Investors Guides

S e p t e m b e r, 2 0 2 4

Company Overview
MARUI GROUP has consistently operated businesses that integrate retail and finance

Brief Summary of Our Business＜Retailing Segment＞＜FinTech Segment＞

Currently operating a total of 22 MARUI department stores andother commercial facilities nationwide, mainlyin the greater
フィンテックTokyo area and other major urban centers. They consist ofdiverse tenant shops such as Apple Store, D2C brands, etc.

Issued first credit card in Japan. Annual Growth Rate is 15％,
which exceeds average rate in credit card industry (8%) becauseof our unique methods.

Operating income

7.0 billion yen

Operating income

42.4 billion yen

Number of stores

22 store
180 million customers

Cardholders

7.59 million

Transactions

4,100 billion yen

Number of customers（Pre-COVID19 （FY2020）10 billion yen）

＊24.3 Result＊24.3 Result

共創投資

Yurakucho Marui

Hakata Marui

Copyright All Right Reserved. MARUI GROUP Co., Ltd.

2

Financial Overview of Retailing/FinTech
The majority of operating income comes from FinTech■ Operating income and cardholder numbers(Billionyen)

Fintech700Retailing600Retail-related services

7.31
million

8.50
million(Millionpeople)

800

Cardholders

300

Operatingincome

53
42.5

500
400

200200100

3.6121000Retailing

8：26003000FinTech

700

500

400

900

Composition of Operating
IncomeAlthough belonging to the retail industry, around
80% of our operating income comes from theFinTech segment.
Steady annual growth in cardholder numbers has
enabled profits in the FinTech segment to growcontinuously.

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2026

(Forecast)

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3

Unique Business Model Integrating Retailing and FinTech
Touch Point

Admission(credit)

OtherCompanies

Enrollment primarily through online

Granted based on income,years of service, assets, etc.

MARUI
GROUP

Enrollment through Stores and Eventsin addition to online“Co-creation ofCreditability”(40% via stores and events)
・ 180 million store visits per year
・Hold anime and other events at stores and outsidefacilities (5,300 at stores, 300 at outside facilities/year)
・Faces available according to your “favorite” subject,such as anime, characters, artists, etc.
(78 projects in total)

ContinuousContacts

To Main Card

Application focusing on
usage statements andpayment inquiries

Gold cardwith high annual fee

Application
pursuing UI and UXGold cardwith no annual fee(Only for applications
made through invitations)・Credit granted basedon usage and payment
results, not income

・Information on installment
revolving credit, etc.
according to the situation

・Guidance based on
frequency of use andamount of use, not income

・Low bad debt rate
based on co-creation ofcreditability

・Visualization of the path tothe Gold card

・Increased usage while
maintaining high installment
revolving payment usage

Younger generations become members

High utilization(e.g., installment and revolving payments)
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4

Large Revenue in the Business of the FinTech
We have been accomplishing lower ratio of bad debt write-offs compared to other companies in the industry
and large revenue because of the cardholder composition of predominately younger people, businesses that
integrate retail and finance, and the unique credit system that has been a strength since our founding
Cardholder composition by age groupMARUI GROUP

Credit card members

Industry as awhole

40s ~ ~ 30s

48％ 52％* Calculated based on active customers

26％74％

Installment and revolving payments receivable
per an EPOS Card in use

Ratio of bad debt write-offs

MARUI
GROUP

MARUI GROUP

1.6%

Distributor
Company C

2.1%

Distributor
Company D

1.1%

Distributor
Company C
Distributor
Company D

84,000yen

33,000yen

16,000yen

×2.5

×5.3

More than half of EPOS Card members are under 40 years old. Younger customers tend to spend a larger proportion of their income, so they tend to use
installment payments and revolving more. Some may think that a high ratio of installment and revolving balances would mean the ratio of bad debt write-offs
would also be high. However, our ratio of bad debt write-offs is 1.6%, which is comparable to other companies. This is possible thanks to our unique credit knowhow. This has enabled us to achieve high levels of profitability, which is one of our strengths.
Copyright All Right Reserved. MARUI GROUP Co., Ltd.

5

Stable Growth of the Transactions of FinTech
Stable profit growth achieved due to sustained increase in transaction volume of existing cardholders
This graph shows transaction volume of cardholders by enrollment year.
It shows that the average annual growth rate and the year-on-year growth rate
are positive not only for members who have joined recently but also for those who joined sixyears earlier. In this way, the transaction value of members who joined in the past hascontinued to increase over the following years, leading to a stable and accelerated increasein overall transaction value and a five-year average annual growth rate of 15%.

Usage record for the fiscal year ended
March 31, 2024, by year of enrollment← Transaction

FT2018FY2019FY2020

FY2021Time →FY2022

FY2023

Year of firstcustomer
purchase

YOY

CAGR

FY2024－－FY2023＋97％－

FY2022＋7％＋7％FY2021＋2％＋6％FY2020＋5％＋9％FY2019＋5％＋7％FY2018＋4％＋6％FY2024
Copyright All Right Reserved. MARUI GROUP Co., Ltd.

6FinTechSegment
Rise ofthe Second Growth Engine
Rise of theSecond GrowthEngine
Rise in the second growth engine following the gold card which drove growth of FinTech■Transaction
8（trillion）Secondgrowthengine

6

Average annual
growth rate

¥4.1trillion+16％

4Gold Card20

07.3 08.3
FY2007

09.3

10.3

11.3

12.3

13.3

14.3

15.3

16.3

17.3

18.3

19.3

20.3

21.3

22.3

23.3 FY2024
24.3

Futurefromnow on7

EPOS Cards that Support Individual Interests

Total of78 projects
Cardholders
Number900k＊ As of April2024

8

EPOS
Cards that Support Individual Interests「好き」を応援するカードとは
Cards that collaborate with anime, music , games, and more to support and be considerate of each individual's
diverse interests. In recent years, there has been an increase in social contribution cards where a certain percentageof card usage amounts goes towards donations or rewards related to the interests chosen by the cardholders
Music

Social Contributions

ZUTOMAYO Epos Card

Epos TOGETHER Card

Anime

EVANGELION
Epos Card

Sports78

RYUKYU GOLDEN KINGSEPOS CARD

EPOS
Only-One
Card

Characters

GamesPart1
Epos Pet Card

CHIIKAWA Epos Card

FINAL FANTASY VII REBIRTH
Epos Card＊ Actual card designs with customers'

projects in total

900k members

permission for publication

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9Status of Cards that Support Individual Interests
Cards that support individual interests in new membership account for over 40% .
LTV is 2 to 7 times higher than that for standard cards
Cards that support individual interests
in new cardholders

LTV
10100（thousand）

810

800
8060

140

270

350

Cards thatSupport
individualinterests

43%

room forgrowth540
400

2~7times

200

FY2022

FY2023

FY20240Classic Cards

Cards
thatLTV

supportindividualinterests

Gold cards
10Retailing Segment

Transformation of Department Store Operations

The Retailing segment will innovate and evolve to meet the changing times and customer needs

FY2014Department stores

FY2026（Forecast）

FY2021

Shopping centers（stabilize of revenue by fixed-term rental)
Withdrawal of private-brand specialty stores
Expansion of non-retail tenants and permanent exhibit events

Department store transformation

Contract type Category

27%
Consignment
sales

Private-brandspecialty stores
Fixed-term
rental

68%

20%
12%

82%

18%

Apparel, generalmerchandise＜Traditional retail＞
Food/ Services/
Experience focused＜Non-retail＞

30%

3%

44%

70%

3%
33%

11%
Permanentexhibit events＜Non-retail＞

59%

Non-retail

70%

Since 2014, we have been shifting our contractual structure from department stores with consignment sales systems to shopping centers with fixed-term rentalcontracts, thereby moving to a stable profit structure that is not affected by transaction volume. The transition to fixed-term rental contracts has enabled us tobring in tenants in a wide range of categories, including food, services, and experience focused stores. As a result, instore customer traffic is up 20% comparedwith levels a decade ago. In the future, we plan to complete our "department store transformation" by moving away from traditional "stores that only sell" toincrease the number of "stores that don't sell" and "eventful stores" by increasing non-retail tenants to 70%.
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11

Forecast of Operating income
Retailing will exceed the pre-COVID19 level by 12 billion yen.
In fintech, we achieved operating income of 53 billion yen, approximately 2.3 times as much as in 2016
Retailing

Fintech(Billion yen)(Billion yen)

14
140
12120
10100

12.0

11.4

53.0

50500

44.5

10.0
8.5

880

7.0

660

42.5

3.6

1.500

42.4

400
403003023.1440２20600602002020.21010000
FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 FY2025 FY2026

FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 FY2025 FY2026

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12

Mid-Term Strategy and Future Direction
EPS: Targeting 200yen for the fiscal year 2026 ending. Planning to achieve the amount of EPS byaccomplishing business strategy , capital measures, and impacts
Result and Mid-Term Growth Target（yen）
200200180160<FY ending March 2026Operating Income Plan>
FinTech: ¥53 billion
Retailing: ¥12billion

EPS ¥200
ROE 13%
ROIC 4.0%

Consolidated : ¥60 billion

140¥117.6120

Strategy and Measures to Achieve the Growth Target¥130.7（Record high）

100¥85.880

FinTech：Having customers to use EPOS Cards as theirmain card Strengthen the strategy to improve LTV

Retailing：Foreseeing the recover from COVID-19
Making MARUI stores more appealing■Capital policy
Capital reduction toward appropriate capital levels for each business・Total amount reached ¥50 billion and enabled us to optimize capital・ SharesSet maximum ¥20.0 billion acquisition limit in the first half of60

the fiscal year

40
200

■Business strategy■Impact

¥10.9
12.3

20.3 21.3

23.3

26.3

Based on “Vison 2050(disclosed in 2019)”, we set goals
on sustainability and well-being (→P.35)

EPS has been growing steadily since the fiscal year ended March 2012, reaching 117.6 yen in the fiscal year ended March 2020, and although it temporarily declinedin the fiscal year ended March 2021 due to the Covid-19 expansion, it recovered to 130.7 yen in the fiscal year ended March 2024. In the fiscal year ending March2026, the final year of the medium-term management plan, we plan to achieve EPS of 200 yen. We aim to achieve the medium-term management plan andmedium- to long-term growth by realizing the "Business Strategy, Capital Policy, and Impact,“ which is described on the right side on this page. In addition, sharebuybacks limit equivalent to 10% of outstanding shares, or a maximumof ¥40 billion, is set to allow for flexible share buybacks in case future profitability is not fully factored into the share price.
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13

Dividend and share buybacks
Basic policy is to return profits to shareholders by aiming for long-term, sustained dividend increases

DOE 8％(Yen)
120

¥106

35
24

80

Treasury stockbuyback

60
40
20
0101

30

100

Planned20¥15 billion

Dividend
Per share¥1415

FY2012FY20131819

FY2014FY201522

FY201633

FY2017381549
7FY201851

50

FY20195259

7FY20203.4
FY2021

FY2022

FY2023

FY2024FY2025

FY2026

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