EVOLUTION INTO A COMPANY
THAT CONTRIBUTES TO
THE RESOLUTION OF SOCIAL ISSUES

Since its founding in 1931, MARUI GROUP has continued to devote itself to contributing to the happiness of customers, growing as it transforms its business model and corporate culture together withthe times. Today, we are aspiring to evolve into a company that contributes to the resolution of social
issues in accordance with our mission of contributing to co-creating an inclusive society that offers
happiness to all. Driven by our strong sense of commitment toward ensuring a brighter tomorrow for
future generations, we are working toward this lofty goal by accenting the assets we have accumulated over our 92-year history with our own unique excellence.

10

11

EVOLUTION INTO A COMPANY THATCONTRIBUTES TO THE RESOLUTION
OF SOCIAL ISSUES

Social Experiment for Evolving into a Company That
Contributes to the Resolution of Social Issues

Innovation and
Evolution

Business &Culturecontributing to the happiness of customers, the sources of whichchange together with the times, while developing and supplying
services that merge finance and retailing based on our corevalue—the co-creation of creditability.
After assuming the position of president of MARUI GROUP in
2005, Hiroshi Aoi has marched ahead with a drastic transformation of the Company’s corporate culture while seeking to breakaway from its previous labor-intensive business model focused onretailing. In 2019, Aoi proposed the introduction of future generations into the Company’s previously five groups of stakeholders
while announcing MARUI GROUP’s 2050 Vision. This is also when

Guided by its corporate philosophy of striving to “continue evolving
to better aid our customers” and “equate the development of ourpeople with the development of our company,” MARUI GROUP is
endeavoring to fulfill its mission of contributing to co-creating an
inclusive society that offers happiness to all. The Company aspires
to provide economic enrichment as well as emotional enrichment
in the form of happiness and to create a society in which everyone
is able to obtain this happiness. From the time of our founding
in 1931 up until today, we have continued to seek means of2006~
Business model

2019~

Labor intensive

Capital intensiveIntellectual creation

Retailing driven

Fintech driven

Fintech, Retailing, and Forward-Looking Investments

AssetsFixed assets

Financial assets

Intangible assets

Investment

Investments in tangible assets

Treasury stock acquisitions

Investments in intangible assets

Appointment of Hiroshi Aoi as president
Start of issuance of EPOS cards

Start of sustainability management

Revision of Money Lending Business Act

Establishment of Muture Corporation
Introduction of restricted stock compensation system for MARUI GROUP employees
New record for total Group transactions of¥3,957.3 billion

EPS of¥200.0 (target)

Registration of MARUI FACILITIESCo., Ltd., as a power retailer
Establishment of D2C & Co. Inc.

Establishment of corporate philosophy
Transition to pure holding company system

Declaration of intent to evolve into a company that
contributes to the resolution of social issues
Total Group transactions of ¥4,520.0 billion (target)
EPS of ¥128.0 (target)
Formulation ofco-creation philosophy
Establishment of tsumiki Co., Ltd.

Earnings per share (EPS)

Fiscal year
ended September 30,
2003

Formulation of MARUI GROUP’s
2050 Vision
Issuance of Japan’s first green bonds
from a retailer to be used 100% forrenewable energy applications
EPS of ¥116.0 (first new record in
28 years)Commencement of transition to shopping
centers based on fixed-term rental contracts

Financial crisis of 2008

Fiscal year
ended January 31,
2001

we began our campaign to transform ourselves into an intellectual
creation company through fintech, retailing, and forward-looking
investments. This brings us to 2023, when MARUI GROUP
declared its intent to evolve into a company that contributes tothe resolution of social issues by accelerating its investments inhuman capital and other intangible assets. In this quest, we seek
to function as a social experiment in how to surmount the challenging task of creating a business model that achieves earnings
growth while contributing to the resolution of social issues.

Introduction of impact targets
Establishment of business incubation company okos Co., Ltd.
Decision to issue digital social bonds

Cancellation of all rent payment for
tenants during store closures amid COVID-19 pandemic
Launch of business contests for members of younger generations
Fiscal year
ended March 31,
2006

Fiscal year
ended March 31,
2009

Fiscal year
ended March 31,
2015

Fiscal year
ended March 31,
2019

Fiscal year
ended March 31,2021

Corporate Culture 1.0

Fiscal year
ending March 31,
2024

Fiscal year
ending March 31,2026

Corporate Culture 2.0

Corporate Culture 1.0

Corporate Culture 2.0

Culture of Autonomy through Action and Voluntary Participation

Culture of Acceptance Toward Failure andEncouragement of Ambition

Corporate culture reform activities centered on corporate philosophy, engagement, workstylereforms, diversity, voluntary participation, intra-Group profession changes, evaluations emphasizing
both performance and value, and well-being (see page 62)

Social experiment on how to achieve earnings growth while contributing to theresolution of social issues supported by workstyle and organizational innovationand digital transformation (see pages 63–69)

12

13

EVOLUTION INTO A COMPANY THATCONTRIBUTES TO THE RESOLUTION
OF SOCIAL ISSUESMARUI GROUP’s Stance Regarding Assets

Assets Forged through Merger ofFinance and Retailing
Investment in businesses that will have a positive impact on the future as a social experiment
for achieving earnings growth while contributing to the resolution of social issues through innovation

The assets MARUI GROUP has amassed represent the insightand ideas of our people, which have been transformed into
organizational assets to be used to shape the future of theCompany. We utilize these assets to contribute to the resolutionof social issues as well as to grow the Company and its market
share. When aspiring to generate a desired impact, we will pool
our knowledge with colleagues and co-creation partners whoshare our aspirations. By generating synergies between ourassets and services and those of our partners, we strive tocreate unprecedented new businesses and generate new
impacts. MARUI GROUP is confident that the pursuit of synergies between assets, social issue resolution, and co-creation is
the ideal course for its business in the age of intangible assets,
and we will walk this course together with partners who share
our ideals.

Prior approach(tangible asset driven)

Business model

MarketCompetitiveness

Future approach(intangible asset driven)

AssetsSocial issue resolution

Co-creation

Growth & Efficiency (GDP)Growth & Well-being (GDW*)* GDW: Gross domestic well-being

MARUI GROUP’s ASSETS

Forward-Looking Investments
Internal new business investment(okos Co., Ltd., and official Groupwide initiatives)+

Outward co-creative investment(Co-Creative Investment Department,
D2C & Co. Inc., co-creative teams)

Base of More Than 7.3 Million EPOS Cardholders

Network of 22 Marui and Modi Stores

In the fiscal year ended March 31, 2023, the Fintech segment* generated

Rather than being preoccupied with selling products, Marui and Modi

total transactions of ¥3.7 trillion, which were a product of its base of EPOS

stores are oriented toward creating value that is unique to physical stores,

cardholders. Around half of these cardholders are under 40 and 66.9% are

merging both online and offline elements. Under our strategy of promot-

active users. Meanwhile, we have maintained a low ratio of delinquent debt

ing stores that do not sell, we are operating stores with the aim of provid-of 1.61%. We offer a lineup of collaboration cards with 41 facilities acrossing venues at which customers can have eventful experiences and newJapan and with prominent artists and anime works as well as cards thatencounters. These stores draw around 200 million visitors a year.

promote renewable energy and support social contributions.

Retailing

Fintech22 physical stores
Reliability of MARUI brand
Annual visits byapprox. 200 million ­customers
Retailing and distribution staff

More than 7.3 million
EPOS ­cardholders
Credit expertise
Stable financial base
IT and system staff

Philosophy
Continue evolving to better aid our customers
Equate the development of our people with the development of our company

Team of 4,500 Employees Sharing Our Ideals

Wide-Ranging Operations Merging Finance and Retailing

The people who tend to join MARUI GROUP do so because they sharethe values advocated by our mission, vision, and corporate philosophy.
Almost everyone working at MARUI GROUP has experience serving
customers in stores, which has made them exceptionally proficient at
detecting the needs of customers and of society.

MARUI GROUP possesses internal functions related to a wide range of
operations, including systems development, credit, rent guarantees,
stores, logistics, and investment in start-up companies. In recent years,
we have been augmenting this range of operations with businesses
related to cumulative investments and support for individual preferences in order to tailor our offerings to our customers.

* The prior FinTech segment has been renamed the Fintech segment. No changes have been made to the business operations contained within this segment.

ValuesCreditability should be built together with customers
Pioneer spirit of creating opportunities
Information on Group companies

14

15

Co-Creation ofCreditability

EVOLUTION INTO A COMPANY THATCONTRIBUTES TO THE RESOLUTION
OF SOCIAL ISSUES

The co-creation of creditability—MARUI GROUP’s core value—is based on the
belief of the Company’s founder that “creditability should be built together withcustomers,” rather than assigned to them. Whether in our retailing operations
or in our finance operations, this founding spirit inspires us to go beyond
one-time interactions with customers to build lasting relationships throughwhich we co-create creditability. The co-creation of creditability can be foundat the heart of our various initiatives, including our offline and online initiatives.
This is our unique core value, the value that differs from all other companies,
the value that defines MARUI GROUP and that, if removed, would cause theCompany to cease to be itself.

MARUI GROUP got its start in furniture, items that were quite expensive at thetime, which led the Company to found its business on credit, offering temporary loans based on a given customer’s lifestyle. It was through this businessthat we developed our core value of the co-creation of creditability and accumulated our credit expertise. These strengths have continued to evolve withthe times. We have thus come to provide a variety of services that support the
lives and life events of customers. MARUI GROUP is able to take a uniqueembedded finance approach made possible by operating a financial businesswith direct access to customers through retailing venues.

Unique Excellence
Our unique assets and services are founded on a core element of MARUI GROUP: the strengthof the unique excellence the Company has fostered since its founding. We continue to honeand redefine our unique excellence to sustain a perpetual source of strength that our rivals
cannot mimic.

E

M

B

E

D

D

E

D

→ For more information, please see Transition from Installment Payments to Embedded Finance on pages 34
and 35.

Credit Expertise16

With its various points of contact, MARUI GROUP is constantly tapped into the lifestyles of its customers. Marui andModi stores are our most prominent form of contact point,
but we also connect with customers via EPOS cards used atother commercial facilities and at collaboration partners
through e-commerce sites operated by the Company or its
partners, and through investees. The propensity for communicating with customers that employees cultivate on the sales
floor continues to be applied to business-to-business orbusiness-to-business-to-consumer operations should an
employee choose to relocate away from the sales floor. We
are committed to heightening engagement with customers by
responding to their issues and desires in real time.

Embedded Finance

MARUI GROUP’s Strengths

MARUI GROUP’s principle of the co-creation of creditability has
enabled the Company to maintain a ratio of delinquent debt that isparticularly low in comparison with its peers. Based on this principle, we embrace the concept of financial inclusion. Accordingly,
credit card applications are not judged on the basis of a customer’s age, profession, or income. Rather, we initially set low
credit limits to make it possible to issue cards to a wide range ofcustomers in need of financial services. We then proceed to build
trusting relationships with customers as we raise their credit limit
based on their usage frequencies and payment histories. Today,
we are expanding our utilization of the credit expertise founded on
the co-creation of creditability by extending credit to corporate
customers in addition to individual customers.

Engagement with
Customers

Ability to Transform
InitialCredit Limit

Increased
Credit Limit

Co-Creation ofCreditability

MARUI GROUP’s history is a history of transformation. While the merging offinance and retailing has remained at the heart of our business, our actual
business activities have continued to transform and evolve over the years.
This capacity to transform our assets and strengths is indicative of MARUIGROUP’s overall ability to transform itself. As described in our 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,”
MARUI GROUP’s purpose is not purely to grow itself. Rather, we aspire tocontribute to the happiness of customers and to the resolution of social
issues that change together with the times. Our prime directives are thus toaccomplish our mission, realize our vision, and create our desired impact.
17

EVOLUTION INTO A COMPANY THATCONTRIBUTES TO THE RESOLUTION
OF SOCIAL ISSUESMARUI GROUP has always been committed to supporting thehappiness of customers, the sources of which change with thetimes. To guide our efforts going forward, we identified anumber of pertinent issues as part of the formulation of MARUIGROUP’s 2050 Vision, which was announced in 2019. Theseissues include the noteworthy concerns of climate change andthe shift toward renewable energy as well as less prominentissues such as previously excluded individuals, isolation, andthe happiness of future generations. We then delved deeper into
these issues to define impact targets to be pursued by 2030.
These impact targets include the goal of supporting individual
preferences and individuality. At first, it might seem odd toemphasize such factors, but these are natural areas ofcontributions for a company like MARUI GROUP that dedicates
its attention to happiness and well-being. Supporting individual
preferences and individuality is thus a crucial theme for ourcontributions to society.
A business that contributes to the resolution of social issues
takes an approach that is very similar to that of agile development. Rather than beginning with a completed model, we formulate hypotheses that are quickly put into practice so that we canreceive feedback from users and society to drive improvements.
This process of continuously evolving while forever remaining awork in progress is what is expected of a company that contributes to the resolution of social issues. To support this process,we seek to foster what we refer to as our “corporate culture 2.0,”

which entails a social experiment on how to encourage ambition
while being accepting of failure. However, MARUI GROUP is afor-profit company. This means that we must develop a businessmodel that facilitates earnings growth while also generating ourdesired impact through the act of contributing to the resolutionof social issues. Such a business model will entail a completely
new approach toward management that transcends the previously perceived dichotomy between growth and returns toachieve high growth coupled with high returns. Under this new
approach, MARUI GROUP is now poised to begin its pursuit ofincreased growth and well-being, which we refer to as “grossdomestic well-being,” through synergies between assets, social
issue resolution, and co-creation.

In the following pages, we will look at some examples of
MARUI GROUP’s social experiment. These innovations may still
be in their infancy, but they have already begun to show potential for contributing to earnings growth and to the generation of
our desired impact. We aim to increase and develop suchinitiatives in order to generate larger and more wide-reaching
results so that MARUI GROUP can achieve its mission, realize
its vision, and accomplish its impact targets as a company that
contributes to the resolution of social issues.

IMPACT BOOK 2023
Information on path toward achieving impact targets and logic models used

A Company That Contributes to
the Resolution of Social Issues
Directives

Focus

ActionSocial Issues

Three Business Models Founded on Co-Creation

Impact Targets Based on Three Themes

Forward-Looking
Investments

IMPACT

VisionEnvironment
Climate Change, Resource Depletion,
and Circular Economy
Shift Toward Renewable Energy
Destruction of Ecosystems

01 Creating a future for
future g­ enerations together

EconomyPoverty and Hunger

02 Creating happiness forindividuals together

Growing Middle Class in Asia
Spread of Internet of Things and Control throughArtificial Intelligence

Retailing
Communities and Society

Fintech03 Creating an ecosystem forco-creation

MissionContribute to co-creating an inclusive societythat offers happiness to all
2050 Vision
Build a world that transcends dichotomies ofimpact and profit

Previously Excluded Individuals
Isolation in Developed Countries
Connections and Divisions Between Countries

18

19

EVOLUTION INTO A COMPANY THATCONTRIBUTES TO THE RESOLUTION
OF SOCIAL ISSUES

Inspiration to Draw Out the Innate
Goodwill of People

THE VARIETY OF WAYS
WE CAN CHANGE SOCIETY
DIALOGUE 01

TOSHIKI ABE

HIROSHI AOIEmpathy and Logic and Best Tools for Inspiring Change in Society
Ridilover Inc., a company headed by Toshiki Abe is a company that invests resources in contributing tosociety by identifying the issues people face to resolve these issues through collective effort. This quest
has a lot in common with the goals of MARUI GROUP, which seeks to contribute to the resolution of social
issues through co-creation. The following is a conversation between Abe and MARUI GROUP President
Hiroshi Aoi in which they discuss means of transforming social systems and values.

Toshiki Abe
Representative, Ridilover Inc.
Born in Kyoto in 1987, Toshiki Abe launched the Ridilover platform for arranging education tours of sites related to social
issues in 2009 while still attending the University of Tokyo. He later founded a general incorporated association to manage thisplatform in 2012 before establishing Ridilover Inc. in 2013. The name “Ridilover” is a contraction of the phrase “ridiculous things
lover.” Abe has received numerous awards, including the grand prize in the first NICT Entrepreneurs’ Challenge 2Days contest
arranged by the Ministry of Internal Affairs and Communications and the grand prize in the fourth KDDI∞ Labo competition.

20

Aoi: How many employees does
Ridilover have at the moment?
Abe: We have about 60 employees
right now.
Aoi: That is a big team there.
Abe: We bolstered our team just lastyear, and that was a big undertaking.
The expectations of middle management have also become a lot higher as aresult. If we want to foster the development of new employees, we need toprovide them with opportunities totackle new challenges while supportingthem in these endeavors. However, thesocial sector, where we operate, isknown to attract a lot of sensitive
people, and this is why management
tends to lean more toward the support
side of this equation as opposed to thechallenges side. Everyone is highly
sensitive toward the pain of others, but,as they say, “no pain, no gain.”

Aoi: We also have a lot of highly empathetic employees. However, empathy is
not enough; if you want to resolve anissue, you sometimes need to be strong
and forceful.
Abe: If we act based on empathy alone,
we will tend to favor the status quo. The
difference between business-to-business
operations and business-to-consumer
operations is that the former is based on
logic while the latter is based on support
for one’s specific circumstances.
Transforming society requires a keen
ability to bridge the gap between thesetwo different approaches toward business. On a fundamental level, this entails
maintaining a business-to-businessmindset while affirming the status quo
and addressing people’s needs during thecourse of one’s actual work. I believe thatthe ability of our employees to bridge thegap between these approaches will correlate to our ability to become an organization on the front lines of transforming
society through business-to-consumer

operations. However, fostering this ability
will be no easy task.
Aoi: Both business-to-consumer andconsumer-to-consumer operations havebecome a common part of our everyday
lives thanks to the internet, and the typeof talents and skills required in these
operations are changing. This is creating
an increased need for user interface anduser experience designers. Such individuals use the latest digital technologies intheir work while still being more committed to the perspectives of users thaneven we are at MARUI GROUP, despite
the fact that we actually engage withcustomers in a face-to-face capacity.
Abe: It is crucial to think about the typesof designs that break down the apathyof users to unleash their goodwill andautonomy. I suspect that probably about
98% of people truly want society tomove in a better direction when it comesto social issues. This means that weshould focus on creating designs thatinspire this innate goodwill.

21

EVOLUTION INTO A COMPANY THATCONTRIBUTES TO THE RESOLUTION
OF SOCIAL ISSUES

Aoi: At MARUI GROUP, we refer to thissentiment in terms of offering options
and encouraging self-determination. I
believe that, if we can effectively design
the paths that guide the choices ofcustomers, we can inspire them to work
toward the resolution of social issues. We
must be careful not to offer too many
options, or too few. Also, the venues
through which we propose these options
cannot be too straitlaced nor too playful.
Sculpting the ideal presentation for
options is at the heart of design, and good
designs will help customers take the firststep toward making their own decision.
Abe: If we want people to take an interest in social issues, it is not enough tojust say, for example, “we need toaddress the issue of child poverty.” We
have to go deeper, show what type ofchildren are suffering from poverty andwhat benefits can be provided to them.
I coach elementary school softballteams, and I therefore know that theactivities of such teams hinge on the
support of community volunteers likemyself. When, for example, a member ofthe community notices that the kid they
always see around the neighborhood has
become more polite after joining a softballteam, they may be inspired to help out
with or donate to such activities.

Frameworks for Directing Money
Toward Desired Impacts
Aoi: One reason alone is not enough toinspire someone to action; we need topresent enough reasons to overcome
the threshold that we all have. In thepast, we arranged pop-up store events at
Marui stores for the Netherlands-based

chocolate manufacturer Tony’s
Chocolonely. This manufacturer offers
chocolate in appealing colorful packages and emphasizes presentation inphysical stores so that it can visuallysolicit the brand image its chocolate
creates. Behind this vivid visual expression, however, is the brand’s commitment to combating slave labor. I am
amazed at how this company has beenable to secure the top market share in
the Netherlands.
Abe: I suspect that we are going to see a
lot of change in power balances over the
next 10 or so years, and this change will
likely be accompanied by shifts in brandimages. MARUI GROUP is incredibly
insightful when it comes to serving
consumers. I would like to find ways totie this insight to both the resolution ofsocial issues and the improvement of
MARUI GROUP’s brand value.
Aoi: It is for the purpose of accomplishingthose goals that we are dedicating ourefforts to co-creation with entrepreneurscommitted to resolving social issues. We
are even partnering with individuals as
young as 18. It is rough how much time ittakes to develop feasible businesses inthis manner, but everything else about theprocess is a delight.
It is often thought that open innovation
ventures have a high likelihood of endingin failure. However, I believe that thisfailure is generally due to a structuralissue, namely, the lack of a mutuallycomplementary relationship. A person
who has the commitment and reasons totackle a social issue may lack theresources to do so. Conversely, an organization can have assets, including theintangible asset of a strong social

I believe that people vote with their wallet. Through EPOS cards, we haveconnections to various aspects of people’s everyday lives. It is for thisreason that we want to drive people unconsciously to make consumption
Abe: I decided to get into my current line of work because of my experiencestudying the brains of monkeys at RIKEN. The biggest difference between
humans and monkeys is how humans are able to define social issues andunite to address them.

22

According to a post on X (formerly Twitter) by Abe on February 10, 2019,
Abe decided to try and go to the University of Tokyo after being recommended andreading the manga Dragon Zakura at age 17, a goal he achieved, and became afisherman at age 19, a position that saw him wrestling tuna with his bare hands ona daily basis. At age 21, he founded Ridilover Inc. together with his colleagues
before starting to teach classes at the University of Tokyo at age 24 and being
included on the Forbes 30 under 30 Asia list at age 29. The post also explains that
despite the struggles Abe has experienced thus far, he is committed to continuing
to fail and tackle new challenges going forward.

decisions that contribute to the social good.
Hiroshi Aoi

reputation, but not have the reasons to
see a commitment through to the end. Ifsuch a person with commitment andreasons teams up with an organizationthat shares that commitment and is able
to supply the resources, a mutually complementary relationship can be formed.
Abe: I believe that the ecosystem
offered by MARUI GROUP has an important role to play in combining a top-down
approach toward change with the act of
guiding overarching social trends byinspiring changes in the actions ofindividual consumers.
Aoi: MARUI GROUP can formulate
relatively accurate estimates regarding
the amount of cash that will be generated if we can convince a customer tosign up for an EPOS card, including theamount that will be generated on alifetime basis. As we are able to counton such funds, we can use this cash toboldly offer services entailing the type ofrisks that we would have had to avoid
previously. In this manner, we are able toexperiment with the resolution of social
issues thanks to this reliable cash backing.
Abe: That seems similar to how NPOs
offer individual donors the option to
make their donations via monthly credit
card payments. Right now, nobody really
views that as a form of credit. A change
in perspective, however, reveals thepotential for such donations to provide aframework for facilitating the funding ofNPOs’ activities.
Aoi: You have a point there.
Abe: When we look at the financial
services offered to address social issues
around the world, we will see that
options have been limited to small-sum
financing for supporting women.
However, if an NPO is used as an intermediary, it will lend an additional degreeof creditability, which can be used toexert leverage and mobilize greater
amounts of funds. If we can then create
frameworks that enable countries andprivate companies to support suchfunding, it could result in flows of fundsof exceptionally larger scales.

23

EVOLUTION INTO A COMPANY THATCONTRIBUTES TO THE RESOLUTION
OF SOCIAL ISSUES

I envision a framework in which, if a company wants to raise its value in thesocial economic sphere, the best way to do this would be to list on the TSE.
Toshiki Abe
Aoi: That is true. Activities require funding. If we can create such funding
frameworks, we will be able to direct
funds toward our desired impacts.
Abe: The ratio of consumer activity thatis directed toward social causes isprobably between 1% and 3%. If we
could raise the level to, say, 20%, andthen add to that around 20% or 30% of
the taxes generated via GDP, that would
make for a figure of more than 50%. This
would be the tipping point. In fact, economic frameworks themselves can be
crafted with social causes in mind, andthe creation of such frameworks would
fundamentally transform social systems
and values. From a business perspective, whether looking at consumers or at
the public-sector entities that support
those consumers, we will see thataround 50% of market participants feelthat the economy should be oriented
toward the social good.

Opportunity to Pursue Maturity
Instead of Growth Amid
Population Decline
Aoi: After struggling to enrich itself andstrengthen its army after the Meiji
Restoration, and then to catch up withthe rest of the world after World War II,
Japan found itself to be among the firstdeveloped nations to see its population
start to decline. An underlying principleof capitalism is that economies grow in
conjunction with the workforce, whichmeans a decline in population cantranslate to a halt to GDP growth. Even if
we try to maintain productivity using
robots and AI, we cannot expect to see
the economy grow, only mature. It is truethat success in maintaining productivity
levels in this manner might lead tohigher levels of per capita GDP. On theother hand, if we can move away from24

the emphasis on growth to pursue
greater maturity in the economy, as wasdone in the Edo period, Japan should be
able to create a completely new type ofsociety that is fueled by a drive different
from that of its peers.
Abe: I share your vision and want tomake it a reality. For this purpose, ourimmediate goal should be to transformthe values and economic incentives thatwill form the foundation for such asociety over the next decade or two.
Aoi: That is why I think that population
decline represents an opportunity. As the
population shrinks, we will be more andmore pressed to transition to an economy prefaced on maturity, as opposed
to growth. If we can reorient ourselves
toward this pursuit, I believe that we will
see some massive changes.
Abe: What is the scale of economic
impact of EPOS cards?
Aoi: The annual transaction volume for
EPOS cards is around ¥4 trillion. This
includes use for monthly rent, utility,
and insurance payments. I believe thatpeople vote with their wallet. When thescale of those votes reaches ¥4 trillion,
it means that we have connections tovarious aspects of people’s everyday
lives. It is for this reason that we are in
the process of developing an app thatdrives people unconsciously to makeconsumption decisions that contributeto the social good.
Abe: That is an intriguing idea. If people’s
consumption patterns change, so will
the votes they make with their wallets
in the public sphere. The votes people
make with their wallets represent an
expression of the issues they want
Japan to dedicate funds to, and thesevotes can thus shape government
subsidy programs. If people want renewable energy, we will see renewableenergy subsidies. If they want nuclear

power, that is where the money will go.
In the end, such programs will result inbusiness operators being able to provide
power to consumers at lower prices. In
this manner, connections with consumers can be used to inspire changes not
only in consumption patterns but also invalues. This in turn will lead to a cycle inwhich consumption patterns influence
public policy through votes, the consumption of political resources.
Aoi: I could not agree more. Even if wefeel dissatisfied with politics or government policy, complaining will not resultin any real change. Rather, a more exciting prospect is the idea to influencechange through a strategic approachthat targets a chain reaction transforming people’s thinking and social
structures.

Creation of a Social Market
Using Blockchain
Abe: I suspect that, at some point, weare going to see a change in how people
perceive market capitalization. It is myhope that this change is not just limited
to an individual company basis, butrather entails a transformation of thevery nature of equity markets. Ideally,
I would like to see the Tokyo Stock
Exchange (TSE) be the focal point forthis change. Basically, I envision aframework in which, if a company wants
to raise its value in the social economic
sphere, the best way to do this would be
to list on the TSE.
Aoi: That is an excellent strategy. On a
global scale, the TSE is currently losing
to exchanges in New York and London
and even to those in Asia. This meansthat how the TSE chooses to brand andposition itself will be of the utmost
importance going forward.
Abe: I think it would be prudent to carveout a space in the Japanese financial
market in which we can see an increasein the representation of socially minded
companies and to dedicate a substantial
amount of funds to this space. To behonest, I am not sure what my long-term
exit plan will be for Ridilover. Even if wewant to list the company, we will notsettle for listing on a market that does
not align with Ridilover’s vision. The best
way to resolve this issue would be for
the TSE to become a social market.
Aoi: MARUI GROUP’s partners are also
longing for such a market. I guess it is
up to you to make it!
Abe: We should do it together. Thatwould increase the incentive for people
to invest in social entrepreneurs via
MARUI GROUP. You are an early investor
in many companies and even have yourown fund. All we need is someone tosupport late adopters. Also, if we could
go beyond funds to provide a place forcompanies to be listed, that wouldchange everything.
Aoi: In that case, it would be best to
adopt an approach similar to that seenin Web3, in which those who are quick toinvest and maintain their investments
over the long term see greater returns. In
other words, it would be great if we saw
the emergence of a social market inwhich people are able to make good useof technologies like blockchain, whichallows users to maintain data bythemselves.
Abe: I think that comes down to what
you see to be the fundamental properties of blockchain technology. From afinancial perspective, blockchain issimilar to securities.
Aoi: Securities nowadays are complicated. However, if it were to become
possible for individuals to keep recordsof their transactions without the help of
a third party through reliable smart
contracts, returns could be more precisely distributed on an individual basis.
If Web3 has the potential to unlock suchpossibilities, I think that Web3 could
indeed be used to start up a securities
exchange.
Abe: I have been mining cryptocurrency
for the past three or four years exactly
because I want to do that. However, wehave to really think about when exactly
would be the best timing to introduce
such technologies into our business andhow to go about this.
Aoi: If we can accomplish our goals
without blockchain, there is no need togo out of our way to use it. I do want totry and make the type of market we havebeen talking about as an experiment,even if it is only small.
Abe: I think it will be NPOs, which don’t

face as many restrictions as securities,
that will be the first to see such amarket. Social projects have not been
expected to offer economic incentives
just by their nature. This is why it is likelythat a market for listing NPOs using
Web3 will probably be the first to
emerge. Smart contracts are also an
intriguing idea as they would have thepotential to transform society.
However, we have to recognize thatthe people affected by contemporary
issues lie outside of the inner circles ofthe economic sector. This is why it isimportant to think about how to design a
blockchain in a way that introduces suchpeople into those inner circles, and thisis not something that will be easy toaccomplish.
Aoi: You are quite correct.
Abe: The idea of returns going back to
the people who took the risks is an
important part of stimulating innovation.
For this perspective, it might be a goodidea to incorporate Web3 or perhaps
securities principles into social projects.
However, this will not change the needfor an exit strategy.
Aoi: That is something we also should
think about. I might have to do that as
my last act as manager.
Abe: I would love to see you do that, but
I would hate for it to be your last act.
25