M A R U I CO . , LT D .
MARUI IR DAY
N e w M e d i u m -Te r m M a n a g e m e n t P l a n

May 27, 2022

To d a y ’s co n te n t
16:00～

Progress and Future Initiatives in the
Retailing Segment
Masahiro Aono,President and Director, MARUI CO., LTD.
Miyuki Kawara, Director and Store Manager,
Kitasenju Marui, MARUI CO.,LTD.

16:15～

Q&A

16:35～

Progress and Future Initiatives in the
FinTech Segment
Yoshinori Saito, President and Director, Epos Card Co., Ltd.
Ayumi Hiromatsu, Director, Epos Card Co., Ltd. And
Director and General Manager,
Digital Promotion Department, M&C SYSTEMS CO.,LTD.

16:50～Q&A

2

M A R U I I R DAY
P r o g re s s a n d
Fu t u r e I n i t i at i v e s
i n t h e Reta i l i n g S eg m e n t

May 27, 2022

I would like to give you the overview of the Retailing segment.

Content of today’s presentation

1

Overview of Performancefor the fiscal Year Ended March 31,2022 andFull-Year Forecast for FY2023

2

Future Initiatives* News release issued today: Notice Regarding
Rebuilding of Shibuya Marui

Here is what we are going to discuss today.
I, Kawara, will give you the overview of the performance of the fiscal year ended March 31,
2022 and the full year forecast for Fiscal 2023, as well as the news release issued today;
notice regarding rebuilding of Shibuya Marui, while President Aono will go over future
initiatives.

1
Overview of Performancefor the fiscal Year Ended March 31,2022 andFull-Year Forecast for FY2023

Transaction volume
Transaction volume was up 7% YoY (2pp below target) and down 23% from FY2020
as the number of trading days in FY2022 was reduced by 40% amid restrictions on
people’s movements■ Transaction YoY
（％）

250

～
～
100

116％

100％

上半期
First
half

下半期half
Second

取扱高
前年比

105

102
96

Transaction
YoY

VS Target-2％

New Infected
people新規感染者数
Apr.
2021

May
2021

Priority COVID-19
countermeasures

13 days

Jun.
2021

Jul.
2021

Aug.
2021

Sep.
2021

Oct.
2021

Nov.
2021

Dec.
2021

Jan.
2022

Full year
107％

Feb.
2022

Mar.
2022

State ofemergency

Priority COVID-19
countermeasures

State ofemergency

Priority COVID-19
countermeasures

57 days

21 days

80 days

60 daysTokyo Prefecture
Total: 231 trading
days (Annual total
down 40%)
6This shows the trend of year-on-year changes in the transaction volume.
For the full fiscal year, the result was 107% over the previous year, 2% behind the plan, and
77% compared to fiscal year ended March 31, 2020.
About 60% of the time throughout the year, declarations to restrict people’s movements
to fight COVID-19 were in place, negatively affecting our transaction volumes every time
and the recovery from the impact has been slower than we had anticipated.

Overview of Performance for the fiscal Year Ended March 31,2022
Operating income up ¥500 million to ¥2.0 billion as targeted; increase adjusted for
one-time factors was ¥1.9 billion
Excluding
extraordinary
factors YoY

FY2021

FY2022

Billions of yen

Billions of yen％

Billions of yen

Billions of yen

1.5

2.0

133

0

＋1.9

229.2

245.3

107

-4.7

ー

Revenue

75.3

77.8

103

＋0.6

ー

ROIC （%）

0.5

0.7

+0.2

0.0

ー

OperatingincomeTransactions（VS.FY2020）

YOY

VS. Target

（77）

7

Here is the overview of the performance of the fiscal year ended March 31, 2022 .
Although transactions failed to achieve the plan, this was made up for by the reduction in
SG&A expenses among others, thus leading to the operating income of ¥2 billion, in linewith the plan and a year-on-year increase of ¥500 million. The increase in operating
income, when excluding extraordinary factors, would have been ¥1.9 billion.

Outlook of Operating income for FY2023
Operating income increase of 1.5 billion yen to 3.5 billion yen forecast for FY2023

OperatingincomeFY2022

FY2023
TargetBillions of yen

Billions of yen

YoY

Excluding
extraordinary
factors YoY

YoY Change％

Billions of yen

Billions of yen

178

+1.5

+2.6

110

+24.7

ー

2.0

3.5

Transactions

245.3

270.0

Revenue

77.8

78.1

100

＋0.3

ー

ROIC （%）

0.7

1.3

ー

+0.6

ー

（VS.FY2020）

（84）

8

This is the outlook of the fiscal year ending March 31, 2023.
We expect the operating income to reach ¥3.5 billion, up ¥1.5 billion, or 78%, year on year.
Transactions are expected to total 110% of the previous fiscal year, and 84% of the fiscal
year ended March 31, 2022 due to the delayed recovery from the pandemic.

Factors affecting Outlook of Operating income for FY2023
Operating income is forecast to increase ¥2.6 billion adjusted for one-time factors
Increase after adjustments+¥2.6 billion

Extraordinary factors-￥1.1 billion

Revenue growth +1.6

(Billions of yen)
Increased revenue
from fixed-term rental
contracts
Expansion of“Eventful” stores

2

FY2022

Cost
reduction
＋1.0

4.6

Extraordinary loss
on fixed costs inprevious year

-1.1

3.5

＋1.1

＋0.5

FY2023Operatingincome after
adjustments

FY2023

Here are the factors affecting the operating income.
The growth in revenue is forecasted to contribute ¥ 1.6 billion, and when we exclude
extraordinary factors of fixed costs, the increase in operating income is expected to be¥ 2.6 billion.
More details will be given later in the presentation.

9

2
Future Initiatives

Let me now take over and explain about future initiatives.

Revisions Made Since Formulation of Medium-Term Management Plan
Vacancy risk has declined, but growing risk of fall in rent due to worsening
profitability of traditional retail sales(Billions of yen)

12

Operating income

1) Vacancy risk ➡ Down
5%

10
-2

Worsening
real estatemarket

+4

3%
20.3

8

6%

9% Shopping center
In Japan

3%

3%

21.3

22.3

Marui

2) Risk of fall in rent ➡ Up・ Slow recovery in transaction volume

FY2020

Profit level after
pandemic brought
under control

FY2026VS.
FY2020

21.3

22.3

23.3

72%

77%

84%

・Traditional retail tenants’ profitability declining amid
yen depreciation and rising raw material prices
11

Today, I would like to discuss how we are going to achieve ¥12 billion in operating income
planned in the final year of the Medium-Term Management Plan, which we have been asked
about quite often.
First, I will go over the revisions made since we formulated the Medium-Term Management
Plan in May last year.
The overall structure has not changed.
We have assumed that our operating income would not return to the pre-pandemic level of¥10 billion even after the COVID-19 was brought under control and therefore haveincorporated a drop of ¥2 billion, while implementing various initiatives to boost the profit toreach ¥12 billion.
What has been changed is the breakdown of the decline of ¥2 billion. We did assume twopotential risks, but one of them, the vacancy, has not gone up.
But the risk of a fall in rents has been increasing, which we expect to manifest itself fromthis fiscal year onward.
The reasons for this forecast are a delayed recovery in transactions and declining
profitability in traditional retail tenants, especially in the apparel business, due to thedepreciation of the yen and rising raw materials costs.

Breakdown of Operating Income of 12.0 Billion Yen
Target operating income of ¥12.0 billion in FY2026 (up ¥10.0 billion from FY2022)
taking into account certain assumed risks(Billions of yen)②

Stores that
don’t sell①

“Eventful ”
store

2.0

③

E-commerce
restructuring

Cost cuts

Other

＋1.0

12.0

＋2.0

＋1.0

＋3.0

＋3.0

FY2022

FY2026

12

After accounting for this risk of the negative impact, we have come up with the forecastof ¥10 billion-growth from the fiscal year ended March 31, 2022.
The breakdown is; ¥3 billion attributed to “Eventful” store, another ¥3 billion to Storesthat don’t sell, and ¥1 billion to E-Commerce restructuring.

Breakdown of Operating Income of 12.0 Billion Yen① “Eventful ”store② Stores that don’t sell
③ E-commerce restructuring

13

I will now give you more specifics on each of those three contributions.

Breakdown of Operating Income of 12.0 Billion Yen① “Eventful ”store② Stores that don’t sell
③ E-commerce restructuring

14

First is to create “Eventful” stores.

Progress with “Eventful ”store
Revenue from events quadrupled to ¥1.4 billion. Targeting ¥4.5 billion (+¥3.0 billion) in
FY2026■ Revenue from events/share of floor area used for events

10%(Billions of yen)

+3.0

3%

1%

4.5

Share of floor area

+1.0

Total for FY2023 - FY2026

20,000 new
events need to
be developed

1.4

Revenue

0.3

0回

FY2021

0回
FY20220回
FY202615

We have been expanding events with the aim of creating enjoyable stores where there isalways something new to discover.
Last year, regardless of COVID-19, we were able to increase our revenue by ¥1 billion,
and we expect to increase our revenue by another ¥3 billion by the end of the MediumTerm Management plan.
To achieve this, we need to develop 20,000 new events.

Withdrawal from Specialty stores, Expansion of Events
Shift from specialty stores to profitable events to add 3.0 billion yen to profits in
FY2026

Withdrawal from
specialty stores

Revenue -¥2.0 billion

Area of sales floor space discontinued in
FY2023：9,900m2

Expansion of events

Revenue ＋¥3.0 billion

Former specialty store space to be
utilized：165,000m2

Streamline expenses

Expenses -¥2.0 billion

Workforce head count down：700
For specialty stores and up：400 for events

Profit +￥3.0 billion
16

Along with the expansion of events, we are also withdrawing from specialty stores.
While there will be a negative impact of ¥2 billion in revenue, we expect an increase of ¥3billion from the increase of event Related revenue.
Both specialty stores and events are operated by our own employees, but events require
fewer headcounts.
Therefore, we will be able to reduce expenses by ¥2 billion. By shifting from specialty
stores to events, our profit can improve by ¥3 billion.

Breakdown of Operating Income of 12.0 Billion Yen① “Eventful ”store② Stores that don’t sell
③ E-commerce restructuring

17

Next, we will focus on Stores that don’t sell.

Progress with Stores that Don’t Sell
In FY2022, 50% of floor area occupied by non-retail tenants as targeted.
Aim to expand share to 70% by FY2026.
■ Non-retail tenants composition■ Per-store revenue

Traditional retail tenants

50%

Experience
focused15％

Food,services

30％

Permanent
events5％

FY2022＞

1.0

Non-retail tenants

1.1X＊Actual results for FY2022

70%

FY202618

Next, we will focus on stores that don’t sell. We have been working on this since before
COVID-19.
In response to customer needs, we have been reducing traditional retail tenants andexpanding non-retail tenants.
As of the end of March this year, the ratio was 50 to 50, and we will further shift to reach
30:70 ratio running up to the final year of the Medium-Term Management plan. In terms ofrent or revenue per store for the past year, non-retail tenant was 1.1 times of traditional
retail tenant.
Therefore, making a shift will lead to higher per store revenue.

Expanding Revenue with Stores that Don’t Sell
Forecasting ¥3.0 billion increase in revenue from fixed-term rental contracts byadding more non-retail tenants with high per-store revenue■ Fixed-term rental revenue(Billions of yen)

＋6600㎡

76%

72%

Floor area
breakdown

39

＋3.0

42

FY2023 - FY2026

New tenant development

1,100

new
tenants needed
RvenueFY2022

FY202619

In addition, since we can expand the fixed-term rental floor area by another 6,600 square
meters toward the final year of the medium-term management plan, together with increasein per-store revenue, fixed-term rental revenue has a potential to improve by ¥ 3 billion.
To achieve this, we need to develop 1,100 new tenants.

Examples from Stores in Central Tokyo

Yurakucho Marui

Shibuya Modi

Experiential museum

Crowdfunding social space

Art + Video + Digital
Entry fee: ¥2,000

Meeting place for business owners and supporters.
Equipped with studio for YouTube streaming

Expected visitor numbers per year

Yurakucho Marui

NFT marketplace
Anime cels and original drawings exhibited
Provision of opportunities to learn about NFTs

Expected views per year:

150,000

60,000■ Customer traffic in FY2022 for all stores by category
Traditional retail＞

1.0

Non-retail

1.6x

20

Let me show you a few specific examples of the types of tenants we are developing.
This past March, in Yurakucho Marui, NAKED,INC. opened a 660 square meter experiential
type of museum, which is a collaboration of art, video, and digital. The museum is
attracting a lot of traffic every day.
At Shibuya Modi, CAMPFIRE, our co-creation investee, has created a community ofcrowdfunding supporters and owners, and is distributing a lot of information on You Tube
from the studio attached to the store.
We also have the first NFT showroom in Japan. Like such, we are pleased that our real
store is being used as a platform for fusion of online and offline.
Furthermore, last year, the total number of customers visiting non-retail tenants was 1.6
times compared to traditional retail tenants, contributing to overall traffic.

Examples of Suburban Stores
Soka Marui 6F

Marui Family Mizonokuchi 8F

CASA COLOR

Neuron Mahjong School
Mahjong school

Education service

Early childhood education andtutoring school

Pasokon Shimin Koza

Koundou

Kanda Gaigo Kids’ ClubNEIS Taiso Kyoshitsu

Computer school

Buddhist altars and ritual objects

English conversation school

Gymnastics classes for children

Gray hair coloring salon

Kumon Soka

Hanamaru Gakushukai

21

Not only in city centers, but also in the suburban area, we are expanding the number ofexperience-focused stores.
At the Marui Family Mizonokuchi, we are creating recreational space in the community for
elderly customers to gather together for gray hair-coloring, mahjong school, personal
computer school, and other activities.
The mahjong school is wholesome, but so popular that the tables are filled right after it
opens.
On the other hand, the Soka Marui has a floor with a collection of cram schools and otherclasses for children, which is busy with local parents and children.
We will continue to create these types of experience-oriented stores aligning to the needsof our customers.

Preconditions for Shift to Eventful Stores and Stores that Don’t Sell

Development of
more events and stores

EventsTenants

20,0001,100＊Total for FY2023
through FY2026

New Tenants that Align withMARUI’s Values
Sustainability
Internet-originatedexperiential tenants
Tailored to each individual’sinterests

22

In order to “Eventful” stores and stores that don’t sell, there is a challenge that must be
overcome.
That is the development of business partners.
We need to develop 20,000 events and 1,100 tenants. We also need to develop new typesof tenants, such as tenants focusing on sustainability and tenant originating from theinternet.
We intend to overcome these high barriers with the help of digital technologies.

Digital Transformation Services Developed by Business Partners
Collaborating with co-creative investee Counterworks Inc. to develop online store
opening platform
Features of OMEMIE
Completely online

Open information

June 2021

Began small-scale trials

January2022

Events listed at all 150 shopping
floor spaces handled through theservice

FY2022All spaces available under fixedterm rental contracts to be listed23

In collaboration with our co-creation investee, Counterworks Inc, we have launched
OMEMIE, an online store opening platform.
This service allows customers to complete everything online, from making inquiries tosigning contracts.
The test began last year and the service went into full-scale operation in January of thisyear, with a full list of events at all floor spaces. We plan to list all spaces under fixedterm rental contracts as well by the end of this year.

Improve Fixed-Term Rental Contracts as Prerequisite for Digital Transformation
Simplify the numerous expense items in fixed-term contracts to make it less stressful
for tenants to open stores
Variable
5 items Utilities, etc.
15% expenses
Common service charge

Currently all
paper-based

Tenant fee

Shared25% expenses

Parking fee
16
items Signage updating fee
Internet usage fee
Cash deposit/change
machine usage fee

60%

Rent

2 items Fixed rent

Recurring promotional
feeInternal logistics fee
Air conditioner usage
fee
Gift voucher fee
Contactless payment
terminal usage fee
Other

18
items

1
item

Sales-based rent

Value
breakdown

24

It was necessary for us to review the contract in order to realize this Digital
Transformation.
This fixed-term rental contract has its characteristics of having many expense items andbeing so complex.
As you see here, we are contracting all these items one by one with our tenants, and we
do settle the amount every month.
So we decided to review this industry standard practice, and we integrated all these 18
items into one.

Digital Transformation of Business Partner Development Using OMEMIE
All required information can be obtained using OMEMIE. Entire process of opening stores to signing contracts
can be completed online■ Search by facility/use

Select facility■ Detailed information■ Conditions for opening store

Conditions for
opening store

Select by use

Monthly rent

¥720,000 (+tax)

Utility and credit card fees
charged at cost

Area 42㎡
LayoutFacilities○Water○Air-conditioning○Wi-fi○Ventilation○Power○Fittings

InquireApply
25

With this done now, our tenants can now easily search online all the available spaces.
They can now get all the necessary information and make applications without any stress.

OMEMIE Plan
Switch from push- to pull-type business model resulted in 220 new stores opening,
including many from unexpected business partners
First physical store

First store opening in MARUI facility

fumo-shop.com

８KATTE

Online sales of gaming devices for e-sports.
Instore experience encourages customers to make
E-commerce purchases

Trading company based in
Yatsugatake area. Held first local
specialty sales event.

50%

90%

26

By changing our approach to develop our business partners from the push style to pullstyle, we found unexpected business partners, and we succeeded to have 220 new storesopening for the events.
Fumo-shop.com is an online company selling gaming devices. The company wanted tohave its customers to actually use and experience its mouses and keyboards in the real
store.
This time the partners participating in real stores for the first time accounted for one halfout of the 220 stores.
As for 8KATTE, they wanted to introduce speciality goods from the Yatsugatake region.
The business partners like them who opened up the Marui stores for the first time
accounted for 90%.

OMEMIE Plan
Targeting development of 20,000 events and 1,100 tenants by growing OMEMIE■ Events developed per year

■ Tenants on fixed-term rental contracts
developed per year

6,000

(events)

Others

2,900

5,400

(tenants)

300

250

270

OMEMIE220
FY2022

FY2026FY2022

FY202627

Going forward, we plan to expand stores through OMEMIE, and in the final fiscal year, we
believe we can develop 20,000 events and 1,100 tenants by developing events and storesthrough OMEMIE as much as 90%.

Breakdown of Operating Income of 12.0 Billion Yen① “Eventful ”store② Stores that don’t sell
③ E-commerce restructuring

28

Now the 3rd point on E-commerce restructuring.

Outlook for E-commerce transactions
Transaction volume bottomed out in FY2022 and is now beginning to recover;targeting ¥30.0 billion in FY2026■ E-commerce transactions

30.0(Billions of yen)

24.2
18.6

FY2019FY2020

FY2021

FY202219.5

FY2023

FY202629

The total volume in e-commerce last year was ¥18.6 billion, showing a decline year on
year over the past 3 years.
I know you are worried about this, but my I remind you that we have already hit thebottom last year, and starting from the current fiscal year, it will move into a recovery
trend.

E-commerce Transaction Volume (YoY Trends)
Transaction volume has recovered recently after digitally-savvy personnel began
making UI improvements
Newly establisheddigitally-savvy personnelof which( professional personnel

11persons
3persons)

120
（％）

86％

86％

1Q

93％

2Q

3Q

101％
4Q

108
100

93

80

90

MAR.

APR.

97
89

81
76

71
APR.

106

102

98

83

60

108

MAY

JUN.

JUL.

AUG.

SEP.

OCT.

NOV.

DEC.

JAN.

FEB.

30

Centering around the digitally savvy personnell, we have started our efforts to drastically
improve our UI.
With this, the transaction volume in the 3rd quarter was 93%, and 101% in the 4th quarter,
showing a sign of recovery.

Initiatives for Further UI Innovation

FY2022 results
120

Visitors (YoY)
Transaction
volume (YoY)

101

89

・On going SEO measures

Visitors
・Personalized app notifications
increased
・Ad optimization using AI

98
92

120％

106％

93
86

FY2022 1Q

86

2Q

FY2023 plans

3Q

4Q

FY2023Raise CVR

・Replace search engine within site
・Auto-tagging of product information

31

Last year, we put a major focus on increasing the number of visitors.
We continued our SEO measures, and personalized notification through our apps based on
the history of customers’ behaviors. With this done, the number of visitors in the 4th
quarter expanded by 120%.
As for this fiscal year, we plan to achieve 120% for the full year. Furthermore, for thecurrent fiscal year, in order not to reduce the usage of the increased number of thecustomers, we are going to be engaged in a series of efforts to further improve theconversion rate, including replacing the website search engine.

Initiatives for Cards Tailored to Each Individual’s Interests
Expand transaction volume by strengthening event-based E-commerce in collaboration with stores■ Event-based E-commerce transaction volume target

FY2022 result¥50

billions
Tokubigumi Fest
Revenue: ¥44 million

SUPERBEAVER
1,650 new cardholders

Took orders for, and soldproducts produced incollaboration
with Tokugawa Art Museum

Four-piece rock band
Card issued, limited-edition
merchandise soldFY2023 plan

¥13

¥0.6

billions

billions©NOMAD RECORDS

FY2022

FY2023

FY2026

Anime

Performing artists

32

We are also working on the contents as well.
For initiatives for cards tailored to each individual’s interests, we are expanding eventbased e-commerce in collaboration with the stores.
Last year, thanks to the collaboration we had with Tokugawa Art Museum and SUPERBEAVER, we had successful events.
For the current year, we are planning to expand the transactions 2times or higher to reach¥1.3 billion, and it could be possible to grow to ¥5 billion in the final year of the MediumTerm Management Plan.

Target operating income of Retail segment
Target operating income of ¥12.0 billion in FY2026
Medium-term management plan

Billions of yen

100
10

550

0

12

10

FY20201.5

2.0

FY2021

FY2022

3.5
FY2023

FY2024FY2025

FY202633

Operating income for Fiscal Year ending March 2023 is showing ¥2 billion, a low level, but
we will improve profit by working on “eventful” stores, stores that don’t sell andrestructuring E-commerce.
Our recovery from COVID-19 has been slow, but we intend not to go back to pre-COVID
level, but rather by changing the business contents, we would like to realize ¥3.5 billion forthe current fiscal year, and ¥12 billion in the final year of the Medium-Term Management
plan.

News release:
Notice Regarding Rebuilding of Shibuya MaruiNow allow me to explain the reconstruction plan we announced today.

Rebuilding Shibuya MaruiCreating Japan’s first large-scale wooden retail building
Approximately 60% of the structure will be timber; achieving a CO2 emissions
reduction of around 2,000 tons versus a steel-framed structure
In order to turn the building into a symbol of sustainable store development, alltenants will be sustainable tenants
Global pioneer of sustainable architecture Foster + Partners are the lead designers

The Shibuya Marui will close on August 28, 2022;
scheduled to reopen in Spring 2026
35

The current Shibuya Marui will be closed temporarily in August this year, and it will
undergo the reconstruction work and it will become Japan’s first large-scale wooden retailbuilding.
This symbolizes our sustainability efforts, and the tenants there will be limited to thosebusiness partners who are making efforts to reduce environmental impact and engaged insocial contributions. We plan to reopen it in Spring 2026.

Image of rebuilt store (1)36This is an image of the exterior of the new store as seen from Shibuya Park Avenue.

Image of rebuilt store (2)37This is an image of the storefront.

Image of rebuilt store (3)38Here is an image of the interior of the store.

Image of rebuilt store (4)39Finally, here is an image of the rooftop café.
While improving the value of the real stores, we would like to further advance our touchpoints with our customers.
This concludes my explanation.

Q&A

M A R U I I R DAY
P r o g re s s a n d
Fu t u r e I n i t i at i v e s
i n t h e F i nTe c h S eg m e n t

May 27,2022

I am Hiromatsu.
I will walk you through the progress and initiatives of the FinTech Segment.

Content of today’s presentation

1

Overview of Performance for
Fiscal Year Ended March 31,2022

2

Future initiative

This is today’s agenda.

1Overview of Performance for
Fiscal Year Ended March 31,2022

First, let me touch on the overview of the performance of fiscal year ended March 31,2022.

Digest・ Operating income and ROIC targets attained; revenue and profit growth
for the first time in two years
・ Transaction volume exceeded ￥3 trillion for the first time thanks to cardcredit growth・ 610,000 new cards issued (+80,000 YoY); number of cardholders at fiscal
year-end increased YoY

44

Here is the digest.
We achieved our targets in operating income and ROIC and saw both revenue and profit
grow for the first time in two years.
Transaction volume exceeded ¥3 trillion for the first time thanks to a growth in the cardcredit.
610,000 new cards were issued, up 80,000 from a year before, turning the year-on-yearchange in the number of cardholders at the end of the fiscal year into the positive
territory.

Main KPIs
■ Operating income・ROIC

600

ROIC
4.6%

41.2

38.2

3

■ Total cardholders

3.20052.6788New cardholders
810,000

800

610,000

2.7604（Millionsof people）

2

50.0

72

70.9

71.4

70
700

-2.0

20.2

20
200

-4.0

10
100

FY2021

FY2022

-8.0

30.0
10.0

1

500
50

-10.0

-6.0

FY202070.0

530,000

2.0
0.0

300
30

0

（Trillionsof yen）

4.0

2.5%

500
（Billionsof yen）
400

5.0%■ Total transactions

0

FY2020

FY2021

FY2022600

FY2020

FY2021

FY2022-30.045This page shows main KPIs in the FinTech segment.
The operating income, ROIC, and total transaction volumes expanded steadily, posting
record-highs, while new cardholders and total cardholders at the end of the fiscal year
failed to reach the pre-pandemic levels, which we regard as a challenge for us.

Card Credit Transaction Volume
Card credit transaction volume was ¥3.1 trillion (+¥430 billion YoY)
YoY
Difference

Changefrom
FY2020Billions ofyen

Billions ofyen

Billions of
yen

Rent

573

＋110

＋224

E-commerce

522

＋49

＋168

Regularpayments

309

＋22

＋41

Travel &entertainment

271

＋83

-71

Commercial
facilities

255

＋26

-13

Food

104

＋18

-4

■ Card Credit Transaction Volume
3.5

3.1

（Trillionsof yen）

2.5

2.5

2.6

1.5

0.5

FY2020

FY2021

FY202246

Here we show breakdown of the transaction volume.
The transaction volumes of rent, E-commerce and regular payments, which we have beenemphasizing, have been steadily growing.
Especially, rent payments have increased by more than ¥100 billion year on year, driving
the overall growth.
Moreover, travel and entertainment and commercial facilities, which failed to recover topre-COVID-19 levels, did see a significant increase due to the rebound from the lower
levels of the previous year.

Installment and Revolving Payments
Transaction volume trended at a level similar to that of shopping growth,
for a record high balance at end of FY2022

118
4500

119

124
119

115
108

123

117

115 ％ Shopping

116
116

（Billionsof yen）

120

101
90

Installment
114 % and 100
revolving

368.9

350
3500

80
60
40

366.3

250
2500

Balance

356.0

20
0

1500

FY2016FY2017FY2018FY2019FY2020

FY2021

FY2022▲ 20

As the card credit grew, transaction volumes of installment and revolving payments
trended at a level similar to that of shopping growth, with the balance at the end of the
fiscal year topping pre-COVID-19 levels, posting record highs.

47

Installment and Revolving Payments
Installment payment transactions volume increased 7x, balance increased 4x compared to FY2016,prior to business strengthening measures■ Transactions■ Balance（Billionsof yen）（Billionsof yen）

292

3000
300

7times
200
2000

165.3

147.8

368.9

4times300
3000

Installment200
2000transactions

component

24%

218.4
19.0

289.6

23.9

100
1000

0

79.3

100
1000

123.9

126.7

FY2016FY2022

Revolvingtransactions
0

199.5

FY2016FY202248

Installment payment presents less barriers for customers to try using them, and havehigher potential needs than revolving payments, and therefore, we have been focusing onthem all along.
As a result, its transaction volume grew 7times compared to the period prior to thisinitiative, exceeding that of revolving payments, and increased 4times in terms of thebalance, pushing up its share to 24%.

Comparison of Installment and Revolving Payments■Results of FY2022

1．Installment payments have a short
payment period, which encourages
frequent use of cards⇒Fast turnover of funds
2． Affiliate commissions; ratio ofbad debt write-offs also half

Contributed to improving ROIC

Installment
Averagebalance(funds invested)

Revolving

Billions of yen

Billions of yen

58.9

294.5

Finance charge

10.2

37.7

Affiliate
commissions

2.5

2.0

Provision forbad debts

0.9

5.8

ROIC

5％

＞

2%
49

Installment payments are shorter in the payment period than revolving payments, andencourage frequent use of cards, leading to fast turnover of funds.
In terms of revenue, they help increase merchant fees while provision for bad debts is
kept at low levels, which result in higher return on invested capital (ROIC).
Its ROIC was higher than that of revolving payments in the previous fiscal year,
contributing to the improvement of capital efficiency.

Rent guarantees
Rent guarantees more than tripled in five years; target revenue of ￥25.0 billion in FY2026
by developing major alliance partners and expanding scope of business■ Office tenant rent guarantee■ Revenue and transections target

25（Billionsof yen）

Unit revenue：Office tenants＊20～30x≫

individuals

20
200

12.7
10
100

3.6
0

Transactions

FY2017

FY2022

FY2026

171.0

548.7

1 trillion～

Nomura Real Estate
Development “Ｈ¹Ｏ”

Coaska Bayside Stores

Promote collaboration withmajor real estate development
companies

Introduced rent guarantees atfacilities run in collaboration
with other companies
50

Next on rent guarantees.
The transaction volume and revenue of rent guarantees more than tripled for the past 5
years, representing a steady growth. We will develop alliance partners and expand thescope of the business to include rent guarantees for offices and tenants by leveraging theexpertise we gained so far. Rent guarantees for offices and tenants are larger in unit
revenue and therefore allow us to expand the business more efficiently than those forindividuals.
Therefore, we will promote collaboration with major real estate development companies
and introduce rent guarantees at facilities run in collaboration with other companies andaim to achieve a transaction volume of more than ¥1 trillion and double the revenue toreach ¥25 billion in fiscal year ending March 31,2026.

New Cardholders
New cardholders totaled 610,000 (+80,000 YoY), but down by approx. 200,000 from prepandemic levels■ New cardholder trends(Millions90of people)-200

thousand
600
60

0.81
300
30

0

FY20200.53

0.61

FY2021

FY2022〈 Main breakdown 〉
Store closures,shorter opening hours, etc.

-90,000 people

Decrease in overseas travel-60,000 people

Partners (hotels, restaurants,
etc.)-30,000 people

51

Next, I will talk about the status of cardholders.
New cardholders increased year on year, but fell short of the pre-pandemic level by
200,000, indicating that it has yet to recover fully.
The factors behind the shortfall of 200,000 include store closures, shorter opening hours,
and decrease in overseas travel, which are mostly due to COVID-19 and temporary.
Given that, since the beginning of this fiscal year, the number has been growing 1.4times in
April and May, we can expect a recovery going forward.

Cardholder
New cardholders exceeded cancellations; cardholders totaled 7.14 million at FY2022, increased YoY■Total Cardholders
0.81
770

New cardholders

750

Cancellations(Millions730
of people)

0.50

0.81

0.61
65

0.53

0.56

0.49
7.20
7.09

710
7.1
6.9
690

0.64

7.14

6.88
Card
holders

6.7
670

650

FY2019FY2020

FY2021

FY2022
52

With the increase of new cardholders, the total cardholders at the end of the fiscal year
counted 7.14 million, turning upward, after hitting the bottom in the year before.
We expect the cancellations to remain mostly flat going forward, and therefore, by seeking
to increase new cardholders, we should be able to increase total cardholders steadily.

Profit Contributions from Co-Creative Investment
Progress of co-creative investment initiatives on track; profit contribution of ￥4.0 billion
expected in FY2026 due to increase in cardholders and transaction volume■ Profit contribution■ Cardholders and transaction volume

4(Billionsof yen)40

30
3FY2022

FY2026

Cardholders

40,000300,000~

Transactions¥14 billion ¥100 billion~

Main cards created in collaboration
with co-creative investees

2
20

1
10

0.3
0

FY2022

FY2023

FY2024FY2025

FY2026

SurugayaＧＴＮ

New cardholders

New cardholders

13,0009,000

53Here you can see the profit contributions of co-creative investments.
In FinTech, the profit contribution from the synergistic effects of co-creative investments
is expected to be ¥4 billion in fiscal year ending March 31,2026.
Profit contribution in the previous fiscal year was ¥300 million, but we anticipate that total
cardholders and transaction volumes will increase through co-creative investments mostly
in line with the plan, which should allow the profit contributions to build up further.

Numerical Targets for Fiscal Year Ending March 2023
Target operating income of ¥44.0 billion (+¥2.8 billion YoY)

FY2022

FY2023targets

YoY

YoY change

YoY difference

Billions of yen％

Billions of yen％

Billions of yen

Total transactions

3200.5116

3720.0116+519.5

Revenue

138.2

101

151.5

110

＋13.3

SG&A expenses

97.0

84

107.5

111

＋10.5

Operating income

41.2

204

44.0

107

＋2.8
54

This is our plan for the fiscal year ending March 2023.
Total transaction volume is expected to be ¥3.7 trillion, up 16% from the previous year,
and operating income is ¥44 billion, up 7%, which will be an increase of ¥2.8 billion.

That‘s all from me.

2
Future Initiatives

This is Saito.

I will now explain about our initiatives going forward.

Future Initiatives

1 Breakdown of initiatives targetingtransaction volume of over ￥5 trillion
2 Initiatives to increase number of cardholders:
Direction for online signups

56

I’d like to cover these two points.

Future Initiatives

1 Breakdown of initiatives targetingtransaction volume of over ￥5 trillion
2 Initiatives to increase number of cardholders:
Direction for online signups

57

First, I will share with you the breakdown of ¥5 trillion plus transaction volume running up
to the final year of the medium-term management plan.

Cashless Payments Market in Japan
Credit card market growing 8% annually amid progressive shift toward cashless payments■ Cashless payments market¥95trilion

Annual growth rate of credit
card market

+ 8％

75

¥60trillion
81

50

Credit cards¥27trillion

Grew by＋

in five years

54
25

0

E-money,
other
2016

2017

2018

2019

2020

2021
58

First off, the credit card market in Japan.
Although it is said to be a mature market, it has been growing at an annual rate of 8% withthe progress of cashless transactions.
The market size in 2021 was ¥81 trillion, an increase of ¥27 trillion in 5 years. Despite thegrowth of E-money and code-based payment, credit cards still account for about 90% of
all cashless payments, making them the main player in the cashless market.

Credit card market outlook
Credit card market expected to exceed ￥100 trillion in 2025
■ Share of cashless payments by country■ Credit card market outlook

Share of cashless
payments

KOREA

95%

CHINA

77%

AUSTRALIA

59%

United kingdom

57%

USA

47%

JAPAN

32%

Source: Payments Japan Association “Cashless Roadmap 2021”＊2021 data for Japan, 2018 data for other countries

100（Trillionsof yen ）

75

100～

＋20～

81

50

25

0

2021

2025
59

Meanwhile, Japan's cashless ratio has grown to 32%, nevertheless, it is still low comparedto other countries, so it is expected to increase further in the future.
Given the current market growth and the government's target of 40% cashless ratio, thecredit card market is expected to exceed ¥100 trillion in four years.

Transactions forecast
Targeting card credit transaction volume of ￥5.3 trillion in FY2026, helped by shift to cashless
payments and independent growth■ Transaction of card credit

5.3(Trillionsof yen)Independent growth

16％

5

+1.3

Shift to cashless
payments

4

Average annual growth rate

+0.9

3.1

15％

3

1.6

FY2017FY2018FY2019FY2020

FY2021

FY2022

FY2023

FY2024FY2025

FY202660

Our credit card transaction volume has been expanding at an annual rate of 15%, higher
than the market growth, exceeding ¥3 trillion for the first time in previous fiscal year.
Going forward, by adding our own unique growth to the expansion driven by the tailwind of
cashless transactions, we will continue to maintain a higher growth than the market, aiming
to reach ¥5.3 trillion in the fiscal year ending March, 2026.

Independent growth: Marui Card Becoming Cardholder’s Main Card
Strengthen Gold Card and cards tailored to each individual’s interests, targeting more than
80% share of transaction volume■ Shopping transaction volume

4.2(Trillionsof yen) 40000

Cards tailored to eachindividual’s interests

330000Gold card

2.6
2200001.4

Share of transaction

80%

73%

10000

64%
0

Cardholder share of Gold
Cards and cards tailored toeach individual’s interests

FY2017

FY2022

FY2026

25%

45%

60%

61

I would like to explain two initiatives that will drive this unique growth. First is to make
EPOS Card the top of wallet card. EPOS Card has been working to increase transaction
volume by issuing its own Gold Card. The number of cardholders and transaction volumeof Gold Card have been growing successfully, and it has become a growth driver of EPOS
Card.
In addition to Gold Card, we intend to strengthen the card tailored to individual’s interests
and thereby increase the number of cardholders to about 60% of all cardholders andtransaction volume to more than 80% of the total by Fiscal year ending, March 31, 2026.
We will pursue our uniqueness and growth potential.

Independent growth: Maximize Share of Household Finances
Increase share of household finances by promoting use of cards in rent payments, regular bill
payments, and E-commerce to raise usage per cardholder■ Annual usage per cardholder■ Share of household finance¥700,000~

FY201712%

FY2026¥550,000＋¥200,000

Householdspending¥350,000

FY2017

FY2022

FY202622%～

Stabilize earnings

62

Next is maximizing the share within household finances.
EPOS Card has been promoting the use of credit cards for rent, recurring payments, ande-commerce in order to increase the share in household expenditures.
As a result, the amount spent per cardholder is ¥550,000, an increase of ¥200,000 overthe past five years, with the goal of exceeding ¥700,000 by the fiscal year ending March 312026.
As a result, the share of EPOS card in the average household finance is expected toincrease from 12% to more than 22%. We will continue to strengthen this initiative because
promoting card payment of fixed cost such as rent and recurring payment can reduce theextreme fluctuations in transaction volume as we experienced under the pandemic andcontribute to stable earnings.

Future Initiatives

1 Breakdown of initiatives targetingtransaction volume of over ￥5 trillion
2 Initiatives to increase number of cardholders:
Direction for online signups

63

Next, expand the number pf cardholders.
Today, let me explain our approach to online signups.

Online Signups
Increase share of cardholders signing up online to 34% of new cardholders
by strengthening online ads
30

40%

of
34% Share
cardholders
35%(Millions ofpeople)

16%

0.2
20

0.21

signing up
30%
online
25%
20%
15%

10
0.1

3%

0.12

10%
Numberof online
5%
signups

0%

-5%

0.02
0

FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022-10%

Strengthen online ads
Online application and instore card pick-up service
64

In the past, most of enrollments for EPOS Card were done at Marui stores, but from 2015,
we began to accept application online with card pickup at the store, as well as strengthen
affiliate marketing in order to attract new cardholders.
As a result, the number of online signups increased to 210,000 in previous fiscal year,
accounting for 34% of all new cards, a dramatic increase.

Online Signups
Cardholders signing up online have higher LTV than those signing up instore, but acquisition cost percard has gone up due to rising advertising expenses■ Acquisition cost per card

■ LTV

2～3times

Stores

ＬＴＶ

OnlineStores

獲得単価

Online65

In addition, while online signup cards have a higher LTV than instore signup cards because
many cardholders compare their cards with those of other companies and have a purposein mind, the acquisition cost per card has risen to 2 to 3 times over the previous cost due
to the increased competition and higher advertising fees.

Direction for online signups
Increase number of new cardholders signing up online while keeping acquisition cost per card low

Mainly advertising

Mainly co-creation
Cardholders
signing up online

Acquisition cost
per card
FY2022

FY2026
66

Therefore, for online signups going forward, we would like to review the current efforts
which have been dependent on advertisement.
We would like to control the acquisition cost per card, and to aim to further expand thenumber of cardholders through a variety of co-creations

Trends of Cards tailored to each individual’s interests■ Share of young people(under 40)■ LTV

2～4 times

+14%

55%

■ Acquisition cost per card

69%

Regular Cards tailored
若者比率
to eachcard
individual’sinterests

1
10
Regular Cards tailoredＬＴＶ
to eachcard
individual’sinterests

Regular Cards tailored
獲得コスト
card
to each(Online)individual’sinterests

67

Let me explain our specific initiatives.
First, we are working on cards tailored to individual’s interests. Compared to general cards,
this card has a higher ratio of young people in their 30s or younger, and is a highly
profitable card with an LTV of 2 to 4 times that of the general cards. The acquisition cost
per card is about one-tenth that of affiliate and others advertising, making it extremely
low-cost. We will expand the number of card members while keeping acquisition costs low
by shifting our focus from online advertising to cards tailored to individual’s interests.

Plan of Cards tailored to each individual’s interests
Sharply increase new cardholder online signup for cards tailored to each individual’s interests■New cardholders(Millionsof people )

0.15

©カラー

Instoreevents

20

0.2

0.1
©2022 San-X Co., Ltd. All Rights
Reserved.

33 projects©赤塚不二夫／おそ松さん製作委員会

10

0

0.1

0.15

Online0.04
FY2022

FY202668

Now our plan for cards tailored to individual’s interests.
As of now we have 33 projects going on. So far we have recruited our members centering
around the instore events. But going forward, as for cards tailored to individual’s interests,
we will strengthen our collaboration with SNS and business partners because it will lead tocreate fans with high loyalty going beyond the economic incentives. By aiming at morethan 100,000 online signups, we will be engaged in efforts to expand the overall membersof the card tailored to individual’s interests

Digital cards
Introduce digital cards and strengthen collaboration with payment companies; target
100,000 new cardholders in FY2026■ New cardholders（Millionsof people)
MARUI MARUKO

0.1

0.1
10

0.03

カード番号
0101 0101 0609 0101

Digital card

有効期限
08 / 2026

セキュリティコード
●●●Major payment
companies

5

0.05

0.02

・Responds to need for immediate issue anduse for E-commerce・ Card applications accepted 24/7;
personalized card with choice of card designs

0Partners

0.07

FY2022

FY202660

200
69

Let me talk about digital cards.
EPOS Card has long offered instant issuance and instant use at stores, and this fiscal
year we will begin issuing digital cards for instant issuance and instant use online. Thisinitiative is highly anticipated by our co-creative investees as well as responding to theneeds of those who join online for immediate use on the e-commerce sites.
Specific details are currently under consideration, but we are preparing for a unique cardthat can be applied for 24 hours a day and has a choice of card designs, taking into
account the characteristics of online. In addition to the introduction of digital cards, we willfurther strengthen our ongoing collaboration with major payment companies in order toincrease the number of affiliated sites and the number of cardholders.

Cardholder Distribution in Japan
Increase share of cardholders in areas outside Tokyo and neighboring prefectures, which offer
greater scope for growth
FY2015■ Cardholder share

FY2022＋1%=

20%● Over 10%＋300,000● Over 5%● Under 5%＋1%=

16% ＋800,000

15%

0%

(万人)

Number of
Cardholder

4%

3%
Tokyo
Kanagawa
Saitama

Others

5.9 millions

Tokyo
Kanagawa
Saitama

Others7.14 millions

70

Next, updating on cardholder distribution in Japan.
To date, we have worked to expand our cardholders by developing tie-up facilities andpromoting nationwide expansion. However, the share of cardholders outside of Tokyo,
Kanagawa and Saitama prefectures is only 4% compared to the share before thenationwide expansion, and the gap to the areas where Marui stores are located has notbeen narrowed.
We still have a big room for growth. We can expect to increase our cardholders by 800,000
if we increase our market share by 1%. We would like to further increase cardholder shareoutside of Tokyo, Kanagawa and Saitama prefectures by strengthening our online efforts.

New Card and Cardholder Targets
Double number of new cardholders signing up online; target 1 million new cardholders and8.5 million total cardholders in FY2026■New Cardholder Target(Millionsof people)■Number of cardholders(Millionsof people)

1.00

100
1

0.40

Online

0.61
0.5
50

0.21

750
7.5

0.20

(万人)
0

FY2022

7.14

Services

0.13
0.27

8.5

850
8.5

650

0.40

Commercial
facilities

FY2026

6.5

(万人)
550

FY2022

FY2026

Next our plan on new cards and cardholders.
In commercial facilities, we aim to secure a stable membership of about 400,000
cardholders per year through recovery from COVID-19, and to expand online signups
twice the current level, aiming for 1 million new cardholders per year.
With this done, the number of cardholders at the end of the fiscal year is expected toreach 8.5 million.

71Medium-termManagement plan72

Lastly, I will touch upon Medium-Term Management Plan.

Changing Business Structure
Enhance corporate value with initiatives that strike a balance between profitability
and capital efficiency■ Revenue■ Card companies’ KPIs

5.0%
(Billionsof2000yen)

3.8%Service

ROIC
1500

54%

1000

37%

Installment

5000Affiliate
commissions

Revolving

65%

ROIC

ROE (reference)

Marui Group
FinTech5.0%45%Company A

1.6%

14%

Company B

1.6%

7%

1.2%

7%

Company C

Cashadvance

FY2017

FY2022＊ Other companies’ KPIs are estimated by Marui Group.

FY202673

Lastly, I will touch upon Medium-Term Management Plan. In FinTech, we have beenworking to shift our revenue structure from the one that relies on interest income fromrevolving and cash advance to the one that is more capital efficient, such as affiliate
commissions and service income.
As a result, the composition of these revenues has risen to 54% of total revenues, withROIC at 5% in the previous fiscal year, a record high, and ROE at a high level, ensuringindustry-leading efficiency.
We intend to continue our efforts to enhance corporate value through initiatives based ona balance between profitability and capital efficiency.

Operating Income Forecast
Target operating income of ¥53.0 billion in final year of Medium-Term Management Plan
（Billions
of600
yen）

Medium-term management plan

40

400

53.0
20
200

38.2

41.2

44.0

FY2022
3

FY20234

20.2
0FY20201

FY2021
2

FY20245

FY2025
6

FY2026
7

74

Finally numerical targets.

We were able to achieve our operating income target of ¥41.2 billion in the previous fiscal
year, and we will continue to increase profit by about ¥3 billion each fiscal year to reachour goal of ¥53 billion in operating income for the fiscal year ending March 31, 2026.

That’s all from me.
Thank you for your kind attention.

Q&A

The forward-looking statements contained in this presentation are based on information available at the time of
preparation of this presentation and certain assumptions that MARUI GROUP deems to be reasonable. The
forward-looking statements may differ materially from actual results due to a variety of different factors. Please
direct any inquiries to the IR Department (marui-ir@0101.co.jp ).