90%.
Customers who thought the Mercari app would be a hassle haveexpressed that their visit made them see how simple the app was andthat they now want to list an item. MARUI GROUP provides us withsupport for operating our store while also proposing methods of recruiting customers and improving operating practices. Mercari Station
Employee secondment

Collaboration cards

Store locations: Shinjuku Marui Annex, Marui City Yokohama, Hakata MaruiA-too inc. operates Suruga-Ya, a major e-commerce website specializing in secondhand
hobby items centered on plastic models, figures, and other anime merchandise. Together
with this company, we launched the SURUGAYA EPOS CARD in 2020. Moreover, A-too
has opened Suruga-Ya stores in Marui stores. These stores see higher visitation fromfemale customers than A-too’s directly operated e-commerce site or physical locationsin other stores. These locations are thus helping this company make contact with a newgroup of customers. We have also launched a new service in which shipments of items
that customers wish to sell can be conducted at dedicated service counters in Marui andModi stores. This option was previously only available through standard courier services
or at Suruga-Ya locations. In the future, we look forward to further improving customer
experiences through collaborative initiatives that take advantage of our stores and the
distribution networks of subsidiary MOVING CO., LTD.

46

the Mercari experience while also making the app more familiar andMercari, Inc., holds Mercari Workshops to teachpeople how to use the Mercari app. At theseworkshops, instructors guide students throughthe experience of finding and purchasing
products and of listing unneeded items for sale
while also teaching them other ways to enjoy
Mercari. Support is also offered for sellers in such
ways as booths for photographing products andconsultation.

are all ages and even come from locations outside of Tokyo. Post-visit

Tenant store opening

points to allow prospective sellers with no previous experience to try out

Venue for Enjoying Learning About andExperiencing Mercari

and individuals who have yet to experience the app. These customers

Investment

other. Mercari, Inc., is expanding its range of online and offline touch

convenient for current users.

Investment

MARUI GROUP wants to hear revolutionary ideas for changing the futurefrom university and graduate school students. Application is open until
mid-November 2020 (Japanese only).
www.0101maruigroup.co.jp/future/

Tenant store opening

provides numerous opportunities for making contact with customers,
through Mercari experiences, workshops, events, and live broadcasts.
Through this venue, we hope to communicate the appeal of the Mercari

Mercari Post, an unmanned “mailbox” that allows
sellers to ship sold items simply by droppingthem in one of these boxes. These easy andconvenient shipping kiosks provide services
ranging from automated shipping label preparation to shipping. They are particularly appealing
as sellers can perform all processes leading up
to shipments while receiving support from staff
members by just bringing in the sold items.

MESSAGE FROM AN EMPLOYEE 
Our co-creation activities with Mercari, Inc., match up with MARUI GROUP’s
vision for digital native stores and stores that do not sell. We provide
Mercari, Inc., with store operation expertise and employees skilled incustomer service as well as a venue for allowing customers to experience the Mercari app. This venue helps to enhance this company’s
offline customer contact points and to increase engagement with Mercari.
Those of us who have been entrusted to staff Mercari Station go about
operating the store while emphasizing the importance of both customers
and the needs of Mercari, Inc. We also realize that trust is indispensable
to long-term co-creation partnerships. During the Mercari experiences
offered at Mercari Station, we frequently see customers form a naturalconnection and begin to teach one another, making us aware of theGroup and increase our fan base.

potential for this store to foster a sense of community. In my own capac-

Yukiko Ohdo

tinue to be used for three decades.

ity, I hope to help develop a new model for Marui stores that will con-Business Development OMO & mercari Station Manager
Mercari, Inc.

Ryo MatsumotoMore details can be found on the following website (Japanese only).
www.to-mare.com/news/2020/post-3.html

Mercari Station
Shinjuku Marui Main Building
MARUI CO., LTD.

47

Co-Creation Ecosystem [ Business ]Provision of options enabling all people tobe themselves and experience happiness

MARUI GROUP’s Value Journey ofContinuous Co-Creation of Creditability

Conversion to renewableenergy for household
electricity to support the
future of the earth

Green Businesses

Investment starting at
young age to alleviate
concerns regarding
resources for the future

Touchpoints with customers

Conclusion of rent
contracts using rent
guarantee services
through EPOS card
Consolidation ofhousehold financepayments by using EPOS
card as main credit card
Receipt of EPOS card as
first credit card after
recommendationin store

Lifelong Relations

Asset Building Services

with Customers

Visits to Marui and Modi stores,
product purchases and experience value

Rent Guarantee Services

Subscription Services

EPOS Cards

Marui and Modi Stores
Duration of relationships with customers

Ongoing Relationships as Opposed to One-Time Transactions

Lifelong Relations

Rather than one-time interactions that end with a single transaction, we seek to foster ongoing

MARUI GROUP joins hands with customers that resonate with a sustain-

relationships with customers by providing experience value and diverse services in stores.

able mind-set, thinking of one’s future self and of future generations, toThese long-term relationships enable us to practice the co-creation of creditability.

co-create a happier society.

Spirit Continuing from Installment Payments at Time of Founding Seen in Co-Creation of Creditability
debts in 10, 12, or 24 installments after purchases. So long as

MARUI GROUP is increasing its diverse lineup of services cen-

Looking ahead, we will encourage customers that resonate withthrough monthly installment payments. Furniture in those days

customers made payments on time, they would continue to build

tered on EPOS cards as well as subscription services that are

our sustainability-based mind-set to partake of services such as

was exceptionally expensive. We helped customers make suchcreditability the more they borrowed and the longer the period

not dependent on selling goods in order to foster even longer-

switching to renewable sources for their household electricity in

expensive purchases by loaning money for the purchase toover which they borrowed. The services we offer customers haveterm relationships with customers. Rent guarantee and asset

order to contribute to the resolution of social issues while bol-customers, which they would repay in monthly installments.

changed with the times. Regardless, we have continued tobuilding services, for example, entail recurring transactions withstering medium-to-long-term profits. We thereby aim to build aCompared to business models based on cash payments, which

practice the co-creation of creditability throughout the years bycustomers over the course of long-term relationships that can

co-creation ecosystem that extends across society together withoften resulted in relationships ending after a single interaction,

mutually building creditability with customers based on theirlast 5, 10, or even 20 or more years. These services thereby

our six groups of stakeholders, including future generations, andinstallment payments were effective in fostering long-term

usage histories.

encourage customers to use EPOS cards as their main cards

help shape a happier future.

relationships with customers as they proceeded to repay their48

Co-Creation Ecosystem Built on Long-Term Relationships

MARUI GROUP’s business initially involved selling furnitureand contribute to increases in Gold and Platinum cardholders.

49

Co-Creation Ecosystem [ Action for the Future ]Renewable Clean Energy
As the world pursues a green recovery, the shift toward renewableenergy is gaining attention on a global scale. Renewable energy is
generated from sources including naturally occurring sunlight, wind,
water, and geothermal heat. These energy sources can be used to keepsocial infrastructure functioning without concern for resource depletion

CO-CREATION ECOSYSTEM

or for greenhouse gas emissions. At the United Nations Climate Action

ACTION FOR THE FUTURE

declared their commitment to pursuing carbon neutrality, effectively

Summit held in New York in 2019, 77 countries from around the world
decreasing greenhouse gas emissions to zero, by 2050. Carbon taxes
and restrictions as well as other measures are being implemented on anational level to work toward the realization of a carbon-free society.
Against this backdrop, Japan’s efforts have been limited to announcing
a goal of sourcing between 22% and 24% of the country’s energy fromrenewable energy by 2030.

OLD

NEW

Fossil Fuel Energy

Renewable Energy

Represents 63% of global energy consumption

Represents 26% of global energy consumption

Generated from coal, oil, natural gas, etc.

Generated from sunlight, wind, water, geothermal heat, etc.

Emits greenhouse gases during the processof fuel combustion

Nonfinite energy source that does not emit
greenhouse gases

Produced using finite stock buried in the earth

Energy source able to be used perpetuallySource: Statistical Review of World Energy 2020, bp p.l.c.

Era of Energy Choice
Global energy consumption in 2030 is estimated to be roughly twice the level of 1990. As the No. 5 global emitter ofgreenhouse gases, Japan currently generates 87.7% of its energy using fossil fuels, which come from finite stock
developed within the earth over a period of hundreds of millions of years. The depletion of fossil fuel resources has
been recognized as an issue since the 1970s, but we still have yet to escape from our dependence on the fuels. The
future of the earth can only be saved if we all accept the truth of the crisis we face and choose to shift toward more
renewable options.

01

Green Recovery
Shaping the Future
We use energy every day, whether it be in the form of electricity, gas, or gasoline. A large portion of theenergy used around the world is derived from fossil fuels, and generation of energy using these fuels entail
emissions of massive quantities of CO2 and other greenhouse gases, which are a cause of abnormal
weather events and natural disasters. If we continue to use energy from fossil fuels at the current pace, it isestimated that the average global temperature will rise 4°C above pre-industrial levels by the end of the

Action by All Stakeholders
Roughly 20% of Japan’s greenhouse gas emissions are attributable tohouseholds, of which 48.6% comes from electricity consumption. Here
we see the potential that could be realized if people shift toward clean
renewable energy. MARUI GROUP is working toward its goal of sourcing
100% of the electricity used in its business to renewable energy. By
customers too have great interest in renewable energy. MARUI GROUP
thus chose to launch a project for commencing services that make iteasier for customers to choose renewable energy (see pages 52–53).

demic stimulated a movement to reset our economy. An important global keyword with regard to thisWe recognize that substantial contributions to the realization of amovement is “green recovery,” which signifies a switch to sustainable economic activities. There has thus

sustainable society can be made if all of MARUI GROUP’s stakeholders

addressing environmental issues into efforts to reset the economy.

Electricity
48.6%

working toward this goal, we have become aware of the fact that

century, which would bring a destructive end to the environment as we know it. The global COVID-19 pan-been a spread in the idea of building resilient social and economic models by injecting initiatives for

Breakdown of Household Greenhouse Gas Emissions
in Japan by Source

embrace renewable energy. We have thus embarked on actions forthe future to promote the shift toward renewable energy together
with customers.
Source: Greenhouse Gas Inventory Office of Japan

50

51

Co-Creation Ecosystem [ Action for the Future ]Provision of Options for Creating a Brighter Future andPreserving the Global Environment for Future Generations

Start of Project for Promoting Shift toRenewable Energy!

Easy Two-Step Application for Renewable Energy Services
Customers have expressed that changing to renewable energy is difficultand a bit of a hassle. To address this issue, MARUI GROUP has made it

MARUI GROUP has joined the RE100 international initiative, declaring its target of sourcing 100% of its
electricity from renewable energy by 2030. We are shifting to renewable sources for power at Marui andModi stores nationwide to further us toward the accomplishment of this goal. MARUI GROUP has begun
supplying renewable energy with visibility of producers together with Minna-denryoku, Inc. In addition, we
have launched a project aimed at reducing CO2 emissions by promoting renewable energy use throughcollaborative efforts with both facilities and customers. Through these efforts, we are targeting reductions
in CO2 emissions of 1 million tons by the fiscal year ending March 31, 2025, to help address environmental

possible to apply for renewable energy services in two steps from a special
page on its EPOS Net portal site for EPOS cardholders. This smoothapplication process is made possible by provision of basic customer
information necessary for contracts between Minna-denryoku and Epos
Card Co., Ltd.
Words of Encouragement from Minister of the Environment

Application Requiring Only Smartphone and Billing Statement

issues together with customers through renewable energy.
Minna-denryoku
Receipt of customer
application information

Desire to Use Renewable Energy Indicated by 60% of EPOS Cardholders
A survey of EPOS cardholders conducted in 2019 indicated that approximately 60% of cardholders had adesire to use renewable energy. However, only around 25% of cardholders have actually switched to

Step 1
Log in to EPOS Net and photograph electricity billing statement

In September 2020, a meeting was held with Minister of the Environment Shinjiro Koizumi(center in picture above) at the Ministry of the Environment. MARUI GROUP President Hiroshi
Aoi (left in picture above) and Minna-denryoku Representative Director CEO Eiji Oishi (right inpicture above) attended and led the minister through the two-step process of applying for
Minna-denryoku’s renewable energy services. Minister Koizumi offered us words of encouragement, stating that easy application systems are imperative for getting individuals to switch torenewable energy and expressing his desire to use this initiative as a door opener to encourage
action by other companies and industries in our quest to realize a carbon-free society.

Step 2
Confirm basic informationand complete application

Please refer to the following website for details (Japanese only).
www.to-mare.com/news/2020/post-8.html

renewable energy due to the difficulties associated with changing power companies.

Interest in Renewable Energy Among EPOS Cardholders
Not interested in using
going forward

Minna-denryoku EPOS Plan

Interested in using going forward

59%

35%

Minna-denryoku EPOS Plan for EPOS Cardholders
In addition to the easy two-step application process for Minna-denryoku’s

Characteristic 3: Benefits Providing Tangible Connections

renewable energy services, we also offer the Minna-denryoku EPOS Plan

The Minna-denryoku EPOS Planfor EPOS cardholders. This plan has three characteristics.

offers various benefits from users
and generators of renewable energy.

Characteristic 1: 100% Renewable Energy*1

6%

Source: Survey of 2,400 EPOS cardholders
conducted in April 2019used to fund forest preservation and

The electricity provided through this plan is effectively 100% sourced

reforestation activities in Japan.

from renewable energy through a combination of solar power, wind

These connections to resolving environmental issues are made more

power, and hydropower as well as non-fossil fuel certificates with envi-

tangible through means such as allowing customers to view progress inronmental value provided through feed-in tariff schemes.*2

tree planting activities online.

*1 Supplied electricity is effectively 100% sourced from renewable energy through use ofnon-fossil fuel certificates provided via feed-in tariff schemes (resulting in zero CO2emissions).
*2 Schemes in which electricity generated from renewable sources, namely solar power,
wind power, hydropower, geothermal power, and biomass power, is purchased by powercompanies.

Already using

Moreover, 0.5% of electricity fees areCharacteristic 2: Visibility of Contributions to CO2 Reductions
Switching to the renewable energy through the Minna-denryoku EPOS
Plan allows customers to reduce their CO2 emissions to zero, meaning
this plan has the potential to prevent global warming. Users of this plan
are able to see their contributions to CO2 reductions via our website.

Launch of Minna-denryoku EPOS Card
In October 2020, we launched the Minna-denryoku EPOS Card
as a symbol for renewable energy that can be used by ecoconscious customers. As an application benefit, ¥1,000 will be
donated to renewable energy generators upon application.
Moreover, we will transform the card itself into a sustainability
initiative by replacing the prior disposable plastic cards withcards made from eco-friendly materials, a first for Japanesecredit cards, in April 2020.
Please refer to the following website for fee estimates and application(Japanese only).
www.eposcard.co.jp/minden/index.html

MESSAGE FROM A SUSTAINABILITY EXPERT 
I have high praise for MARUI GROUP’s approach toward sustainability through co-creation management. There are a
lot of companies for which the formulaic initiatives themselves, advocated by the Global Reporting Initiative (GRI),* theTarget of Sourcing 100% of Electricity from Renewable Energy by 2030

International Integrated Reporting Council, and the Sustainability Accounting Standards Board, become the primary

Approximately 80% of the CO2 emissions from MARUI GROUP are associated with electricity use. To curb these emissions, the Company became agoals. MARUI GROUP, meanwhile, is setting clear goals from a long-term sustainability perspective and working toward

member of the RE100 international initiative and declared its target of sourcing 100% of its electricity from renewable energy by 2030. We beganthese goals. The Company has recently launched a project for promoting the shift to renewable energy. This project isworking toward this target by forming a business and capital alliance with Minna-denryoku in December 2018, after which we started converting to

one facet of its approach toward co-creation sustainability management. GRI and the other international standards
were designed to serve as benchmarks for the initiatives of forward-looking companies. In other words, the second thestandards are made, a precedent has already been set. I want to see MARUI GROUP going beyond simply complying
with existing standards to advance unique initiatives and thereby set new precedents for businesses, ecosystems, andstandards. Japanese companies are not known for setting new standards, but I hope that MARUI GROUP can become

Hidemi Tomita
Representative Director
Lloyd’s Register Japan K.K.

renewable sources for electricity at Marui and Modi stores, beginning with Shinjuku Marui Main Building. Furthermore, we completed registration ofGroup company MARUI FACILITIES Co., Ltd., as a power retailer in September 2019, making it possible to procure power directly from power
producers. Direct procurement of renewable energy was commenced in April 2020, and we aim to source 50% of our power from renewableenergy, including that procured from other power companies, in the fiscal year ending March 31, 2021.

a leader in this regard.
* A nonprofit organization tasked with the mission of issuing international sustainability reporting disclosure standards

52

53

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DIALOGUE 03

EI J I OI SHISAORI IWANO

Eiji Oishi was born in Osaka in 1969. After graduating from Meiji
Gakuin University, he joined advertisement production company
Toppan Printing CO., LTD., where he took part in the establishmentof digital content distribution, imaging, and fashion businesses
before starting up Minna-denryoku in 2011. At this company,
he developed an electricity traceability system using existing
infrastructure, thereby giving visibility to power producers.

Saori Iwano is a 16-year-old environmental activist. She first took
an interest in climate change and other global environmental
issues after watching a speech by Severn Cullis-Suzuki.
Resonating with the message of Greta Thunberg, who organized aschool strike to promote climate awareness, Iwano joined Fridays
For Future Tokyo with the aim of taking such action herself.

Creation of Green Ecosystems through Power
with Visibility of Producers

Isao Sakai is a 19-year-old environmental activist. He first becameaware of the crisis our planet faces from the environmental
science curriculum he experienced while studying in the UnitedStates. This prompted him to join Fridays For Future Tokyo andtake part in activities such as marches for encouraging the fightagainst climate change issues.

EMIKO SHIMBA

Emiko Shimba joined MARUI GROUP in 1999 before beingtransferred to MARUI FACILITIES in 2016. She has been promoting
the use of renewable energy (green businesses) in her position
responsible for power procurement and planning in this company’s Eco Management Division since 2019.

Oishi: Minna-denryoku is currently supplying Shinjuku Maruirelated to environmental and social issues. I therefore feel that

Main Building with electricity originating from wind power gener-

your efforts to grant visibility to producers and business opera-

ated in Aomori, hydropower generated in Nagano, and solar

tors is something really impressive.

power generated in Fukushima.

Oishi: It is not as though any company will do so as long as they

Climate change has recently come to be referred as a climate crisis, drawing attention to the efforts of companies

Shimba: What encouraged you, Mr. Oishi, to begin developing

are using renewable energy. This is especially true given theto address this issue along with the idea of a green recovery aimed at preventing us from returning to the way things

services for promoting the visibility of power producers?

recent trend toward greenwashing, or using green ideas purely

were before the COVID-19 pandemic. The following pages chronicle a discussion on the potential for a green ecosys-

Oishi: It all started when I was riding a commuter train. My

as a marketing ploy. There are some companies that destroy

tem based on the conditions during the COVID-19 ­pandemic and projected after the pandemic by Eiji Oishi, who ismobile phone was running out of battery when I saw a woman

local mountains to develop large-scale solar power generation

promoting the idea of giving visibility to power producers; Saori Iwano and Isao Sakai, members of Fridays For Futurewith a solar panel keyholder hanging from her handbag. I

operations or cut down rain forests in the Philippines to build

Tokyo; and Emiko Shimba, who is responsible for renewable energy procurement at MARUI GROUP.

thought to myself, “I wonder if I can buy some power from her?”biomass plants so that they can sell “renewable” energy toThis experience made me realize that we were now entering into

Japan. This is why the visibility of producers is so important.

an era in which electricity, a resource that was previously

Shimba: We are grateful for the opportunity you provided tomonopolized by a few oil and power companies, could be pro-adopt renewable energy. I have spoken to many other compa-

in tenants dealing in food has made us realize that there is a limit

duced by anyone. The basic concept of our business is to allevi-

nies on this subject, and Minna-denryoku frequently comes up

to the extent to which we can curb electricity use, prompting us

ate wage gaps and reduce poverty. As anyone can produce

in conversation, especially with regard to your impressive block-to shift toward using renewable energy. This undertaking led us

electricity, I figured that we could break up the prior power

chain technologies. We have also invited Mr. Oishi to speak at

Shimba: MARUI GROUP is working to source 100% of the elec-

to talk to Minna-denryoku and eventually to switch to using

monopoly if power producers could inject additional value into

MARUI GROUP meetings. These efforts have proved beneficial

tricity it uses from renewable energy. This goal extends to therenewable energy in Shinjuku Marui Main Building in September

their electricity in the form of their personalities. I thus estab-

as we have seen a rise in employee awareness as well as inpower used in Marui and Modi stores as well as in the offices

2018. We have been progressively introducing renewable energy

lished Minna-denryoku in 2011 with the goal of providing vis-

people switching to purchasing electricity from Minna-denryoku.

and at other business sites where we work. We have previously

at other stores since with the goal of having 50% of our power

ibility to power producers.

MARUI GROUP is also currently engaged in joint projects withfocused primarily on reducing electricity consumption andcoming from renewable sources in the fiscal year ending March

Sakai: Traceability is rare for food and other commodities used

Minna-denryoku. For example, we are developing a scheme

switching to energy-efficient equipment. However, the recent rise31, 2021.

in our daily lives, making it increasingly difficult to see how one isthrough which EPOS cardholders can help us popularize

Stakeholder Connections formed through Visibility ofPower Producers

54

ISAO SAKAI

55

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DIALOGUE 03

renewable energy. I am thoroughly enjoying these projects,

Shimba: MARUI GROUP is developing a system in which thewhich only increases my desire to spread renewable energy.

customer information stored by Epos Card is transferred to

Iwano: I am overjoyed to see companies commit to visions

Minna-denryoku to allow for easy application for their services.

of the societies they want to shape or the future they want to

We look to engage in full-fledged initiatives beginning in fall 2020

protect and take steps to resolve the issues along these paths.

to accelerate the move toward renewable energy by capitalizing

It is not enough to look to increase the value of one’s company

on this system, the desire of our customers to switch to renew-

through green initiatives. I have high praise for how Minna-

able energy, and our co-creation activities with various stake-denryoku goes further to promote a green supply chain andholders. If our more than 7 million EPOS cardholders were to all

to encourage a wide range of companies to adopt renewableembrace renewable energy, it would definitely help transform

energy.

the world.

Sakai: Miss Iwano and I have come up with an idea that we want

Sakai: A lot of people are convinced that renewable energy isto propose to MARUI GROUP. I understand that you plan toexpensive. Currently, the primary users of renewable energy areswitch to renewable energy for all of your offices to accomplishcompanies. So, changing the views of consumers across society

your goal of sourcing 100% of your electricity from renewablein this regard will require companies to increase their use ofenergy. Given that teleworking is becoming increasingly

renewable energy, demonstrating that it is an affordable andcommon amid the COVID-19 pandemic, how about extending

viable option.

the scope of this renewable energy target to include employees
working at home?
Shimba: We are currently procuring high-voltage electricity forlarge-scale facilities. At the moment, we are not procuring the

Potential for Individual Action to Grow into
Larger Movements

type of low-voltage electricity used in households. However, after
we have converted our stores and offices to renewable energy,

Oishi: I understand that you both sent a proposal regarding

we would definitely consider using a scheme for selling electric-

renewable energy to the Ministry of the Environment. How did

ity to standard households should such a scheme exist.

that go?
Iwano: At first, the minister stated that it was not the place of the
Ministry of the Environment to become overly involved in energy

Need to Change Views of Consumers

policy, but that it would do what it could. When we pushed backsaying that it was indeed Japan’s energy policy that we wanted

56

Oishi: I believe that increasing consumer awareness is an impor-to change, he responded by saying that recognition of the needtant task to be tackled with regard to renewable energy. Whenfor cross-organization, government-wide action in this regardchange and renewable energy. I continued to participate inOishi: I completely agree. I expect that we will remove various

selecting power suppliers, consumers tend to use price com­

is spreading.

marches and other activities, and in September 2019, my motherbarriers going forward, allowing people to live more creatively.

parison sites to choose the most affordable option. I hear that

Oishi: That is very powerful. When advocates for future genera-

chose to take time off from work to join me in a march. We were

One of these barriers is a lack of visibility of the involved parties.

you, Mr. Sakai and Miss Iwano, are using our services. Whattions, for which my generation is creating an increasing burden,

also able to switch to renewable energy thanks to the approval

This is why I think that building relationships in which bothprompted you to do so?

speak up in objection, it is greatly persuasive.

of my mother. A lot has changed. Today, we are even working toparties are visible to one another is the most important theme

Sakai: In my case, I heard about you during the shooting of an

Sakai: I think it is important to shape the new normal to be more

reduce animal products in our diet.

when it comes to shaping the world after the COVID-19 pan-online program I was invited to take part in. My mother watchedfriendly toward the environment, rather than allowing us to return

Oishi: I am amazed. Hearing about how our services havedemic. I was amazed to see how deeply you two have thought

the program and decided to switch to your services.

to the way things were before the COVID-19 pandemic after it

sparked family discussion and eventually action, leading you toabout these issues. I did not practice anywhere near this deep a

Iwano: Last year, I took part in some activities together withends. The recent rise in meteorological disasters makes it pain-

adopt renewable energy, has truly made my efforts thus far

level of introspection when I was in school. I hope that you will

activists promoting carbon-free approaches. They told me thatfully clear that we are approaching our time limit for addressing

worthwhile. I am sure that my employees will feel the same.

maintain this confidence to communicate how you think weclimate change and energy issues were intimately connectedenvironmental issues. We therefore must act immediately,

Sakai: If everyone does what they can, I am sure that thoseshould shape the future and your belief that it is your generationand that nationwide measures are being implemented tobanding together with others from our generation to present aaround them will take notice. It is enough for everyone to do just

who should shape this future while also turning those words into

address these issues. This caused me to modify my own energy

unified voice.

what they are able to. In fact, I think that lowering the barrier toactions. I have no doubt that your efforts will help guide society

use. When researching options for adopting renewable energy, I

Shimba: Did you see any changes in the people around you as aaction to allow for more widespread action is important. Ourin a positive direction.

happened upon Minna-denryoku, and my decision was made.

result of your activism?

mission is not to judge the intent of others; it is to continue toOishi: Thank you for your patronage. When consumers become

Iwano: My family has changed the most. I think it is rare to talkadvocate our ideals. It is crucial for us to remain free ofaware of climate change issues and start to adopt renewable

about social issues with your family, despite how you are always

unneeded worries so that we can keep broadcasting how weenergy, it will have an impact on companies as well.

together. I, however, was persistent in talking about climate

think the future needs to change.

57

Co-Creation Ecosystem [ Action for the Future ]Ability to Purchase Quality Foods Matched to One’s Body
in the Appropriate Portions
In the past, ingredients and food were prepared in a manner that was
designed to accommodate large families and preparation at home.
However, nuclear families, two-income households, and people living
alone have become commonplace in Japan, resulting in a rise ininstances of people eating alone. At the same time, younger generations, for whom fast food has been a familiar option since a young age,are coming to embrace organic goods out of a desire to eat foods thatare better for their health. These trends are generating anticipation for

CO-CREATION ECOSYSTEM

food products that can be customized and personalized so that every

ACTION FOR THE FUTURE

priate portions. The emergence of such options will give rise to a newcustomer can purchase quality foods matched to their bodies in approcircular food economy that makes mealtime more enjoyable while
reducing food loss. MARUI GROUP recognizes that there are immediate
actions we can take to help realize such an economy.

PAST

PRESENT

Large, multi-generational families

Nuclear families, two-income
households, people living alone

Purchasing of large amounts offood at once

More frequent purchases of smaller
amounts of foodHigh-calorie diets, rising lifestyle diseases

Trend toward healthy and organic foods

Lack of food safety and traceability

Peace of mind provided by visibility of producers

Logical Conclusion of Pursuit of Abundance andConvenience of Food
The foods we purchase and eat as a matter of habit are provided to us through a supply chain encompassing production, import or export, processing preparation, consumption, and disposal. In fact, 1.3 billion tons of food waste
are produced around the world each year, meaning that roughly one-third of all of the food produced for human02

Diverse Options

consumption is thrown away.*1 This amount refers to the excess food and ingredients that are produced and disposed of before they pass into consumer hands and the food that we throw away after purchase. This waste isreferred to as food loss and is becoming a serious social issue. Everyone, whether a producer, seller, or consumer,needs to be cognizant of the food issues to which they contribute.
*1 Source: Global Food Losses and Food Waste, Food and Agriculture Organization of the United Nations, 2011

for the Future of Food
Food is indispensable to our daily lives, and globalization and technological progress are making food moreabundant and convenient. In Japan, people are now able to purchase their favorite types of food wheneverthey like. Moreover, they can choose consumption styles for these foods based on their needs at a given

Sustainable Food Options for Shaping the Future
It is estimated that between 21% and 37% of the total amount of green-

Portion of Global Greenhouse Gas Emissions
Attributable to Food Production and Distribution*2

house gases emitted by society is attributable to the production anddistribution of food. A large portion of these gases come from livestock.

time, including making meals by hand, using kits for home preparation, eating in restaurants, or buying

Cows, for example, emit methane gas, which is 28 times more effective

pre-prepared food. However, this convenience is also contributing to food loss as well as emissions ofthan CO2 at trapping heat in the atmosphere, while also consuming

greenhouse gases that damage the global environment.

massive amounts of water and grains. Accordingly, such livestock
threatens to damage the global environment. This reality has directedattention toward vegan foods, which do not use animal-derived ingredi-

21%–37%

ents, instead replacing them with soy and other alternatives. This type ofmeat substitute is also gaining attention in Japan. Eating is an essential
part of living. Accordingly, if everyone were to replace just one meal aweek with a vegan alternative, it could have a significant benefit toward
limiting global warming. We are now pressed with the need to reassess
our daily meals and the amount of food we waste to consider the
possibility of sustainable food options in our actions.
*2 Represents greenhouse gas emissions associated with human activities
Source: Special Report on Climate Change and Land,
Intergovernmental Panel on Climate Change, 2019

58
58

59

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DIALOGUE 04

Various Paths to Veganism

Ishii: What was your path to veganism, Ms. Uezono?
Uezono: My path traces back to my 10-year-old daughter’s

Ishii: Mr. Derycz, you are promoting veganism under your brand,elementary school homework assignment. She brought home

Vegan Prince, in Japan. Is your family also vegan?

a survey on the degree of eco-friendliness of our lifestyles.

Derycz: My family is not completely vegan. I became a vegan at

All members of my family checked the actions we did andVeganism, which entails avoiding the eating or using of animal-derived products, is gaining atten-

age 17, when I was in high school, because I wanted to help

didn’t do and then tallied the results. One of the actions wastion as a sustainable lifestyle. Vegan consultant Alex Derycz stresses that veganism is not a hardpreserve the environment and protect animals. My father and“eat fresh and seasonal vegetables.” I was surprised that thislifestyle to adopt. After appearing on MARUI GROUP’s community site in June 2016, Derycz once

little brother recently embraced veganism while my little sister

was considered “eco-friendly.” I mean, when you think of eco-again joins us to discuss the potential of veganism with two MARUI GROUP employees.

and her boyfriend are vegetarians. My big brother and motherfriendliness, you tend to think of turning off lights and not

are neither vegan nor vegetarian, but their refrigerators areleaving water running, right? When my daughter asked why

mainly stocked with vegan food. However, if someone who is

this was eco-friendly, I could only reply “because it is good for

unfamiliar with vegan food were to open their refrigerators, they

the environment.” However, I could not help but be curious.

would not know that their contents were vegan. They would see

Committed to finding the answer, I studied the matter with mythings that look like meat and cheese without realizing that thesedaughter and came to realize that the issue was my lack of“meats,” “cheeses,” and even “ice creams” were all made entirely

environmental awareness.

from plants. In fact, the foods I eat now do not really taste that

Ishii: It is not often that you see a homework assignment teachdifferent from those I ate before I became a vegan.

both children and their parents. I was not aware of these kinds ofUezono: Did your mother learn to cook vegan food for your father?

issues when I was in elementary school. There are a lot of

Derycz: I think my father cooks for himself. The reason hedifferent paths to veganism, like that of Mr. Derycz’s father or

became a vegan was to prepare for triathlons. When he turned

your path, Ms. Uezono. I love meat. However, my big sister

50, he suddenly decided to take part in the Ironman race, thebecame a vegan about a year ago. Her path to veganism was alongest of all triathlon events. He needed to get in shape toconcern for animal welfare and issues surrounding clothing

participate in this race. When researching the diet that would

made from animals. I didn’t know anything about veganism atprovide the best nutritional balance, he found that it was a dietthe time, but one day my sister and I went to a vegan restaurant.

consisting primarily of vegetables, with the only meat being a

I was shocked at how good the vegan hamburger I ate there

little bit of chicken. This is when he realized that his ideal dietwas. You wouldn’t have guessed that it was vegan if no one told

was essentially a vegan diet.

you. I was also amazed at how good the custard pudding tasted,

Potential of Vegan Lifestyles

Using eco-friendly materials to make clothing, belts, andaccessories is a way to enjoy fashion while contributing to theenvironment, feeding two birds with one scone, if you will.
Alex Derycz
Model, Entertainer
Born in 1996, Alex Derycz comes from a multicultural background, with his father being from theUnited States and his mother being from France, and speaks five languages—English, French, Spanish,
Japanese, and German. Adopting a vegan lifestyle at age 17, Derycz moved to Japan after graduatingfrom the University of California, Los Angeles in 2017 to promote veganism. While working as a modeland entertainer, he also provides information on vegan products, stores, and lifestyles via social media
under his brand, Vegan Prince. After being named Ocean Ambassador in 2019, he leveraged thepersonal networks he had established in Japan’s entertainment industry to launch a vegan consulting
business in 2020. Employing more than 100 vegan influencers and 100 non-Japanese social media
influencers, Derycz is developing a business that includes public relations and vegan-related consulting and collaborative product planning and development with influencers.

Please refer to the following website for Alex Derycz’s appearancein June 2016 (Japanese only).
www.to-mare.com/tf/2020/s001.html

60

61

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DIALOGUE 04

A vegan diet is great for your health as it lets you eat plentyof vegetables while offering satisfactory substitutes for meat.
I don’t think that there is any other way to contribute to theenvironment that is so enjoyable.
Hiroko Uezono
Soka Call Center
Epos Card Co., Ltd. (joined in 2004)

Diverse Lifestyles

Uezono: A vegan diet is great for your health as it lets you eat
plenty of vegetables while offering satisfactory substitutes for

Ishii: MARUI GROUP began charging for shopping bags in Julymeat. I don’t think that there is any other way to contribute to2020. I think it was the rise in environmental awareness thatthe environment that is so enjoyable. My father once had to beprompted this move. Vegan foods also started appearing in

hospitalized for heart issues, after which the doctor placed

supermarkets around that time. I hope that we are able to involve

dietary restrictions on him. He had to cut back on sodium, andmore people in the drive to spread awareness regarding vegan-even meat was deemed to be problematic. I had him eat a meal

ism through venues such as the videos posted on our commu-

using vegan meat substitutes, and he didn’t even notice thenity site.

difference. My daughter, meanwhile, is allergic to eggs and can’t

Derycz: I suspect that there are many people within MARUIeat mayonnaise. When I make vegan mayonnaise, however,despite not using eggs. I think that the taste of vegan food is afashion, or fashion that does not use animal materials, is gaining

GROUP who are interested in veganism like you two. Do you

she is happy to use it.

simple yet legitimate path to veganism.

popularity. One example would be the shoes I am wearing righthave any plans to launch vegan-related initiatives within the

Derycz: Vegan meals can be enjoyed by everyone, whether they

Derycz: It looks like everyone has their own path to veganism.

now—they are made of cork.

Company?

are recovering from an illness, have allergies, or are limited in

Ishii: We have launched a new section on the MARUI GROUP

Ishii: Cork? You mean like a wine cork?

Ishii: We are planning vegan-related initiatives as part of ourwhat they can eat due to their religion, as is the case for Muslims

community site in which employees are able to post YouTube-

Derycz: The very same. My belt too is made of cork, even thoughbusiness. Personally, though, I want to introduce vegan meals

and Hindus. That is something I love about vegan foods: they let

style views based on the theme of the United Nations Sustainable

it looks like leather.

into the menus of company cafeterias. Even meat lovers like me

us all sit down and eat at the same table.

Development Goals. A call went out asking people to submit

Uezono: I never would have thought that was cork. It looks very

can help preserve the environment by eating vegan once a day,Ishii: Vegan foods support diverse lifestyles by letting us form

videos, and I volunteered out of my desire to spread awarenessfashionable.

or even just once a week. If everyone at MARUI GROUP were toconnections with a wide variety of people around the worldof the appeal of eco-friendly vegan food. I was chosen and was

Derycz: Using eco-friendly materials to make clothing, belts, anddo this, the benefits would be massive.

through food.

able to talk about veganism as part of the first wave of videos!

accessories is a way to enjoy fashion while contributing to the

Derycz: When considering embracing veganism, some people

Derycz: That is wonderful. I think that such efforts have a lot ofenvironment, feeding two birds with one scone, if you will.

think they need to take an “all or nothing” approach. However,meaning because there are so many people who are uninformed

Uezono: Speaking of fashion, back when furs were in style, I

I believe your approach, Ms. Ishii, is just fine. You can just eat

or misinformed about veganism.

remember collecting a number of animal products, ranging fromvegan more often or maybe make one day a week a vegan day.

fox, to raccoon dog, and even alligator. I wish I had recognized

It is okay to adapt the lifestyle to meet your needs. There arethese issues earlier as I now regret how I contributed to theactually a lot of people who don’t eat vegan at work, but are fully

problem back then.

vegan at home.

Please refer to the following website for community site videos(Japanese only).
www.to-mare.com/ytube/

A video of this conversation is available on MARUI GROUP’s community
site (Japanese only).
www.to-mare.com/tf/2020/i001.html

Ishii: A lot of people in their 20s are actually using vegan products in ways that might not always be apparent. For example, I

Option of Veganism Available to Future Generations

use vegan cosmetics. Recently, using cosmetics that are nottested on animals is coming to be seen as something

Ishii: Veganism is primarily thought of in terms of food, but it is

fashionable.

actually a lifestyle that rejects all animal-derived products,

Derycz: It is just as you say. Cruelty-free products* are coming towhether they be clothing or other items. Mr. Derycz, how does

be regarded as fashionable while also having less adverse

your veganism influence your life in areas other than food.

impacts on the environment, meaning that they can be pur-

Derycz: If we look at fashion, for example, the majority of items,chased with peace of mind.

such as leather coats, shoes, and belts, are made from animals.
Wool and silk also come from animals. Lately, sustainable vegan62* Products and their source materials that were not tested on animals during thedevelopment or manufacturing processes

Even meat lovers like me can help preserve the environment by eating vegan once a day, or even just once a week.
Rie Ishii


Bag Sales Floor, Shinjuku Marui Main Building
MARUI CO., LTD. (joined in 2019)(As of August 2020)

63

CO-CREATIONPOINT

Co-Creation Ecosystem [ Corporate Culture ]1

Intra-Group Company Profession Change System
for Fostering Empathy and Innovation

CO-CREATION ECOSYSTEMCORPORATE CULTURE

Development of Autonomous Organizations
That Continuously Produce Innovation
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 our company” inspires us to view companies as a platform for the growth of their employees. We are therefore fostering human resources
who are accepting toward one another, regardless of their age, gender, lifestyle, or sexual preference,
and who can support our business model of co-creating happiness. We adopted a unique pure holding
company system in 2007, granting our more than 5,000 employees access to shared Groupwide humanresource systems. This move made it possible to realize such systems as intra-Group company profession changes and Groupwide project teams open to voluntary participation. To accelerate its businessmerging retailing, fintech, and now co-creative investment, MARUI GROUP is transforming its corporate
culture based on three points. Through these transformations, we aim to develop autonomous human

MARUI GROUP’s profession change system is a unique human

The longer one works in the same position, the more they will

resource system that is shared throughout the Group and thatbe susceptible to being trapped in the preconceptions of thatallows for relocations between the Company and 12 Groupposition. Being placed in a new profession, however, can enable

companies. This system enables employees to experience a

employees to escape preconceptions. Such transitions thus

wide range of businesses, including retail at stores, IT, logistics,

contribute to the growth of the employees undergoing profession

and credit card services through a program that is almost likechanges as well as to transformations in the new workplaces inchanging one’s profession. We have been promoting this system

which they are placed. Moreover, cross-Group relocations form

since April 2013, and 2,626 employees, or 61% of our entire

connections throughout the Group, contributing to the enhance-

employee base, had undergone profession changes as of April 1,

ment of integrated Group management.

2020. A survey of employees that had undergone profession

Going forward, we will complement these relocations bychanges conducted in November 2016 revealed that 86% of

ramping up the secondment of employees to co-creative invest-

such employees felt they had experienced personal growth after

ees and other companies. We thereby aim to foster human

the change, indicating that this system is contributing to theresources that are adept at responding to change along with acultivation of highly resilient employees.

corporate culture founded on open communication that is afertile ground for innovation.

resources and a corporate culture founded on communication that can facilitate the continuous production of innovation via means such as co-creation with start-up companies.
Number of Employees Changing Positions Between Group Companies

OPEN INNOVATIONHAPPINESS

FY2016FY2017FY2018FY2019FY2020

Number of employees changing positions (aggregate)

1,418

1,833

2,210

2,541

2,626

Ratio of employees changing positions (aggregate)

25%

34%

43%

52%

61%

FY2020Note: Figures use the total of employees changing positions in April and October of each year (excluding officers and managers).

Number of Employees Undergoing Secondment to Co-Creative Investees and Other Companies

Corporate Culture Transformations Enabling New Business Strategies

FY2016FY2017FY2018FY2019Number of employees undergoing secondment (aggregate)

0

1

9

19

35

Number of companies receiving seconded employees (aggregate)

0

1

6

12

17

Ongoing growth by today’s companies requires them to be ableof employees. The shaping of such corporate cultures takes

to respond to sudden operating environment changes by con-place naturally over long periods of time, and this process

stantly evolving their business models and structures after theyrequires creativity. Accordingly, there is no order or instruction

have become obsolete. However, changes in business strate-that can stimulate this process. For this reason, we feel thatgies will prove ineffectual if the corporate culture that drives

corporate culture transformations should be spurred in conjunc-

human resources who, armed with a deep understanding of our core values, are able to create new businesses. Our

those strategies remains the same. Corporate cultures shouldtion with business strategies after having taken the time toultimate goal is to develop a corporate culture in which co-creative human resources influence those around them,

not be built on the commitment of management but shouldcultivate the necessary foundations.

generating a virtuous cycle in which their actions lead to the development of new co-creative human resources, who inrather be shaped from the bottom up by the autonomous action

MESSAGE FROM AN EMPLOYEE 
One of the human resource policies under MARUI GROUP’s business model merging retailing, fintech, and co-creative
investment is the cultivation of co-creative human resources. We therefore must develop frameworks for fostering

turn stimulate the growth of additional co-creative human resources. We began seconding employees to D2C brandand other strategic companies in 2018, and approximately 40 employees have undergone secondment over theroughly three years that followed. When these employees return to the Company, they actively apply the lessons

Mathematical Relationship Between “Corporate Cultures” and “Business Strategies”

New Business Strategies
New Corporate Cultures64

learned through their secondment from the perspectives of both business and corporate culture. Some employees areseconded primarily to facilitate co-creation activities. By positioning these employees in divisions in fields relevant totheir secondment upon their return, they can continue to promote co-creation from within the organization to acceler-

Masami Endoh
Chief Manager
Human Resources Section
Human Resources Department
MARUI GROUP CO., LTD.

ate our co-creation initiatives. Furthermore, the venture company perspectives these employees bring back with them

Improvement of Corporate Valueare being incorporated into organizational management to co-create a new work communication culture.

65

POINT

Co-Creation Ecosystem [ Corporate Culture ]2

Autonomous Organization Founded on
Voluntary Employee Participation
Over the more than a decade since the Company underwent afor discussion of important management themes. Employees,

management crisis in 2007, we have continued to promote a

who are the main driving force behind our business, can partici-

culture of voluntary participation by employees. Undertaking apate regardless of their age and rank. With each iteration, the

new endeavor or creating something completely new can place anumber of applicants greatly exceeds the number of available

great burden on employees. The potential to create innovation isslots, and we have thus chosen to select members based onmuch greater when an employee has chosen to tackle such aessays. Furthermore, as all Group employees are provided

challenge of their own volition, as opposed to being ordered toaccess to the same human resource systems, employees fromdo so by supervisors. It is for this reason that MARUI GROUP has

across the Group can apply, and those selected can participate

established Groupwide project teams and the Medium-Termin meetings during workhours from wherever they work in Japan.

Management Visionary Committee, which function as forums

Groupwide Project Teams Encouraging Autonomous
Thought and Action
Members selected for Groupwide project teams discuss the given
themes together with their colleagues and propose ideas over a periodof one year, and take the knowledge and ideas learned while on the
project teams back to their workplaces. This insight is used to formulate

Diversity & Inclusion
Project Team
Launched in 2011, the Diversity &Inclusion Project Team’s activities are
aimed at fostering respect andcontributing to the happiness of all
people by encouraging receptivenessto the diversity of all stakeholders.

and implement action plans for shaping the business and work styles of2021, project team activities will include a combination of online andoffline events.
Please refer to the following website for details.
www.0101maruigroup.co.jp/en/sustainability/theme02/
development_01.html

Committee Meeting Discussion Topics in 2019
Happiness × AI—Lecture by Dr. Kazuo Yano, Fellow and Director andHappiness Project Leader of Future Investment Division of Hitachi, Ltd.
Feb.

forum for discussing various topics that will be important to the futureof Group management. Discussions are not limited to in-house person-

Financial Inclusion through Insurance—Lecture by Tooru Ushiroda,
Representative of Office Baton Insurance Consultation OfficeJun.

Background for Direct-to-Consumer Brands, Physical Stores in a DigitalSociety, and Retail as a Service—Lecture by Yuichiro Mori, CEO/Founder of
FABRIC TOKYO Inc.

Jul.

Japan’s First Employee-Driven Effort to Source 100% of Electricity from
Renewable Power with Visibility of Producers: Familiarity with the SDGs
through the World’s First Venture Combining Power and Blockchain—
Eiji Oishi, Representative Director CEO of Minna-denryoku, Inc.

Oct.

Equal Opportunities Offered through Financial Access—Lecture by Taejun
Shin, Co-Founder, Representative Director & CEO of Gojo & Company, Inc.

Nov.

Activity report by ultralong-term management research committee—Reportby Yutaka Matsuo, Professor from the Department of Technology
Management for Innovation; Artifacts, Center for Engineering; Graduate
School of Engineering, Tokyo University; and Yoshiki Ishikawa, Co-Founderand Executive Vice President of Campus for H Inc.

nel as external experts are also called to give lectures. At both online

received from employees of various ranks and divisions for each

Wellbeing Promotion
Project Team

iteration.

Established in 2016, the Wellbeing
Promotion Project Team believes it isimportant to go beyond the basic
approach of preventing illness tofoster more energized and happy
employees. It is thus promoting
wellness management that combines these approaches inside andoutside of the Company.

Future View by kono yubi to-mare
MARUI GROUP posts summaries of the lectures byexternal lecturers conducted at meetings of theMedium-Term Management Visionary Committee

Dec.

course of MARUI GROUP through the maxims of experts shaping

Committee Meeting Discussion Topics in 2020

MESSAGE FROM AN EMPLOYEE 

Feb.

Businesses That Contribute to Sustainable Societies—Lecture by
Akihiko Nagata, Executive Vice President and Head of the Healthcare Company
at euglena Co., Ltd.

Mar.

Forum for sharing information on activities of the Wellbeing Promotion
Project Team

Jun.

Life After the COVID-19 Pandemic: How to Realize Ideals and Happy
Living—Lecture by Yoshiki Ishikawa, Representative Director of Well-being
for Planet Earth Foundation

Jul.

Panel discussion by employees having undergone profession changes orsecondment and work forumAug.

D2C Brands Shaping the Future—Lecture by Yasuhiro Sasaki, Director
and Business Designer of Takram Inc. and Yuichiro Mori, CEO/Founder of
FABRIC TOKYO Inc.

I applied for the Wellbeing Promotion Project Team because the Misato Web Sales Distribution Center, where I work,ranked among the worst 10 in the Group in the stress check conducted in 2019. I volunteered because I figured thatinvolvement in the project team would give me insights into how we could reform our organization. In the project team
activities, Dr. Reiko Kojima, a company physician and general manager of the Wellbeing Promotion Department, held alecture teaching us how to manage energy related to the body, mood, mental state, and thinking. This lecture was easy
to understand and very interesting, and I learned a lot. Apparently, Dr. Kojima has been giving this lecture since theinception of the Wellbeing Promotion Project Team, which is probably why wellness management is such an
entrenched concept at MARUI GROUP. This lecture made me more committed to fully engaging with both my work andmy family and enabled me to respond more positively to challenges. I am currently focusing my efforts on future
generations. I want children to be able to learn and experience the fun and motivation of working so that they will havebig dreams for the future.

66

Masaki Kimoto
Wellbeing Promotion
Project Team Member
MARUI Fulfillment Department
Solutions Business Division
MOVING CO., LTD.

Development of a Comfortable Society That Bridges the Gap Between
Ideals and Reality—Lecture by Shoji Marukawa, Representative Director of
Nature Innovation Group Co., Ltd.
Panel discussion by employees having undergone profession changes orsecondment

on its community site. We invite you to learn about the future
the future.

Venture Companies and New Businesses Viewed from the Perspective ofVenture Capital—Lecture by Soichi Tajima, CEO and General Partner ofGenesia Ventures, Inc.

Mar.

300 members that are selected from the 1,000–1,500 applications

producing a new set of autonomous employees with increased knowlconducive to business innovation. In the fiscal year ending March 31,

The Medium-Term Management Visionary Committee is an internaland offline events, active discussion is conducted among the roughly

their workplaces. Project members are changed on an annual basis,edge and awareness each year and fostering a corporate culture that is

Medium-Term Management Visionary Committee
Receiving Over 1,000 Applications for Participation
with Each Iteration

Please refer to the following website for summaries of the lecturesby external lecturers (Japanese only).
www.to-mare.com/fv/

Sep.

Co-Creation with the Future Generations That Will Shape the Future—Lecture
by Yusuke Mizuno, Representative Director and CEO of Life is Tech, Inc.
Investor relations information sharing forum

67

POINT

Co-Creation Ecosystem [ Corporate Culture ]3

Wellness Management Energizing Employees
and Improving Happiness
The goal of MARUI GROUP’s wellness management is not justensuring that all of our employees are healthy; we aim to makepracticed on a Groupwide scale through coordination between
the Wellbeing Promotion Department and MARUI GROUP’s
health insurance union (see Figure 1).

including one that stresses the diverse thought patterns of people and mployees able to viewEfrom a different perspectiveEmployees unable to view
from a different perspective

how awareness of this fact and different perspectives can prevent
supervisors play a central role while employees teach one another. To

Figure 1: MARUI GROUP’s Wellness Management
Wellness management at MARUI GROUP is aimed at energizing all employees, not just those who are ill or high risk, and invigorating all of society.

+has been positioned as an important element of our strategies
under the medium-term management plan and is thus being

MARUI GROUP conducts a variety of self-care training programs,

Figure 4: Employees Able to View Their Thought Patterns from a
Different Perspective

mental health issues. A characteristic of this program is how workplace

all of society a happier place by creating new value from theperspectives of wellness and well-being. Wellness management

Self-Care Training

0

representing more than 80% of all full-time employees (see Figure 4).

Improvement of Organizational Engagement
through Stress Checks

Not illNoabnormalities

The results of organization analyses via stress checks are being used to

Employees Deepening Their Understanding Regarding Self-Care
Understanding greatly deepened
67%
Understanding somewhat deepened 31%
Understanding slightly deepened
1%
Understanding not deepened1%

institute targeted measures aimed at items identified as important forStandard healthcare management initiatives

8%

date, a total of 5,400 employees have taken part in these programs,

High energy–

92%

specific workplaces (items that will contribute to improve work engage-

Note: Based on September 2020 employee surveyment). Committees are assembled to examine the results at individual
workplaces so that each workplace can take proactive measures toWork Style Reforms Creating a Venue forContributions of All Employees

Figure 2: Average Monthly Overtime Hours per Person(see Figure 6). Successful measures will be shared throughout the10.9 hours
Head officemonthly overtime decreased to 3.5 hours in the fiscal year ended March
7.0 hours

Wellbeing Promotion Project Team andResilience Program

6.1 hours

Translation of Psychological Capital into Corporate Value
value. One facet of MARUI GROUP’s efforts for energizing employees isto track employee happiness. With the help of Hitachi, Ltd., we began

Stores0.8 hours

measuring data on the movements of employees’ bodies using the

FY2020sensors installed in their smartphones to measure their degree ofdata to change their behavior

awareness and understanding of wellness management. In its third year,

while assessing the types of work

this project team extended its activities to outside of the Company. The

70%

styles that contribute to improved

fourth year of this project team’s activities kicked off in the midst of the
COVID-19 pandemic. Members are thus highly motivated to makecontributions from the perspective of wellness and well-being, and they
continue to pursue this goal through a process of trial and error together
with various stakeholders. The project team members received strong60%—— Ratio of employees that take an optimistic
outlook toward adversity

and well-being activities.

50.9

50.0

FY2016FY2017FY2018FY2019administered surveys to employ-

High work engagement
Members of happiness tracking project

ees to measure their psychologi-

50%

FY2020At risk of fatigue

55

Motivated and energized

45 Workplace A

50

55

cal capital.*2 These surveys showed a 0.27 percentage point increase inpsychological capital. Analyses based on massive quantities of data

40%

have found that this improvement translates to a rise of 5.3% in operating income (approximately ¥2.1 billion).

30%

20%

These wellness management initiatives have been highly evaluated,

Start of Companywide
Resilience Program
June 2012

June 2016

As a result of these activities, we have since seen massive improve-

July 2020

Stock Selection arranged by the Ministry of Economy, Trade andIndustry and the Tokyo Stock Exchange for three consecutive years. In
addition, the Company has received the highest rank of A in Development

ments in self-efficacy and other indicators related to happiness inBank of Japan Inc.’s DBJ Employees’ Health Management Rated Loan

Companywide surveys. Specific items for which scores have improved

Workplace D

resulting in MARUI GROUP being included in the Health & Productivity
Workplace B

Unenergized

Low stressResilience Program, enabling them to better support internal wellness

50.9

50.5

High stressapproximately 100 officers and managers had taken part in the

50.9
50.6

score of employee teams, we

incredibly understanding of the ­autonomous activities of project teammembers, and they offer proactive support. As of September 2020,

51.4

Figure 6: Changes at Workplaces After Conducting Two Stress
Checks in One Year

ment on raising the happiness—— Ratio of employees that utilize strengths andindividual talents to tackle new challenges

support from senior managers who have participated in the Resilience
Program, which targets officers and managers. These managers are

51.7*1 The nationwide average is 50.0. Larger figures represent more favorable results.

scores. After a three-week experi-—— Ratio of employees feeling respected in theworkplace

52.2

51.0

happiness. Employees use thisFigure 3: Indicators Related to Happiness

53.0
52.6

52.5

52.5

51.5

3.5 hours

FY2008—— Work engagement

52.0

Energizing employees is of utmost importance to improving corporate—— Stress

53.0

Company in the future to energize other workplaces.

Consolidated

Promotion Project Team is now in its fourth year. In the first and second
years of its activities, this project team primarily focused on spreading

53.5

in the second check, with lower stress and higher work engagement

hour management and work system diversification since 2008. As a

Established in 2016 as an official Groupwide project team, the Wellbeingof improvements in stress and work engagement scores (see Figure 5).
checks a year. Almost all of these workplaces showed improvements

20.0 hours

reforms, MARUI GROUP has been advancing reforms pertaining to work31, 2020, representing notable increases in productivity (see Figure 2).

Figure 5: Stress and Work Engagement Scores*1

In addition, 24 workplaces have volunteered to conduct two stress

Recognizing that healthcare management is one facet of work style

result, average annual overtime hours decreased to 42 and average

address any issues. These efforts have led to four consecutive years

Workplace C

45

Unmotivated

Low work engagement

Program.

include “I take an optimistic outlook toward adversity,” “I feel as though I
am respected in the workplace,” and “I utilize my strengths and individual*2 Indicator proposed by U.S. management researcher Fred Luthans that represents
employees’ work confidence and overall positivity and that correlates with businessprofitability

talents to tackle new challenges” (see Figure 3).

Members of Fourth Wellbeing Promotion Project Team

68

69

Co-Creation Ecosystem [ Corporate Culture ]Translation of Individual Strengths into Organizational
Capabilities via Understanding and Interaction

Desired Characteristics in Employees

Propensity for innovation
based on a capacity for empathy

MARUI GROUP has established a framework for translating the human capital represented by the individual strengths of its employees
into organizational capital. This framework is the integrated Group management achieved through the shared Groupwide humanresource systems made possible by the transition to a pure holding company. Individual strengths are merely tacit knowledge. It is whenthese strengths are focused through the lens of co-creation with customers or other stakeholders or through MARUI GROUP’s uniquecorporate culture that they are able to form new, greater capabilities. The resulting organizational capabilities underpin the co-creation ofvalue through our business model integrating retailing, finance, and IT.

MARUI GROUP’s pure holding company system is unique in that all Group
employees are hired through the Company and that, even if an employee isappointed to an operating company, they will still have access to the same
shared human resource systems available at the Company. MARUI GROUP

Employees that embody acustomer-first mentality andare adept at responding tochange adopt a Groupwide
perspective.

employees are provided with a range of opportunities, including the intraGroup profession change system that enables them to hone their individual
specialized skills and expertise, the Groupwide project teams that allow for
discussions that exceed the boundaries of age or position, and chances for

Intra-Group Profession

engagement with stakeholders and secondment to start-up companies. By

Changes Made Possible throughmerging the capabilities of our employees through these opportunities, we

Shared Human Resource Systemtranslate the human capital represented by their expertise and knowledge

By experiencing various professions,

into organizational capital for the Group.

employees develop a propensity forinnovation that inspires them to enjoychanges and drives them to
Employees foster acapacity for empathy byengaging with customer
needs at MARUI CO., LTD.,and other positions.

autonomous action.

All employees first join
MARUI GROUP CO., LTD.

Unification

Innovation

Forward-looking mind-sets
are cultivated among employees through discussions of management
issues across age and­position lines in Groupwide
project teams.

Co-creation of new businesses based on the perspective of inclusion ispracticed with start-up
companies and otherpartners.

Exchanges

Empathy

Employees are invited toescape preconceptions
through intra-Group company profession changes.

All employees experience
work in stores after joining
to foster business processes founded on cocreation with customers.

Individual Strengths (Human Capital)
Development of our people

Individual expertise and knowledge can be personaland difficult to transmit.

Capacity for Empathy

Propensity for Innovation

Ability to comprehend the position of others and build sharedunderstanding to be more sympathetic to them

• Ambition to continue growing by setting goals and learning• Love of people and bringing joy to them
• Drive to understand the thoughts and pain of others• Desire to work for the benefit of others

70

Organizational Capabilities (Organizational Capital)
Entrenchment of expertise and knowledge of individual employees
into the organization through its business model andcorporate culture

Development of our company

Human resources witha capacity for empathy and apropensity for innovation enact
proposals that are not boundby preconceptions.

Unique Pure Holding Company System

The concentration of individual
strengths gives form to thecorporate philosophy calling on us
to “equate the development of ourpeople with the development ofour company” and makes bothsustainability and earnings growth
possible.

Drive to autonomous thought and action• Aspiration of tackling unprecedented challenges

Ability to find joy in changes and differences• Positivity required to detect changes in society and the environment and to change oneself in response• Receptiveness toward diverse perspectives and opinions

71

D

DIALOGUE 05

Ishikawa: In the past, society has stressed a single path to

Values Spreading Among Millennials

success, underscored by the idea that good lives come fromREIKO
KOJIMAYOSHIKIISHIKAWAHIROSHIAOI

Happiness Arising from Well-being Amid
the COVID-19 Pandemic
The idea that physical and mental health is intrinsically linked to happiness is at the heart ofthe concept of well-being. As we are pressed to reassess our values amid the global COVID-19 pandemic,
the concept of well-being is gathering attention. In July 2020, President Hiroshi Aoi and MARUI GROUP’s own
Dr. Reiko Kojima spoke with Yoshiki Ishikawa, a leading well-being researcher and an advisor at the Company,on the topic of how to achieve happiness in the new era.

72

Aoi: A lot of talk of stakeholder capitalism has been taking place

working at good companies and going to good schools. My

since 2019, representing the rise of a new sense of value thatgeneration grew up amid the last breaths of this view. People

prioritizes contributions to the interests of all stakeholders, ayounger than me, on the other hand, are more interested in

shift from the approach of solely focusing on shareholder inter-finding the lifestyle that they personally think is best. Hardly any

ests. During the process of examining the interests of stakehold-of them are obsessed with becoming rich at all costs. This isers, we couldn’t help but wonder just how many people areunderstandable considering you don’t need to be rich thesesatisfied purely by having their monetary interests accommo-

days to be happy. People can afford most things.

dated. Monetary interests are, of course, something we need to

Aoi: I think that people who have fully sated the desires foraddress. However, we are also expected to provide value thatphysical things that can be satisfied with money will find them-cannot be measured monetarily. This statement is backed byselves starved for things money can’t buy. This hunger arises

data showing that around 60% of millennials expect companies

from a sense of external pressure that restricts and prevents one

to place the resolution of social issues above the pursuit offrom feeling free. This pressure could be seen as associated withprofit. This belief, which is antithetical to the prior approach of

the desires of younger generations for things like diversity,

shareholder capitalism, has been spreading rapidly in recent

sustainability, and well-being.

years. This trend serves as the backdrop for the recent focus on

Ishikawa: Up until now, the idea of capitalism was seen as

well-being.

absolute. The children of today, however, probably do not agree.

Ishikawa: I have only been promoting well-being in Japan for just

We cannot help but wonder what the right way to live is. In theabout two years. At first, this idea was met with question marks,

past, people wanted expensive things. Today, they are seeking

but it has since spread rapidly. This is perhaps due to younger

something more pragmatic. One company I am looking at in thisgenerations coming into power. For example, the presence ofregard is HAIR O'RIGHT INTERNATIONAL CORPORATION.

millennials is increasing among shareholders and venture capital

Aoi: We have one of their stores in Yurakucho Marui.

firms. In fact, it is likely that millennials will become the main

Ishikawa: One tube of O’right toothpaste costs about ¥3,200.

proponent driving society by around 2025. Sustainability, diver-

People might initially be put off by the price, but they will soon

sity, and, yes, well-being are all values that millennials haverealize the value as this toothpaste is made from 100% recy-

grown up with.

clable materials and is good for their health in addition to the

Aoi: Ah, so the value that we had noticed, but previously beenenvironment. In fact, it is made entirely from food. Considering

unable to name, was well-being.

that, we could almost say that ¥3,200 was the right price for

Well-being could be seen as an indicator that hints at the possibility of
future social unrest. Well-being is therefore of utmost importance toensuring medium-to-long-term stability in management.
Yoshiki Ishikawa, PhD
Representative Director
Well-being for Planet Earth Foundation
AdvisorMARUI GROUP CO., LTD.
Born in Hiroshima in 1981, Yoshiki Ishikawa is a preventative medicine researcher with a Doctor of Medicine,which he received from Jichi Medical University after graduating first from the School of Integrated Health
Sciences in the Faculty of Medicine at the University of Tokyo and then from the Harvard School of Public
Health. He is now the representative director of the Well-being for Planet Earth Foundation and is engaged ininterdisciplinary research on what constitutes a good life together with companies and universities. He specializes in fields such as preventative medicine, behavioral science, computational creativity, and conceptual engineering and has written books on the subject of fulfilling lives.

73

D

DIALOGUE 05

toothpaste and that the stuff we have been using up until now
has been too cheap. I suspect that the people of the future will
be drawn to more sustainable and virtuous options.
Aoi: You touch on something incredibly important there. On thesubject of sustainability, the biggest topic of late has been
France’s Danone S.A., which rewrote its articles of incorporation
to define the company as an entreprise à mission (company witha mission). French corporate laws apparently are also changing
to require companies to do more than just generate profit.
Danone’s rewriting of its articles of incorporation was a responseto this regulatory change. It also looks like Danone has established a Mission Committee with a positioning similar to that of
the board of directors at a standard company. If the company
wants to do something that goes against the interests of shareholders, they have to get approval from the Mission Committee.

Importance of Well-being for Both Society
and Companies
Kojima: You mentioned younger generations coming into powera little bit ago, Mr. Ishikawa. One change I have noticed is that, inthe past two years, we have had three employees join who cited

We were also concerned that the restrictions
imposed in response to the COVID-19
pandemic would diminish employees’ passion
for work, but the result was the exact opposite.
Reiko Kojima
Executive Officer
Company Physician
General Manager, Wellbeing Promotion Department
MARUI GROUP CO., LTD.

Aoi: I definitely agree that the way people spend their time andtalk about the weekly well-being surveys conducted in themoney is changing. This is probably mostly due to the change inUnited Kingdom. Every week, the United Kingdom polls 2,000

how time is used, which is giving rise to new ways of using

randomly selected individuals on their levels of happiness andmoney.

satisfaction. The results of recent surveys have been incredibly

Ishikawa: Some people talk about how they allocate their money

interesting. Happiness and satisfaction have been falling for thebased on how they use their time.

past decade, but for some reason they jumped up following the

Aoi: Like how people who spend a lot of time at home also

lockdowns. I am sure that there are some people who are suffer-spend a lot of money on their home.

ing under these conditions, but, on the whole, the people are

Ishikawa: Exactly. It was suggested that, if you spend one-tenthhappier and more satisfied. The reason is still unclear, but I thinkof your time awake in transit, you should spend one-tenth of yourit might have something to do with the fact that capitalism has

money on transportation. This idea clicked with me. Whether

long brainwashed us into believing that money would buy ustime or money is well spent may depend on the values of themore free time. However, with their living spaces greatly restricted,

spender, but I think that this approach toward spending is in line

when it came to doing something, the people of the United

with the times.

Kingdom were forced to reevaluate what was truly important

Kojima: You mean they should spend their money on well-being.

to them.

Ishikawa: The COVID-19 pandemic has changed people’s values.

Kojima: We were also concerned that the restrictions imposed in

People are now focusing on how best to spend their money

response to the COVID-19 pandemic would diminish employees’in their more limited life spaces. In this regard, I would like topassion for work, but the result was the exact opposite. Scores
related to work engagement and stress have improved over lastyear in the stress checks that are taken by almost all employees.

their reason for joining as a desire to participate in the Wellbeing

Ishikawa: This is just a theory, but I think the restrictions have

Promotion Project Team.
Ishikawa: That is amazing. A little while ago there was a com-

Ishikawa: One way I can think of is cost reductions, as suchpany in which employees were forced to telework for a period.

efforts would have a large impact by lowering recruitment andWhen deciding the approach to be taken going forward, abranding costs. Moreover, chronically “low happiness” can cause

younger employee suggested, to the president no less, that they

political and social unrest after enough years. The fall of the

only go to the office if there was a reason warranting a visit. This

Soviet Union is one example of this, as is the United Kingdom’s

statement was founded on the belief that it should be thedecision to leave the European Union. For this reason, well-being

employee, not the company, that chooses the work style best for

could be seen as an indicator that hints at the possibility ofthem. This story made me realize that we are entering into an era

future social unrest. Such unrest does not result in decreased

where people have more power than companies.

happiness. It is the decreases in happiness that leads to thisKojima: The members of the 2020 Wellbeing Promotion Projectunrest. The same can be said of companies. If we look at indi-

Team helped plan an online school festival at a high school

vidual departments in a company, a department where well-located near our head office in place of the regular school festi-

being and happiness continue to decrease is incredibly likely to

val that they were unable to hold because of the COVID-19

have some issue down the line. Well-being is therefore of utmost

pandemic. Rooted in this project was the belief that happiness

importance to ensuring medium-to-long-term stability incomes from bringing joy to someone else, whether they be frommanagement.

within or outside of the Company. In other words, what these
employees craved was not some expensive car, for example; it
was to bring joy to as many people as possible. Regardless,

Changing Use of Time and Money Stemmingfrom the COVID-19 Pandemic

when I talk about MARUI GROUP’s wellness and well-being

74

management practices at times such as when giving lectures at

Ishikawa: An important element of well-being is how people

other companies, I still have people ask me how these efforts

spend their time and money. When comparing different decades,

improve profits.

we will see a clear change in how money is used.

made it easier for people to focus on the moment. Up until now,
it was easy to be preoccupied with the future, always seeking
more. This “more is better” mentality may have been replacedwith “less is more.”
Aoi: If we look at that idea in a slightly more abstract way, it
could be seen as a form of harmony. The prior preoccupation
with more, after all, did not allow for harmony.
Ishikawa: Happiness is an incredibly abstract notion. However,I think it boils down to how much joy you can find in your daily
routine. For example, I used to hate washing dishes. My hands
got chapped and it was boring. Realizing this was a problem,
I put a portable speaker in the kitchen. When I first tried washingdishes while listening to music, I could not help but wonder why

This belief, which is antithetical to the priorapproach of shareholder capitalism, hasbeen spreading rapidly in recent years.
This trend serves as the backdrop for the
recent focus on well-being.
Hiroshi Aoi
President and Representative Director
Representative Executive Officer, CEOMARUI GROUP CO., LTD.

I did not think of listening to music in the kitchen much earlier.
Kojima: It is often said if you change your mind, your behavior
will change; if you change your behavior, your habits will change;
if you change your habits, your personality will change; and if
you change your personality, your life will change. The current
era might be the timing at which people decide to undertakesuch changes.

75

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

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

Calling

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

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

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

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

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

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

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

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

MARUI GROUP’s co-creative invest-

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

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

Having joined in 1977, I am

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

CO-CREATION SUSTAINABILITY MANAGEMENT

co-creation. Motohiko Sato, Executive Vice President

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

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

I am first and fore-

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

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

I am optimistic and I love pondering new ideas. I

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

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

support through our business. Masahiro Aono, Senior Executive Officer

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

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

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

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

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

People say that I pursue what

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

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

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

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

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

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

76

77

M
MESSAGEI have helped a number of large companies transform

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

themselves. Everyone understands the need for open inno-

for a symbiotic relationship between start-up companies

vation and disruptive innovation, but large companies tend

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

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

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

sible decision.

their existing infrastructure. They often become satisfied

Message from an External Director

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

Agricultural Tribe Approach Toward
Ecosystem Development

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

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

MARUI GROUP’s approach toward developing an ecosystem

based on external standards, the way in which the Company

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

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

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

new form of investment.

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

Co-Creative Investment Business Springing from
Previously Plowed Fields

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

One frequent point of discussion at meetings of the Board

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

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

evolved over the years, from transitioning from an earnings

nies can cultivate human resources with an entrepreneurial

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

converting department stores to shopping centers using

desire to serve customers. They are therefore proficient at

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

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

improvement and ongoing innovation. However, responding

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

to extreme circumstances requires an entrepreneurial spirit,

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

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

forth by management while assessing contemporary trends.

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

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

developing a co-creative investment business, having estab-

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

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

businesses with start-up companies. An entrepreneurial

people whose sense of value had become dull, causing

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

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

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

the number of people that realize they have tastes that go

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

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

co-creative investment business is the fruit that has sprung

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

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

empathy toward them. MARUI GROUP employees excel at

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

plowed previously.

discovering the needs of customers and gaining insight

and with other stakeholders that resonate with its values.

through their interactions on the sales floor. Moreover, they

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

Etsuko Okajima

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

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

78

79

M

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

responsible for relevant risk management and other relevant

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

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

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

Messages from New Audit & Supervisory Board Members

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

Furthermore, the Company has established the MARUI GROUP

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

Corporate Governance Guidelines, which compile our basic

and Compensation Committee; five committees that oversee

corporate governance and initiative policies, and publishes

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

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

further strengthening corporate governance going forward.

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

we have also established the Sustainability Committee, which

Directors

Audit &
Supervisory Board Members

8*

External(Independent)

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

4*

Executive Officers

External(Independent)

3

Nominating andCompensation
Committee Members

19

3

4

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

External(Independent)

Female2

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

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

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

Ordinary General Meeting of Shareholders
Appoint / Dismiss

Appoint / Dismiss

Appoint / Dismiss
Select / Discharge

Audit

Audit & Supervisory Board

Board of Directors

ReportCoordinate

Nominating andCompensation
Committee

Sustainability Committee

ReportManagement
Committee

Report Direct

Environment and CSR Committee

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

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

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

Report / Direct

Coordinate

Public Relations IR Committee

Chairman: Senior Managing Executive Officer Members:12

Internal Control Committee

Chairman: Senior Managing Executive Officer Members: 16

Information Security Committee

Chairman: Executive Vice President

Members: 13

Safety Control Committee

Chairman: Senior Executive Officer

Members: 13

Insider Trading Prevention Committee

Chairman: Managing Executive Officer

Members:  6Communicate

Audit

Accounting Auditor

Five Committees

MARUI GROUP Code of Conduct

ReportReport /Participate

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

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

Report / Participate

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

General Affairs Department

Consult

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

80

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

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

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

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

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

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

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

Group Companies
Stores / Specialty Stores / Offices

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

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

Audit

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

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

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

81Agenda Items Discussed by the Board of Directors

Evaluations of the Board of Directors’ Effectiveness

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

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

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

Board of Directors’ effectiveness since the fiscal year ended

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

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

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

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

Audit & Supervisory Board members complete a self-evaluation

provision.

Resolutions and Reports

First
Quarter

SecondQuarter

Third
Quarter

FourthQuarter

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

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

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

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

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

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

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

information on the current evaluation of the Board of Directors

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

and the issues it faces are shared, and constructive discussions

relationships that are strategically critical for improving corpo-

are held in order to formulate measures for the future.

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

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

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

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

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

Directors was examined. However, opinions were received,

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

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

evaluation methodology was sufficiently effective.

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

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

The evaluation of the effectiveness of the Board of Directors

shareholdings (10 companies fewer than on December 31,

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

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

December 31, 2015).

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

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

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

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

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

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

Dec. 31,2015

Mar. 31,2016

Mar. 31,2017

Mar. 31,2018

Mar. 31,2019

Mar. 31,2020

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

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

82

83

Revision of Officer Compensation Systems toFacilitate Sustainability Management

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

Future Leader Development Program

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

MARUI GROUP unveiled its Co-Creation Management Academy

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

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

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

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

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

March 31, 2020.

promoting management innovation. This program is based on

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

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

program, the curriculum was revised with the aim of cultivating

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

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

nesses with start-up companies and targeting future genera-

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

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

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

instill in them a management perspective. This curriculum includes

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

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

programs to facilitate the acquisition of crucial insight as well as

programs included discussions with entrepreneurs at the front

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

discussions with members of Company management, managers

lines of business and exchanges with members of younger

tions of the Board of Directors’ effectiveness.

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

generations. These programs were arranged to help participants

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

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

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

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

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

portion of performance-linked compensation. This revision was

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

world. Moreover, we introduced a mentorship program in which

aimed at boosting motivation to contribute to improved medium-

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

Areas of focus concerning the curriculum for the fiscal year

individuals that had participated in previous programs mentor

Nominating and Compensation Committee, and Management

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

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

Committee before deliberation and approval at the Ordinary

core values and acquisition of a management and a business

CMA program, we aim to continue identifying and cultivating

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

perspective. Participants were given lectures from external

junior and female employees with the potential to become

specialists on topics such as finance, corporate value, legal

future leaders.

Target Indicators and Performance-Linked Coefficients
Target indicator

TargetPerformance-linked coefficient

EPS

¥130

0%–200%EPS¥130 or more

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

Performance-linked
bonuses
Fiscal year ending
March 31, 2021

Performance-linked
stock-based
compensation

Financial
indicators
Non-financial
indicators

ROE

10.0% or more

ROIC

4.0% or more

ESG
indicators

Inclusion in
DJSI World*

0% or 10%

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

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

Performance-linked bonuses(Short-term incentive)

Directors (excluding external directors)

150

21

—

171

External directors

29

—

—

29

34

—

—

34

15

—

—

15

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

Understanding of Core Values
Clarification of VisionInterim Individual
Presentation

Co-Creative Business
Development

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

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

Audit & Supervisory Board members (excluding

Sample Curriculum

Total compensation

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

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

Yasufumi Fujii

Yusuke Mizuno

East Asia Sales Representative
beBit, Inc.

Representative Director and CEO
Life is Tech, Inc.

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

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

84

85

Risk Management

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

Appointment of New Wellness-Field Advisor

Risk management system

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

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

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

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

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

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

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

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

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

Business and other risks

Advisors

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

Yoshiki Ishikawa

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

Wellness Specialist

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

Masakazu Masujima

Partner, Mori Hamada & MatsumotoFintech Specialist

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

Meyumi Yamada
Director, istyle Inc.


D2C Specialist

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

Yutaka Matsuo

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

AI Specialist

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

Sustainability Advisors
Peter David Pedersen

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

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

Masayoshi Suzuki

Executive Vice President, BORDERLESS JAPAN CORPORATION

Appointed in
January 201986

Environmental Specialist

Social Specialist

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

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

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

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

2-3. Risks concerning infectious disease

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

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

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

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

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

• Raising fund procurement
interest rates

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

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

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

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

88

Impact• Constraining fund procurement

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

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

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

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

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

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

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

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

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

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

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

90

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

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

Initiatives Related to Climate Change and Endorsing the TCFD

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

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

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

Calculation
requirements

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

91

CASE STUDY

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

Risks and opportunities associated with climate change
Changes in society

Physicalrisks

Transition
risks

Risks faced by MARUI GROUP

Description of risks

Approx. ¥1.9 billion

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

Approx. ¥3.0 billion

Suspension of systemcenters

Groupwide suspension of business activities due todowned systems

Response
completed*2

Increase in demand forrenewable energy

Rise in renewableenergy prices

Increase in energy costs due to renewable energy
procurement

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

Introduction ofcarbon taxes

Tax increase due to carbon taxes

Approx. ¥2.2 billion(Annual)Changes in society

Suspension of store
operations

MARUI GROUP’s opportunities

Description of opportunities

Financial impacts

Revenue from bringing in eco-friendly tenants, orother efforts

Approx. ¥1.9 billion*3

Increase in sustainability-minded credit cardholders

Approx. ¥2.6 billion*4

Returns from investments in eco-friendly companies

Approx. ¥0.9 billion

Response to demand fromgeneral households forrenewable energy

Revenue from credit cardholders using electrical powerfrom renewable energy

Approx. ¥2.0 billion*5

Diversification of electricity
procurement

Entry into the power
retailing business

Reduced intermediary costs due to direct procurementof electricity

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

Introduction ofcarbon taxes

Exemption from carbon taxes from achieving zero
greenhouse gas emissions

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

Propose sustainable
lifecycles

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

Financial impacts

Impact on rent revenues, etc., due to businesssuspension

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

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

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

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

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

92

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

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

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

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

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

Assist customers infiling an “application
for rent support
grant”

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

93

VISION 2050
MARUI GROUP’s 2050 Vision

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

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

MARUI GROUP’s 2050 Vision

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

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

Inter-Generational Businesses

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

Provision of options for coexistence with theglobal environment and future generations

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

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

Financial Inclusion
Provision of options foralleviating income disparity

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

STEP

in December 2018.

1 Project TeamGroupwide Sustainability

STEP

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

2

Direct Proposals to
Executive Officers

STEP

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

3 for Executive Officers

Intensive Vision Conference

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

94

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

Inter-Generational Businesses

Co-Creative Businesses

Financial Inclusion

Provision of options for coexistence withthe global environment and future generations

Provision of options emphasizing balance
between individuality and connections

Provision of options foralleviating income disparity

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

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

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

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

95

Revision of Policies

Key Points of Revision to the MARUI GROUP Human Rights Policy

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

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

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

Basic Principles

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

1. Dedication to Respecting Human Rights

ing our partnerships with these stakeholders.

3. Scope of Applicability

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

2. Investors

3. Communities
and Society

4. Business Partners						

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

10. E
 limination ofAntisocial Forces

5. Employees

6. Future Generations

11. P
 rotection and Management ofInformation Assets

Human Rights Initiatives Material Human Rights Issues 

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

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

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

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

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

Step 2

Step 3

Step 4

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

Discussion with externalsustainability experts basedon prior steps

Identification of initiatives foraddressing material issues
and future initiatives andtargets

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

2. Commitment to Compliance with Laws and International Standards

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

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

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

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

Activities

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

Major
anticipated risks

Basic Policy
1. Environmental Management

2. Legal Compliance

3. Environmental Due Diligence

4. Stakeholder Engagement

5. Environmental Awareness Improvement

6. Transparent Environmental Information Disclosure

Priority Issues and Action Policies

MARUI GROUP’s Activities

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

Sales, e-commerce site operations, events

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

Manufacturing

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

Sales, cardholder recruitment,
application processing

Application, payment, donation,
cumulative investment

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

3. Preservation of

1. Climate Change 

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

Sustainable Ecosystems 

MESSAGE FROM AN EMPLOYEE 

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

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

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

Related Environmental Impacts

placed in a position responsible for sustainability. I have

• Reduction of Food Loss and Waste

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

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

96

Use by Customers and After-Sales Services• Customers

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

Mariko Kuwae

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

Sustainability Department
MARUI GROUP CO., LTD.

work in order to give form to their ideals.

97

M
MESSAGE

Message from the CFO

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

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

will look to achieve an optimal capital allocation assuming ROE of

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

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

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

A central pillar of investment under the next medium-term

Software investments, meanwhile, have produced an exceptional

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

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

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

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

development but also creates such returns for our business.

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

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

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

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

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

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

Meanwhile, contracted future recurring gross profit, which repre-

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

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

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

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

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

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

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

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

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

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

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

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

occurrences than we would under our prior structure.

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

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

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

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

Investments in Intangible Assets (FY2020)

ments in renovations in the Retailing segment will decrease as

pandemic reduced consolidated operating income by ¥1.3 billion

resulting in a decrease in WACC and consequently a rise in

Amountcorporate value through both improved profitability and reduced

New business fields¥8.7 billion

IRR of 34% from investments in start-up
companies

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

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

cost of capital. Furthermore, as recurring gross profit is

Human resource
development / R&D¥3.2 billion

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

The FinTech segment actually posted higher operating income

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

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

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

revenue while a significant drop in new card issuance costs was

sizes LTV in its management through a business merging

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

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

ROIC 3.7%

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

Return on investment of 313%

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

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

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

WACC 3.0%

a result, overall investments in existing businesses will decline.

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

Outlook for the Next Medium-Term Management Plan

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

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

Software
Total

Major Successes

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

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

Cost of shareholders’ equity 6.9%

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

Increasing of Investment in Intangible Assets

98

Ongoing Corporate Value Creation throughEarnings Structure Transformation

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

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

steady progress in transforming our business model and earnings

ended March 31, 2020, investments in intangible assets amounted

structure and in transitioning toward our target balance sheet

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

tangible assets. Breaking down these investments in intangible

have nearly completed the development of a structure that dis-

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

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

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

investments, which, although being recorded as expenses on the

The most important goal of our earnings structure transformation

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

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

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

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

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

and we therefore anticipate returns through our business activities.

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

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

ment plan, we have also been increasing investment in intangible

99

Financial and Non-Financial Analysis by the CFO

Earnings Structure Based on Distinctive Business Model

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

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

Building appealing stores increases revenues from fixed-term

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

rental contracts while also enhancing our ability to draw custom-

characteristic of MARUI GROUP’s business model merging

ers, which in turn benefits credit card operations by creating

retailing and finance.

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

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

Enhancedability to
attract
customers

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

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

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

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

points are effective at driving improvements in LTV. Increases in

However, once these cardholders start generating profit, this profit

ongoing transactions also spur growth in LTV. MARUI GROUP

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

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

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

rental contracts in the Retailing segment and measures for enhanc-

rental contracts. The combination of these two structures is

ing rent guarantee and other operations in the FinTech segment are

MARUI GROUP’s earnings structure. The consistent retail revenues

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

ensure the Company does not incur overall losses no matter how

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

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

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

while card revenues continue to grow after they climb into the

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

the Company’s continuously high profit growth.

the start of the current medium-term management plan.

Figure 3: Earnings Structure Based on Distinctive Business Model

Growth in card
revenues

Recruitmentof promisingtenants

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

Higher Gold
cardholders

Earnings Structure of Credit Card Business

MARUI GROUP’s Earnings Structure

Pro: High profit growth

Pro: High profit growth (credit card revenues)

Con: Losses recorded for several years

Pro: Consistent revenues (store revenues)

Reinvestment
in stores

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

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

Increases innewcardholders

Appealingstore
development

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

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

Credit card revenues

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

Figure 2: MARUI GROUP’s Value Journey

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

Use as main card

Time

Value

Lifelong relationships

400,000 in-store card applications

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

100 million annual purchases

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

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

START¥71.5 billion

Ongoing contact through shopping¥80.6 billion¥104.2 billion

Attracting customers

On board

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

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

FY2014FY2015FY2016

87.6 billion(52%)

FY2017¥108.0 billion(60%)

FY2018¥122.7 billion(63%)

FY2019Recurring
gross profit¥131.1 billion(65%)

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

100

101

Expansion of Contracted Future Recurring Gross Profit and Resilience

Capital Measures for Achieving Targeted Balance Sheet

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

The medium-term management plan slated to conclude with the

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

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

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

reason, the Company decided to begin systematically liquidating

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

ment payments, the primary form of earnings in the FinTech

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

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

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

segment, as an example, revolving and installment payment

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

stability and growth potential. For this reason, MARUI GROUP

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

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

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

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

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

impacts of the pandemic. Regardless, earnings from these

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

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

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

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

than the amount of recurring gross profit recorded in the fiscal

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

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

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

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

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

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

2.7 times
higherContracted future
recurring
gross profit

3rd year

Recurring gross profit*

FY2019FY2020102

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

Shareholders’ equity¥289.8 billion

Fixed assets,others

FY2016

Liquidation of receivables¥840.0 billion
Ratio of liquidation
25%

Equity ratio 33%

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

Shareholders’ equity¥300.0 billion

Fixed assets,othersEquity ratio 32%

FY2021 (Target)

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

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

measures aimed at achieving the targeted balance sheet are

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

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

WACC and ROE surpasses cost of shareholders’ equity consis-

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

 40.0 billion¥
reduction¥336.2 billion

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

Revenue structure

Associated withinitial balance(Contracted future
recurring
gross profit)

70%

FY2019Average balance

Shareholders’ equity¥281.6 billion

Interest-bearing debt
¥479.8 billion

The growth of recurring gross profit and other transformations

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

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

Liquidation of receivables¥737.5 billion
Ratio of liquidation
24.7%

Liabilities ¥630.0 billion¥131.1 billion

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

Forecast for balance ofrevolving and installment
payment (liquidated)
reduction

Interest-bearing debt
¥359.3 billion

Operating receivables¥630.0 billion

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

1st year
Recurring
gross profit

FY2018

Liabilities ¥448.0 billion

Liabilities ¥595.6 billion¥350.0 billion

2nd yearContracted future
recurring gross profit

FY2017

Liquidation of receivables¥482.8 billion
Ratio of liquidation 14.3%

Fixed assets,others

5th year ~4th year

Operating receivables¥413.9 billion

Operating receivables¥555.6 billion

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

FY2020

FY2021¥368.0 billion

Generated during
fiscal year

30%

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

Cost of shareholders’equity 7%–8%

ROE 9.1%

Cost of shareholders’equity 6.8%

ROE 8.8%

Cost of shareholders’equity 6.9%

ROIC 3.3%

WACC 3.3%–3.7%

ROIC 3.7%

WACC 2.8%

ROIC 3.7%

WACC 3.0%

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

Cost of liabilities

0.3%

Cost of shareholders’equity 7%–8%
FY2016

Net assets ¥890.2 billion

FinTechROIC 4.2%
Retailing
ROIC 3.8%

Cost of liabilities

0.3%

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

FinTechROIC 4.6%
Retailing
ROIC 3.4%

Cost of liabilities

0.2%

Cost of shareholders’equity 6.9%
FY2020103

11-Year Financial and Non-Financial Summary

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

MARUI GROUP CO., LTD. and Its Consolidated Subsidiaries

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

2010

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

2011

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

2012

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

2013

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

2014

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

2015

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

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

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

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

2017

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

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

2018

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

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

2019

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

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

Millions of yen
2020

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

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

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

476

476

487

498

542

591

613

636

657

688

720

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

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

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

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

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

104

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

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

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

105

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

SELF-INTRODUCTION 

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

Yoshitaka Taguchi

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

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

External Director
Shares held: 400
Born: April 1961

CAREER HISTORY 

SELF-INTRODUCTION 

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

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

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

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

Hiroshi Aoi

Masahiro Muroi

President and Representative Director,
Representative Executive Officer

External Director

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

CAREER HISTORY 

SELF-INTRODUCTION 

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

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

Participation in committees:
Nominating and Compensation Committee

106

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

Shares held: 0
Born: July 1955

SELF-INTRODUCTION 

Etsuko Okajima

Masao Nakamura

External Director

Director, Senior Managing Executive Officer

Shares held: 0
Born: May 1966

Shares held: 26,500
Born: June 1960

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

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

107

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

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

SELF-INTRODUCTION 

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

SELF-INTRODUCTION 

Hirotsugu Kato

Hitoshi Kawai

Director, Managing Executive Officer

Audit & Supervisory Board Member(Full time)

Shares held: 8,800
Born: July 1963

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

SELF-INTRODUCTION 

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

Masahisa Aoki

Nariaki Fuse

Director, Senior Executive Officer

Audit & Supervisory Board Member(Full time)

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

108

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

SELF-INTRODUCTION 

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

Yuko Ito

Takehiko Takagi

Director, Executive Officer

External Audit &Supervisory Board Member

Shares held: 10,300
Born: June 1962

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

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

Shares held: 11,900
Born: June 1959

SELF-INTRODUCTION 

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

CAREER HISTORY 

Shares held: 0
Born: January 1967

SELF-INTRODUCTION 

Shares held: 6,600
Born: July 1969

CAREER HISTORY 

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

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

Shares held: 8,600
Born: January 1945

109

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

SELF-INTRODUCTION 

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

SELF-INTRODUCTION 

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

Yoko Suzuki

Toshikazu Takimoto

External Audit &Supervisory Board Member

Managing Executive Officer

Shares held: 0
Born: September 1970

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

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

110

Shares held: 5,900
Born: November 1959

SELF-INTRODUCTION 

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

SELF-INTRODUCTION 

Motohiko Sato

Yoshinori Saito

Executive Vice PresidentManaging Executive Officer

Shares held: 53,600
Born: December 1953

Shares held: 6,100
Born: July 1962

SELF-INTRODUCTION 

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

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

SELF-INTRODUCTION 

Tomoo Ishii

Hajime Sasaki

Senior Managing Executive Officer

Senior Executive Officer

Shared held: 23,000
Born: July 1960

Shares held: 7,400
Born: November 1963

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

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

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

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

111

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

SELF-INTRODUCTION 

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

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

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

112

SELF-INTRODUCTION 

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

Masahiro Aono

Junko Tsuda

Senior Executive Officer

Executive Officer

Shares held: 3,600
Born: March 1962

Shares held: 5,800
Born: May 1972

SELF-INTRODUCTION 

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

SELF-INTRODUCTION 

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

Yoshiaki Kogure

Miyuki Kawara

Executive Officer

Executive Officer

Shares held: 3,300
Born: September 1960

Shares held: 3,200
Born: August 1963

SELF-INTRODUCTION 

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

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

SELF-INTRODUCTION 

Mayuki Igayama

Tatsuo Niitsu

Executive Officer

Executive Officer

Shares held: 7,400
Born: June 1964

Shares held: 21,100
Born: November 1967

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

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

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

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

113

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

SELF-INTRODUCTION 

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

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

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

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

114

SELF-INTRODUCTION 

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

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

SELF-INTRODUCTION 

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

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

Top 10 Characteristic Qualities of MARUI GROUP Officers

Strengths as Defined by the CliftonStrengths® Assessment

2

6

9

2

6

9

2

Takehiko Takagi

ExecutingYoko Suzuki

Relationship
Building

5

8

3

8

Motohiko Sato

Influencing

2

8Tomoo Ishii

ExecutingToshikazu
Takimoto

Influencing

Yoshinori Saito

Executing

Hajime Sasaki

Strategic Thinking

101Masahiro Aono

Influencing

6

2

Yoshiaki Kogure

Executing

1

4

Mayuki Igayama

Executing

3

4

7

10

4

7

7

4

6
7

1

8

2

10

2

9

9

9
1

4

3
7
1

10

2

6

8

2

3

1

1

7

8
4

9
10

8

6
10

7

9

3

5

8

3

10

4

5
5

6

1

6

r

c

9

5

3

10
4

1

3

gi

ne

te

ar

ra

Le

St

t

n
io

ct

lle

n

pu

In

te
In

tic

tio

ris

ea

tu

Id

r

al

to

ic

Fu

la

yt
al

Re

An

n

ity

io

tiv

at

si

liz

ua

Po

y

er

on

ud
vid

m

cl
In

di
In

r

y
th

ar
H

pe

lo

pa

ve

De

Em

y

s

lit

es

bi

dn

ta

te

ec

nn

Co

e

oo
W

ap
Ad

e

nc

nc

ra

ca

iﬁ

su

gn

Si

n

er
iz

im

ax

Se

lf-

M

As

or

io

at

at

ic

tiv

Co

m

m

un

y

ive
at

or

Ac

s

lit
bi

si

st
Re

e

cu

Fo

on
sp
Re

ive

lin

at

ip

er

sc

lib

Di

f

y

lie

nc
te

De

Be

is

Co

ns

er

er

ev

ng

hi

ra

Ac

Ar

6

9

1

Strategic

6

2

10

Learner

10

5

3
7

4

4

4

Intellection

1

8

1

7

2

Input

5

3

6
3

2

1

9

8

3

8

6

Ideation

Executing

7

10

4

Futuristic

Nariaki Fuse

4

10

4

5

Context

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

5

8
6

5

5

2

Analytical

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

10

6

7

Relator

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

Executing33

Positivity

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

Hitoshi Kawai

1

10

Individualization

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

8

2

Includer0Executing1

Harmony

2

Yuko Ito

6

Empathy4Masahisa Aoki

Relationship
Building

Developer

6

Hirotsugu Kato

Connectedness89Adaptability

10

Influencing
Relationship
Building

Woo

12

Masao Nakamura

7

Significance

14

1

9

Self-Assurance

16

Strategic Thinking

Maximizer

18

Masahiro Muroi

Ability to influence others

7

5
5

Strategic Thinking
Ability to think about andanalyze informationand situations

Competitive

Strategic Thinking

Influencing

Relationship Building
Ability to build and nurturestrong relationships

Communication

Relationship Building

Yoshitaka Taguchi

Influencing

Command

Influencing

Influencing

9

Activator

Executing

20

Etsuko Okajima

4

RestorativeStrategic Thinking

Responsibility

Representation of CliftonStrengths® in Top 10 Strengths of Officers

Hiroshi Aoi

Focus

Influencing
35%

Domain ofoverall strengths

Discipline

Relationship Building
19%

Name

Deliberative

Executing31%

Ability to make things happen
Consistency

Strategic Thinking
15%

ExecutingBelief

Domain of Overall Strengths

Top 10 CliftonStrengths® Themes of MARUI GROUP Officers

Arranger

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

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

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

7

3

4

10
9

9

Junko Tsuda

Influencing

Miyuki Kawara

Relationship
Building

Tatsuo Niitsu

Strategic Thinking

3

Takeshi Ebihara

Relationship
Building

9

Reiko Kojima

Influencing

4

Akikazu Aida

Influencing

2

Representation in top 10
strengths of officers

8

4

1

8

5

10

8

10

9

3

1

7

7

6

4

2

8

5
2

10

5

7

5

1

10

5

2

6

8

9

10

1

3

7
6

5

7

9

3

1
3
4

5

7
71

5

6

13

2

8

0

11

5

7

8
0

20
59

6

1

7

6

4

10

5

3

5

8
70

9
4

2

2

4

3

1

8

4

7
3

4

2

7

5

8
8

9
7

2

10

8

9

6

2

9

10
10

1

7

3

6

8
1

6

3

1

1

8

4

3

5

6
5

9

6

4
2

8
5

4

10

10

5

2

9

3

13 16

2

6

6

9

5

7

17 13 11 12

7
0

4

10

15

5

2

11 11

60

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

116

117

Overview of MARUI GROUP
As of March 31, 2020

Company Overview

Distribution of Shares Held by Shareholder Type

Name
Head office

MARUI GROUP CO., LTD.
3-2, Nakano 4-chome, Nakano-ku,
Tokyo 164-8701, Japan
Date of foundation February 17, 1931
Date of establishment March 30, 1937
Capital¥35,920 million
Business activities Corporate planning and management
for Group companies engaged in
Retailing segment and FinTech segment
StoresMarui and Modi: 24 located in Kanto,
Tokai, Kansai, and Kyushu regions
Total sales floor area 417,500 m2
Number of
5,130(Group total, excludes temporary employees)
employees
Main banks
MUFG Bank, Ltd.
Sumitomo Mitsui Banking Corporation
Development Bank of Japan Inc.
Mizuho Bank, Ltd.
Sumitomo Mitsui Trust Bank, Ltd.
Accounting auditor PricewaterhouseCoopers Aarata LLC

Stock Information
Stock listing
Securities code

Tokyo Stock Exchange, First Section(loan margin trading issues)
8252
1,400,000,000

Number of
authorized shares
Number of common 223,660,417
shares issued*1
Number of
28,771shareholders*1 Number of common shares issued includes 8,703,268 shares of treasury stock,equivalent to 3.9% of the total number of shares of common stock issued.

MARUI GROUP’s Business

Financial institutions
96,309,000 shares(43.1%)

Individuals and others*2
27,748,000 shares(12.4%)

223,660,417
sharesForeign institutions
and individuals
63,148,000 shares(28.2%)MARUI CO., LTD.

MARUI HOME SERVICE Co., Ltd.

Retailing and store operation, internet sales, specialty store business (operation and development of directly managed sales floors
and private brands)
3-2, Nakano 4-chome, Nakano-ku, Tokyo 164-8701, Japan
Tel: 03-3384-0101 (Receptionist)

Real estate rental business
34-28, Nakano 3-chome, Nakano-ku, Tokyo 164-0001, Japan
Tel: 03-6361-0101 (Receptionist)

www.0101.co.jp.e.ex.hp.transer.com

Other companies
within Japan
33,024,000 shares(14.8%)

Securities companies
3,429,000 shares(1.5%)*2 Individuals and others includes 8,703,268 shares of treasury stock.

MRI Co., Ltd.

Epos Card Co., Ltd.
Credit card business, credit loan business
3-2, Nakano 4-chome, Nakano-ku, Tokyo 164-8701, Japan
Tel: 03-4574-0101 (Receptionist)

Collection and management of receivables business,credit check business
34-28, Nakano 3-chome, Nakano-ku, Tokyo 164-0001, Japan
Tel: 03-4574-4700 (Receptionist)
www.mri-s.co.jp (Japanese only)

www.eposcard.co.jp (Japanese only)

Epos Small Amount and Short Term Insurance Co., Ltd.

AIM CREATE CO., LTD.

Major Shareholders
Number of shares Percentage of(Thousands oftotal sharesshares)issued *3 *4 *5 (%)

Namewww.marui-hs.co.jp (Japanese only)

The Master Trust Bank of Japan, Ltd. (Trust Account)

33,401

15.5

Japan Trustee Services Bank, Ltd. (Trust Account)

17,545

8.2

Aoi Real Estate Co., Ltd.

6,019

2.8

MUFG Bank, Ltd.

5,808

2.7

Japan Trustee Services Bank, Ltd. (Trust Account 7)

5,001

2.3

Trust & Custody Services Bank, Ltd.
(Securities Investment Trust Account)

3,886

1.8

TOHO CO., LTD.

3,779

1.8

Japan Trustee Services Bank, Ltd. (Trust Account 5)

3,675

1.7

JP MORGAN CHASE BANK 385151

3,628

1.7

The AOI SCHOLARSHIP FOUNDATION

3,242

1.5

Commercial facility design and construction, advertisement
planning and creation, property management
34-28, Nakano 3-chome, Nakano-ku, Tokyo 164-0001, Japan
Tel: 03-5340-0101 (Receptionist)
www.aim-create.co.jp (Japanese only)

tsumiki Co., Ltd.

MOVING CO., LTD.
Trucking business, forwarding, and other businesses
5-1, Bijogihigashi 2-chome, Toda-shi, Saitama 335-0032, Japan
Tel: 048-233-1000 (Receptionist)
www.moving.co.jp (Japanese only)

Sale of investment trusts applicable under Tsumitate NISA throughcredit payment via EPOS cards
3-2, Nakano 4-chome, Nakano-ku, Tokyo 164-8701, Japan
Tel: 03-5343-0134 (Receptionist)
www.tsumiki-sec.com (Japanese only)

D2C & Co. Inc.

M & C SYSTEMS CO., LTD.

*3 The Company holds 8,703,268 shares of treasury stock, which are excluded from theabove principal shareholders.
*4 Percentage of shareholding is calculated based on the total number of shares issued
and outstanding, excluding the treasury stock of 8,703,268 shares.
*5 The calculation for the percentage of shareholding includes 545,000 shares held by the
Officer Compensation BIP Trust and Stock Benefit ESOP Trust.

Small-amount short-term insurance policy business
34-28, Nakano 3-chome, Nakano-ku, Tokyo 164-0001, Japan
Tel: 03-4546-0101 (Receptionist)
www.epos-ssi.co.jp (Japanese only)

Software development, computer operation
3-2, Nakano 4-chome, Nakano-ku, Tokyo 164-8701, Japan
Tel: 03-5343-0100 (Receptionist)
www.m-and-c.co.jp (Japanese only)

Investment in and financing of companies operating
direct-to-consumer businesses, store opening support (contract
store opening and operation services), operation of curated websites
3-2, Nakano 4-chome, Nakano-ku, Tokyo 164-8701, Japan
Tel: 03-3384-0101 (Receptionist)
www.d2c.company (Japanese only)

MARUI FACILITIES Co., Ltd.
Comprehensive building management service business
34-28, Nakano 3-chome, Nakano-ku, Tokyo 164-0001, Japan
Tel: 03-3229-0101 (Receptionist)
www.marui-facilities.co.jp (Japanese only)

MARUI KIT CENTER CO., LTD.
Supply pickup, product inspection, various printing services
Toda Product Center, Second Building, 5-1, Bijogihigashi 2-chome,Toda-shi, Saitama 335-0032, Japan
Tel: 048-421-7351 (Receptionist)

Stock Price
Closing price for 
Company stock (Yen)
3,000

Nikkei 225(Yen)
30,0002,400

24,000
Nikkei 225

1,800

12,000600

6,000

Closing price for Company stock0
Trading volume(Thousands of shares)
100,000

0

80,00060,00040,00020,0000118

The AOI SCHOLARSHIP FOUNDATION was established by MARUI GROUP founder
Chuji Aoi with the aim of contributing to the development of people that can shape thefuture of Japan and benefit society. Over the more than 40 years since its establishment, this foundation has helped fund the education of high school and university
students while facilitating networking between students receiving scholarships andpast graduates.

18,0001,200

2011/1

2012/1

2013/1

2014/1

2015/1

2016/1

2017/1

2018/1

2019/1

2020/1

Group of new
university students
supported in thefiscal year ended
March 31, 2020

Established: January 1973 (became an incorporated public interest foundation in 2012)
Director: Tadao Aoi (Honorary Chairman of MARUI GROUP)
Total amount of scholarships provided: ¥1,980 million
Total number of students supported: 1,660
(As of April 2020)

Office: 3
 -2, Nakano 4-chome, Nakano-ku, Tokyo 164-8701, Japan(located at MARUI GROUP head office)Tel: 03-5343-0351

119

MARUI GROUP Store Network
As of October 1, 2020

Store Website and Official Apps

Marui and Modi Stores: 23
EPOS Card Application Centers (outside of Marui and Modi stores): 30

The latest information on brands in our stores as well as other valuable information for customers is distributed on a daily basis through our store
website and official apps.
Hokkaido

Marui Store Website
www.0101.co.jp.e.ex.hp.transer.com/global/en.html?from=01_pc_appinfo_head_logo

Marui Shopping App
www.0101.co.jp.e.ex.hp.transer.com/appinfo/

Aomori
Kumagaya

Gifu

Soka
Shiki

Hyogo

Yamaguchi

Kitasenju

Tokyo

Ueno

Shibuya
MachidaNagasaki
Ebina

Oita

Kashiwa

Ikebukuro
Kokubunji Kichijoji Nakano Shinjuku

Shizuoka

Kagoshima

EPOS Card Official App (Japanese only)www.eposcard.co.jp/appli/index.html

Tsukuba

Shobu

Omiya

Shiga
Fukuoka

Ibaraki

SaitamaMarunouchi
Yurakucho

Chiba
Kinshicho

Tokyo
Inage

Shinurayasu

Mizonokuchi

Chiharadai

Kanagawa

Aichi
Osaka

OdawaraTotsukaSaga

MARUI GROUP Community Site—kono yubi to-mare

Yokohama
Yokosuka

MARUI GROUP’s community site—kono yubi to-mare—is an open forum in which anyone, regardless of their age, gender, or
nationality, can come to ponder the various issues of all sizes that surround us and take part in forward-looking discussions. We invite readers to come and gaze at the future together with us. Various content is uploaded to this site on an
ongoing basis (all content is available in Japanese only).
MARUI GROUP’s community site—kono yubi to-marewww.to-mare.com/

Shinjuku Marui Main Building

Yurakucho Marui

Shibuya Modi

EPOS card application center

Marui and Modi Stores
Name

Tokyo

Sales floorarea (m2)Transactions(billions of yen)Name

(As of March 31, 2020)

Sales floorarea (m2)Transactions(billions of yen)
(As of March 31, 2020)

Kitasenju Marui35,30034.0

Marui Family Mizonokuchi

32,26021.6

Shinjuku Marui

30,59027.5

Totsuka Modi

16,580

8.9

Yurakucho Marui

18,50019.0

Marui Family Ebina

19,5007.4

Machida Location

21,27014.8

Marui City Yokohama

16,7708.7

Marui Family Shiki

18,90010.6

Omiya Marui

13,970

6.3

Soka Marui

16,530

4.8
7.8

Kanagawa

Ueno Marui

16,390

12.1

Kinshicho Marui

22,990

11.9

Kokubunji Marui

14,300

10.6

Shibuya Location

14,090

10.4

Chiba

Kashiwa Location

18,810Ikebukuro Marui

12,170

5.5

Shizuoka

Shizuoka Location

13,460

2.3

Nakano Marui

4,950

6.2

Osaka

Namba Marui17,00011.2

Kichijoji Marui

11,950

5.0

Hyogo

Kobe Marui

6,940

4.9

Fukuoka

Hakata Marui

15,0008.1

Saitama

Talk Forum

Book LoungeThis section showcases discussions with individuals at
the forefronts of their respective fields. Discussions arefilled with inside tidbits and future outlooks that cannot
be found anywhere else and are sure to provide hints atwhat the future holds.

Bibliophile President Aoi introduces books that are
particularly noteworthy from among the wide selectionof books he reads. With recommendations ranging frombusiness books to comics, there is something for every
reader.

Future View
This section contains summaries of the lectures byexternal lecturers conducted at MARUI GROUP. We
invite you to learn about the future course of MARUIGROUP through the maxims of experts shaping thefuture.

Inclusion Rally

YubiTube Videos

Yubi NewsMARUI GROUP seeks to help a diverse range of people
form wide-reaching and equal relationships. This section
rallies the voices of leaders in various fields throughdiscussions and other contributions based on thethemes of equality (individuality, respect for individuality,
human rights) and engagement (connections, outreach,trust).

This section exhibits videos planned and produced by
MARUI GROUP employees in which they tackle a varietyof challenges to encourage people to think about what
we can do to shape a better future and to take action
based on the UN SDGs.

Check out this section for information on the latest
global news topics as well as on MARUI GROUP’s ESG
activities and must-see events. We hope you will also
visit the physical MARUI GROUP forums introduced inthis section.

MARUI GROUP has set up official Twitter accounts linked
to its community site. We invite you to tweet what you
think about the articles and other content on our site.
Your tweet might start a wave that creates new value.
kono yubi to-mare Twittertwitter.com/maruigroupkono yubi to-mare YouTube
www.youtube.com/channel/
UCCHq6q2aRFTyyEwVOMxHYXA

Note: “ Shinjuku Marui” refers to Shinjuku Marui Main Building, Shinjuku Marui Annex, andShinjuku Marui Men. “Shibuya Location,” “Machida Location,” “Kashiwa Location,”and “Shizuoka Location” refer to both the Marui and Modi stores located at thesesites.

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Ratings, Awards, and Recognition
MARUI GROUP established the IR Department in October 2015 and then the ESG Promotion Department in October 2016 to enhance communication with institutional investors and information disclosure. We have also identified the promotion of diversity and wellness (healthcare) management as key measures under the medium-term management plan with the aim of improving corporate value.

Global Socially Responsible Investment Indexes

Four ESG Indexes Utilized by theGovernment Pension Investment FundMARUI GROUP has been selected for inclusion in the Dow Jones Sustainability
World Index for the second consecutive year, once again making it the only
Japanese retailer included in this index, and has also been included in the Dow
Jones Sustainability Asia Pacific Index for three consecutive years.

MARUI GROUP has been included in the FTSE Blossom Japan Index for four
consecutive years. This ESG index is meant to reflect the performance ofJapanese companies that meet various ESG-related requirements, andindustry is therefore not considered when selecting companies for inclusion.

In RobecoSAM Sustainability Yearbook 2020, a compilation of companies
displaying excellence in terms of ESG initiatives and information disclosure,
MARUI GROUP was included in the Silver Class, a step up from its inclusion in
the Bronze Class in 2019.

MARUI GROUP has been included in the FTSE4Good Index Series,*1 a series ofindexes arranged by FTSE Russell that comprise companies meeting evaluation standards pertaining to ESG factors, for four consecutive years.

MARUI GROUP was included in the MSCI ESG Leaders Indexes,*2 an ESG
stock index with high global recognition.

MARUI GROUP was selected for inclusion in the SOMPO
Sustainability Index for three consecutive years. This index
is compiled by Sompo Asset Management Co., Ltd., andused in its SOMPO Sustainable Investment Fund, whichprioritizes ESG ratings by investigation firms.

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MARUI GROUP was included in the MSCI Japan ESG Select Leaders Index*2
for the fourth consecutive year. This ESG index comprises Japanese companies with relatively high MSCI ESG Ratings in each industry selected fromamong the top 700 companies in terms of market capitalization after excluding those companies with the lowest MSCI ESG Rating of CCC.

For four consecutive years, MARUI GROUP has been included in the MSCIJapan Empowering Women Index,*2 an ESG index for Japanese stocks
consisting of companies that exhibit gender diversity excellence in eachindustry, based on the Global Industry Classification Standard, selected fromamong the top 700 companies in terms of market capitalization.

MARUI GROUP was included in the S&P/JPX Carbon Efficient Index, which
comprises companies included in the Tokyo Stock Price Index selected
through a process that entails overweighting or underweighting companies inreflection of their disclosure of environmental information and their carbon
efficiency (carbon emissions per unit of revenue).

MARUI GROUP CO., LTD., was included in the Climate
A-List, which represents the highest evaluation offered by
CDP, for the second consecutive year in reflection of its
endorsement of the recommendations of the TCFD andother initiatives to address climate change and practiceinformation disclosure of a level that is high even viewed
from a global perspective.

More detailed information on these and other awards and recognition can be found on the Company’s corporate website.
www.0101maruigroup.co.jp/en/ci/award/index.html

ESG Finance Awards Japan is a program developed by
Japan’s Ministry of the Environment for the purpose ofevaluating and recognizing companies engaging in ESG
finance and environmental sustainability management
initiatives. In 2020, MARUI GROUP was the only retailer toreceive a bronze award in the environmentally sustainable
company category of this award program.

MARUI GROUP’s Co-Creation Management Report 2019
integrated report and its VISION BOOK 2050 were highly
evaluated, leading the Company to receive the climatechange declaration award (Minister of the Environment
Award) for the first time in the 23rd Environmental
Communication Awards.

MARUI GROUP received an award of excellence in thespecial renewable energy proliferation category of theGreen Purchasing Award program out of reflection of its
contributions to the expansion of green purchasing
markets through initiatives such as the introduction ofrenewable energy and the issuance of the first green bonds
to be offered by a Japanese retailer.

In the 2019 Vision Awards Annual Report Competition
sponsored by League of American Communications
Professionals LLC, one of the United States’ two majorreport competitions, MARUI GROUP’s Co-Creation
Management Report 2019 was presented with a Goldaward for the first time in Company history.

Noteworthy DX Companies 2020MARUI GROUP was included among the Ministry of Economy, Trade andIndustry’s Noteworthy DX Companies 2020 based on the high recognition of
its efforts to develop stores that do not sell and the work style reforms that
underpin these efforts.

MARUI GROUP was included in the Health & Productivity
Stock Selection for the third consecutive year in 2020,
recognizing it as a company that is strategically addressing
employee health and productivity management issues
based on a management perspective. The Company was
rated highly for its wellness management initiatives.

MARUI GROUP’s Co-Creation Management Report 2019was listed under the Honors of the Integrated AR & CSR:
Traditional Format section of the Specialized Annual
Reports category of the 2020 International ARC Awards,
the world’s foremost annual report competition held on a
yearly basis by U.S. independent evaluation institution
MerComm, Inc.

MARUI GROUP received its award in the IR Good VisualAward program, which recognizes single slides from theinvestor relations presentation materials of listed companies in Japan and presents awards for single slides that
effectively communicate the corporate value of therespective company.

In 2020, MARUI GROUP earned, for the second time, thehighest rank of A in Development Bank of Japan Inc.’s DBJ
Employees’ Health Management Rated Loan Program, inreflection of the high evaluation of MARUI GROUP’spractice of wellness management—the Company’s
approach toward promoting and heightening the physicaland mental health and energy of employees.

Recognition as Excellent Integrated Report
MARUI GROUP’s co-creation management reports have been recognized as
excellent integrated reports for four consecutive years by institutions to which
the Government Pension Investment Fund outsources the management ofdomestic securities. Reasons for the selection of Co-Creation Management
Report 2019 include the high evaluation of its creativity and its clear mediumto-long-term vision.

MARUI GROUP was chosen for inclusion in the Nadeshiko
Brand for the third consecutive year due to its positioningof diversity promotion as a management strategy, its
Companywide work style reform initiatives aimed atcreating foundations for the empowerment of female
employees, and its cultivation of managers and leadersthat can leverage employee diversity.

NIKKEI Annual Report Awards 2019
In NIKKEI Annual Report Awards 2019, MARUI GROUP’s Co-Creation
Management Report 2019 integrated report received a runner-up award,
following the special award received in the previous year, based on the highscores for its senior management messages and its medium-to-long-term
financial measures.

JPX-Nikkei Index 400
MARUI GROUP was included in the JPX-Nikkei Index 400, a stock price index
composed of companies with high appeal for investors that meet requirements of global investment standards, such as efficient use of capital andinvestor-focused management perspectives.

MARUI GROUP’s new greenhouse gas emission reduction
targets, which were established in September 2019, havereceived certification from Science Based Targets,indicating that these targets are effective for keeping global
warming below 1.5°C above pre-industrial levels.

MARUI GROUP was awarded with the highest rating of goldin the PRIDE INDEX for the third consecutive year out ofrecognition of its regular LGBT sensitivity training and its
collaboration with Pride House Tokyo.

WICI Japan Award for Excellence in Integrated Reporting
MARUI GROUP’s Co-Creation Management Report 2019 received Best
Integrated Reporting Grand Prize in the 2019 iteration of the WICI Japan
Award for Excellence in Integrated Reporting program launched by WICIJapan, with the aim of promoting integrated reporting, following the Integrated
Reporting Award obtained in 2018.

The All-Japan Executive Team Rankings is a ranking ofmajor listed Japanese companies compiled by U.S.
financial industry magazine Institutional Investor, based on
votes from institutional investors and securities analysts
from around the world. In the 2020 ranking, MARUI GROUP
was included among the Most Honored Companies in theretailing sector while also being chosen for the Best CEOs
and Best ESG categories.

STOXX Climate Change Leaders Index
MARUI GROUP was selected for inclusion in the STOXX Climate Change
Leaders Index for the second consecutive year. This index is one of a series of
low-carbon indexes developed in 2016 and the world’s first index to focus on
inclusion of companies featured on CDP’s Climate A-List.

MARUI GROUP placed second for the first time in the under
1,000 employees section of the corporation category of the2019 Forbes JAPAN WOMEN AWARD. Factors cited for thisplacement included the Company’s high ratio of male
employees taking childcare leave, high ratio of female
officers, low levels of overtime, and proactive organizationwide initiatives for empowering female employees.

In 2019, MARUI GROUP was selected for the Best IR Awardfor the second time due to high evaluations of its ongoing,
leading-edge, and sustainability-minded IR activities andthe proactive stance of the president and CFO.

*1 FTSE Russell (the trading name of FTSE International Limited and Frank Russell Company) confirms that MARUI GROUP CO., LTD.
has been independently assessed according to the FTSE4Good criteria, and has satisfied the requirements to become a constituentof the FTSE4Good Index Series. Created by the global index provider FTSE Russell, the FTSE4Good Index Series is designed tomeasure the performance of companies demonstrating strong Environmental, Social and Governance (ESG) practices. The
FTSE4Good indices are used by a wide variety of market participants to create and assess responsible investment funds and otherproducts.

*2 THE INCLUSION OF MARUI GROUP CO., LTD. IN ANY MSCI INDEX, AND THE USE OF MSCI LOGOS, TRADEMARKS, SERVICE MARKSOR INDEX NAMES HEREIN, DO NOT CONSTITUTE A SPONSORSHIP, ENDORSEMENT OR PROMOTION OF MARUI GROUP CO., LTD.
BY MSCI OR ANY OF ITS AFFILIATES. THE MSCI INDEXES ARE THE EXCLUSIVE PROPERTY OF MSCI. MSCI AND THE MSCI INDEXNAMES AND LOGOS ARE TRADEMARKS OR SERVICE MARKS OF MSCI OR ITS AFFILIATES.

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EDITORIAL POLICY

Editorial Policy
MARUI GROUP has been publishing co-creation management reports and co-creation sustainability reports as tools for stakeholder engagement since 2015. Another such tool is VISION BOOK
2050. These management strategy reports are forged over a process of more than 40 planningmeetings a year led by President Hiroshi Aoi. Our co-creation management reports are integrated

Let’s Join Hands

reports that focus on the financial and pre-financial information that will support the exercise of
MARUI GROUP’s corporate philosophy and the ongoing growth of the Company. In compilingthese reports, we reference the concepts of connections between organizations and value creation for others andCO - CREATION

series of capitals contained in the International Integrated Reporting Framework released by the International
Integrated Reporting Council in December 2013. We also referenced the idea of a dichotomy between short-term
gains and investments in intangible assets contained in Ito Report 2.0 as well as the view on value creation narratives
linking values, business models, strategies, success, important indicators, and corporate governance contained in the
Guidance for Integrated Corporate Disclosure and Company-Investor Dialogue for Collaborative Value Creation: ESG
Integration, Non-Financial Information Disclosure, and Intangible Assets into Investment released by the Ministry of
Economy, Trade and Industry in May 2017. In addition, Director and Managing Executive Officer Hirotsugu Kato
regularly participates in the exchanges of opinion as a member of the Forum for Integrated Corporate Disclosureand ESG Dialogue and of the Study Group for Discussing Approaches to Making More Substantial the Dialogues for
Creation of Sustainable Corporate Value arranged by the Ministry of Economy, Trade and Industry for the purpose of

MARUI GROUP’s vision for the world of 2050

facilitating discussions between companies and investors based on the Guidance for Integrated Corporate Disclosure
and Company-Investor Dialogue for Collaborative Value Creation. Moreover, in preparing to publish Co-Creationis one in which all dichotomies have been transcended to allow future generations

Management Report 2020, we held a total of 19 planning meetings. However, we were unable to hold the face-to-facemeetings with investors that have been conducted in preparation for previous reports. Accordingly, planning meetings

and all other individuals to live happily and as themselves.

were carried out based on previously received input from investors, investor survey results, and opinions and requests

Realizing this vision will require that we engage in co-creation with MARUI GROUP

from other stakeholders.

employees as well as with customers, business partners,

Overview of 19 Planning Meetings communities and society, investors,

Attendees

and the future and younger generations that will shape the future.

President Hiroshi Aoi; CFO Hirotsugu Kato; representatives from the Corporate Planning Division, the IR Department,
the Financial Department, the Sustainability Department, the ESG Promotion Department, the General Affairs

We invite everyone who shares our vision for the future to

Department, the Investment Research Department, and EDGE INTERNATIONAL, INC. as well as external experts in thefields of sustainability, renewable energy, and veganism

join hands with us in co-creating the happiness of all people.

Major Discussion Themes • Results of surveys with investors and experts• Progress of and revision to MARUI GROUP’s 2050 Vision• Vision of stakeholder capitalization and companies• Revisions to the MARUI GROUP Code of Conduct, the
MARUI GROUP Environmental Policy, and the MARUI GROUP
Human Rights Policy• View of green businesses in light of the climate crisis• New food options provided by veganism• Internaland external impacts of global COVID-19 pandemic• Ideal
partnerships with stakeholders• Newbusiness model merging retailing, fintech, andco-creative investments (investments in intangible assets)• Officer
skill map indicators and utilization methods• View
of interests and happiness in regard to corporatevalueAfterword
Thank you for reading Co-Creation Management Report 2020 to its end.
We had to overcome several obstacles during the process of preparing this year’s report. The start of the process wasdelayed for three months due to the global COVID-19 pandemic. Subsequently, the activities of the Groupwide project team thatgenerally handles report preparation at MARUI GROUP had to be conducted primarily online. We were also forced to completely
rethink all aspects of the report, including the expression methods and composition with regard to consistently highly rated
elements such as dialogues with external experts and photographs of our energized employees. Throughout the process, theproject team engaged in numerous discussions on the question of what we should communicate in this year’s integrated report.
Turning the spotlight toward MARUI GROUP’s new business model merging retailing, fintech, and now co-creative investment,
which was announced together with our financial results for the fiscal year ended March 31, 2020, we kept information on
existing businesses previously communicated in other materials to a minimum. At the same time, we explain in detail theactions for the future to be taken to reduce greenhouse gas emissions as well as the corporate culture supporting those actions
through dialogues. It is likely that our readers will have mixed opinions about this structure given that we have yet to announce
our performance forecasts for the fiscal year ending March 31, 2021, due to the heavy impact that the closure of our stores andother developments had on our performance. Regardless, we chose to talk about the future, something we think is incredibly
important, particularly at this time when there still is no end in sight for the COVID-19 pandemic. There may be some areas inwhich our explanations are insufficient. I therefore hope to use this report as a tool for stimulating dialogue so that we canreceive a wide range of feedback from stakeholders. This feedback will guide us as we seek to engage in future-oriented
co-creation activities with as many stakeholders as possible.
I look forward to your ongoing support of MARUI GROUP.

Co-Creation Management Reports
www.0101maruigroup.co.jp/en/ir/lib/i-report.html
Annual integrated reports focused on
management strategies

VISION BOOK 2050

Contact
Public Relations Office, General Affairs Department
MARUI GROUP CO., LTD.
Tel: 03-3384-0101 (Receptionist)
Email: koho-ml@0101.co.jp
Other contacts
www.0101maruigroup.co.jp/en/question.html

www.0101maruigroup.co.jp/en/sustainability/lib/s-report.html
Report published in March 2019 declaring
MARUI GROUP’s vision for the world of 2050

Co-Creation Wellness Report (Japanese only)
www.0101maruigroup.co.jp/sustainability/lib/w-report.html
Report detailing wellness management initiatives
going beyond the basic approach of preventing illness
in order to foster more energized and happy employees

Corporate information, investor relations information,
sustainability information, recruitment information
www.0101maruigroup.co.jp/en/

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

Takahiro Matsumoto
General Manager, Public Relations Office,General Affairs Department, MARUI GROUP CO., LTD.
koho-ml@0101.co.jp
QR codes used in this report are registered trademarksof DENSO WAVE INCORPORATED.

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