Three

MARUI 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 isstructured 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, whoOIOI C

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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

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

ECo-Creation Ecosystem

Co-Creation Ecosystem [ Business ]will be both digital natives and sustainability natives, will need to commercialize theirpassions. 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 aCo-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 asvessels 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 Worlders. 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 forImproving 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 theyCo-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.

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